Managing people

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Topics :
• Directing

• Staffing

• Development

• Compensation

• Budgeting – an Overview
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DIRECTING

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Directing :
“The Heart of the Managerial Process…”
• DIRECTING is said to be a process in which the managers
instruct, guide and oversee the performance of the workers to
achieve predetermined goals. Directing is said to be the heart of
management process.

• According to Human,
“Directing consists of process or technique
by which instruction can be issued and
operations can be carried out as originally
planned”

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STAFFING

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“STAFFING PERTAINS TO RECRUITMENT, SELECTION,
DEVELOPMENT AND COMPENSATION OF
SUBORDINATES.”

Aimed at attracting and selecting individuals for different

positions that facilitate the achievement of organizational goals

- Under-Staffing: Loses Business + Specialization

- Over-Staffing: Wasteful, Expensive & even expensive to

eliminate excess staff

Process Includes :
1) RECRUITMENT
2) SELECTION
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RECRUITMENT :
Types of Recruitment Sources -

INTERNAL SOURCE EXTERNAL SOURCE

Transfers Advertisement
Promotion Education Institutions
Up gradating Employment Agencies
Dependent of deceased Voluntary Application
family member Word of Mouth
Rec. at factory gate
Job Portals
Acquisitions & Mergers
Head Hunting & Poaching
Contractor/ Outsourcing
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THE RECRUITMENT PROCESS

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"Staffing helps in placing right men at the right job. “

JOB DESCRIPTION JOB SPECIFICATION

(EMPHASIS IS ON JOB) (EMPHASIS ON INDIVIDUAL)

Objectives of the Job Minimum qualification

Work to be Performed Listing of Skills, Education &
Skills Needed Work Experience
Responsibility Involved
Relationship of the Job to
other Jobs
Working Conditions

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Steps in Selection Process

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Steps in Staffing Process :
1) Manpower requirements-
it involves forecasting and determining the future
manpower needs of the concern.
2) Recruitment-
the concern invites and solicits applications according to
the invitations made to the desirable candidates.
3) Selection-
screening step in which the applications are screened out
and suitable candidates are appointed as per the requirements.
4) Orientation and Placement-
the appointed candidates are made familiar to the work
units and work environment through the orientation.
placement takes place by putting right man on the right
job.
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Steps in Staffing Process (continued):
5) Training and Development-
Training
- the workers are developed by providing them extra
benefits of in-depth knowledge of their functional areas.
Development
- includes giving them key and important jobs as a test or
examination in order to analyze their performances.
6) Remuneration-
- compensation provided monetarily to the employees for
their work performances.
- given according to the nature of job- skilled or unskilled,
physical or mental, etc.

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Steps in Staffing Process (continued):
7) Performance Evaluation-
- regular assessment is done to evaluate and
supervise different work units in a concern.

8) Promotion and transfer-

- a non- monetary incentive in which the
worker is shifted to a higher job demanding
bigger responsibilities as well as shifting the
workers and transferring them to different work
units and branches of the same organization.
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DEVELOPMENT
Training for the
present,
Educating for the
future,
Developing to
Lead.
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Development Methods:
Some development of the individuals’ ability can take place
- on the job (Job Rotation, assistant-to-position and committee
assignment)
- off the job (Lectures, Courses, Seminars, Simulation,Outdoor
Training) are to be used to provide the development opportunity to
the workforce.
Job Rotation:
It involves moving employees to various positions in
organization in an effort to expand their skills, knowledge and
abilities.
can be either –
Vertical job rotation is promoting a worker in to a new position.
Horizontal job rotation would be when an employee move to
jobs of a similar status.
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COMPENSATION

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 Compensation: An Overview :
The total of all rewards provided employees in return for
their services.
i. Direct Financial Compensation—
Consists of the pay that a person receives in the form of
wages, salaries, bonuses, and commissions.
ii. Indirect Financial Compensation—
All financial rewards that are not included in direct
compensation.
iii. Non-financial Compensation—
Consists of the satisfaction that a person receives from
the job itself or from the psychological and/or physical
environment in which the person works.
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MONETARY
Cash, Gift Cheques, Performance Incentive, Bonus

NON MONETARY
Stock Options, Insurance, Car, Accommodation,etc.

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 COMPENSATION MODEL :
The Compensation model should be closely knitted with following
three elements

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Why?

Compensation may be used to:

- Recruit and retain qualified employees.

- Increase or maintain morale/satisfaction.
- Reward and encourage peak performance.
- Achieve internal and external equity.
- Reduce turnover and encourage company
loyalty.
- Modify (through negotiations) practices of
unions.

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The components of a compensation system include:

Job Descriptions: A critical component of compensation and

selection systems, job descriptions define in writing the
responsibilities, requirements, functions, duties, location,
environment, conditions, and other aspects of jobs. Descriptions
may be developed for jobs individually or for entire job families.

Job Analysis: The process of analyzing jobs from which job

descriptions are developed. Job analysis techniques include the use
of interviews, questionnaires, and observation.

Job Evaluation: A system for comparing jobs for the purpose of

determining appropriate compensation levels for individual jobs or
job elements. There are four main techniques: Ranking,
Classification, Factor Comparison, and Point Method.

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 Pay Structures: Useful for standardizing compensation
practices. Most pay structures include several grades with each
grade containing a minimum salary/wage and either step
increments or grade range. Step increments are common with
union positions where the pay for each job is pre-determined
through collective bargaining.

Salary Surveys: Collections of salary and market data. May

include average salaries, inflation indicators, and cost of living
indicators, salary budget averages. Companies may purchase
results of surveys conducted by survey vendors or may conduct
their own salary surveys.

Policies and Regulations:

Compensation will be perceived as fair if it is comprised of a
system of components developed to maintain internal and external
equity.
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What are different types of compensation?

Different types of compensation include:

Base Pay
Commissions
Overtime Pay
Bonuses, Profit Sharing, Merit Pay
Stock Options
Travel/Meal/Housing Allowance
Benefits including: dental, insurance, medical,
vacation, leaves, retirement, taxes...

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Budgeting- an Overview

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FORECASTING MANPOWER DEMAND:
Future Needs of the
organization

Long Term Plan

TERM 5 years
Growth & Expansion
New Factory

Short Term Plan

TERM 1- 2 years
Adding New Shift
Replacement

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FORECASTING MANPOWER SUPPLY

Internal Labour Supply :

Skills Inventory
- Employee’s Database
Replacement Planning -
- Manager Inventory Chart identifies potential candidates to
fill specific managerial jobs.
Succession Planning
- Identifies and trains the potential candidates

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Thankyou

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