MODULE 3

ORGANIZING AND STAFFING

ORGANIZING
MEANING
Organization is the detailed arrangement of work and working conditions
in order to perform the assigned activities in an effective manner.
Organization can be compared to a human body. The human body consists
of hands, feet, eyes, ears, nose, fingers, mouth, etc. These parts are
performing their work independently and at the same time, one part
cannot be a substitute to another. The same principles can be identified in
the organization also. The organization consists of different departments.
Each department performs its work independently and cannot be a
substitute to another.

DEFINITION
Haney, "Organization is a harmonious adjustment of specialized parts for
the accomplishment of some common purpose or purposes."
Mc Farland, "An identified group of people contributing their efforts
towards the attainment of goals is called an organization."

NATURE AND PURPOSE

1. Division of labor: The total work can be divided into many parts
for effective performance of the work. Each part of work may be
completed by one person or a group of peons. But, all the parts of
the work are done with the aim to achieve the main objective the
organization. The work is assigned to a person who is specialized in
that work. If there is a proper division of labor, no person will be
allowed to do anything according to his own way unless and
otherwise he is not well equipped. The division of labor results in the
creation of specialized persons because a person does the same
work again and again. No waste of time, energy and resources are
some of the advantages of division of labor. In addition to this, the
division of labor results in the increase of quality output and
quantity of product without any additional capital.

2. Co-ordination: Different persons are assigned different works in

one organization. But all the works are performed to achieve the
objectives. It implies that there is a need of co-ordination among the
workers in an organization. Each department or section of the
 organization should have relationship with each other, to get mutual
co-operation.

3. Objectives: The objectives of the organization should be defined

clearly. The objectives cannot be achieved without the existence of
a good organizational structure. In tum, the organization cannot
exist without objectives for a long period.

4. Authority-responsibility structure: An organization means an

arrangement of position of executives by adopting a rank system. In
other words, a subordinate has one boss and a superior has control
over the subordinate specifically. The position of each of the
executives is defined about the extent of authority and responsibility
vested in him to discharge the duties.

5. Communication: Every organization has its own communication

system and the methods. The success of management depends
upon the effective system of communication The reason is that each
person, working in an organization should know the techniques of
communication and the importance of communication. The channels
of communication may be divided into formal, informal, downward,
and upward or horizontal

PRINCIPLE OF ORGANIZING
1. Principle of Objective: The enterprise should set up certain aims for
the achievement of which various departments should work. A common
goal so devised for the business as a whole and the organization is set up
to achieve that goal. In the absence of a common aim, various
departments will set up their own goals and there is a possibility of
conflicting objectives for different departments. So there must be an
objective for the organization.
2. Principle of Specialization: The organization should be set up in
such a way that every individual should be assigned a duty according to
his skill and qualification. The person should continue the same work so
that he specializes in his work. This helps in increasing production in the
concern.
3. Principles of Co-ordination: The co-ordination of different activities
is an important principle of the organization. There should be some
agency to co-ordinate the activities of various departments. In the
absence of co-ordination there is a possibility of setting up different goals
by different departments. The aim of the concern can be achieved only if
proper co-ordination is done for different activities.
4. Principle of Authority and Responsibility: The authority flows
downward in the line. Every individual is given authority to get the work
done. Though authority can be delegated but responsibility lies with the
man who has been given the work. If a superior delegates his authority to
his subordinate, the superior is not absolved of his responsibility, though
the subordinate becomes liable to his superior. The responsibility cannot
be delegated under any circumstances.
5. Principle of Definition: The scope of authority and responsibility
should be clearly defined. Every person should know his work with
definiteness. If the duties are not clearly assigned, then it will not be
possible to fix responsibility also. Everybody’s responsibility will become
nobody’s responsibility. The relationship between different departments
should also be clearly defined to make the work efficient and smooth.
6. Span of Control: Span of control means how many subordinates can
be supervised by a supervisor. The number of subordinates should be
such that the supervisor should be able to control their work effectively.
Moreover, the work to be supervised should be of the same nature. If the
span of control is disproportionate, it is bound to affect the efficiency of
the workers because of slow communication with the supervisors.
7. Principle of Balance: The principle means that assignment of work
should be such that every person should be given only that much work
which he can perform well. Some person is over worked and the other is
under-worked, then the work will suffer in both the situations. The work
should be divided in such a way that everybody should be able to give his
maximum.
8. Principle of Continuity: The organization should be amendable
according to the changing situations. Everyday there are changes in
methods of production and marketing systems. The organization should
be dynamic and not static. There should always be a possibility of making
necessary adjustments.
9. Principle of Uniformity: The organization should provide for the
distribution of work in such a manner that the uniformity is maintained.
Each officer should be in-charge of his respective area to avoid dual
subordination and conflicts.
10. Principle of Unity of Command: There should be a unity of
command in the organization. A person should be answerable to one boss
only. If a person is under the control of more than one person then there is
a like-hood of confusion and conflict. He gets contradictory orders from
different superiors. This principle creates a sense of responsibility to one
person. The command should be from top to bottom for making the
organization sound and clear. It also leads to consistency in directing,
coordinating and controlling.
11. Principle of Exception: This principle states that top management
should interfere only when something goes wrong. If the things are done
as per plans then there is no need for the interference of top
management. The management should leave routine things to be
supervised by lower cadres. It is only the exceptional situations when
attention of top management is drawn. This principle relieves top
management of many botherations and routine things. Principle of
exception allows top management to concentrate on planning and policy
formulation. Important time of management is not wasted on avoidable
supervision.
12. Principle of Simplicity:
The organizational structure should be simple so that it is easily
understood by each and every person. The authority, responsibility and
position of every person should be made clear so that there is no
confusion about these things. A complex organizational structure will
create doubts and conflicts among persons. There may also be over-
lapping’s and duplication of efforts which may otherwise be avoided. It
helps in smooth running of the organization.
13. Principle of Efficiency:
The organization should be able to achieve enterprise objectives at a
minimum cost. The standards of costs and revenue are pre-determined
and performance should be according to these goals. The organization
should also enable the attainment of job satisfaction to various
employees.
14. Scalar Principle:
This principle refers to the vertical placement of supervisors starting from
top and going to the lower level. The scalar chain is a pre-requisite for
effective and efficient organization.

ORGANIZATIONAL STRUCTURE TYPES

MEANING
Organization structure is the pattern of organizational hierarchy based on
authority responsibility relationship.
DEFINITION
According to Lounsbury Fish, “Organization Structure is more than a chart.
It is mechanism through which management directs co-ordinates and
controls the business. It is the foundation of management.”
TYPES ORGANIZATIONAL STRUCTURE
Functional Structure
Four types of common organizational structures are implemented in the
real world. The first and most common is a functional structure. This is
also referred to as a bureaucratic organizational structure and breaks up a
company based on the specialization of its workforce. Most small-to-
medium-sized businesses implement a functional structure. Dividing the
firm into departments consisting of marketing, sales, and operations is the
act of using a bureaucratic organizational structure.

Divisional or Multidivisional Structure

The second type is common among large companies with many business
units. Called the divisional or multidivisional (M-Form) structure, a
company that uses this method structures its leadership team based on
the products, projects, or subsidiaries they operate. A good example of
this structure is Johnson & Johnson. With thousands of products and lines
of business, the company structures itself so each business unit operates
as its own company with its own president.

Divisions may also be designated geographically in addition to

specialization. For instance, a global corporation may have a North
American Division and a European Division.

Team-Based
Like divisional or functional structures, team-based organizations
segregate into close-knit teams of employees that serve goals and
functions, but where each team is a unit that contains both leaders and
workers.

Flat (Flatarchy) Structure

Flatarchy, also known as a horizontal structure, is relatively newer, and is
used among many startups. As the name alludes, it flattens the hierarchy
and chain of command and gives its employees a lot of autonomy.
Companies that use this type of structure have a high speed of
implementation.
Matrix Structure
Firms can also have a matrix structure. It is also the most confusing and
the least used. This structure matrixes employees across different
superiors, divisions, or departments. An employee working for a matrixed
company, for example, may have duties in both sales and customer
service.

Circular Structure
Circular structures are hierarchical, but they are said to be circular as it
places higher-level employees and managers at the center of the
organization with concentric rings expanding outward, which contain
lower-level employees and staff. This way of organizing is intended to
encourage open communication and collaboration among the different
ranks.

Network Structure
The network structure organizes contractors and third-party vendors to
carry out certain key functions. It features a relatively small headquarters
with geographically-dispersed satellite offices, along with key functions
outsourced to other firms and consultants.

Delegation:
In management, delegation is the process of assigning tasks and
responsibilities, along with the corresponding authority, to subordinates to
be completed on behalf of the manager. It's not just about offloading
work, but also about empowering individuals and fostering their
development within the organization.
Principles of Delegation
To make delegation of authority effective, managers need to follow certain
principles. These are some principles of delegation;
1. Functional Definition: Before delegating authority, managers
should clearly define the tasks and responsibilities of subordinates.
This means specifying what needs to be achieved, the activities
involved, and how it connects to other roles in the organization.
2. Delegation by Results Expected: Authority should be delegated
based on the desired results. Managers should decide what
outcomes they expect from subordinates and communicate those
 expectations. This helps subordinates understand what they need to
achieve and how their performance will be measured.
3. Balance of Authority and Responsibility: It's important to have
a fair balance between authority and responsibility given to
someone. They should have the necessary authority to carry out
their responsibilities effectively.
4. Clear Accountability: Each person should have complete
responsibility for their assigned tasks. They cannot pass on their
responsibilities to others.
5. Single Chain of Command: Everyone should report to and be
accountable to a single superior. This avoids confusion and conflicts
that can arise when multiple people have authority over the same
tasks.
6. Clearly Defined Authority Limits: Each person should have clear
boundaries for their authority. This prevents overlapping of authority
and allows individuals to take initiative within their designated
areas.
7. Decision-Making at Appropriate Levels: Managers at each level
should make decisions within their authority. They shouldn't
unnecessarily pass decisions to higher levels when they have the
necessary authority. Only matters beyond their authority should be
escalated.

Difficulties Faced by Delegation of Authority:

There may arise certain difficulties in the process of delegation. The
difficulties may be due to the attitude of either superiors or subordinates
or both. There may be certain defects in organizational structure which
hamper proper delegation of authority.
Some of the difficulties involved in delegation are as such:
1. Over Confidence of Superior:
The feeling in a superior that only he can do certain work effectively than
others is the main difficulty in delegation. When a manager is of the
opinion that his subordinates will not be able to make proper decisions
then he will concentrate all powers with him and will not like to delegate
his authority. This may not be due to the incompetence of subordinates
but due to the over- confidence of a superior.
2. Lack of Confidence in Subordinate:
The superior may be of the view that subordinates are not competent to
carry out certain things of their own. He may lack confidence in his
subordinates. Under these (Circumstances superior will hesitate to
delegate authority.
3. Lack of Ability in Superior:
A superior may lack the ability to delegate authority to subordinates. The
manager may not be able to identify the areas where delegation is
required. He may not even be able to chalk out the proper process of
delegation. The lack of competence on the part of superior restricts the
delegation of authority.
4. Lack of Proper Controls:
There may not be proper controls in the organization which help the
manager to keep in touch with performance of subordinates. When certain
controls like budgets, standard costs etc., are there then manager can
exercise adequate control over the performance of his subordinates. In the
absence of such techniques he will not be able to judge the performance
of his subordinates. Since he will not be able to exercise control he will not
like to delegate authority.
5. Lack of Proper Temperament of Superior:
The chief executive may be over-cautious or conservative by nature. He
will not like to take the risk of delegating authority. His fear will always be
that something may not go wrong. The executives with this type of
temperament will hesitate to delegate authority. An element of risk cannot
altogether be ruled out but certain risk will have to be taken. The
subordinates will learn only when given a chance to take independent
decisions. A lack of proper temperament of superior may also act as a
barrier in delegation.
6. Inability of Subordinates:
There may also be shyness on the part of subordinates in assuming
additional responsibility. They may avoid botheration accruing from
delegation of authority. The fear of committing mistakes or lack of
confidence on the part of subordinates may also act as a barrier in
delegation of authority.
Importance of Delegation:
Delegation is a universally accepted principle. It has been practiced since
time immemorial and in every field. Delegation is necessary not only for a
business undertaking but also for running a government. In government,
legislative bodies delegate their powers to Council of Ministers who in turn
delegate to officers and so on. Delegation is essential even for running a
family because head of the family will have to get the help of various
members for performing various tasks.
1. Relieving Top Executives:
Top executives cannot perform and supervise each and every work.
Moreover they are required to undertake important tasks of planning and
controlling. Delegation helps executives in delegating their work to
subordinate officers.
2. Improved Functioning:
In the absence of delegation some persons may be burdened with more
tasks while others may not have sufficient work to do. Delegation helps in
rationalizing the functioning of an organization. Work is divided among
various persons in such a way that it is done in an efficient way. Nobody is
unduly burdened and no work is left unattended.
3. Use of Specialists:
Delegation enables the use of specialists for taking up different functions.
A production manager will be assigned the task of production, a sales
manager will look after sales department, a lawyer will look after legal
matters and so on. The use of specialists for different functions will
improve the quality of work.
4. Helps in Employee Development:
When subordinates are given independent assignments then they will be
able to use their initiative and experience. This will also give them
confidence in taking up further responsibilities. Without delegation,
subordinates will not get a chance to try their knowledge. Delegation of
power is the best way of developing subordinates and preparing them for
taking up more responsibilities in future.
5. Helps in Expansion and Diversification:
The expansion and diversification of an enterprise needs the services of
more and more persons. The assignment of various tasks to subordinates
will prepare them for undertaking new assignments. If subordinates are
not assigned important works earlier then it will be dangerous to give
them independent tasks straight way. Delegation is very useful for
undertaking expansion and diversification plans.

CENTRALIZATION & DECENTRALIZATION

BASIS FOR
CENTRALIZATION DECENTRALIZATION
COMPARISON
Meaning The retention of powers and The dissemination of authority,
authority with respect to responsibility, and
planning and decisions, with accountability to the various
the top management, is management levels, is known
known as Centralization. as Decentralization.
 BASIS FOR
CENTRALIZATION DECENTRALIZATION
COMPARISON
Involves Systematic and consistent Systematic dispersal of
reservation of authority. authority.
Communication Vertical Open and Free
Flow
Decision Making Slow Comparatively faster
Advantage Proper coordination and Sharing of burden and
Leadership responsibility
Power of Lies with the top Multiple persons have the
decision making management. power of decision making.
Implemented Inadequate control over the Considerable control over the
when organization organization
Best suited for Small sized organization Large sized organization

DEPARTMENTATION
‘Departmentation’ or ‘Departmentalisation’ is the process of grouping the
activities of an enterprise into several units for the purpose of
administration at all levels. The administrative units so created may be
designated as departments, divisions, units, branches, sections, etc.
The process of organising consists of dividing and grouping of the works to
be done in an enterprise and assigning different duties and responsibilities
to different people. Dividing the work naturally means the identification of
individual activities which must be undertaken for the attainment of the
organisational objectives. But once the various activities have been
identified, it is necessary to group them together on some logical basis so
that a team can be organised.
Departmentation can provide a necessary degree of specialisation of
executive activity for efficient performance. It can simplify the tasks of
management within a workable span. It also provides a basis on which the
top managers can co-ordinate and control the activities of the
departmental units.
TYPES OF DEPARTMENTATION:
There are several bases of Departmentation. The more commonly used
bases are—function, product, territory, process, customer, time etc. These
are explained below:
(A) Departmentation by Functions: The enterprise may be divided into
departments on the basis of functions like production, purchasing, sales,
financing, personnel etc
(B) Departmentation by Products: In product departmentation, every
major product is organised as a separate department. Each department
looks after the production, sales and financing of one product. Product
departmentation is useful when the expansion, diversification,
manufacturing and marketing characteristics of each product are primarily
significant.
(C) Departmentation by Territory: Territorial or geographical
departmentation is especially useful to large-scale enterprises whose
activities are widely dispersed. Banks, insurance companies, transport
companies, distribution agencies etc. are some examples of such
enterprises, where all the activities of a given area of operations are
grouped into zones, branches, divisions etc.
(D) Departmentation by Customers: In such method of
departmentation, the activities are grouped according to the type of
customers. For example, a large cloth store may be divided into
wholesale, retail, and export divisions. This type of departmentation is
useful for the enterprises which sell a product or service to a number of
clearly defined customer groups. For instance, a large readymade
garment store may have a separate department each for men, women,
and children. A bank may have separate loan departments for large-scale
and small- scale businessmen.
(E) Departmentation by Process or Equipment: In such type or
departmentation the activities are grouped on the basis of production
processes involved or equipment used. This is generally used in
manufacturing and distribution enterprises and at lower levels of organi-
sation. For instance, a textile mill may be organised into ginning, spinning,
weaving, dyeing and finishing departments. Similarly, a printing press
may have composing, proof reading, printing and binding departments.
Such departmentation may also be employed in engineering and oil
industries.

COMMITTEE
MEANING:
Several persons may come together to take a decision, decide a course of
action, advise line officers on some matters, it is a committee form of
organization. It is a method of collective thinking, corporate judgment and
common decision. A committee may be assigned some managerial
functions or some advisory or exploratory service may be expected from
it. A committee is not a separated type of organization as such. But it is a
method of attaching persons or groups to line departments for advice and
guidance in business planning and execution. A group of competent and
interested persons pool their thoughts for facilitating decision making
process. Sometimes there is a need to get opinion of other persons for
taking important decisions. The thinking of varied persons is pooled
together through deliberations and discussions and common decisions are
reached. Because of collective information and analysis, committees are
more likely to come up with solutions to complex problems. With the
growth of organizations the need for committee is more.
TYPES OF COMMITTEES:
Different committees may be formed with different ideas and purposes.
Some committees may be only advisory while some may perform
managerial functions. There may be following types of committees:
1. Formal and Informal Committees: If a committee is formed as a
part of organisation structure and is delegated some duties and authority,
it is a formal committee. An informal committee may be formed to tackle
some problem. A manager may call some experts to help him in analyzing
a problem and suggesting a suitable solution. The chief executive may call
a meeting of departmental heads and some experts to find out a solution
to some problem. In both the cases it is a case of an informal committee.
2. Advisory Committees: These are the committees to advice line
heads on certain issues. Line officers may refer some problems or issues
to a committee for advice. The committee will collect information about
the problem and recommend solution for the same. The line officers have
the powers to accept, modify or reject the suggestions of advisory
committees. These committees have no managerial powers and cannot
exert their views on the line executives.
3. Line Committees: There may be committees with managerial powers.
Instead of giving a work to one person it may be assigned to a number of
executives. The committees having administrative powers are called line
or plural committees. Line committees help in planning company policies
and programmes and organizing efforts at fulfillment of these plans, etc.
These committees also direct and control the activities of employees for
achieving organisational goals.

SPAN OF CONTROL MEANING

Depending upon the complexity of organizational activities and
relationships amongst superiors and subordinates, it becomes important
the superiors manage an optimum number of subordinates that result in
optimum organizational output. All the subordinates cannot be managed
by one superior. There must be a limit on the number of subordinates who
can be effectively managed by one superior.
The number of subordinates that a superior can effectively supervise is
known as span of management or span of control. In the 19th and middle
of 20th century, management writers determined 5 or 6 as the optimum
number that a manager could effectively manage at the upper level.
According to Nicholas Henry: “Span of control means that a manager can
properly control only a limited number of subordinates, after a certain
number is exceeded, communication of commands grows increasingly
garbed and control becomes increasingly ineffective and loose”

FACTORS AFFECTING SPAN OF CONTROL

1. The Capacity and Ability of the Executive: The characteristics and
abilities such as leadership, administrative capabilities, ability to
communicate, to Judge, to listen, to guide and inspire, physical vigour etc.
differ from person to person. A person having better abilities can manage
effectively a large number of subordinates as compared to the one who
has lesser capabilities.

2. Competence and Training of Subordinates: Subordinates who are

skilled, efficient, knowledgeable, trained and competent require less
supervision, and therefore, the supervisor may have a wider span in such
cases as compared to inexperienced and untrained subordinates who
require greater supervision.

3. Nature of Work: Nature and importance of work to be supervised is

another factor that influences the span of supervision. The work involving
routine, repetitive, unskilled and standardized operations will not call
much attention and time on the part of the supervisor. As such, the
supervisors at the lower levels of organization can supervise the work of a
large number of subordinates. On the other hand, at higher levels of
management, the work involves complex and a variety of Jobs and as
such the number of subordinates that can be effectively managed should
be limited to a lesser number.

4. Time Available for Supervision: The capacity of a person to

supervise and control a large number of persons is also limited on account
of time available at his disposal to supervise them. The span of control
would be generally narrow at the higher levels of management because
top managers have to spend their major time on planning, organizing,
directing and controlling and the time available at their disposal for
supervision will be lesser. At lower levels of management, this span would
obliviously be wide because they have to devote lesser time on such other
activities.
5. Degree of Decentralization and Extent of Delegation: If a
manager clearly delegates authority to undertake a well- defined task, a
well trained subordinate can do it with a minimum of supervisor’s time
and attention. As such, the span could be wide. On the contrary, “if the
subordinate’s task is not one he can do, or if it is not clearly defined, or if
he does not have the authority to undertake it effectively, he will either
fail to perform it or take a disproportionate amount of the manager’s time
in supervising and guiding his efforts.”

6. Effectiveness of Communication System: The span of supervision

is also influenced by the effectiveness of the communication system in the
organization. Faculty communication puts a heavy burden on manager’s
time and reduces the span of control. On the other hand, if the system of
communication is effective, larger number of managerial levels will be
preferred as the information can be transmitted easily. Further, a wide
span is possible if a manager can communicate effectively.

7. Quality of Planning: If plans and policies are clear and easily

understandable, the task of supervision becomes easier and the span of
management can be wider. Effective planning helps to reduce frequent
calls on the superior for explanation, instructions and guidance and
thereby saves in time available at the disposal of the supervisor enabling
him to have a wider span. Ineffective plans, on the other hand, impose
limits on the span of management.

8. Degree of Physical Dispersion: If all persons to be supervised are

located at the same place and within the direct supervision of the
manager, he can supervise relatively more people as compared to the one
who has to supervise people located at different places.

9. Assistance of Experts: The span of supervision may be wide where

the services of experts are available to the subordinate on various aspects
of work. In case such services are not provided in the organization, the
supervisor has to spend a lot of time in providing assistance to the
workers himself and as such the span of control would be narrow.

10. Dynamism or Rate of Change: Certain enterprises change much

more rapidly than others. This rate of change determines the stability of
policies and practices of an organization. The span of control tends to be
narrow where the policies and practices do not remain stable.

STAFFING
The term ‘Staffing’ relates to the recruitment, selection, development,
training, and compensation of the managerial personnel. Staffing, like all
other managerial functions, is the duty which the apex management
always performs. In a newly created enterprise, the staffing would come
as a. third step next to planning and organizing but in a going enterprise
the staffing process is continuous.
“The managerial function of staffing involves manning the organisational
structure through effective and proper selection, appraisal, and
development of personnel to fill the roles designed into the structure.” —
Koontz and O’Donnell

NATURE
1. People Centered:
Staffing is people centered and is relevant in all types of organizations. It
is concerned with all categories of personnel from top to bottom of the
organization. The broad classification of personnel may be as follows:
(i) Blue collar workers (i.e., those working on the machines and engaged
in loading, unloading etc.) and white-collar workers (i.e., clerical
employees).
(ii) Managerial and non-managerial personnel.
(iii) Professionals (such as Chartered Accountant, Company Secretary,
Lawyer, etc.).

2. Responsibility of Every Manager:

It is the duty of every manager to perform the staffing activities such as
selection, training, performance appraisal and counseling of employees. In
many enterprises. Personnel Department is created to perform these
activities.
But it does not mean that the managers at different levels are relieved of
the responsibility concerned with staffing. The Personnel Department is
established to provide assistance to the managers in performing their
staffing function. Thus, every manager has to share the responsibility of
staffing.

3. Human Skills:
Staffing function is concerned with training and development of human
resources. Every manager should use human relations skill in providing
guidance and training to the subordinates. Human relations skills are also
required in performance appraisal, transfer, and promotion of
subordinates. If the staffing function is performed properly, the human
relations in the organization will be cordial.
4. Continuous Function:
Staffing function is to be performed continuously. It is equally important in
the established organizations and the new organizations. In a new
organization, there has to be recruitment, selection and training of
personnel. In a running organization, every manager is engaged in various
staffing activities. He is to guide and train the workers and evaluate their
performance on a continuous basis.

PROCESS OF STAFFING FUNCTION OF MANAGEMENT

Below are the steps in process of staffing.

1. Manpower Planning: Manpower planning may be regarded as the

quantitative and qualitative measurement of labor force required in an
enterprise. It involves in creating and evaluating the manpower inventory
and to develop required talents among the employees selected for
promotion advancement.

2. Recruitment: Recruitment is a positive process of searching for

prospective employees and stimulating them to apply for the jobs in the
organization. In other words, recruitment stands for discovering the source
from where potential employees will be selected. The scientific
recruitment leads to greater productivity, better wages, higher morale,
reduction in labor turnover and better reputation of the concern.

3. Selection: Selection is process of eliminating (among all the

candidates considered for possible employment) those who appear
unpromising. The purpose of selection process is to determine whether a
candidate is suitable for employment in the organization or not. The chief
aim of the process of selection is choosing right type of candidates to fill
in various positions in the organization. Selection process requires
exactness. A well-planned selection procedure is of utmost importance for
every enterprise.

4. Placement: Placement means putting the person on the job for which
he is selected. It includes the introduction of the employee with the job.

5. Training: After selection an employee, the most important and

established part of the personnel programme is to impart training to the
new comer. With the rapid technological changes, the need for training
employees is being increasing recognized to keep the employees in touch
with the new developments. Every concern must have a systematic
training programme otherwise employees will try to learn the job by trial
and error which can prove to be a very costly method.

6. Development: A sound staffing policy calls for the introduction of a

system of planned promotion in every organization. If employees are not
at all having suitable opportunities for their development and promotion,
they get frustrated.

Every employee should be given to understand the various promotion

routes/possibilities and the attendant facilities that are made available in
the form of training programs, orientation schemes, etc., to achieve the
same.

7. Promotion: Promotion implies upgrading of an employee to a higher

post involving increase in rank, prestige or status and responsibilities.
Generally increase in pay accompanies promotion but it is not essential
ingredient.

8. Transfer: Transfer implies movement of an employee from one job to

another without any increase in pay, status or responsibilities. Usually
transfer takes place between jobs paying approximately the same
salaries.

9. Appraisal: Appraisal of employees reveals as to how efficiently the

subordinate is performing his job and to know his aptitudes and other
qualities necessary for performing the job assigned to him. The qualities
of employees that are apprised through performance appraisal are ability
to do work, spirit of cooperation, managerial ability, self confidence,
initiative, intelligence etc.

The main objective of performance appraisal is to improve the efficiency

of a concern by attempting to mobilize the best possible efforts from
individuals employed in it.

10. Determination of Remuneration:

Fixation of remuneration is the most difficult and complex function of the
personnel department because there are no definite or exact means to
determine the correct wages.

Job Evaluation is the only systematic technique to determine the worth of

the job but much remains to be done in this regard. As wages constitute
major part of the cost of production, every concern must consider this
aspect very seriously.