Business Administration & HR

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Business Administration & HR 2017-2019
2017 - 2019
Business Administration
& HR
Assignment for Business Administration & HR
Prepared by: hamad khan

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Q.1 Identify the four factors of production and their role in economic systems.
Following are the four factors of productions and their role in economic systems:
Production is the exploitation of available economic resources to create things that satisfy

human need and wants e.g. wheat and cloths. It, is not only restricted to creating things, but it
also involves doing everything possible to ensure that the goods produced can satisfy human
wants. This, means that production starts right from the ground. In the case of wheat, it will
involve tilling the land, plant the wheat, harvest the after yield, transport the wheat to production
areas, grind it, bake bread and there after availing it the market for the general population
(consumer) to buy and consume. Thus, every act that increases the ability of the good to satisfy
human wants is a part of the production. Economic systems rely on certain inputs known as
factors of production to operate efficiently. These inputs are the resources that businesses in a
country use to create income and wealth. There are four factors of production: land, labor, capital
and entrepreneurship and understanding these factors, as well as the role they play in the
economy, is of great importance.
Four Factors of Production:
1) Land
The land is taken to refer to all the natural resources over which people have the power of
disposal and which may be used in creating goods and also to yield an income. Land includes
farming land, building land, forests, rivers, lakes and mineral deposits. The total supply of land in
the world is limited although the supply of land for more particular use is not fixed. Thus, for
example, more maize can be planted at the expense of wheat. Alternatively, more land can be
allocated to buildings at the expense of farming land.
2) Labor
Among the four factors of production, labor is another one that possesses greater significance in
an economy. It refers to human efforts both mental and physical directed towards the production
of goods and services. It should be noted that labor is distinct in that it is the services of labor that
are bought and sold and not the labor itself. Labor is also unique in that it is the reason why
economic activities take place. The supply of labor in an economy is a measure of the number of
hours of work which is offered at given wage rates over specified period. The reward for labor is
wages and salaries. In economic systems, growth is determined by the size and quality of labor
force available. If there is a limited amount of labor or if a country contains a larger percentage
of unskilled labor than the potential for economic growth is reduced and vice versa.
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3) Capital
Capital refers to all human-made productive assets used to further production. These productive
assets are not wanted for their sake (the satisfaction they yield), but because they help to produce
other commodities to better appreciate this input of production, we classify it into two forms:
capital good and capital fund. The former consists of such things as tools, equipment, buildings,
fixtures, means of transport, as well as raw materials in the process of manufacture, and
inventory for sale. Capital fund, on the other hand, refers to money or cash that is available for
investment in business enterprises. It could be in the forms of stocks, shares, loans, and
debentures. The reward for capital interests.
4) Entrepreneurship
Entrepreneurship refers to the organization of all factors of production to profit. The entrepreneur
in an economy fulfils two vital functions; firstly, the hiring and combining of other factors of
production, including making decisions relating to what to produce, how to produce and where to
produce. Secondly, the risk taking a function which arises because most production is undertaken
in anticipation of demand where the future is uncertain. Entrepreneurs make payments to cover
their costs without any certainty that revenue will cover the costs. Entrepreneurship as one of
the four factors of production has been distinguished from labor, because, labor cannot contribute
to the entrepreneur. The labor need to find work to contribute, and the entrepreneur makes this
job available. Without the entrepreneur, all other factors of production are of little economic
value. The entrepreneur thus is the one who identifies a business opportunity, organizes the other
factors of production, and takes responsibility for the risks associated with the success and failure
of the undertaking. Entrepreneurship, simply put, is the exploitation of opportunities that exist
within an economy through the combination of other factors of production. The reward for
entrepreneurship is profit.
To Summarize,
Land, labor, capital, and entrepreneurship are the four factors of production needed for any
economic system to operate efficiently. The rewards for these factors are also an important aspect
to be noted so that the above inputs can be utilized resourcefully for the benefit of economic
growth and sustainability. The rewards have been highlighted in the discussion above.
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Q.2 Explain the steps that an organization must take to foster companywide sense of social
responsibility.
One way to foster engagement at your company is through sustainability, also called corporate
social responsibility (CSR). CSR goes farther than inviting everyone out for a day with Habitat
for Humanity or offering volunteer time off. It means integrating your company’s mission and
purpose with sustainable values, and supporting environmental and social goals in ways that
connect to your company’s business. Studies that CSR is directly linked to employee retention,
productivity, and overall engagement. Companies that engage in socially and environmentally
responsible practices are able to recognize these benefits of CSR. A study conducted this month
by Harris Poll for Glassdoor found that 75% of employees/job seekers expect their employer to
support groups and individuals in need in the communities in which they do business through
donations and/or volunteer efforts. And similar data from Deloitte found that 76% of Millennials
now regard business as a force for positive social impact. There’s no doubt that when companies
help the world, they help themselves. Getting started or improving upon a CSR program should
involve leaders from all areas of a company. While HR-focused CSR initiatives typically involve
diversity, benefits, compensation and work environment, it’s helpful to understand how a
sustainability program works at a high level. Then you can amplify your CSR programs to help
retain and attract talented employees who want to do good in the world as well as on the job.
Here are seven steps to consider:
1. Engage Leaders to Improve Corporate Social Responsibility
The most successful sustainability efforts are company-wide and endorsed by leaders from the
CEO on down. It’s important that leaders share their passion for sustainability and be visibly
involved with company goals such as reducing emissions, eliminating waste or providing for
underserved communities. Employees will be motivated and inspired by the example set by
company leaders.
2. Identify Your Purpose
If it isn’t crystal clear how your company can become more sustainable or socially responsible in
a way that supports your company’s mission and purpose, take a step back and ask a few
questions. What are your products? What higher purpose do they serve? What resources does the
process of conducting your business use? Consider manufacturing, shipping, warehousing,
looking at energy consumption and materials. Also take look at the customer environment. What
do customers need to be able to use your products? How do they dispose of them? There might
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be an opportunity to develop social or educational initiatives that build the customer (or
employee) pipeline.
Tip: Read up on sustainability efforts by major corporations, such as those in the Corporate

Knights Global 100 List. Research their websites and Glassdoor pages to see how they integrate
sustainability into their business goals. Also take a look at how they involve employees.
3. Set Goals for CSR Programs
Specific goals such as “reduce electricity consumption by 30%” or “find two or more ways to
reduce materials used in packaging” motivate employees to achieve. If you have multiple
locations, consider how you can encourage healthy competition between locations to improve on
company-wide sustainability goals.
4. Educate Employees on CSR Activities to Get Engagement
Not everyone will immediately be onboard with sustainability goals. In fact, it can be difficult to
get employee engagement from CSR activates. For that reason, it’s important to educate
employees on how the goals will benefit the planet or communities. By integrating sustainability
into existing training–particularly onboarding– you’ll set employees up to expect and anticipate
involvement in efforts that contribute the greater good.
5. Facilitate Employee Project Ownership
Some of the best ideas for sustainability come directly from employees, as in these examples
from Johnson & Johnson. Make it known that good employee ideas will supported, and
encourage employees to follow through with projects. The process of piloting a new idea and
involving a team to help can be great development opportunity for staff at all levels.
6. Celebrate Achievements in CSR
Many companies publish an annual sustainability report. It’s also important to celebrate the
achievements internally, whether it’s through awards or recognition events. Share stories of the
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energy saved and the lives assisted in meetings, on the intranet, a newsletter, or internal signage.
This is what sets the best CSR programs and activities apart.
7. Share the Knowledge
Showing the outside world how your company integrates sustainability into its business practices
paves a path for other companies looking to do the same thing. Generating press from your
sustainability efforts provides validation for employees and engages candidates, consumers and
shareholders. Tip: Share your sustainability achievements on Glassdoor to attract informed
candidates. Post pictures, videos, and maybe even add a tab in your Why Work for us section that
explains your sustainability mission. These steps to engaging employees in social responsibility
just so happen to align with the traits shared by companies on Glassdoor’s 2017 Best Places to
Work list. That’s because empowering employees to make a difference in their community can
actually give you more satisfied and well-rounded employees, which translates to higher
productivity. Whether you organize company-wide community service activities or offer time off
to volunteer at the organization of their choice, it will be a worthwhile investment.
Find potential projects.
As your business grows, many people will approach you about supporting their initiatives. It’s
great if you can help them, but it’s better to select potential projects in advance based on your
purpose, values, skills, and passion. Otherwise, you’ll end up with a hodgepodge of projects that
aren’t directly related to your brand or community of customers. Creating a list of potential
projects is easy: Do a Google search on nonprofits, charities, and social organizations in your
area. Many cities also have a nonprofit association that can help identify community needs, or
you can call various government agencies and ask which organizations are working on certain
problems that interest you: education, human services, workforce services, or rehabilitation. To
find the best matches, start with a broad list of projects before narrowing down your options.
Q.3 Discuss four sources of financing for starting up a small business.
Following are four source of financing for starting up a small business:
The fellas at Collective Arts had a bold vision, a formidable following and a tasty beer. But when
it came to raising money, particularly from the big banks, their story meant nothing. A small
business with no revenue, no track record and no sales screams high-risk. Luckily, there are other
pockets to pick to help your small business get the financing it needs to grow and thrive.
1. Friends and family

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Contacting your closest connections is a crucial investment move for small businesses. While
friends and family tend to be one-off investors, they pour $8 billion a year into Canadian
businesses, according to Allan Riding, a Deloitte professor at the University of Ottawa’s Telfer
School of Management who specializes in the management of growth enterprises. In his study on
informal finances, he found that there is three times more “love money” than capital from angel
investors being invested annually, most of it going into the manufacturing and retail sectors. “It
can be intimidating to ask friends and family for money because you’re asking them to take a
leap of faith,” says Mark Evans, principal of ME Consulting. “But if you can show them your
business plan and you’re clear about the risks, there’s nothing wrong with asking. “The cleanest
way to go about it is to ask for a loan with a promissory note stating repayment terms. Or give a
slice of ownership and offer straight-up equity. Starting in May, Ontario startups can sell equity
to family and friends (this option is already available in other Canadian provinces), but both
parties are required to sign a risk-acknowledgment form. Things can get tricky, since startup
valuations are hard to determine, plus friends and family aren’t typically experienced business
investors. Evans recommends getting a lawyer to create an equity structure. Regardless of your
approach, pals offer a big payoff, because they also build traction you can use later to get further
funding. “No one wants to be the first to buy into a product, but if you can validate what you’re
doing, then you’ve demonstrated to the market that you have something unique,” says
Evans.
2. Government Funding
The first half of 2014 saw $5.86 billion of government funding injected into Canadian
businesses, and yet this pocket is often overlooked. “Government funding is like the low-hanging
fruit,” says Sahar Ansari, lead funding consultant at Fundica. “Small businesses find it
mysterious, because they don’t know where to look or if they’re even eligible.” That’s why
Fundica was created: to provide entrepreneurs with a free online search tool that uses intelligent
filtering to match a company’s profile and funding needs with a host of available government
programs. According to Ansari, hiring and innovation projects typically have more access to
government funding.
3. Bootstrapping
It’s the least sexy approach of the bunch, and it barely gets any spotlight. Bootstrapping is do-it-
yourself financing that requires rigorous budgeting and operating on minimal costs before taking
any outside capital. Mark Graham, the founder of Right sleeve, a Toronto-based promotional
products company that makes custom-branded swag like Red Bull toques and Koodo action
figures, started his business in 1997 with $3,000, a home office and zero employees. He stayed
on top of his cash flow by collecting receivables and charging clients up front. As a products-
based business, he made sure not to sit on inventory. It wasn’t until a year later, when he started
making revenues of $100,000, that he spent money on basics like a website and office space.
Since then, he’s bootstrapped his business to sales of $5 million without ever shaking hands with
a venture capitalist. “This way, we get to grow organically and never have to give up any equity
or worry about too much debt,” says Graham.
5. Angel Investors and Venture Capitalists

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Somewhere in the world, there is a high-net-worth individual who wants to give you money,
even if you don’t have any yourself. These are the angel investors and venture capitalists who
invest anywhere from $10,000 up to $20 million in ideas. There are also angel groups that help
facilitate co-investments with multiple angels, or arrange syndicated investments with other
angels and venture capital providers. “With angel investors and venture capitalists, they generally
accept that some investments are not going to do well, but they also know the ones that do very,
very well will more than compensate,” says Janet Bannister, partner of Real Ventures, a
Montreal-based venture fund that invests in early-stage businesses. Her company finances
startups that have barely launched, including (in a Meta fashion) Fund through, a Toronto-based
marketplace that connects small businesses with lenders. Online platforms Angel List, Funders
Club and Gust connect entrepreneurs with accredited active angels and VCs by market and
region, while search engines like Fundica and The Funding Portal can help owners find more
private backers.
4. Discuss the art of management and how it is supported by the science of management. If, as
many have argued, management really is an art, if leadership entails more than analytic and
statistical skills, it would make sense for businessmen to look at the creative and performing arts
to learn something about their own endeavors. The author investigates what he sees as three
indispensable aspects of the artistic process—craft, vision, and communication. Just as artists
need to master their crafts, business managers need to perfect their skills in dealing with people
and in expressing themselves verbally; just as artists need visions and passion to realize them,
managers need imagination and audacity to redesign their organizations; and just as great masters
communicate their visions, great leaders inspire those who work for them. To complete this
process, managers as well as artists need constructive criticism and models to emulate. Thus one
of the obligations of top management is to teach and guide. The author concludes that for its own
survival, business should take on the responsibility of nurturing its own leaders. Having written
two HBR articles already (the last one being “Technology in the Manager’s Future,” November–
December 1970), Mr. Boettinger is not new to our pages. The following article was adapted from
a lecture delivered in 1974 to the Oxford Centre for Management Studies, Oxford University,
where he is a visiting fellow. Mr. Boettinger is director of corporate planning at the American
Telephone & Telegraph Company. In sheer banality, few statements exceed the assertion that
management is an art. Grizzled managerial veterans sometimes shout it to silence insolent or
overeager newcomers who brandish shiny scientific methods during decision-making sessions.
On happier occasions, appreciative observers use it to explain unexpected success, when chance
and the probability of failure surrender to competence and nerve. And who could deny that such
a platitude is in some way descriptive of experience? Surely no sensible person would say that
management is not an art. Perhaps if one takes the comparison of management to art seriously, he
will find that it has some important implications for modern managerial practice.Over the past
few years, I have sought out successful practitioners and teachers in some endeavors recognized
as arts—musical performance, ballet, painting, sculpture, architecture, writing, surgery, cooking,
and certain sports of the individual type like fencing and horsemanship. My purpose was to see if
they have some attributes in common that could be applied to the teaching and practice of
management.
All the statements about art that I have gathered come out something like this: art is the
imposition of a pattern, a vision of a whole, on many disparate parts so as to create a
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representation of that vision; art is an imposition of order on chaos. The artist has to have not
only the vision that he or she wants to communicate but also the skills or craft with which to
present the vision. This process entails choosing the correct art form and, within that art form, the
correct technique. In good art, the result is a blending of vision and craft that involves the viewer,
reader, or listener without requiring that he separate the parts in order to appreciate the
whole.\We all know people who have vision but no skill in implementing it; we call them
dreamers. In the arts they are the habitués of cafés who constantly talk about “work in progress”
that is never completed. Others we know possess highly honed skills but no visions to work on.
Their melancholy lament identifies them: “If only I had an idea, what a story I could write!” or
“If only I knew what top management really wants me to do!” Those without ideas are hacks
who grind out potboilers according to worn-out formulas. We can learn nothing from them
except what to avoid. In any enterprise both dreamers and technicians, regardless of their level,
are condemned to ineffectiveness. to see how this distinction relates to management, we shall
examine two qualities good artists have—competence (technical skill) and imagination (the
facility of mind to arrive at visions). By combining these qualities, a leader, like an artist, can
communicate his visions and create a response in those around him.
‘Criticism Comes Easier than Craftsmanship’: Pliny the Elder
Surgical instruments, brushes, chisels, swords, reins, spatulas, or ballet shoes are never used
properly when given to a true novice, even if he has great talent. Intuition alone is insufficient for
even amateur performance. In the arts, the proper use of tools evolves after years of innumerable
mistakes and a few precious successes. Artists create instruments to meet needs as they arise and
perfect methods of use by trial and error. These methods are handed down from teacher to pupil
and are virtually never arrived at instinctively or without practice. There are no short cuts to
developing a skill. It is not exaggerating to say that professional techniques are nearly always
anti-instinctive and that every master once had his instincts broken in for disciplined service. In
the management of complex affairs like politics and government, unprepared practitioners often
intervene and cause misdirected, though well-intentioned, results. This may account for Jay
Forrester’s law: “Any intuitive alteration of a complex system will cause it to become worse
off.”1 Most of us would not be comfortable using intuition to operate an atomic reactor, a
submarine, or an airplane. We might tremble if asked to remove a brain tumor, direct a
symphony, jump a horse, or prepare a state dinner. All these activities are, however, far less
complicated than successfully launching a new economic policy, introducing new technology to
an entire industry, or properly restructuring an institution’s organization to meet new markets and
demands. Yet these are things that managers are expected to be able to do well, rapidly, and
almost immediately. Are companies making sure that their managers are masters of the best
available techniques before they are called on to carry out tasks that are fraught with grave
human, political, and social consequences? I doubt it. Acquiring technique is essential to having
competence.
Management’s materials
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Most artists use materials whose nature must be known in depth to produce the best work.
Musical instruments, for example, are complex in their construction and difficult to manipulate.
Each material has its own strengths and weaknesses, and the true craftsman knows its limitations
and how to work with it so that it does not resist his efforts. The manager’s materials are human
talents, including his own. The core of his job is to accomplish grand purposes through human
efforts. The French author and politician Jean-Jacques Servan-Schreiber sums up the idea:
“Management is the art of arts because it is the organizer of talent.”
Organizing others’ talents
We may ask how a manager acquires a master’s knowledge of his materials. Like an architect
wishing to transcend the limits of previous construction methods, he must study the nature of his
materials and experiment with their possibilities. If a manager believes all people in his charge to
be homogeneous material that can be shaped into any form by the chisels of marketplace
pressures, he has a very primitive outlook on motivation. With nineteenth century overseers and
captains of shanghaied crews, he shares a policy based on the knout no doubt some managers can
deal with people in this way, but the techniques of their management art are as unperfected as
their philosophy is barbaric. Today, managers with such an outlook are akin to architects
designing houses without knowing the stress limits of their materials. They can survive only in
relatively isolated enclaves of society. Those who manage others need a knowledge and
appreciation of motivation, which requires a far deeper understanding of human beings as
individuals than brandishing the lash does. But how does a business teach a manager to deal with
subordinates, particularly with seasoned veterans, whose activity is essential to the organization’s
growth? At the very least, he should be instructed to avoid antagonizing them unnecessarily, as
political leaders new to office so often do. An organization’s management is like a knife whose
cutting edge is imagination but whose momentum is derived from the mass of experience and
effort of the personnel behind that edge. Both edge and mass are needed to make the knife cut.
The adjectives “dull” and “sharp” are not unknown in appraising overall managerial
effectiveness. A manager must understand not only the persons in his own organization, but also
the drives, anxieties, and reactions of those beyond the perimeter of his control—stockholders,
customers, competitors, and government officials. Our knowledge of management “material” is
both tentative and limited. This lack of knowledge is one reason why waves of fashion in new
manipulation and motivation methods sweep over us from time to time.
In other arts, the masters of skill assign a large role to learning from error and practice. Fencing
and riding masters physically punish their pupils for deviating from proper form and often use
ridicule to correct lapses in concentration. One master believes that skill in these two arts can
only be developed to the highest level under the harshest conditions of military discipline. He
said, “It’s remarkable how a few days of reflection on his errors in the guardhouse can cause
someone to keep his heels down and his elbows in.”We certainly cannot use military discipline in
management, but errors could be seen as opportunities for the teacher to direct future practice and
training. In the arts, such training progresses in gradual steps, from simple elements to more
complex maneuvers, each to be thoroughly learned before going on to new levels. All masters
know that if an area of fundamental skill is neglected, it will ultimately plague all future work
and cause serious flaws in performance. A fencer whose disengage riposte is never developed is
as limited in the way he can maneuver in a match as a manager is who realizes he does not know
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how to deal with people. His energies go into protecting that weakness rather than into
developing a better strategy. Companies’ management training schemes, however, seldom leave
room for the gradual process of learning. Consequently, there are many people, some in high
positions, who are deficient in even an elementary understanding of the importance of human
relations. And when ill-prepared persons have to deal with areas in which they are weak, for
instance, accounting methods and sophisticated management information systems, their lack of
human skills is even more crucial than their lack of quantitative ones. The gaps in their training
place continual stress on their subordinates. It need not be this way. Few persons can learn
anything faster than managers faced with real problems. But they must be willing to suspend
their status as hierarchs and to assume the humbler status of students under competent teachers.
For insecure, second-rate people, this produces a social problem of which first-rate people are,
happily, not even aware. A company wishing to give a good education in management always
provides ways to minimize this potentially neurotic friction. One final point relative to training in
competence in the arts is that only someone who can actually perform in an art is qualified to
teach it. There is no question that constructive criticism from an informed bystander is helpful;
actors, for instance, can learn a great deal about human motivation from psychiatrists.
Nevertheless, this kind of procedure is different from the one an actor goes through to show
another how to express human feelings. This kind of apprenticeship in the art of management is
more difficult to complete than is apprenticeship in the other arts. Dancers, actors, painters, and
musicians usually arrive at the master’s studio at a tender age and have high motivation to keep
presenting themselves for the harsh selection process. Not so in management. Few managers
have had childhood visions of becoming managers, and usually it is not until later in life after
preparing for other professions that they discover a talent or interest in management. The “late-
blooming” managers suffer because of the general attitude companies have toward taking
responsibility for management training. Not one member of the New York Philharmonic
Orchestra expects the management of the orchestra to help him develop his skills on his
instrument. That is entirely up to him, and he knows his reputation as a musician is totally
dependent on his performance ability. Intention, potential, and aspiration have no place or weight
in his appraisal. How well he can play is what counts, not how well he might play with further
training. In the music world, a chasm separates the first-rate from the second-rate, and everyone
not only knows it but accepts it. The difference between the orchestra and the corporation is that
the individual musician has had a teacher, and probably will have one, all his life. The teacher
has responsibility for the performance. In a corporation, the student manager has to learn his art
in an environment where the goals are always changing and from a hierarchy that sees his
development as his own affair. To learn the art of management entirely on one’s own is
impossible, even in a master-student relationship. Higher managers must, therefore, assume some
responsibility for the training of those who will succeed them and who are currently subordinate
to them. There is an apparent perversity in the obligation to assist others to destroy, or at least to
make obsolete, one’s current operational vision, and yet that is the noble imperative for the best
teachers of management. To make one’s subordinates into mere carbon copies of oneself and to
embrace selection methods which make that easy betrays the future growth of any enterprise or
institution. When asked by a bright pupil, “When should I discontinue my lessons from you?” a
wise painting master replied, “When your pictures begin to look like copies of mine.” We all
know of leaders so dominant that their subordinates try to emulate their every act. Lacking the
master’s genius, they succeed only in copying his faults and producing parodies of his
accomplishments. This is why the history of art is marked by great breakthroughs of genius that
become worn-out or stylized by the school they have created. This stagnation sets up conditions
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for the emergence of a new vision of greatness to arrest the previous decline. The aphorism
“Nothing fails like success,” coined by William Inge, dean of St. Paul’s, finds its roots in
situations like these. Lord Raglan, that unfortunate military leader during the Crimean War, said
that when faced with a problem he always asked himself, “What would the Duke of Wellington
have done?” I submit that the thought of imitating someone else never crossed the duke’s mind.
Instead, he asked himself, “What will my enemy do?” That is the approach of a great leader to all
conflict situations, from battles to competition for markets. The leader uses his imagination for
strokes of genius geared to the present; the imitator perverts his imagination by trying to find the
right action for conditions long consigned to the dustbin of history. The results of both attitudes
are predictable and deserved.
Management as an Art
Art implies application of knowledge & skill to trying about desired results. An art may be
defined as personalized application of general theoretical principles for achieving best possible
results. Art has the following characters -
1. Practical Knowledge: Every art requires practical knowledge therefore learning of theory

is not sufficient. It is very important to know practical application of theoretical
principles. E.g. to become a good painter, the person may not only be knowing different
color and brushes but different designs, dimensions, situations etc. to use them
appropriately. A manager can never be successful just by obtaining degree or diploma in
management; he must have also know how to apply various principles in real situations
by functioning in capacity of manager.
2. Personal Skill: Although theoretical base may be same for every artist, but each one has
his own style and approach towards his job. That is why the level of success and quality
of performance differs from one person to another. E.g. there are several qualified
painters but M.F. Hussain is recognized for his style. Similarly management as an art is
also personalized. Every manager has his own way of managing things based on his
knowledge, experience and personality, that is why some managers are known as good
managers (like Aditya Birla, Rahul Bajaj) whereas others as bad.
3. Creativity: Every artist has an element of creativity in line. That is why he aims at
producing something that has never existed before which requires combination of
intelligence & imagination. Management is also creative in nature like any other art. It
combines human and non-human resources in useful way so as to achieve desired results.
It tries to produce sweet music by combining chords in an efficient manner.
4. Perfection through practice: Practice makes a man perfect. Every artist becomes more and
more proficient through constant practice. Similarly managers learn through an art of trial
and error initially but application of management principles over the years makes them
perfect in the job of managing.
5. Goal-Oriented: Every art is result oriented as it seeks to achieve concrete results. In the
same manner, management is also directed towards accomplishment of pre-determined
goals. Managers use various resources like men, money, material, machinery & methods
to promote growth of an organization.
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Thus, we can say that management is an art therefore it requires application of certain principles
rather it is an art of highest order because it deals with mounding the attitude and behavior of
people at work towards desired goals.
Management as both Science and Art
Management is both an art and a science. The above mentioned points clearly reveals that
management combines features of both science as well as art. It is considered as a science
because it has an organized body of knowledge which contains certain universal truth. It is called
an art because managing requires certain skills which are personal possessions of managers.
Science provides the knowledge & art deals with the application of knowledge and skills.A
manager to be successful in his profession must acquire the knowledge of science & the art of
applying it. Therefore management is a judicious blend of science as well as an art because it
proves the principles and the way these principles are applied is a matter of art. Science teaches
to ’know’ and art teaches to ’do’. E.g. a person cannot become a good singer unless he has
knowledge about various ragas & he also applies his personal skill in the art of singing. Same
way it is not sufficient for manager to first know the principles but he must also apply them in
solving various managerial problems that is why, science and art are not mutually exclusive but
they are complementary to each other (like tea and biscuit, bread and butter etc.). The old saying
that “Manager are Born” has been rejected in favor of “Managers are Made”. It has been aptly
remarked that management is the oldest of art and youngest of science. To conclude, we can say
that science is the root and art is the fruit.
Management as a Science
Science is a systematic body of knowledge pertaining to a specific field of study that contains
general facts which explains a phenomenon. It establishes cause and effect relationship between
two or more variables and underlines the principles governing their relationship. These principles
are developed through scientific method of observation and verification through testing.
Science is characterized by following main features:
1. Universally acceptance principles - Scientific principles represents basic truth about a

particular field of enquiry. These principles may be applied in all situations, at all time &
at all places. E.g. - law of gravitation which can be applied in all countries irrespective of
the time.
Management also contains some fundamental principles which can be applied universally
like the Principle of Unity of Command i.e. one man, one boss. This principle is
applicable to all type of organization - business or non-business.
2. Experimentation & Observation - Scientific principles are derived through scientific

investigation & researching i.e. they are based on logic. E.g. the principle that earth goes
round the sun has been scientifically proved.
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Management principles are also based on scientific enquiry & observation and not only
on the opinion of Henry Fayol. They have been developed through experiments &
practical experiences of large no. of managers. E.g. it is observed that fair remuneration to
personal helps in creating a satisfied work force.
3. Cause & Effect Relationship - Principles of science lay down cause and effect
relationship between various variables. E.g. when metals are heated, they are expanded.
The cause is heating & result is expansion.
The same is true for management, therefore it also establishes cause and effect
relationship. E.g. lack of parity (balance) between authority & responsibility will lead to
ineffectiveness. If you know the cause i.e. lack of balance, the effect can be ascertained
easily i.e. in effectiveness. Similarly if workers are given bonuses, fair wages they will
work hard but when not treated in fair and just manner, reduces productivity of
organization.
4. Test of Validity & Predictability - Validity of scientific principles can be tested at any
time or any number of times i.e. they stand the test of time. Each time these tests will give
same result. Moreover future events can be predicted with reasonable accuracy by using
scientific principles. E.g. H2 & O2 will always give H2O.
Principles of management can also be tested for validity. E.g. principle of unity of
command can be tested by comparing two persons - one having single boss and one
having 2 bosses. The performance of 1st person will be better than 2nd.
It cannot be denied that management has a systematic body of knowledge but it is not as exact as
that of other physical sciences like biology, physics, and chemistry etc. The main reason for the
inexactness of science of management is that it deals with human beings and it is very difficult to
predict their behavior accurately. Since it is a social process, therefore it falls in the area of social
sciences. It is a flexible science & that is why its theories and principles may produce different
results at different times and therefore it is a behavior science. Ernest Dale has called it as a Soft
Science.
Q.5 Describe how organizations create and communicate their organizational
Structure.
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Below is to how organizations create and communicate their organizational structure:
Different organizations use different structures, often based on the size of the organization or
whether it has multiple divisions operating autonomously. Depending on the reason a company
chooses a specific organizational structure, lines of communication must help facilitate not only
accurate messaging, but also timely responses to prevent missed opportunities or late delivery of
work.
Types of Organizational Structures
While a variety of organizational structures exist, small businesses generally use a flat or
hierarchical structure, based on their sizes. A flat structure is one that allows a few key staff
members to work directly with the owner rather than through a vertical chain of command. As
companies grow and add departments and employees, they create a hierarchy with directors,
managers, staff workers and contractors. If a small business has multiple locations or different
divisions, the company might assign some functions to each location, with a corporate
headquarters providing centralized administrative support. Some businesses use a matrix
structure, which creates project groups who share multiple department managers, requiring more
multi-tasking and careful coordination of communications on the part of top management.
Lines of Communications
The more employees a business has, the more ways communications occur, not just in terms of
what methods people use but also where and how they send messages. Lines of communication
can include a chain-of-command that requires employees to communicate only with their direct
superior rather than bringing comments or concerns directly to leaders higher on the org chart.
One of the disadvantages of a strict chain of command is that employees might "cocoon" in their
departments, creating less interaction and exchanges of ideas with co-workers in other areas.
Other lines of communication might require specific messaging procedures such as submitting
expense requests before making a purchase, getting work schedule swaps approved by a
manager, or requiring sales contracts to go from sales representatives to a sales manager, then to
the accounting department, then to the production department.
Business Communications Structure

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Business use specific communications methods to streamline reporting, such as requiring

managers to use the same employee evaluation form, having employees fill out the same expense
reimbursement form or mandating that vacation requests be submitted to direct managers by a
specific deadline. This type of communication structure allows those receiving memos, reports
and proposals to quickly get to the relevant information and find the information they need
because the information is presented in the same way every time.
Restraints on Communications
By instituting specific lines of communications, a business can prevent the chaos that results
when workers continually go over the heads of or around their bosses. It also reduces problem
caused by executives assigning work to staff members without their managers’ knowledge, or by
customers calling and speaking to employees other than their sales rep. While a manager might
have to follow a director’s request that a specific employee perform a specific task, by having the
director go the manager, rather than the subordinate, the manager has a chance to shift some of
that subordinate’s workload or to change other deadlines.
Strict lines of communication help to ensure that key employees aren’t accidentally left out of
important communications. Mandating that employees put communications in writing prevents
miscommunications and he-said/she-said accusations.
4 Types of Organizational Structures
What does it take for companies and organizations to be successful?

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There are many answers to that question. Some would say it’s having an effective mission; others
would say it’s selling a product or service that’s in high demand. Ultimately, it’s a company’s
organizational structure that helps determine success. An organizational structure is defined as “a
system used to define a hierarchy within an organization. It identifies each job, its function and
where it reports to within the organization.” A structure is then developed to establish how the
organization operates to execute its goals. There are many types of organizational structures.
There’s the more traditional functional structure, the divisional structure, the matrix structure and
the flat archly structure. Each organizational structure comes with different advantages and
disadvantages and may only work for companies or organizations in certain situations or at
certain points in their life cycles. “Poor organizational design and structure results in a
bewildering morass of contradictions: confusion within roles, a lack of coordination among
functions, failure to share ideas, and slow decision making bring managers unnecessary
complexity, stress and conflict,” wrote Gill Corkindale in the Harvard Business Review. “Often
those at the top of an organization are oblivious to these problems or, worse, pass them off as
challenges to overcome or opportunities to develop.”
Ultimately, it’s important to get a group’s organizational structure correct in order for its aims to
be successful.
Types of Organizational Structures
Functional
If you’ve had a job, you likely worked in a functional organizational structure.
The functional structure is based on an organization being divided up into smaller groups with
specific tasks or roles. For example, a company could have a group working in information
technology, another in marketing and another in finance. Each department has a manager or
director who answers to an executive a level up in the hierarchy who may oversee multiple
departments. One such example is a director of marketing who supervises the marketing
department and answers to a vice president who is in charge of the marketing, finance and IT
divisions. An advantage of this structure is employees are grouped by skill set and function,
allowing them to focus their collective energies on executing their roles as a department. One of
the challenges this structure presents is a lack of inter-departmental communication, with most
issues and discussions taking place at the managerial level among individual departments. For
example, one department working with another on a project may have different expectations or
details for its specific job, which could lead to issues down the road. In addition, with groups
paired by job function, there’s the possibility employees can develop “tunnel vision” — seeing
the company solely through the lens of the employee’s job function.
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Divisional
Larger companies that operate across several horizontal objectives sometimes use a divisional
organizational structure. This structure allows for much more autonomy among groups within the
organization. One example of this is a company like General Electric. GE has many different
divisions including aviation, transportation, currents, digital and renewable energy, among
others. Under this structure, each division essentially operates as its own company, controlling its
own resources and how much money it spends on certain projects or aspects of the division.
Additionally, within this structure, divisions could also be created geographically, with a

company having divisions in North America, Europe, East Asia, etc.
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This type of structure offers greater flexibility to a large company with many divisions, allowing
each one to operate as its own company with one or two people reporting to the parent
company’s chief executive officer or upper management staff. Instead of having all programs
approved at the very top levels, those questions can be answered at the divisional level. A
downside to this type of organizational structure is that by focusing on divisions, employees
working in the same function in different divisions may be unable to communicate well between
divisions. This structure also raises issues with accounting practices and may have tax
implications.
Matrix
A hybrid organizational structure, the matrix structure is a blend of the functional organizational
structure and the projectized organizational structure. In the matrix structure, employees may
report to two or more bosses depending on the situation or project. For example, under normal
functional circumstances, an engineer at a large engineering firm could work for one boss, but a
new project may arise where that engineer’s expertise is needed. For the duration of that project,
the employee would also report to that project’s manager, as well as his or her boss for all other
daily tasks. The matrix structure is challenging because it can be tough reporting to multiple
bosses and knowing what to communicate to them. That’s why it’s very important for the
employees to know their roles, responsibilities and work priorities. Advantages of this structure
is that employees can share their knowledge across the different functional divisions, allowing
for better communication and understanding of each function’s role. And by working across
functions, employees can broaden their skills and knowledge, leading to professional growth
within the company. On the other hand, reporting to multiple managers may add confusion and
conflict between managers over what should be reported. And if priorities are not clearly defined,
employees, too, may get confused about their roles.
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Flatarchy
While the previous three types of organizational structures may work for some organizations,
another hybrid organizational structure may be better for startups or small companies. Blending a
functional structure and a flat structure results in a flatarchy organizational structure, which
allows for more decision making among the levels of an organization and, overall, flattens out
the vertical appearance of a hierarchy. The best example of this structure within a company is if
the organization has an internal incubator or innovation program. Within this system, the
company can operate in an existing structure, but employees at any level are encouraged to
suggest ideas and run with them, potentially creating new flat teams. Lockheed Martin, according
to Forbes, was famous for its skunkworks project, which helped develop the design of a spy
plane. Google, Adobe, LinkedIn and many other companies have internal incubators where
employees are encouraged to be creative and innovative in order to promote the company’s
overall growth. A benefit of this system is it allows for more innovation company-wide, as well
as eliminating red tape that could stall innovation in a functional structure. As for the negatives,
the structure could be confusing and inconvenient if everyone involved doesn’t agree on how the
structure should be organized.
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Q. 6. What do you know about the dynamics of HRM environment? And also discuss in detail
about the fundamental of HRM?
The Dynamic Human Resource Management Environment

Human resource management. Such factors are part of either
The firm’s external Environment or its internal Environment. The firm often has little, if any,
control over How the external environment Affects management of its Human resources. In
addition, there are certain Interrelationships that complicate the management of Human
resources.
I. External Environmental Factors
External Environmental factors Comprised of those factors that affect a firm’s human resources
from outside the organization’s boundaries.
a. The Labor Force
The labor force is a pool of individuals external to the firm from which the organization obtains
its workers.
The capability of a firm’s employees determines to a large extent how well an organization can
perform its mission.
b. Legal Considerations
Another significant external force affecting human resource management relates to federal, state,
and local legislation and the many court decisions interpreting this legislation. In addition, many
presidential executive orders have had a major impact on human resource management.
c. Society
Society may also exert pressure on human resource management. If a firm is to remain
acceptable to the general public, it must be capable of accomplishing its purpose in line with
societal norms. Social responsibility is an implied, enforced, or felt obligation of managers,
acting in their official capacities, to serve or protect the interests of groups other than themselves.
d. Unions
Union is a group of employees who have joined together for the purpose of dealing collectively
with their employer. Although unions remain a powerful force, union membership as a
percentage of the nonagricultural workforce slipped from 33 percent in 1955 to 9.5 percent today.
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e. Shareholders
The owners of a corporation are concerned about shareholders. Because shareholders have
invested money in a firm, they may at times challenge programs considered by management to be
beneficial to the organization.
f. Competition
For a firm to succeed, grow, and prosper, it must be able to maintain a supply of competent
employees. Other organizations are also striving toward that objective.
7. Describe in detail about the procedure of job analysis in HRM department in any
Organization?
Job analysis in human resource management (HRM) refers to the process of identifying and
determining the duties, responsibilities, and specifications of a given job. It encompasses the
collection of data required to put together a job description that will attract the right person to fill
in the role. Job analysis in HRM helps establish the level of experience, qualifications, skills and
knowledge needed to perform a job successfully. Now, there are obviously a vast number of
different techniques that facilitate the job analysis process that HR can use to ensure an employee
is performing at their best (or if they are fit for the role at all). However, we can really boil these
down to 3 job analysis methods that every HR professional needs to know.
Job Analysis Method: Interview
With this job analysis method, job analysts conduct interviews with incumbents to collect
information about their tasks and how they are coping with them. Interviews can be structured
and unstructured depending on your corporate culture.
Structured interviews follow a systematic approach where employees are interviewed accurately
and consistently, following a preset format. In a structured interview, you typically see that:
 All interviewees are asked the same questions in the same order.
 Interviewers record, compare and evaluate answers against standardized criteria.
 The interview process remains the same even if the interviewer changes.
Thanks to this consistency, structured interviews have a high level of reliability and validity.
Unstructured interviews, on the other hand, unravel without a preset structure. The interview
process is carried out as a conversation with no specific questions predefined. Nevertheless, the
interviewer should make the purpose and focus of the interview clear to the employees. Namely,
that the purpose of the interview is to understand their job role better in order to improve or
modify their role. In an unstructured interview, you typically see that:
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 Interviewees may receive different questions or the same questions may be asked in a
different order.
 Interviewers don’t always use standardized criteria for recording, comparing and
evaluating answers.
 The interview process varies depending on the interviewer.
Using interviews as the only job analysis method has several drawbacks, too. One disadvantage
of using the interview job analysis method is that employees may exaggerate or omit vital details.
To overcome this possible issue, HR professionals and job analysts should interview more than
one employee in the same position (if applicable). This will provide more reliable results and
data for the job analysts and HR professionals to work with.
Think of this as a scientific study where you need a larger pool of clients to make the results
solid. You can't determine how a role works with only one person's opinion - you need a larger
sample size to see what is the same and different across the board.
Job Analysis Method: Questionnaires
As the name suggests, the questionnaire job analysis method requires employees, supervisors,

and managers to fill out forms, namely questionnaires. It’s one of the most widely used job
analysis methods because it’s inexpensive to create and easy to distribute to numerous
individuals at a faster rate. Questionnaires can have different question forms, such as open-ended
questions, multiple choice, checklists or a mix of all of them.
Questionnaires used for job analysis collect data about all aspects that influence how a job is
completed, including both internal and external factors. These are the most common areas that
questionnaires focus on:
 Knowledge, skills, experience, and qualifications

 Duties performed daily
 Duties performed less frequently
 Equipment and materials used for duties
 Time spent on different job duties
 Physical and emotional input
 Level of job satisfaction
 Salary and compensation
 Work conditions
 Additional comments
Although questionnaires help begin the job analysis process, they are not enough to collect data
that is both reliable and useful. They merely scratch the surface of job analysis. In fact,
questionnaires do have several disadvantages, such as question misinterpretation, high non-
response rates and inaccurate information given by participants. And inaccurate data is the
complete opposite of what job analysts aim for.
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Going back to the scientific example. Questionnaires create that larger sample size but do so in a
way that is less authentic and, therefore, less impactful.
It’s important that job analysis in HRM yields reliable information. Therefore, it’s best to
combine questionnaires with other job analysis methods. This will help job analysts retain and
improve work conditions for current incumbents, as well as create a job description that will
attract the right talent for future openings.
Job Analysis Method: Observation

The observation method enables job analysts to observe employees in their daily routines. The
information collected through observation is extremely useful and reliable since it’s via first-hand
knowledge. Observation is the only job analysis method that allows the job analyst or HR
professional to directly obtain the data, whereas other job analysis methods collect data indirectly
and in an orchestrated environment.
When using this particular method, a job analyst observes an employee and records what they do
and do not do. This helps job analysts and HR professionals reach a more reliable conclusion.
However, even the observation method comes with flaws. Some of the disadvantages of using the
observation job analysis method include:
 Distortion of information if an employee is aware of the observation.

 Awareness may affect the work output during the observation.
 Not all job duties and reactions can be observed in the set time frame.
 Higher managerial and executive roles may be difficult to observe fully.
So, in other words, this process allows the analyst to create a wide-reaching sample pool while
also understanding the factors at work when observing employees. It stands to reason that an
employee will work harder when they know they are being analyzed - though it still gives the
analyst a good framework to judge how well the role is being performed.
What Is the Purpose of Job Analysis in HRM?
Job analysis plays a significant part in the structure of HR departments. The job analysis
process identifies the need for talent and recognizes the type of talent needed to fill it. Apart from
assisting the preparations of a succinct job description, the purpose of job analysis in HRM
extends to other areas in the HR department. Here are some of the main purposes of job analysis
in HRM:
 Job designing and redesigning – By frequently using these three job analysis methods,
HR managers, and job analysts can work to improve job specifications, increase professional
output and incite company growth.
 Human resource recruitment and selection – Job analysis defines the type of person
that is needed for a particular position. Job analysis data highlights the level of education,
qualifications, experience, and skills that need to be held by ideal candidates. Additionally, job
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analysis helps develop advertisements, salary levels, interview questions, selection tests,
evaluation forms, and orientation materials for new recruits.
 Determining training needs – Job analysis processes help HR professional develop
adequate training procedures. Job analysis can determine training content, assessment tests,
training equipment and methods of training.
 Establishing a compensation management policy – A well-defined compensation
management policy helps organizations retain, motivate and guide current talent, while also
attracting new talent. Job analysis processes aid HR professionals to develop an effective
compensation management policy that focuses on elements such as pay scale, bonus and
incentive plans, work environment and restructuring positions as needed.
 Conducting performance reviews – Using data from the job analysis process is
necessary for when HR professionals carry out performance reviews. Job analysis clearly defines
the objectives of a job and sets scalable goals for employees that reflect their performance.
Job analysis in HRM takes a lot of planning, structuring and analysis. However, the job analysis
process is vital to the growth and success of an organization. Without the proper use of job
analysis methods, HR professionals would have little to no success in talent acquisition and
filling in the gaps within an organization.
8. Differentiate the difference between job description and job analysis and what are their duties
and responsibilities?
Difference Between Job Analysis and Job Description:
Job Analysis can be understood as the process of gathering information related to the specific
job. The information encompasses knowledge, skill, and ability, possessed by the incumbent, to
perform the job effectively. It is helpful in the preparation of job description and job
specification. Job description is a document indicating what a job covers, i.e. tasks,
responsibilities, duties, powers and authorities, attached to a job.
In finer terms, Job Analysis means an in-depth examination and evaluation of a particular Job.
Conversely, Job Description is a statement that characterizes of a particular job.
At present, these two concepts have gained much importance because of extreme competition; all
the organization wants to put the right man at the right job. But it can only be possible if you
thoroughly investigate the details regarding the Job. so, here in this article, we will explain the
difference between job analysis and job description, in tabular form.
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Comparison Chart:
BASIS FOR
JOB ANALYSIS JOB DESCRIPTION
COMPARISON
A deep research on a A comprehensive job

particular job to ascertain summary depicting the job
Meaning
every small details about it, contents in short but in an
is known as Job Analysis. exhaustive manner.
What is it? Process Statement

A process of determining
all the necessary A concise statement of
Concept
requirements and aspects what a job demands.
of a job.
Tasks, responsibilities,
skill, abilities, working Duties and Responsibilities,
Incorporates conditions and authority, purpose and
adaptabilities of a certain scope of a specific job.
job.
Mode Oral or Written Written
Helpful in ascertaining
Helpful in Recruitment and whether an applicant is
Advantage
Selection of manpower eligible as per the set
standards.
Definition of Job Analysis
Job Analysis is a detailed examination and evaluation of the job to determine the necessary
information regarding the nature of the job. It includes thorough study, observation, and reporting
of what the job involves, qualifications of the job holder, working conditions, abilities, skills,
competencies, duties, responsibilities, etc. Job Description and Job Specification are the two
products of Job Analysis. It is performed by an expert known as Job Analyst.
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Uses of Job Analysis
Information for job analysis may be collected through interviews with incumbents and
supervisors, questionnaires, surveys, position analysis, checklists, etc.
Job Analysis is carried out to pick the appropriate candidate from some applicants who is best
suited for the concerned job. The analysis may include research of necessary skills, knowledge,
and qualifications required for doing a job because every job is different in itself. The importance
of Job Analysis in an organization is as under:
 Performance Appraisal
 Compensation Management
 Job Re-engineering
 Health and Safety
 Job Evaluation
Definition of Job Description
Job Description is a written document which narrates the job contents in a systematic manner
describing, what are the tasks performed by a worker? And how they are to be performed? It is
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prepared on the basis of Job Analysis and therefore, the effectiveness of Job Description depends
on how well the procedure of Job Analysis is accomplished.
Job Description is an explanatory prospectus which records the job facts which are appropriate as
well as authorized. It usually contains the following content:
 Introduction of job
 Designation
 Job Summary
 Duties and Responsibilities
 Training details
 Authorities
 Salary Range
 Reporting authority
 Performance Standards
Job Description is used as an essential tool for eliminating the unfit applicants for the concerned
job. Apart from that, it helped the organization to set standards for choosing the appropriate
candidate for the job by asking relevant questions at the time of interview.
9. Describe in detail about the procedures of recruitment in any organization and briefly discuss
about job advertisement with examples?
Recruitment is a process of identifying, screening, shortlisting and hiring potential resource for
filling up the vacant positions in an organization. It is a core function of Human Resource
Management.
Recruitment is the process of choosing the right person for the right position and at the right
time. Recruitment also refers to the process of attracting, selecting, and appointing potential
candidates to meet the organization’s resource requirements.
THE RECRUITMENT PROCESS
Organizations, depending on their structure and specific needs, may have special procedures that
they integrate into their recruitment process. For purposes of discussion, however, we will take a
look at the general approach of a recruitment process, one that is used by most organizations or
companies across various industries.
Many say that recruitment begins when the job description is already in place and the hiring
managers begin the process of actually looking for candidates. However, if we are looking at it
more holistically, the process begins way earlier than that.
Prior to the recruitment process, the organization must first identify the vacancy and evaluate the
need for that position. Will the organization suffer if that vacancy is not filled up? Is there really
a need for that open position to be occupied by someone? If the answer is affirmative, then you
can proceed to the recruitment.
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Step 1: Conduct of a job analysis

Basically, this step will allow the human resources manager, hiring manager, and other members
of management on what the new employee will be required to do in the position that is currently
open for filling up. This has to be done in a systematic manner, which is what the job analysis is
for. According to human resource managers, the position or job description is the “core of a
successful recruitment process”. After all, it is the main tool used in developing assessment tests
and interview questions for the applicants.
What does this stage entail?
a. Build a job description.
Before anything else, the organization must first know exactly what it needs. Or who it needs. It
could be that the organization deemed a need for a job that is not included in the current roster of
jobs. Hence, the need to create a new one.
Job analysis involves identification of the activities of the job, and the attributes that are needed
for it. These are the main parts that will make up the job description. This part has to be done
right, since the job description will also be used in the job advertisement when it is time to source
out talents.
The job description generally includes the following:
 Title and other general information about the position
 Purpose of the position in the unit, department, and organization as whole
 Essential functions of the job or position
 Minimum requirements or basic qualifications
b. Review the job description.
Once the job description has been created, it is a good idea to review it for accuracy, and to
assess whether it is current or not. Also, in cases where job descriptions are already in place,
there is a need to revisit them and check their accuracy and applicability with respect to the status
quo. What if the job description is already outdated? A review will reveal the need to update the
job description, for current applicability.
There are three positive outcomes from conducting a review of the job description:
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 To ensure continuous improvement of the organizational structure. This can be an

efficient way of conducting organizational audit, to determine which jobs are redundant and thus
no longer needed, and which ones are needed.
 To evaluate competencies for each position. Jobs evolve. In as much as circumstances

and work conditions change, so will the requirements for the job. It is possible that a job may
require a new competency from the worker that it did not need before. By evaluating the
competencies, the impact of the job within the organizational structure is ensured.
 To evaluate the wages or compensation for each position. Without management

knowing it, the worker or employee performing a specific job may be undercompensated, leading
to dissatisfaction. By reviewing the job description, management can assess whether the job is
getting paid an amount that is commensurate to the skills and competencies required.
Finally, you should then have an effective job description ready for attracting talent.
c. Set minimum qualifications for the employee who will do the job.
These are the basic requirements that applicants are required to have in order to be considered for
the position. These are required for the employee to be able to accomplish the essential functions
of the job. Therefore, they should be relevant and directly relate to the identified duties and
responsibilities of the position.
The organization may also opt to include other preferred qualifications that they are looking for,
on top of the minimum or basic qualifications.
d. Define a salary range.
The job must belong to a salary range that is deemed commensurate to the duties and
responsibilities that come with the position. Aside from complying with legislation (such as laws
on minimum wages and other compensation required by law), the organization should also base
this on prevailing industry rates.
For example, if the position is that of a computer programmer, then the salary range should be
within the same range that other companies within the same industry offer.
Step 2: Sourcing of talent

This is the stage where the organization will let it be known to everyone that there is an open
position, and that they are looking for someone to fill it up.
Before advertising, however, the organization must first know where to look for potential
candidates. They should search out the sources where the persons that can potentially fill the job
are going to be available for recruitment. That way, they will know where to direct their
advertising efforts.
Various methods are employed by organizations in order to advertise the open position.
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 Networking. Word-of-mouth is the best form of advertising, and when it takes the form
of networking, it becomes more effective. In recruitment, this is often done through
representatives of the company attending college and career fairs, letting them know about the
opening in their organization. This is a tactic employed by large software and tech companies
that want to hire fresh, young and brilliant minds into their organization. They personally visit
colleges, targeting the top students. They also use their connections within the industry to attract
the attention of talents with the highest potential.
 Posting. Recruitment often involves the application of candidates both from within and
outside the company. Thus, in order to attract the best possible talents, it is recommended that the
posting of the open positions be made internally and externally. Internal posting usually takes the
form of the vacancy announcement being displayed in bulletin boards and other areas within the
business premises where the employees and visitors to the company are likely to see it. Posting
externally may be in the form of flyers being distributed, or vacancy notices being displayed in
other areas outside of the business premises. Companies with websites often post open positions
on their company site, while some also use job boards.
 Print and media advertising. One classic example of this would be the Classifieds
section of the local daily or weekly newspaper. Companies looking for people to fill up open
positions make the announcement in the newspapers, providing the qualifications and the contact
details where prospective applicants may submit their application documents. When trying to
attract the attention of suitable candidates, the organization makes use of various tools and
techniques. If it wants to get the best candidates, then it should not be haphazard about things.
 Developing and using proper techniques. The company may include various offerings
in order to attract the best candidates. Examples are attractive salaries, bonus and incentive
packages, additional perks and opportunities that come with the job, proper facilities at work, and
various programs for development.
 Using the reputation of the company. Perhaps the best publicity that the company can
use to attract candidates is its own reputation in the market. If the company is known for being a
good employer – one that aids in its employees’ personal and professional growth and
development – then it is a good point for the company to capitalize on in advertising its open
positions.
Step 3: Screening of applicants

This is most probably the part of the recruitment process that requires the most amount of work.
This is where the applicants’ skills and personalities are going to be tested and evaluated, to
ascertain whether they are a good fit for the job and its description.
 Preliminary screening. It is often the case, especially in large organizations, where one
open position will receive hundreds to thousands of applications from candidates. In an ideal
world, it would be good for the hiring managers to be able to interview each and every single one
of them. However, that is also impractical, and very tedious. Not really advisable, especially if
the organization is in need of manpower in the soonest possible time. Thus, there is a need to
shorten the list of candidates, and that is done through a preliminary screening. Usually, this is
21
conducted by going through the submitted resumes and choosing only those that are able to meet
the minimum qualifications. It is possible that this would shorten the list of applicants, leaving a
more manageable number.
 Initial interview. The candidates who were able to pass the preliminary screening will
now undergo the initial interview. In most cases, the initial interview is done through phone.
There are those who also conduct interviews through videos using their internet connection.
Often a basic interview, this may involve the candidates being asked questions to evaluate or
assess their basic skills and various personal characteristics that are relevant to the open position.
 Conduct of various tests for recruitment. The hiring managers may conduct tests on the
skills of the candidates and how they use these skills and talents. Other tests that are often
employed are behavioral tests and personality assessment tests.
 Final interview. Usually depending on the number of candidates for the job, and the
preference of the hiring managers and senior management, a series of interviews may be
conducted, gradually narrowing down the list of candidates. This may go on until the company
has finally come up with a shortlist of candidates that will undergo a final interview. Often, the
final interview requires a face-to-face meeting between the candidate and the hiring managers, as
well as other members of the organization. Top management may even be involved during the
final interview, depending on the job or position that will be filled up.
 Selection. In this stage, the hiring managers, human resources representatives, and other
members of the organization who participated in the process meet together to finally make a
selection among the candidates who underwent the final interview. During the discussion, the
matters considered are:
o Qualifications of the candidates who were able to reach the last stage of the
screening process
o Results of the assessments and interviews that the final pool of candidates were
subjected to
There will be no problem if they have a unanimous decision on the candidate that the job will be
offered to. In case of varying opinions, the majority will prevail.
If they do not arrive at a decision, there may be a need to restart the recruiting process, until such
time that they are able to reach a decision that everyone will be satisfied with.
Step 4: Finalization of the job offer

The last step of the previous phase involves the selection of the best candidate out of the pool of
applicants. It is now time for the organization to offer the job to the selected applicant.
 Making the offer: To make things more formal, a representative of the company or of
the human resources department will contact the candidate and inform him that he has been
selected for the job. In this stage, complete details of the compensation package will also be
made known to the applicant.
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 Acceptance of the offer by the applicant: The applicant should also communicate his
acceptance of the offer for it to be final. Take note that, if the selected applicant does not accept
the job offer and declines it, the recruitment process will have to start all over again.
Step 5: Introduction and induction of the new employee

The moment that the applicant accepted the job offer, he has officially gone from being an
applicant to an employee of the organization. The induction process will now begin.
Usually, the beginning of the induction process is marked by the signing of the employment
contract, along with a welcome package given to the new employee. The date for the first day
that the employee will have to report for work and start working in the company will be
determined and communicated to the newly hired employee. However, it doesn’t end there. The
employee will still have to undergo pre-employment screening, which often includes background
and reference checks. When all these pre-employment information have been verified, the
employee will now be introduced to the organization.
Job Advertisement
A job advertisement is a print or electronic notification of an intent to hire someone to perform

specific work in a position at a company or organization. Employers use a job advertisement to
request applications from the public or targeted candidates. Normally, a job advertisement uses
sections that give you an overview of essential information about the job. Most job
advertisements have a specified period for you to apply. They also might have specific
application instructions for you to follow.
Importance of job advertisement

A well-crafted job advertisement will target and attract your perfect candidates and fend off all
the other candidates.
As a result, you will save time and money!
21
Job advertisement structure
Here is the structure of a great job advertisement:
10. How do organization balance labor supply and discuss in detail the procedure as well?
Human resources planning uses forecasts about product and service demand and insights about
internal labor fluctuations to measure the appropriate supply of labor for a firm's operations.
Being able to correctly approximate labor availability and needs is crucial. Labor surplus or
shortage can be realized if the workforce does not match up with present infrastructure and
needs. Most human resources departments rely on external metrics to gauge the demand for
labor, since the ultimate cause of demand comes from consumer preferences. When consumers
demand more of a product or service, firms have an incentive to increase their output to
maximize profits. This can lead to hiring more employees and innovating to realize economies of
scale. Labor supply, on the other hand, comes from internal movement’s as much as external
factors. Transitional matrices can be used to spot employee movements over time. Businesses
need to track turnover – not just when it happens, but when it might happen. The effective supply
of labor doesn't just depend on having healthy bodies. It also requires having the requisite skills
to create and deliver the business's products and services to customers. When skills are not
available internally, they must be sought externally. Here, options are limited by the relative cost
of acquiring new skills. When new labor is expensive and skilled workers are in high demand,
21
companies may consider alternatives to hiring. The marginal cost of hiring and training an
employee must be offset by the added marginal revenue product. Human resources planning
involves strategies to address imbalances in labor supply and demand. In the face of additional
labor needs, companies can encourage overtime work, hire temporary employees, outsource,
engage in new retraining programs or find other ways to improve productivity. To reduce an
expected labor surplus, a company might downsize, implement a hiring freeze, reduce pay or
hours, or increase output.
Labor Demand Forecasting
Labor demand forecasting is crucial, as businesses don’t want a surplus of employees who are
not being fully and effectively deployed, nor do they want gaps in their employee pool which
results in reduced productivity, performance and profitability. When business owners are
considering labor demand forecasting, their first questions are likely to be:
 Where are we going as a business – what is our intended growth in the next 3-5 years (or
longer)?
 Will we be developing or expanding our services or product range?
 What technological advancements may affect what we do and will this affect our need for
differing staffing levels?
 What are our absenteeism and turnover rates like?
 Do we have sufficient management support to progress our objectives and will they be
behind the plans?
Any changes to the human resources needs within the business, should be led by the strategic
business plan and the goals for the business – not the other way around.
When undertaking labor demand forecasting there tend to be two approaches – quantitative and
qualitative. The quantitative approach is often uses a variety of statistical and mathematical
approaches to determine the needs, including indexation (forecasts determined in relation to one
or more fixed organizational indices) or trend analysis (forecasts based on the study of past
21
human resource growth). These are often complex and expensive – but a real need, especially for
larger organizations. Small and medium sized businesses often prefer to rely on qualitative
approaches to determine labor demand forecasting. These approaches tend to use experts within
the business to determine future need i.e. the employees, managers and business owners
themselves. Popular approaches include the Delphi Technique (uses problem solving and expert
consultation methods in a structured manner); managerial judgement (business owners and
managers assess their own labor requirements taking into account factors such as retirements,
promotions, new technologies etc.); and the Nominal Group Technique (using group processes to
compare predictions on the staffing needs for the future). One of the major advantages of using
qualitative methods, especially with SMEs is that the techniques used involve the people that are
likely to be affected by any changes to the business in relation to human resources practices.
Therefore, there is likely to be greater commitment and acceptance of policies and practices by
those involved. One of the downsides however is the time and cost of involving employees,
managers and business owners in the processes. Having a HR Consultant on hand, able to lead
the process and adopt the most appropriate processes to lead businesses through these processes,
can help to achieve effective forecasting of future employee needs.
Labor Supply Analysis
Once a business has forecast what it’s future requirements are likely to be, it is then important to
determine what number of employees will be needed, with what skills and when. Labor supply
may come from within the organization or outside. The first step therefore, is to do an analysis of
the skills currently within the business. If skills are not available internally, then they may need
to be sought externally. Once looking externally factors such as availability of skills within the
job market will be a major consideration.

21
Balancing the Supply and Demand
If a business is short of employees to achieve the business objectives, effective recruitment
strategies will need to be devised. Considerations will then relate to job design, career
development, flexible work options, remuneration and reward programmes.
If a business has too many employees, effective strategies will need to be created to manage
retirements, redundancies and if appropriate, dismissals.
HR Demand Forecasting
Human resource (HR) demand forecasting is the process of estimating the future quantity and
quality of people required. The basis of the forecast must be the annual budget and long-term
corporate plan, translated into activity levels for each function and department. In a
manufacturing company, the sales budget would be translated into a production plan giving the
number and type of products to be produced in each period. From this information, the number of
hours to be worked by each skilled category to make the quota for each period, would be
computed. Once the hours are available, determining the quality and quantity of personnel will be
the logical step. HR Demand forecasting must consider several factors-both external as well as
internal. Among the external factors are competition (foreign and domestic), economic climate,
laws and regulatory bodies, changes in technology, and social factors. Internal factors include
budget constraints, production levels, new products and services, organizational structure, and
employee separations. Demand forecasting is common among organizations, though they may
not do personnel-supply forecasting. There are several good reasons to conduct demand
21
forecasting. It can help: (i) quantify the jobs necessary for producing a given number of goods, or
offering a given amount of services; (ii) determine what staff-mix is desirable in the future; (iii)
assess appropriate staffing levels in different parts of the organization so as to avoid unnecessary
costs; (iv) prevent shortages of people where and when they are needed most; and (v) monitor
compliance with legal requirements with regard to reservation of jobs.
Forecasting Techniques:
HR Forecasting techniques vary from simple to sophisticated ones. Before describing each
technique, it may be stated that organizations generally follow more than one technique. The
techniques are:
1. Ratio-trend analysis
2. Regression analysis
3. Work study techniques
4. Delphi technique
5. Flow models
6. Other forecasting techniques
Ratio-trend Analysis
This is the quickest HR forecasting technique. The technique involves studying past ratios, say,
between the number of workers and sales in an organization and forecasting future ratios, making
some allowance or changes in the organization or its methods.
21
Regression Analysis
This is similar to ratio-trend analysis in that forecast is based on the relationship between sales
volume and employee size. However, regression analysis is more statistically sophisticated. A
firm first draws a diagram depicting the relationship between sales and workforce size. It then
calculates regression line – a line that cuts right through the center of the points on the diagram.
By observing the regression line, one can find out number of employees required at each volume
of sales.
Work-study Techniques
Work-study techniques can be used when it is possible to apply work measurement to calculate
length of operations and the amount of labor required. The starting point in a manufacturing
company is the production budget, prepared in terms of volumes of saleable products for the
company as a whole, or volumes of output for individual departments. The budgets of productive
hours are then compiled using standard hours for direct labor. The standard hours per unit of
output are then multiplied by the planned volume of units to be produced to give the total number
of planned hours for the period. This is then divided by the number of actual working hours for
an individual operator to show the number of operators required.
Delphi Techniques
Delphi Technique Named after the ancient Greek Oracle at the city of Delphi, the Delphi
technique is a method of forecasting personnel needs. It solicits estimates of personnel needs
21
from a group of experts, usually managers. The human resource planning (HRP) experts act as
intermediaries, summarize the various responses and report the findings back to the experts. The
experts are surveyed again after they receive this feedback. Summaries and surveys are repeated
until the experts’ opinions begin to agree. The agreement reached is the forecast of the personnel
needs. The distinguishing feature of the Delphi technique is the absence of interaction among
experts.
Flow Models
Flow models are very frequently associated with forecasting personnel needs. The simplest one is
called the Markov model. In this technique, the forecasters will:
1. Determine the time that should be covered. Shorter lengths of time are generally more accurate
than longer ones. However, the time horizon depends on the length of the HR plan which, in tum,
is determined by the strategic plan of the organisation.
2. Establish categories, also called states, to which employees can be assigned. These
categories must not overlap and must take into account every possible category to which an
individual can be assigned. The number of states can neither be too large nor too small.
3. Count annual movements (also called ‘flows’) among states for several time periods.
These states are defined as absorbing (gains or losses to the company) or non-absorbing (change
in position levels or employment status). Losses include death or disability, absences,
resignations and retirements. Gains include hiring, rehiring, transfer and movement by position
21
level.
4. Estimate the probability of transitions from one state to another based on past trends. Demand
is a function of replacing those who make a transition. There are alternatives to the simple
Markov model. One, called the semi-Markov, takes into account not just the category but also the
tenure of individuals in each category. After all, likelihood of movement increases with tenure.
Another method is called the vacancy model, which predicts probabilities of movement and
number of vacancies. While the semi-Markov model helps estimate movement among those
whose situations and tenure are similar, the vacancy model produces the best results for an
organization. Markov analysis is advantageous because it makes sense to decision makers. They
can easily understand its underlying assumptions. They are, therefore, likely to accept results.
The disadvantages include: (I) heavy reliance on past-oriented data, which may not be accurate in
periods of turbulent change, and (ii) accuracy in forecasts about individuals is sacrificed to
achieve accuracy across groups.
Other Forecasting Techniques
New venture analysis will be useful when new ventures contemplate employment planning. This
technique requires planners to estimate HR needs in line with companies that perform similar
operations. For example, a petroleum company that plans to open a coal mine can estimate its
future employment needs by determining employment levels of other coal mines.
11. Discuss in detail about the difference between career developments with employee
development?
Employee development and career development sound like similar concepts, but key distinctions
exist. Employee development typically refers to a company's efforts to train and develop an
employee for internal benefits. Career development generally refers to personal efforts by an
employee to learn and develop new skills that he can use to earn more income, gain promotions
and change careers.
Career Development
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Career development programs should map out different career pathways for each employee
who’s enrolled and will consider where each employee is currently in their desired career and
what he or she needs to do to achieve the long-term career pathway that he or she desires.
This type of program is typically best suited for individuals who know the future title or level of
responsibilities they want to own at your organization. For instance, someone might start out as a
general sales representative with your organization and state the desire to manage an entire sales
region one day. So, an individual career plan will be developed for him or her that lays out what
he or she needs to do and learn in order to be an effective district sales manager in the future.
Employee Development
Employee development programs more often focus on what types of skills and learning
opportunities each individual employee needs to learn or practice. Such learning and
development opportunities might focus on desired future roles but mostly focus on upgrading an
employee’s current skill set for his or her existing role. Sometimes this type of development can
include refresher trainings, as well as training opportunities that encompass newer skills that are
becoming more relevant to a particular occupation or role. For instance, whenever new safety
guidelines and regulations are made, operations managers in factories need to learn about what
they are.
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Business Administration & HR 2017-2019

Prepared by: hamad khan

Production is the exploitation of available economic resources to create things that satisfy

Four Factors of Production:

1. Engage Leaders to Improve Corporate Social Responsibility

2. Identify Your Purpose

Tip: Read up on sustainability efforts by major corporations, such as those in the Corporate

3. Set Goals for CSR Programs

4. Educate Employees on CSR Activities to Get Engagement

5. Facilitate Employee Project Ownership

6. Celebrate Achievements in CSR

7. Share the Knowledge

Find potential projects.

Q.3 Discuss four sources of financing for starting up a small business.

Following are four source of financing for starting up a small business:

1. Friends and family

5. Angel Investors and Venture Capitalists

‘Criticism Comes Easier than Craftsmanship’: Pliny the Elder

Organizing others’ talents

1. Practical Knowledge: Every art requires practical knowledge therefore learning of theory

Management as both Science and Art

Science is characterized by following main features:

1. Universally acceptance principles - Scientific principles represents basic truth about a

2. Experimentation & Observation - Scientific principles are derived through scientific

Q.5 Describe how organizations create and communicate their organizational

Below is to how organizations create and communicate their organizational structure:

Types of Organizational Structures

Business Communications Structure

Business use specific communications methods to streamline reporting, such as requiring

What does it take for companies and organizations to be successful?

Types of Organizational Structures

Additionally, within this structure, divisions could also be created geographically, with a

The Dynamic Human Resource Management Environment

I. External Environmental Factors

a. The Labor Force

Job Analysis Method: Interview

Job Analysis Method: Questionnaires

As the name suggests, the questionnaire job analysis method requires employees, supervisors,

 Knowledge, skills, experience, and qualifications

Job Analysis Method: Observation

 Distortion of information if an employee is aware of the observation.

What Is the Purpose of Job Analysis in HRM?

Difference Between Job Analysis and Job Description:

A deep research on a A comprehensive job

What is it? Process Statement

Definition of Job Analysis

Uses of Job Analysis

Definition of Job Description

THE RECRUITMENT PROCESS

Step 1: Conduct of a job analysis

What does this stage entail?

a. Build a job description.

The job description generally includes the following:

 Title and other general information about the position

 Purpose of the position in the unit, department, and organization as whole

 Essential functions of the job or position

 Minimum requirements or basic qualifications

b. Review the job description.

 To ensure continuous improvement of the organizational structure. This can be an

 To evaluate competencies for each position. Jobs evolve. In as much as circumstances

 To evaluate the wages or compensation for each position. Without management

d. Define a salary range.