Stee Studies

MODULE - 02

ORGANISING AND STAFFING

Meaning of Organization

Organization is a process which integrates different type of activities to achieve

organizational goals and objectives, to achieve these goals there must be competent management
providing them all those factors to perform their job efficiently and effectively. Organization is
nothing but is a process of integrating and coordinating the efforts of men and material for the
accomplishment of set objectives.

Every thinker is of the opinion that an organization is a process. They further have added
that this process leads identification of work to be performed which for convenience sake should
be objectively grouped and defined. Then the work should be assigned to individuals according
to their aptitude, technical knowledge, skill and efficiency. For satisfactory working the
individuals should be given some right and authority. A mutual relationship between jobs (what
to be done) duties (to be performed) and authority (to be exercised) should be established.
Organization is just like a tool in the hands of management. Net results will be perfect if the tool
is well designed and handed properly.

Meaning of Staffing:

Staffing is the traditional management function of attraction and selection of the best
people and putting them on job where their talents and skills can be best utilized, and retention
of these people through incentives, job training and job enrichment programmers, in order to
achieve both individual and organizational objectives. This emphasizes managing human and
not material or financial resources.

Staffing is the function of human relationship in the organizational structure with

competent staff. Staffing in that part of the management function which is concerned with people
at work and with their relationship within the organization.

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CHARACTERISTICS OF ORGANISATION

Robbins defines Organization as ' a consciously coordinated social unit, composed of two
or more people, that functions as a relatively continuous basis to achieve common goals of set
of goals.

Agrawal defines organization as ' a goal oriented open system composed of people, structure
and technology.

From the above definitions, an organization has the following characteristics-

 It is an open system.

 It is a goal oriented.

 It is a collection of people.

 Organization consists of people.

 Organization consists of technology, and

 It has continuity.

Organization is an open system : An open system means open to environment. Organization

exists and functions in environment. Environment compels the organization to acquire right type of
people, technology and structure so that the goals to serve the environment can be attained. The
organization is thus greatly influence the environment. Usually the demands or wants of the people
determines the strategies and goals of an organization. What are the needs in the market and how an
organization can bring new and needy products to the market create an interaction between the
organization and the environment. Without interaction, organization cannot fulfill required products
or services to the users groups. This way, an organization is an open system, without which it
cannot survive.
Organization is goal oriented: Without goal or set of goals, organization is useless. There is
nothing for the organization to do. Therefore, the major characteristic of any organization is its
goal. Type of people or technology is adopted so that the set goal can be achieved. The goal gives
line of action; acquire required type of people and uses type of technology so that the goal is
achieved in an anticipated time point. Without goal, organization cannot be formed.

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Organization is a collection of people: People are the main performers in any organization. In
other world, all the elements of any organization are the same except the cpeople. Even with the
same age, qualification, experience and facilities, the output of the people may vary, simply
because the needs and wants of all people are not the same. What makes them work by heart and
head is the one that differentiate organizations from one to others.
Organization consists of technology: Technology is the means of doing works. There are various
kinds of doing works. As an organization consists of more people, its performance procedure
should be of a fixed type so that each individual in the organization can exercise them well. This is
how technology initiates. Technology eases the work and shortens the time. Technology originates
a certain policy necessary to keep organizational beliefs in doings of the various people at different
structural level.
Organization has continuity: As the organization involves people, and the people generate
different needs, they can leave the organization or some may die too. This does not affect the
organization to stop or decrease in size. Hence, it is said that every organization has its own
continuity. A good manager can leave but other better man can take over the charge of the
organization.

THE ORGANIZATIONAL PROCESS

Organizing, like planning, must be a carefully worked out and applied process. This process
involves determining what work is needed to accomplish the goal, assigning those tasks to
individuals, and arranging those individuals in a decision‐making framework (organizational
structure). The end result of the organizing process is an organization a whole consisting of unified
parts acting in harmony to execute tasks to achieve goals, both effectively and efficiently.

A properly implemented organizing process should result in a work environment where all
team members are aware of their responsibilities. If the organizing process is not conducted well,
the results may yield confusion, frustration, loss of efficiency, and limited effectiveness

The stages or steps in the process of organization are explained below:

1. Fixing the objectives of the organization

At the top level, administrative management first fixes the common objectives of organisation. At

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the middle level, executive management fix the departmental objectives. Lastly, at the lower level,
supervisory management fix the day-to-day objectives. All the objectives of the organisation must
be specific and realistic

2. Finding activities must for achieving objectives

After fixing the objectives, the top-level management prepares a list of different activities (or
works) which are required to be carried out for achieving these objectives. This list is prepared at
random without following any sequence or order. This is a very important step because it helps to
avoid duplication, overlapping and wastage of efforts.

3. Grouping the similar activities

All similar or related activities having a common purpose are grouped together to make
departments. For e.g. all activities or works which are directly or indirectly connected with
purchasing are grouped together to make the Purchase Department. So various departments such as
Purchase, Production, Marketing, Finance, etc. are made. The grouping of similar activities leads to
division of labour and specialization.

4. Defining responsibilities of each employee

The responsibilities (duties) of each employee are clearly defined. This will result in the selection
of a right person for the right post / job. He / she will know exactly what to do and what not to do.
Therefore, it will result in efficiency.

5. Delegating authority to employees

Each employee is delegated (surrender or given) authority. Without authority, the employees
cannot carry out their responsibilities. Authority is the right to give orders and the power to get
obedience. The authority given to an employee should be equal to the responsibility given to him.

6. Defining authority relationship

When two or more persons work together for a common goal, it becomes necessary to clearly

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define the authority relationship between them. Each person should know who is his superior, from
who he should take orders, and to whom he will be answerable. Similarly, each superior should
know what authority he has over his subordinates.

7. Providing employees all required resources

After defining the authority relationships, the employees are provided with all the material and
financial resources, which are required for achieving the objectives of the organisation. So in this
step, the employees actually start working for a common goal.

8. Coordinating efforts of all to achieve goals

This is the last stage or step in the process of organisation. Here, the efforts of all the
individuals, groups, departments, etc. are brought together and co- coordinated towards the common
objectives of the organisation.

PRINCIPLES OF ORGANIZATION

The success of a business organization can be ensured if the following basic principles are
used. In order to develop a sound and efficient organization structure, there is need to follow certain
principles. In the words of E.F.L. Brech, "If there is to be a systematic approach to the formulation
of organization structure, there ought to be a body of accepted principles". They are as follows:

(1) Objectives: The objectives of the enterprise influence the organization structure and hence the
objectives of the enterprise should first be clearly defined. Then every part of the organization
should be geared to the achievement of these objectives.

(2) Specialization: Effective organization must promote specialization. The activities of the
enterprise should be divided according to functions and assigned to persons according to their
specialization.

(3) Span of Control: As there is a limit to the number of persons that can be supervised effectively
by one boss, the span of control should be minimum as far as possible, the minimum, that
means an executive should be asked to supervise a reasonable number of subordinates only,
say six.

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(4) Exception: As the executives at the higher level have limited time, only exceptionally complex
problems should be referred to them and routine matters should be dealt with by the lower levels.
This will enable the executives at higher level to devote time to more important and crucial issues.

(5) Scalar principle : This principle is sometimes known as the "chain of command". The line of authority
from the chief executive at the top to the front - line supervisor at the bottom, must be clearly
defined.

(6) Unity of Command: Each subordinate should have only one supervisor whose command he has to
obey. Dual subordination must be avoided, for it causes uneasiness, disorder, indiscipline and
undermining of authority.

(7) Delegation: Proper authority should be delegated at the lower level of organization also to carry out
the work effectively.

(8) Responsibility: The superior should be responsible for the acts of his subordinates.
(9) Authority: Authority is a tool by which a manager accomplishes the desired objectives, which
should be clearly defined.

(10) Efficiency: The organization structure should help enterprise to function efficiently to
accomplish the objectives at lowest cost.

(11) Simplicity: The organization structure should be simple and the levels should be as minimum
as possible.

(12) Flexibility: Should be flexible, adaptable to changing circumstances, permit expansion,

replacement, without dislocation and disruptionofthe basic design.

(13) Balance: There should be a reasonable balance in the size of various departments, between
centralization and decentralization, between the principle of span of control and short chain of
command and among all types of factors such as human, technical and financial.

(14) Unity of direction: Should be one objective and one plan for a group of activities having same
objectives. Unity of direction facilities unification and coordination of activities at various levels.

(15) Personal Ability: As people constitute an organization, there is need for proper selection,
placement and training of staff. Organisation structure must ensure optimum use of human
resources and encourage management development programmer.

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SPAN OF MANAGEMENT

The Span of Management refers to the number of subordinates who can be managed
efficiently by a superior. Simply, the manager having the group of subordinates who report him
directly is called as the span of management.

Span of management is Span of control -the number of subordinates a supervisor has is

used as a means of ensuring proper coordination and a sense of accountability among employees.
It determines the number of levels of management an organization has as well as the number of
employees a manager can efficiently and effectively manage. In the execution of a task,
hierarchical organizations usually have different levels of task processes. Workers at various
levels send reports on their progress to the next levels until the work is completed.

In the past it was not uncommon to see average spans of one to four (one manager
supervising four employees). With the development of inexpensive information technology in the
1980s, corporate leaders flattened many organizational structures and caused average spans to
move closer to one to ten. As this technology developed further and eased many middle-
managerial tasks (such as collecting, manipulating, and presenting operational information), upper
management found they could save money by hiring fewer middle managers. Research Studies of
management have found that this number (span) is usually 4-8 subordinates at the upper levels of
organization and 8-15 or more at the lower levels. However this is not definite.

DEPARTMENTALISATION

Departmentalization is the process of grouping individuals into departments and grouping

departments into total organizations. Horizontal differentiation of tasks or activities into discrete
segments is called departmentalization. There are several bases for departmentalization depending
upon the nature and size of organization, goals, strategies and environment.

Or in other words, Departmentalization is an organizational structure that separates people

into groups, or departments, based on a particular set of criteria. These departments have their
own leadership and work together to complete tasks. With large or complicated projects, multiple

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departments may work together. Here are the primary objectives of businesses that choose to
implement departmentalization:

 Maintaining control
 Simplifying operational processes
 Grouping specialized activities together
 Increasing overall efficiency
 Ensuring responsibility and accountability

The different types of departmentalization are as follows.

1. Departmentalization based on Products

This is more suitable for a large organization that manufactures a vast variety of products.
Under this separate groups or departments are created and each department is controlled by a
manager who will be responsible for all the activities of that sub group. Each subgroup will have its
own facilities required for manufacture, purchase, marketing and accounting etc. This type is
advantageous where variety of products are manufactured for example (i) Godrej, that
manufactures soaps, cosmetics, refrigerators, machines, furniture etc., (ii) HMT that manufactures
machines, watches, tractors, bearings etc. (iii) TATAs that make trucks, cars, steel, machines etc.

Advantages

 Top management is relieved of operational task enabling them to concentrate

more on common goals.

 Performance of different product groups can be easily compared enabling the top
management to invest more and more in profitable product groups and exercise
better control on non-performers.

 Managers of individual products put better effort to improve his area compared to
others.

Disadvantages

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 This calls for duplication of staff and facilities.

 Separate work force are required in sales, marketing and finance,
resulting in extra expenditure.

 More managers are required.

 May result in underutilization of facilities and equipment.
2. Departmentalization based on functions

The depart mentation is based on each major function of the organization. Depending on the
nature of organization the various functions are as follows: Marketing, Engineering, Production,
Finance, Personnel, and Purchase etc. Functional depart mentation is most widely employed basis of
organizing activities - and is present in almost every organization at some level in its structure.

Advantages

 It is logical reflection of functions.

 Maintains power and prestige of major functions.
 Follows principle of occupational specifications and thereby facilitates efficient
utilization of people.

 Simplifies training.
 Provides means of right control at top.
Disadvantages

 De-emphases overall company objectives

 Leads to over specialization of people.
 Reduces coordination between functions.
 Slow adoption to changes in environment
 Limits development of general managers.
3. Departmentalization based on time

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One of the oldest forms of generally used departmentalization at lower levels of an

organization is grouping of activities on the basis of time. The use of shifts is common in some
organizations due to economic or technological reasons. For service organizations like hospitals,
fire department, security, steel mills, chemical plants, round the clock work is essential. All
these call for 3 shift working of organization. Then under such circumstance, the depart
mentation is made on the basis of shifts as first shift, second shift etc.

Advantages

 Service can be rendered, that goes beyond the normal 8 hours shift/day.
 Facilitates use of processes that cannot be stopped or interrupted.
 Expensive capital equipment can be better utilized.
 Provides part time jobs for people who are otherwise busy during day time (students
going for part time job etc.)

 Higher and continuous production per day.

Disadvantages

 Lacks good and efficient supervision during night shifts.

 Inconvenient for people to work in night shifts and more difficult during shift
changes from day to night.

 Lack of effective coordination and communication from people of one shift to

next shift.

 Loss of product or service may increase owing to higher payment/ over time payment
during night shift.

4 .Departmentalization based on Territory and Geography

Departmentalization by Territory is common in organizations that operate over a wide

geographical area. The activities of an enterprise are divided into territories like, western
region, northern region, eastern region, southern region etc. They may be further divided into
sub regions in main regions like Karnataka region, Kerala region, Andhra Region, Tamil

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Nadu region within southern region etc.

Territorial is especially attractive to large-scale firms or other enterprises whose

activities are physically or geographically spread over a large area. Banks, Railways and big
manufacturing companies like petroleum companies (HP, Indian Oil etc.), cosmetic
companies are some of the examples of this.

Advantages

 Places responsibility at lower level.

 Places emphasis on local problems and markets.
 Ensures a better coordination within a region.
 Facilitates direct communication within a region.
 Better involvement of people to achieve higher targets.
 Provides a region-wise comparison of performance.
 Takes advantage of economics of local operations.
Disadvantages

 Requires more persons with General Manager Abilities.

 Requires maintaining similar functional people at all regions.
 Difficult to control from top management.
5. Depart mentation based on simple numbers

This was one of the most widely used ancient methods of departmentalization. This is
achieved by tolling of persons performing the same job and grouping them together under one
supervisor. This is not in common use now.

NEED OF DEPARTMENTATION

The need for departmentation arises due to various reasons that contribute to an
organization’s overall success and efficiency. Some of the key reasons include:

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> Specialization: Departmentation enables organizations to leverage the benefits of

specialization. By dividing work based on expertise, employees can focus on their areas of
proficiency, leading to increased productivity and higher-quality output.

> Coordination: Departmentation facilitates improved coordination between different

departments, ensuring a smooth workflow. It also helps reduce communication barriers, as
each department knows its specific roles and responsibilities.

> Control: Departmentation simplifies the process of monitoring and controlling the activities
of various departments. By setting departmental goals and performance standards, managers
can evaluate each department’s progress and implement corrective actions when necessary.

> Accountability: Departmentation fosters a sense of responsibility among employees by

clearly defining their roles and responsibilities. This clear demarcation helps employees
understand their contribution to the organization and encourages them to take ownership of
their work.

> Growth and Expansion: As organizations grow, the need for departmentation becomes
increasingly critical. A well-structured departmental framework allows organizations to
expand their operations and handle increased workloads more efficiently.

> Resource Utilization: Departmentation promotes the effective utilization of resources,

including human capital, by ensuring that employees with specific skills are assigned to
relevant tasks. This leads to better productivity and reduces the wastage of time and
resources

COMMITTEES

Committee can be defined as a group of organizational members who discuss and develop
solutions to problems. It can be either line or staff and can be established on a standing (permanent)
or an ad hoc basis. In business enterprises, the board of directors constitutes the committee at the
highest level. The purpose of such committees is to discuss various problems and recommend
solutions to the management. It is generally found to co-exist with line and staff type of
organization. The Board of Directors of a company is an example of a committee organization. This

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form of organization is suitable for taking decisions on policy matters or laying down broad
objective for the enterprise.

TYPES OF COMMITTEES

Ad-Hoc committee – what is an ad-hoc committee? The word ad-hoc is derived from the
Latin language, which means ‘for a specific purpose’. An ad hoc committee is therefore a
committee that is set up for the main purpose of performing a specific task or dealing with a
specific situation. Having completed the specific task and submitted its report, the ad hoc
committee is then dissolved. Majority of committees in business organizations and other places
are ad hoc types.

For example, an ad hoc committee could be formed by the management of an organization

to investigate into the causes of a particular problem bedeviling the organization. After the
completion of the task and submitting a report, the ad hoc committee is dissolved.

Executive committee – as the name suggests, this type of committee is made up of people
occupying top positions in an organization that have the powers to administer the day to day
affairs of the organization. Executive committees are mainly made up of senior management
personnel, and just like any other committee in a business organization, the executive committee
is given the mandate to perform special assignments or tasks.

Sub-committee – a sub-committee as the name implies, is basically a subsidiary

committee. This means that it is connected with a larger committee that is more powerful and
important than it. A sub-committee is said to be a child of a parent committee. A large
committee can appoint one or more of its members to form another committee under it in the
name of a sub-committee. The large committee underneath which the sub-committee is formed
is the parent committee.

Coordinating or Joint committee – this is a type of committee that acts as a link

between two committees and joins or coordinates their actions together. Such a committee
would normally be composed of representatives from the other committees whose activities it is
coordinating. Committees are very important in business organizations since they help in
resolving problems and also promote the exchange of opinions among members for the

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betterment of the organization.

Advantages:

1. Pooling of Opinions:
The members of committees come from different background and areas of expertise and have
different viewpoints and values. When persons with varied abilities sit together and discuss a
problem, various aspects of the case are highlighted and pros and cons are assessed. The pooled
opinion will help in taking a realistic view of the problem.

2. Better Co-Ordination:
Committee form of organization brings more co-ordination among different segments of the
organization when representatives of different departments sit together, they understand and
appreciate the difficulties faced by others. This type of frank discussions help on fixing the targets
of different departments and better co-ordination is achieved through this type of decision making.

3. Balancing of Views:
This type of organization helps in balancing the views expressed by different persons. There
is a tendency to over emphasize the aspects of one’s own department by ignoring the inter
dependent character of problems of different departments. A committee helps to bring out an
agreed view of the problem by taking into account divergent views expressed in such meetings.

4. Motivation:
The committees consist of managers as well as subordinates. The views of subordinates are
given recognition and importance. It gives them encouragement and makes them feel as an
integral part of decision making process. Such committees boost the morale of subordinates and
motivate them to improve their performance.

5. Dispersion of Power:

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The concentration of power in few persons may lead to misuse of authority and wrong
decisions. By spreading powers among committee members this problem can be solved.

6. Better Acceptance of Decisions:

The decisions taken by committees are better accepted by subordinates. The decisions of an
individual may be autocratic whereas committees decide in wider perspective of organization.
Since various shades of people are represented in committees, these decisions are better accepted.

7. Better Communication:
It is a better forum for discussing matters of mutual interest and reaching certain
conclusions. These decisions can be properly communicated to subordinates through committee
members. The members will transmit correct and authentic information and also convey the
background of taking those decisions.

8. Executive Training:
Committees provide a good forum for training executives. They learn the value of interaction,
group dynamics and human relations. They are exposed to various view points and learn the art of
reaching decisions and solving organizational problems.

Weakness of Committee Form of Organization:

This form of organization suffers from the following weaknesses:

1. Delay:
The main drawback of committee form of organization is delay in taking decisions. A
number of persons express their viewpoints in meetings and a lot of time is taken on reaching a
decision. The fixing of committee meetings is also time consuming. An agenda is issued and a
convenience date is fixed for the meeting. The decision making process is very slow and many
business opportunities may be lost due to delayed decisions.

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2. Compromise:
Generally, efforts are made to reach consensus decisions. The view point of the majority is
taken as a unanimous decision of the committee. The thinking of the minority may be valid but
it may not be pursued for singled out. They may accept less than an optimal solution, because of
a fear that if their solution proves wrong then they will be blamed for it.

3. No Accountability:
No individual accountability to be fixed if these decisions are bad. Every member of the
committee tries to defend himself by saying that he solves a different solution. If
accountability is not fixed then it is the weakness of the organization.

4. Domination by Some Members:

Some members try to dominate in the committee meetings. They try to thrust their view
point on others. The aggressiveness of some members helps them to take majority with them
and minority view is ignored. This type of decision making is not in the interest to the
organization.

5. Strained Relations:
Sometimes relations among committee members or with others become strained. If some
members take divergent stands on certain issues, some may feel offended. In case some issue
concerning other persons is discussed in a committee and members taking stand not liked by
those persons may offend them. The discussions in the meetings are generally leaked to other
employees. Some unpleasant decisions may not be liked by those who are adversely affected. It
affects relations of employees not only on the job but at personal level also.

6. Lack of Effectiveness:
The role of committees is not effective in all areas. The committees may be useful where
grievance redressal or inter personal departmental matters are concerned. Committees may not be
effective where policies are to be framed and quick decisions are required. Individual initiative

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will be more effective in these cases. So committees have a limited role to play.

Guidelines for Committee Members:

In order to make the working of committees effective, the members should follow these
guidelines:

1. The members should ensure that the atmosphere at the meetings is cordial and informal.

2. The members should express their views clearly and logically and listen to the
reactions calmly.

3. Disagreement should not be ignored. They should not compromise just for the sake of
harmony. Criticism should be directed on the issues and not on persons.

4. It should be ensured that chairman does not excessively dominate. His views should also be
treated in same way as that of others. His views should not be taken as final.

5. The disagreement in meeting should not be taken in personal level. The spirit of competition
should be avoided and co-operation should be enhanced.

All these guidelines will not only smoothen the working committees but will also make them an
effective instrument of the organization.

STAFFING

Staffing is defined as "filling and keeping filled, positions in the organization structure". It is also
known as "human resource management". This includes identifying the requirement of work-force,
taking inventory of people available, recruiting, selecting, placing, promoting, appraising, planning
the employee's careers, training them to suit the job, developing the staff to carry out the defined job
effectively and efficiently.

NATURE AND IMPORTANCE OF STAFFING

A business cannot be successfully run without the right kind of people. It is very important to fill
the jobs with suitable people who will carry out the job effectively. The staffing is very important
because of following reasons.

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(i) It helps in discovering talented and competent workers and developing them to move the
organization ladder.

(ii) Staffing is important to put the right person at right job which results in increased
production.

(iii) It avoids sudden disruption of the production due to shortage of workers, since it plans
and fills the positions.

(iv) It maintains harmony and creates healthy atmosphere in any organization by planning the
promotions, training needs and additional skills required.

(v) It plans the requirement of man power at various time and levels of a project and cater to
it.

Elements of staffing:

While carrying out the staffing function, the management should ensure that right people are
engaged for a job. The jobs cannot be changed to suit the people. The main elements involved in
staffing are:

(i) Proper placement of people.

(ii) Rationalrecruitment and selection.

(iii) Proper positioning and fixation of salaries.

(iv) Providing necessary training for the people to carry out the job.

(v) Good promotional policies and retirement scheme.

Functions of staffing:

Staffing plays a vital role in organization. It has key roles to play for the well being of any
organization. The following are some of the functions of staffing.

(i) Man power planning:

The first function of staffing is to plan the requirement of man power in various levels of

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organization to achieve the objectives of the organization. Man power planning involves short term and
long term. Short term is the immediate requirement of man power to reach the targets where as long
termplanning involves the requirement of people for future proposed projects.

(ii) Development:

Development means preparing the people of an organization to develop required skills to perform
their tasks. This involves training of people.

(iii) Fixing employment standards:

The staffing defines and fixes the responsibilities of people. The specification and qualifications
of people to be put on a particular job are prepared.

(iv) Sources of selection:

The staffing identifies and specifies sources of selection like internal or external sources. A
position may be filled by people from internal source available with in the organization either by
transfer or promotion. External sources may be considered for filling a position from outside
organizations.

(v) Selection:

After having identified the sources of selection, next function is selection process. People are
selected as per specifications and qualifications set earlier and recruited. The selected people are
placed on the job.

(vi) Training:

If required, the selected people are given necessary training to carry out the specific job.

(vii) Routine functions:

In addition to the above functions, the staffing also involves in promotion, transfer, punishment,

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motivation, welfare, coordination, retirement etc.

SELECTION PROCESS

Selection of personnel for the organization is one of the most important managerial
responsibilities. According to the requisition, a primary selection is done for the suitable candidates,
to be called for the interview. The final selection is done by the executives in the case of higher
posts and for lower posts recruitment, the per- sonnel officer is present in all selections and keeps
an eye on the recruitment activities with an aim:

 To find out whether the candidate can be suitable employee. For this, the candidate should be
clearly told about the nature of the job, terms and conditions.

 To know the suitability for the particular jobs, he can be cross questioned and thus the suitability
can be judged.

 If the selection of the worker, admitted to the firm is not working skillfully then the result will be,
either there will be a poor level of work or there will be a high rate of labour turnover. Both will be
harmful to the firm in the long run. Therefore every effort should be made to make proper selection.

Techniques of selection

 Application Banks
 Preliminary or Initial Interview
 Interview
 Group discussion
 Employment tests.

(i) Application Bank

It is invariably used as one of the selection tools and can be helpful at the interview stage. It
provides actual information needed for evaluating the candidate's suitably. It is also used as a basic
record of his personnel data is about educational qualifications, training, experience etc.

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Many large companies use such application forms which determine, whether the candidate
possesses the basic minimum requirement about the Qualifications, Knowledge and Skills or not.

Generally they seek information in the following areas:

 Personnel data such as age, sex, marital status.

 Family background, such as father's and mother's occupation and earnings.
 Educational background including training.
 Employment record including details about previous employment if any and present employment.
 Name and address of few persons usually other than relation to whom references can be made.
 Membership of professional organization.
 Reason for seeking job in the organization.
(ii) Preliminary or Initial interview
This interview is usually of short duration and is aimed at obtaining certain basic information with a
view of identifying the knowledge and other information not present in application. The candidate is
asked about his educational skill, knowledge, job experience, minimum salary acceptable etc.
Sometimes he is also asked that why he is applying for job in that particular organization. If the
candidate seems to be possessing the basic minimum requirement for efficient performance, he is
given an application form to fill in.

(iii) Interview

It is one of the least reliable and valid selection techniques. It relies upon a considerable extent
in accepting or rejecting a candidate. The interview is left with the inevitable personality variables
and for this he has nothing to depend upon except his subjective judgment.

The interview may follow a structural * pattern or an unstructured pattern.

> In structural pattern or directive pattern: In structural pattern of Interviewing, a list of questions
based on job specification is prepared in advance. The interview may be occasionally separated from
the prepared list of questions and put other questions. The candidate is supposed only to answer the

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questions and the interviewer can learn a lot about the candidate's ability and knowledge, but this
technique imposes serious limitation in drawing out his personality. It is not very effective.

> Unstructured or non-directive or unpatented: It is one of the most effective interviewing technique.
The interviewer, instead of asking too many questions initiates the candidate to create a kind of
permissive atmosphere in which the candidates talks usually quite revealingly about his
experiences, aspirations, fear, weakness etc. This kind of interview requires a high degree of
interviewing skill and it can therefore be conducted by only trained interviewers In some large
organizations, the candidate has to go through a review of two or three panel interviewers. After
each panel interviewer some candidates are eliminated and only those candidates, who succeed in
the first interview are sent on to the second interviewing panel and so on.

(iv) Group Discussion

In this technique candidates are brought together in group of 6 or 8 persons for informal
discussion and the selectors observe them and evaluate them. There are two kinds of group
discussions, one where a problem is given to a group to discuss and the individual member is free to
choose his own approach. In the second type, each individual is given an initial position and
supplied with supporting information to defend his own position.

(V) Employment tests

Most of the large companies use one or other kind of employment tests. Before a company use
employment test it should take following points into ac- count.

 Since the tests are aimed at predicting future success in a job situation, they should be selected or
designated on the basis of a sound job analysis programmer.

 In deciding upon the test to be used as a selection tool, its specialty should be taken into
considerations.

 Tests should be valid. Before a test is selected for use as an employment, its validity should be
determined in relation to the specific job.

 Tests are only one of the techniques of selection.

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They are not fool proof and therefore instead of using single test, often a batch of tests is
used. A variety of tests are used as selection tools. The object of these scientific methods of
selection is to ensure that a person selected possesses those physical and mental qualities in
required degrees which are essential if he is to become an efficient and successful worker.

> Intelligence Test: It is a measure of an individual's capacity of reasoning and verbal comprehension.
It is used in the selection and classification of workers for almost every kind of job from the
unskilled to the highly skilled, administrative and professional jobs.

> Vocations Aptitude Test: Physical strength and general intelligence are not enough to enable a
person to perform a task efficiently. Besides, he must possess the ability for the performance of that
job. In fact from the point of view of future achievements, a person of high natural ability is likely
to prove more successful than one who through training and experience has gained more knowledge
but possesses less natural ability. If this is correct, then it makes it necessary to find out whether the
applicant possesses the necessary vocational aptitude or not.

> Analytical Test: In this method, a job is analyzed in terms of key qualities or abilities as speed and
quality of observations, ability to keep one's head and not get confused when a quick decision is
called for. A test or a combination of tests is then taken which measure the degree to which these
abilities are present or lacking in the candidate.

> Synthetic Test: In case of jobs which are complex and for which the analytical tests can't be
performed, synthetic tests may be adopted. It presents the candidate a complex situation more or less
similar to the one normally present in actual task and his success or failure in the test is accepted as
the possession or absence of the required vocational aptitude.

RECRUITMENT PROCESS

It is an important step in the employment of labour.

Haphazard recruitment of labour brings in a measure of chances and uncertainty in an

industry and may result in inefficiency and loss of production. This means that systematic steps
should be taken to ensure that right type of persons are available to the concern in right number. The
numbers of workers required by a concern depends on

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> The scale of production.

> The degree of mechanization.

Following are the various sources from where the personnel may be recruited

 Applications introduced by friends and relatives

 Consulting agencies
 Campus recruitment
 Casual callers
 Through advertisement
 Field trip and college recruitment
 Employment exchange
 Labour contractors

 Applications Introduced by friends and relatives: Often the employees introduce their relative's
application to find a good job for them. Many companies prefer to take such candidates because their
background can be known. In this way a good worker can bring a good worker. However this may
lead to nepotism and favoritism.

 Consulting agencies: A consulting agency is commonly utilized to find specialized executive

personnel. It either helps the personnel department by supplementing its efforts or work on its
behalf. In such a situation, the agency must understand and estimate correctly the client's past
experiences, history and future projections.

 Campus recruitment: As a large numbers of management institutes like IIM, XLRI, IIT etc., are
engaged in giving the professional training, many companies find it easier to pick up the best talent
straight from the institute to fill its managerial position. In fact these professional institutes have
provided recruitment source to firms.

 Casual callers: Sometimes on his own initiative, the applicant sends his application for the job. The
personnel office keeps the record of applications and the suitable candidates can be selected from
the callers.

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 Through advertisements: Companies advertise in the newspaper for their vacancies. Generally the
senior posts are filled by this method when they can't be filled by promotions. The advertisement
gives a wide range of choice. It also depends upon the employer’s fame. If the name is not reputed
one some of the good personnel do not apply.

 Field trips and college recruitment: This method is being used for private industrial firms. These
firms send their selecting teams to respective colleges and universities, interview the candidates
who are nearing completion of their studies and make selection. This is no doubt very expensive
and time consuming but has the advantage of choosing the cream from the lot.

 Employment exchange: The recruitment is also done through the employment exchange of the
persons who are enrolled in the exchange.

The main function of the exchange is:

> To supply information about persons in need of jobs and about jobs that are available.

> To direct persons to factories where suitable jobs exist.

> To develop job specification.

> To procure information about current wage rate.

> To introduce selected employees with personnel department and policies of the company.

> To follow up the new recruits for initial adjustments.

> To look-after the employee canceling and operating the system seriously.

> To keep records of employees, hired, resigned, discharged and transferred.

Labour Contractors: The casual vacancies may be filled up by the company through labour
contractors. Usually unskilled candidates are appointed in this manner.

REVIEW QUESTIONS

> Explain the nature and importance of staffing.

> What are the various elements of staffing? Explain.

> Explain the techniques of selection.

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> What are different types of interview techniques?

> Explain group discussion.

> What is recruitment? Explain various sources of recruitment.

> Differentiate between recruitment and selection.

DIRECTING AND CONTROLLING

Direction means issuing of orders, leading and motivating subordinates as they go about
executing orders. It is also defined as the process and techniques used for issuing instructions to
carry out a job and making sure that the operations are carried out as per the plan. Directing is the
interpersonal aspect of managing by which subordinates are lead to understand and contribute
effectively and efficiently to the attainment of enterprise objectives. The direction has two major
activities namely

1. Giving orders to employees and

2. Leading and motivating them to accomplish the goals.

DEFINITION OF DIRECTION:

"Directing is the interpersonal aspect of managing by which subordinates are led to understand and
contribute effectively to the attainment of enterprise objectives. (Harold D Koontz &O’Donnell)

"Directing consists of the processes and techniques utilized in issuing instructions and making
certain that operations are carried on as originally planned". (Haimann)

"Direction is telling people what to do and seeing that they do it to the best of their ability. It
includes making assignments, corresponding procedures, seeing that mistakes are corrected,
providing on-the-job instruction and issuing orders". (Ernest Dole)

"Directing is the guidance, the inspiration, the leadership of those men and women that constitute
the real core of the responsibilities of the management". (Urwick and Breach)

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REQUIREMENTS OF DIRECTION:

The role of a manager is to understand the needs, motives and attitudes of his subordinates. He
should use appreciate strategies according to the people and situations. The following are some of
the principles of effective direction:

(i) Harmony of objectives:

For an organization to function well, it the goals of company and goals of individuals are in
complete harmony. It is very uncommon for such a situation to exist in any organization. Individual
goals may differ from the goals of the organization. The manager should coordinate the individual
goals to be in harmony with the goals of the organization

(ii) Unit direction of command:

This principle implies that an employee should receive orders and instructions only from
one supervisor or boss. Otherwise, there may be indiscipline and confusion leading to conflicting
orders, divided loyalties and reduced results.

(iii) Efficiency:

If the superior consults with the subordinates in decision-making, then there would be a
sense of commitment. This makes the direction easy and improves the efficiency of subordinates.

(iv) Direct supervision:

Managers should have direct face-to-face contact with the subordinates. Personal touch
with subordinates will ensure successful direction.

(v) Effective communication:

The supervisor must have good communication skills. He must clearly communicate the
plans, goals, policies, responsibilities and the duties to the subordinates. In communication,
comprehension is more important than the content.

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(vi) Effective control:

The management should monitor the behavior and performance of subordinates to exercise
effective control over subordinates.

(vii) Follow-through:

Direction is a continuous process. Having given the directions may not ensure carrying out
them. Hence a manager should follow-through the performance of his subordinates. Follow up is
very important function of direction.

GIVING ORDERS

The order is a devise employed by a line manager in directing his immediate subordinates to
start an activity, stop it and modify it. A staff executive does not issue orders. To some men the
matter of giving orders and having them obeyed seems a very simple affair but the fact is that it is
surrounded by many difficulties. Mary Parker Follett lays down the following principles which
should be followed in giving orders:

1. The attitude necessary for the carrying out of an order should be prepared in advance. People
will obey an order only if it appeals to their habit patterns. Therefore, before giving orders, it should
be considered how to form the habits which will ensure their execution.

2. Face-to-face suggestions are preferable to long- distance orders.

3. An order should be depersonalized and made an integral part of a given situation so that the
question of someone giving and someone receiving does not come up. Thus the task of the manager
is to make the subordinates perceive the need of the hour so that the situation communicates its
own message to them.

Chester Barnard lays down four conditions which make an order acceptable. These are:

1. Order should be clear and complete;

2. Order should be compatible with the purpose of the organization;

3. Order should be compatible with the employee's personal interest; and

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4. Order should be operationally feasible.

5. Orders may be communicated verbally or in writing. Written orders are appropriate when the
subject is important, many details are involved and there is geographical distance between the
order- giver and the recipient.

A manager may follow four types of methods to ensure compliance to his orders:

1. Force
2. Paternalism
3. Bargain, and
4. Harmony of objectives.
The formula followed in "force" is: "Do what I say or else ... ", meaning thereby that an employee
will be punished if he does not follow orders. The results are frustration, restriction of output,
sabotage, militant unionism, etc.

The formula followed in "paternalism" is: "Do what I say because I am good to you." The result
here is that the employees develop a feeling of gratitude and indebtedness toward the manager which
they do not like. Further, paternalism operates in violation of the law of effect. Instead of increased
rewards following increased compliance, the paternalistic manager provides rewards first and
expects the compliance to follow.

The formula followed in "bargain" is: 'You do as I say in certain respects and I do as you say in
certain other respects.' The result of this method is that the manager's control is gradually reduced.
The formula followed in "harmony of objectives" is: "If we perform together each will achieve his
goal". This in fact is the best formula for ensuring compliance to order.

MOTIVATION

The success or failure of a business organization depends on the performance of people

working for it. Generally, performance is determined by three factors ability, knowledge and
motivation which are all related by a widely acknowledged formula:

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Performance = (Ability + Knowledge) X Motivation

Among the three factors which affect performance, we can see the multiplying effect
motivation has on ability and knowledge in determining performance.

Therefore motivation is a very important factor because it deals with human behavior.
Motivation is nothing but the task of making someone to act in the desired manner.

Some definitions of motivation

(i) Motivation is a general term applying to the entire class of drives, desires, needs, wishes and
similar forces that induces an individual or a group of people to work'. -

Koontz and O'Donnell

(ii) 'Motivation is the process of attempting to influence others to do your work through the
possibility of gain or reward'. - Edwin B. Flippo (iii) 'Motivation means a process of stimulating
people to action to accomplish desired goals' - Scott

NATURE OF MOTIVATION

Motivation is not an easily observed phenomenon. We observe an individual's actions and then
interpret his observed behavior in terms of underlying motivation. This sometimes leaves a wide
margin of error. Our interpretation does not necessarily reveal the individual's true motivation. The
following points reveal the complexities involved in understanding true motivation:

1. Individuals differ in their motives.

The viewpoint (called -monistic approach") that there is only one "economic drive" which
determines behavior is untenable. The goals to which individuals aspire differ and so do their
motives. This is well illustrated by an oft-quoted story. There were three men cutting stones near a
cathedral about three- fourths completed. A stranger came along and said to the first man, "My
friend, what are you doing?" The first man replied, "Me, what am I doing? I am working for 10
shillings a day." He went to the next man and put to him the same question. The second man said,
"Me, what am I doing? 1 am squaring this stone, see. I have to make its edge absolutely straight."

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The stranger walked on to the third man and repeated the same question.

The third man replied. "Me, what am I doing? You see that cathedral up there. I am helping
to build that. Is not it great?" In this story the major source of satisfaction to the first man was the
wages he earned. The job itself contributed very little. But job itself was the outstanding source of
satisfaction to the second man. The third man viewed the completion of his group goal the building
of the cathedral as his primary source of satisfaction. This means that there is no single motive that
determines how all workers will react to the same job and, therefore, there can be no single strategy
that will keep motivation and productivity high for everyone everywhere. The manager has to deal
with human diversity.

2. Sometimes the individual himself is unaware of his motive.

Freud uncovered this phenomenon while analyzing his critical patients. He found that in
many ways man is like an iceberg. Only a small part is conscious and visible, the rest is beneath the
surface. This below- the-surface concept is unconscious motive. The presence of this explains why
man cannot always verbalize his motive to attain certain goals or even tell what his goals are. An
example can be drawn from the famous Hawthorne experiments. One girl-worker complained to
her counselor about her foreman.

Later on, it was found that the reason why she disliked her foreman was that she had a step-
father whom she feared and whose physical appearance was very much like her foreman, with the
result that she had unconsciously transferred to her foreman the unfavorable characteristics of her
step-father.

3. Motives change:
Hierarchy of motives of each individual called "structure" is not fixed. It changes from time
to time. An individual's primary motive today may not be primary tomorrow, even though he may
continue to behave in the same way. For example, a temporary worker may produce more in the
beginning to become permanent. When made permanent he may continue to produce more—this
time to gain promotion, and so on.

4. Motives are expressed differently.

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The ways in which motives are eventually translated into actions also vary considerably
between one individual and another. One individual with a strong security motive may play' it safe
and avoid accepting responsibility for fear of failing and being fired. Another individual with the
same security motive may seek out responsibility for fear of being fired for low performance. Even
the same individual may express his motive differently at different times. Thus, an employee who
in the beginning works hard to get promotion may, when frustrated, indulge in anti- management
union activities for the same purpose. Different expressions completely mislead a manager because
he does not know what the employee's true motivation is.

5. Motives are complex.

It is difficult to explain and predict the behavior of workers. The introduction of an
apparently favorable motivational device may not necessarily achieve the desired ends if it brings
opposing motives into play. In a factory, when blue-green lighting was introduced to reduce eye
strain, the output of men workers increased but that of women workers decreased. On investigation
it was found that the latter disliked the change in lighting because they felt that the new type of
lighting had made them look 'simply ghastly'.

6. Multiple motives make the choice of goals difficult for an individual

We have been referring to examples of motivations as if they exist one at a time. This is
hardly the case. The fact is that multiple motivations operate simultaneously to influence an
individual's behavior. Furthermore, some of these motivations are incompatible with one another.
This results in the following three types of motivational conflicts which make the person's choice of
goal difficult:

(i) Approach-

approach conflict where the person desires to do two things which he likes equally well, but
it is possible to do only one. For example, there is the person who has the choice of either
remaining at his present place of posting with the present salary, or going to a new place with a hike
in salary. In such situations, two different behaviors are aroused in him which block each other.

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(ii) Avoidance-

avoidance conflict where the person is forced to choose between two alternatives, both of
which are considered equally undesirable by him. For example, there is the person who, being
dissatisfied with his present job, wants to leave it but also wants to avoid unemployment.

(iii) Approach

avoidance conflict where the person is attracted to the positive characteristics of his choice,
but wants to avoid its negative characteristics. For example, a person may be motivated to work
overtime for extra pay but may not like to be scolded by his wife for reaching home late.

MOTIVATION THEORIES

There is no shortage of motivation theories. We can classify them under three broad- heads:

1. Content theories

2. Process theories

3. Reinforcement theory:

The content theories tell us what motivates an individual. They throw light on the various
needs and incentives which cause behavior. The process theories, on the other hand, answer the
question how behavior is caused. Reinforcement theory explains the ways in which behavior is
learned, shaped or modified.

THEORIES OF HUMAN MOTIVATION

There are several theories of motivation based on different structures of human needs and
expectations. Some of them are

1. Maslow's Hierarchy of Needs Theory

2. Herzberg's Motivation - Hygiene Theory

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1. MASLOW'S HIERARCHY OF NEEDS THEORY

Abraham Maslow's Need-Hierarchy theory, published in 1943, is one of the most popular
theories of motivation. According to him, the behavior of an individual is determined by his strongest
need at a particular moment. Needs that are not satisfied influence his behavior. But the needs once
satisfied do not serve as a motivator.

According to Maslow, all human needs can be arranged in an order of priority. In other words, human
needs have an hierarchy and they have to be satisfied from the lowest level moving in the ascending
order.

Figure Shows Maslow's hierarchy of needs as five ascending levels.

Physiological Needs:

Includes food, shelter, clothing, water, sleep, sex and other bodily needs. The physiological
needs are the basic needs in life. These are essential for everybody to remain alive. These needs
motivate the person to work and earn sufficient amount of money to fulfill them.

(1) Safety Needs:

Includes security and protection from physical, emotional and economic harm. Once the

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physiological needs are satisfied, the safety needs or security needs become predominant. Physical
safety may be protection from fire and accidents. Economical security may be in terms of job
security, health and insurance programme, retirement plan etc., Emotional needs may be the
necessity to be happy and be free from mental disturbances.

(2) Social Needs :

Includes affection, belongingness, acceptance and friendship. Social needs come into the
picture when the primary needs are taken care of. Since man is a social animal, he has to interact
with the society, and live with respect in society. He desires to love and be loved; accept others and
be accepted; show affection and be shown affection an so on. Social needs make his work
enjoyable. Esteem Needs Includes self-respect, autonomy, status, recognition, responsibility,
attention, achievement, prestige, etc., Esteem needs represent an individual's concern for feeling
important and be respected by others. These needs are primarily satisfied by the individuals
themselves. However, the management may create a proper climate to help individuals to fulfill
these needs.

(3) Self-Actualization Needs:

Includes Self-advancement, self-fulfillment, self- development, self-realization etc., Self-

actualization is the highest level need in Maslow's hierarchy. It is the desire to become what is one
is capable of becoming. It is the desire to realize one's own potential. In an organization, a person
attempting to satisfy these needs seeks challenging work and looks for opportunities for personal
growth.

According to Maslow, if a lower level need is satisfied, a higher level need emerges. This
goes on till the highest level needs are satisfied. This theory of human motivation by Maslow has
been a landmark is the field of Management. However, it has been also criticized on the following
grounds:

(i) Needs of every person may not follow Maslow's hierarchy.

(ii) Most of the human needs are recurring and are never satisfied fully indeed.

(iii) Most of the needs co-exist and there is no such hierarchy whatsoever.

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(iv) Boundaries between different levels of needs may be hazy and overlapping.

(v) Although behavior depends on need, or the lack of it, it may not be fully dependent.

(vi) The concept of self-actualization is theoretical and academic. No person can ever know his
maximum or best potentials.

2. HERZBERG'S MOTIVATION-HYGIENE THEORY OR THE TWO-FACTOR THEORY

The Motivation-Hygiene theory or the Two-Factor theory was proposed by Frederick Herzberg
in the year 1959. He carried out a survey on the experiences and feelings of a group of 200
engineers and accountants working in a few industries in Pittsburgh, USA. He concluded that
people had two categories of needs which are independent of each other and affect behaviour in
different ways. He said that satisfaction or dissatisfaction in work arise from these two different sets
of factors. They were

(i) Hygiene factors

(ii) Motivators.

(1) Hygiene-Factors

He found that certain factors did not motivate the employee when present on the job but their
absence caused dissatisfaction. These factors were called Hygiene factors because they primarily
prevented dissatisfaction just like hygiene conditions prevent sickness. These factors are:

(1) Company policy and administration

(2) Supervision

(3) Working conditions

(4) Salary and status

(5) Security in job and personal life

(6) Interpersonal relationship with superiors, peers and sub-ordinates.

Herzberg said that the opposite of satisfaction was not dissatisfaction but 'No satisfaction' and
likewise the opposite of dissatisfaction was not satisfaction but it was No dissatisfaction'. Hygiene

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factors are also known as maintenance factors or Dissatisfiers and are necessary to sustain a
reasonable level of 'No dissatisfaction' among employees.

(ii) Motivators: According to Herzberg, Motivational factors are essential to provide job
satisfaction and to maintain high job performance. Motivators act as stimuli to make people work
hard voluntarily and be happy in the organization. Motivators or `Satisfiers' include the following
factors :

(1) Challenging work

(2) Responsibility

(3) Recognition

(4) Promotion opportunities

(5) Achievement

(6) Job content.

Herzberg said that these factors helped in increasing job satisfaction. However a decrease in
these factors would lead to satisfaction' and not dissatisfaction. Motivators generally help attaining
higher output by the employees.

Herzberg's Theory in a nut shell can be :

(I) Hygiene Factors:

When absent - increase dissatisfaction. When present - prevent dissatisfaction.

(ii) Motivators:

When absent - prevent satisfaction. When present - increases satisfaction.

Criticisms of Herzberg's theory

(i) People may not be accurate in reporting their satisfying or dissatisfying experiences.

(ii) A factor that causes dissatisfaction is one person may bring satisfaction to another.

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(iii) People are biased and they tend to credit themselves for successful events while blaming outside
events for their failures.

(iv) The theory does not measure the levels of satisfaction and dissatisfaction Over simplification.

Comparison of Theories of Maslow and Herzberg

Both theories concentrate on the factors which motivate employee's behavior to achieve
higher output. Which Maslow formulated the theory in terms of needs, Herzberg in terms of goals.
While Maslow gave a hierarchy to his needs, Herzberg divided them into two groups but without
hierarchy. While Maslow said that all needs are motivators, Herzberg said only higher order needs
are motivators. Actually the first three ascending levels of needs according to Maslow correspond
to the Hygiene factors of Herzberg and the last two higher levels of needs of Maslow correspond to
Motivators as per Herzberg.

COMMUNICATION

Communication has been variously defined by a number of writers. According to

Newman and summer, it is an exchange of facts, ideas, opinions or emotions by two or more
persons. Allen Louise defines it as the sum of all the things one person does when he wants to
create understanding in the minds of another.

Simply stated, communication means the process of passing information and understanding

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from one person to another. A proper understanding of information is one very important aspect
of communication. If the information is not understood by the receiver in the same meaning in
which its sender wants him to understand it, the purpose of communication is defeated. This
may result in confusion, chaos and organizational inefficiency, leading to non-fulfillment of
business goals.

In short, communication is not merely transmission of information from one person to

another but also correct interpretation and understanding of the information. It is not to get
something off the mind of the person transmitting it, but to get something into the mind and
actions of the person receiving it.

IMPORTANCE OF COMMUNICATION

The importance of communication can be elaborated as under:

1) Communication is fundamental to accomplish work

In any organization, a manager spends most of his time communicating i.e., reading,
writing' Speaking or listening. Communication is the means by which he persuades, informs,
motivates and leads his employees towards organizational goals through communication that
there is a transmission of information among employ • It is without communication no work can
get accomplished.

2. Communication facilities planning

Planning, the most important function of management requires extensive communication
among the rank and file of the organization. Planning is done after inputs from key executives and
other personnel.

3. Communication helps in decision-making

Managers rely heavily on the quality and quantity of information that is available in order to
take decisions. It is communications which provides the right type of information to a manager
and enables him to consider the pros and cons thoroughly before taking a decision.

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4. Communication is the basis of co-ordination

If all the departments and divisions of an organization have to co-ordinate their efforts to
achieve the common goals, communication is highly essential. A good communication system is
the basis of all inter-dependent activities. It is the foundation of all group activity. It is only
through communication that people can attain a common view point and therefore co-operate
with each other to achieve organizational objectives. According to Hick, ―When communication
stops, organized action comes to an end.

5. Communication improves relationships between employees.

Communication builds bridges of relationships between employees. It binds individuals to a
common purpose. A good communication system helps exchange of facts., ideas, feelings and
sentiments among the employees. Apart from work-related information. This results in in a better
understanding among the employees which is what an organization exactly wants.

6. Communication improves morale and motivation:

When manager listens carefully to employees grievances and take necessary action, it
improves morale and motivation of the workers. Without communication, it is impossible to
understand others and make them understand. Good communication helps in addressing workers
problems and therefore keeps their morale and motivation high.

7. Communication is key to managerial-efficiency:

Good communication skills are a must for modern-day managers. The growth success or
the growth of a manager largely depends on his communication skills.

PURPOSES OF COMMUNICATION

Some important purposes which communication servers are as under:

1. Communication is needed in the recruitment process to persuade potential

employees of the merits of working for the enterprise. The recruits are told about the

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company's organization structure, its policies and practices.

2. Communication is needed in the area of orientation to make people

acquainted with peers, superiors and with company's rules and regulations.

3. Communication is needed to enable employees to perform their functions

effectively. Employees need to know their job's relationship and importance to the overall
operation. This knowledge makes it easy for them to identify with the organizational mission. If
a nurse in a hospital knows why she is to follow certain procedures with a patient and how this
relates to the total therapy programme for him, it is much easier for her to develop an
ideological commitment to the hospital.

4. Communication is needed to acquaint the subordinates with the evaluation of their

contribution to enterprise activity. It is a matter of some motivational importance for the
subordinates to know from their superior how they stand and what the future may hold for
them. This appraisal, if intelligently carried out, boosts the subordinates' morale and helps them
in building their career.

5. Communication is needed to teach employees about personal safety on the job.

This is essential to accidents, to lower compensation and legal costs and to decrease
recruitment and training tor replacements.

6. Communication is of vital importance in projecting the image of an enterprise in the

society. The amount of support which an enterprise receives from its social environment is
affected by the information which elite groups and the wider public have acquired about its
goals, activities and accomplishments. During the 1982 blowout at Bombay High, ONGC took
care to keep the country informed about the steps that were being taken to combat the crisis.
Contrast this with Union Carbide which did nothing to refurbish its image after the Bhopal Gas
leak.

7. Communication helps the manager in his decision process. There is a spate of

varied information produced in an enterprise. The manager must make a choice of useful and
essential information which should reach him. The important question before him is 'what do
I need to know?' It should be remembered that no two successive managers of the same plant
will give the same answer to this question.

8. Communication helps in achieving coordination. In a large organization, working

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on the basis of division of labour and specialization, there is need for coordination among its
component parts. This can be achieved only through communication. A good communication
system is the basis of all interdependent activities which we find being carried out in different
departments of an organization. By providing information to each unit about the relevant
activities of others, a good system of communication makes the interdependence of each unit
acceptable to it. In the absence of communication, no unit would tolerate this interdependence.
This will make coordination difficult. In the words of March and Simon, "The greater the
efficiency of communication within the organization, the greater the tolerance of a unit for
interdependence."

9. Communication promotes cooperation and industrial peace. Most of the disputes in

an enterprise take place because of either lack of communication or improper communication.
Communication helps the management to tell the subordinates about the objectives of the
business and how they can help in achieving them. Similarly, communication helps the
subordinates in putting forth their grievances, suggestions, etc. before the management. Thus
communication helps in promoting mutual understanding, cooperation and goodwill between the
management and workers.

10. Communication increases managerial efficiency. It is said that the world of modem
management is the world of communication and the success of a manager in the performance of
his duties depends on his ability to communicate. Administrators in business and industry
reportedly spend between 75 and 95 per cent of their time communicating. Naturally then, an
effective system of communication is very essential for the efficiency of a manager. Benjamin
Balinsky has rightly remarked that, if there is any shortcut to executive effectiveness, it is the
mastery of the art of face to face communication.

Review Questions - MOTIVATION

1 Define motivation. Describe its characteristics.

2. Explain Maslow's Need-Hierarchy theory. How does it compare with the Two-Factor
Theory?

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3. "Motivation is the core of management.- Discuss. What can management do to motivate

the staff in an industrial organization?

4. What is meant by morale? How is it related to productivity?

5. "Morale and productivity move together like the east and the west sides of an
elevator." Comment.

6. Distinguish between motivation and morale. How is morale related to productivity?

7. How can compliance of an order be ensured?

Review Questions - COMMUNICATION

1. Definecommunication and describe the important steps involved in a

communication process.

2. What is communication? Describe its importance.

3. Distinguish between "formal" and "informal" communication. Describe the
various directions in which the formal communication generally flows.

4. What is communication? Describe its various forms.

5. Explain the principal barriers to communication and suggest measures to make
communication effective.

6. Explain the principles of effective communication.

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