Principles of Management

Module V
Staffing & Related HRD functions
Authority & Power:

Power is the ability of individuals or groups to induce or influence the beliefs or actions of other persons
or groups whereas Authority is the right in a position to exercise discretion in making decisions affecting
others.

In the previous chapter we have seen how Departmentation is done. The very next important question is
regarding the delegation of authority among various designations.

Bases of Power: It may be legitimate power arises from position and derives from our cultural system of
rights, obligations, and duties whereby a position is accepted by people. E.g.: in a privately owned business
the authority arises from the social institution of private property. In government this authority basically
arises from the institution of representative government. It may come also from the expertness of a person or
a group. This is the power of knowledge. Physicians, Lawyers, Professors may have considerable influence on
others because they are respected for their specialized knowledge. The power may also arise as referent power

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like personality, ability to preach, strong ideas…etc…

Empowerment:It means that employees, managers or teams at all levels in the organization are given the
power to make decisions without asking their superiors for permission. The notion underlying this is that
those closest to the task are best able to make the decision. The employees and teams should accept
responsibility for their actions and tasks.

Always power should be equal to responsibility. Greater power with lesser responsibility will result in
autocratic behavior. When responsibility is greater than power it may result in frustration, for he may not
have necessary power to discharge the duties for which he is responsible. Effective management requires that
empowerment be sincere, based on mutual trust, accompanied by relevant information for the employees to
carry out their tasks. They also should be rewarded and recognized for exercising their decision authority.

Line & Staff Concepts: Line authority gives a superior line of authority over a subordinate. It exists in all
organizations as an uninterrupted scale or series of steps. The clearer the line of authority form the ultimate
management position in an organization to every subordinate position, the clearer will be the responsibility
for decision making and the more effective will be organizational communication. Line authority is that
relationship in which a superior exercise, direct supervision over a subordinate. (Scalar Principle in an
organization).

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 The nature of staff relationship is advisory. Their function is to investigate, research, and give advice to line
managers.

Functional Authority: It is the right delegated to an individual or a department to control specified

processes, practices, or other matters relating to activities undertaken by persons in other departments. It is a
small slice of authority of a line superior. In some cases line managers are deprived of some authority which
is delegated by their common superior to a staff specialist or to a manager in another department.

Staffing

Staffing is the process of filling positions/posts in the organization with adequate and qualified
personnel.Staffing is the process of acquiring, deploying, and retaining a workforce of sufficient quantity and
quality to create positive impacts on the organization's effectiveness

Definitions

According to McFarland, “Staffing is the function by which managers build anorganization through the
recruitment, selection, anddevelopment of individuals as capable employees.”

According to Koontz, O’Donnell and HeinzWeihrich, “The management function of staffing is defined as
fillingposition in the organization structure through identifyingworkforce requirements, inventorying the
people available, recruitment, selection, placement, promotion, appraisal, compensation, and training of

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Features of Staffing STUDENTS

1. All pervasive function of management.
2. Dynamic function.
3. Vast scope.

Major Objectives

 To understand all function of in an organization.

 To understand manpower planning so that people are available at right time and at a right place.
 To understand issues related to job analysis and to overcome the problem

Importance

1. Training and Development.

2. Effective Co-ordination.
3. Effective Recruitment & Placement.
4. Building effective human resource
5. Optimum Use of Resource.
6. Enhances Corporate Image.

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 7. Job Satisfaction.

Elements of Staffing

1. Manpower planning
2. Job analysis
3. Recruitment and selection
4. Training and Development
5. Performance appraisal
Scope of HR Planning
1. Hiring
2. Motivation
3. Employee maintenance
4. Human relations

Staffing Process

1. Planning: It is human resource planning, where the total number of staff members required in
various grade will be determined.
2. Recruitment and Selection: It deals with the selection of qualified applicants to fill the jobs in the
organization.

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3. Training and development: It is concerned with providing training to new staff members as well as

4. Performance operation: It is the assessment of the work performed by the staff members
5. Performance Operation: It deals with assessment of work done by the staff in an organization. A
standard may be fixed in order to evaluate the efficiency of the staff members.

Delegation of Authority
Delegation happens when a superior gives a subordinate the authority to take decisions.

Delegation Process:

1. Determining the results expected from a position

2. Assigning tasks to the position
3. Delegating Authority for accomplishing these tasks
4. Holding the person in that position responsible for the accomplishment of the tasks.

The Art of Delegation – Personal Attitudes toward Delegation

The success of delegation depends on how effectively the principles of delegation are applied and the personal
attitude.

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 Personal Attitudes

1. Receptiveness: The manager who does the delegation should have a willingness to give other people’s
ideas a chance. He should have a mind to listen to the genuine ideas and also to help others to come up
with ideas.
2. Willingness to let go: Managers should not continue taking decisions for the post, which they have left
and already delegated to the subordinate. Doing so would take their time and attention away from far
more important decisions.
3. Willingness to allow mistakes by Subordinates: When subordinatesare allowed to do mistakes
continuously that will badly affect both the company and the subordinate itself. At the same time
manager should not track each and every activity of the subordinate and correct mistakes, because this
would nullify effective delegation. Mistakes can be allowed to an extent and by careful explanation
without discouraging subordinates it should be corrected.
4. Willingness to trust subordinates: A manager should trust his subordinate once delegation is done. There
may be several reasons by which a manager does not trust his subordinate, such as lack experience of the
subordinate. In such cases the manager should train the subordinate to raise to the occasion or assign
somebody else who is capable to act.
5. Willingness to establish and use broad controls: A manger cannot delegate authority if there is no means
of getting feedbacks and moreover performance cannot be delegated at all. Unless and until a manager
use goals, policies, plans etc… as basic standards for judging the activities of subordinates, effective

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1.
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control will be very difficult in an organization.

Define assignments and delegate authority in light of results expected.

2. Select the person in light of the job to be done.
3. Maintain open lines of communication
4. Establish proper controls.
5. Reward effective delegation and successful assumption of authority.

Decentralization & Centralization of Authority

Decentralization is the tendency to disperse decision making authority in an organized structure. If there is
absolute centralization of authority in an organization there will not be any subordinate managers and it is
not possible in a structured organization. If managers delegate all their authority, their positions will no
longer exist. So absolute centralization or absolute decentralization are not possible in a structured
organization.

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 Recentralization of Authority

There can be circumstances at which an organization decides to do recentralization. It is not a complete

reversal of decentralization as the authority delegated is not completely withdrawn. The process is a
centralization of authority over a certain type of activity or function.

Advantages of Decentralization

1. Relieves top management of some burden of decision making and forces –level managers to let go
2. Encourages decision making and assumption of authority and responsibility
3. Give managers more freedom and independence in decision making
4. Promotes establishment and use of broad controls that may increase motivation
5. Makes comparison of performance of different organizational units possible.
6. Facilitates product diversification
7. Promotes development of general managers
8. Aids in adaptation to fast-changing environment.

Limitations of Delegation

1. Makes it more difficult to have uniform policy

2. Increases complexity of coordination of decentralized organizational units
3. May result in loss of some control by upper-level managers

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5.
6.
7.
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May be limited by inadequate planning and control techniques & system
Limitation of lack of qualified managers
Considerable expense for training
Limited by external forces, such as National labor unions, Governmental controls tax policies etc…
8. May not be favored by economies of scale of some operations.
Problems in delegation
1. Hesitation from superior
1. Perfectionism
2. Autocratic Attitude
3. Directions
4. Confidence
5. Control
6. Avoidance of Risk
7. Competition
8. Inability of the subordinate
9. Inability of the Superior
2. Hesitation from Subordinates
1. Love of Spoon feeding
2. Easier to ask

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 3. Fear of criticism
4. Lack of resource
5. Lack of self confidence
6. Other work
7. Inadequate incentives
8. Fear of failure

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EFFECTIVE ORGANIZING & CULTURE
Planning Avoids Mistakes in Organizing

Establishment of objectives and effective planning to achieve those goals would make organizing error
free. If the current human resource does not fit in to the ideal structure, the structure should be modified
to fit individual capabilities, attitudes or limitations. Planning organization structure would help in
determining the requirement future human resources and various training needs.

Maintaining Flexibility helps in effective Organizing

Flexibility can be maintained through reorganization. There may other compelling reasons by which we
do reorganization such as, Acquisition or Sale of properties, Changes in product line, marketing methods,
business cycles, competitive influences, new production technique, labor union policy, government
policy…etc…Reorganization may be caused by a new CEO or VP according to their own ideas and
experience. It may also be caused by reported deficiencies such as excessive span of management,
excessive number of committees, lack of uniform policy etc…There is a need for moderate and continuous
readjustment merely to keep the structure from becoming stagnant. Employees will get rotated among
various designations at intervals.

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 Making Staff Work Effective
Mangers must understand the nature of authority relationships clearly to solve any problem between line
and staff.Line managers should consult with staff before doing an important activity. Commonly staffs
are unable to know the complexity of a line manager’s job. It is very important to inform very clearly on
time to staff regarding the issues and problems with line manager and crew.When a recommendation is
done by staff, it should be clear in all respect.

Avoid Conflict
A major reason behind conflict in an organization is that people do not understand their assignments and
those of their coworkers. Proper use of organization charts, accurate job descriptions, spelling out of
authority and informational relationships would help a lot in this regard. An organization chart indicates
hoe departments are tied together along the principal lines of authority.

Ensuring understanding of organization

All the members of an organization must understand the structure of their organization in order to make
that structure work. A well written organization manual, containing a statement of organizational
philosophy, programs, charts and an outline of job descriptions would make the organizing
understandable. This can also be done by individual coaching, special meeting …etc…

Recognizing the Importance of Informal Organization and the Grape wine

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 Recognize and take the full advantage of informal organization. One of the best known example for
informal organization is “Grapevine”. Grapevine is an informal communication system used by members
of an organization to communicate some information may be a gossip for , which formal lines of
communication is inadequate
Benefits of Informal Organization
1. Brings cohesiveness to formal organization
2. Imparts a sense of belongingness, status, self-respect& satisfaction
Organization Culture
“It is the general pattern of behaviour, shared beliefs and values that organization members have in
common”
1. It involves learning and transmitting of knowledge, beliefs and patterns of behaviour over a period of
time
2. Culture is fairly stable and does not change fast. Many company slogans show for what they stand for...
E.g.General Electric. “Progress is our most important product”
Du pont “Better things for better living through Chemistry”

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 Promoting Appropriate Organization culture

Culture Responsive Organization

The effectiveness of an organization is influenced by the organization culture.The way in which
planning, organizing, staffing, and controlling are carried out in an organization.Most people would
prefer to work with an organization where they can participate in decision making, evaluation on the
basis of performance criteria...etc...

The influence of Leader on Organization Culture

The Manager’s values influence the direction of the enterprise. Value is a fairly permanent belief about
what is appropriate and what is not that guides the actions and behaviour of employees in fulfilling the
organization’s aims.In many successful companies value-driven corporate leaders serve as role models,
set the standards for performance, motivate employees etc...Changing a culture demands changing
values, symbols, behaviour etc...It may take a long time.

Responsive Organization
The Responsive Organization is built to learn and respond rapidly by optimizing for the open flow of
information; encouraging experimentation and learning on rapid cycles; and organizing as a network of
employees, customers, and partners motivated by shared purpose.Oct 7, 2014.With the advent of social
media and social collaboration technologies, many leaders in the space understand the radical shift that’s

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coming across the entire business landscape. As a result, the concept of a “responsive organization” is
emerging as the keyword mantra to define, not just the goal, but the very key to survival in the coming
tidal wave of transformation.
“If the rate of change on the outside exceeds the rate of change on the inside, the end is near” - Jack Welch
“The rate of change external to each of our organizations is now so great that no organization can ensure
it is changing faster than the external system. Global interconnectedness, the rapid speed of ideas in a
digital economy & new means of working and collaborating means that change will only continue to
accelerate” -Simon Terry
As the flow of information increases, companies are gaining competitive advantages by shifting their
focus from efficiency to their ability to learn and respond rapidly to new information. Companies today
are realizing that adaptability and iteration speed are paramount, necessitating a fundamental rethinking
of corporate structures and information systems.

The Shift
A number of fundamental shifts in corporate structures and information systems are required to take
advantage of the increased speed of information
1. From Efficiency to Responsiveness

2. From Hierarchies to Networks

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 3. From Controlling to Empowering

4. From Extrinsic Rewards to Intrinsic Motivation

5. From Office & Office Hours to Anywhere & Anytime

6. From Customers & Partners to Community

From Efficiency to Responsiveness

Historically, competitive advantages came from optimizing for efficiency and labor productivity of
standardized product, with companies such as Walmart and Ford being common examples. As the flow of
information increases, the competitive advantage is held by the organization that can react the fastest to
new information. Companies achieve increased responsiveness by reducing the friction of information
flow, increasing their iteration rate, decreasing their cost of failure, and optimizing their structures for
adaptability.

From Hierarchies to Networks

Organizational hierarchies were optimized for efficiency and predictability. They centralized authority to
eliminate duplication of responsibilities, but at the expense of responsiveness. Organizing into networks,
rather than hierarchies, reduces coordination overhead that slows down execution and thus increases the

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ability to make and test decisions. A robustly networked organization improves information sharing,
which in turn enhances information quality, context, and alignment through increased transparency.
The open flow of information in an organization gives those empowered individuals maximum context
and connections with which to make decisions and provides greater accountability through transparency.

Controlling to Empowering (Routine to Non-routine work)

As information flows faster, the pace of change is accelerating. Job descriptions, organizational
structures, budgets, and processes are becoming obsolete faster than they can be updated. Since 1975, the
number of jobs requiring non-routine work has increased by 50% (from 40% to 60%). These trends are
leading to increased pressure to exchange bureaucracy for trust – empowering more of the workforce to
act autonomously, instead of escalating to a central authority which creates bottlenecks and slows
decision making. The need for rapid, autonomous decision-making changes the role of management from
managing tasks to empowering individuals. The quickest response time occurs when a person learning
new information can make high-quality decisions and act immediately, regardless of their position in the
org chart.

Extrinsic Rewards to Intrinsic Motivation

Organizations have historically used performance targets and rewards to motivate employee behavior
toward predictable business outcomes. As adaptability and rapid iteration become key drivers of business
performance, organizations are recognizing that targets often discourage experimentation, discourage
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 failure, and limit adaptability. As information flows faster, targets become obsolete and can become
counter-productive before leaders can update them. In order to motivate the right behavior, employees
must be aligned on common objectives, be encouraged to experiment, and be provided an environment in
which they gain autonomy, mastery and purpose. These factors help make organizations more adaptable
and positively impact employee engagement. Organizations in the top decile of employee engagement
outperform their peers by 147 percent in earnings per share, and have 90 percent better growth trend
than their competition.

Office Hours TO Anywhere, Anytime

Until recently, workers needed to regularly be in the office during business hours to get their jobs done,
due to limited collaboration technology, lack of access from outside the corporate firewall, and reluctance
on the part of management to give up the illusion of control over their workers. Companies are
increasingly taking advantage of advances in technology which enable collaboration without being
collocated and they are becoming increasingly comfortable with employees working more flexible
schedules. According to a Tower and Watson survey, almost half of all global work is now happening in
non-traditional arrangements. The ability to connect with anyone from anywhere at any time increases
the speed at which information from anyone in the organization can be shared and acted upon.

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From Customers & Suppliers TO Community

Historically, customers and partners were treated as separate, independent entities, by separate,
independent parts of the organization. Additionally, the flow of information amongst customers and
amongst partners was slow, and thus sentiment and relationships could be largely controlled by
marketing, sales, and partner relationship teams. These factors kept the feedback channel narrow and on a
long cycle time. Today, technology has empowered customers and partners to communicate and
collaborate as networks, with more rapid information flow than companies can control. Organizations are
recognizing that it takes a network to serve a network, and to treat themselves, their partners, and
customers as parts of the same organization. This broader network enables access to better information,
faster feedback, and collaboration beyond the traditional company boundary.

These Trends Mean…

1. Participation NOT Consensus

2. Decentralized networks NOT Flat

3. Transparency NOT nothing is private

4. Anywhere & Anytime NOT No value in in-person/slacking off at home

5. Experimentation, some failures are okay NOT Completely unpredictable results

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 6. Decreasing cycle time NOT Lack of long term point of view

7. Adaptability NOT Lack of Direction

8. Empowerment NOT Lack of Leadership

9. Intrinsic motivation NOT Ignoring business objectives

Global & Entrepreneurial Organizing

The term “Global village” may appropriately describe the world we live in today. Advanced technologies
related to aerospace, communication, fiber optics and internet link people from all around the world. For
example Japan sends its young people to US to study management techniques and United States often
look to Japan for ways of implementing some of these techniques, such as quality management.

Many countries can contribute towards managerial theory and practice. The role of Manager is and
expanding and new approaches are required to avoid managerial obsolescence and improve managerial
productivity. We need more flexible planning and organizing approach which result in intellectual and
inspirational leadership around the world to make organization more productive for the benefit of
humanity.

Manager inventory Chart

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It is most important for any enterprise to keep an inventory of human resources particularly managers
just like raw materials. It is simply and organization chart of a unit with managerial positions indicated and
keyed as to the chance of promotion of each incumbent. The need for managers is determined by enterprise
and organization plans and more specifically by an analysis of the number of managers required and number
available.

Factors influencing demand and supply of managers:

External: Economic, Political, Technological, Legal

Internal: This will be specified by Inventory Chart

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KTU
Matching the Person with the Job
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Selection is choosing the most suitable person for the job either from inside or outside.

The Systems approach to Selection

Based on the Objectives, Forecasts, Plans, strategies the managerial requirements plan will be formulated and
from this plan the Position requirements will be charted. This would in turn be used in job design. While
designing the job Intelligence, Knowledge, Skills, and Experience for the designation should be considered. Once
the human resource plan is ready, i.e. the required numbers of human resource in quality and quantity,
strategies are adopted to fill up these vacancies. As per the requirement recruitment, selection, and placements
are done. Their performance will be monitored and promotions and recognitions will be given as when required.

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KTU Orientation
STUDENTS Managerial
Performance
Enterprise
Performance

Managerial
Requirements
plan
Development Appraisal &
Position Rewards
requirement
& Job Design

Individual
Characteristic
s Promotion
Demotion
Replacement
Retirement

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 Job Design

Job design is the process of deciding the contents of a job.

1. The duties and responsibilities of the job,
2. The methods of doing the job.
3. The relationships between the job holder (manager) and his superiors, subordinates and
colleagues.
Job Design – Steps

1. What tasks are required to be done or what tasks is part of the job?
2. How are the tasks performed?
3. Time required for each task to be done?
4. What is the sequence of performing these tasks?
5. Checking the work overload.
6. Checking upon the work under load.
7. Ensuring tasks are not repetitive in nature.
8. Ensuring that employees do not remain isolated.
9. Defining working hours clearly.
10. Defining the work processes clearly.

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Job Design – Options

Job Design motivates the employees for higher efficiency, productivity and generates job satisfaction than the one
designed on the basis of traditional engineering system.

Job design includes

Job Rotation - Job Rotation is a management approach where employees are shifted between two or more
assignments or jobs at regular intervals of time in order to expose them to all verticals of an organization.
Job Enlargement - Job enlargement means increasing the scope of a job through extending the range of its job
duties and responsibilities generally within the same level.
E.g. Factory worker, who previously was just installing a chip , may get the opportunity to assemble the entire
TV set
Job Enrichment - Job enrichment is an attempt to motivate employees by giving them the opportunity to use the
range of their abilities. For example, you allow a junior staff A to present the monthly report directly to senior
management
Result
1. Increasing the accountability of individuals for own work by having them present directly to
senior staff.

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 2. Granting additional authority to employees in their activities by trusting them to make a
presentation to a second-level manager.

Skills & Personal Characteristics needed in Managers

Analytical & Problem Solving Abilities
A Manager should have the ability to find opportunity in every problems. For this he has
to analyze the problem clearly and find the solution in the form of a new product or service or improvisation
of an existing product
1. Desire to manage:
To be successful a manager should have a strong desire to manage, to influence others and to get things
done through team works. This requires effort, time, energy, long hours of work etc…
2. Communication Skills & Empathy: A manager should have ability to communicate through written reports,
letters, group discussions, speeches …etc. It demands clarity and empathy, i.e. ability to understand the
feelings of others and to deal with the emotional aspects. Communication may be intragroup or intergroup.
3. Integrity & Honesty: Managers should keep integrity and honesty in all money matters, dealing with others
ethical matters…etc.
4. Past performance as manager
Past accomplishments are important considerations in the selection of a manager. If a previous experience is

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there as manager that will be an important positive factor for selection

Matching Qualifications with Position Requirements

When positions are identified managers are obtained through recruitment, selection, placement, and promotion.
Sources of managerial Personal
1. Within the enterprise
2. Hiring from outside
Recruitment of Managers:
“Attracting people to fill the positions in the organization structure”
Selection, Placement and Promotion:
In selection approach applicants are sought to fill the position. But in placement approach the strengths and
weaknesses of the individual are evaluated and a suitable position is found or designed. Promotion is a move
within the organization to a higher position

Selection Process Technique & Instruments

Interviews:

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 a. Interviewers should be trained
b. Interviewers should be prepared to ask right questions
c. Conduct Multiple interviews
d. It should be supplemented by data from application, test results…etc.

Tests:

a. Intelligence test: Mental capacity, memory, speeds of thought, ability to see relationships in
complex problems.
b. Proficiency and aptitude test: Interests, existing skills, and potential for acquiring skills
c. Vocational tests: To find out the most suitable occupation
Personality tests: To reveal the candidates personal character

Assessment Centres :

1. It is a technique for selecting and promoting managers. It may be used in combination with training. It is
intended to measure how a potential manager will act in a typical managerial situation.
2. Managers would do a series of exercises which resemble actual situations
3. During this period they are observed and assessed by psychologists or experienced managers. (who also
interview them from time to time)
4. At the end of assessment Centre period a conclusion is made on the potential of each manager attended

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Limitations of Selection Process

There is no one perfect way to select managers

2. Sometimes carefully chosen selection criteria are still imperfect in predicting performance
3. There is a distinction between what a manager can do and what he will do
4. Psychological testing has limitations.
5. Highly expensive

Orientation

It is a process by which a newly selected employee will be introduced to Functions Tasks and People.
Large organizations normally have a formal orientation program that explains, history, products,
services, general practices and policies…etc… There is another more important aspect of orientation
“Socialization of new managers”. It can be defined in several ways. A global view includes, 3 aspects

1. Acquisition of work skills and abilities

2. Adoptions of appropriate role behaviors
3. Adjustments to the norms and values of the work group.

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 Performance appraisal

HRM is that practical branch of management, which is related to procurement of human resources,
training and developing them, organizing and coordinating them and developing the pleasant human
relations in the organization.

Scope

1. Human resource planning : It is related with the determination of quality wise quantity of human
resources required in an organization
2. Job analysis &Design: It is the detailed and systematic study to know the nature and characteristics
of the people to be employed in different kinds of jobs.
3. Orientation & Placement: Orientation is a part of training, which is given to a newly selected
employee. Which would provide information regarding the organization, its rules, regulations…etc
4. Performance appraisal & Job evaluation: Performance appraisal is done to assess the performance of
an employee or a group if employees.
5. Training & Development: Proper required training should be given to all employees in time to
acquire new knowledge, practices and skill. This would help them to excel in the respective area.
6. Recruitment & Selection: Recruitment is a process by which companies search required qualified
human resources and stimulate them to apply for the job. Selection is a process of choosing the most
suitable persons out of all applicants.

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7. Employee and Executive remuneration: The human resource department should ensure equitable
wage and salary as well as equitable labour cost
8. Motivation: Appropriate measure should be taken by the Organization to motivate all the employees
in order to get maximum performance from them, such as incentives, promotions….etc
9. Communication: Proper communication should be maintained in the organization for the
transmission of ideas, facts, opinions, emotions …etc.
10. Human welfare: Labour welfare aims at providing service facilities and amenities which enables a
worker to perform their work in a healthy environment.

Features

1. Related with managing people at work

2. Application of mgt. Functions & Principles
3. It is the task of dealing human relationship with in the organization
4. Facilitates employee satisfaction and growth
5. It is action oriented (tries to solve personnel problems to achieve organizational & personal
objectives)
6. It is a continuous function
7. It is concerned with development of human resources (The knowledge, Capability, Skill…etc)
8. It is concerned with employee’s behavior

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 9. It provides competent & well motivated employees

Objectives

1. To increase the welfare of human resource

2. To establish harmonious relations between labor & capital
3. To arrange effective communication with employees
4. To develop the employees
5. To arrange the sufficient no. Of efficient & capable employees
6. To motivate employees
7. To provide best working conditions

Importance

Importance for individual organization

1. Procurement of required talents through recruitment, selection, placement , inducting, training,

compensation, promotion policies
2. Secures cooperation of all employees in the organization for achieving goals through motivation,
participation, grievance handling, social security …etc
3. Proper utilization of the Human Resources
4. Ensures a team of HR for the success of the organization

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1. HRM provides maximum opportunities for employee development
2. Provides healthy relationship among employees
3. Proper allocation of work among employees

Social Importance

1. It enhances the dignity of the labor

2. Suitable job to suitable person
3. Takes Health & safety measures

Functions of HR Management

Managerial Functions

1. Planning: Manpower Planning, Studying turnover rate, forecasting future requirement of employees,
planning for selection & training procedures
2. Organizing: Establishment of inter-relationships within the organization

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 3. Directing: Giving instruction to Employees, Developing Communication network, integrating
workers…etc
4. Motivating: Motivating Employees through Financial & Non-Financial incentives to increase
productivity
5. Controlling: Establishing standards, Job analysis, Performance appraisal…etc

Operative Functions

1. Procurement of Personal: The process of recruitment, selection, placement, and induction of a new
employee
2. Development of Personal: Systematic programs for employee’s training, performance appraisal,
promotion, transfers…etc
3. Compensation of Personal: Salaries, wages, Bonus…etc
4. Integration: Reduce conflicts between employees and coordinate their work towards organizational
objectives
5. Maintenance: Activities related to employee’s health & Safety

Recruitment
Recruitment is a process to discover the sources of manpower to meet the requirements of the staffing
schedule and to employ effective measures for attracting that manpower in adequate number to facilitate

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effective selection of an efficient working force.

Factors affecting recruitment

Internal Factors

1.Recruitment policy
2.Size of the organization
3.Recruitment cost
4.Growth & Expansion
5.Human Resource Plan

External Factors

1. Demand & Supply of skilled labors

2. Unemployment
3. Govt. Policy
4. Labor Market
5. Sons of the soil
6. Organization Image
7. Labor Acts.

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 Recruitment Process

1. Recruitment Planning
2. Development of Strategy
3. Searching
4. Evaluating the effectiveness of recruitment Process

Methods of Recruitment

Direct Methods

1. Scouting : Campus recruitment drives

2. Employee contacts : References from existing employees
3. Manned exhibits : Recruitment officers exhibitions at fairs and collect data
4. Waiting List: Organizations may prepare a waitinglistafter one recruitment, and this list can
be used as and when required.

Indirect Method
Vacancies are notified in News Papers, Journals, Radio, T.V…etc
Third Party Method
Private Consultancy agencies

KTU Sources Of recruitment

Internal Sources

1. Transfer
STUDENTS
2. Promotion
3. Demotion

External Sources

1. Notice at factory gate

2. Casual Callers
3. Unsolicited applications
4. Advertisement
5. Employment Exchanges
6. Labour Contractors
7. Campus recruitment
8. Private Agencies
9. Trade Unions
10. Recommendation
11. Leasing

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 Selection

Selection is the process of choosing most suitable persons out of all applicants. It is the process in which
candidates for employment are divided in to two classes those who are to be offered employment and those
who are not.

Placement

Placement is the determination of the job to which an accepted candidate is to be assigned to that job.
Selection is related with a decision to accept or reject application on the basis of candidate’s performance.
Placement is related with a decision to place a selected individual in one job than another.Selection is to
match people with the position and placement is the task to match position with people.

Job Analysis

Job Analysis is the process of gathering information about jobs and job holder characteristics.Information
collected will be, Job title, Nature of work, Equipments used, Relationship other jobs, Education &
Experience required, Physical & Mental effort, Responsibility, Supervision required…etc.

Job Analysis Process

1. Collection of actual information: The detailed information regarding the job will be collected by

KTU STUDENTS
various methods. This would include, Job Location, Name of Job, Summary of Job, Duties &
Responsibilities, Degree of supervision, Equipment’s& Materials used, Relationship with other
jobs, Over all purpose, Special qualification & Experience required, Physical conditions
2. Preparation of Job Description: Explained in next section
3. Preparation of Job Specification: Explained in next section
4. Report preparation: A detailed report is prepared with this Job Description and Job Specification
5. Approval of the report: The report will be submitted in front of the director board for approval,
and they will approve it if satisfied.

Job Analysis Methods

1. Questionnaire
2. Checklist
3. Interview
4. Observation
5. Participation
6. Technical Conference
7. Diary
8. Records

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 Job Description:

It is the result of Job Analysis. It contains the details collected through Job Analysis in a systematic order

Contents

1. Job Location
2. Name of Job
3. Summary of Job
4. Duties & Responsibilities
5. Degree of supervision
6. Equipments& Materials used
7. Relationship with other jobs
8. Over all purpose
9. Special qualification & Experience required
10. Physical conditions

Job Specification

Job Specification is a profile list of personal qualifications and personal traits deemed necessary for a job.
It is the minimum acceptable qualities necessary to perform a job properly.

KTU Contents

1.
2.
3.
Physical Characteristics
Psychological features
Personal characteristics
STUDENTS
4. Responsibility
5. Qualification

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