AHR REVIEWER FINALS:

Organizational Structure Types:

1) Hierarchical Structure
- In a hierarchical organization structure, employees are grouped with every employee having one clear supervisor. The
grouping is done based on a few factors, hence many models derived from this.

2) Matrix Structure
It is a type of organizational management in which people with similar skills are pooled for work assignments, resulting in
more than one manager to report to (sometimes referred to as solid line and dotted line reports, in reference to traditional
business organization charts).

3) Horizontal/Flat Structure
This is an organizational chart type mostly adopted by small companies and start-ups in their early stage. The most
important thing about this structure is that many levels of middle management are eliminated. This enables employees to
make decisions quickly and independently. Thus a well-trained workforce can be more productive by directly getting
involved in the decision-making process.

4) Divisional Structure
Divisional org chart structure is the multi-divisional structure. It’s also known as M-form. The main advantage of the
divisional structure is the independent operational flow, that failure of one company does not threaten the existence of the
others.

5) Line Organizational Structure

Line organizational structure is one of the simplest types of organizational structures. Its authority flows from top to
bottom. Unlike other structures, specialized and supportive services do not take place in these organizations. The main
advantage of a line organizational structure can be identified as the effective communication that brings stability to the
organization.

STAFFING:
Staffing is the process of hiring eligible candidates in the organization or company for specific positions. In management,
the meaning of staffing is an operation of recruiting the employees by evaluating their skills, knowledge and then
offering them specific job roles accordingly. Let us find out more about what is Staffing and what it entails along with its
functions and characteristics.

STAFFING -Is defined as filling, and keeping filled, position in the organization structure. It involves securing and
developing people to perform the jobs created by the organizing function.

What is Staffing? Staffing

-Definition: Staffing can be defined as one of the most important functions of management. It involves the process of
filling the vacant position of the right personnel at the right job, at right time. Hence, everything will occur in the right
manner.

It is a truth that human resource is one of the greatest for every organization because in any organization all other
resources like- money, material, machine etc. can be utilized effectively and efficiently by the positive efforts of human
resource.

Therefore, it is very important that each and every person should get right position in the organization so as to get the
right job, according to their ability, talent, aptitude, and specializations so that it will help the organization to achieve the
pre-set goals in the proper way by the 100% contribution of manpower. Thus it can be said that it is staffing is an
essential function of every business organization. From this, we can understand what is Staffing?
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RECRUITMENT & SELECTION -As a single process is the initial and delicate subfunction of staffing. To start with, an
organization should be in a position to attract qualified applicants.

A. EMPLOYEE RECRUITMENT – Is the process of generating a pool of qualified applicants for organization job vacancies.
It involves seeking and attracting a supply of people from which qualified candidates for job vacancies can be selected.

Two majors categories:

 Internal sources
 External sources

A.1 Internal Sources- When recruiting internally, vacancies are advertised only within the organization, usually on a job-
posting bulletin board.

A.2 External Sources- Various external recruiting sources are available. These sources include computerized online job
announcements, private and public employment agencies, temporary employment services, and etc.

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B. Employee Selection- Is the process of choosing individuals who have relevant qualification to fill jobs in an
organization.

B.1 Steps in Selection Process

 Preliminary Screening from application blank, resume, and etc.

 Preliminary Interview
 Testing
 Reference checks
 Employment interview
 Physical Examination
 Personal Judgment

Employee Orientation- Is a meeting or the formal activity that specifically prepares employees for working in a particular
organization and working environment.

Training and Development- This involves the determination and analysis of employee’ training and development needs.

A. Employee Training- Training is intended to improve individual work performance by equipping people with the
knowledge, skills, and attitudes they must possess to be successful in their work.
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Functions of Staffing
 The first and foremost function of staffing is to obtain qualified personnel for different jobs position in the
organization.
 In staffing, the right person is recruited for the right jobs, therefore it leads to maximum productivity and higher
performance.
 It helps in promoting the optimum utilization of human resource through various aspects.
 Job satisfaction and morale of the workers increases through the recruitment of the right person.
 Staffing helps to ensure better utilization of human resources.
 It ensures the continuity and growth of the organization, through development managers.

Importance of Staffing:
Efficient Performance of Other Functions

- For the efficient performance of other functions of management, staffing is its key. Since, if an organization
does not have the competent personnel, then it cannot perform the functions of management like planning,
organizing and control functions properly.

Effective Use of Technology and Other Resources

- What is staffing and technology’s connection? Well, it is the human factor that is instrumental in the effective
utilization of the latest technology, capital, material, etc. the management can ensure the right kinds of
personnel by performing the staffing function.

Optimum Utilization of Human Resources

- The wage bill of big concerns is quite high. Also, a huge amount is spent on recruitment, selection, training, and
development of employees. To get the optimum output, the staffing function should be performed in an
efficient manner.

Development of Human Capital

- Another function of staffing is concerned with human capital requirements. Since the management is required
to determine in advance the manpower requirements. Therefore, it has also to train and develop the existing
personnel for career advancement. This will meet the requirements of the company in the future.

The Motivation of Human Resources

- In an organization, the behaviour of individuals is influenced by various factors which are involved such as
education level, needs, socio-cultural factors, etc. Therefore, the human aspects of the organization have
become very important and so that the workers can also be motivated by financial and non-financial incentives
in order to perform their functions properly in achieving the objectives.

Building Higher Morale

- The right type of climate should be created for the workers to contribute to the achievement of the
organizational objectives. Therefore, by performing the staffing function effectively and efficiently, the
management is able to describe the significance and importance which it attaches to the personnel working in
the enterprise.
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Characteristics of Staffing
People-Centered

- Staffing can broadly view as people-centered function and therefore it is relevant for all types of organization. It
is concerned with categories of personnel from top to bottom of the organization.

Blue collar workers (i.e., those working on the machines and engaged in loading, unloading etc.) and white collar
workers (i.e., clerical employees).

Managerial and Non Managerial personal

Professionals (eg.- Chartered Accountant, Company Secretary)

Responsibility of Manager

- Staffing is the basic function of management which involves that the manager is continuously engaged in
performing the staffing function. They are actively associated with the recruitment, selection, training, and
appraisal of his subordinates. Therefore the activities are performed by the chief executive, departmental
managers and foremen in relation to their subordinates.

Human Skills

- Staffing function is mainly concerned with different types of training and development of human resource and
therefore the managers should use human relation skill in providing guidance and training to the subordinates. If
the staffing function is performed properly, then the human relations in the organization will be cordial and
mutually performed in an organized manner.

Continuous Function

- Staffing function is to be performed continuously which is equally important for a new and well-established
organization. Since in a newly established organization, there has to be recruitment, selection, and training of
personnel. As we compare that, the organization which is already a running organization, then at that place
every manager is engaged in various staffing activities.

Therefore, he is responsible for managing all the workers in order to get work done for the accomplishment of the
overall objectives of an organization.

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Performance Appraisals- P.A. have the potential to advance or derail careers.

Employee Compensation and Benefits- Compensation refers to everything that has monetary value which employees
receive for the work they perform. Benefit package is another important part of compensation. Fringe benefits refer to
the compensation received by the employee other than salaries and wages.

Employee Relations- refers to a company's efforts to manage relationships between employers and employees. An
organization with a good employee relations program provides fair and consistent treatment to all employees so they
will be committed to their jobs and loyal to the company.
Employee Movements- Movement can result from expansion, contraction, termination and the voluntary departure of
other employees. The human resources demands of the organization and the availability of employees also drive
movement within an organization.

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Types of employee movements and their definition.

Transfer - is a change in job assignment. It may involve a promotion or demotion or no change at all in status and
responsibilities.

Purposes of transfer:

 to meet the organizational requirements

 to satisfy the employee needs
 to utilize employees better
 to make the employees more versatile
 to reduce conflicts to provide relief

Promotion- refers to upward movement of an employee from current job to another that is higher in pay, responsibility
and organizational level

When employees are equally deserving to be promoted as far as ability and performance are concerned, promotion
usually goes to the person who was seniority.

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Types of promotion
Horizontal Promotion- An advancement in pay which does not involve a move into a new job classification.

Vertical Promotion- An advancement that moves an employee into a job with higher rank or classification.

Separation- means detachment from the company. Separation of an employee from the company may either be
temporary or permanent, voluntary or involuntary.

Separation can take several forms:

Lay off- Entails the separation of the employee from the organization temporarily for economic or business reasons.

Discharge- means termination of the services of an employee but not necessarily as a punishment.

Resignation- A voluntarily separation initiated by the employee himself is called resignation.

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Retirement Termination- of service on reaching the age of superannuation is called retirement.

 compulsory retirement
 voluntarily retirement

Demotion- is the downward movement of an employee in the organizational hierarchy with lower status and pay. It is a
downgrading process where the employee suffer considerable emotional and financial loss in the form of lower rank,
power and status, and lower pay and poor working.

Causes of demotion :
 Employee unable to meet job requirements
 Organization forced demote employees because of adverse business conditions.

Reasons why employees leave their jobs:

 poor compensation
 poor working conditions
 relationship with their direct supervisors
 feeling under-appreciated or overworked.

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Leadership- it is the primary task of the leading is to ensure that all requirements of the group are met so that the goals
can be achieved.

The Characteristics of Functional Leadership

 Priority on need
 Focus on actions
 Result oriented
 Flexible leadership role
 Clear understanding of individual responsibilities
 Organizing
 Motivation
 Controlling
 Setting an example
 Guidance

Motivation- is a goal-oriented characteristics that helps a person achieve his/her objectives. It pushes an individual to
work hard at achieving his or her goals:

The 4 important aspects:

 Self-awareness
 Self management
 Social awareness
 Relationship management or social skills