Module 4 To Module 6 POM

MODULE – IV
Planning and Decision Making
SVKM's NMIMS, Indore Campus / Dr.

Monday, November 29, 2021 1
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Meaning Of Planning
Planning means
identifying goals for
future organizational
performance and
deciding on the tasks
and use of resources
needed to attain them.

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Characteristics of Planning
Primary Function of Management
Intellectual
Goal Oriented
Future Oriented and Involves Forecasting
Dynamic
Involves Choice (from among alternatives)
Inseparable from Controlling
Has limitations
Pervasive
System Approach

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Importance of Planning
Focus at Success
Makes Sets Direction
Things No Haphazardness
Happen Economize Operations

Minimize Risk and Uncertainty
By Resource Estimation
Design, Improves Decision Making
Not Increases Teamwork

Develop Technology
Chance Basis for Control

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Application Question
Brownswick Manor is a forty year old three-star resort
in Mussoorie. In 2020, after a very bad tourist season
due to the pandemic, and a general gloomy outlook for
the days ahead, management decided to not fire the
staff, but to reduce them to sustenance pay. The staff is
otherwise free to leave the hotel. Management has
also decided to not undertake any renovation of the
hotel facilities till 2024. Hotel has decided to convert
and use thirty percent of the rooms not on per-night
basis but in a more stable tenancy arrangement. Why is
this planning crucial for Brownswick?
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Limitations of Planning
Lack of Accurate Information
Time Consuming
Expensive
May render inflexible
Environmental Constraints
False Sense of Security
Capital Investment in Fixed Assets Limits Planning

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Types of Plans
BREADTH TIME FRAME SPECIFICITY FREQUENCY
Strategic Long Term Specific Single Use
Operational Short Term Directional Standing

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Look at the plans below, and comment on the type
of plan that they are (can be multiple types)
• A plan to visit a manufacturing unit in Pithampur
on the next Saturday
• Setting up a new salt making unit in the Rann of
Kutch
• Scheduled Industrial Visits every Second Friday
• Conglomerate Diversification

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Planning of Start Ups
• https://hbr.org/2018/05/strategy-for-start-ups
(Harvard Business Review)
• https://www.forbes.com/sites/allbusiness/201
8/09/17/dont-waste-time-on-a-startup-
business-plan-do-these-5-things-
instead/?sh=1386c69b37a6

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Planning of Start Ups
• Major Areas
Identifying Environmental Opportunities and

Competitive Advantage
Researching the Venture’s Feasibility

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Planning of Start Ups - Identifying Environmental
Opportunities and Competitive Advantage
Seven Potential Sources of Opportunity (Drucker) –

 The unexpected
 The incongruous
 The process need
 Industry and market structure
 Demographics
 Changes in Perception
 New Knowledge
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Planning of Start Ups - Researching the
Venture’s Feasibility
Areas to Research –
Ideas!
Competitors
Financing
Business Plan

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Steps in Planning Process
1. Environmental Scanning – Recognition of Opportunities
2. Constructing Planning Premises
3. Forecasting Outcomes and Events
4. Determine Objectives
5. Searching Alternative Courses of Action
6. Evaluation of Alternatives
7. Selecting of Alternatives
8. Detailed Planning – Formulation of Derivative Plan
9. Implementation
10 . Review

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Decision Making - Meaning
A decision is a choice made from available alternatives.
Decision making is the process of identifying problems

and opportunities and then resolving them. Decision
making involves effort both before and after the actual
choice.

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Types of Decisions
PROGRAMMED DECISIONS NON-PROGRAMMED DECISIONS
Made in response to a situation that has Made in response to a situation that is unique,
occurred often enough to enable decision is poorly defined and largely unstructured, and
rules to be developed and applied in the has important consequences for the
future. organization.
reorder point for manufacturing Decisions to build a new factory, develop a new
inventory, selection of freight routes for product or service, enter a new geographical
product deliveries market, or relocate headquarters to another
city
One primary difference between programmed and nonprogrammed decisions relates to the
degree of certainty or uncertainty that managers deal with in making the decision.

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Conditions That Affect
the Possibility of Decision
Failure

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Decision Making Process

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Why Do Managers Make Bad
Decisions?
Being influenced by initial impressions.
Justifying past decisions.
Seeing what you want to see.
Perpetuating the status quo.
Being influenced by problem framing.
Overconfidence.
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Managerial Biases and Its Types
Attention- and Underprocessing biases (Tversky and Overprocessing biases
Memory-related Kahneman)
Constraints’ biases
Salience and Vividness Representativeness (Judgement of Category Correspondence Bias
Effects Membership, Causal Judgements, Quality of
Information, Nonregressiveness)
Context Effects Availability Using Irrelevant Analogies

(Contrast, Assimilation,
Framing)
Biased Assimilation Simulation The Perseverance Effect
Pseudodiagnosticity Anchor-and-adjustment The Dilution Effect
(https://study.com/academy/lesson/anchoring-
adjustments-causes-examples.html)
Groupthink https://www.youtube.com/watch?v=3IjIV Premature Cognitive
D-KYF4 Commitment
Overcorrection
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Primary Colours of Light
Green
Blue
Red
Primary Colours of Light

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Tough Decisions
In the United Kingdom, the National Health Service employs
1.7 million people. It is the world’s largest publicly funded
health service. There are cases when employees have found
themselves “victimized” by management for one reason or
another. A prime example is that of a senior consultant,
around 50 years old, working for a London hospital. She was
suspended on full pay for three years after raising concerns
over staffing levels in her clinic. Shortly before her suspension,
a major case of child abuse implicating the hospital hit the
headlines. As the hospital had failed to pick up on these
problems, the consultant became a whistle-blower and
exposed staffing concerns. Deeply concerned, the hospital
promptly offered her money with a gagging clause as part of
the agreement.

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Tough Decisions
She turned it down. It took the support of hundreds of
colleagues for her to eventually return to work. Petitions
that received great support from former patients had
added to the call. However, she would never work for
that hospital again. Since the incident, the consultant has
been instrumental in trying to bring about changes to the
support and protection of whistle-blowers in service.
 Was the hospital’s decision to suspend the consultant

correct? Explain why or why not.
 If you were the consultant’s line manager, how would
you have dealt with the situation?
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MODULE – V
Organizing

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“A good organizational structure does not
guarantee good performance, just as a good
Constitution does not guarantee good
Presidency.
But, poor organizational structure makes good
performance impossible.”

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Organizing – Concept
In the words of George Terry:
• Organizing is the establishing of effective

authority-responsibility relationship among
selected works, persons and workplace in
order for the group to work together
efficiently.

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Organizing - Constituents
Organization Span of Employee Organisation
Control Empowerment Culture
Organisation Centralisation
Design and
Decentralisation
Organisation Power and
Structure Authority
Departmentation Delegation
Organisational
Relationship

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Organization Structures - Concept
Organization Structure is an established, abstract pattern

of relationships among the components of an organization.
An organization structure is needed due to the following

reasons -
• It facilitates management action
• It encourages efficiency
• It provides the structure for formal communication
• It leads to optimum use of organizational resources
• A good structure stimulates creativity
• It also leads to job satisfaction.

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Types of Organization Structure
• LINE STRUCTURE
• FUNCTIONAL ORGANIZATION
• DIVISIONAL ORGANIZATION
• MATRIX ORGANIZATION
• SBU
Some Basic • VIRTUAL ORGANIZATION
Structures are • BOUNDARY-LESS ORGANIZATION

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LINE STRUCTURE
• It is the oldest type of organization, and is also
called as scalar/military organization.
• In it, there is a vertical line of authority
running from top to bottom.
• Every person is in direct chain of command.
• Orders are received from immediate boss and
subordinate is accountable to only one
superior.
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President
Vice President (Production)
Plant Manager
Foreman A Foreman B Foreman C
Workers Workers Workers

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FUNCTIONAL STRUCTURE
• Prevalent in traditional organizations,
• Groups related occupational specialties or
processes under different specializations, such
as finance, manufacturing, marketing,
accounts, research, etc.

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CEO
PRODUCTION FINANCE MARKETING HR
Store Keeping
and Media Planning
Procurement
Research Advertising
Manufacturing

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DIVISIONAL STRUCTURE
• Divided into different divisions that are relatively autonomous.
• In a conglomerate organisation, various divisions may be totally
unrelated to one another but they perform under the larger
corporate umbrella. A central headquarters, focusing on results,
coordinates and controls the activities of different divisions and
provides them necessary support services.
• Functional departments that exist within a division enable it to
accomplish divisional goals.
• The disadvantage: there is high probability of duplication of similar
activities in different divisions that can increase the overheads of
the organisation and can lead to inefficiency.

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CEO
DIVISION
DIVISION B
A
Production Marketing Finance Production Marketing Finance

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MATRIX ORGANIZATION
• Superimposing a project structure upon the
functional structure.
• It utilizes both the functional as well as
divisional chains of command simultaneously
in the same part of the organisation.

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MATRIX ORGANIZATION
• Ideal for organizations on the cutting edge of
knowledge or those which face intense competition
and have to reinvent regularly in line with the changes
in the business environment.
• Useful to develop a new product or to solve a problem
that spans across several departments.
• Allows the organization to take advantage of new
opportunities by assigning specialists from different
functional departments to work on one or more
projects being led by project managers.
• Appealing to those firms which want to speed up the
decision-making process.

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CEO
Project Head Production Marketing Finance
Project M1 Production Staff Marketing Staff Finance Staff

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STRATEGIC BUSINESS UNIT
• Independently managed division of a large
company, having its own vision, mission and
objectives, whose planning is done separately
from other businesses of the company.
• SBU and can be made fully accountable for its
profitability and operations.
• The main advantage is that the SBUs can be
provided with specific focus and their heads can
manage them with entrepreneurial zeal and
enthusiasm.
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STRATEGIC BUSINESS UNIT
• SBU operates as an independent entity, but it
has to report directly to the headquarters of
the organization about the status of its
operation.
• LG and Coca Cola follow the SBU Structure

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Head Office
SBU A SBU B SBU C
Business Business Business

Operations Operations Operations

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VIRTUAL ORGANIZATION
• Group of independent people or organizations
that come together to execute a project or
render a service to an ongoing activity and
then disperse.
• Setting up made possible by telecommuting,
off-shoring, outsourcing, strategic alliances
and customer-organization linkages.
• Strong emphasis on project execution by
cross-functional teams.

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VIRTUAL ORGANIZATION
• The members of the cross-functional teams come
together for the execution of tasks physically or
virtually and disband after the successful execution of
the task.
• They may reassemble for a new task as the same or
almost same team as the earlier one or an altogether
different team.
• The virtual organization design dissolves horizontal
barriers and enables the organization to respond
quickly to environmental changes and to spearhead
innovation to execute a task.
• E.g. Aventis, British Telecom

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BOUNDARY-LESS ORGANIZATION
• Term coined by Jack Welch during his tenure as CEO of GE;
it refers to an organization that eliminates traditional
barriers between departments as well as barriers between
the organization and the external.
• Many different types of boundaryless organizations exist.
One form is the modular organization, in which all
nonessential functions are outsourced. The idea behind this
format is to retain only the value-generating and strategic
functions in-house, while the rest of the operations are
outsourced to many suppliers. An example of a company
that does this is Toyota. By managing relationships with
hundreds of suppliers, Toyota achieves efficiency and
quality in its operations.

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• Strategic alliances constitute another form of
boundaryless design.
• In this form, two or more companies find an
area of collaboration and combine their
efforts to create a partnership that is
beneficial for both parties. In the process, the
traditional boundaries between two
competitors may be broken.

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• Finally, boundaryless organizations may involve
eliminating the barriers separating employees;
these may be intangible barriers, such as
traditional management layers, or actual physical
barriers, such as walls between different
departments. Structures such as self-managing
teams create an environment where employees
coordinate their efforts and change their own
roles to suit the demands of the situation, as
opposed to insisting that something is “not my
job.”

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Departmentation – Concept
• Departmentation is a managerial process that
forms the basis on which work or individuals
are grouped into manageable units.
• It involves grouping of similar tasks and jobs
that have been classified through work
analysis and specialization for their effective
coordination by appointing a managerial
authority over them.

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Types of Departmentation
1. Departmentation by Function or Functional
Departmentalisation
2. Departmentation by Product or Product
Departmentalisation
3. Departmentation by Geographical Regions or
Geographical Departmentalisation
4. Departmentation by Process or Process
Departmentalisation
5. Departmentation by Customer Group or Customer
Departmentalisation
6. Composite Departmentation

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Departmentation by Function
CEO
Production Marketing Finance HR

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Departmentation by Product
CEO
Reefers and
HCV LCV
Dredgers

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Departmentation by Geographical
Region
CEO
North South Central

West India East India
India India India

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Departmentation by Process
CEO
Spinning Weaving Dyeing Stitching Finishing

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Departmentation by Customer Group
CEO
Retail
Government Export
Customers

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Composite Departmentation
CEO
LCV HCV
North South North South

India India India India

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Span of Control – Concept
Span of Management or Span of
Control refers to the number of
subordinates that can be adequately
and effectively supervised by one
supervisor/manager.
Span of Control can be broadly

classified into:
• Narrow Span of Control
• Wide Span of Control

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Types of Span of Control
N
W
N N N W W W W W
N N
W W W W W W
N N
W W W W W W W

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Advantages
Narrow Span of Management Wide Span of Management
Possibility of closer supervision Lower overheads
Superiors are forced to delegate because
Less competent individuals can be managed
they are responsible for a large number of
effectively
activities
Faster communication across hierarchical
Monitoring of performance and execution levels with lesser distortions is possible
is relatively easier because of relatively flat organisation
structure
Faster communication between the
superior and immediate subordinates
Opportunity to motivate people by
promoting them to higher levels and
offering them lofty job titles.

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Disadvantages
Narrow Span of Management Wide Span of Management
creates many levels of management,
which can lead to higher chances of highly competent managers and
filtering, distortion and delay in subordinates
communication
unnecessary interference as the superiors
probability of overloading of superiors as
can get too much involved in the
they are assigned a large number of tasks
subordinates’ work
higher operational costs and increased
danger of superior’s loss of control
overheads due to many levels

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Factors Determining Span of Control
Competence of supervisor and subordinate
Degree of interaction between supervisor and subordinate
Hierarchical level of a manager
Nature of activities to be supervised
Incidence of new problems in the unit
Degree of standardisation
Physical distribution of the employees
Stability or complexity of work
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A. NetHawk is a cybersecurity company giving
specialized services to corporates by testing out
networks and exposing attack vulnerabilities.
NetHawk Consultants also take up short term
contracts for maintaining networks for firms.
B. Jaidev Printers is a firm printing religious material for
distribution across temples and retail outlets. They
have preset content that is published as per the
demand received.
• Which of the firms is more likely to have a wide span of
control, and which firm is more likely to have narrow
span of control? Explain.

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Delegation of Authority – Concept
• Delegation involves assigning of responsibility

with corresponding formal authority by a
superior to his/her subordinates to get a
particular task accomplished through them.

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Advantages
• Delegation saves time that can be utilized for more productive
purposes. The manager can move ahead and focus on more
important things.
• It can also be used to develop the subordinates and groom
successors.
• It is a very helpful aid for succession planning, personal
development and promotion.
• It enables the subordinates to gain experience to take on higher
responsibilities which is useful both for the subordinates as well as
the manager who is grooming his/her successor.
• The manager can motivate his/her team by giving them challenging
tasks and opportunities for learning through delegation.

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Barriers
Factors related to the Factors related to the
Organisational Aspects
Delegating Manager subordinates
• Love for authority • Fear of criticism • Organization's size
• Policy towards
• Lack of information and centralization or
• Unwillingness to let go
resources decentralization
• Availability of managerial
• Lack of confidence in
• Lack of self-confidence personnel
subordinates
• Types of control
• Fear of subordinates’ • Absence of rewards and
mechanism
advancement incentives
• Management philosophy

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Guidelines for Effective Delegation
Define the Task Clearly
Checking and Controlling Measures
Superior-Subordinate Agreement (psychological and emotional contract)
Assessment of Capability
Time-bound
Ethical Behaviour
Record-keeping/Documentation

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Centralization Vs Decentralization
• Centralization is the process by which the •Decentralization is the managerial
decision-making authority within an approach of dispersion of authority
organization becomes concentrated in a throughout the organization to enable the
particular location and/or group, usually at managers at all levels play assigned roles
the top management level. Centralization
is the systematic and consistent reservation optimally.
of authority at central points within the
organization, usually at the top
management level. The more highly
centralized the organization, the more
control and decision-making reside at the
top.
Centralization Decentralization

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Difference – Delegation and
Decentralization
No Dimension Delegation Decentralization
Entrustment of
responsibility and Systematic delegation of
1 Meaning
authority from one authority in the organization
individual to another
2 Scope Limited; individualistic Wider; Organizational
Accountability and
Accountability is also passed
results are still the
3 Responsibility on to the various levels of the
responsibility of the
organization.
delegating superior
Possible and effective in
Possible in expanding large
4 Effectiveness all kinds of
organizations
organizations

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Advantages
Greater Efficiency gives managers more freedom and
independence in decision-making
Greater Uniformity relieves top management from day-to-day
administration issues
Easier Training shortens the decision-making cycle
Greater Control creates a situation where a wider span of
control is possible
Personal Leadership ensures the professional
growth and development of managerial
talent
Opportunity for Integration encourages demonstration of innovative
behaviour by the employees
Handling of Emergencies
Power and Prestige
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Advantages
aids in faster adaptation to the fast-
changing business environment
facilitates setting up of profit centres
makes possible the comparison of
performance of different organisational
units

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Disadvantages
becomes untenable when the organisation it may lead to overlapping and duplication
becomes more complex in size, of efforts
interdependence of workflow, complexity
of tasks and spatial barriers
subordinates have no power and authority involves considerable expenses for training
to timely respond to different situations by of managers at the lower level of hierarchy
making quick decisions
customers of a large organisation can be increases the probability of loss of
served in an effective and efficient manner consistency with respect to quality,
if the decision-making moves closer to the processes, policies and handling of issues
operating level
skills of the mid-level management are coordination of activities of decentralised
underutilised as they have little to organisational units might become
contribute, and their knowledge is used increasingly complex
partially

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Disadvantages
speed of decision-making in a centralised gains of decentralisation may be limited
organisation becomes relatively slow when if it is not backed by adequate control
the organisation grows in size and its techniques
operations become multi-locational
there are less motivated personnel in a top-level management might feel a
centralised organisation, because they are decrease in their status or loss of some
not able to make things happen in control
accordance to their viewpoint
discourages the spirit of initiative requires motivated managers at the
lower levels

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Organizing of Start Ups
• https://www.forbes.com/sites/forbestechcoun
cil/2021/06/14/organization-design-101-for-
startups/?sh=f973af7db7eb
• https://www.forbes.com/sites/bijankhosravi/2
021/06/13/how-organizational-behavior-
science-can-help-startups-manage-new-
norm/?sh=e97238a45b33

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• Legal Forms of Organization (Sole
Proprietorship, Partnership, Limited Liability
Partnership, Joint Stock Company)
• Organization Design and Structure (choice of

organization structure; work specialization,
departmentation, chain of command, span of
control, centralization/decentralization)

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• Human Resource Management Issues
(Employee Recruitment, Employee Retention)
• Change Management
• Cultivating Innovation Culture

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Spot the Difference

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MODULE – VI
Staffing

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Human Resource Planning – Concept
• Human resource planning is the process by
which organizations ensure that they have the
right number and type of people in the right
place at the right time.

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Human Resource Planning - Process
• assessing the current availability of • assessing the future human resource

human resources. needs of the organization by analyzing
• develop detailed HR inventory charts its future plans and objectives.
which include a succession plan for • determined on the basis of the
every key position organization's mission, goal sand
strategies.
• The demand for employees is estimated
on the basis of the organization's
products or services and total expected
revenue.
1. Human 2. Future Human
Resource Resource
Inventory Requirement

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Job Analysis – Meaning
It defines different jobs in Information for job
Systematic process to detail (duties, role and task). analysis can be
determine the various For each job, it identifies the
human resource gathered through the
aspects of human
resource requirement for requirements in terms of the following measures.
type of work to be
different positions in an performed; minimal (a) Directly observing individuals on
the job
organization in knowledge, skill, abilities,
quantitative and qualification, experience, (b) Interviewing the employees
qualitative terms. mental ability and behavioral individually or in a group
skills that are essential for a
person to be employed for (c) Getting the employees to fill a
that job. structured questionnaire
(d) Utilizing the services of job

experts to identify a job’s specific
characteristics.
(e) Getting the employees to record

their daily activities in a diary or
notebook.

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Job Analysis – Components
1. Job Description: Job description is a written
statement about how and why a job is done; and
what is the role and responsibility of the position. It
typically describes the job content, environment,
and conditions of employment.
2. Job Specification: Job specification states the
minimum and desirable qualifications that a person
must possess to perform a given job successfully. It
identifies the knowledge, skills, attitudes and
behaviour that are needed to do the job effectively.
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Recruitment – Concept
• Set of activities that need to be performed for
attracting sufficient number of talented
candidates for filling up certain positions in
the organization structure.

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Recruitment – Decisions Involved
• Hiring a headhunter or a placement consultant
(a) Deciding the overall strategy to • Releasing an advertisement in the newspaper
recruit the talent for different positions. •Posting the job opportunity on the
It involves choosing theright approach to
organization's notice board for internal
select the right kind of person
employees to apply for the job.
•Seeking references from existing employees
(b) Selecting the right media at which • Internet job site posting
the recruitment information needs to be • Newspaper advertisement
placed to attract the right number and
type of candidates. A battery of media
• Trade magazines
options are available for HR managers to • Employment exchange
attract the right talent for specific • Employee referrals
positions in their organizations. These
include

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Recruitment – Sources
Source Advantage Disadvantage
• Sometimes generates very
• Reaches a large number of
large number of applicants,
people and can encourage
which can create a problem
a large number of
of sorting and screening
Advertising in the applicants to apply.
• Generates many unqualified
Media • Can bring in employees
candidates
• Newspaper with fresh perspective.
• Can be a costly proposition
• Magazine/Journal • Job posting on the Net can
• Difficult to be employed for
• Internet be there for a long period
senior positions of the
and can be directed to
organisation.
interested candidates
• Can de-motivate internal
through automated e-mail
employees.

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• Informing employees of vacancies
• May not provide
internally for promotion or transfer
employees with fresh
from within the organisation in a
Internal perspective to create
transparent manner.
advertising diversity and bring in
• Acts as a source of motivation for
change
employees.
• Cost-effective.
• Can generate good candidates because
the current employee knows the
organisation as well as the person • May not increase the
Employee
being recommended diversity and mix of
referrals
• Reference check is inbuilt into it employees
• Rewards internal employees for
selection of candidates

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• Cost-effective
• Wide distribution; can • Generates many
Company website
be targeted to specific unqualified candidates
groups
• Freshers can be
moulded according to • Expectation for salary is
the organisation culture quite high
• Candidates are • Generally freshers are
Campus recruitment
equipped with latest available as candidates
knowledge • Limited to entry-level
• A large centralised body positions
of candidates

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Good knowledge of industry
challenges
and requirements Can be costly as huge cost
Makes the candidates might be involved
available at short in terms of fixed fee
Professional recruiting
notice component that
organisations
Organisations do not have to has to be paid for search
Executive search
do too much and other expenses
organisations/
effort in advertising, screening even if no candidate is
headhunters
and shortlisting, selected.
etc. Little commitment to
Good for senior positions that specific organisation
organisations
don’t want to advertise.

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Recruitment – Emerging Trends
• Gamification in Recruitment - often termed as
recruitainment - using quizzes, challenges, or behavioral-
related evaluations, hiring companies can integrate a fun
element into a typically dull recruiting process. E.g.
Siemens Plantsville
(https://www.fastcompany.com/1742355/siemens-taps-
zyngas-popularity-launches-plantville), My Marriott Hotel
• Recruitment Marketing – Related to Programmatic

Advertising ( https://harver.com/blog/programmatic-
advertising-in-hr/ ) – use of AI in placing ads strategically in
a suitable profile group

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Recruitment – Emerging Trends
• Attracting Candidates with Transferable Skills –
Critical Thinking, Digital Literacy etc are
transferable skills
• Diversity Hiring
• Gen Z Hiring (They are one with their
smartphones; Adapt to their (short) attention
span; Think about their growth)

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Selection – Concept
• Process for choosing the right or the best
candidate who meets the requirements of a
particular position from all applicants for that
position.
• A match-making endeavour to develop a right

fit between the requirements of the job and
the personality of the applicant.

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Selection Process
• The specific steps vary according to the nature
and size of the organisation; vacant position,
time and resources available for selection; the
philosophy and approach of the recruiter,

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Selection Process
1. Establishing selection criteria: the criteria on the basis of which it intends to

select the candidate for a particular position. These criteria should be ideally
developed on the basis of the Key Performance Indicators (KPI) for that position.
2. Preliminary screening: reject those candidates who do not fulfill the basic
criteria or eligibility. It is also performed to reduce the number of candidates
that would be finally invited for the selection process.
3. Filling up application form: The candidates who are shortlisted after the preliminary
screening are invited for the selection process. At the outset, they need to fill an application
blank, which provides the selection committee with the required information about the
candidate, like education, experience, employment history, achievement, etc.

Sankpal
Selection Process
4. Preliminary interview: can be conducted by competent but relatively lower-

level managers to further screen out the obviously unqualified from the
shortlisted applicants; save the time of senior managers who would prefer to
meet the qualified candidates.
5. Selection tests: tests are performed to decipher their individual

characteristics, personality, aptitude, ability to learn and master the concepts
and skills, achievement orientation, motivation, etc.
6. Comprehensive interview: This step of the selection process provides an

opportunity to have firsthand verification of the information provided by the tests
and mentioned in the application blank. It provides additional information about
the applicant’s attitude, aptitude, interests, aspirations, and expectations.

Sankpal
Selection Process
7. Reference check: Applicants are normally asked to supply the contact details of
individuals in the application blank. These references can be contacted to verify
the credentials provided by the candidate, if required.
8. Physical examination or medical test: Some organisations might require their prospective employees
to take a physical examination or a medical test from the doctor empanelled by the organisation. This is
done to select physically capable candidates and prevent insurance claims for illness or injuries that
occurred prior to employment by the company. In some cases, the candidates may just be required to
furnish a certificate from a competent authority about their medical fitness.
9. Final selection (or rejection): This is the final stage at which the job offer is made to applicants by the
management. The selected candidate is required to furnish his/her consent in writing, after which the joining
formalities are initiated and a complete appointment letter is given to the candidate. The acceptance of the
appointment letter transforms a candidate into an employee of the organisation.

Sankpal
Selection – Best Practices
• Be systematic and impartial
• Design your selection process carefully and
execute it thoroughly
• Always select according to the job
specification
• Base hiring decisions on factual evidence
• Equip selectors with the right skills

Sankpal
Selection – Best Practices
• Keep track of a conversion funnel
• Ensure privacy and security to the candidates

Sankpal
As the manager responsible for staffing at Delyte
Manufacturing, you face a major challenge over the next
five years. According to employment records,
approximately 40 of the 200 production employees will
be entering their 60s.
Although there is no formal retirement age in this firm,
production staff usually retire before age 65 because they
are eligible for full retirement pensions by then.
Furthermore, you have noticed that local colleges are
graduating fewer tradespeople in these jobs than they did
a decade ago. What can you do to resolve this problem?

Sankpal
Google is exceptionally diverse with respect to
representation in ethnicity, race, and gender. But
some critics point out that the Internet search
engine company has an unusually young workforce.
What problems, if any, might Google experience
with this lack of age diversity? If Google wanted to
increase its age diversity, what should it do, and
what complications might result from these
actions?
Sankpal
Additional Reading
• Harvard Business Review, Peter Cappelli, 2015
- https://hbr.org/2019/05/recruiting#your-
approach-to-hiring-is-all-wrong
• State of Victoria, Department of Education

and Training -
https://www.education.vic.gov.au/hrweb/Doc
uments/Best-Practice-Guide-Recruitment-
Selection.pdf

Sankpal
Sankpal

Module 4 To Module 6 POM

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MODULE – IV

Planning and Decision Making

SVKM's NMIMS, Indore Campus / Dr.

SVKM's NMIMS, Indore Campus / Dr.

SVKM's NMIMS, Indore Campus / Dr.

Happen Economize Operations

Not Increases Teamwork

SVKM's NMIMS, Indore Campus / Dr.

May render inflexible

False Sense of Security

Capital Investment in Fixed Assets Limits Planning

SVKM's NMIMS, Indore Campus / Dr.

Operational Short Term Directional Standing

SVKM's NMIMS, Indore Campus / Dr.

SVKM's NMIMS, Indore Campus / Dr.

SVKM's NMIMS, Indore Campus / Dr.

Identifying Environmental Opportunities and

SVKM's NMIMS, Indore Campus / Dr.

Seven Potential Sources of Opportunity (Drucker) –

SVKM's NMIMS, Indore Campus / Dr.

2. Constructing Planning Premises

3. Forecasting Outcomes and Events

5. Searching Alternative Courses of Action

8. Detailed Planning – Formulation of Derivative Plan

SVKM's NMIMS, Indore Campus / Dr.

A decision is a choice made from available alternatives.

Decision making is the process of identifying problems

SVKM's NMIMS, Indore Campus / Dr.

SVKM's NMIMS, Indore Campus / Dr.

SVKM's NMIMS, Indore Campus / Dr.

SVKM's NMIMS, Indore Campus / Dr.

Justifying past decisions.

Seeing what you want to see.

Perpetuating the status quo.

Being influenced by problem framing.

Context Effects Availability Using Irrelevant Analogies

Primary Colours of Light

SVKM's NMIMS, Indore Campus / Dr.

SVKM's NMIMS, Indore Campus / Dr.

 Was the hospital’s decision to suspend the consultant

SVKM's NMIMS, Indore Campus / Dr.

SVKM's NMIMS, Indore Campus / Dr.

• Organizing is the establishing of effective

SVKM's NMIMS, Indore Campus / Dr.

SVKM's NMIMS, Indore Campus / Dr.

Organization Structure is an established, abstract pattern

An organization structure is needed due to the following

SVKM's NMIMS, Indore Campus / Dr.

SVKM's NMIMS, Indore Campus / Dr.

Vice President (Production)

Foreman A Foreman B Foreman C

Workers Workers Workers

SVKM's NMIMS, Indore Campus / Dr.

SVKM's NMIMS, Indore Campus / Dr.

PRODUCTION FINANCE MARKETING HR

SVKM's NMIMS, Indore Campus / Dr.

SVKM's NMIMS, Indore Campus / Dr.

Production Marketing Finance Production Marketing Finance

SVKM's NMIMS, Indore Campus / Dr.

SVKM's NMIMS, Indore Campus / Dr.

SVKM's NMIMS, Indore Campus / Dr.

Project Head Production Marketing Finance