Principles of Management - Unit 3 Organising.pptx

Principles of Management

1. Kongunadu college of engineering and technology (AUTONOMOUS) (Approved by AICTE, New Delhi, Affiliated to Anna University, Chennai, Accredited by NAAC B++ Grade , Accredited by NBA, Recognized by UGC with 2(f) & 12(B) An ISO 9001:2015 certified Institution) Namakkal - Trichy Main Road, Thottiam , Trichy - 621215 SUBJECT CODE & NAME 20MG501 PRINCIPLES OF MANAGEMENT Prepared by, Dr. P. Dineshkumar M.E., Ph.D., Assistant Professor, Department of Agricultural Engineering, Kongunadu College of Engineering and Technology . 1 Dr. P. Dineshkumar / AP / AGE / KNCET

2. ORGANISING Organization Structure - Organizational Design - Departmentation - Span of Control -Centralization and Decentralization - Human Resource Management - Process - HR Planning -Recruitment - Selection - Training - Performance Management - Career Development - Forces of Managing Change - Types of Change - Innovation. Dr. P. Dineshkumar / AP / AGE / KNCET 2

3. DEFINITION " Organising is the process of identifying and grouping the work to be performed, defining and delegating responsibility and authority and establishing relationships for the purpose of enabling people to work most effectively together in accomplishing objectives. Dr. P. Dineshkumar / AP / AGE / KNCET 3

4. Importance of organizing Organization is the foundation store upon which the whole structure of management is built. Backbone of management. To facilitate administration To increases the efficiency of management To facilitate growth and diversification To ensure optimum use of man and material resources. To facilitate co-ordination and communication To permit optimum use of technological innovations To simulate creativity To facilitate the development of managerial ability. Dr. P. Dineshkumar / AP / AGE / KNCET 4

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6. DEPARTMENTATION “ Departmentation is a means of dividing the large and monolithic functional organization into smaller flexible administrative units.” Dr. P. Dineshkumar / AP / AGE / KNCET 6

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8. METHODS OF DEPARTMENTATION Functional departmentation . Product wise departmentation . Territorial or geographical departmentation . Customer wise departmentation . Process or equipment wise departmentation . Combined or composite form of departmentation Dr. P. Dineshkumar / AP / AGE / KNCET 8

9. Functional Departmentation Under this basis of departmentation activities of the organization are grouped into major functional departments like production, sales, purchases, accounts, personnel etc. Dr. P. Dineshkumar / AP / AGE / KNCET 9

10. Product wise Departmentation Under this method, all activities related to one type of product are put together under one department under the direction of a production manager. A simple representation of product wise departmentation is given as follows. Dr. P. Dineshkumar / AP / AGE / KNCET 10

11. Territorial or Geographical Departmentation Departmentation by location or territory is suitable in case of those organizations whose activities are scattered and widely spread. For example, a company can carry out its activities by grouping them into regions like eastern region, western region, southern region, northern region etc. Dr. P. Dineshkumar / AP / AGE / KNCET 11

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13. Customer wise Departmentation A business house may be divided into a number of departments in the basis of customers it serves. Similarly an organization can divide its activities into departments on the basis of different customer groups served by the organization such as industrial users, consumers, wholesalers, retailers etc. Dr. P. Dineshkumar / AP / AGE / KNCET 13

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15. Process or Equipment wise Departmentation Under this basis of departmentation , the enterprise is organized on the basis of process involved in the manufacture of the product. Dr. P. Dineshkumar / AP / AGE / KNCET 15

16. SPAN OF CONTROL Span refers to the number of subordinates a manager can manage. Therefore span of management refers to the optimum number of subordinates that a manager or supervisor can manage or control effectively. It is divided into two aspects: Wide span Narrow span Dr. P. Dineshkumar / AP / AGE / KNCET 16

17. WIDE SPAN There will be less hierarchical levels and organizational structure would be flatter. Difficult to handle most people. Dr. P. Dineshkumar / AP / AGE / KNCET 17

18. NARROW SPAN The hierarchical level increases, hence the organizational structure would be tall. It requires more managers, so expensive. Takes time to communicate and to reach. Lack of coordination and control. Dr. P. Dineshkumar / AP / AGE / KNCET 18

19. HUMAN RESOURCE MANAGEMENT HR management is also known as staffing Organisation requires the service of a large number of human resources. Occupies varies position Each position requires specific knowledge and skills Staffing basically matching the jobs on individuals Dr. P. Dineshkumar / AP / AGE / KNCET 19

20. HR MANAGEMENT PROCESS Recruitment Selection of employee Providing proper orientation and induction Proper training and development Proper compensation and benefits Proper relation with labour Maintaining employee’s safety Welfare, health by complying with labour laws of concern state Dr. P. Dineshkumar / AP / AGE / KNCET 20

21. NEED OF HR It helps company to achieve its objective from time to time by creating a positive attitude among workers. Effective utilization of skills and potential . Teach team work and adjustment which improve productivity Right people for right job. Dr. P. Dineshkumar / AP / AGE / KNCET 21

22. SCOPE OF HUMAN RESOURCE MANAGEMENT Human resource planning: It refers to a process by which the company to identify the number of jobs vacant, whether the company has excess staff or shortage of staff ad to deal this excess or shortage. Job analysis and design : It gives a detailed explanation about each and every job in the company. Recruitment and selection: Based on information collected from job analysis the company prepares advertisements and publishes them in the newspapers. The interviews are conducted and the right employee is selected. Dr. P. Dineshkumar / AP / AGE / KNCET 22

23. Orientation and induction : Once the employees have been selected an induction or orientation program is conducted. The employees arc informed about the background of the company. Training and development: Every employee goes under training program which helps him to put up a better performance on the job. Performance appraisal: Once the employee has put in around 1 year of service, performance appraisal is conducted i.e. the human resource department checks the performance of the employee. Dr. P. Dineshkumar / AP / AGE / KNCET 23

24. Compensation Planning and Remuneration : There are various rules regarding compensation and other benefits. It is the job of the Human Resource department to look into remuneration and compensation planning. Motivation and safety: Motivation becomes important to sustain the number of employees in the company. It is the job of the human resource department to look into the different methods of motivation. Industrial relations : Another important area of human resource management is maintaining co-ordinal relations with the union members. This will help the organisation to prevent : Arikes , lockouts and ensure working in the company. Dr. P. Dineshkumar / AP / AGE / KNCET 24

25. FACTORS AFFECTING HUMAN RESOURCE MANAGEMENT External factors Political factors Economic factors Social factors - caste, religion and culture Legal factors Customers Dr. P. Dineshkumar / AP / AGE / KNCET 25

26. INTERNAL FACTORS Size of organisation Organisational image Technological factors Changes in employee roles. Education – well educated empoyees is a problem to the organisation though the make valuable contributions. Dr. P. Dineshkumar / AP / AGE / KNCET 26

27. RECRUITMENT Recruitment is a process of searching for and obtaining applicants for jobs so that the right people in right number can be selected. According to Dale Yoder, “Recruitment is the process to discover the sources of manpower to meet the requirements of the staffing schedule and to employ effective measures for attracting that man power in adequate numbers to facilitate effective selection of an efficient working force” . Dr. P. Dineshkumar / AP / AGE / KNCET 27

28. Purpose and Importance of Recruitment Provide a pool of potentiality qualified job candidates. Determine the present and future requirements of the organization. Increase the pool of job candidates at minimum cost. Meet the organizations legal and social obligations regarding the composition of its work force. Begin identifying and preparing potential job applicants who will be appropriate candidates. Dr. P. Dineshkumar / AP / AGE / KNCET 28

29. Sources of Recruitment Dr. P. Dineshkumar / AP / AGE / KNCET 29

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31. INTERNAL SOURCES A) Present employees Promotion It implies upgrading of an employee to a higher position carrying higher status, pay and responsibilities. It is advantageous because the employees promoted are well acquainted with the organizational culture Transfer It refers to shifting an employee from one job to another without any change in the position / post, status and responsibilities. Dr. P. Dineshkumar / AP / AGE / KNCET 31

32. B) Former employees Retired or retrenched employee may be interested to come back to the company to work on a part time basis. This source has the advantage of hiring people whose performance is already known to the organization. C) Employee referrals The existing employees refer their family members, friends and relatives to the company as potential candidates for the vacancies to be filled up in the organization. Dr. P. Dineshkumar / AP / AGE / KNCET 32

33. D) Previous applicants This is considered as internal source in the sense that applications from the potential candidates are already lying with the organization. Merits of internal recruitment ❖ Increase in morale ❖ Better Selection ❖ Economical ❖ Reduction in labour turnover ❖ Better labour - management relations ❖ Familiarity with own employees Dr. P. Dineshkumar / AP / AGE / KNCET 33

34. External sources A) Employment exchanges Employment exchanges function under the control of the government. They register the names of job seekers and also maintain their bio data. They provide those details to any employer who approaches them. B) Advertisement The employer can advertise vacancies in his organization in popular newspapers. Such advertisements usually specify the following. ❖ Nature of work. ❖ Nature of vacancy. ❖ Qualification and experience desired. Dr. P. Dineshkumar / AP / AGE / KNCET 34

35. C) Employment agencies In addition to the government agencies, there are a number of private employment agencies who register candidates for employment and furnish a list of suitable candidates. D) Professional association Very often recruitment for certain professional and technical position is made through professional associations also called ‘headhunters’ . They prepare either list of job seekers or publish or sponsor journals or magazines containing advertisement for their members. Dr. P. Dineshkumar / AP / AGE / KNCET 35

36. E) Campus recruitment Many employers visit colleges and universities every year and interview students who are in their final year of study. The faculty may also be involved in the process. F) Deputation Another source is deputation i.e sending an employee to another organization for a short duration of 2 to 3 years. It is useful because it provides ready expertise and the organization does not have to incur the initial cost of induction and training. Dr. P. Dineshkumar / AP / AGE / KNCET 36

37. G) Word of mouth In this method, the word is passed around the possible vacancies or openings in the organization. Another form is “Employee pinching” i.e the employees working in another organization are offered an attractive offer by the rival organizations. F) Raiding or poaching Raiding or poaching is another method of recruitment whereby the rival firms by offering better terms and conditions, try to attract qualified employees to join them. Dr. P. Dineshkumar / AP / AGE / KNCET 37

38. TRAINING Once employee have been recruited and selected, the next step involved in the HRM process is to transform them to meet the future requirements of the organization. Such transformation of employees is done by means of training and development. “Training is the act of increasing the knowledge and skills of an employee for doing a particular job”. Dr. P. Dineshkumar / AP / AGE / KNCET 38

39. OBJECTIVES OF TRAINING To increase employees level of performance on their present job assignment. To acquire the skills and knowledge to do particular jobs within a short interval of time. To reduce the need for detailed and constant supervision. To minimize wastages, rate of accidents and damage to machinery and equipment. To increase the morale of the employees. To standardize the methods of performing the work. To increase the stability and flexibility of the organization. Dr. P. Dineshkumar / AP / AGE / KNCET 39

40. NEED FOR TRAINING Need for imparting training to their employees which are listed below. Knowledge. Technical skills. Social skills. Techniques. Attitudes. Experience. Dr. P. Dineshkumar / AP / AGE / KNCET 40

41. METHODS OF TRAINING The various methods of training may be grouped under two categories: On-the job training Off-the job training. Dr. P. Dineshkumar / AP / AGE / KNCET 41

42. On-the job training On-the job training refers to training given to an employee in the place where he is employed . Work and learn is the philosophy of such a training concept. The following are some of the important on-the-job training methods: Induction training Apprenticeship Delegation Promotions and transfers Refresher training Job rotation Placement as assistants Vestibule training Dr. P. Dineshkumar / AP / AGE / KNCET 42

43. Off-the-job training Off-the-job training refers to training given to staff at a place away from the actual work place . The following are some of the important off-the-job training methods: Special Courses and Lecturers Conferences and seminars Case study Role playing Management games Brainstorming Sensitivity training Dr. P. Dineshkumar / AP / AGE / KNCET 43

44. PERFORMANCE MANAGEMENT OR PERFORMANCE APPRAISAL Performance appraisal is a process by which managers and employees work together to plan, monitor and review an employee's work objectives and overall contribution to the organisation. Appraising the performance of individuals, groups and organisation is a common practice of all societies. Dr. P. Dineshkumar / AP / AGE / KNCET 44

45. METHODS OF PERFORMANCE APPRAISAL The various important methods of performance appraisal are discussed here Graphic scale method Ranking method Grading Forced distribution method Check list in method Critical incident method Group appraisal Dr. P. Dineshkumar / AP / AGE / KNCET 45

46. CAREER DEVELOPMENT Career is a series of jobs or positions held throughout an individual's working life time. Career consists of a series of properly sequenced role experienced leading to an increased level of responsibility, status, power and rewards. “Edwin B. Flippo defined a career as a sequence of separate but related work activities that provide continuity, order and meaning in a person's life” Dr. P. Dineshkumar / AP / AGE / KNCET 46

47. TYPES OF CAREER 1.Individual career An individual career is a sequence of work-related experiences in which a person participates during the span of work life. 2.Organization career An organization career is a relatively standard set of roles to be performed which interacts with the flow of individuals within the organization. Dr. P. Dineshkumar / AP / AGE / KNCET 47

48. CAREER DEVELOPMENT Career development can be defined as an "ongoing process by which individual progress through a series of stages each of which is characterized by a relatively unique set of issues, themes or tasks." Dr. P. Dineshkumar / AP / AGE / KNCET 48

49. IMPORTANCE OF CAREER DEVELOPMENT Assures needed talent Develops promotable employees Lowers employee turnover Taps employee potential Attracts and retains high talent personnel Reduces obsolescence and gains new skills Reduces employee frustration Enhances cultural diversity Improves organizational goodwill Dr. P. Dineshkumar / AP / AGE / KNCET 49

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51. Exploration stage The exploration stage is the pre-employment stage, wherein the individuals are in their mid-twenties and enter from their college life to the work environment. The individuals narrow down their work preferences on the basis of the directions shown by their parents, friends, family, teachers. At this stage, several expectations about the work are created that may be the fantasies or unrealistic beliefs about the work, very much before entering into the firm. Dr. P. Dineshkumar / AP / AGE / KNCET 51

52. Establishment stage The career establishment stage begins with the individual's entry into the world of work ideally in a position which matches the organisational needs with individual's needs. This stage involves the individual's entry into the organisation, socialisation on the job, recognition for effective work, possible promotions and transfers and achievement of full acceptance by the work group. This establishment period lasts approximately from age 25 to 35. Dr. P. Dineshkumar / AP / AGE / KNCET 52

53. Mid-career or Advancement stage This stage covers the age period of 35 to 45 years. At this stage, the individual is no longer considered to be a fresher and his mistakes are taken seriously by the senior management. Here, the employee must evaluate his current career position, i.e. whether he is advancing, or has stabilized or has started to decline and look for the future career prospects. At this stage, an individual has to maintain a balance between his career and his personal life i.e. spouse and children. Dr. P. Dineshkumar / AP / AGE / KNCET 53

54. Late-career or Maintenance stage At this stage, an individual reaches to a particular position in the organization hierarchy, on the basis of his career graph which is characterized by growth or stagnation. If an individual grows even after the mid-career (i.e. 20 years after mid-forties), then he is considered to be having the pleasant experience with the work. Here, an individual becomes the mentor and guide others through his experiences. Dr. P. Dineshkumar / AP / AGE / KNCET 54

55. Decline This is the last stage of career development. At this stage, an individual has to step out of his work or get a retirement from his official commitments. It is considered as one of the difficult stages, as it is very hard for the employees to leave the firm who are doing excellent even after their late career. Dr. P. Dineshkumar / AP / AGE / KNCET 55

56. FORCES OF MANAGING CHANGE Demographic. A changing work demographic might require an organizational change in culture. Social. Changing social trends can pressure organizations into making changes. Political. Government restrictions often force change onto organizations. Technology. Economic. Dr. P. Dineshkumar / AP / AGE / KNCET 56

57. TYPES OF CHANGE Organizational change Happened Change Reactive Change Anticipatory Change Planned Change Incremental Change Operational Change Strategic Change Directional Change Fundamental Change Total Change Dr. P. Dineshkumar / AP / AGE / KNCET 57

58. INNOVATION Innovation means the use of creative ideas. It is not only relevant to high-tech enterprises but also crucial for old-line, traditional companies, which may not service without the infusion of innovation. The Merriam-Webster dictionary simply refers to innovation as being “the introduction of something new”. . Dr. P. Dineshkumar / AP / AGE / KNCET 58