Q.What is Management? Discuss the core functions of Management.

Management is the process of reaching organizational goals by working with and through people and
other organizational resources. It is an art of getting things done through and with people in formally
organised groups. It is also a multi-purpose organ that manages business and manages managers and
manages workers and work.

The organization and coordination of the activities of a business in order to achieve defined objectives.
Management is often included as a factor of production along with‚ machines, materials, and money.
According to the management guru Peter Drucker (1909-2005), the basic task of management includes
both marketing and innovation. Practice of modern management originates from the 16th century study
of low-efficiency and failures of certain enterprises, conducted by the English statesman Sir Thomas
More (1478-1535). Management consists of the interlocking functions of creating corporate policy and
organizing, planning, controlling, and directing an organization's resources in order to achieve the
objectives of that policy.

Management has the following 3 characteristics:

1. It is a process or series of continuing and related activities.

2. It involves and concentrates on reaching organizational goals.
3. It reaches these goals by working with and through people and other organizational resources.

FUNCTIONS OF MANAGEMENT:

The 4 basic management functions that make up the management process are described in the following
sections:

1. PLANNING
2. ORGANIZING
3. INFLUENCING
4. CONTROLLING.

PLANNING: Planning involves choosing tasks that must be performed to attain organizational goals,
outlining how the tasks must be performed, and indicating when they should be performed.

Planning activity focuses on attaining goals. Managers outline exactly what organizations should do to
be successful. Planning is concerned with the success of the organization in the short term as well as in
the long term.

ORGANIZING: Organizing can be thought of as assigning the tasks developed in the planning stages,
to various individuals or groups within the organization. Organizing is to create a mechanism to put plans
into action.

People within the organization are given work assignments that contribute to the company’s goals. Tasks
are organized so that the output of each individual contributes to the success of departments, which, in
turn, contributes to the success of divisions, which ultimately contributes to the success of the
organization.
INFLUENCING: Influencing is also referred to as motivating,leading or directing.Influencing can be
defined as guiding the activities of organization members in he direction that helps the organization move
towards the fulfillment of the goals.

The purpose of influencing is to increase productivity. Human-oriented work situations usually generate
higher levels of production over the long term than do task oriented work situations because people find
the latter type distasteful.

CONTROLLING:

Controlling is the following roles played by the manager:

1. Gather information that measures performance

2. Compare present performance to pre established performance norms.
3. Determine the next action plan and modifications for meeting the desired performance
parameters.

Controlling is an ongoing process.

Q. What is 'Organizational Structure'?

Explicit and implicit institutional rules and policies designed to provide a structure where various work
roles and responsibilities are delegated, controlled and coordinated. Organizational structure also
determines how information flows from level to level within the company. In a centralized structure,
decisions flow from the top down. In a decentralized structure, the decisions are made at various different
levels.

Organizational structure is a system used to define a hierarchy within an organization. It identifies each
job, its function and where it reports to within the organization. This structure is developed to establish
how an organization operates and assists an organization in obtaining its goals to allow for future growth.
The structure is illustrated using an organizational chart.

Types
Several types of organizational structures are each defined to meet the needs of organizations that operate
differently. Types of organizational structure include divisional, functional, geographical and matrix. A
divisional structure is suitable for organizations with distinct business units, while a geographical
structure provides a hierarchy for organizations that operate at several locations nationally or
internationally. A functional organizational structure is based on each job's duties. A matrix structure,
which has two or several supervisors for each job to report to, is the most complicated but may be
necessary for large organizations with many locations and functional areas.

Centralization
Although there are many types of organizational structures developed to meet each organization's needs,
all of them provide a hierarchy that reports to a centralized location and group of executives. The highest
ranking member of an organizational chart is one or several top executives referred to as the president,
chief executive officer or chief operating officer.

Job Descriptions
When an organizational structure is designed, job descriptions can be developed to not only meet an
organizations goals, but allow for organizational and employee growth. Internal equity and employee
retention are a key to successful operations. Recruitment is also one of the highest investments for
organizations, so ensuring employees have promotional opportunities and job security can assist in
reducing recruitment costs.

Salary
Organizational structure is also a fundamental core to create salary structures for an organization. Once
the structure is established, salary ranges can be created for each job in the organization. In most cases,
each job is aligned to a salary grade, and each grade has a specified salary range. This allows an
organization to meet its financial goals and ensures salaries are distributed fairly within financial budgets.

Expansion
If an organization expands, the organizational structure allows room for growth. This can include adding
additional layers of management, new divisions, expanding one or several functional areas or appointing
additional top executives. When the structure is reorganized for expansion, it provides the foundation to
edit salaries and job descriptions quickly and efficiently with minimal disruption to an organization's
operations.

Q. What are the Factors to Considered When Designing an

Organization Structure?

An organization's structure amounts to its strategy for deploying talent throughout the company. Whether
that deployment accomplishes a business' aim depends in part on the strength of the organizational
design. Organizational design creates operational relationships between people, lays out boundaries of
responsibility and sets out who is accountable to whom. There are a several ways to structure an
organization. The right design arises from a company's needs and aspirations, deploying people
accordingly.

Strategy
The best approach to organizational design tailors it to a company's strategic plans. The plans,
meanwhile, follow from a company's vision, which itself follows from the company's mission. Mission
is a business' reason for being -- its purpose. Vision is a company's ultimate accomplishment, the
realization of the mission. All strategy tries to fulfill the vision, and the organizational structure
should support that effort. For instance, a company that has decided to expand to overseas markets might
organize itself into geographical divisions. Changes in strategy call for an updated structural design.

Environment
The business environment that employees work within cannot be ignored by organizational designers.
An unpredictable, rapidly changing environment demands flexibility, adaptability and interdepartmental
cooperation. In such a situation, a rigid, mechanized structure would stifle the agility and responsiveness
of staff. Designers can instead build an organic, horizontal structure, which flattens management levels
and decentralizes decision-making. A stable environment, meanwhile, allows for the controls, well-
defined tasks and centralized authority found in the mechanistic structure with its vertical tiers of
increasing power.

Size
Small businesses with few people often have an overlap of roles, behave informally and don't write a lot
of rules. Since this organization arises organically, it would be a mistake to try to overlay a formal,
mechanistic structure on it. Doing so would be an exercise in futility. Also, the unnecessary bureaucracy
could get in the way of operations. Large organizations need more control and oversight. A mechanistic
structure creates clear accountability and responsibility and is, therefore, suitable for companies with
many employees.

Age
At the beginning of a company's life, its small size allows the organic structural qualities that encourage
flexibility and responsiveness. As it matures and expands, a company begins to mechanize, adding rules,
policies and procedures; closely defined tasks; extensive internal systems of control and command
chains. In short, maturity gives rise to bureaucracy. The older the company, the more likely the
bureaucracy has become unwieldy, presenting a barrier to innovation, adaptability and quick reactions.
Organizational design should factor in the extent to which an older company needs to restructure itself
to reduce its mechanized structure.

Structural Designs
Structural designs have pros and cons, so designers should consider the structural design carefully. Two
common structures are the functional and divisional structures. The functional structure creates
departments according to business activities, such as production, marketing and finance. Having
activities so grouped increases efficiency but can lead to barriers between departments. The divisional
structure groups people according to product, customer or geography, in effect creating small companies
with their own marketing, finance and production capabilities. This makes divisions focused and
responsive, but duplicates business activities between divisions and within the company as a whole.

Q. What does Line Organization mean? Discuss the advantages

and disadvantages of Line Organization.
Line organization is also known as vertical organization or departmental organization. This is the oldest
form of organization. Line organization assumes that direct authority is exercised by a superior over his
subordinates. The flow of this authority is always downwards. This organization is based on scalar basis.

J.D Mooney and A.C Reiley introduced the idea of line organization. They pointed out that “the degree
of authority exists in all organization as on uninterrupted scale or series. The basic of scalar organization
is that in any organization there must be a series of superior and subordinates relationship from top
organization to the very downward structure of organization.

Advantages of Line Organization

Below are some merits and advantages of line organization or vertical organization

1. Simplicity. It is the simplest form of organization and very simple to understand and implement. It can
be easily define and explain to all staff.

2. Responsibility is fixed. In this form of organization responsibilities are fixed and defined. Every person
is crystal clear to whom he is answerable and who are accountable to him. In this type of organization
shifting of responsibility is not possible because responsibilities are fixed.

3. Unified Control. Good control, direction and direction is possible in line organization because of fixed
responsibility. Lower level personnel favorably react to simple the multiple authority.

4. Quick Decision. Single authority, unified control and fixed responsibility to help in quick decision.

5. Flexibility. In type of organization is flexible in character. This is capable of adjusting itself quickly
to changing circumstances. This obviously flows from fixed responsibility because of which the
executive is sole master in his own sphere of activity.

Disadvantages of Line Organization

Following are some demerits and disadvantages of line organization or vertical organization

1. Over loading. The executive is overloaded at each level of organization. There are several things he
must manage independently. Here his level of efficiency is not the same that is why most of the time the
organization activities suffer due to overloading.

2. Lack of Specialization. Different types of jobs are looked after, supervised and control by executive.
It is physically not possible for him to learn and acquire the skills of the jobs he looks into and at the
same time be able to do justice to each job. He cannot claim to be an expert in all types of jobs he handles.
Today complex business and industrial organizations need specialization. If unfortunately it is not there
the attainment of objectives may not be smooth.

Q. What is Meant By Strategy?

1.A method or plan chosen to bring about a desired future, such as achievement of a goal or solution to
a problem.
2.The art and science of planning and marshalling resources for their most efficient and effective use.
The term is derived from the Greek word for generalship or leading an army. See also tactics.

We all have loosely played around with the term strategy in our daily lives without identifying the key
features that are implicitly addressed in our usage. My aim here is to isolate the key aspects of strategy
as they pertain to starting and running a business.

Strategy?
Putting it simply, strategy refers to the action/method/trick/technique/direction one would adopt in
achieving a certain objective. For business purposes, objectives are usually more precisely defined using
numerical values – 10% increase in sales in the next year could be an example of a business objective
(sales). Objectives differ depending upon the conditions one may find himself in and therefore would
result in the adoption of varied strategies. In a football field the formation of on-field players like 4-4-2
could be a part of the winning strategy, changing interest rates by the fed or the central bank could be a
part of an economic strategy.

Similarly, there could be political strategies, business strategies and so on. It is nothing but natural for
strategies to differ in substance but they all share some common issues that get addressed in the process.
So, in order to work on strategic substance it is imperative we understand the issues that need to be
answered in our strategic choices. Let us look at this rather fundamental structure of strategy definition.

Firstly, when we think of strategy we are thinking on a long term basis. Strategies are formed keeping in
mind the mission of an organization that help further decide the direction to be adopted. Mission is
basically the broad reason for an organization's existence. This is the first structural block.

Secondly, strategies are crafted under the characteristics of an organization's strengths and weaknesses.
The resources and competencies of a system help define and shape the multitude of strategic choices
available to the management to choose from. This forms the second major structural block and alongside
the first lays the basic foundation for strategy formation.

The rest is basically a web where we need to analyze the current domain of the organization's activities
and possible future expanse, the culture of the organization, the values and expectations of stakeholders,
the operational and business environment and the competition. Once this analysis is done, strategies can
be derived that help to provide a competitive advantage in the given environment after also considering
its expected future developments. This aspect is rather important as strategies cannot be altered time and
again. They, however, should keep room for a little change as they have to stand the test of time and
therefore need to be aligned correspondingly to dynamic environments.

To sum it up, strategies are essentially long term directions of an organization that define the manner in
which competitive advantage shall be achieved, alongside the fulfillment of stakeholders' expectations,
within the boundaries of the organization's strengths and weaknesses. Evidently, the process of
developing strategies is a tedious one and requires concrete analysis of many inter-related factors. It is
extremely complex and has an inherent uncertainty about its conception.

As strategy developer one has to be harmonized with the vagueness of the opportunity costs for a
particular strategic choice and once committed, should focus entirely on the chosen strategic direction.
All actions are linked to the strategy of the organization and hence a thorough analysis of various
mediating factors is critical to its success. We shall look into the analysis in the following sections but
for now it is important to accept and understand strategy in all its inherent individual colors.

Strategy derives from the ancient Greek word strategos. Translated literally it meant "the general's art."
In the past it referred primarily to military matters of an overall nature such as a major campaign or the
overall conduct of a war. The 1950's and 1960's saw the word being applied to business operations by
managers and academics who had served in the United States Army Air Force.

In his 1955 work, The Practice of Management, Peter Drucker made the distinction between tactical
decisions and strategic decisions. Others such as Kenneth R. Andrews, H. Igor Asoff, Alfred D. Chandler
and Michael Porter developed structures, approaches, conventions and procedures for Corporate
Strategy. Marketing Strategy, too, developed during this period standardizing terms and concepts such
as "Target Marketing" and "segmentation."

Manufacturing Strategy had a late start and is till not well-known or taught as an essential in
manufacturing curriculums. Yet, it is just as important as Marketing or Finance.

Conceptualizing Strategy

For all its common use, the concept of "strategy" remains slippery. It is generally agreed that long-term,
difficult-to-change and wide-ranging issues are strategic. This is particularly true when the issues
involve interactions with the environment.

Q. What are the Differences between Strategy and Policy?

The success of a business is strongly linked to how the management of the company perceives the goals
to be achieved and the ways devised to achieve those goals. There are two different but interrelated
concepts of strategy and policy that are very confusing for outsiders to a business. There are many who
feel that there are enough similarities and overlapping to use these words interchangeably. However,
strategy and policy are two different concepts and these differences will be highlighted in this article.

Strategy

Strategy of a business organization is reflective of the thinking of those at the top of its management and
the action that the management plans to take. It is the job of the management to set goals that are sought
to be achieved and the strategy is a statement that lets stakeholders know the thinking of the management
as to how they plan to achieve these goals. To an investor or a shareholder, the strategy document is an
important reminder regarding the thinking process of men who matter in a company.

In sports, different players are known to adopt strategies of defense or attack or make moves to confuse
their opponents. In team games, strategies are made beforehand where there are plan A, plan B, and plan
C ready to be applied in different circumstances.

Policy

A policy lies at the core of all decisions taken by the management of a company. It serves as a guide
while taking decisions though the policy is not a statement that is written in black and white that has to
be applied in day to day operations. Policy statement is like a guidebook that helps management to take
important decisions and clears all doubts as to the direction a company should take.

If a company has made it a policy not to make use of services of middlemen, it sticks to its decision and
becomes famous for its policy. Honesty is the best policy for success in any endeavor, they say, and this
holds true even today.

It is not just business where policies are required; even governments have well defined policies such as
foreign policy, investment policy, defense policy, and so on. People vote for political parties as they
know their viewpoint reflected in their policy statements.

In short we can say-----

• The plan of action devised by the management to achieve the goals set forward is termed as the strategy
of a company
• Broad ideas or official line taken by a company, organization, or a government is termed as its policy
• There can be different strategies to achieve the goals set by a company following the policy guidelines
though the policy is a long term concept that remains the same in a constant manner
• Strategy is better labeled as plan of action while the policy is a guideline that is to be kept in mind all
the time.

Q. What is Motivation?
Motivation in management describes ways in which managers promote productivity in their employees.
Learn about this topic, several theories of management, and ways in which this applies to the workplace.
Use quiz questions to test your knowledge.
The Definition of Motivation
Often, people confuse the idea of 'happy' employees with 'motivated' employees. These may be related,
but motivation actually describes the level of desire employees feel to perform, regardless of the level
of happiness. Employees who are adequately motivated to perform will be more productive, more
engaged and feel more invested in their work. When employees feel these things, it helps them, and
thereby their managers, be more successful.
It is a manager's job to motivate employees to do their jobs well. So how do managers do this? The
answer is motivation in management, the process through which managers encourage employees to be
productive and effective.
Think of what you might experience in a retail setting when a motivated cashier is processing your
transaction. This type of cashier will:

• Be friendly, creating a pleasant transaction that makes you more likely to return
• Process your transaction quickly, meaning that the store can service more customers
• Suggest an additional item you would like to purchase, increasing sales for the store

In short, this employee is productive and delivers a high-quality output.

How to Motivate Employees

There are many ways to motivate employees. Managers who want to encourage productivity should work
to ensure that employees:

• Feel that the work they do has meaning or importance

• Believe that good work is rewarded
• Believe that they are treated fairly

All of these tasks fall under one or more motivational theories.

Expectancy Theory
Expectancy theory outlines the connection employees expect between effort and reward. If an employee
does very well and puts forth additional effort, they will likely expect to be rewarded accordingly. In a
retail setting, for example, a cashier might offer to work a double shift when a manager is short staffed,
but would expect praise and perhaps additional compensation for doing so.
Employees who do not feel rewarded become unmotivated. Think about how you might feel if you
continually worked as hard as possible but never received additional recognition or compensation. Would
you continue to work as hard as possible, or would you think 'why bother?'

Equity Theory
Equity theory indicates that employees are best motivated when they feel that they are being treated
equally. If two employees perform the same job, and believe that they do so equally well, they would
expect equal pay and equal recognition.
Lack of equity, whether real or imagined, can damage employee motivation. Again, imagine you are
working as hard as you can and find that someone else who works at the same level doing the same job
makes more money. Would you want to continue to work as hard?
Q. What is Motivation and Morale? Discuss Relationship and
Differences.
Morale can be defined as the total satisfaction derived by an individual from his job, his work-group, his
superior, the organization he works for and the environment. It generally relates to the feeling of
individual’s comfort, happiness and satisfaction.

According to Davis, “Morale is a mental condition of groups and individuals which determines their
attitude.”

In short, morale is a fusion of employees’ attitudes, behaviours, manifestation of views and opinions -
all taken together in their work scenarios, exhibiting the employees’ feelings towards work, working
terms and relation with their employers. Morale includes employees’ attitudes on and specific reaction
to their job.

There are two states of morale:

High morale - High morale implies determination at work- an essential in achievement of management
objectives. High morale results in:

• A keen teamwork on part of the employees.

• Organizational Commitment and a sense of belongingness in the employees mind.
• Immediate conflict identification and resolution.
• Healthy and safe work environment.
• Effective communication in the organization.
• Increase in productivity.
• Greater motivation.

Low morale - Low morale has following features:

• Greater grievances and conflicts in organization.

• High rate of employee absenteeism and turnover.
• Dissatisfaction with the superiors and employers.
• Poor working conditions.
• Employees frustration.
• Decrease in productivity.
• Lack of motivation.

Though motivation and morale are closely related concepts, they are different in following ways:

While motivation is an internal-psychological drive of an individual which urges him to behave

in a specific manner, morale is more of a group scenario.
 Higher motivation often leads to higher morale of employees, but high morale does not essentially
result in greatly motivated employees as to have a positive attitude towards all factors of work
situation may not essentially force the employees to work more efficiently.

While motivation is an individual concept, morale is a group concept. Thus, motivation takes into
consideration the individual differences among the employees, and morale of the employees can
be increased by taking those factors into consideration which influence group scenario or total
work settings.

Motivation acquires primary concern in every organization, while morale is a secondary

phenomenon because high motivation essentially leads to higher productivity while high morale
may not necessarily lead to higher productivity.

Q. What is Business Environment? Discuss the Main Elements

or Factors of Business Environment.

Definition
The combination of internal and external factors that influence a company's operating situation. The
business environment can include factors such as: clients and suppliers; its competition and owners;
improvements in technology; laws and government activities; and market, social and economic trends.

Micro Business Environment:

This is also known as internal business environment because business has power to control them. In
this environment, factors can be divided with following way.

1. Supplier

A supplier provides raw material to business. This is also main factor of business environment because,
it affects business very closely. If supplier delay to supply raw material or stop to supply. At this time
production of business can be stopped due to not getting raw material. So, for controlling this factor, it
is the duty of businessman to make good relation with more than one supplier so that, if one stop or
delay at this time, goods can be purchased from other supplier.

2. Customers

Customers are those people or companies which buy goods from our business. Business sells them his
finished product. But time to time tastes of customers also change. So, according to the taste of
business customers, new products must be supplied by business. That is the formula for living long life
of business.

3. Market Intermediaries

For promoting sale, it is required to ads by different way, so market intermediaries include sales man
and middle man.
This environment is under control of business because, if business starts selling with more ads, his
selling will surely increase.

4. Competitors

Competitors of business also create internal business environment. According to competitors, policies,
business changes his policies for winning in competition.

5. Financial Intermediaries

As business grows, it needs more money for his growth; either this money can be gotten by issuing new
shares or by borrowing money from financial intermediaries. So, financial intermediaries plays a vital
role in business environment. If they provides loan at very low rate, at that time business can get and
grow fastly but, if they increase in interest rate, at that time business will not get at this rate and its
growth may decrease due to lack of fund.

Macro Business Environment or External Factors of Business Environment:-

1. Economical Environment

Economic environment is main element of business environment. Economy is factor which affects
business with following way:-

Economic policies
Economic policies related to budget , industrial policy , fiscal policy , export and import policy and
business should see what changes are done in these and business has to changes their business policies
according to these changes .
Economic regulation
Different laws and regulations are at international level and national level . These are all called
economic regulation and business has to respect all of these while it is operating business .

2. Natural Environment

Natural environment is also external factor of business . Because , business can not fully control on
natural environment . Many points like season , raining , floods , earth quake are natural and happens
according to fluctuation in it . These are also main element of business because business has to face all
these factors . But some of loss from these factors can be transferred with effective schemes of
insurance .
3. Demo – graphic Factors

Size of population and their growth rate includes in demo graphic element and factor of business
environment. Increasing trend of population will increase demand of products and support business to
produce more products. But if death rate is increasing or demo graphic factor like religion are
preventing to use the products of business. At that time business has to change their business or make
other plans according to situation.

4. Technological Environment

This is fully concerned with changing of technology and its effect on product . Many technical products
are fastly changed by coming new technology .At that time business also have to cover new products
according to changes in technology .

5. Political Environment

Political environment is composition of three factors which are following

a) legislature
b) executive
c) judiciary

All above factor affects business and business has to make rules and regulation according to Govt. and
political rules and regulation.

6. International Environment

International environment includes WTO, IMF, WB, SARC and G20 meetings and their rules and
regulations can effect on any type of business. Business has to exist in world market, and then it should
understand their effect and take action according to these rules and regulation.

Q. What is planning and why you need to plan?

Planning is one of the most important project management and time management techniques. Planning
is preparing a sequence of action steps to achieve some specific goal. If you do it effectively, you can
reduce much the necessary time and effort of achieving the goal.

A plan is like a map. When following a plan, you can always see how much you have progressed towards
your project goal and how far you are from your destination. Knowing where you are is essential for
making good decisions on where to go or what to do next.
One more reason why you need planning is again the 80/20 Rule. It is well established that for
unstructured activities 80 percent of the effort give less than 20 percent of the valuable outcome. You
either spend much time on deciding what to do next, or you are taking many unnecessary, unfocused,
and inefficient steps.

Planning is also crucial for meeting your needs during each action step with your time, money, or other
resources. With careful planning you often can see if at some point you are likely to face a problem. It is
much easier to adjust your plan to avoid or smoothen a coming crisis, rather than to deal with the crisis
when it comes unexpected.

The Basic Steps in the Management Planning Process

Management planning is the process of assessing an organization's goals and creating a realistic, detailed
plan of action for meeting those goals. Much like writing a business plan, a management plan takes into
consideration short- and long-term corporate strategies. The basic steps in the management planning
process involve creating a road map that outlines each task the company must accomplish to meet its
overall objectives.

Establish Goals

The first step of the management planning process is to identify specific company goals. This portion of
the planning process should include a detailed overview of each goal, including the reason for its
selection and the anticipated outcomes of goal-related projects. Where possible, objectives should be
described in quantitative or qualitative terms. An example of a goal is to raise profits by 25 percent over
a 12-month period.

Identify Resources

Each goal should have financial and human resources projections associated with its completion. For
example, a management plan may identify how many sales people it will require and how much it will
cost to meet the goal of increasing sales by 25 percent.

Establish Goal-Related Tasks

Each goal should have tasks or projects associated with its achievement. For example, if a goal is to raise
profits by 25 percent, a manager will need to outline the tasks required to meet that objective. Examples
of tasks might include increasing the sales staff or developing advanced sales training techniques.

Prioritize Goals and Tasks

Prioritizing goals and tasks is about ordering objectives in terms of their importance. The tasks deemed
most important will theoretically be approached and completed first. The prioritizing process may also
reflect steps necessary in completing a task or achieving a goal. For example, if a goal is to increase sales
by 25 percent and an associated task is to increase sales staff, the company will need to complete the
steps toward achieving that objective in chronological order.
Create Assignments and Timelines

As the company prioritizes projects, it must establish timelines for completing associated tasks and assign
individuals to complete them. This portion of the management planning process should consider the
abilities of staff members and the time necessary to realistically complete assignments. For example, the
sales manager in this scenario may be given monthly earning quotas to stay on track for the goal of
increasing sales by 25 percent.

Establish Evaluation Methods

A management planning process should include a strategy for evaluating the progress toward goal
completion throughout an established time period. One way to do this is through requesting a monthly
progress report from department heads.

Identify Alternative Courses of Action

Even the best-laid plans can sometimes be thrown off track by unanticipated events. A management plan
should include a contingency plan if certain aspects of the master plan prove to be unattainable.
Alternative courses of action can be incorporated into each segment of the planning process, or for the
plan in its entirety.

Four main steps in control process in Management

1. Establishing Standards:
Standards are criteria against which results are measured. They are norms to achieve the goals. Standards
are usually measured in terms of output. They can also be measured in non-monetary terms like loyalty,
customer attraction, goodwill etc. Some of the standards are as.
a. Time standards:
The goal will be set on the basis of time lapse in performing a task.
b. Cost standards:
These indicate the financial expenditures involved per unit, e.g. material cost per unit, cost per person,
etc.
c. Income standards:
These relate to financial rewards received due to a particular activity like sales volume per month, year
etc.
d. Market share:
This relates to the share of the company's product in the market.
e. Productivity:
Productivity can be measured on the basis of units produced per man hour etc.
f. Profitability:
These goals will be set with the consideration of cost per unit, market share, etc.

2. Measuring Performance
Measurement involves comparison between what is accomplished and what was intended to be
accomplished. The measurement of actual performance must be in the units similar to those of
predetermined criterion. The unit or the yardstick thus chosen be clear, well-defined and easily identified,
and should be uniform and homogenous throughout the measurement process.
The performance can be measured by the following steps:
(a) Strategic control points:
It is not possible to check everything that is being done. So it is necessary to pick strategic control points
for measurement. Some of these points are:
(i) Income:
It is a significant control point and must be as much per unit of time as was expected. If the income is
significantly off form the expectation then the reasons should be investigated and a corrective action
taken.
(ii) Expenses:
Total and operational cost per unit must be computed and must be adhered to. Key expense data must be
reviewed periodically.
(iii) Inventory:
Some minimum inventory of both the finished product as well as raw materials must be kept in stock as
a buffer. Any change in inventory level would determine whether the production is to be increased or
decreased.
(iv) Quality of the product:
Standards of established quality must be maintained especially in food processing, drug manufacturing,
automobiles, etc. The process should be continuously observed for any deviations.
(v) Absenteeism:
Excessive absenteeism of personnel is a serious reflection on the environment and working conditions.
Absenteeism in excess of chance expectations must be seriously investigated.

(b) Meclzanised measuring devices:

This involves a wide variant of technical instruments used for measurement of machine operations,
product "quality for size and ingredients and production processes. These instruments may be
mechanical, electronic or chemical in nature.
(c) Ratio analysis:
Ratio analysis is one of the most important management tools. It describes the relationship of one
business variable to another.
The following are some of the important ratios:
i) Net sales to working capital:
The working capital must be utilised adequately. If the inventory turnover is rapid then the same working
capital can be used again and again. Hence for perishable goods, this ratio is high. Any change in ratio
will signal a deviation from the norm.
ii) Net sales to inventory:
The greater the turnover of inventory, generally, the higher the profit on investment.
iii) Current ratio:
This is the ratio of current asset (cash, receivables etc.) to current liabilities, and is used to determine a
firm's ability to pay the short term debts.
iv) Net profits to net sale:
This ratio measures the short-run profitability of a business.
v) Net profits to tangible net worth:
Net worth is the difference between tangible assets (not good will, etc) and total liabilities. This ratio of
net worth is used to measure profitability over a long period.
vi) Net profits to net working capital:
The net-working capital is the operating capital at hand. This would determine the ability of the business
to finance day-to-day operations.
vii) Collection period on credit sales:
The collection period should be as short as possible. Any deviation from established collection period
should be promptly investigated.
viii) Inventory to net working capital:
This ratio is to determine the extent of working capital tied up in inventory. Generally, this ratio should
be less than 80 per cent, ix) Total debt to tangible net worth: This ratio would determine the financial
soundness of the business. This ratio should remain as low as possible.
(d) Comparative statistical analysis:
The operations of one company can be usefully compared with similar operations of another company
or with industry averages. It is a very useful performance measuring device.
(e) Personal observation:
Personal observation both formal and informal can be used in certain situation as a measuring device for
performances, specially, the performance of the personnel. The informal observation is generally a day-
to-day routine type. A manager may walk through a store to have a general idea about how people are
working.

3. Comparing the Actual Performance with Expected Performance

This is the active principle of the process. The previous two, setting the goals and the measurement
format are the preparatory parts of the process. It is the responsibility of the management to compare the
actual performance against the standards established.
This comparison is less complicate if the measurement units for the standards set and the performance
measured are the same and quantified. The comparison becomes more difficult when these require
subjective evaluations

4. Correcting Deviations:
The final element in the process is the taking corrective action. Measuring and comparing performance,
detecting shortcomings, failures or deviations, from plans will be of no avail if it does point to the needed
corrective action.
Thus controlling to be effective, should involve not only the detection of lapses but also probe into the
failure spots, fixation of responsibility for the failures at the right quarters, recommendation of the best
possible steps to correct them. These corrective actions must be applied when the work is in progress.
The primary objective should be avoidance of such failures in future.
The required corrective action can be determined from the qualified data as per the standards laid out and
the performance evaluation already done. This step should be taken promptly, otherwise losses may be
cumulative and remedial action will be all the more difficult to take.
Corrective action must be well balanced, avoiding over controlling and at the same time letting not things
to drift.

Steps In Control Process

1. Fixing the Control Standards / Objectives / Targets

A standard is a criterion (base) which is used to measure the performance of the subordinates. Standards
may be of two types, i.e. Quantitative Standards and Qualitative Standards.

Quantitative Standard can be easily defined and measured. For e.g. number of products, number of
customers, cost, net profit, time limits, etc.

Qualitative Standard cannot be easily defined and measured. For e.g. measurement of morale,
measurement of job satisfaction, measurement of effect of a training programme, advertisement
programme, etc. It is better to have quantitative standards because they are measurable. However, today
there are many new techniques for measuring qualitative standards.

The standards should be as clear as possible. It should be easily understood by both superiors and
subordinates. The responsibility of each individual should also be clearly defined i.e. everyone should be
responsible for achieving a particular goal, objective, target, etc. For e.g. The marketing department fixes
a standard - "We will sell 2,000 units of product X in one month". So here the standard is 2,000 units.
2. Measuring the Actual Performances

After establishing the standards, the subordinates should be provided with all the resources for
performing the job. They should be properly directed and motivated to perform the job. Similarly, they
should be properly supervised. If the subordinated come under Theory X they require maximum
supervision. However, if they come, under Theory Y then they require minimum supervision. After they
complete the job their performance should be carefully measured. There are many traditional and modern
techniques for measuring the performances of subordinates.

For e.g. After one month, the marketing department sold only 10,000 units of product X. So, their actual
performance is only 10,000 units.

3. Comparision

The actual performances of the subordinates are compared with established standards, and then the
deviations are found out. The deviations which are found out may be positive or negative.

Positive Deviation means that the actual performances are better than the established standards. Positive
deviations should be appreciated.

Negative Deviation means that the actual performance is less than the established standards. The
management should pay special attention to the negative deviation. They should find out the causes of
negative deviations.

Generally, minor (small) deviations are ignored. However, major deviations should be immediately
addressed and reported to the top management. PERT, Budgetary Control, Observation, Inspection,
Reports, etc. are some of the methods used for comparison.

For e.g. 10,000 units (Standard) - 9,000 units (Actual Performance) = 1,000 units (Negative Deviation).

4. Corrective Action

After finding out the negative deviations and their causes, the managers should take steps to correct these
deviations. Corrective actions should be taken promptly. Corrective action may include, changing the
standards, providing better motivation, giving better training, using better machines, etc. The
management should take essential steps to prevent these deviations in the future.

For e.g. The cause of the negative deviation was less advertising and untrained salesmen. So, the
company must spend reasonable money on advertising and training.

5. Follow-up
After taking corrective action, the management must do a follow-up. Follow-up is done to find out
whether the corrective actions are taken properly. It also finds out whether the deviations and their causes
are removed. If follow-up is done properly, then the actual performance will be equal to or better than
the established standards.

Q. What are the Types of Critical Points Standards

Every objective, every goal of the many planning programs, every activity of these programs, every
policy, every procedure, and every budget can become a standard against which actual or expected
performance might measured. In practice, however, standards tend to be of the following types:

• Physical Standards: Physical standards are nonmonetary measurements and are common at the
operating level, where materials are used, labor is employee, services are rendered, and goods are
produced. They may reflect quantities, such as labor-hours per unit of output, sounds of fuel per
horsepower per hour, ton-miles of freight traffic carried, units of production per machine-hour, or feet
of wise per ton of copper, closeness of tolerances, rate of climb of an airplane, durability of a fabric, or
fastness of color.
• Cost Standards: Cost standards are monetary measurements and like physical standards, are
common at the operating level. The attach monetary values to specific aspects of operations. Illustrative
of cost standards are such widely used measures as direct and indirect costs per unit or per hour,
material cost per unit, machine-hour costs, cost per seat-mile, selling cost per dollar unit of sales, and
cost per foot of oil well drilled.
• Capital Standards: There are a variety of capital standards, all arising from the application of
monetary measurements to physical items. They have to do with the capital invested in the firm rather
than with operating costs and are therefore primarily related to the balance sheet rather than to the
income statement. Perhaps the most widely used standard for new investment, as well as for overall
control, is return on investment. The typical balance sheet will disclose other capital standards, such as
the ratios of current assets to current liabilities, debt to het worth, fixed investment to total investment,
cash and receivables to payables, and bonds to stocks, as well as the size and turnover of inventories.
• Revenue Standards: Revenure standards arise from attaching monetary values to sales. They may
include such as revenue per bus passener-mile, average sales per customer, and sales per capital in a
given market area.
• Program Standards: A manager may be assigned to install a variable budget program, a program for
formally following the developement of new products, or a program for improving the quality of a
sales force. Although some subjective judgment may have to be applied in appraising program
performance, timing and other factors can be used as objective standards.
• Intangible Standards: More difficult to set are standards not expressed in either physical or
monetary measurements. What standard can a manager use for determining the competence of the
divisional purchasing agent or the personnel director? What can one use for determining whether the
advertising program is successful? Are supervisors loyal to the company's objectives? Are the office
staff alert? Such questions show the difficulty of establishing standards or goals for clear quantitative
or qualitative measurement.
• Goals as Standards: With the present tendency for better-managed enterprises to establish an entire
network of verifiable or quantitative goals at every level of management, the use of intangible
standards, while still important, is diminishing. In complex program operations, as well as in the
performance of mangers themselves, modern managers are finding that through research and thinking it
is possible to define goals that can be used as performance standards. While the quantitative goals are
likely to take the form of the standards outlined above, the definition of qualitative goals represents an
important development in the area of standards. For example, if the program of a district sales office is
spelled out to include such elements as training sales people in accordance with a plan with specific
characteristics, the plan and its characteristics themselves furnish standards that tend to become
objective and therefore "tangible."
• Strategic Plans as Control Points for Strategic Control: Strategic control requires systematic
monitoring at strategic control points and modifying the organization's strategy based on this
evaluation. As pointed out earlier, planning and controlling are closely related. Therefore, strategic
plans require strategic control. Moreover, since control facilitates comparison of intended goals with
actual performance, it also provides opportunities for learning, which in turn is the basis for
organizational change. Finally, through the use of strategic control, one gains insights not only about
organizational performance but also about the ever-changing environment.

Q. What is Benchmarking? - Definition, Types, Process &

Examples.
Companies use benchmarking as a way to compare key metrics to other businesses in the industry. This
allows companies to see how well they are performing and identify ways they can become more
competitive in the industry. In this lesson we will look at the different types of benchmarking, the stages
of benchmarking, and a real world example.
Definition
Before more recent technology was invented, surveyors would chisel a horizontal mark in a permanent
structure, like the one below, where a tool could be placed in the indention to help create a bench mark
with a level rod, helping them and future craftsmen to have a point of reference for building.
In the business world, companies use benchmarking as a point of reference as well. But instead of having
physical benchmarks carved in stone, they use benchmark reports as a way to compare themselves to
others in the industry. Benchmarking is the practice of a business comparing key metrics of their
operations to other similar companies.
You can also think of a benchmark report as a dashboard on a car. It is a place you can quickly determine
the health of the business. Much like a dashboard (where you can check your speed, gas level,
temperature), a benchmark report can examine things like revenue, expenses, production amounts,
employee productivity, etc.
Benchmarking occurs across all types of companies (including private, public, non-profit, for-profit) as
well as industries (e.g. technology, education, manufacturing). Many companies have positions or offices
in the company that are in charge of benchmarking. Some of the positions include:

• Institutional researcher
• Information officer
• Data Analyst
• Consultant
• Business analyst
• Market researcher

Why Do Companies Benchmark?

Companies use benchmarking as a way to help become more competitive. By looking at how other
companies are doing, they can identify areas where they are underperforming. Companies are also able
to identify ways that can improve their own operations without having to recreate the wheel. They are
able to accelerate the process of change because they have models from other companies in their industry
to help guide their changes.

What are Some Different Types of Benchmarking?

Best Practices- This is a benchmark report where companies choose to look at a company or companies
that they aspire to be like. By choosing companies that are on the leading edge of the industry, they can
identify best practices that help improve their own company.
Peer Benchmarking- This is a benchmark report where companies choose to look at other businesses
very similar to themselves. This allows companies to make sure they are staying competitive with similar
businesses.
SWOT- This is a type of benchmarking report where companies gather data by looking at Strengths,
Weaknesses, Opportunities, and Threats to help understand their climate.
Collaborative Benchmarking- Many industries have associations they can join (e.g. The Association of
Information Technology Professionals, The National Education Association). These collaborative
associations allow for members to provide information to the association. The association can then
provide benchmarking and best practice reports for the membership.
Benchmarking Process
Step 1. Determining Benchmark Focus- During this phase the company determines the specifics of the
research project. (e.g., which companies will they include in the research, what types metrics they will
compare).
Step 2. Planning and Research- During this phase the company puts the resources together to implement
the project (e.g., develop surveys, seek cooperation from other companies, find databases already
available).
Step 3. Gathering Data- During this phase the data is collected through the methodology determined in
the planning and research phase.
Step 4. Analysis- After gathering the data, the company uses statistical techniques to examine and create
the findings.
Step 5. Recommendations- After analyzing the data and areas where the company can improve,
recommendations are developed.
Step 6. Implementation- After reviewing recommendations, the company implements those that are
feasible.

Q. What is Organizational Management

Definition
The process of organizing, planning, leading and controlling resources within an entity with the overall
aim of achieving its objectives. The organizational management of a business needs to be able to make
decisions and resolve issues in order to be both effective and beneficial.

The Management and Organization Department teaches undergraduate and graduate courses in the fields
of strategy, organization behavior, leadership, strategy formulation, organization design, developing
teams, and motivating employees. Many of our faculty members teach you, the student, the importance
of learning the management function.

The management function in organizations is concerned with achieving effective performance in meeting
the goals and objectives that keep the firm competitive and profitable. In carrying out their
responsibilities, managers must utilize human resources to accomplish their goals. Managers are
expected to balance the demands in the external environment with the resources and capability inside the
organization to achieve a "strategic" fit between goals and accomplishment. These are the goals our
faculty and department keep in mind when improving or creating new courses.

Your faculty and doctoral students are involved in the study of these aspects of business administration.
The department is comprised of more than 40 full and part-time faculty members, and 20 doctoral
students. Their research interests cover a broad range of topics and disciplines, and they are dedicated to
teaching students the skills they will need to succeed in management careers.
Q. What Is the Difference Between an Informal & Formal
Organization?
1. Meaning

Formal Organisation is formed when two or more persons come together. They have a common
objective or goal. They are willing to work together to achieve this similar objective.

Formal Organisation has its own rules and regulation. These rules must be followed by the members
(employees and managers). A formal organisation has a system of co-ordination. It also has a system of
authority. It has a clear superior-subordinate relationship. In a formal organisation, the objectives are
specific and well-defined. All the members are given specific duties and responsibilities. Examples of
formal organisation are:- a company, a school, a college, a bank, etc.

Informal Organisation exists within the formal organisation. An informal organisation is a network of
personal and social relationships. People working in a formal organisation meet and interact regularly.
They work, travel, and eat together. Therefore, they become good friends and companions. There are
many groups of friends in a formal organisation. These groups are called informal organisation.

An informal organisation does not have its own rules and regulation. It has no system of co-ordination
and authority. It doesn't have any superior-subordinate relationship nor any specific and well-defined
objectives. Here in informal organisation, communication is done through the grapevine.

2. Formed by Whom? A formal organisation is formed by the top level management.

An informal organisation is formed by social forces within the formal organisation.

3. Rules and Regulations : The members of a formal organisation have to follow certain rules and
regulations. These rules are available in writing (documented). They are made by a formal authority
(superiors). If the members follow these rules properly, then they will be rewarded. However, if they do
not follow these rules, they will be punished.

The members of an informal organisation do not have to follow any rules and regulations.

4. Duties and Responsibilities In a formal organisation, the duties, responsibilities, authority and
accountability of each member is well-defined.

In an informal organisation, there are no fixed duties, responsibilities, authority, accountability, etc. for
the members.

5. Objectives or Goals In a formal organisation, the objectives or goals are specific and well-
defined. The main objectives of a formal organisation are productivity, growth, and expansion.
In an informal organisation, the objectives are not specific and well-defined. The main objectives of an
informal organisation are friendship, security, common interest, individual and group satisfaction, etc.

6. Stability A formal organisation is stable.

An informal organisation is not stable.

7. Channels of Communication A formal organisation uses formal channels of communication.

An informal organisation uses informal channels of communication (i.e. grapevine)

8. Organisation Chart A formal organisation is shown on the organisation chart.

An informal organisation is not shown on the organisation chart.

9. Superior-Subordinate Relationship In a formal organisation, there exist a superior-subordinate

relationship.

In an informal organisation, there is no such superior-subordinate relationship.

10. Benefits for Members The members of the formal organisation get financial benefits and perks
like wages or salaries, bonus, travelling allowances, health insurance, etc.

The members of informal organisation get social and personal benefits like friend circle, community,
groups, etc.

Q. Difference between Entrepreneur and Intrapreneur.

Entrepreneurs and intrapreneurs set themselves apart from typical employees in many ways; but most
especially in their relationship with the business they’re in. Employees are merely involved with the
business; whereas, entrepreneurs and intrapreneurs are committed to the business. You can compare it to
a cow. When a cow produces milk, it is involved; but when a cow becomes a burger, it is committed.

Now, let’s compare entrepreneurs with intrapreneurs…

An entrepreneur is someone who, through his or her skills and passion, creates a business and is willing
 to take full accountability for its success or failure. An intrapreneur, on the other hand, is someone who
utilizes his or her skill, passion and innovation to manage or create something useful for someone else’s
business... with entrepreneurial zest.

Though both are visionary, it is the entrepreneur who spots an opportunity in the marketplace and has
the courage and zeal to turn this opportunity into a business. In contrast, however, the Intrapreneur uses
his or her passion, drive and skills to manage the business or create something new and useful for the
business.

The main disparity between an entrepreneur and an intrapreneur is that an entrepreneur has the freedom
to act on his or her whim; whereas, an intrapreneur may need to ask for management’s approval to make
certain changes in the company’s processes, product design or just about any innovation he or she needs
to implement. Since an intrapreneur acts on innovative impulses, this may result in conflict within the
organization. It is important for organizations who are implementing intrapreneurship, to create an
atmosphere of mutual respect among employees.

When it comes to resources, the intrapreneur holds an advantage over the entrepreneur since the
company’s resources are readily available to him or her. Conversely, an entrepreneur has the difficult
task of sourcing for funding and resources on his or her own.

So, in summary…

Intrapreneurs vs. Entrepreneurs

• Entrepreneurs provide the spark. Intrapreneurs keep the flame going.
• Entrepreneurs are found anywhere their vision takes them. Intrapreneurs work within the confines of an
organization.
• Entrepreneurs face many hurdles, and are sometimes ridiculed and riddled with setbacks. Intrapreneurs
may sometimes have to deal with conflict within the organization.
• Entrepreneurs may find it difficult to get resources. Intrapreneurs have their resources readily available
to them.
• Entrepreneurs may lose everything when they fail. Intrapreneurs still have a paycheck to look forward to
(at least for now) if they fail.
• Entrepreneurs know the business on a macro scale. Intrapreneurs are highly skilled and specialized.
What makes entrepreneurs and intrapreneur similar is the passion to see things through to the end and
the courage to face failure.

Q. DIFFERENCE BETWEEN ENTREPRENEUR-

INTRAPRENEUR-TRADITIONAL MANAGER
ENTREPRENEUR

Ø People who have a talent for seeing opportunities and the abilities to develop those opportunities into
profit-making businesses.
 INTRAPRENEUR

Ø The practice of using entrepreneurial skills without taking off the risks or accountability associated with
entrepreneurial activities. It is practiced by employees within an established organization using a
systemized business model.

CHARACTERISTICS ENTREPRENEUR INTRAPRENEUR TRADITIONAL

MANAGER

PRIMARY Wants freedom, goal Wants freedom and Wants promotion and
MOTIVES oriented, self reliant, access to corporate other traditional
and self motivated resources, goal corporate rewards
oriented and self power motivated,
motivated, but also
responds to corporate
rewards and
recognition.
TIME Uses and goals of 5 to End goals of 3 to 15 Responds to quotes
ORIENTATION 10 year growth of the years, depending on and budgets ; to
business as guides; the type of venture; weekly, monthly,
takes action how to urgency to meet self quarterly, and annual
next step along the way imposed and corporate planning horizons;
time tables and to the next
promotion or transfer,
TENDENCY TO Gets hand dirty; may Gets hands dirty; may Delegates action;
ACTION upset employee by know how to delegate supervising and
suddenly doing their but when necessary, reporting takes most
work, does what needs to be energy,
done,
SKILLS Knows business Professional Professional
intimately; more management ; often management ; often
business acumen then business school business school
managerial or political trained; uses abstract trained; uses abstract
skills; often technically analytical tools, analytical tools,
trained if in technical people-management people-management
business; may have had and political skills, and political skills,
profit and loss
responsibility in the
company,
 ATTITUDE Self confident, Sees others being in Self confident and
TOWARDS optimistic and charge of his or her courageous; many are
COURAGE AND courageous, destiny; can be forceful cynical about the
DESTINY and ambitious but may system but optimistic
be fearful of others about their ability to
ability to do him or her outwit it.
in,
FOCUS OF Primarily on Both inside and Primarily on events
ATTENTION technology and outside; sells insiders inside corporation,
marketplace, on needs of venture
and market place but
also focuses on
customers.
ATTITUDE Likes moderate risk; Like moderate risks; Cautions,
TOWARDS RISK invests heavily but generally not afraid of
expects to succeed, being fired, so sees
little personal risk,
USE OF MARKET Creates needs; creates Does own market Has market studies
RESEARCH products that often research and initiative done to discover
cannot be tested with market evaluation, like needs and guide
market research; the entrepreneur. product
potential customers do conceptualization,
not yet understand
them; talks to
customers and forms
own opinion,

Human Resource Development (HRD)

INTRODUCTION

Development of human resources is essential for any organisation that would like to be dynamic and
growth-oriented. Unlike other resources, human resources have rather unlimited potential capabilities.
The potential can be used only by creating a climate that can continuously identify, bring to surface,
nurture and use the capabilities of people. Human Resrouce Development (HRD) system aims at creating
such a climate. A number of HRD techniques have been developed in recent years to perform the above
task based on certain principles. This unit provides an understanding of the concept of HRD system,
related mechanisms and the changing boundaries of HRD.

Human Resource Development (HRD) is the framework for helping employees develop their personal
and organizational skills, knowledge, and abilities. Human Resource Development includes such
opportunities as employee training, employee career development, performance management and
development, coaching, mentoring, succession planning, key employee identification, tuition assistance,
and organization development.

Human Resource Development can be formal such as in classroom training, a college course, or an
organizational planned change effort. Or, Human Resource Development can be informal as in employee
coaching by a manager. Healthy organizations believe in Human Resource

Importance Of Human Resource Development (HRD)

Human resource is needed to be developed as per the change in external environment of the organization,
hence, HRD helps to adapt such changes through the development of existing human resource in terms
of skill and knowledge.

The importance or significance of HRD can be explained as follows:

1. HRD Develops Competent HR

HRD develops the skills and knowledge of individual, hence, it helps to provide competent and efficient
HR as per the job requirement. To develop employment's skill and competencies, different training and
development programs are launched.

2. HRD Creates Opportunity For Career Development

HRD helps to grasp the career development opportunities through development of human skills and
knowledge. Career development consists of personal development efforts through a proper match
between training and development opportunities with employe's need.

3. Employ Commitment

Trained and efficient employees are committed towards their jobs which is possible through HRD. If
employees are provided with proper training and development opportunities, they will feel committed to
the work and the organization.
4. Job Satisfaction

When people in the organization are well oriented and developed, they show higher degree of
commitment in actual work place. This inspires them for better performance, which ultimately leads to
job satisfaction.

5. Change Management

HRD facilitates planning, and management of change in an organization. It also manages conflicts
through improved labor management relation. It develops organizational health, culture and environment
which lead to change management.

6. Opportunities For Training And Development

Trainings and development programs are tools of HRD. They provide opportunity for employee's
development by matching training needs with organizational requirement. Moreover, HRD facilitates
integrated growth of employees through training and development activities.

7. Performance Improvement

HRD develops necessary skills and abilities required to perform organizational activities. As a result of
which, employees can contribute for better performance in an organization. This leads to greater
organizational effectiveness.

HRD evaluation steps

o Step 1: Reaction - How well did the learners like the learning process?
o Step 2: Learning - What did they learn? (the extent to which the learners gain knowledge and
skills)
o Step 3: Behavior - (What changes in job performance resulted from the learning process?
(capability to perform the newly learned skills while on the job)
o Step 4: Results - What are the tangible results of the learning process in terms of reduced cost,
improved quality, increased production, efficiency, etc.?

Ethical Issues In HR
Of all the organisational issues or problems, ethical issues are the most difficult ones to handle or deal with.
Issues arise in employment, remuneration and benefits, industrial relations and health and safety.

▪ Cash and Compensation Plans

There are ethical issues pertaining to the salaries, executive perquisites and the annual incentive
plans etc. The HR manager is often under pressure to raise the band of base salaries. There is
increased pressure upon the HR function to pay out more incentives to the top management and
the justification for the same is put as the need to retain the latter. Further ethical issues crop in
HR when long term compensation and incentive plans are designed in consultation with the CEO
or an external consultant. While deciding upon the payout there is pressure on favouring the
interests of the top management in comparison to that of other employees and stakeholders.

▪ Race, gender and Disability

In many organisations till recently the employees were differentiated on the basis of their race,
gender, origin and their disability. Not anymore ever since the evolution of laws and a regulatory
framework that has standardised employee behaviours towards each other. In good organisations
the only differentiating factor is performance! In addition the power of filing litigation has made
put organisations on the back foot. Managers are trained for aligning behaviour and avoiding
discriminatory practices.

▪ Employment Issues

Human resource practitioners face bigger dilemmas in employee hiring. One dilemma stems from
the pressure of hiring someone who has been recommended by a friend, someone from your
family or a top executive.

Yet another dilemma arises when you have already hired someone and he/she is later found to
have presented fake documents. Two cases may arise and both are critical. In the first case the
person has been trained and the position is critical. In the second case the person has been highly
appreciated for his work during his short stint or he/she has a unique blend of skills with the right
kind of attitude. Both the situations are sufficiently dilemmatic to leave even a seasoned HR
campaigner in a fix.

▪ Privacy Issues

Any person working with any organisation is an individual and has a personal side to his existence
which he demands should be respected and not intruded. The employee wants the organisation to
protect his/her personal life. This personal life may encompass things like his religious, political
and social beliefs etc. However certain situations may arise that mandate snooping behaviours on
the part of the employer. For example, mail scanning is one of the activities used to track the
activities of an employee who is believed to be engaged in activities that are not in the larger
benefit of the organisation.

Similarly there are ethical issues in HR that pertain to health and safety, restructuring and layoffs
and employee responsibilities. There is still a debate going on whether such activities are ethically
 permitted or not. Layoffs, for example, are no more considered as unethical as they were thought
of in the past.

Q. What Are Internal and External Environments?

If there is anything that is steadfast and unchanging, it is change itself. Change is inevitable, and
organizations that don't accept change and that make adjustments to their business model based on
changes are doomed to fail. There are events or situations that occur that affect the way a business
operates, in a positive or negative way. These events or situations can have either a positive or a
negative impact on a business and are called 'environmental factors.'
There are two types of environmental factors: internal environmental factors and external
environmental factors. Internal environmental factors are events that occur within an organization.
Generally speaking, internal environmental factors are easier to control than external environmental
factors. Some examples of internal environmental factors are as follows:

• Management changes
• Employee morale
• Culture changes
• Financial changes and/or issues

External environmental factors are events that take place outside of the organization and are harder to
predict and control. External environmental factors can be more dangerous for an organization given
the fact they are unpredictable, hard to prepare for, and often bewildering. Some examples of external
environmental factors are noted below:

• Changes to the economy

• Threats from competition
• Political factors
• Government regulations
• The industry itself

Q. How do Internal and External Factors Drive

Organizational Change?
The Internal Environment
The internal environment of an organization refers to events, factors, people, systems, structures and
conditions inside the organization that are generally under the control of the company. The company's
mission statement, organizational culture and style of leadership are factors typically associated with the
internal environment of an organization. As such, it is the internal environment that will influence
organizational activities, decisions and employee behavior and attitudes. Changes in the leadership style,
the organization's mission or culture can have a considerable impact on the organization.

The External Environment

The external environment are those factors that occur outside of the company that cause change inside
organizations and are, for the most part, beyond the control of the company. Customers, competition, the
economy, technology, political and social conditions and resources are common external factors that
influence the organization. Even though the external environment occurs outside of an organization, it
can have a significant influence on its current operations, growth and long-term sustainability. Ignoring
external forces can be a detrimental mistake for managers to make. As such, it is imperative that managers
continually monitor and adapt to the external environment, working to make proactive changes earlier
on rather than having to take a reactive approach, which can lead to a vastly different outcome.

Code of conduct
A code of conduct is a set of rules outlining the social norms and rules and responsibilities of, or proper
practices for, an individual, party or organization. Related concepts include ethical, honor, moral codes
and religious laws.

In its 2007 International Good Practice Guidance, "Defining and Developing an Effective Code of
Conduct for Organizations", the International Federation of Accountants[1] provided the following
working definition:

"Principles, values, standards, or rules of behaviour that guide the decisions, procedures and
systems of an organization in a way that (a) contributes to the welfare of its key stakeholders, and
(b) respects the rights of all constituents affected by its operations."

A common code of conduct is written for employees of a company, which protects the business and
informs the employees of the company's expectations. It is ideal for even the smallest of companies to
form a document containing important information on expectations for employees. The document does
not need to be complex or have elaborate policies, but the file needs a simple basis of what the company
expects from each employee.

Intrapersonal & Interpersonal Conflict

Intrapersonal Conflict
Intra means "within" so
intrapersonal conflict is also called intrapsychic conflict. It occurs within you. This conflict can develop
out of your own thoughts, ideas, emotions, values and predispositions,Intrapersonal conflict occurs
when you internally argue with yourself about something, such as when you want a new pair of shoes
but you know you should not spend the money on them.

Interpersonal Conflict
Inter mean "between" so
In interpersonal conflict, you are in conflict with other individuals. This is considered a major level of
conflict and can occur between co-workers, siblings, spouses, roommates and neighbors

Intrapersonal Conflict
By definition, this conflict occurs within our own mind.
To elaborate, no other party is involved in the decision-making process.
A simple example of an intrapersonal conflict would be, a woman unable to make up her mind whether
she should go to the office party or stay at home and relax. Or, a student in conflict with herself, when
she is unable to decide if she wants to go to the club or finish her assignment.

Interpersonal Conflict

In the simplest terms, it is a conflict between two individuals.

The conflict may be due to any reason or subject, but the fact is, the two individuals involved have
opposing views about the same thing.
Consider a simple subject like the health benefits of a vegan diet. One individual may argue that vegan
is the way to go, while the other may opine that a non-vegan diet is better for the body.
Both views contrast with each other, thus, this is an example of interpersonal conflict.

Intrapersonal Vs. Interpersonal

Aspects Involved

◼ Self-awareness, expectation, and perception are the three main aspects of intrapersonal
communication. These aspects involve using one's beliefs, thoughts, emotions, values, and attitudes.
◼ Oral and written communication as well as internal negotiation form the basic aspects of
interpersonal communication. They involve thinking, analysis, clarification of ideas, speaking, writing,
etc.

Categorization

◼ There are three main types of intrapersonal conflict:

Approach-approach
Approach-avoidance
Avoidance-avoidance

◼ Interpersonal conflicts contain several types and sub-types, noteworthy among them being:

Direct
Mediated
Mass

Third-party intervention

An intrapersonal conflict can lead you to rethink and overwork your mind, get into definite confusion,
and even lead to depression. A third-party intervention in this case would be your family and friends,
with whom you can talk and discuss and resolve your fears and conflicts. It is one of best intrapersonal
resolution strategies.
◼ An interpersonal conflict mostly takes place among friends, family, colleagues, neighbors, etc. It
teaches you the principles of adjustment and compromise. A third-party intervention is essential if the
conflict gets too heated up.

Examples

◼ Having a conflict with oneself can range from trivial matters, like deciding what to wear, to
something more serious like choosing your life partner. All said and done, if your conflict is resolved
soon, well and good, if not, you need to seek help from others.
◼ Most debates between people can be considered as examples of interpersonal conflicts. Each
individual has his/her own perspective and some conflicts can remain unresolved for long. Especially
in the workplace, an unresolved interpersonal conflict can cause problems and an unstable working
environment.

Conflicts are common in our daily life, and as long as they are easily resolved, it is fine (for the mind
and body). If not, you can endanger your inner beliefs, your behavior, your attitude, etc. A common
element of interpersonal and intrapersonal conflict is the intervention of another party. This is essential
in both cases to understand the reason behind the conflict, the importance of having a solution, and the
most important of all, to look at the issue from a different perspective.

Principles & Policies for Managing Human Resources

Foundations
0 - 1 Purpose

Principles & Policies for Managing Human Resources is designed to:

• Provide an enabling set of standards to guide managers in making decisions about managing the
people in their organizations
• Provide a source for all corporate policies related to human resource management
• Provide managers with a principles-based approach to managing people
• Guide human resource professionals in advising managers.
• Human resource management includes broad managerial functions related to directing
organizations: human resource planning, organization design and organization development,
diversity and employment equity. It also includes functions related to managing employees:
staffing, classification, compensation, labour relations and training.

0 - 2 Principles of Human Resource Management

Principles are fundamental beliefs - generally constant and unchangeable. The principles of human
resource management, derived from legislation, management philosophy and organizational values, are
touchstones which enable managers to exercise judgment in a variety of situations.

The following principles guide human resource management in government:

Merit The principle of merit means that decisions about appointments and pay are
based on an unbiased assessment of one's competencies (e.g. knowledge, skills
and abilities). This principle is derived from The Civil Service Act.

Fairness Fairness refers to conduct that is unbiased, just and honest. It may also mean
treating employees consistently. The principle of fairness, enshrined in The
Labour Relations Act, is fundamental to employee relations.

Diversity Diversity recognizes that people have individual characteristics that make them
distinct from others, including age, language, culture, ethnicity, skills, gender,
abilities, talents and perspectives. Diversity enriches an environment by
facilitating the exchange of different perspectives and ideas.

Equity Equity means applying the principles of justice to correct or supplement

employment practices to redress disadvantages experienced by individuals in
the workplace. Employment equity is achieved when organizations are
representative, fair, inclusive, diverse and respectful of differences. Equity
sometimes means treating people the same in spite of their differences. It can
also mean treating people differently as a means to achieve equality. This
 principle is enshrined in The Charter of Rights & Freedoms and The Manitoba
Human Rights Code.

Reasonableness Reasonableness means conduct which is sensible, in moderation and based on

sound judgment. The principle of reasonableness is a key concept in The
Labour Relations Act and The Manitoba Human Rights Code.

Transparency Transparency refers to policies that are clear, frank and accessible. It also refers
to conduct being free from pretense or deceit. It encompasses the principles of
access to information embodied in The Personal Investigations Act and The
Freedom of Information & Protection of Privacy Act.

Natural Justice Natural justice means that all administrative procedures are fair and are
perceived to be fair because due process has been followed.

Public Interest The public interest is served when all actions and decisions of public officials
and managers are based on merit, fairness and reasonable consideration of the
public's need for service, efficiency, effectiveness, representation and access to
information and opportunities.This principle is fundamental to The Civil
Service Act.

Policies are rules, documented as standards of conduct. They are derived from principles and
legislation and designed to help managers decide the right course of action for a specific situation.

0 - 3 Philosophy of Human Resource Management

The management philosophy of the Manitoba Government is based on fundamental concepts outlined
in another publication, The Management Practices Guide. These concepts include the following:

1. People are the most valued asset in the Manitoba Government. Government's employees are
managed with diligence and respect. Managers should demonstrate an honest commitment to
using the full potential of every employee and encourage employees to realize their potential.
2. Effective management creates a goal-oriented atmosphere resulting in excellent service to the
public. Managers work efficiently with assigned employees to achieve results so that the public
enjoys maximum value for each tax dollar spent.
3. Each manager's outlook must be corporate. By looking beyond the boundaries of their specific
areas of responsibilities, managers are able to align their organization's efforts with broader
government and departmental objectives.
4. Managers are change agents, initiating better methods and managing the process of change.
5. Human resource planning is a key element of strategic planning, resource allocation and
operational planning.

0 - 4 Legislative Framework
The primary legislative framework for human resource management in government is The Civil Service
Act. The underlying legislative framework which is paramount to the The Civil Service Act includes:

• The Canadian Charter of Rights and Freedoms which guarantees equality and mobility rights
and freedom from unreasonable discrimination.
• The Manitoba Human Rights Code which prohibits unreasonable discrimination on matters
relating to employment. The Code prohibits systemic discrimination and requires managers to
make reasonable accommodation of differences related to characteristics prohibited by the
Code. It explicitly allows for Employment Equity programs.

Other legislation which impacts on human resource management:

• The Employment Standards Act sets out minimum working conditions for all individuals
employed in Manitoba.
• The Labour Relations Act promotes fair labour practices.
• The Personal Investigations Act establishes requirements for consent and disclosure in
investigations related to employment.
• The Freedom of Information and Protection of Privacy Act provides individuals with rights to
access information about themselves and government administration except in specified
situations.
• The Civil Service Superannuation Act
• The Workers' Compensation Act
• The Workplace Safety and Health Acts.

In addition, some employees are governed by applicable collective agreements which outline the terms
and conditions of employment. The Regulation respecting Conditions of Employment under The Civil
Service Act outlines the terms and conditions of employment for employees outside a bargaining unit.

0 - 5 Scope & Application

The policies contained in Principles & Policies for Managing Human Resources apply to all
departments. While departments may implement a supplementary policy if necessary, the Civil Service
Commission policy is paramount and provides the corporate standard.

These policies do not govern crown corporations, agencies, colleges or non-governmental

organizations. However, these organizations are welcome to adapt these policies for their organizations'
specific needs.

All managers in the Government of Manitoba are responsible for applying the policies contained in
Principles & Policies for Managing Human Resources. If managers need additional guidance in
applying these policies, Human Resources and the Civil Service Commission will provide technical
expertise and policy interpretation. The Civil Service Commission evaluates departments' Human
Resource programs to ensure accountability for applying these policies appropriately under their
delegated authorities.

0 - 6 Authorization

The policies in this manual are prepared by the Civil Service Commission and approved by the
responsible authorities under a Civil Service Commission minute. In the event of a conflict between the
electronic copy and the hard copy, the hard copy authorized by Civil Service Commission prevails.
Only the Civil Service Commission can authorize policies for this manual.
Q. What are the Basic Principles of HRM?
Being a company, managing its human capital, the main foundations of its success, at universal
standards and becoming the employees' choice is one of the main goal of the HRM Policy.

The main policy of the Company is to create high performing culture by improving the work with the
skills and the competencies of the individuals in order to meet the requirements of the job, and to
select, develop, assess, and manage human resources in compliance with international standards, and
with the principle of equal opportunities.
The human resources management (HRM) is committed to create a dynamic atmosphere that allows
development and innovation, to increase the performance of the employees, and therefore, to help
accomplish the Company objectives in an effective and efficient manner. Accordingly, structural and
corporate structures are created to meet the existing and future human resources requirements, and thus,
to support the Group management.

Vision

To become the pioneer in the sector, Turkey and the world with the use of Integrated Human Resources
practices.

Aim

To enhance job resuts of all TAV Group companies and all departments with the implementation
of human resources management aligned with group strategies, to maintain and encourage high
performing culture within the group in order to provide strategic support aimed at creating value for all
stakeholders.

Main principles are:

The human resources management aims, by its practices, at improving corporate and individual
performance.

Organizational structures are formed and reviewed, human resources needs are identified and work
force management is planned in line with TAV Holding's strategic goals and business requirements.

It is fundamental that individual and corporate performance are improved by customer-focused and
innovative approaches in all activities of the Group. All executives and employees are expected to
create and foster a climate conducive to creating distinction and value.

Products and services of high quality, measurable processes and management, high customer
satisfaction (internal and external) and process efficiency and integration are the main management
principles.

Business excellence and continuous success is achieved through integration of systems and
processes through measurable parameters.
 Management and evaluation of the corporate and individual performance is the main philosophy.
Employees are evaluated on the basis of their commitment and achievement of responsibilities,
competencies, contribution to the job and corporate goals. Superior performance is distinguished and
rewarded by defined means.

The selection and placement process is realized on the basis of equal opportunity principle. The most
appropriate people for the positions from local and international resources are being recruited.

All employees are expected to enhance knowledge, skills, and competencies. The Company,
believing that development is an individual initiative, provides necessary resources and supports its
people.

Remuneration for the positions is identified in line with job description, responsibilities, required
qualities and market value.

All employees have accepted corporate governance principles: Respect for human dignity and work,
open and honest communication and business ethics.

Social Responsibility
DEFINITION of 'Social Responsibility'

The idea that companies should embrace its social responsibilities and not be solely focused on
maximizing profits. Social responsibility entails developing businesses with a positive relationship to
the society which they operate in. According to the International Organization for Standardization
(ISO), this relationship to the society and environment in which they operate is "a critical factor in their
ability to continue to operate effectively. It is also increasingly being used as a measure of their overall
performance."

Corporate social responsibility - What does it mean?

One of the most frequently asked questions at this site - and probably for all those individuals and
organisations dealing with CSR issues is the obvious - just what does 'Corporate Social Responsibility'
mean anyway? Is it a stalking horse for an anti-corporate agenda? Something which, like original sin,
you can never escape? Or what?

Different organisations have framed different definitions - although there is considerable common
ground between them. My own definition is that CSR is about how companies manage the business
processes to produce an overall positive impact on society.
Take the following illustration:

Companies need to answer to two aspects of their operations. 1. The quality of their management - both
in terms of people and processes (the inner circle). 2. The nature of, and quantity of their impact on
society in the various areas.

Outside stakeholders are taking an increasing interest in the activity of the company. Most look to the
outer circle - what the company has actually done, good or bad, in terms of its products and services, in
terms of its impact on the environment and on local communities, or in how it treats and develops its
workforce. Out of the various stakeholders, it is financial analysts who are predominantly focused - as
well as past financial performance - on quality of management as an indicator of likely future
performance.

Other definitions
The World Business Council for Sustainable Development in its publication Making Good Business
Sense by Lord Holme and Richard Watts, used the following definition.

Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to
economic development while improving the quality of life of the workforce and their families as well as of the
local community and society at large

The same report gave some evidence of the different perceptions of what this should mean from a
number of different societies across the world. Definitions as different as CSR is about capacity
building for sustainable livelihoods. It respects cultural differences and finds the business opportunities
in building the skills of employees, the community and the government from Ghana, through to CSR is
about business giving back to society from the Phillipines.

Traditionally in the United States, CSR has been defined much more in terms of a philanphropic
model. Companies make profits, unhindered except by fulfilling their duty to pay taxes. Then they
donate a certain share of the profits to charitable causes. It is seen as tainting the act for the company to
receive any benefit from the giving.

The European model is much more focused on operating the core business in a socially responsible
way, complemented by investment in communities for solid business case reasons. Personally, I
believe this model is more sustainable because:

1. Social responsibility becomes an integral part of the wealth creation process - which if managed
properly should enhance the competitiveness of business and maximise the value of wealth creation to
society.
2. When times get hard, there is the incentive to practice CSR more and better - if it is a philanphropic
exercise which is peripheral to the main business, it will always be the first thing to go when push comes
to shove.

But as with any process based on the collective activities of communities of human beings (as
companies are) there is no 'one size fits all'. In different countries, there will be different priorities, and
values that will shape how business act. And even the observations above are changing over time. The
US has growing numbers of people looking towards core business issues.
For instance, the CSR definition used by Business for Social Responsibility is:

Operating a business in a manner that meets or exceeds the ethical, legal, commercial and public expectations
that society has of business.

On the other hand, the European Commission hedges its bets with two definitions wrapped into one:

A concept whereby companies decide voluntarily to contribute to a better society and a cleaner environment. A
concept whereby companies integrate social and environmental concerns in their business operations and in their
interaction with their stakeholders on a voluntary basis.

When you review each of these, they broadly agree that the definition now focuses on the impact of
how you manage your core business. Some go further than others in prescribing how far companies go
beyond managing their own impact into the terrain of acting specifically outside of that focus to make a
contribution to the achievement of broader societal goals. It is a key difference, when many business
leaders feel that their companies are ill equipped to pursue broaders societal goals, and activists argue
that companies have no democratic legitimacy to take such roles. That particular debate will continue.

Here are some suggestions for Human Resources leaders on how to

promote corporate social responsibility within their organizations:
1. Define corporate social responsibility for your company or industry.

What works for a bank or furniture manufacturer may be significantly different from a bottling
company or a grocery store chain.

2. Conduct extensive and continual research on the concepts of Corporate Social Responsibility.

The World Business Council for Sustainable Development, mentioned above, and the Global Reporting
Initiative (www.globalreporting.org) are two excellent research sources.

3. Establish metrics for measuring the impact of the company’s CSR practices.

For example, what percentage of after tax dollars is used to support these activities? How does it
compare to other comparable companies? How many labor hours per month or per year are set aside
for CSR activities? Quantitative metrics are easier to defend and promote than qualitative metrics.

4. Involve employees in defining and advancing CSR.

Form ad-hoc groups to decide how best to be appropriately socially responsible with the resources
available. Give them the authority and responsibility to figure out a way to make it happen. They will
do it far faster than some corporate committee.

5. Keep track of all measurable costs.

As much as the company wants to be socially responsible, it also has an obligation to be fiscally
accountable to other shareholders;
6. Communicate to everyone – sometimes subtly, sometimes loudly.

Publicize your activities internally to all employees and externally to all other stakeholders as
appropriate. Invite civic, religious, and corporate leaders in to show what you are doing and encourage
them to join you in their efforts.

7. Establish positive and pro-active relationships with other socially responsible companies.

There is power in numbers and they are always a great source of ideas that might work for your
organization.

Recruitment & Selection

Recruitment
Recruitmentis the process of searching for prospective employees and stimulating to apply for jobs in
the organization.
Recruitment is the process to discover the sources of manpower to meet the requirements of the staffing
the sources of manpower to meet the requirements of the staffing schedule and employ effective
measures for attracting the manpower in adequate numbers to facilitate effective selection of an
effective working force.
Recruitment is the process of finding and attracting capable applicants for employment. The result is a
pool of applicants from which new employees are selected .

Selection
Once the potential applicants are identified, the next step is to evaluate their
qualification , qualities,experiences, capabilities,etc..&make the selection.
It is the process of offering jobs to the desired applicants.

Selection means choosing a few from those who apply, It is picking up of applicants or candidates with
requisite qualifications and qualities to fill jobs in the organization.

Selection Process

Sourcing Candidates

This is the first step in the recruitment and selection process. Sourcing candidates means your
employment specialist is using a variety of methods to find suitable candidates for job vacancies.
Sourcing can be done via online advertising on job and career sites or professional networking and
participation in trade associations. Another creative sourcing technique employment specialists utilize
is monitoring employment changes at industry competitors to recruit applicants familiar with the same
type of business you are operating.
Tracking Applicants

The next steps in the recruitment and selection process are tracking applicants and applications and
reviewing resumes. Applicant tracking systems (ATS) are becoming extremely helpful to employers,
and this technology aids in the management of job vacancies and applications for every open position.
Employment specialists use ATSs to review applications and resumes. Following your employment
specialist's applicant review, he can then decide which applicants he wants to interview. With
some ATSs, applicants can track application status. An ATS can be developed for organizations of any
size, including small businesses.

Preliminary Phone Interview

Conducting a preliminary phone interview is essential for obtaining information about the
applicant's background, work history and experience. When your employment specialist
conducts a preliminary interview, the objective is to determine whether or not the applicant has the
requisite skills and qualifications for the job vacancy.

Face-to-Face Interview and Selection

In this stage of the recruitment and selection process, the hiring manager reviews the applications and
resumes the employment specialist forwarded to her. The hiring manager invites the applicant to
interview face-to-face; communication about the interview and scheduling is generally handled by the
employment specialist. This ensures that all qualified applicants receive the same information. At
times, the employment specialist will prepare the applicant for the face-to-face interview. After the
hiring manager interviews the applicant, she further narrows the field of candidates from which to
select for the job opening. In many companies, there is an additional interview by the same hiring
manager or perhaps a panel of interviewers.

Extending an Employment Offer

Once the hiring manager decides which candidate is most suitable for the job vacancy, it's time
to inform the candidate of pre-employment matters, such as background inquiries, drug tests and, if
applicable, licensing information.
When recruiting for positions where you negotiate the terms of employment, compensation and
benefits, and other issues, a draft employment offer may change hands from the candidate to the
employer until the parties reach an agreement. An employment offer should always be in writing to
document the terms of your agreement with your prospective employee.

Considerations

Your company's recruitment and selection process is the best way to achieve success in the
business world. According to Dr. Stuart Greenfield, contributor to the American Society for Public
Administration, "implementing more effective processes to recruit candidates and select 'the
best and the brightest' will improve one’s ability to meet one’s
organization’s human resource needs."