WEEK 7

FORMAL AND INFORMAL ORGANISATION

The formal organisation refers to the structure of jobs and positions with clearly defined
functions and relationships as prescribed by the top management. This type of organisation is
built by the management to realise objectives of an enterprise and is bound by rules, systems
and procedures. Everybody is assigned a certain responsibility for the performance of the
given task and given the required amount of authority for carrying it out. Informal
organisation, which does not appear on the organisation chart, supplements the formal
organisation in achieving organisational goals effectively and efficiently. The working of
informal groups and leaders is not as simple as it may appear to be. Therefore, it is obligatory
for every manager to study thoroughly the working pattern of informal relationships in the
organisation and to use them for achieving organisational objectives.

Formal Organisation: Chester I Bernard defines formal organisation as -"a system of

consciously coordinated activities or forces of two or more persons. It refers to the structure
of well-defined jobs, each bearing a definite measure of authority, responsibility and
accountability." The essence of formal organisation is conscious common purpose and comes
into being when persons:

(a) Are able to communicate with each other

(b) Are willing to act, and

(c) Share a purpose.

The formal organisation is built around four key pillars. They are:

(a) Division of labour

(b) Scalar and functional processes

(c) Structure, and

(d) Span of control

Thus, a formal organisation is one resulting from planning where the pattern of structure has
already been determined by the top management.

Characteristic of Formal Organisation

(a) Formal organisation structure is laid down by the top management to achieve
organisational goals.

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(b) Formal organisation prescribes the relationships amongst the people working in the
organisation.

(c) The organisation structures is consciously designed to enable the people of the
organisation to work together for accomplishing the common objectives of the enterprise.

(d) Organisation structure concentrates on the jobs to be performed and not the individuals
who are to perform jobs.

(e) In a formal organisation, individuals are fitted into jobs and positions and work as per the
managerial decisions. Thus, the formal relations in the organisation arise from the pattern of
responsibilities that are created by the management.

(f) A formal organisation is bound by rules, regulations and procedures.

(g) In a formal organisation, the position, authority, responsibility and accountability of each
level are clearly defined.

(h) Organisation structure is based on division of labour and specialisation to achieve

efficiency in operations.

(i) A formal organisation is deliberately impersonal. The organisation does not take into
consideration the sentiments of organisational members.

(j) The authority and responsibility relationships created by the organisation structure are to
be honoured by everyone.

(k) In a formal organisation, coordination proceeds according to the prescribed pattern.

Advantages of Formal Organisation

(a) The formal organisation structure concentrates on the jobs to be performed. It, therefore,
makes everybody responsible for a given task.

(b) A formal organisation is bound by rules, regulations and procedures. It thus ensures law
and order in the organisation.

(c) The organisation structure enables the people of the organisation to work together for
accomplishing the common objectives of the enterprise.

Disadvantages or Criticisms of Formal Organisation

(a) The formal organisation does not take into consideration the sentiments of organisational
members.

(b) The formal organisation does not consider the goals of the individuals. It is designed to
achieve the goals of the organisation only.

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(c) The formal organisation is bound by rigid rules, regulations and procedures. This makes
the achievement of goals difficult.

2. Informal Organisation: Informal organisation refers to the relationship between people in

the organisation based on personal attitudes, emotions, prejudices, likes, dislikes etc. an
informal organisation is an organisation which is not established by any formal authority, but
arises from the personal and social relations of the people.

These relations are not developed according to procedures and regulations laid down in Notes
the formal organisation structure; generally large formal groups give rise to small informal or
social groups. These groups may be based on same taste, language, culture or some other
factor. These groups are not pre-planned, but they develop automatically within the
organisation according to its environment.

Characteristics of Informal Organisation

(a) Informal organisation is not established by any formal authority. It is unplanned and arises
spontaneously.

(b) Informal organisations reflect human relationships. It arises from the personal and social
relations amongst the people working in the organisation.

(c) Formation of informal organisations is a natural process. It is not based on rules,

regulations and procedures.

(d) The inter-relations amongst the people in an informal organisation cannot be shown in an
organisation chart.

(e) In the case of informal organisation, the people cut across formal channels of
communications and communicate amongst themselves.

(f) The membership of informal organisations is voluntary. It arises spontaneously and not by
deliberate or conscious efforts.

(g) Membership of informal groups can be overlapping as a person may be member of a

number of informal groups.

(h) Informal organisations are based on common taste, problem, language, religion, culture,
etc. It is influenced by the personal attitudes, emotions, whims, likes and dislikes etc. of the
people in the organisation.

Benefits of Informal Organisation

(a) It blends with the formal organisation to make it more effective.

(b) Many things which cannot be achieved through formal organisation can be achieved
through informal organisation.
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(c) The presence of informal organisation in an enterprise makes the managers plan and act
more carefully.

(d) Informal organisation acts as a means by which the workers achieve a sense of security
and belonging. It provides social satisfaction to group members.

(e) An informal organisation has a powerful influence on productivity and job satisfaction.

(f) The informal leader lightens the burden of the formal manager and tries to fill in the gaps
in the manager's ability.

(g) Informal organisation helps the group members to attain specific personal objectives.

(h) Informal organisation is the best means of employee communication. It is very fast.

(i) Informal organisation gives psychological satisfaction to the members. It acts as a safety
valve for the emotional problems and frustrations of the workers of the organisation because
they get a platform to express their feelings.

(j) It serves as an agency for social control of human behaviour.

3. Management's Attitude towards Informal Organisation: Formal organisation, no doubt

is an important part of the organisation but it alone is not capable of accomplishing the
organisational objectives. Informal organisation supplements the formal organisation in
achieving the organisational objectives. If handled properly, informal organisation will help
in performing the activities of the organisation very efficiently and effectively. In the words
of Keith Davis, "An informal organisation is a powerful influence upon productivity and job
satisfaction. Both formal and informal systems are necessary for group activity just as two
blades are essential to make a pair of scissors workable". As both formal and informal
organisations are quite essential for the success of any organisation, a manager should not
ignore the informal organisation. He should study thoroughly the working pattern of informal
relationship in the organisation and use the informal organisation for achieving the
organisational objectives.

I. DEFINITION OF POWER

By the term power, we mean the personal capacity of an individual to influence others to do
or not to do an act. It is independent and informal in nature derived from charisma and status.
It is an acquired ability that comes from knowledge and expertise. It is the right to control
other‟s actions, decisions and performances.

Power is not hierarchical, i.e. it can flow in any direction like it can flow from superior to
subordinate (downward) or junior to senior (upward), or between the persons working at the
same level, but different departments of the same organization (horizontal), or between the
persons working at different levels and departments of the same organization (diagonal). In
this way, it is not confined to any boundaries. Moreover, the element of politics is usually
attached to it.

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 II. DEFINITION OF AUTHORITY

Authority is legal and formal right to a person, who can take decisions, give orders and
commands to others to perform a particular task. It is conferred to high officials, to
accomplish organisation‟s objectives. It is hierarchical in nature, it flows downward, i.e.
delegated from superior to the subordinate.

In general, authority is exercised to get things done through others. It is attached to the
position, i.e. any person who gets the position enjoys the authority attached to it, the higher
the position, the higher would be his authority. As the authority lies in the designation, in the
absence of authority, the position offered to the person would be of no use. Moreover, it is
restricted to the organisation only.

The difference between power and authority can be drawn clearly on the following grounds:

1. Power is defined as the ability or potential of an individual to influence others and

control their actions. Authority is the legal and formal right to give orders and
commands, and take decisions.
2. Power is a personal trait, i.e. an acquired ability, whereas authority is a formal right,
that vest in the hands of high officials or management personnel.
3. The major source of power is knowledge and expertise. On the other hand, position
and office determine the authority of a person.
4. Power flows in any direction, i.e. it can be upward, downward, crosswise or diagonal,
lateral. As opposed to authority, that flows only in one direction, i.e. downward (from
superior to subordinate).
5. The power lies in person, in essence, a person acquires it, but authority lies in the
designation, i.e. whoever get the designation, get the authority attached to it.
6. Authority is legitimate whereas the power is not.

WHAT IS CONFLICT MANAGEMENT?

Conflict management is the practice of being able to identify and handle conflicts sensibly,
fairly, and efficiently. It is the process of dealing with (perceived) incompatibilities or
disagreements arising from, for example, diverging opinions, objectives, and needs.
Since conflicts in a business are a natural part of the workplace, it is important that there
are people who understand conflicts and know how to resolve them. This is important in
today's market more than ever.
Everyone is striving to show how valuable they are to the company they work for and at
times, this can lead to disputes with other members of the team.

COORDINATION
Coordination is the function of management which ensures that different departments and
groups work in sync. Therefore, there is unity of action among the employees, groups, and
departments.

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It also brings harmony in carrying out the different tasks and activities to achieve the
organization‟s objectives efficiently. Coordination is an important aspect of any group effort.
When an individual is working, there is no need for coordination.
Therefore, we can say that the coordination function is an orderly arrangement of efforts
providing unity of action in pursuance of a common goal. In an organization, all the departments
must operate a part of a cohesive unit to optimize performance.
Coordination implies synchronization of various efforts of different departments to reduce
conflict. Multiple departments usually perform the work for which an organization exists.
Therefore, synchronization between them is essential. Lacking coordination, departments might
work in different directions or at different timings, creating chaos.

ORGANISATIONAL CHANGE
The term „organisational change‟ implies the creation of imbalances in the existing pattern of
situation. When an organization operates and functions for a long time, an adjustment
between its technical, human and structural set-up is established. It tends to approximate an
equilibrium in relation to its environment. In other words, organisation members evolve a
tentative set of relations with the environment. They have an adjustment with their job,
working conditions, friends and colleagues etc. Change requires individuals to make new
adjustments. Hence the fear of adjustment gives rise to the problem of change and resistance
to change. Individual comes in to danger. On the other hand, groups resist change where their
existence is in danger or a total change in overall work environment is contemplated.
Management of change may be defined as a conscious and concerted initiative by those who
are in-charge of the destiny of the business undertaking or firm to keep a constant and
intelligent watch over the behaviour of uncontrollable forces, to assess their impact and
influence of the controllable forces, and to evolve appropriate strategies and action
programmes to maintain a dynamic equilibrium between the controllable and uncontrollable
forces. The controllable forces are those forces about which sufficient information is
available. Such forces can be managed easily. Uncontrollable forces are those about which
not much is known. These forces exert a powerful influence on the behaviour of controllable
forces and limit the scope of managerial action.
Organizational change means business modification in which a company changes its business
tools, such as policy, strategy, operation, structure, infrastructure, and culture. The most
prevalent reasons for organizational change are technology, globalization, new market
condition, poor performance, and customer demand. The organizational changes enable the
company to cope with the digital era. Therefore, many organizations has embraced
technological changes to adjust to the digital age. Organizational change assists the company
in replacing old systems with new strategies to achieve competitive advantages in the same
marketplace.

INTRODUCTION TO STAFFING

Managing human element and its relationship between different individuals is the most
challenging assignment to the management. It lays stress that the management should make
selection of employees strictly in accordance with the job requirement of the enterprise.

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Staffing is also concerned with the proper training of employees as per the real situations and
requirements of the job. The managerial function of staffing involves manning the
organization structure through proper and effective selection, appraisal and development of
the employees to carry out the daily operational duties and responsibilities.

What is Staffing?

Staffing: Staffing refers to manpower required for the execution of a business plan. Staffing,
as managerial function, involves recruitment, selection, appraisal, remuneration and
development of managerial personnel. The need of staffing arises in the initial period and
also from time to time for replacement and also along with the expansion and diversification
of business activities. Every business unit needs efficient, stable and cooperative staff for the
management of business activities. Manpower is the most important asset of a business unit.
In many organisations, manpower planning and development activities are entrusted to
personnel manager or HRD manager. 'Right man for the right job' is the basic principle in
staffing

According to Kootz & O‟Donell, “Managerial function of staffing involves managing the
organization structure through proper and effective selection, appraisal & development of
personnel to fill the roles designed in the structure”.

Staffing involves:

• Manpower Planning (estimating man power in terms of searching, choose the person and
giving the right place).

• Recruitment, Selection & Placement.

• Orientation, Training & Development.

• Remuneration.

• Performance Appraisal.

• Promotions & Transfer.

Definition of Staffing - According to Theo Haimann, ―Staffing pertains to recruitment,

selection, development and compensation of subordinates.‖

According to McFarland, "Staffing is the function by which managers build an organisation

through the recruitment, selection, and development of individuals as capable employees".

IMPORTANCE OF STAFFING

All of us know that it is the workforce in every organisation that runs the show successfully.
For instance, if you do not have good salesman you cannot sell well even if your product is

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good. Similarly, you may have the best quality raw materials, machines etc. but the quality of
the product is not assured unless you have good workers engaged in the production process.

Therefore staffing, as a function, is very important as it is through this process that we get
right persons at the right time for the organisation and ensure that they remain in the
organisation. The importance of staffing can be described in the following manner:

1. Filling Organisational Position– A basic problem faced by majority of the organisations

is lack of good quality human resources. With an increase in competition for best workforce
the cost of acquiring them has increased manifold. In such situations there is a need for
systematic staffing so that the organisation can fill its various positions with good quality of
personnel.

2. Developing Competencies– Just by getting the right and the skilled people for the job is
not sufficient. It is imperative that the competencies of the personnel are developed over time.
It is a known fact that the rate of skill obsolescence is quite high therefore to meet this regular
updating of skills is necessary.

3. Retaining Personnel– Employee turnover, mostly at the managerial level is quite high.
Therefore apart from acquiring and developing personnel, retaining them in the organisation
is crucial.

The benefits of good staffing are as follows:

(a) It helps in getting right people for the right job at the right time. The function of
staffing enables the manager to find out as to how many workers are required and
with what qualifications and experience.

(b) Staffing contributes to improved organisational productivity. Through proper selection

the organisation gets quality workers, and through proper training the performances level
of the workers can be improved.

(c) It helps in providing job satisfaction to the employees keeping their morale high. With
proper training and development programmes their efficiency improves and they feel
assured of their career advancements.

(d) Staffing maintains harmony in the organisation. Through proper staffing, individuals
are not just recruited and selected but their performance is regularly appraised and
promotions made on merit. For all these, certain rules are made and are duly
communicated to all concerned. This fosters harmony and peace in the organisation.

PROCESS OF STAFFING

After an organization's structural design is in place, it needs people with the right skills,
knowledge, and abilities to fill in that structure. People are an organization's most
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important resource, because people either create or undermine an organization's
reputation for quality in both products and service.

1. Estimating Manpower Requirements

It is making an analysis of work and estimating the manpower requirement to accomplish

the same. The first step of staffing is to estimate the size and structure of the staff. In the
present complex and dynamic business environment, planning for manpower requirement
is the responsibility of the top management.

Features of estimating staff requirements:

1. Presenting inventory of existing number and type of staff employed.

2. Determining the period for which the people are required

3. Ascertaining manpower needs with regard to the number and the type of people
required. It is a comparison of the existing manpower and the required manpower.

4. Activity based manpower planning, taking into consideration the acquisition,

utilization, improvement and preservation of the organizations human assets.

2. Recruitment and selection of staff

It is identifying and attracting capable applicants for employment. It ends with the
submission of applications by the aspirants. Recruitment is an activity of establishing
contact between the employer and the employee. Both the internal and the external
sources of recruitment maybe used to recruit the required staff. In order to select the most
suitable candidate for the job written test, psychological tests and physical tests should be
administered. Candidates should also be interviewed before the final selection. These
tests discover the hidden ability of the candidates, differentiate between intelligent and
non – intelligent candidates and help in the selection of the most suitable candidate.

3. Training and Development of Staff

It is concerned with imparting and developing specific skills for a particular purpose.
According to Jucius, ―The term training is used to indicate processes by which the
aptitude, skills and abilities of employees to perform specific jobs are increased.‖

The employee must have the theoretical and practical knowledge of the work, he is
required to perform. The theoretical knowledge can be gained in the institutions but for
the practical knowledge training is required. Therefore, the training acquaints the
employees with the real situations of the work and helps him in the faultless
accomplishments of the work.

Training is a part of incentives given to the workers in order to develop and grow them
within the concern. Training is generally given according to the nature of activities and
scope of expansion in it. Along with it, the workers are developed by providing them
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extra benefits of in-depth knowledge of their functional areas. Development also includes
giving them key and important jobs as a test or examination in order to analyze their
performances.

4. Promotion and Transfer

A promotion is the appointment of a member to another position within the same

department or elsewhere in the organization which involves duties and responsibilities of
a more complex or demanding nature and is recognized by a higher pay grade and salary.
A transfer is the appointment of a member to another position within the same department
or elsewhere in the organization, involving duties and responsibilities of a comparable
nature and having a similar pay grade and salary. In certain circumstances, the transfer
may be at a lesser pay grade or salary. Employees are promoted to higher ranks on the
basis of merit and seniority. Staffing also involves transfer of employees from one place
to other place according to their ability, competence and experience. It also takes into
consideration the needs and interests of the employees. A promotion is a move up the
organizational ladder whereas job rotation and transfers are lateral moves.

5. Remuneration

It is a kind of compensation provided monetarily to the employees for their work

performances. This is given according to the nature of job- skilled or unskilled, physical
or mental, etc. Remuneration forms an important monetary incentive for the employees.
The management should ensure that the employees are suitably remunerated for the
services rendered by them. Remuneration paid maybe in the form of wages, salaries,
allowances and perks. Wages are normally paid according to time rate of piece rate
system.

6. Orientation of staff

Once screening takes place, the appointed candidates are made familiar to the work units
and work environment through the orientation programmes. Orientation of the selected
employees enables them to adjust themselves to the real situations, work and the
environment of the organization. Here, the employees may be taken round the plant or
office, supplied with the literature containing information, policies and achievements of
the enterprise and maybe shown a power point presentation about the organization and
also shown a video to help them get a feel of the organisation.

7. Performance Evaluation

In order to keep a track of the behaviour, attitudes as well as opinions of the workers
towards their jobs regular assessment is done to evaluate and supervise different work
units in a concern. It is basically concerning to know the development cycle and growth
patterns of the employee in a concern. Also it is a systematic evaluation of personnel by
superiors or others familiar with their performance so as to rank the employees to
ascertain their eligibility for promotions.
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 INTRODUCTION TO HUMAN RESOURCE PLANNING

Human resource planning is important for helping both organizations and employees to
prepare for the future. The basic goal of human resource planning is to predict the future and
based on these predictions, implement programmes to avoid anticipated problems. Very
briefly humans resource planning is the process of examining an organization‟s or
individual‟s future human resource needs for instance, what types of skills will be needed for
jobs of the future compared to future human resource capabilities (such as the types of skilled
employees you already have) and developing human resource policies and practices to
address potential problems for example, implementing training programmes to avoid skill
deficiencies.

What is HRP?

Human Resource Planning is also called as Manpower Planning. It is the process of

evaluating or assessing or monitoring the human resource requirements for each and every
department in the organisation.

 It is all about choosing the right person

 At right place and

 Right time is very important for any organisation. It prepares human resources
inventory with a view to assess present and future needs, availability and possible
shortages in human resource. Thereupon, HR Planning forecast demand and supplies
and identify sources of selection. HR Planning develops strategies both long-term and
short-term, to meet the man-power requirement.

In other words, “HRP is the process by which management determines how the organization
should move from its current man power position to desired manpower position. Through
planning, management strives to have the right time, doing things which result in both the
organization and individual receiving maximum long run benefits”.

To put it in simple terms, it is the process of determining the organisations current manpower
position, so by looking at the current position, you try to decide the future manpower
position.

HRP is also called as manpower planning, personnel planning and employment planning.

Definition of Human Resource Planning

According to Gordon Mc Beath, “HRP is concerned with two things: Planning of manpower
requirements and Planning of Manpower supplies”.

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According to Beach, “HRP is a process of determining and assuming that the organization
will have an adequate number of qualified persons, available at proper times, performing jobs
which meet the needs of the enterprise and which provides satisfaction for the individuals
involved”.

Need of Manpower Planning

Manpower Planning is advantageous to firm in following manner:

(a) Shortages and surpluses can be identified so that quick action can be taken wherever
required.

(b) All the recruitment and selection programs are based on manpower planning.

(c) It also helps to reduce the labor cost as excess staff can be identified and thereby
overstaffing can be avoided.

(d) It also helps to identify the available talents in a concern and accordingly training
programs can be chalked out to develop those talents.

(e) Through manpower planning, human resources can be readily available and they can be
utilized in best manner.

(f) It helps the organization to realize the importance of manpower management which
ultimately helps in the stability of a concern.

HRP is a Four-Phased Process

 The first phase involves the gathering and analysis of data through manpower inventories
and forecasts,

 The second phase consists of establishing manpower objectives and policies and gaining
top management approval of these.

 The third phase involves designing and implementing plans and promotions to enable the
organization to achieve its manpower objectives.

 The fourth phase is concerned with control and evaluation of manpower plans to facilitate
progress in order to benefit both the organization and the individual. The long run view
means that gains may be sacrificed in the short run for the future grounds. The planning
process enables the organization to identify what its manpower needs is and what potential
manpower problems required current action. This leads to more effective and efficient
performance.

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HRP Process

HRP effectively involves forecasting personnel needs, assessing personnel supply and
matching demand – supply factors through personnel related programmes. The HR planning
process is influenced by overall organizational objectives and environment of business.

Environmental Scanning:

It refers to the systematic monitoring of the external forces influencing the organization. The
following forces are essential for pertinent HRP.

 Economic factors, including general and regional conditions.

 Technological changes

 Demographic changes including age, composition and literacy,

 Political and legislative issues, including laws and administrative rulings

 Social concerns, including child care, educational facilities and priorities.

By scanning the environment for changes that will affect an organization, managers can
anticipate their impact and make adjustments early.

Organizational Objectives and Policies:

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HR plan is usually derived from the organizational objectives. Specific requirements in terms
of number and characteristics of employees should be derived from organizational objectives.

Once the organizational objectives are specified, communicated and understood by all
concerned, the HR department must specify its objective with regard to HR utilization in the
organization.

HR Demand Forecast:

Demand forecasting is the process of estimating the future quantity and quality of people
required to meet the future needs of the organization. Annual budget and long-term corporate
plan when translated into activity into activity form the basis for HR forecast.

For eg: in the case of a manufacturing company, the sales budget will form the basis for
production plan giving the number and type of products to be produced in each period. This
will form the basis upon which the organization will decide the number of hours to be worked
by each skilled category of workers. Once the number hours required is available
organization can determine the quality and quantity of personnel required for the task.

Demand forecasting is influenced by both internal factors and external factors: external
factors include competition, economic climate, laws and regulatory bodies, changes in
technology and social factors whereas internal factors are budget constraints, production
level, new products and services, organizational structure and employee separations. Demand
forecasting is essential because it helps the organization to 1. Quantify the jobs, necessary for
producing a given number of goods, 2. To determine the nature of staff mix required in the
future, 3. To assess appropriate levels in different parts of organization so as to avoid
unnecessary costs to the organization, 4. To prevent shortages of personnel where and when,
they are needed by the organization. 5. To monitor compliances with legal requirements with
regard to reservation of jobs.

Techniques like managerial judgment, ratio- trend analysis, regression analysis, work study
techniques, Delphi techniques are some of the major methods used by the organization for
demand forecasting.

HR Supply Forecast:

Supply forecast determines whether the HR department will be able to procure the required
number of workers. Supply forecast measures the number of people likely to be available
from within and outside an organization, after making allowance for absenteeism, internal
movements and promotions, wastage and changes in hours, and other conditions of work.

Supply forecast is required because it is needed as it 1. Helps to quantify the number of

people and positions expected to be available in future to help the organization realize its
plans and meet its objectives 2. Helps to clarify the staff mixes that will arise in future 3. It

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assesses existing staffing in different parts of the organization. 4. It will enable the
organization to prevent shortage of people where and when they are most needed. 5. It also
helps to monitor future compliance with legal requirements of job reservations.

Supply analysis covers the existing human resources, internal sources of supply and external
sources of supply.

HR Programming:

Once an organization‟s personnel demand and supply are forecasted the demand and supply
need to be balanced in order that the vacancies can be filled by the right employees at the
right time.

HR Plan Implementation:

HR implementation requires converting an HR plan into action. A series of action are

initiated as a part of HR plan implementation. Programmes such as recruitment, selection and
placement, training and development, retraining and redeployment, retention plan, succession
plan etc when clubbed together form the implementation part of the HR plan.

Control and Evaluation:

Control and evaluation represent the final phase of the HRP process. All HR plan include
budgets, targets and standards. The achievement of the organization will be evaluated and
monitored against the plan. During this final phase organization will be evaluating on the
number of people employed against the established (both those who are in the post and those
who are in pipe line) and on the number recruited against the recruitment targets. Evaluation
is also done with respect to employment cost against the budget and wastage accrued so that
corrective action can be taken in future.

HRP, Job Analysis - Job Specification & Job Description

Let‟s understand on different terminologies:

Job: A job may be defined as a “collection or aggregation of tasks, duties and responsibilities
which as a whole, are regarded as a regular assignment to individual employees,” and which
is different from other assignments, In other words, when the total work to be done is divided
and grouped into packages, we call it a “job.” Each job has a definite title based upon
standardized trade specifications within a job; two or more grades may be identified, where
the work assignment may be graded according to skill, the difficulty of doing them, or the
quality of workmanship. Thus, it may be noted that a position is a “collection o tasks and
responsibilities regularly assigned to one person;” while a job is a “group of position, which
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involve essentially the same duties, responsibilities, skill and knowledge.” A position consists
of a particular set of duties assigned to an individual.

Decenzo and P. Robbins define other terms as follows:

Task: It is a distinct work activity carried out for a distinct purpose.

Duty: It is a number of tasks.

Position: It refers to one or more duties performed by one person in an organization, There
are at least as many positions as there are workers in the organization; vacancies may create
more positions than employees.

Job: It is a type of position within the organization.

Job Family: It is group of two or more jobs that either call for similar worker characteristics
or contain parallel work tasks as determined by job analysis. Occupation: It is a group of
similar jobs found across organizations.

Career: It represents a sequence of positions, jobs, or occupations that a person has over his
working life.

Job Analysis Defined:

Developing an organizational structure, results in jobs which have to be staffed. Job analysis
is the procedure through which you determine the duties and nature of the jobs and the kinds
of people (in terms of skills and experience) who should be hired for them.‟ It provides you
with data on job requirements, which are then used for developing job descriptions (what the
job entails) and job specifications (what kind of people to hire for the job). Some of the
definitions of job analysis ate given as follows, to understand the meaning of the term more
clearly:

Flippo has offered a more comprehensive definition of job analysis as, “Job analysis is the
process of studying and collecting information relating to the operations and responsibilities
of a specific job. The immediate products of the analysis are job descriptions and job
specifications” Thus, job analysis involves the process of identifying the nature of a job (job
description) and the qualities of the likely job holder (job specification).

Job Analysis is further divided into Job Description and Job Specification

 Job Description

Job description is the immediate product of job analysis process; the data collected through
job analysis provides a basis for job description and job specification.

Job Description: is a written record of the duties, responsibilities and requirements of a

particular job. It is concerned with the job itself and not with the job holders. It is a statement
describing the job in such terms as its title, location, duties, working conditions and hazards.
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Flippo has Defined Job Description as, “A job description is an organized, factual statement
of duties and responsibilities of a specific job. In brief, it should tell what is to be done. How
it is done why. It is a standard of function, in that defines the appropriate and authorized
content of a job.

Writing Job Description

A Job description is a written statement of what the job holder actually does, how he or she
does it, and under what conditions the job is performed. This information is in turn used to
write a job specification. This lists the knowledge, abilities, and skills needed to perform the
job satisfactorily. While there is no standard format you must use in writing a job description,
most descriptions contain at least sections on:

1. Job Identification: It includes the job title, alterative title, department, division, and plant
and code number of the job. The job title identifies and designates the job properly, the
department, division, etc., indicate the name of the department where it is situated – whether
it is the maintenance department, mechanical shop etc. Location gives the name of the place.
This portion of job description gives answer to two important questions: to what higher level
job is this job accountable. And who is supervised directly?

2. Job Summary: Job summary describes the contents of the jobs in terms of activities or
tasks performed. Job summary should clear the nature of the job. Primary, secondary and
other duties to be performed on the job should clearly be indicated separately.

3. Duties and Responsibilities: This is the most important phase of job description and should
be prepared very carefully. It describes the duties to be performed along with frequency of
each major duty. Responsibilities concerning custody of money, supervision and training of
staff etc. are also described in this part.

Example of a Job Description

Job Title: Record Clerk Job No. 011

Supervisor: Record Supervisor Job Grand –III
Supervises: None Date: xx xx xxxx
Job Summary: Originate, process, and maintain comprehensive records;
implement required controls; collect and summarize data as requested.
Job Duties and Responsibilities :
 Review a variety of documents, listings, summarizes, etc, for completeness
and accuracy.
 Check records against other current sources such as reports or summaries;
investigate differences and take required action to ensure that records are
accurate and up to date; compile and summarize data report format as
required.
 Implement controls or obtaining, preserving, and supplying a variety of
information. Prepare simple requisitions, forms, and other routine
memoranda.
 Provide functional guidance to lower-level personnel as required.
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 Working Conditions: Normal working conditions. But visits sites on
average twice a week. Eight hours per day.
Relationships:
 With equivalent officers in other departments.
 Maintains formal and social contacts with local officials.
Job Characteristics: Skilled operation of computer, calculating machine, or
key punch machine is not necessarily a requirement of this job.
The above information is correct and approved by:
(Signed) (Signed)
Job Analyst In charge Manager

4. Supervision: Under it is given number of persons to be supervised along with their job
titles, and the extent of supervision involved –general, intermediate or close supervision.

5. Relation to Other Jobs: It describes the vertical and horizontal relationships f work flow. It
also indicates to whom the jobholder will report and who will report to him. It gives an idea
of channels of promotion.

6. Machine, tools and equipment define each major type or trade name of the machines and
tools and the raw materials used.

7. Working Conditions: The working environment in terms of heat, light, noise, dust and
fumes etc., the job hazards and possibility of their occurrence and working conditions should
also be described. It will be helpful in job evaluation.

8. Social Environment: It specifies the social conditions under which the work will be
performed. In this part the size of work group, interpersonal interactions required to perform
the job and development facilities are mentioned.

 Job Specification

The job specification states the minimum acceptable qualifications that the incumbent must
possess to perform the job successfully. Based on the information acquired through job
analysis, the job specification identifies the knowledge, skills, and abilities needed to do the
job effectively. Individuals possessing the personal characteristics identified in the job
specification should perform the job more effectively than individuals lacking these personal
characteristics. The job specification, therefore, is a important tool in the selection process,
for it keeps the selector‟s attention on the list of qualifications necessary for an incumbent to
perform the job and assists in determining whether candidates are qualified.

According to Dale Yoder, “The job specification, as such a summary properly described is
thus a specialized job description, emphasizing personnel requirement and designed
especially to facilitate selection and placement.”

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A Job Specification should include:

(i) Physical characteristics, which include health, strength, endurance, age, height,
weight, vision, voice, eye, hand and foot co-ordination, motor co-ordination, and
colour discrimination.

(ii) Psychological and social characteristics such as emotional stability, flexibility,

decision making ability, analytical view, mental ability, pleasing manners,
initiative, conversational ability etc.

(iii)Mental Characteristics such as general intelligence, memory, judgement, ability to

concentrate, foresight etc.

(iv) Personal Characteristics such as sex, education, family background, job experience,
hobbies, extracurricular activities etc.

All these characteristics must be classified into three categories:

 Essential attributes which a person must possess.

 Desirable attributes which a person ought to possess.

 Contra indicators which will become a handicap to successful job performance.

RECRUITMENT - DEFINITION AND MEANING & ITS POLICY

Introduction

Recruiting is the discovering of potential candidates for actual or anticipated organizational

vacancies. Or, from another perspective, it is a linking activity-bringing together those with
jobs to fill and those seeking jobs.

Organisations have to recruit people with requisite skills, qualifications and experience, if
they have to survive and flourish in a highly competitive environment. While doing so, they
have to be sensitive to economic, social, political and legal factors within a country. To be
effective, they need to tap all available sources of supply, both internal and external. Internal
promotions and transfers boost the morale of people who have served the firm loyally for a
number of years. External sources, too, need to be explored regularly to bring qualified
people with lots of ideas into a firm.

What is Recruitment: Meaning and Definition?

Recruitment forms a step in the process which continues with selection and ceases with the
placement of the candidate. It is the next step in the procurement function, the first being the
manpower planning. Recruiting makes it possible to acquire the number and types of people

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necessary to ensure the continued operation of the organisation. Recruiting is the discovering
of potential applicants for actual or anticipated organisational vacancies.

Recruitment is the process of locating and encouraging potential applicants to apply for
existing or anticipated job openings. It is actually a linking function, joining together those
with jobs to fill and those seeking jobs. Recruitment, logically, aims at (i) attracting a large
number of qualified applicants who are ready to take up the job if it's offered and (ii) offering
enough information for unqualified persons to self-select themselves out (for example, the
recruitment ad of a foreign bank may invite applications from chartered accountants who
have cleared the CA examination in the first attempt only)

Recruitment of staff

It is identifying and attracting capable applicants for employment. It ends with the submission
of applications by the aspirants. Recruitment is an activity of establishing contact between the
employer and the employee. Both the internal and the external sources of recruitment maybe
used to recruit the required staff. In order to select the most suitable candidate for the job
written test, psychological tests and physical tests should be administered. Candidates should
also be interviewed before the final selection. These tests discover the hidden ability of the
candidates, differentiate between intelligent and non – intelligent candidates and help in the
selection of the most suitable candidate.

Definition

According to Edwin B. Flippo, “Recruitment is the process of searching for prospective

employees and stimulating them to apply for jobs in the organisation.”

Definition mean, it is the Process of attracting individuals on a timely basis, in sufficient

numbers, with appropriate qualifications, and encouraging them to apply for jobs with an
organization

Refer figure - Recruitment to Human Resource Acquisition Process

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Dales S. Beach writes, “Recruitment is the development and maintenance of adequate
manpower resources. It involves the creation of a pool of available labour upon whom the
organisation can depend when it needs additional employees.” Thus, recruitment process is
concerned with the identification of possible sources of human resource supply and tapping
those sources. In the total process of acquiring and placing human resources in the
organisation, recruitment falls in between different sub-processes which will be discussed
more in detail in next session.

According to Scott, Clothier and Spriegel the need for recruitment arises out of the following
situations:

 Vacancies created due to expansion, diversification, and growth of business.

 An increase in the competitive advantage of certain concerns, enabling them to get more of
the available business than formerly.

 An increase in business arising from an upswing during the recovery period of a business
cycle.

 Vacancies created due to transfer, promotion, retirement, termination, permanent disability

or death.

 The normal population growth, which requires increased goods and services to meet the
needs of the people.

 A rising standard of living, which requires more of the same goods and services as well as
the creation of new wants to be satisfied.

Recruitment Policy

As Yoder et al observe recruitment policy spells out the objectives of the recruitment and
provides a framework for implementations of the recruitment programme in the form of
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procedures. It may involve a commitment to broad principles such as filling vacancies with
the best qualified individuals. The recruitment policy may embrace several issues such as the
extent of promotion from within, attitudes of enterprise in recruiting old, handicapped, and
minor individuals, minority group members, part-time employees and relatives of present
employees. In addition, the recruitment policy may also involve the organisation system to be
developed for implementing the recruitment programme and procedures to be employed.
Explicitly, an organisational system is a function of the size of an enterprise. In smaller
enterprises, there may be merely informal recruiting procedures and the line official may be
responsible to handle this function along with their usual responsibilities. On the other hand,
in larger organisations, there is usually a staff unit attached with personnel or an industrial
relations department designated as employment or recruitment office. This specialisation of
recruitment enables staff personnel to become highly skilled in recruitment techniques and
their evaluation. However, recruitment remains the line responsibility as far as the personnel
requisition forms are originated by the line personnel, who have also the final word in the
acceptance or rejection of a particular applicant. Despite this, the staff personnel have
adequate freedom in respect of sources of manpower to be tapped and the procedure to be
followed for this purpose.

Recruitment policy covers the following areas:

 To prescribe the degree of emphasis. Inside the organisation or outside the

organisation.

 To provide the weightage that would be given to certain categories of people such as local
population, physically-handicapped personnel, personnel from scheduled castes/tribes and
other backward classes.

 To prescribe whether the recruitment would be centralised or decentralised at unit levels.

 To specify the degree of flexibility with regard to age, qualifications, compensation

structure and other service conditions.

 To prescribe the personnel who would be involved in recruitment process and the role of
human resource department in this regard.

 To specify the budget for meeting the expenditures incurred in completing the recruitment
process.

According to Yoder, “the recruitment policy is concerned with quantity and qualifications of
manpower.” It establishes broad guidelines for the staffing process.

Pre-requisites of a Good Recruitment Policy:

The recruitment policy of an organisation must satisfy the following conditions:

 It should be in conformity with its general personnel policies;

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 It should be flexible enough to meet the changing needs of an organisation;

 It should be so designed as to ensure employment opportunities for its employees on a long-

term basis so that the goals of the organisation should be achievable; and it should develop
the potentialities of employees;

 It should match the qualities of employees with the requirements of the work for which they
are employed; and

 It should highlight the necessity of establishing job analysis.

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