Organizing and Staffing: Identifying Work, Grouping Tasks, Establishing Hierarchy

Unit 4
Organizing and Staffing
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Unit 4

Introduction
Organizing is the function of management which follows planning. It is a function in
which the synchronization and combination of human, physical and financial
resources takes place. All the three resources are important to get results.
Definitions
Organizing is a function by which the concern is able to define the role positions, the
jobs related and the coordination between authority and responsibility. Hence,
a manager always has to organize in order to get results.
- Chester Barnard
"Organising is the process of identifying and grouping the work to be performed,

defining and delegating responsibility and authority and establishing relationships
for the purpose of enabling people to work most effectively together in
accomplishing objectives.“- Louis Allen
Unit 4

Definitions
Organising is a “process of defining the essential relationships among people, tasks
and activities in such a way that all the organisation’ s resources are integrated
and coordinated to accomplish its objectives efficiently and effectively” .
— Pearce and Robinson
Organising is, thus (i) A Structure, and (ii) A Process.
As a structure:
Organising is a set of relationships that defines vertical and horizontal relationships
amongst people who perform various tasks and duties.
As a process:
While the structure designs the system and its sub-systems, process defines the
way this structure is designed, process defines the sequence of which the
structure is designed.
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Nature of Organization
1. Organization is always related to certain objectives.
2. An organization implies a group of people.
3. Communication is the nervous system of organization.
4. Organization is a continuous process.
5. Organization implies a structure of relationship
6. Organization involves a network of authority and responsibility relationship.

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Why We Organise?
1. Divides work to be done into specific jobs and departments.
2. Assigns tasks and responsibilities associated with individualjobs.
3. Coordinates diverse organizationaltasks.
4. Establishes relationships among individuals, groups, and departments.
5. Establishes formallines of authority .
6. Allocates organizationalresources .
7. Cluster jobs in to units .

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Importance of organizing
1. Specialization
2. Well defined jobs
3. Clarifies authority
4. Co-ordination
5. Effective administration
6. Growth and diversification
7. Sense of security
8. Scope for new changes

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1. Specialization - Organizational structure is a network of relationships in which
the work is divided into units and departments. This division of work is helping
in bringing specialization in various activities of concern.
2. Well defined jobs - Organizational structure helps in putting right men on right
job which can be done by selecting people for various departments according to
their qualifications, skill and experience. This is helping in defining the jobs
properly which clarifies the role of every person.
3. Clarifie s authority - Organizational structure helps in clarifying the role
positions to every manager (status quo). This can be done by clarifying the
powers to every manager and the way he has to exercise those powers should
be clarified so that misuse of powers does not take place. Well defined jobs and
responsibilities attached helps in bringing efficiency into managers working. This
helps in increasing productivity.
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4. Co-ordination - Organization is a means of creating coordination among different
departments of the enterprise. It creates clear cut relationships among positions
and ensures mutual co- operation among individuals. Harmony of work is brought
by higher level managers exercising their authority over interconnected activities of
lower level manager.
5. Effective administration –The organization structure is helpful in defining the jobs
positions. The roles to be performed by different managers are clarified.
Specialization is achieved through division of work. This all leads to efficient and
effective administration.
6. Growth and diversification - A company‘ s growth is totally dependent on how
efficiently and smoothly a concern works. Efficiency can be brought about by
clarifying the role positions to the managers, co-ordination between authority and
responsibility and concentrating on specialization. In addition to this, a company can
diversify if its potential grows. This is possible only when the organization structure is
well- defined. This is possible through a set of formal structure.
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7. Sense of security - Organizational structure clarifies the job positions. The
roles assigned to every manager are clear. Co- ordination is possible.
Therefore, clarity of powers helps automatically in increasing mental
satisfaction and thereby a sense of security in a concern. This is very important
for job- satisfaction.
8. Scope for new changes - Where the roles and activities to be performed are
clear and every person gets independence in his working, this provides
enough space to a manager to develop his talents and flourish his
knowledge. A manager gets ready for taking independent decisions which can
be a road or path to adoption of new techniques of production. This scope for
bringing new changes into the running of an enterprise is possible only through
a set of organizationalstructure.
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The Changing Organization
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Proce ss of organizing
1. Identifying the Work
The obvious first step in the process of organizing is to identify the work that has
to be done by the organization. This is the ground level from which
organisation needs to begin. So the manager needs to identify the work and
the tasks to be done to achieve the goals of the organization.
Identification of the work helps avoid miscommunication, overlapping of
responsibilities and wastage of time and effort.
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1. Identifying the Work
2. Grouping of Work
3. Establish Hierarchy
4. Delegation of Authority
5. Coordination
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2. Grouping of Work
For the sake of a smooth flow of work and smooth functioning of the
organization, similar tasks and activities should be grouped together. Hence
we create departments within the company and divisions within each
department. Such an organization makes the functioning of the company way
more systematic.
Depending on the size of the organization and the volume of work, an
organization can have several department and divisions. And every
department has a manager representing them at the top-level of the
management.
In smaller organizations sometimes these departments are clubbed together under
one manager.
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2. Grouping of Work
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3. Establish Hierarchy
The next step in the process of organizing is to establish the reporting
relationships for all the individual employees of the company. So a manager
establishes the vertical and horizontal relationships of the company.
This enables the evaluation and control over the performances of all the
employees in a timely manner. So if rectifications need to be made, they can be
made immediately.
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4. Delegation of Authority
Authority is basically the right an individual has to act according to his wishes and
extract obedience from the others. So when a manager is assigned certain duties
and responsibilities, he must also be delegated authority to carry out such duties
effectively.
If we only assign the duties, but no authority he will not be able to perform the
tasks and activities that are necessary. So we must always assign authority and
clearly specify the boundaries of the duties and the authority which has been
delegated.
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5. Coordination
Finally, the manager must ensure that all activities carried out by various employees
and groups are well coordinated. Otherwise, it may lead to conflicts between
employees, duplication of work and wastage of time and efforts. He must ensure
all the departments are carrying out their specialized tasks and there is harmony
in these activities. The ultimate aim is to ensure that the goal of the organization
is fulfilled.
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Proce ss of Organising
Unit 4

Principles of organizing
This is the strength & basis of Organization Structure, the thread that makes it
possible, the means by which groups of activities can be placed under a
Manager & Co-ordination of Organizational Units can be promoted.
It is the tool by which a Manager is able to exercise discretion & to create an

environme nt for individual performance.
Therefore, some of the most useful principles of Organizing are related to Authority
The organizing process can be done efficiently if the managers have certain
guidelines so that they can take decisions and can act. To organize in an effective
manner, the following principles of organization can be used by a manager
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1. Principle of Specialization
2. Principle of Functional Definition
3. Principles of Span of Control/ Supervision
4. Principle of Scalar Chain
5. Principle of Unity of Command

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1. Principle of Specialization
According to the principle, the whole work of a conce rn should be divided
amongst the subordinates on the basis of qualifications, abilities and skills. It is
through division of work specialization can be achieved which results in effective
organization.
2. Principle of Functional Definition

All the functions in a concern should be completely and clearly defined to the
managers and subordinates. This can be done by clearly defining the duties,
responsibilities, authority and relationships of people towards each other.
Clarifications in authority- responsibility relationships helps in achieving co-
ordination and thereby organization can take place effectively.
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Span of control is a span of supervision which depicts the numbe r of employees
that can be handled and controlled effe ctively by a single manager.
According to this principle, a manager should be able to handle what number of
employees under him should be decided. This decision can be taken by choosing
either from a wide or narrow span.
There are two types of span of control:-

1. A wide span of control exists when a manager has a large numbe r of
employees reporting to him. Such a structure provides more autonomy.
2. A narrow span of control exists when the number of direct reportees that a
manager has is small. Narrow spans allow managers to have more time with
direct reports, and they tend to spark professional growth and advancement.
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1. Wide span of control
It is one in which a manager can supervise and control effectively a large group of
persons at one time.
The features of this span are:-

a. Less overhead cost of supervision
b. Prompt response from the employees
c. Better communication
d. Better supervision
e. Better co-ordination
f. Suitable for repetitive jobs
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2. Narrow span of control-
According to this span, the work and authority is divided amongst many
subordinates and a manager doesn't supervises and control a very big group of
people under him. The manager according to a narrow span supervises a
selected number of employees at one time.
The features are:-
a. Work which requires tight control and supervision, for example, handicrafts,
ivory work, etc. which requires craftsmanship, there narrow span is more
helpful.
b. Co-ordination is difficult to be achieved.
c. Communication gaps can come.
d. Messages can be distorted.
e. Specialization work can be achieved.
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4. Principle of Scalar Chain
Scalar chain is a chain of command or authority which flows from top to bottom.
With a chain of authority available, wastages of resources are minimized,
communication is affected, overlapping of work is avoided and easy
organization takes place.
A scalar chain of command facilitates work flow in an organization which helps in
achievement of effective results. As the authority flows from top to bottom, it
clarifies the authority positions to managers at all level and that facilitates
effective organization.
5. Principle of Unity of Command

It implies one subordinate-one superior relationship. Every subordinate is
answerable and accountable to one boss at one time. This helps in avoiding
communication gaps and feedback and response is prompt. Unity of command
also helps in effective combination of resources, that is, physical, financial
resources which helps in easy coordination and, therefore, effective
organization.
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Organisational Structure
Organizational structure defines the manner in which the roles, power, authority,
and responsibilities are assigned and governed, and depicts how
information flows between the different levels of hierarchy in an organization.
Every organization has its own typical management structure that defines and
governs the relationships between the various employees, the tasks that they
perform, and the roles, responsibilities and authority provided to carry out
different tasks.
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Organisational Structure : Types
1. Line Organisation
2. Line & Staff Organisation
3. Functional Organisation
4. Project Organisation
5. Matrix Organisation
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• Line organisation is the simple and oldest type of organisation followed in an
organisation.
• Under line organisation, each department is generally a complete self-contained
unit.
• A separate person will look after the activities of the department and he has full
control over the department.
• The same level executives do not give or receive orders amongst themselves.
But they receive orders from their immediate boss and give orders to their
subordinates. Hence, all the heads are responsible to the general manager, the
general manager, in turn, is responsible to the shareholders who are the owners.
Unit 4

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1. Line Organisation : Characteristics
• It consists of direct verticalrelationships.
• Authority flows from top-level to level to bottom level.
• Departmental heads are given full freedom to control their departments.
• Each member knows from whom he would get orders and to whom he should
give his orders.
• A senior member has direst command over his subordinates.
• Operation of this system is very easy.
• Existence of direct relationship between superiors and subordinates.
• The superior takes decisions within the scope of his authority
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2. Line & Staff Organisation :
• In the line and staff organisation, staffs assist the line managers in their duties in
order to achieve the high performance.
• So, in an organization which has the production of textiles, the production
manger, marketing manager and the finance manager may be treated as line
executives, and the department headed by them may be called line departments
• On the other hand, the personnel manager who deal with the recruitment,
training and placement of workers, the quality control manager who ensure the
quality of products and the public relations manager are the executives who
perform staff functions.
• The three main divisions may be listed as:

1. Personal Staff.
2. Specialized Staff.
3. General Staff.
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2. Line & Staff Organisation
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2. Line & Staff Organisation : Characteristics
• It refers to a pattern in which staff specialists advise line managers to perform
their duties.
• Line people provide advices
• The staff people have the right to recommend, but have no authority to enforce
their preference on other departments
• This origin structure clearly distinguishes between two aspects of administration
viz., planning and execution.
• Staff officers provide advice only to the line officers; they do not have any power
of command over them.
• The staff supplements the line members.
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3. Functional Organisation :
• Under line organisation, a single person is in charge of all the activities of the
concerned department. The person in charge finds it difficult to supervise all the
activities efficiently.
• Under functional organisation, various specialists are for various functions
performed in an organisation. These specialists will attend to the work which is
common to different functions of various departments. Workers, under
functional organisation, receive instructions from various specialists.
• The need for functional organisation arises out of:
- The complexity of modern and large-scale organisation
- A desire to use the specialization in full and;
- To avoid the work-load of line managers with complex problems and decision-making
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3. Functional Organisation :
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3. Functional Organisation : Characteristics
• The work is divided according to specified functions.
• Authority is given to a specialist to give orders and instructions in relation to
specific function.
• Functional authority has right and power to give command throughout the line
with reference to his specified area.
• The decision is taken only after making consultations with the functional
authority relating to his specialized area.
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4. Project Organisation :
• This organisational structure are temporarily formed for specific projects for a
specific period of time, for the project of achieving the goal of developing new
product, the specialists from different functional departments such as
production, engineering, quality control, marketing research etc., will be drawn
to work together.
• These specialists go back to their respective duties as soon as the project is
completed.
Characteristics
• There is a grouping of a activities for each project.
• It leads to the introduction of a new line of a authority.
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4. Project Organisation :
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5. Matrix Organisation :
According to Stanley Davis and Paul Lawrence matrix organisation is “ any
organisation that employs a multiple command system that includes not only the
multiple command structure, but also related support mechanism and an
associated organisational culture and behaviour pattern.”
A matrix organisation, also referred to as the “

multiple command system”has two
chains of command.
1. One chain of command is functional in which the flow of authority is vertical.
2. The second chain is horizontal depicted by a project team, which is led by the
project, or group manager who is an expert in his team’ s assigned area of
specialisation.
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5. Matrix Organisation :
Unit 4
Staffing
Unit 4

Staffing: Introduction
In a small business unit, like a grocery shop, the owner may not need others to
help him in running the shop, as he may himself be able to look after all the
activities. But as the business grows in size he may find it difficult to manage
all the activities alone and may have to find out suitable persons and employ
them.
Staffing refers to the managerial function of employing and developing human

resources for carrying out the various managerial and non-managerial
activities in an organisation.
This involves determining the manpower requireme nt, and the methods of
recruiting, selecting, training and developing the people for various
positions created in the organisation.
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Staffing: Definition
Managerial function of staffing involves manning the organization structure through
proper and effective selection; appraisal & development of personnel to fill the
roles designed the structure‖ .
- Kootz & O‘ Donell
Staffing may be defined as the process of hiring and developing the required
personnel to fill in the various positions in the organization.
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Staffing: Importance
1. Staffing helps in discovering and obtaining competent and personnel for
various jobs.
2. It helps to improve the quantity and quality of the output by putting the right
person on the right job.
3. It helps to improve job satisfaction of employees.
4. It facilitates highe r productive performance by appointing right man for right
job.
5. It reduce s the cost of personnel by avoiding wastage of human resources.
6. It facilitates growth and diversification of business.
7. It provides continuous survival and growth of the business through
development of employees.
Unit 4

Staffing: Proce ss
1. Manpower Planning
2. Job Analysis
P
3. Recruitment
R
4. Selection O
5. Placement C
6. Induction E
7. Training and Development S
8. Performance Appraisal S
9. Compensation
10. Promotion and Transfer
Unit 4

Staffing: Proce ss
Ø Manpower planning refers to the process of
1. Manpower Planning estimating the manpower requirement of
an organisation.
2. Job Analysis
Ø While estimating the manpower requirement,
3. Recruitment the management generally keeps in mind
the available infrastructure including the
4. Selection technology, production schedule, market
5. Placement fluctuation, demand forecasts, government’
s policies and so on.
6. Induction
Ø It tentatively decides the kinds of staff as well
7. Training and Development as the number of staff needed for the
organisation.
8. Performance Appraisal
Ø The focus of the manpower planning is to get
9. Compensation right number of qualified people at the right
10. Promotion and Transfer time .
Unit 4

Staffing: Proce ss
Ø The job analysis helps in determining the
1. Manpower Planning qualifications, skills and experience required
for various categories of employees.
2. Job Analysis
Ø It involves:
3. Recruitment (i) Job Description
Identification of each job in terms of duties and
4. Selection responsibilities,
5. Placement (ii) Job Specification
Determining the abilities and skills that are
6. Induction
required for performing the job
7. Training and Development Ø These two aspects of job analysis (job
8. Performance Appraisal description and job specification) are useful
in recruitme nt and selection of employees so
9. Compensation as to find the right person for the job.

Unit 4

Staffing: Proce ss
Ø It refers to one of the initial steps in
1. Manpower Planning employment of people i.e., searching for
suitable candidates for the various job
2. Job Analysis positions to be filled up from time to time in
3. Recruitment the organisation.
4. Selection Ø Thus, recruitment is the process of

5. Placement finding and attracting suitable applicants
for employment.
6. Induction
Ø Having determined the qualification and
7. Training and Development experience required for various jobs
8. Performance Appraisal involved, one has to search for the
suitable persons and receive their
9. Compensation application.
Unit 4

Staffing: Proce ss
Sources of Recruitment
Ø Internal Sources
2. Job Analysis Ø Promotion
Ø Transfer
3. Recruitment Ø Demotion
Ø Retrenched employee
4. Selection
Ø External Sources
5. Placement
6. Induction
7. Training and Development
9. Compensation
Unit 4

Staffing: Proce ss
Ø Selection refers to the process of choosing
1. Manpower Planning the most suitable person from among the
list of interested candidates.
2. Job Analysis
3. Recruitment Ø It involves going through the qualification
and experience of all candidates and
4. Selection matching them with the expectation for
5. Placement the job so as to decide on the most suitable
ones for the job.
6. Induction
Ø The entire process goes through a number
7. Training and Development of steps which may be called as selection
8. Performance Appraisal procedure.
9. Compensation
Unit 4

Staffing: Proce ss
Ø Selection Procedure
1. Screening the applications
2. Job Analysis 2. Holding tests
3. Recruitment 3. Selection interview
4. Checking references
4. Selection 5. Medical examination of the candidates
5. Placement 6. Issue of appointment letter
6. Induction
9. Compensation
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Staffing: Proce ss
Ø Placement refers to selected candidate
1. Manpower Planning joining the positions in the organisation for
which he/she has been selected.
2. Job Analysis
3. Recruitment Ø The appointment of every candidate is
followed by a record of particulars of
4. Selection employment.
5. Placement
Ø Such records is properly maintained and
6. Induction described as employment record.
7. Training and Development Ø It serves a useful purpose on many
8. Performance Appraisal occasions like selection of employees for
training, promotion, increments etc.
9. Compensation
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Staffing: Proce ss
Ø Induction is the process of introducing new
1. Manpower Planning employees to the organisation.
2. Job Analysis Ø The new employees should know unde r

whom and with whom he/ she is to work,
3. Recruitment get acquainted and adjusted to the work
environment, get a general idea about the
4. Selection rules and regulations, working conditions
etc.
5. Placement
Ø Usually the immediate supervisor of the new
6. Induction employee introduce s him to his work
environment.
Ø A proper induction programme is likely to
8. Performance Appraisal reduce his anxiety on how to cope with the
9. Compensation work and how to become part of the
organisation and helps in development of a
10. Promotion and Transfer favourable attitude towards the
organisation and the job.
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Staffing: Proce ss
Ø It is an organised activity for increasing the
1. Manpower Planning knowledge and skills of people for a specific
purpose.
2. Job Analysis
Ø The term ‘ development’ refers to the process
3. Recruitment
of not only building up the skill and abilities for
4. Selection specific purpose but also the overall
competence of employees to unde rtake
5. Placement more difficult and challenging tasks.
6. Induction Ø Training is necessary for new employees as
7. Training and Development well as the existing employees for improving
their performance at work.
Ø Methods of Training
9. Compensation (1) On-the-Job methods, and
10. Promotion and Transfer (2) Off-the-Job methods.
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Staffing: Proce ss
Ø Performance appraisal means judging the
1. Manpower Planning performance of employees.
2. Job Analysis Ø This enables managers to identify
3. Recruitment employees who are performing the
assigned work satisfactorily, and those who
4. Selection are not able to do so, and why.
5. Placement
Ø Generally it is the responsibility of
6. Induction supervisors to carry out performance
appraisal of their subordinates, and report it
7. Training and Development to their own superiors.
Ø Standard Vs. Actual
9. Compensation
Unit 4

Staffing: Proce ss
Ø The term ‘ compensation’refers to a wide
1. Manpower Planning range of financial and non financial rewards
to the employees for services rendered to the
2. Job Analysis organisation.
3. Recruitment Ø It includes wages, salaries, allowances and
other benefits which an employer pays to his
4. Selection employees in consideration for their services.
5. Placement Ø Base or primary compensation is a fixed
6. Induction amount paid every month to an employee. It
includes wages, salary and allowances paid to
7. Training and Development an employee irrespective of his performance.
Ø Supplementary compensation refers to the
8. Performance Appraisal compensation paid to the employees to
9. Compensation motivate them to work more efficiently.
(Incentive Compensation)
Unit 4

Staffing: Proce ss
Ø When an employee is assigned a job

1. Manpower Planning involving greater responsibilities, more
pay, higher status and prestige than
2. Job Analysis
his/her present job, it is known as
3. Recruitment promotion.
4. Selection
Ø Thus, promotion refers to the
5. Placement advancement of an employee to a higher
level or position.
6. Induction
7. Training and Development Ø The main purpose of promotion is to
make fuller use of the abilities of a person
8. Performance Appraisal and also increase his job satisfaction.
9. Compensation
Unit 4

Staffing: Proce ss
Ø Transfer refers to a type of job change

1. Manpower Planning where any employee is assigned a
different job of the same rank and pay,
2. Job Analysis
or when an employee is assigned a
3. Recruitment similar job in another unit of the firm.
4. Selection Ø Thus, transfer does not usually involve
5. Placement any increase in pay or a superior
status.
6. Induction
Ø It may be done simply to enable the
employee to gain wide r experience, or
8. Performance Appraisal to give him greater job satisfaction, or
to balance the requireme nts of staff in
9. Compensation
different units.
Thank You

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Unit 4

Organizing and Staffing

Organizing and Staffing

"Organising is the process of identifying and grouping the work to be performed,

Organizing and Staffing

Organising is, thus (i) A Structure, and (ii) A Process.

Organizing and Staffing

1. Organization is always related to certain objectives.

2. An organization implies a group of people.

3. Communication is the nervous system of organization.

4. Organization is a continuous process.

5. Organization implies a structure of relationship

6. Organization involves a network of authority and responsibility relationship.

Organizing and Staffing

1. Divides work to be done into specific jobs and departments.

2. Assigns tasks and responsibilities associated with individualjobs.

3. Coordinates diverse organizationaltasks.

4. Establishes relationships among individuals, groups, and departments.

5. Establishes formallines of authority .

7. Cluster jobs in to units .

Organizing and Staffing

2. Well defined jobs

6. Growth and diversification

8. Scope for new changes

Organizing and Staffing

Organizing and Staffing

Organizing and Staffing

Organizing and Staffing

Organizing and Staffing

Organizing and Staffing

1. Identifying the Work

Organizing and Staffing

Organizing and Staffing

Organizing and Staffing

Organizing and Staffing

Organizing and Staffing

Organizing and Staffing

Organizing and Staffing

It is the tool by which a Manager is able to exercise discretion & to create an

Organizing and Staffing

2. Principle of Functional Definition

3. Principles of Span of Control/ Supervision

4. Principle of Scalar Chain

5. Principle of Unity of Command

Organizing and Staffing

2. Principle of Functional Definition

Organizing and Staffing

There are two types of span of control:-

Organizing and Staffing

The features of this span are:-

Organizing and Staffing

The features are:-

Organizing and Staffing

5. Principle of Unity of Command

Organizing and Staffing

Organizing and Staffing

Organizing and Staffing

Organizing and Staffing

Organizing and Staffing

Organizing and Staffing

• The three main divisions may be listed as:

Organizing and Staffing

Organizing and Staffing