4.
Placement and Orientation Placement means that employee occupies
8 Controlling: Meaning and Process
Controlling means the measurement of actual performance against
the standards, and correction of deviations to assure achievement of
objectives according to plans. STEPS IN CONTROLLING PROCESS:
1. Setting performance standards. Standards are the criteria against which
actual performance is measured.
2. Measurement of actual performance. Techniques for measurement of
performance—personal observation, sample checking, performance reports, etc.
3. Comparing actual performance with standards. Actual performance is
compared with the standards to find out deviation.
4. Analysing deviations. Deviations are analysed to identify their causes.
Management by Exception (MBE) helps to identify significant deviations
which cross acceptable range, and brings them to the notice of management.
It is based on the belief that an attempt to control everything results in
controlling nothing. Critical Point Control (CPC) helps to focus on key result
areas (KRAs) which are critical to the success of an organisation. Deviations
in the key result areas need to be attended more urgently as compared to
deviations in insignificant areas since it is not economical/ easy to keep a
check on each and every activity. (e.g., increase in labour cost by 5% is more
troublesome than 15 % increase in postal charges.
5. Taking corrective action. Corrective action is taken only if deviations go
beyond the acceptable range. If the deviations cannot be corrected, standards
must be revised.
IMPORTANCE OF CONTROLLING SR G OM
1. Controlling helps in accomplishing organisational goals. It keeps the
organisation on the right track so that organisational goals are achieved.
2. Controlling helps in making efficient use of resources as each activity is
performed in accordance with pre-determined standards.
3. Controlling ensures order and discipline. It helps to minimise dishonest
behaviour of employees by keeping a close check on their activities.
4. Controlling improves employee motivation as employees know the
standards on the basis of which their performance will be evaluated.
5. Controlling helps in judging accuracy of standards as per changes taking
place in the environment.
RELATIONSHIP BETWEEN PLANING AND CONTROLLING
1. Controlling takes place on the basis of standards developed by planning.
2. Planning without controlling is meaningless controlling ensures that
events conform to the plans.
3. Planning is prescriptive (because planning prescribes an appropriate
course of action) whereas controlling is evaluative because controlling
evaluates whether events conform to the plans.
4. Planning and controlling both are forward looking because while plans
are prepared for the future, controlling seeks to improve the future performance.
5. Planning and controlling are both looking back because, while planning
is guided by past experience, controlling compares the actual performance with
the standards, set in the past.
NATURE/FEATURES OF CONTROLLING
1. Controlling is a goal-oriented function as it ensures that organisation’s
resources are used effectively and efficiently for achievement of organisational goals.
2. Controlling is a pervasive function as it is required in all types of
organisations and at all levels of management—top, middle and lower.
3. Controlling is a continuous function. It is not the last function of
management. It brings back the management cycle back to the planning function.
It helps in formulation of better future plans on the basis of past experience.
4. Controlling is both looking back and forward looking.
6 Staffing
Staffing means obtaining, utilising and maintaining a satisfactory and
satisfied workforce. In an existing enterprise, staffing is a continuous process
because new jobs are created and some employees leave the organisation.
IMPORTANCE OF STAFFING SHO CM
1. It helps in obtaining competent personnel for various jobs.
2. It ensures higher performance by putting right person on the right job.
3. It ensures continuous survival and growth of business through
succession planning for managers.
4. It ensures optimum utilisation of human resources by indicating
surplus/shortage of personnel.
5. It improves job satisfaction and morale of employees through training
and promotion.
STAFFING AS A PART OF HRM PTM HARD2
Human Resource Management (HRM) activities and duties are:
1. Recruitment i.e. searching for qualified people.
2. Analyzing job, collecting information about jobs to prepare job descriptions.
3. Developing compensation and incentives plans.
4. Training and development for efficient performance and career growth.
5. Maintaining labour relations and union management relations.
6. Handling grievances and complaints.
7. Providing for social security and welfare of employees.
8. Defending the company in law suits.
STEPS IN SAFFING PROCESS ERS PTP2C
1. Estimation of manpower requirement
Workload analysis(assessment of the number and types of human resources
necessary for the performance of various jobs) and workforce analysis(number
and type of human resources available)
2. Recruitment means searching for qualified people and stimulating them to
apply for jobs in the organisation.
3. Selection means choosing the best candidate for the job from among
candidates developed at the stage of recruitment.
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the position/post for which he has been selected. Orientation means introducing
the selected employee to other employees and familiarizing him with the rules
and policies of the organization.
5. Training and Development: Training means improving skills and
knowledge of employees to do the current job. It is a job-oriented process.
Development means acquiring skills and competence for handling higher jobs
in future. It is a career-oriented process.
6. Performance Appraisal means evaluating an employee’s performance as
against the predetermined standards.
7. Promotion and Career Planning: Career planning includes all activities
associated with promotion of employees.
8. Compensation refers to all forms of pay or rewards to employees.
TWO INTERNAL SOURCES OF RECRUITMENT:
1. Transfers involve shifting of an employee from one job to another,
one department to another or from on shift to another, without change in
responsibilities,status and pay.
2. Promotions involve shifting an employee to a higher position, with higher
responsibilities, status and pay.
Merits of Internal sources of recruitment:
1. Employees are motivated due to promotion in the organisation.
2. Simplify the process of selection as the candidates are already known.
3. No need of induction training as employees are already familiar.
4. Adjustment of surplus staff in departments where there is shortage of staff.
5. Economical as compared to external sources of recruitment.
Limitations of Internal sources of recruitment:
1. Incomplete source. All vacancies cannot be filled through internal sources.
2. Spirit of competition is hampered because employees expect automatic
promotion by seniority.
3. It reduces scope of fresh talent. 4. There is limited choice of candidates.
EXTERNAL SOURCES OF RECRUITMENT:
1. Casual callers: List of job-seekers is prepared to fill the vacancies as they arise.
2. Labour contractors maintain close contacts with labourers and provides
unskilled workers at short notice.
3. Direct recruitment: A notice is placed on the notice-board about jobs.
Unskilled/semi-skilled job-seekers assemble and selection is done on the spot.
Payment on daily wage basis. Suitable when there is rush of work or some
permanent workers are absent.
4. Advertisement—vacancies are advertised in newspapers or trade journals
to search for qualified and experienced people.
5. Campus recruitment: Recruitment of technical, professional and
managerial jobs from educational institutions.
6. Placement agencies and Management consultants: Placement agencies
compile bio-data of candidates and recommend names to their clients for a fee.
Management consultants help to recruit technical, professional and managerial
personnel. They specialise in middle level and top level executive placements.
7. Recommendations of present employees
8. Employment exchanges serve as link between job-seekers and employers.
They are suitable for unskilled and skilled operative jobs.
9. Web publishing: Internet is a source of recruitment, e.g., www.naukri.com
Merits of External Sources of Recruitment:
1. Management can attract qualified and trained people to apply for vacant jobs.
2. Management has a wider choice while selecting the right candidates.
3. External sources bring fresh talent in the organisation.
4. Competitive spirit: Existing staff will have to compete with outsiders. They
will work harder to show better performance.
Limitations of External Sources of Recruitment:
1. Dissatisfaction among existing employees as chances of promotion reduced.
2. Lengthy process —vacancies are notified before selection.
3. Costly process —money is spent on advertisement and processing of applications.
STEPS INVOLVED IN THE SELECTION PROCESS PSER SMJ C
1. Preliminary Screening: Eliminating unqualified job-seekers on the basis
of application forms.
2. Selection Tests measure intelligence, aptitude, etc.
3. Employment Interview is a formal conversation to evaluate the applicant’s
suitability for the job.
4. Reference and Background Checks to verify information from previous
employers, teachers and professors.
5. Selection Decision from those who pass the tests, interviews and references.
6. Medical Examination which includes a medical fitness test.
7. Job offer is made through letter of appointment, which contains the joining date.
8. Contract of employment regarding terms and conditions of employment,
pay, hours of work, leave rules, etc.
TYPES OF SELECTION/EMPLOYMENT TESTS PI2TA
1. Intelligence test measures level of Intelligence Quotient (IQ) of an
individual — person’s learning ability or the ability of make decisions.
2. Aptitude test measures potential for learning new skills — capacity to develop.
3. Personality Test measures a person’s emotions, reactions, maturity, etc.
4. Trade test measures the actual skills possessed by the individual.
5. Interest tests measure interests or involvement of a person.
IMPORTANCE OF TRAINING
Benefits of Training to the organisation: 1. It avoids wastage of efforts
and money. 2. It enhances employee productivity leading to higher profits.
3. It equips the future managers. 4. It reduces employee turnover.
Benefits of Training to Employees: 1. Promotion and career growth of
the employees due to improved skills and knowledge. 2. It helps employees
to earn more due to improved performance. 3. It reduces accidents as
employees are more efficient to handle machines. 4. It increases satisfaction
and morale of the employees.
METHODS OF TRAINING
On-the-job training methods are used at the workplace. It means ‘learning
while doing’. Examples: 1. Apprenticeship Training: • The trainee is kept
under guidance of a master worker for a specific period of time to acquire a
higher level of skill. • Suitable for plumbers, electricians, iron workers, motor
mechanic etc. 2. Internship Training: • A joint programme of training
between educational institutions and business firms. • Besides regular studies,
the trainees work in office to acquire practical knowledge and skills.
Off-the-job training methods are used away from the work place. It means
‘learning before doing’. Example: Vestibule training: • Training is given with
the help of similar equipment and machine away from actual work place. • It is
used where the employees have to handle sophisticated machinery.
7 DIRECTING
Directing means instructing, guiding, counseling, motivating and
leading people in the organisation to achieve its objectives.
FEATURES/CHARACTERISTICS OF DIRECTING
1. Directing initiates action. Directing is an executive function. While other
functions prepare a setting for action, directing initiates action.
2. Directing takes place at every level of management, i.e., from top
management to supervisory level.
3. Directing flows from top to bottom. Every manager gives direction to his
subordinate and takes instructions from his boss.
4. Directing is a continuous process. It takes place throughout the life of
the organisation.
IMPORTANCE OF DIRECTING PI2CS
1. Directing helps to initiate action in the organization towards attainment
of desired objectives.
2. Directing integrates employees’ efforts in the organization in such a
way individuals work for organisational goals.
3. Directing guides employees to realise their potential by motivation
and leadership.
4. Directing facilitates introduction of changes by reducing resistance to change.
5. Directing brings stability and balance in the organisation by fostering
cooperation and commitment among the people.
ELEMENTS OF DIRECTING
1. Supervision means instructing, monitoring and guiding the efforts of the
subordinates for the achievement of work targets.
2. Motivation means stimulating people to action to accomplish desired
goals.Features of motivation: (i) It is an internal feeling. (ii) It produces
goal directed behaviour. (iii) It can be positive (increase in pay, promotion,
recognition) or negative (punishment, stopping increments, threatening etc.)
(iv) It is a complex process because any type of motivation may not have a
uniform effect on all the members.
3. Leadership is the process of influencing people so that they work willingly
towards achievement of goals. Features of Leadership:
(i) It is a continuous process. (ii) It indicates ability of an individual to influence
others. (iii) It tries to bring change in the behaviour of others.
(iv) It is exercised to achieve goals of the organisation.
(v) It indicates inter-personal relations between leaders and followers.
4. Communication is the process of exchange of information between people
to create common understanding. Elements in communication process:
(i) Sender–source of communication. (ii) Message–information to be
communicated. (iii) Encoding–converting the message into communication
symbols such as words, pictures, gestures etc. (iv) Media/channel–face to
face, phone call, internet etc. (v) Decoding–converting encoded symbols.
(vi) Receiver of the communication. (vii) Feedback–actions of receiver
indicating that he has received and understood message. (viii) Noise–e.g. a
poor telephone connection, an inattentive receiver, faulty decoding, etc.
MASLOW’S NEED HIERARCHY THEORY OF MOTIVATION
1. Basic Physiological Needs: Hunger, shelter and sleep,etc. In an
organisation, basic salary helps to satisfy these needs.
2. Safety Needs provide security and protection from physical and emotional
harm. Examples: job security, stability of income, Pension plans etc.
3. Affiliation/Belonging Needs refer to affection, sense of belongingness,
cordial relations with colleagues, etc.
4. Esteem Needs include factors such as self-respect, autonomy, status,
recognition, etc.
5. Self Actualization Needs refer to the drive to become what one is capable
of becoming e.g. growth and achievement of goals.
Assumptions: (i) People’s behaviour is based on their needs. (ii) People’s
needs are in hierarchical order, starting from basic needs to higher level needs.
(iii) A satisfied need no longer can motivate a person; only next higher level
need can motivate him. (iv) A person moves to the next higher level need only
when the lower need is satisfied.
FINANCIAL INCENTIVES TO MOTIVATE EMPLOYEES P4C RB
1. Productivity linked wage incentive — higher wages for greater
productivity at individual or group level.
2. Bonus—offering an amount of funds over and above the wages/ salary to
the employees.
3. Profit Sharing—giving a share in the profits to employees.This motivates
them to contribute to increase in profits of the organisation.
4. Co-partnership/Stock option — employees are offered company shares
at price lower than market price. It creates a feeling of ownership to them.
5. Retirement Benefits —provident fund, pension and gratuity that provide
financial security to employees after their retirement.
6. Perquisites—car allowance, housing, medical aid and education to the
children etc.
7. Pay and allowances – salary, dearness allowance, etc. Salary is the basic
financial incentive.
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NON-FINANCIAL INCENTIVES TO MOTIVATE EMPLOYEES
CSO J2P - ER
1. Job enrichment—designing jobs with greater variety of work content and
opportunity for personal growth.
2. Employee recognition means acknowledgement with a show of
appreciation.
3. Employee participation means involving employees in decision making,
e.g. making them a part of management committees, work committees, etc.
4. Employee empowerment means giving more autonomy and powers to
subordinates.
5. Job security means providing stability of income and work so that they do
not feel worried.
6. Career advancement opportunity­—Skill development programmes and
promotion policy provide career advancement opportunity to the employees.
7. Status—authority, responsibility, rewards, recognition, etc.
8. Organisational climate indicates characteristics which influence behaviour
of employees such as autonomy, rewards, risk taking, etc.
LEADERSHIP STYLES
1. Autocratic or Authoritarian leadership • Leader gives orders and
insists that they are obeyed. • He does not give any freedom to employees •
He determines policies without consulting them. • He is dogmatic i.e., does not
wish to be contradicted. • He believes that reward or punishment both can be
given depending on result. • It is called Boss-Centred Leadership.
Benefits: (a) To increase productivity (b) Quick decision-making.
2. Democratic or Participative leadership: • Leader makes decisions in
consultation with his subordinates. • The leader respects the other’s opinion. •
This improves morale of employees and helps leaders to make better decisions.
• It is called Group-Centred Leadership.
3. Laissez Faire or Free-rein leadership • Leader does not believe in the
use of power. • Leader gives complete freedom to subordinates. The group
members work on their own tasks resolving issues themselves. • The leader
supports them and supplies information to complete the assigned task. • It is
called Subordinate-Centred Leadership.
FORMAL COMMUNICATION flows through official channels designed in
the organisation chart. It may take place from(i) a superior to subordinate
(downward communication, e.g. ordering subordinates to complete an
assigned work),(ii) a subordinate to superior (upward communication,
e.g. submission of progress report) or(iii) among same level of managers or
employees (horizontal communication, e.g. the production manager and
marketing manager discuss about product design, quality, etc.).
INFORMAL COMMUNICATION takes place without following the formal
lines of communication, e.g. workers chit chating about behaviour of superior.
•  Informal communication is called ‘grapevine’ because it spreads throughout
the organisation disregarding levels of authority.Positive aspects: (i) It
carries information rapidly. (ii) It is used by manager to know reaction of his
subordinates. Negative aspects (i) It spreads rapidly and sometimes gets
distorted. (ii) It may generate rumours.
BARRIERS TO COMMUNICATION
A. Semantic Barriers   BS TUF
1. Badly expressed message—inadequate vocabulary, usage of wrong
words, omission of needed words etc.
2. Symbols/Words with different meanings: For example, What is the
value of this ring? I value our friendship. Wrong perception about the word
‘value’ may lead to communication problems.
3. Faulty translations: If the communication drafted in one language (say,
English) is not properly translated in a language understandable to workers
(say, Hindi), communication becomes ineffective.
4. Technical jargon: Specialists use technical language which is not
understood to the workers.
5. Unclarified assumptions create confusion and the loss of goodwill.
B. Psychological Barriers DPL2
1. Lack of attention: Non-listening of message due to the preoccupied mind.
2.  Distrust: If the sender and receiver of communication do not believe each
other,they can not understand each others’ message.
3. Premature evaluation: Evaluating the meaning of message before listening.
4.  Loss by transmission and poor retention: Successive transmissions of
oral message or Poor retention results in loss of information.
C. Personal Barriers FULL
1. Because of fear of challenge to authority, a superior may withhold communication.
2. Due to lack of confidence on his subordinates, boss may not seek their advice.
3. Unwillingness to communicate to superior if it may adversely affect his interests.
4. Lack of incentives—If there is no reward for a good suggestion,subordinates
may not offer useful suggestions.
D. Organisational Barriers CO2RS
1. Rigid rules and regulations,e.g. communications through scalar chain.
2. Due to Complexity in organisation structure communication gets
delayed and distorted.
3. Lack of organisational facilities like frequent meetings, suggestion box,
complaint box, etc.
4. Organisational policy may not be supportive to free flow of communication.
5. Status conscious manager may not allow his subordinates to express their
feelings freely.
Measures to improve communication effectiveness/Measures to
overcome communication barriers
1. Clarify the ideas before communication.
2. Communicate according to the needs, education levels of subordinates.
3. Be aware of the language, tone and content of the message
4. Ensure proper feedback to improve the communication process
5. Follow up communications and review the instructions given to subordinates.
6. Be a good listener.