UNIT III

ORGANIZING
 UNIT III
ORGANIZING
DEFINITION
According to Koontz and O'Donnell, "Organization involves the
grouping of activities necessary to accomplish goals and plans,
the assignment of these activities to appropriate departments
and the provision of authority, delegation and co-ordination."
NATURE OR CHARACTERISTICS OF ORGANIZING
From the study of the various definitions given by different
management experts we get the following information about the
characteristics or nature of organization,
(1)Division of Work:
Division of work is the basis of an organization.
In other words, there can be no organization without division of
work.
Under division of work the entire work of business is divided into
many departments .
The work of every department is further sub-divided into sub
works.
In this way each individual has to do the work repeatedly which
gradually makes that person an expert.
(2) Coordination:
Under organizing different persons are assigned different works but
the aim of all these persons happens to be the some - the attainment
of the objectives of the enterprise.
Organization ensures that the work of all the persons depends on
each others work even though it happens to be different.
The work of one person starts from where the work of another person
ends.
The non-completion of the work of one person affects the work of
everybody.
Therefore, everybody completes his work in time and does not hinder
the work of others.
It is thus, clear that it is in the nature of an organization to establish
coordination among different works, departments and posts in the
enterprise.
(3) Plurality of Persons:
Organization is a group of many persons who assemble to fulfil a
common purpose.
A single individual cannot create an organization.
(4) Common Objectives:
There are various parts of an organization with different functions to
perform but all move in the direction of achieving a general objective.
(5) Well-defined Authority and Responsibility:
Under organization a chain is established between different
posts right from the top to the bottom.
It is clearly specified as to what will be the authority and
responsibility of every post.
In other words, every individual working in the organization is
given some authority for the efficient work performance and it
is also decided simultaneously as to what will be the
responsibility of that individual in case of unsatisfactory work
performance.
(6) Organization is a Structure of Relationship:
Relationship between persons working on different posts in
the organization is decided.
In other words, it is decided as to who will be the superior and
who will be the subordinate.
Leaving the top level post and the lowest level post everybody
is somebody's superior and somebody's subordinate.
The person working on the top level post has no superior and
the person working on the lowest level post has no
subordinate.
(7) Organization is a Machine of Management:
Organization is considered to be a machine of management because the
efficiency of all the functions depends on an effective organization.
In the absence of organization no function can be performed in a planned
manner.
It is appropriate to call organization a machine of management from
another point of view.
It is that machine in which no part can afford tube ill-fitting or non-
functional.
In other words, if the division of work is not done properly or posts are not
created correctly the whole system of management collapses.
(8) Organization is a Universal Process:
Organization is needed both in business and nonbusiness organizations.
Not only this, organization will be needed where two or more than two
people work jointly.
Therefore, organization has the quality of universality.
(9) Organization is a Dynamic Process:
Organization is related to people and the knowledge and experience of
the people undergo a change.
The impact of this change affects the various functions of the
organizations.
Thus, organization is not a process that can be decided for all times to
come but it undergoes changes according to the needs.
 ORGANIZING PROCESS
Organization is the process of establishing relationship among
the members of the enterprise.
The relationships are created in terms of authority and
responsibility.
To organize is to harmonize, coordinate or arrange in a logical
and orderly manner.
Each member in the organization is assigned a specific
responsibility or duty to perform and is granted the
corresponding authority to perform his duty.
The managerial function of organizing consists in making a
rational division of work into groups of activities and tying
together the positions representing grouping of activities so as
to achieve a rational, well coordinated and orderly structure for
the accomplishment of work.

According to Louis A Allen, "Organizing involves identification

and grouping the activities to be performed and dividing them
among the individuals and creating authority and responsibility
relationships among them for the accomplishment of
organizational objectives."
ORGANIZING PROCESS
The various steps involved in this process are:
a) Determination of Objectives:
It is the first step in building up an organization.
Organization is always related to certain objectives.
Therefore, it is essential for the management to identify
the objectives before starting any activity.
Organization structure is built on the basis of the
objectives of the enterprise.
That means, the structure of the organization can be
determined by the management only after knowing the
objectives to be accomplished through the organization.
This step helps the management not only in framing the
organization structure but also in achieving the
enterprise objectives with minimum cost and efforts.
Determination of objectives will consist in deciding as to
why the proposed organization is to be set up and,
therefore, what will be the nature of the work to be
accomplished through the organization.
b) Enumeration of Objectives:
If the members of the group are to pool their efforts
effectively, there must be proper division of the major
activities.
The first step in organizing group effort is the division of the
total job into essential activities.
Each job should be properly classified and grouped.
This will enable the people to know what is expected of them
as members of the group and will help in avoiding duplication
of efforts.
For example, the work of an industrial concern may be
divided into the following major functions production,
financing, personnel, sales, purchase, etc.
c) Classification of Activities:
The next step will be to classify activities according to
similarities and common purposes and functions and taking
the human and material resources into account.
Then, closely related and similar activities are grouped into
divisions and departments and the departmental activities
are further divided into sections.
d) Assignment of Duties:
Here, specific job assignments are made to different subordinates
for ensuring a certainty of work performance.
Each individual should be given a specific job to do according to his
ability and made responsible for that.
He should also be given the adequate authority to do the job
assigned to him.
In the words of Kimball and Kimball - "Organization embraces the
duties of designating the departments and the personnel that are to
carry on the work, defining their functions and specifying the
relations that are to exist between department and individuals.
e) Delegation of Authority:
Since so many individuals work in the same organization, it is the
responsibility of management to lay down structure of relationship
in the organization.
Authority without responsibility is a dangerous thing and similarly
responsibility without authority is an empty vessel.
Everybody should clearly know to whom he is accountable;
corresponding to the responsibility authority is delegated to the
subordinates for enabling them to show work performance.
This will help in the smooth working of the enterprise by facilitating
delegation of responsibility and authori ty.
 ORGANIZATION STRUCTURE
An organization structure is a framework
that allots a particular space for a
particular department or an individual
and shows its relationship to the other.
An organization structure shows the
authority and responsibility relationships
between the various positions in the
organization by showing who reports
to whom.
It is an established pattern of
relationship among the components of
the organization.
FORMAL ORGANIZATION:
Chester I Bernard defines formal organization as -"a
system of consciously coordinated activities or forces of
two or more persons. It refers to the structure of well-
defined jobs, each bearing a definite measure of
authority, responsibility and accountability."

Characteristic Features of formal organization

Formal organization structure is laid down by the top
management to achieve organizational goals.
Formal organization prescribes the relationships amongst
the people working in the organization.
The organization structures is consciously designed to
enable the people of the organization to work together for
accomplishing the common objectives of the enterprise
Organization structure concentrates on the jobs to be
performed and not the individuals who are to perform
jobs.
 In a formal organization, individuals are fitted into jobs and
positions and work as per the managerial decisions.
Thus, the formal relations in the organization arise from the
pattern of responsibilities that are created by the
management.
A formal organization is bound by rules, regulations and
procedures.
In a formal organization, the position, authority,
responsibility and accountability of each level are clearly
defined.
Organization structure is based on division of labor and
specialization to achieve efficiency in operations.
A formal organization is deliberately impersonal.
The organization does not take into consideration the
sentiments of organizational members.
The authority and responsibility relationships created by
the organization structure are to be honoured by everyone.
In a formal organization, coordination proceeds according
to the prescribed pattern.
Advantages of formal organization :
The formal organization structure concentrates on the
jobs to be performed. It, therefore, makes everybody
responsible for a given task.
A formal organization is bound by rules, regulations
and procedures. It thus ensures law and order in the
organization.
The organization structure enables the people of the
organization to work together for accomplishing the
common objectives of the enterprise

Disadvantages or criticisms of formal organization

The formal organization does not take into
consideration the sentiments of organizational
members.
The formal organization does not consider the goals of
the individuals. It is designed to achieve the goals of
the organization only.
INFORMAL ORGANIZATION
Informal organization refers to the relationship between
people in the organization based on personal attitudes,
emotions, prejudices, likes, dislikes etc.
An informal organization is an organization which is not
established by any formal authority, but arises from the
personal and social relations of the people.
These relations are not developed according to
procedures and regulations laid down in the formal
organization structure;
Generally large formal groups give rise to small informal
or social groups.
These groups may be based on same taste, language,
culture or some other factor.
These groups are not pre-planned, but they develop
automatically within the organization according to its
environment.
Characteristics features of informal organization :
Informal organization is not established by any formal authority.
It is unplanned and arises spontaneously.
Informal organizations reflect human relationships. It arises from
the personal and social relations amongst the people working in
the organization.
Formation of informal organizations is a natural process. It is not
based on rules, regulations and procedures.
The inter-relations amongst the people in an informal
organization cannot be shown in an organization chart.
In the case of informal organization, the people cut across formal
channels of communications and communicate amongst
themselves.
The membership of informal organizations is voluntary. It arises
spontaneously and not by deliberate or conscious efforts.
Membership of informal groups can be overlapping as a person
may be member of a number of informal groups.
Informal organizations are based on common taste, problem,
language, religion, culture, etc.
It is influenced by the personal attitudes, emotions, whims, likes
and dislikes etc. of the people in the organization.
 DIFFERENCES BETWEEN FORMAL AND INFORMAL
Formal Organization ORGANIZATION
Informal Organization
1. Formal organization is 1. Informal organization springs on
established with the explicit aim of its own. Its goals are ill defined and
achieving well-defined goals. intangible.
2. Formal organization is bound 2. Informal organization is
together by authority relationships characterized by a generalized sort
among members. A hierarchical of power relationships. Power in
structure is created, constituting informal organization has bases
top management, middle other than rational legal right.
management and supervisory
management.
3. Formal organization recognizes 3. Informal organization does not
certain tasks which are to be have any well-defined tasks.
carried out to achieve its goals.
4. The roles and relationships of 4. In informal organization the
people in formal organization are relationships among people are
impersonally defined interpersonal.

5. In formal organization, much 5. Informal organization is

emphasis is placed on efficiency, characterized by relative freedom,
 Formal Organization Informal Organization
6. In formal organization, the social 6. In informal organization the socio-
and psychological needs and interests psychological needs, interests and
of members of the organization get aspirations of members get priority.
little attention.

7. The communication system in 7. In informal organization, the

formal organization follows certain communication pattern is haphazard,
pre-determined patterns and paths. intricate and natural.

8. Formal organization is relatively 8. Informal organization is dynamic

slow to respond and adapt to and very vigilant. It is sensitive to its
changing situations and realities. surroundings.
 LINE AND STAFF AUTHORITY
In an organization, the line authority flows from top to
bottom and the staff authority is exercised by the
specialists over the line managers who advise them on
important matters.
These specialists stand ready with their specialty to serve
line mangers as and when their services are called for, to
collect information and to give help which will enable the
line officials to carry out their activities better.
The staff officers do not have any power of command in the
organization as they are employed to provide expert advice
to the line officers.
The 'line maintains discipline and stability; the 'staff'
provides expert information.
The line gets out the production, the staffs carries on the
research, planning, scheduling, establishing of standards
and recording of performance.
The authority by which the staff performs these functions is
delegated by the line and the performance must be
acceptable to the line before action is taken.
Advantages
It brings expert knowledge to bear upon management and
operating problems. Thus, the line managers get the benefit
of specialized knowledge of staff specialists at various levels.
The expert advice and guidance given by the staff officers to
the line officers benefit the entire organization.
As the staff officers look after the detailed analysis of each
important managerial activity, it relieves the line managers
of the botheration of concentrating on specialized functions.
Staff specialists help the line managers in taking better
decisions by providing expert advice. Therefore, there will be
sound managerial decisions under this system.
It makes possible the principle of undivided responsibility and
authority, and at the same time permits staff specialization.
Thus, the organization takes advantage of functional
organization while maintaining the unity of command.
It is based upon planned specialization.
Line and staff organization has greater flexibility, in the sense
that new specialized activities can be added to the line
activities without disturbing the line procedure.
Disadvantages
Unless the duties and responsibilities of the staff members are clearly
indicated by charts and manuals, there may be considerable confusion
throughout the organization as to the functions and positions of staff
members with relation to the line supervisors.
There is generally a conflict between the line and staff executives. The line
managers feel that staff specialists do not always give right type of advice,
and staff officials generally complain that their advice is not properly
attended to.
Line managers sometimes may resent the activities of staff members,
feeling that prestige and influence of line managers suffer from the
presence of the specialists.
The staff experts may be ineffective because they do not get the authority
to implement their recommendations.
This type of organization requires the appointment of large number of staff
officers or experts in addition to the line officers. As a result, this system
becomes quite expensive.
Although expert information and advice are available, they reach the
workers through the officers and thus run the risk of misunderstanding and
misinterpretation.
Since staff managers are not accountable for the results, they may not be
performing their duties well.
Line mangers deal with problems in a more practical manner. But staff
officials who are specialists in their fields tend to be more theoretical. This
may hamper coordination in the organization.
 DEPARTMENTATION BY DIFFERENT STRATEGIES
Departmentation is the process of grouping of work activities into
departments, divisions, and other homogenous units.
Departmentation takes place in various patterns like departmentation by
functions, products, customers, geographic location, process, and its
combinations.

a) FUNCTIONAL DEPARTMENTATION
Functional departmentation is the process of grouping activities by
functions performed.
Activities can be grouped according to function (work being done) to
pursue economies of scale by placing employees with shared skills and
knowledge into departments for example human resources, finance,
production, and marketing.
Functional departmentation can be used in all types of organizations.
Advantages:
Advantage of specialization
Easy control over functions
Pinpointing training needs of manager
It is very simple process of grouping activities.
Disadvantages:
Lack of responsibility for the end result
Overspecialization or lack of general management
It leads to increase conflicts and coordination problems among
departments.
FUNCTIONAL DEPARTMENTATION
b) PRODUCT DEPARTMENTATION
Product departmentation is the process of grouping activities by product line.
Tasks can also be grouped according to a specific product or service, thus
placing all activities related to the product or the service under one
manager.
Each major product area in the corporation is under the authority of a senior
manager who is specialist in, and is responsible for, everything related to the
product line.
Dabur India Limited is the Indias largest Ayurvedic medicine manufacturer is
an example of company that uses product departmentation. Its structure is
based on its varied product lines which include Home care, Health care,
Personal care and Foods.

Advantages
It ensures better customer service
Unprofitable products may be easily determined
It assists in development of all around managerial talent
Makes control effective
It is flexible and new product line can be added easily.
Disadvantages
It is expensive as duplication of service functions occurs in various product
divisions
Customers and dealers have to deal with different persons for complaint and
information of different products.
PRODUCT DEPARTMENTATION
c) CUSTOMER DEPARTMENTATION
Customer departmentation is the process of grouping activities on the
basis of common customers or types of customers. Jobs may be
grouped according to the type of customer served by the organization.
The assumption is that customers in each department have a common
set of problems and needs that can best be met by specialists.
UCO BANK is the one of the largest commercial banks of India is an
example of company that uses customer departmentation. Its
structure is based on various services which includes Home loans,
Business loans, Vehicle loans and Educational loans.

Advantages
It focused on customers who are ultimate suppliers of money
Better service to customer having different needs and tastes
Development in general managerial skills
Disadvantages
Sales being the exclusive field of its application, co-ordination may
appear difficult
between sales function and other enterprise functions.
Specialized sales staff may become idle with the downward movement
of sales to any specified group of customers.
CUSTOMER DEPARTMENTATION
d) GEOGRAPHIC DEPARTMENTATION
Geographic departmentation is the process of grouping activities
on the basis of territory.
If an organization's customers are geographically dispersed, it
can group jobs based on geography.
For example, the organization structure of Coca-Cola Ltd has
reflected the companys operation in various geographic areas
such as Central North American group, Western North American
group, Eastern North American group and European group

Advantages
Help to cater to the needs of local people more satisfactorily.
It facilitates effective control
Assists in development of all-round managerial skills
Disadvantages
Communication problem between head office and regional office
due to lack of means of communication at some location
Coordination between various divisions may become difficult.
Distance between policy framers and executors
It leads to duplication of activities which may cost higher.
GEOGRAPHIC DEPARTMENTATION
e) PROCESS DEPARTMENTATION
Geographic departmentation is the process of grouping
activities on the basis of product or service or customer flow.
Because each process requires different skills, process
departmentation allows homogenous activities to be
categorized.
For example, Bowater Thunder Bay, a Canadian company
that harvests trees and processes wood into newsprint and
pulp. Bowater has three divisions namely tree cutting,
chemical processing, and finishing (which makes newsprint).

Advantages
Oriented towards end result.
Professional identification is maintained.
Pinpoints product-profit responsibility.
Disadvantage
Conflict in organization authority exists.
Possibility of disunity of command.
Requires managers effective in human relation
PROCESS DEPARTMENTATION
f) MARTIX DEPARTMENTATION
In actual practice, no single pattern of grouping activities is applied in the
organization structure with all its levels.
Different bases are used in different segments of the enterprise.
Composite or hybrid method forms the common basis for classifying activities
rather than one particular method,.
One of the mixed forms of organization is referred to as matrix or grid
organizations
According to the situations, the patterns of Organizing varies from case to case.
The form of structure must reflect the tasks, goals and technology if the
originations the type of people employed and the environmental conditions that
it faces.
It is not unusual to see firms that utilize the function and project organization
combination.
The same is true for process and project as well as other combinations.
For instance, a large hospital could have an accounting department, surgery
department, marketing department, and a satellite centre project team that
make up its organizational structure.
Advantages
Efficiently manage large, complex tasks
Effectively carry out large, complex tasks
Disadvantages
Requires high levels of coordination
Conflict between bosses
Requires high levels of management skills
MARTIX DEPARTMENTATION
SPAN OF CONTROL
 SPAN OF CONTROL
Span of Control means the number of subordinates that
can be managed efficiently and effectively by a superior
in an organization.
It suggests how the relations are designed between a
superior and a subordinate in an organization.
Span of control is of two types:
1. Narrow span of control: Narrow Span of control means a
single manager or supervisor oversees few subordinates.
This gives rise to a tall organizational structure.
Advantages:
Close supervision
Close control of subordinates
Fast communication
Disadvantages:
Too much control
Many levels of management
High costs
Excessive distance between lowest level and highest level
NARROW SPAN OF CONTROL
2. Wide span of control:
Wide span of control means a single manager or
supervisor oversees a large number of
subordinates. This gives rise to a flat
organizational structure.
Advantages:
More Delegation of Authority
Development of Managers
Clear policies
Disadvantages:
Overloaded supervisors
Danger of superiors loss of control
Requirement of highly trained managerial
personnel
Block in decision making
WIDE SPAN OF CONTROL
FACTORS DETERMINING THE EFFECTIVE SPAN:
1. Capacity of supervisor:
Each Manager has different capacity in respect of such
factors as communication, leadership, decision making,
control etc, affecting management of subordinates
Managers having more capacity may supervise more
subordinates than those who are having less capacity.
2. Capacity of subordinates :
Subordinates who are trained, developed and
experienced need little supervision in discharging their
duties.
3. Nature of work:
If the subordinates are involved in simple and
repetitive activities, then it is possible for the manager
to supervise more subordinates.
But if the work is not similar in nature, span has to be
narrow since the situation would be more complex.
4. Types of technology :
Firm using mass production and assembly line technology can
have wider span than employing batch or process production
systems.
5. Delegation of Authority:
If the manager clearly delegates authority to undertake a well
defined task, a well trained subordinates can get it done with
the minimum of managers time and attention.
But if the subordinates task are not clearly defined, either the
task will not be performed or the managers will have to spent
more time for supervising and guiding the subordinates.
6. Clarity of plans:
If the degree of plan is higher, particularly provide rules,
regulations, procedures, method etc, in doing the work and
then the degree of span would be higher.
7. Communication technique:
If the communication is oral it requires more time and energy.
If we use electronic and other modern devices, that will save
a lot of time and span can be increased.
8. Using of objective standards:
If the supervisors are using standards in an
organisation to find out errors and faults in the
performance of work, then there is no need to spend
more time in watching the performance of the
subordinates to such cases, the span can be wider.
9. Geographical closeness of employees:
The closer the subordinates are in physical location,
the easier it will be for the supervisor to manage
more employees.
10.Direction and co-ordination:
The span of control would also be determined by the
degree of coordination required, both within the unit
and with other units of other divisions.
CENTRALIZATION AND
DECENTRALIZATION
 CENTRALIZATION AND DECENTRALIZATION
CENTRALIZATION:
It is the process of transferring and assigning decision-making authority
to higher levels of an organizational hierarchy. The span of control of top
managers is relatively broad, and there are relatively many tiers in the
organization.
Characteristics
Philosophy / emphasis on : down-top control, leadership, vision,
strategy.
Decision-making : strong, authoritarian, visionary, charismatic.
Organizational change : shaped by top, vision of leader.
Execution : decisive, fast, coordinated. Able to respond
quickly to major issues and changes.
Uniformity . Low risk of dissent or conflicts between parts of the
organization.
Advantages of Centralization
Provide Power and prestige for manager
Promote uniformity of policies, practices and decisions
Minimal extensive controlling procedures and practices
Minimize duplication of function
Disadvantages of Centralization
Neglected functions for mid. Level, and less motivated beside personnel.
Nursing supervisor functions as a link officer between nursing director
and first-line management.
DECENTRALIZATION:
It is the process of transferring and assigning decision-making authority to
lower levels of an organizational hierarchy. The span of control of top
managers is relatively small, and there are relatively few tears in the
organization, because there is more autonomy in the lower ranks.
Characteristics
Philosophy / emphasis on: up-bottom, political, cultural and learning
dynamics.
Decision-making: democratic, participative, detailed.
Organizational change: emerging from interactions, organizational
dynamics.
Execution: evolutionary, emergent. Flexible to adapt to minor issues and
changes.
Participation, accountability. Low risk of not-invented-here behaviour.
Three Forms of decentralization
De-concentration. The weakest form of decentralization. Decision making
authority is redistributed to lower or regional levels of the same central
organization.
Delegation. A more extensive form of decentralization. Through delegation
the responsibility for decision-making are transferred to semi-autonomous
organizations not wholly controlled by the central organization, but
ultimately accountable to it.
Devolution. A third type of decentralization is devolution. The authority for
decision making is transferred completely to autonomous organizational
units.
Advantages of Decentralization
Raise morale and promote interpersonal
relationships
Relieve from the daily administration
Bring decision-making close to action
Develop Second-line managers
Promote employees enthusiasm and coordination
Facilitate actions by lower-level managers
Disadvantages of Decentralization
Top-level administration may feel it would
decrease their status
Managers may not permit full and maximum
utilization of highly qualified personnel
Increased costs. It requires more managers and
line staff
It may lead to overlapping and duplication of effort
 DELEGATION OF AUTHORITY
A manager alone cannot perform all the tasks assigned to
him.
In order to meet the targets, the manager should
delegate authority.
Delegation of Authority means division of authority and
powers downwards to the subordinate.
Delegation is about entrusting someone else to do parts
of your job.
Delegation of authority can be defined as subdivision
and sub allocation of powers to the subordinates in order
to achieve effective results.

Dougcas C. Basil
Delegation consists of granting authority or the rights to
decision-making in certain defined areas and charging the
subordinates with responsibility for carrying through an
assigned task.
IMPORTANCE OF DELEGATION:
1. It relives the manager from his heavy workload by
means of dividing the work and share the responsibility
with his subordinates.
2. It leads to better and quick decisions in the organisation
because the authority has been distributed to so many
people and each person who has been delegated the
authority is capable enough to take the decision himself.
3. Delegation enables the manager to obtain the
specialised knowledge and expertise of subordinates.
4. Delegation helps to maintain healthy relationship
between the executives and his subordinates by clearly
defining the authority and responsibilities.
5. Delegation of authority has been widely recognised as
an art of getting things done in the possible manner.
6. Delegation enables a person not only to discharge his
responsibility out also to discharge it effectively and
economically.
ELEMENTS OF DELEGATION
1. Authority - in context of a business organization,
Authority can be defined as the power and right of a person to use
and allocate the resources efficiently, to take decisions and to
give orders so as to achieve the organizational objectives.
Authority must be well- defined.
All people who have the authority should know what is the scope
of their authority is and they shouldnt misutilize it.
Authority is the right to give commands, orders and get the things
done.
The top level management has greatest authority.
Authority always flows from top to bottom.
It explains how a superior gets work done from his subordinate by
clearly explaining what is expected of him and how he should go
about it.
Authority should be accompanied with an equal amount of
responsibility.
Delegating the authority to someone else doesnt imply escaping
from accountability.
Accountability still rest with the person having the utmost
authority.
2. Responsibility - is the duty of the person to
complete the task assigned to him.
A person who is given the responsibility should ensure
that he accomplishes the tasks assigned to him.
If the tasks for which he was held responsible are not
completed, then he should not give explanations or
excuses.
Responsibility without adequate authority leads to
discontent and dissatisfaction among the person.
Responsibility flows from bottom to top.
The middle level and lower level management holds
more responsibility.
The person held responsible for a job is answerable
for it.
If he performs the tasks assigned as expected, he is
bound for praises.
While if he doesnt accomplish tasks assigned as
expected, then also he is answerable for that.
3. Accountability - means giving
explanations for any variance in the actual
performance from the expectations set.
Accountability cannot be delegated.
For example, if A is given a task with sufficient
authority, and A delegates this task to B and
asks him to ensure that task is done well,
responsibility rest with B, but accountability
still rest with A.
The top level management is most accountable.
Being accountable means being innovative as
the person will think beyond his scope of job.
Accountability ,in short, means being
answerable for the end result.
Accountability cant be escaped.
It arises from responsibility.
DELEGATION PROCESS
DELEGATION PROCESS
The steps involved in delegation are given below
1. Allocation of duties
The delegator first tries to define the task and duties to the
subordinate.
He also has to define the result expected from the
subordinates.
Clarity of duty as well as result expected has to be the first
step in delegation.
2. Granting of authority
Subdivision of authority takes place when a superior
divides and shares his authority with the subordinate.
It is for this reason; every subordinate should be given
enough independence to carry the task given to him by his
superiors.
The managers at all levels delegate authority and power
which is attached to their job positions.
The subdivision of powers is very important to get effective
results.
3. Assigning of Responsibility and
Accountability
The delegation process does not end once
powers are granted to the subordinates.
They at the same time have to be obligatory
towards the duties assigned to them.
Responsibility is said to be the factor or
obligation of an individual to carry out his
duties in best of his ability as per the
directions of superior.
Therefore, it is that which gives
effectiveness to authority.
At the same time, responsibility is absolute
and cannot be shifted.
4. Creation of accountability
Accountability, on the others hand, is the obligation
of the individual to carry out his duties as per the
standards of performance.
Therefore, it is said that authority is delegated,
responsibility is created and accountability is
imposed.
Accountability arises out of responsibility and
responsibility arises out of authority.
Therefore, it becomes important that with every
authority position an equal and opposite
responsibility should be attached.
Therefore every manager, i.e., the delegator has to
follow a system to finish up the delegation process.
Equally important is the delegates role which
means his responsibility and accountability is
attached with the authority over to here.
STAFFING
 STAFFING
Staffing involves filling the positions needed in the
organization structure by appointing competent
and qualified persons for the job.
ROLE OF STAFFING:
1.Massive increase in the number of employees.
2.Technological innovations that require more skilled
and experienced staff.
3.Changing employee roles and values.
4.Widening the functions of Management.
5.Effective attainment of organisational goals.
6.Effective utilization of skill and potential of the
work force.
7.Provision of job satisfaction to employees.
8.Development and maintenance of quality of work
life.
STAFFING
 The staffing process encompasses man power planning,
recruitment, selection, and training.
a) Manpower requirements:
Manpower Planning which is also called as Human Resource
Planning consists of putting right number of people, right kind of
people at the right place, right time, doing the right things for
which they are suited for the achievement of goals of the
organization.
The primary function of man power planning is to analyze and
evaluate the human resources available in the organization, and
to determine how to obtain the kinds of personnel needed to staff
positions ranging from assembly line workers to chief executives.
b) Recruitment:
Recruitment is the process of finding and attempting to attract job
candidates who are capable of effectively filling job vacancies.
Job descriptions (It describes what the job is all about) and job
specifications (human characteristics needed for satisfactory job
completion) are important in the recruiting process because they
specify the nature of the job and the qualifications required of job
candidates.
c) Selection:
Selecting a suitable candidate can be the biggest challenge
for any organization.
The success of an organization largely depends on its staff.
Selection of the right candidate builds the foundation of any
organization's success and helps in reducing turnovers.
d) Training and Development:
Training and Development is a planned effort to facilitate
employee learning of job related behaviours in order to
improve employee performance.
Experts sometimes distinguish between the terms
training and development; training denotes efforts to
increase employee skills on present jobs, while
development refers to efforts oriented toward
improvements relevant to future jobs.
In practice, though, the distinction is often blurred (mainly
because upgrading skills in present jobs usually improves
performance in future jobs).
 RECRUITMENT PROCESS
Recruitment is the process of finding and
attempting to attract job candidates who are
capable of effectively filling job vacancies.
B. Flippo defines recruitment as
The process of searching for prospective employees
and stimulating them to apply for jobs in the
organisation.
Sources of Recruitment:
INTERNAL SOURCE
EXTERNAL
INTERNAL SOURCE:
1.Present Permanent Employees
2.Present temporary / Casual employees
3.Retired Employees
4.Dependents of deceased, disable, retired and
present employees.
EXTERNAL SOURCES:
a)Education and Training Institute:
Organisations seeking to recruit the candidates from this
source can directly contact the institute and stimulate the
candidate to apply for jobs.
b)Private employment agencies:
These agencies are expects in providing their employer
clients. They charge a little fee from their clients.
c) Public employment agencies:
Public employment agencies is set up by the Government.
d)Data Bank:
The Management can collect the bio-data of the candidates
from different sources like employment exchange and feed
into the computer and the company can get the particular
as and when it needs to recruit.
e)Casual Application:
Candidate apply casually for jobs through mail or handover
the applications in personal department of the organisation.
f) Trade Unions :
Unemployment persons approach trade union
leaders for getting suitable employment due to
the latters intimacy with management.
This method is used to satisfy the trade union
Leaders.
 JOB ANALYSIS
Job Analysis is the process of describing and recording
aspects of jobs and specifying the skills and other
requirements necessary to perform the job.
The outputs of job analysis are
a) Job description
b) Job specification
JOB DESCRIPTION:
A job description (JD) is a written statement of what the
job holder does, how it is done, under what conditions it
is done and why it is done.
It describes what the job is all about, throwing light on
job content, environment and conditions of employment.
It is descriptive in nature and defines the purpose and
scope of a job.
The main purpose of writing a job description is to
differentiate the job from other jobs and state its outer
limits.
A job description usually covers the
following information:
Job title: Tells about the job title, code number
and the department where it is done.
Job summary: A brief write-up about what the
job is all about.
Job activities: A description of the tasks done,
facilities used, extent of supervisory help, etc.
Working conditions: The physical environment
of job in terms of heat, light, noise and other
hazards.
Social environment: Size of work group and
interpersonal interactions required to do the
job.
JOB SPECIFICATION :
Job specification summarizes the human characteristics needed
for satisfactory job completion.
It tries to describe the key qualifications someone needs to
perform the job successfully.
It spells out the important attributes of a person in terms of
education, experience, skills, knowledge and abilities (SKAs) to
perform a particular job.
The job specification is a logical outgrowth of a job description.
For each job description, it is desirable to have a job
specification.
This helps the organization to find what kinds of persons are
needed to take up specific jobs.
Contents
A job specification usually covers the following information:
Education
Experience
Skill, Knowledge, Abilities
Work Orientation Factors
Age
SELECTION PROCESS
 SELECTION PROCESS
Selecting a suitable candidate can be the biggest
challenge for any organisation.
The success of an organization largely depends on its staff.
Selection of the right candidate builds the foundation of
any organization's success and helps in reducing
turnovers.
Though there is no full proof selection procedure that will
ensure low turnover and high profits.
The following steps generally make up the selection
process
a) Initial Screening
This is generally the starting point of any employee
selection process.
Initial Screening eliminates unqualified applicants and
helps save time.
Applications received from various sources are scrutinized
and irrelevant ones are discarded.
b) Preliminary Interview
It is used to eliminate those candidates who do not meet the
minimum eligibility criteria laid down by the organization.
The skills, academic and family background, competencies
and interests of the candidate are examined during
preliminary interview.
Preliminary interviews are less formalized and planned than
the final interviews.
The candidates are given a brief up about the company and
the job profile; and it is also examined how much the
candidate knows about the company.
Preliminary interviews are also called screening interviews.
c) Filling Application Form
An candidate who passes the preliminary interview and is
found to be eligible for the job is asked to fill in a formal
application form.
Such a form is designed in a way that it records the personal
as well professional details of the candidates such as age,
qualifications, reason for leaving previous job, experience, etc.
d) Personal Interview
Most employers believe that the personal interview is very
important.
It helps them in obtaining more information about the
prospective employee.
It also helps them in interacting with the candidate and
judging his communication abilities, his ease of handling
pressure etc.
In some Companies, the selection process comprises only
of the Interview.
e) References check
Most application forms include a section that requires
prospective candidates to put down names of a few
references.
References can be classified into - former employer,
former customers, business references, reputable persons.
Such references are contacted to get a feedback on the
person in question including his behaviour, skills, conduct
etc.
f) Background Verification
A background check is a review of a person's commercial,
criminal and (occasionally) financial records.
Employers often perform background checks on employers
or candidates for employment to confirm information given
in a job application, verify a person's identity, or ensure
that the individual does not have a history of criminal
activity, etc., that could be an issue upon employment.
g) Final Interview
Final interview is a process in which a potential employee
is evaluated by an employer for prospective employment
in their organization.
During this process, the employer hopes to determine
whether or not the applicant is suitable for the job.
Different types of tests are conducted to evaluate the
capabilities of an applicant, his behaviour, special qualities
etc. Separate tests are conducted for various types of jobs.
h) Physical Examination
If all goes well, then at this stage, a physical
examination is conducted to make sure that the
candidate has sound health and does not suffer from
any serious ailment.
i ) Job Offer
A candidate who clears all the steps is finally
considered right for a particular job and is presented
with the job offer.
An applicant can be dropped at any given stage if
considered unfit for the job.
Employee Induction /
Orientation
 Employee Induction / Orientation
Orientation or induction is the process of introducing new
employees to an organization, to their specific jobs &
departments, and in some instances, to their community.
Purposes of Orientation
1. To Reduce Start-up-Costs:
Proper orientation can help the employee get "up to
speed" much more quickly, thereby reducing the costs
associated with learning the job.
2. To Reduce Anxiety:
Any employee, when put into a new, strange situation,
will experience anxiety that can impede his or her
ability to learn to do the job.
Proper orientation helps to reduce anxiety that results
from entering into an unknown situation, and helps
provide guidelines for behaviour and conduct, so the
employee doesn't have to experience the stress of
guessing.
3. To Reduce Employee Turnover:
Employee turnover increases as employees feel they are
not valued, or are put in positions where they can't
possibly do their jobs.
Orientation shows that the organization values the
employee, and helps provide tools necessary for
succeeding in the job.
4. To Save Time for Supervisor & Co-Workers:
Simply put, the better the initial orientation, the less
likely supervisors and co-workers will have to spend time
teaching the employee.
5. To Develop Realistic Job Expectations, Positive Attitudes
and Job Satisfaction:
It is important that employees learn early on what is
expected of them, and what to expect from others, in
addition to learning about the values and attitudes of the
organization.
While people can learn from experience, they will make
many mistakes that are unnecessary and potentially
damaging.
An orientation program principally conveys 3 types of information,
namely:
a) General information about the daily work routine to be followed
b) A review of the organizations history, founders, objectives, operations &
products or services, as well as how the employees job contributes to
the organizations needs.
c) A detailed presentation of the organizations policies, work rules &
employee benefits.
Two Kinds of Orientation
The first we will call Overview Orientation, and deals with the basic
information an employee will need to understand the broader system he
or she works in.
Overview Orientation includes helping employees understand:
Management in general
Department and the branch
Important policies
General procedures (non-job specific)
Information about compensation
Accident prevention measures
Employee and union issues (rights, responsibilities)
Physical facilities
Often, Overview Orientation can be conducted by the personnel
department with a little help from the branch manager or immediate
supervisor, since much of the content is generic in nature.
 The second kind of orientation is called Job-Specific
Orientation, and is the process that is used to help
employees understand:
Function of the organization,
Responsibilities,
Expectations,
Duties
Policies, procedures, rules and regulations
Layout of workplace
Introduction to co-workers and other people in the
broader organization.

Job specific orientation is best conducted by the

immediate supervisor, and/or manager, since much of
the content will be specific to the individual.
Often the orientation process will be ongoing, with
supervisors and co-workers supplying coaching.

 CARRER DEVELOPMENT

 CARRER DEVELOPMENT
Career Developmentis the lifelong process of managing
learning, work, leisure, and transitions (changing from one state) in
order to move toward a personally determined and evolving
preferred future.
Career development not only improves job performance but
also brings about the growth of the personality.
Individuals not only mature regarding their potential
capacities but also become better individuals.
Purpose of Management development attempts to improve
managerial performance by imparting
Knowledge
Changing attitudes
Increasing skills
The major objective of development is managerial
effectiveness through a planned and a deliberate process of
learning.
This provides for a planned growth of managers to meet the
future organizational needs.

DEVELOPMENT PROCESS
The development process consists of the
following steps
1. Setting Development Objectives:
It develops a framework from which executive
need can be determined.
2. Ascertaining (make sure of) Development Needs:
It aims at organizational planning & forecast the
present and future growth.
3. Determining Development Needs:
This consists of
Appraisal of present management talent
Management Manpower Inventory
The above two processes will determine the skill
deficiencies that are relative to the future needs of
the organization.

4. Conducting Development Programs:

It is carried out on the basis of needs of
different individuals, differences in their
attitudes and behaviour, also their physical,
intellectual and emotional qualities.
Thus a comprehensive and well conceived
program is prepared depending on the
organizational needs and the time & cost
involved.
5. Program Evaluation:
It is an attempt to assess the value of
training in order to achieve organizational
objectives.

 TRAINING
According to Flippo
Training is the act of increasing the knowledge and skills of an employee
for doing a particular job.
Training is a process of learning a sequence of programmed
behaviour.
It improves the employee's performance on the current job and
prepares them for an intended job.
Purpose of Training:
1) To improve Productivity:
Training leads to increased operational productivity and increased
company profit.
2) To improve Quality:
Better trained workers are less likely to make operational mistakes.
3) To improve Organizational Climate:
Training leads to improved production and product quality which
enhances financial incentives. This in turn increases the overall
morale of the organization.
4) To increase Health and Safety:
Proper training prevents industrial accidents.
5) Personal Growth:
Training gives employees a wider awareness, an enlarged skill base
and that leads to enhanced personal growth.
Steps in Training Process
Steps in Training Process:
1)Identifying Training needs:
A training program is designed to assist in providing
solutions for specific operational problems or to
improve performance of a trainee.
Organizational determination and Analysis:
Allocation of resources that relate to organizational
goal.
Operational Analysis: Determination of a specific
employee behaviour required for a particular task.
Man Analysis: Knowledge, attitude and skill one
must possess for attainment of organizational
objectives
2) Getting ready for the job:
The trainer has to be prepared for the job.
And also who needs to be trained - the newcomer or
the existing employee or the supervisory staff.
3) Preparation of the learner:
Putting the learner at ease
Stating the importance and ingredients of the job
Creating interest
Placing the learner as close to his normal working position
Familiarizing him with the equipment, materials and trade
terms
4) Presentation of Operation and Knowledge:
The trainer should clearly tell, show, illustrate and question
in order to convey the new knowledge and operations.
The trainee should be encouraged to ask questions in order
to indicate that he really knows and understands the job.
5) Performance Try out:
The trainee is asked to go through the job several times.
This gradually builds up his skill, speed and confidence.
6) Follow-up:
This evaluates the effectiveness of the entire training effort
TRAINING METHODS
Training methods can be broadly classified as on-the-job
training and off-the-job training
There are various methods of training which can be
broadly classified into:
On the Job Training
Off the job Training

a) On-the-job training
On the job training occurs when workers pick up skills
whilst working along side experienced workers at their
place of work.
Job Rotation
Apprenticeship and coaching
Committee assignment.
Experience
Temporary Promotions
(i) Job Rotation:
It involves movement of a manager from one job to another job.
The purpose of job rotation is to broaden the knowledge.
Trainees learn about the different enterprise functions by
rotating into different positions.
(ii) Coaching:
In coaching the trainee is placed under a particular supervisor
who acts as an instructor and teaches job knowledge and skills
to the trainee.
(iii) Committee assignment:
Under this method the trainee managers are appointed as
members of a committee.
The committee is assigned a subject related to the business to
discuss and make recommendations.
By participating in meeting and discussion every member
learns analytical thinking and decision making skills.
(iv) Temporary promotions:
Staff take as a charge of acting manager temporarily.
Such Managers make no decisions.
b) Off-the-job training
This occurs when workers are taken away from their
place of work to be trained.
This may take place at training agency or local college,
although many larger firms also have their own
training centres.
Training can take the form of lectures or self-study and
can be used to develop more general skills and
knowledge that can be used in a variety of situations.
The various types of off-the-job training are
(i)Instructor presentation:
The trainer orally presents new information to the
trainees, usually through lecture. Instructor
presentation may include classroom lecture, seminar,
workshop, and the like.
(ii) Group discussion:
The trainer leads the group of trainees in discussing a
topic.
(iii) Demonstration:
The trainer shows the correct steps for completing a task, or
shows an example of a correctly completed task.
(iv) Assigned reading:
The trainer gives the trainees reading assignments that
provide new information.
(v) Exercise:
The trainer assigns problems to be solved either on paper or
in real situations related to the topic of the training activity.
(vi) Case study:
The trainer gives the trainees information about a situation
and directs them to come to a decision or solve a problem
concerning the situation.
(vii) Role play:
Trainees act out a real-life situation in an instructional
setting.
(viii) Field visit and study tour:
Trainees are given the opportunity to observe and interact
with the problem being solved or skill being learned.
 CAREER STAGES

 CAREER STAGES
What people want from their careers also varies according to the
stage of one's career.
What may have been important in an early stage may not be
important in a later one.
Four distinct career stages have been identified: trial,
establishment/advancement, mid-career, and late career.
Each stage represents different career needs and interests of the
individual

a) Trial stage:
The trial stage begins with an individual's exploration of career-
related matters and ends usually at about age 25 with a
commitment on the part of the individual to a particular
occupation.
Until the decision is made to settle down, the individual may try a
number of jobs and a number of organizations.
Unfortunately for many organizations, this trial and exploration
stage results in high level of turnover among new employees.
Employees in this stage need opportunities for self-exploration
and a variety of job activities or assignments.

b) Establishment Stage:
The establishment/advancement stage tends to occur
between ages 25 and 44.
In this stage, the individual has made his or her
career choice and is concerned with achievement,
performance, and advancement.
This stage is marked by high employee productivity
and career growth, as the individual is motivated to
succeed in the organization and in his or her chosen
occupation.
Opportunities for job challenge and use of special
competencies are desired in this stage.
The employee strives for creativity and innovation
through new job assignments.
Employees also need a certain degree of autonomy in
this stage so that they can experience feelings of
individual achievement and personal success.

c) Mid Career Crisis Sub Stage:

The period occurring between the mid-thirties
and mid-forties during which people often
make a major reassessment of their progress
relative to their original career ambitions and
goals.
d) Maintenance stage:
The mid-career stage, which occurs roughly
between the ages 45 and 64, has also been
referred to as the maintenance stage.
This stage is typified by a continuation of
established patterns of work behaviour.
The person is no longer trying to establish a
place for himself or herself in the organization,
but seeks to maintain his or her position.
 This stage is viewed as a mid-career plateau
in which little new ground is broken.
The individual in this stage may need some
technical updating in his or her field.
The employee should be encouraged to
develop new job skills in order to avoid early
stagnation and decline.
e) Late-career stage:
In this stage the career lessens in importance
and the employee plans for retirement and
seeks to develop a sense of identity outside
the work environment.
PERFORMANCE APPRAISAL
 PERFORMANCE APPRAISAL
Performance appraisal is a systematic and objective
assessment or evaluation of performance and
contribution of an individual
The systematic evaluation of the individual with
respect to his performance on the job and his potential
for development.
Dale s. Beach.
Performance appraisal is the process of obtaining,
analyzing and recording information about the relative
worth of an employee.
It is a systematic, and objective way of judging the
relative worth of an employee in performing his/her
task.
The focus of the performance appraisal is measuring
and improving the actual performance of the employee
and also the future potential of the employee.
Its aim is to measure what an employee does.
Objectives of Performance appraisal:
To review the performance of the employees over a given period
of time.
To judge the gap between the actual and the desired
performance.
To help the management in exercising organizational control.
Helps to strengthen the relationship and communication
between superior subordinates and management employees.
To diagnose the strengths and weaknesses of the individuals so
as to identify the training and development needs of the future.
To provide feedback to the employees regarding their past
performance.
Provide information to assist in the other personal decisions in
the organization.
Provide clarity of the expectations and responsibilities of the
functions to be performed by the employees.
To judge the effectiveness of the other human resource functions
of the organization such as recruitment, selection, training and
development.
To reduce the grievances of the employees.
PROCESS OF PERFORMANCE APPRAISAL
Process of performance appraisal:
a) Establishing performance standards:
The first step in the process of performance
appraisal is the setting up of the standards which
will be used to as the base to compare the actual
performance of the employees.
This step requires setting the criteria to judge
the performance of the employees as successful
or unsuccessful and the degrees of their
contribution to the organizational goals and
objectives.
The standards set should be clear, easily
understandable and in measurable terms.
In case the performance of the employee cannot
be measured, great care should be taken to
describe the standards.
b) Communicating the standards:
After establishing the standards, it is the
responsibility of the management to
communicate the standards to all the
employees of the organization.
The employees should be informed and the
standards should be clearly explained.
This will help them to understand their roles
and to know what exactly is expected from
them.
The standards should also be communicated to
the appraisers or the evaluators and if required,
the standards can also be modified at this stage
itself according to the relevant feedback from
the employees or the evaluators.
c) Measuring the actual performance:
The most difficult part of the Performance appraisal process is
measuring the actual performance of the employees that is the
work done by the employees during the specified period of time.
It is a continuous process which involves monitoring the
performance throughout the year.
This stage requires the careful selection of the appropriate
techniques of measurement, taking care that personal bias does
not affect the outcome of the process and providing assistance
rather than interfering in an employees work.
d) Comparing the actual with the desired performance:
The actual performance is compared with the desired or the
standard performance.
The comparison tells the deviations in the performance of the
employees from the standards set.
The result can show the actual performance being more than the
desired performance or, the actual performance being less than
the desired performance depicting a negative deviation in the
organizational performance.
It includes recalling, evaluating and analysis of data related to the
employees performance.

e) Discussing results:
The result of the appraisal is communicated and discussed
with the employees on one-to-one basis.
The focus of this discussion is on communication and
listening.
The results, the problems and the possible solutions are
discussed with the aim of problem solving and reaching
consensus.
The feedback should be given with a positive attitude as this
can have an effect on the employees future performance.
The purpose of the meeting should be to solve the problems
faced and motivate the employees to perform better.
f) Decision making:
The last step of the process is to take decisions which can be
taken either to improve the performance of the employees,
take the required corrective actions, or the related HR
decisions like rewards, promotions, demotions, transfers etc.

 Performance appraisal -
Traditional approach
Traditionally, performance appraisal has
been used as just a method for
determining and justifying the salaries of
the employees.
Then it began to be used a tool for
determining rewards (a rise in the pay)
and punishments (a cut in the pay) for the
past performance of the employees.
 Traditional approach
This approach was a past oriented
approach which focused only on the
past performance of the employees
i.e. during a past specified period of
time.
This approach did not consider the
developmental aspects of the
employee performance i.e. his
training and development
 Performance appraisal -
Modern approach
More formal and structured.
As a tool to identify better performing
employees from others,
As a tool to identify employees training needs,
As a tool to identify career development paths,
As a tool to identify rewards and bonuses
As a tool to identify promotions to the next
levels.
Performance Appraisal
Methods
Individual Evaluation Methods
Confidential report
Essay evaluation
Critical incidents
Checklists
Graphic rating scale
Behaviorally anchored rating scale
MBO
 Confidential Report
Descriptive report

Prepared at the end of the year

Prepared by the employees immediate

supervisor
The report highlights the strengths and
weaknesses of employees
Prepared in Government organizations

Does not offer any feedback to the employee

 Essay evaluation
The rater is asked to express the strong as
well as weak points of employees
behavior
The rater considers the employees :
Job knowledge and potential
Understanding of companys programs, policies,
objectives etc
Relation with co-workers and supervisors
Planning, organizing and controlling ability
Attitude and perception
 Critical incidents
Manager prepares lists of statements of very

effective and ineffective behavior of an

employee

These critical incidents represent the

outstanding or poor behavior of the employees

The manager periodically records critical

incidents of employees behavior

 Example:
July 20 - Sales clerk patiently attended to the
customers complaint. He is polite, prompt,
enthusiastic in solving the customers problem
July 20 - The sales assistant stayed 45 minutes
beyond his break during the busiest part of the
day. He failed to answer store managers call
thrice. He is lazy, negligent, stubborn and
uninterested in work
 Critical Incident method

Ex: A fire, sudden breakdown, accident

Workers reaction scale

A informed the supervisor immediately 5

B Become anxious on loss of output 4
C tried to repair the machine 3
D Complained for poor maintenance 2
E was happy to forced test 1
 Checklists
A checklist is a set of objectives or descriptive

statements about the employee and his behavior.

Under weighted checklist, value of each question may
be weighted.
Example:
Is the employee really interested in the task assigned?
Yes / No
Is he respected by his colleagues? Yes / No
 Checklist method
Simple checklist method
Weighted checklist method
Forced choice method

Simple checklist method:

Is employee regular Y/N
Is employee respected by subordinate Y/N
Is employee helpful Y/N
Does he follow instruction Y/N
Does he keep the equipment in order Y/N
 Weighted checklist
method

weights performance rating

(scale 1 to 5 )
Regularity 0.5
Loyalty 1.5
Willing to help 1.5
Quality of work 1.5
Relationship 2.0
 Forced choice method
This method uses several sets of paired phrases, two of

which may be positive and two negative

The rater is asked to indicate which of the four phrases

is the most and least descriptive of a particular worker

Favorable qualities earn plus credit and unfavorable

ones earn the reverse

 Forced choice
method

Criteria Rating

1.Regularity on the job Most Least

Always regular
Inform in advance for delay
Never regular
Remain absent
Neither regular nor irregular
 Graphic Rating Scale
A form is used to evaluate the performance of the

employees

A variety of traits may be used in this device, the

most common being quality and quantity of work

Easy to understand and use.

Permits statistical tabulation of scores of employees

 Graphic Rating Scale
Continuous Rating Scale
Discontinuous Rating Scale

Employee name_________ Deptt_______

Raters name ___________ Date________
------------------------------------------------------------------------
Exc. Good Acceptable Fair Poor
5 4 3 2 1 _
Dependability
Initiative
Overall output
Attendance
Attitude
Cooperation
Total score Continuous Rating Scale
 Indifferent Enthusiastic

Attitude

No Interested Very
Interest enthusiastic

Discontinuous Rating Scale

BARS( behaviorally Anchored
rating scale)
Step 1. Identify critical incidents

Step 2. Select performance dimension

Step 3. Retranslate the incidents

Step 4. Assign scales to incidents

Step 5. Develop final instrument

 MBO Process
Set organizational goals
Defining performance target
Performance review
feedback
 MBO
MBO emphasizes collectively set goals that are tangible,

verifiable, and measurable

Focuses attention on goals rather than on methods

Concentrates on Key Result Areas (KRA)

Systematic and rational technique that allows

management to attain maximum results from available

resources by focusing on achievable goals

 Key Elements Of MBO
Arranging organizational goals in a means-ends chain
Engaging in joint goal setting
This process has the following steps:
Identify KRAs
Define expected results
Assign specific responsibilities to employees
Define authority and responsibility relationship
Conducting periodic progress review
Conducting annual performance review
 Performance Appraisal
Methods
Group Appraisal
Ranking
Paired comparison
Forced distribution
Performance tests Field review
technique
360 degree Appraisal Method
 Ranking method
The evaluator rates the employee from
highest to lowest on some overall
criteria
Paired comparison method

Each worker is compared with all other

employees in a group
For several traits paired comparisons are
made, tabulated and then rank is assigned to
each worker
This method is not applicable when the group
is large
 Ranking method

Employee Rank

A 2

B 1

C 3

D 5

E 4
 Paired comparison
method
A B C D E Final Rank
A - - - + + 3

B + - - + + 2

C + + - + + 1

D - - - - + 4

E - - - - - 5
No of Positive evaluation
Total no. of evaluation * 100 = employee superior evaluation
Forced Distribution Methods

The rater is asked to appraise the

employee according to predetermined
distribution scale.
Two criteria used for rating are: job
performance and promotability.
 Forced Distribution
Methods
A five point performance scale is also
used without mentioning any descriptive
statements.
The worker is placed between two
extremes of good and bad
performance.
Forced Distribution method

No.
of
employees
10% 20% 40% 20% 10%
poor Below average good Excellent
average

Force distribution curve

 Field review method

The appraiser goes to the field and obtains the

information about work performance of the

employee by way of questioning the said

individual, his peer group, and his superiors

 Field review method
Performance subordinate peers superior customer
Dimension

Leadership ^ ^

Communication ^ ^

Interpersonal skills ^ ^

Decision making ^ ^ ^

Technical skills ^ ^ ^

Motivation ^ ^ ^
 360o Appraisal System
It is a systematic collection and feedback of

performance data on an individual or group,

derived from a number of stakeholders

Data is gathered and fed back to the individual

participant in a clear way designed to promote

understanding, acceptance and ultimately

behavior
 360o Appraisal System
Appraisal taken from:
Boss (HOD)
Subordinates
Peers
Immediate supervisor
 Performance criteria for
executives
For top managers
Return on capital employed
Contribution to community development
Degree of upward communication from
middle-level executives
Degree of growth and expansion of
enterprise.
 For middle level managers

Departmental performance
Coordination among employees
Degree of upward communication from
supervisors
Degree of clarity about corporate goals
and policies
 For supervisors

Quality and quantity of output in a given

period
Labor cost per unit of output in a given
period
Material cost per unit in a given period
Rate of absenteeism and turnover of
employees
No of accidents in a given period