BBA 112: ORGANIZING AND HRM

Lecturer: Dr. Vera Ayitey


Principles of Organization

Types of Organization

Authority, Power and Responsibility

Management by Objectives (MBO)

Human Resource Management
 ORGANIZING
• Organization as a group of persons
• Organization as a structure of relationship
• Organization as a function of management
• Organization as a process.
 Organizing as a group of people

• Organization begins when people combine efforts for some common

purpose.
• An identifiable group of people contributing their efforts.
• An organization comes into existence when there are a number of
persons in communication and relationship to each other and are
willing to contribute towards a common goal.
 Organization as a structure of relationships

• It describes the scalar chain and the chain of command

• It sets up the scope of activities of the of the
organization by laying down the structure of
relationships.
• It refers of the organization structure.
 Organization as a function of Management

• It is a process of integrating and coordinating the efforts of

others, deploying resources for the accomplishment of
certain objectives.
 Organizing as a process
• Organization is the process of establishing relationship
among the members of the organization.
• Identification and grouping of activities to be
performed and dividing them among the individuals
and creating authority and responsibility relationship
among them in order to achieve organization goals.
 Steps in Organizing
1.Consideration of objectives which serve as guidelines for the
management and workers leading to unity of direction in the
organization.

2.Identification and grouping of activities (division of labor).

3.Assignment of duties

4.Delegation of authority: The role of authority and responsibility.

What is the relationship between authority and responsibility?
 Authority and Responsibility

• Responsibility without authority is an empty

vessel.
• Authority without responsibility is reckless
• Authority and responsibility are delegated to the
subordinates to enhance performance.
 Authority
• Authority: the line of authority extending from upper
organizational levels to the lowest levels, which clarifies
who reports to whom
• Line authority: authority that entitles a manager to direct
the work of an employee
• Staff authority: positions with some authority that have
been created to support, assist, and advise those holding
line authority (exams office, faculty exams office, student
registration help desks, etc).
 Responsibility

• Responsibility: the obligation or expectation to perform

any assigned duties.
• Duties of employees and employers???

• Unity of command: the management principle that

each person should report to only one manager.
 Authority, Power and
Responsibility
• Authority: the right by which things get done. It is the
right to order or command and is delegated from the
superior to the subordinate to discharge his
responsibilities.
• Power is the capacity or ability to influence the
behavior of other individuals.
• Responsibility is the obligation to perform.
 Nature of Organizations

• There are objectives to achieve

• People
• Communication is key
• It is a continuous process
• It involves a structure of relationships
• It involves a network of authority and responsibility.
 Organization Structure
• An organization structure shows the authority and responsibility
relationship between the various positions of the organization by
showing who reports to whom.
• It is a set of planned relationships between groups of related functions
and between physical factors and personnel required for the
achievement of organizational goal.
• The structure of an organization is generally shown on the organization
chart or a job task pyramid.
 Elements of Organizational Design
• Organizing: management function that involves arranging and
structuring work to accomplish the organization’s goals
• Organizational structure: the formal arrangement of jobs within an
organization
• Organizational chart: the visual representation of an organization’s
structure
• Organizational design: creating or changing an organization’s structure
 Purposes of Organizing
• Divides work to be done into specific jobs and departments.
• Assigns tasks and responsibilities associated with individual jobs.
• Coordinates diverse organizational tasks.
• Clusters jobs into units.
• Establishes relationships among individuals, groups, and departments.
• Establishes formal lines of authority.
• Allocates and deploys organizational resources.
 Work Specialization
•Work specialization: dividing work activities
into separate job tasks
 Departmentalization
• Departmentalization: the basis by which jobs are grouped
together
• Functional departmentation/departmentalization.
• Geographical departmentalization
• Product departmentalization
• Process departmentalization
• Customer departmentalization
 Today’s View on Departmentalization
• Two trends are:
• Cross-functional teams: a work team composed of
individuals from various functional specialties. This has
become more popular as tasks become more complex.
• Customer departmentalization: emphasizes monitoring and
responding to customers’ needs
 Span of Control
• Span of control: the number of employees a manager can efficiently
and effectively manage
Contrasting Spans of Controls
 Centralization and Decentralization
• Centralization: the degree to which decision making is
concentrated at upper levels of the organization
• Decentralization: the degree to which lower-level employees
provide input or actually make decisions
 Exhibit 11.5 Centralization or Decentralization
More Centralization More Decentralization

Environment is stable. Environment is complex, uncertain.

Lower-level managers are not as capable or Lower-level managers are capable and
experienced at making decisions as upper-level experienced at making decisions.
managers.
Lower-level managers do not want a say in Lower-level managers want a voice in
decisions. decisions.
Decisions are relatively minor. Decisions are significant.
Organization is facing a crisis or the risk of Corporate culture is open to allowing managers
company failure. a say in what happens.
Company is large. Company is geographically dispersed.
Effective implementation of company strategies Effective implementation of company strategies
depends on managers retaining say over what depends on managers having involvement and
happens. flexibility to make decisions.
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 Employee Empowerment
• Employee empowerment: giving employees more
authority (power) to make decisions
 Formalization

• Formalization: how standardized an organization’s jobs

are and the extent to which employee behavior is guided
by rules and procedures
 Mechanistic and Organic Structures

• Mechanistic organization: an organizational design that’s

rigid and tightly controlled
• Organic organization: an organizational design that’s
highly adaptive and flexible
Exhibit 11.6 Mechanistic Versus Organic Organizations

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 Strategy and Structure
• An organization’s structure should facilitate goal achievement.
• Because goals are an important part of the organization’s strategies,
it’s only logical that strategy and structure are closely linked.
 Size and Structure

• There’s considerable evidence that an organization’s size

affects its structure, but once an organization grows past a
certain size, size has less influence on structure.
 Technology and Structure
• Unit production: the production of items in units or small
batches (ships, customized vehicles, private jets, etc.).
• Mass production: the production of items in large batches
(automobile industry)
• Process production: the production of items in continuous
processes (hand lotions, beverages, etc.)
 Environmental Uncertainty and Structure

• In stable and simple environments, mechanistic designs can be

more effective.
• The greater the uncertainty, the more an organization needs
the flexibility of an organic design.
 Traditional Organizational Design Options

• Simple structure: an organizational design with little

departmentalization, wide spans of control, centralized authority, and
little formalization
• Functional structure: an organizational design that groups together
similar or related occupational specialties
• Divisional structure: an organizational structure made up of separate,
semiautonomous units or divisions
 Team Structures

• Team structure: an organizational structure in which the entire

organization is made up of work teams
 Matrix and Project Structures
• Matrix structure: an organizational structure that assigns specialists
from different functional departments to work on one or more projects
• Project structure: an organizational structure in which employees
continuously work on projects
 The Virtual Organization

• Virtual organization: an organization that consists of a small

core of full-time employees and outside specialists temporarily
hired as needed to work on projects
• Sometimes called “Network” or “Modular” organization
 Telecommuting

• Telecommuting: a work arrangement in which

employees work at home and are linked to the
workplace by computer
 Compressed Workweeks, Flextime, and Job
Sharing

• Compressed workweek: a workweek where employees work longer

hours per day but fewer days per week
• Flextime (or flexible work hours): a scheduling system in which
employees are required to work a specific number of hours a week but
are free to vary those hours within certain limits
• Job sharing: the practice of having two or more people split a full-time
job
 The Contingent Workforce

• Contingent workers: temporary, freelance, or contract

workers whose employment is contingent on demand for
their services
 MBO
• It is a process whereby the superior and subordinate
managers of an organization jointly identify its common
goals, define each individual’s major areas of responsibility in
terms of results expected of him, and use these measures as
guides for operating the unit and assessing the contribution
of each of its members.
 Reflective questions
1.An organic organization strictly adheres to the chain-of-command
principle and has a wide span of control.
2. Innovators need the efficiency, stability, and tight controls of the
mechanistic structure.
3. All other things unchanged, the narrower the span of control,
the more efficient the organization is.
4. Customer departmentalization works well because it emphasizes
interdepartmental communication regarding customer's needs.
5. Given other things unchanged, managers with well-trained and
experienced employees can function well with a wider span of
control than those with a less talented workforce.
BBA 112: MANAGING HUMAN RESOURCES

Lecturer: Dr. Vera Ayitey

 Learning Objectives
12.1 Explain the importance of human resource management
and the human resource management process.
12.2 Describe the external influences that affect the human
resource management process.
12.3 Discuss the tasks associated with identifying and
selecting competent employees.
12.4 Explain how companies provide employees
with skills and knowledge.
12.5 Describe strategies for retaining competent,
high-performing employees.
12.6 Identify two important trends in organizational
career development.
12.7 Discuss contemporary issues in managing
human resources.
 Krepin Diatta
•
After images and videos of Krepin Diatta started going round on
social media, many poured onto the internet to troll his looks,
teasing him even further after it was discovered that the midfielder,
who plays for the Belgian side, Club Brugge KV had an even ‘better-
looking’ girlfriend.

•
One troll even went as far as sharing a photo of Krepin Diatta with
his beautiful white girlfriend and called them ‘beauty and the beast’.
•
Another person also said if given $50m she won’t marry him,
because she can’t walked down the aisle with a frog.
•
Reacting to the insults he has been receiving on
social media, the 20-year old wrote this emotional
piece:
•
“I am very sad to see some African brothers making
fun of me. I work for our beautiful and dear
continent and what I receive in return are only
insults, mockery of my brothers.
•
This is too bad of you and racism comes from there.
•
I need your encouragement and not your insults.
Thank you to everyone who supports me. Only
God makes my strength and I am proud of my
physical person.

•
Your mockery won’t change anything in my life.
But one thing is for sure, we are all African”
(Diatta, 2022)
 Why Human Resource Management is
Important
• Human resource management (HRM) can be a
significant source of competitive advantage
• HRM is an important part of organizational strategies
• The way organizations treat their people can
significantly impact performance
 The Human Resource Management
Process

• To ensure an organization has qualified people to

perform all the work, specific HRM activities need
to be done
 Exhibit 12.1 HRM Process

Exhibit 12.1 shows the eight steps in the HRM process.

Copyright © 2021, 2018, 2016 Pearson Education, Inc. All Rights Reserved
 External Factors that Affect the Human
Resource Management Process
• The economy: lasting impact of the Great Recession and the
Russia-Ukraine war.
• Labor unions
• Laws and rulings (affirmative action, equal employment
opportunity, Act 651, etc).
 Human Resource Planning
• Human resource planning: ensuring that the organization
has the right number and kinds of capable people in the
right places and at the right times
• Steps:
• Environmental scanning
• Demand and supply forecasting (Assessing current
human resources and meeting future HR needs)
• Action decisions (surplus and deficit human resource
needs).
 Current Assessment
• Job analysis: an assessment that defines jobs and the
behaviors necessary to perform them
• Job description (position description): a written
statement that describes a job/what a job entails.
• Job specifications: a written statement of the minimum
qualifications a person must possess to perform a given
job successfully
 Meeting Future H R Needs/Increased
Scrutiny in Selection Process
• Future H R needs are determined by the organization’s
mission, goals, and strategies.
• Companies that do not carefully scrutinize the
qualifications or backgrounds of employees surely pose
risks of increased liability, poor reputation, and lower
performance.
 Recruitment and Decruitment
• Recruitment: locating, identifying, and
attracting capable applicants
• Decruitment: reducing an organization’s
workforce
• Layoff and termination??
 Exhibit 12.3 Recruiting Sources
Source Advantages Disadvantages
Internet Reaches large numbers of people; can get Generates many unqualified
immediate feedback candidates
Employee Knowledge about the organization provided May not increase the diversity and
referrals by current employee; can generate strong mix of employees
candidates because a good referral reflects on
the recommender

Company website Wide distribution; can be targeted to specific Generates many unqualified
groups candidates
College recruiting Large centralized body of candidates Limited to entry-level positions

Professional Good knowledge of industry challenges and Little commitment to specific

recruiting requirements organization
organizations

Social media Takes advantage of current employees’ Not nearly as effective in reaching
connections; particularly effective at older or senior candidates
recruiting younger candidates
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 Exhibit 12.4 Decruitment Options
Option Description
Firing Permanent involuntary termination
Layoffs Temporary involuntary termination; may last only a few days or
extend to years
Attrition Not filling openings created by voluntary resignations or normal
retirements
Transfers Moving employees either laterally or downward; usually does not
reduce costs but can reduce intraorganizational supply–demand
imbalances
Reduced Having employees work fewer hours per week, share jobs, or
workweeks perform their jobs on a part-time basis
Early retirements Providing incentives to older and more senior employees for
retiring before their normal retirement date
Job sharing Having employees share one full-time position

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 Selection
• Selection: screening job applicants to ensure that the
most appropriate candidates are hired.
• Recruitment and selection???
 Exhibit 12.6 Selection Tools
Tool Characteristics
Application forms Almost universally used
Most useful for gathering information
Can predict job performance but not easy to create one that does

Written tests Must be job-related Include intelligence, aptitude, ability, personality, and interest tests
Are popular (e.g., personality tests; aptitude tests) Relatively good predictor for
supervisory positions

Performance Use actual job behaviors Work sampling—test applicants on tasks associated with that
simulation tests job; appropriate for routine or standardized work
Assessment center—simulate jobs; appropriate for evaluating managerial potential

Interviews Almost universally used Must know what can and cannot be asked
Can be useful for managerial positions
Background Used for verifying application data—valuable source of information
investigations Used for verifying reference checks—not a valuable source of information

Physical Are for jobs that have certain physical requirements Mostly used for insurance purposes
examinations
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 Assessing an Applicant’s Future Job
Performance
• Work sample tests: Hands-on simulations of part or all of
the work that workers in a job routinely must perform.
• One of the most reliable and valid tools for predicting
future performance
• More elaborate simulations can be designed and
administered through an assessment center to
determine managerial potential
 Realistic Job Preview
• Realistic job preview (R J P): a preview of a job that
provides both positive and negative information about
the job and the company
 Orientation
• Orientation: introducing a new employee to his or her job
and the organization
• Work unit orientation: familiarizes employees with the
goal of the work unit and their specific job
• Organization orientation: informs employees about the
company’s goals, history, philosophy, procedures and rules
Exhibit 12.8 Types of Training
 Exhibit 12.9 Traditional Training Methods
Method Characteristics
On-the-job Employees learn how to do tasks simply by performing them, usually
after an initial introduction to the task.
Job rotation Employees work at different jobs in a particular area, getting
exposure to a variety of tasks.
Mentoring Employees work with an experienced worker who provides
and coaching information, support, and encouragement; also called
apprenticeships in certain industries.

Experiential Employees participate in role-playing, simulations, or other face-to-

exercises face types of training.
Workbooks/ Employees refer to training workbooks and manuals for information.
manuals
Classroom Employees attend lectures designed to convey specific information.
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 Evaluating Employee Performance

• Performance Evaluation: the practice of providing job feedback

to an employee that may be used to improve performance and
for compensation and administrative decisions.
 Exhibit 12.10 Performance Appraisal Methods (1
of 2)
Method Description Advantages/Disadvantages

Written Essay Evaluator writes a description of + Simple to use

employee’s strengths and weaknesses, − May be better measure of evaluator’s
past performance, and potential; writing ability than of employee’s
provides suggestions for improvement. actual performance

Critical Incident Evaluator focuses on critical behaviors + Rich examples, behaviorally based
that separate effective and ineffective − Time-consuming, lacks quantification
performance.

Graphic Rating Popular method that lists a set of + Provides quantitative data; not time-
Scale performance factors and an incremental consuming
scale; evaluator goes down the list and − Doesn’t provide in-depth information
rates employee on each factor. on job behavior

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 Exhibit 12.10 Performance Appraisal Methods (2
of 2)
Method Description Advantages/Disadvantages
BARS Popular approach that combines + Focuses on specific and measurable job
(Behaviorally elements from critical incident and behaviors
Anchored Rating graphic rating scale; evaluator uses a − Time-consuming; difficult to develop
Scale) rating scale, but items are examples of
actual job behaviors.

Multiperson Employees are rated in comparison to + Compares employees with one another
Comparison others in work group. − Difficult with large number of
employees; legal concerns

MBO Employees are evaluated on how well + Focuses on goals; results oriented
they accomplish specific goals. − Time-consuming

360-Degree Utilizes feedback from supervisors, + Thorough

Appraisal employees, and coworkers. − Time-consuming
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 Compensation and Benefits
• Skill-based pay: a pay system that rewards employees for the job
skills they can demonstrate
• Variable pay: a pay system in which an individual’s compensation is
contingent on performance
Exhibit 12.11 What Determines Pay and Benefits
 Other Pay Factors
• Bonuses vs. Annual Pay Raises
• Pay Secrecy vs. Transparency
• Benefit Options
 Two Trends Shaping Career Development

• Lifelong learning: many organizations now support employee

lifelong learning through tuition reimbursement and
leadership programs
• Internships: internships are becoming more popular as
organizations realize this is a way to evaluate a potential
employee without a commitment to a full-time job
 Sexual Harassment
• Sexual harassment: any unwanted action or activity of a sexual
nature that explicitly or implicitly affects an individual’s
employment, performance, or work environment.
• Section 63 of Act 651
• Proving sexual harassment (quid pro quo, hostile work
environment, offensive environment created by others).
 Role modeling of sexual
harassment
•Volunteers????
 Bullying in the Workplace

• Workplace bullying: occurs when an individual

experiences a number of negative behaviors repeatedly
over a period of time that results in physical or mental
harm
 In-class activity 1
Kioko’s Confusion
 
An operating unit of a refinery was inefficient. When the unit’s manager retired,
Kinyanjui was sent in to make it more effective, including reducing the work force. One of
the employees he talked to was Pete Kioko.
 
Pete was 53 years old and had a high school education and 25 years of service. For the 12
years that performance appraisals had been used, Pete had always been “poor” or “fair”.
Kinyanjui decided to keep Pete but felt that his performance had to improve or he should be
terminated. The following discussion took place:
“Pete”, said Kinyaijui, “I have decided to keep you this time
because of your seniority and invalid wife. But your performance
must improve or you will be the first to go next time.” “What’s
wrong with my work?” asked Pete in surprise.

“I’ve always done what I was told to do. You’re the first person in
25 years who’s ever said I wasn’t doing my job right.” “But Pete,
that can’t be true. You’ve signed everyone of your evaluations,
and they said you were only doing “fair” or “poor” work.” “Well,
isn’t that okay?”
 QUESTIONS
1. How would you answer Pete?

2. How would you explain why Pete was permitted to do “fair”

or “poor” work for so long?

3. What does this case say about employees’ reactions to the

usual appraisals?
 Reflective questions
Roberta has been asked to complete a questionnaire about her job duties and the
qualifications she believes a candidate for her position should have. Roberta is
participating in a ________.
•A) job analysis
•B) employee survey
•C) position evaluation
•D) job review

Samantha, a human resources manager, wants to let potential candidates know

about the minimum qualifications that they should possess in order to successfully
perform the jobs they have applied for. What should she do?
•A) She should create a job description.
•B) She should create a job specification.
•C) She should perform a job analysis.
•D) She should perform a job satisfaction survey.
 True or False?
1.Recruitment is defined as the process of screening job
applicants to determine who is best qualified for the job
2.Variable pay systems reward employees for the job skills
and competencies they can demonstrate
3.Sexual harassment rarely occurs in countries other than
the United States
4.Companies can legally take disciplinary action against an
employee who complains of a hostile work environment.