What is POSDCORB?

POSDCORB is an acronym which means Planning, Organizing, Staffing, Directing,

Coordinating, Reporting and Budgeting. POSDCORB can be used as a systematic
framework for efficiently executing business processes in a company or by an
individual.
Planning: This involves determining the objectives, goals, and strategies to achieve
the desired outcomes. It includes defining the scope of the project, setting clear
objectives, and identifying the resources needed.
Example: Imagine a company planning to launch a new product. During the
planning phase, they would define the product's features, target audience,
marketing strategy, production timeline, and resource allocation.
Organizing: Organizing is about structuring the resources, roles, and
responsibilities needed to execute the plan effectively. It involves creating a clear
organizational structure, assigning tasks, and allocating resources appropriately.
Example: In the new product launch scenario, organizing would involve assigning
roles such as marketing manager, product manager, design team, and production
team. Each team member's responsibilities and tasks would be defined.
Staffing: Staffing involves selecting the right people for the roles established
during the organizing phase. It includes recruitment, training, and ensuring that
the team members have the necessary skills to perform their tasks effectively.
Example: For the product launch, the company would hire or allocate individuals
with expertise in marketing, design, production, and other relevant areas. Training
might be provided to ensure everyone is aligned with the project's goals.
Directing: Directing refers to the process of guiding and supervising the team
members to ensure they are working towards the established goals. It involves
communication, motivation, and leadership to keep the team on track.
Example: During the product launch, the project manager would provide
guidance, communicate updates, and motivate team members to meet deadlines
and overcome challenges. Regular meetings might be held to discuss progress and
address any issues.
Coordinating: Coordinating involves synchronizing the efforts of different teams
and individuals to ensure that their work aligns with the overall project objectives.
It requires effective communication and collaboration.
Example: In the product launch, coordination would involve ensuring that the
marketing team's timeline aligns with the production team's timeline. This might
include coordinating the timing of advertising campaigns with the product's
availability.
Reporting: Reporting is about keeping stakeholders informed about the project's
progress. Regular updates and communication help stakeholders understand the
current status and any potential issues that need attention.
Example: The project manager would provide regular reports to the company's
leadership, detailing the progress of the product launch. These reports might
include information about milestones achieved, challenges faced, and
adjustments made to the plan.
Budgeting: Budgeting involves managing the financial resources required for the
project. It includes estimating costs, allocating funds, and monitoring expenditures
to ensure they stay within the defined budget.
Example: For the product launch, the company would create a budget that covers
expenses related to production, marketing, distribution, and other aspects.
Monitoring the budget would help prevent overspending and financial issues.
How does the organization forecast for its workforce requirements?
Forecasting workforce requirements is a critical aspect of organizational planning,
helping ensure that an organization has the right number of employees with the
necessary skills to meet its business goals. Here's a general overview of how
organizations typically forecast their workforce requirements:
Data Collection and Analysis:
Organizations gather data from various sources, such as historical employment
trends, sales and revenue projections, industry trends, and macroeconomic
factors. This data provides insights into how the organization's workforce needs
might change over time.
EX: TechSolutions Inc. gathers data on its past hiring patterns, project timelines,
and revenue growth. They analyze the correlation between the number of
software development projects undertaken and the size of the development team
required.
Internal Assessment:
HR departments and relevant stakeholders assess the current workforce's skills,
capabilities, and performance. This evaluation helps identify gaps in skills and
potential areas for improvement.
Example: The HR department at TechSolutions Inc. assesses the technical skills
and proficiency levels of its current software developers. They identify that while
the team is strong in web development, there's a need for more expertise in
mobile app development.
Business Strategy Alignment:
Workforce planning should be closely aligned with the organization's strategic
goals. Understanding the company's short-term and long-term objectives helps
determine the types of skills and roles required.
TechSolutions Inc. decides to expand its product offerings to include mobile
applications to tap into the growing mobile market. This strategic shift prompts
the company to plan for hiring mobile app developers, UI/UX designers, and
quality assurance engineers.

Demand Forecasting:
Organizations analyze their projected business activities and the resulting demand
for products or services. For example, if a company expects increased product
demand, it will likely need more employees in production, marketing, and
customer support.
TechSolutions Inc. anticipates launching a new suite of mobile apps in the next
fiscal year. They forecast increased demand for mobile development services and
plan to hire additional developers to meet this demand.
Supply Forecasting:
This involves estimating the supply of talent available within the organization. This
includes factors like retirements, resignations, promotions, and internal mobility.
It also considers external hiring needs.
Ex: The company identifies that two senior software developers are expected to
retire in the next 12 months. TechSolutions Inc. prepares to fill these vacancies
either through external hiring or internal promotions.
Skill Gap Analysis:
Comparing the skills and competencies of the existing workforce with the skills
needed for future roles can help identify skill gaps. This analysis informs training,
upskilling, or hiring decisions.
Ex: TechSolutions Inc. realizes that its current developers lack expertise in a new
programming language required for the mobile app projects. They organize
workshops and online courses to upskill their team members.
Scenario Planning:
Organizations often consider various scenarios, such as rapid growth, economic
downturns, or technological disruptions. Each scenario might require a different
workforce response, such as hiring more aggressively during growth or optimizing
operations during a downturn.
The company considers a scenario where a major client delays a project, leading
to reduced revenue. In response, TechSolutions Inc. adjusts its workforce plan to
reallocate developers to internal projects and minimize the impact of the revenue
decrease.
Technology and Automation Consideration:
As technology evolves, some roles might become automated, while new roles may
emerge. Organizations need to assess how technology could impact workforce
needs and skills.
EX: TechSolutions Inc. explores adopting automated testing tools to improve
software quality assurance. The organization plans to train its QA team to work
with these tools effectively.
External Labor Market Analysis:
Understanding the labor market trends, including the availability of specific skills
and competition for talent, helps organizations gauge the feasibility of their
workforce plans.
Ex: The company analyzes the local tech job market and finds a shortage of
experienced mobile app developers. TechSolutions Inc. tailors its job postings and
recruitment strategy to attract these specialized professionals.
Implementation and Monitoring:
Once the forecasting is done, organizations implement the plan by hiring, training,
or restructuring the workforce as needed. Regular monitoring and adjustments
are crucial to respond to changing conditions.
Ex: TechSolutions Inc. begins hiring additional mobile app developers to meet the
projected demand. The HR team monitors the recruitment process, adjustingif the
response from job seekers is lower than expected.
Collaboration and Communication:
Workforce planning involves collaboration between HR, finance, operations, and
other relevant departments. Effective communication ensures that everyone is
aligned with the workforce strategy.
Representatives from various departments, including HR, development, and
marketing, meet regularly to ensure that workforce plans align with the
company's overall growth strategy.
Feedback Loop and Iteration:
Workforce forecasting is an ongoing process. After implementing the plan,
organizations should continuously evaluate the accuracy of their forecasts and
adjust their approach based on the outcomes.
Ex: After the launch of the mobile apps, TechSolutions Inc. evaluates the actual
demand and the effectiveness of their hiring decisions. They adjust their hiring
plans for the subsequent year based on the feedback and lessons learned.
Organizations often use various tools, software, and analytical techniques to aid in
this process. Keep in mind that specific methods can vary based on the industry,
organization size, and complexity of workforce needs.
Appraisal system
An appraisal system is a method of evaluating the performance and potential of
employees, usually based on some predefined criteria and goals123 an appraisal
system can help employers make decisions about promotion, compensation,
training, and termination of employees An appraisal system can also provide
feedback and guidance to employees on how to improve their skills and achieve
their objectives

Challenge of the appraisal system in simpler terms:

Subjectivity and Bias: This means that people's personal feelings and opinions can
affect how they judge someone's work. Sometimes, unfair opinions or differences
in judgment can make the evaluation unreliable.
Example: A manager might rate an employee lower based on their personal
biases, such as disliking the employee's communication style, without considering
the employee's actual performance metrics.

Halo and Horns Effect: Imagine if you only focus on one good thing (halo) or one
bad thing (horns) about someone and let that affect your opinion of everything
else they do. This can make the evaluation inaccurate because it's not looking at
the whole picture.
Example: An employee who excels in teamwork might receive high ratings across
the board, even if their individual work quality is lacking (halo effect). Conversely,
if an employee makes a single mistake, their overall performance might be
deemed poor, ignoring their other accomplishments (horn effect).
Lack of Specificity: If the instructions for the evaluation are not clear and specific,
employees might not understand what they're being judged on. This can lead to
confusion and make it hard for managers to give helpful feedback.
If Mark, an employee, is told he needs to improve his "communication skills," it's
not clear what exactly he needs to work on. Does it mean he needs to write better
emails, speak more in meetings, or something else? Without specific guidance,
Mark won't know how to improve

Frequency and Timing: How often evaluations happen and when they occur can
be tricky. If they happen too rarely, employees might not get feedback when they
need it. If they happen too often, it can use up a lot of time and resources.
If Lisa's boss gives her feedback on her performance only once a year during an
annual review, Lisa might continue making the same mistakes without realizing it
until the next review. Regular feedback throughout the year would help her
correct these mistakes sooner.
Recency Bias: This means giving more importance to recent events and not
looking at the bigger picture of an employee's performance over time. It might
not be fair because it ignores their overall effort.
Imagine Tom has been performing well all year, but he makes a mistake right
before his performance review. If his manager focuses only on that mistake, it's
not fair because they're ignoring Tom's overall good performance over the past
months.
Goal Misalignment: If the goals employees are being judged on don't match what
the company wants or what the employee's job is about, it can lead to confusion
and lack of motivation.
Let's say the company wants its sales team to prioritize customer satisfaction, but
their performance evaluation only considers the number of sales made. This could
lead the sales team to focus solely on sales numbers, even if it means neglecting
customer satisfaction.
Negative Reactions: Imagine if you're only told what you're doing wrong and not
what you're doing right. It can make you feel bad and not want to work well. This
can create a negative atmosphere at work.
Emily is praised for her hard work throughout the year, but during her review, her
manager only talks about one small error she made. She feels demotivated and
unappreciated because her overall effort is not recognized.

Lack of Development Focus: If evaluations only look at the past and don't help
employees improve, it's not very helpful. People want to know how to get better
at their job.
Mike's performance review focuses solely on the projects he completed, without
providing any guidance on how he can improve his teamwork skills. He's left
wondering how he can become a better team player.
Administrative Burden: For big companies, handling all the paperwork and
logistics for evaluations can be a big job. It takes a lot of time and effort.
In a large company, HR has to collect, organize, and review performance data for
hundreds of employees during annual reviews. This process can become
overwhelming and time-consuming for HR staff.
Inadequate Training: If the people doing the evaluations don't know how to do it
properly, it can lead to inconsistent and unhelpful feedback. They need training to
do it well.
Sarah's manager is new and doesn't have much experience conducting
performance evaluations. As a result, the feedback Sarah receives lacks specifics
and doesn't help her understand what she needs to work on.
Legal and Ethical Concerns: If evaluations are unfair or treat some people worse
because of their gender, race, or other factors, it can lead to legal problems and
isn't right.
If the only employees receiving promotions are from a specific gender or ethnicity,
it raises concerns about discrimination and fairness. This could lead to legal issues
for the company.
Impact on Employee Relationships: If the evaluation process isn't done in a
friendly and fair way, it can cause employees and their managers not get along
well. This can hurt the team's cooperation.
During an evaluation, Alex's manager focuses only on his weaknesses and ignores
his strengths. This makes Alex feel undervalued and strained in his relationship
with his manager, affecting their teamwork and communication.

To make evaluations better, companies should be clear about what they're looking
for, teach people how to do evaluations properly, give feedback often, and make
sure evaluations are fair and respectful.
Mention a situation where Laissez- Faire mode of Leadership works best. Justify
reasons for the same?
The laissez-faire mode of leadership, characterized by a hands-off approach and
giving employees a high degree of autonomy, works best in situations where a
team or group of individuals is composed of highly skilled, self-motivated, and
experienced members. Here's a situation and its corresponding justification for
when laissez-faire leadership is effective:
Highly Skilled and Self-Motivated Team Members:
Example: Imagine a team of video game designers working on a new game
concept. Each designer has expertise in different areas such as character design,
level creation, and storytelling. They are passionate about creating an exciting and
immersive game.
Autonomy Fosters Creativity:
Example: In this game design project, the laissez-faire leader trusts the designers
to come up with unique characters and environments without providing strict
guidelines. This freedom allows the designers to experiment with various
concepts and create characters that surprise and engage players.
Quick Decision-Making:
Example: During the project, the designers realize that a particular game level isn't
as engaging as they hoped. Without waiting for approval from the leader, they
collaboratively decide to change the level's design to make it more challenging
and fun for players.
Ownership and Accountability:
Example: A designer takes ownership of designing the game's main character.
Because they're given autonomy, they work diligently to create a character that
resonates with players. They feel a sense of pride and accountability for the
character's success in the game.
Reduced Bottlenecks:
Example: Instead of needing approval at every step, the designers can make minor
decisions on their own. For instance, they can decide on color palettes,
animations, and small design details without waiting for the leader's input,
leading to smoother progress.
Flexibility in Work Approaches:
Example: Some designers prefer sketching by hand, while others like working
digitally. The laissez-faire leader allows each designer to choose their preferred
approach. As a result, they can all contribute to the project in ways that align with
their strengths and styles.

Development of Leadership Skills:

Example: One of the designers takes the initiative to lead brainstorming sessions
where the team discusses potential game mechanics. This individual's leadership
skills emerge naturally as they guide the discussion and encourage everyone's
input.
In this simplified example, the laissez-faire leadership style empowers the skilled
and motivated game designers to contribute their creative ideas and expertise to
the project. The leader's trust and hands-off approach enable the team to
collaborate effectively, make decisions quickly, and take ownership of their
respective roles. However, it's important to remember that this approach might
not work as well if the team lacked experience or if the project required more
structured guidance.
Mention a situation in business where Autocratic mode of Leadership works
best. Justify reasons for the same.
Autocratic leadership is a leadership style where decisions are made by a single
individual with little to no input from subordinates. While this style may not be
suitable for every situation, there are scenarios in business where an autocratic
approach can prove to be effective. In this essay, we will explore a situation in
which autocratic leadership works best, along with reasons for its effectiveness,
and provide an easy-to-understand example.
Situational Context:
One situation where autocratic leadership can work best is during a crisis or
emergency. When a business is facing a critical situation that requires quick and
decisive action, having a clear chain of command and a leader who can make swift
decisions is crucial. In these circumstances, the need for immediate action can
outweigh the benefits of involving multiple opinions in the decision-making
process.

Justification - Reasons for Effectiveness:

Quick Decision-making: In a crisis, there's often no time for lengthy discussions or
debates. An autocratic leader can make decisions promptly, which can help
address the situation and prevent further damage.
Clear Direction: During emergencies, employees might feel confused or anxious.
An autocratic leader can provide clear instructions and guidance, helping to
restore a sense of order and control.
Accountability: With a single decision-maker, it's easier to hold someone
responsible for the outcome. This accountability can drive the leader to ensure
their choices are well-considered.

Maintaining Focus: In a crisis, maintaining focus on the immediate issue is crucial.

Autocratic leadership prevents distractions and ensures that efforts are
concentrated on resolving the problem.

Example - Easy-to-Understand Explanation:

Imagine a small restaurant facing a sudden health inspection that reveals a serious
food safety violation. The restaurant's reputation is at stake, and immediate
corrective actions are required to avoid being shut down. In this situation, the
owner, who is also the head chef and decision-maker, steps in as an autocratic
leader.
The owner, understanding the urgency, quickly makes decisions:
Temporarily closes the restaurant to address the violation.
Assembles the kitchen staff to discard affected ingredients and sanitize
equipment.
Outlines strict protocols for food preparation and handling to prevent future
violations.
The autocratic leadership style works here due to the need for rapid, focused, and
precise actions. There's no time for a group discussion or lengthy debates;
immediate steps are essential to ensure the restaurant's survival.
Conclusion:
Autocratic leadership, while not always suitable, can be highly effective in
situations of crisis or emergency. The ability to make quick decisions, provide clear
direction, maintain accountability, and focus on the issue at hand are reasons why
this leadership style works well in such contexts. The example of the restaurant
facing a health inspection demonstrates how autocratic leadership can lead to
swift resolutions in dire circumstances.

What are the key external sources of recruitment? Mention some disadvantages
of the same.
External sources of recruitment refer to the methods and channels through which
an organization seeks to attract and hire new employees from outside the
company. These sources help organizations expand their talent pool and bring in
fresh perspectives. Here are some key external sources of recruitment:

Job Portals and Websites: Online job portals and company websites are common
platforms for posting job vacancies. Popular job portals include LinkedIn, indeed,
Glassdoor, and Monster. Companies often maintain a dedicated "Careers" section
on their websites to list job openings.

Social Media: Social media platforms like LinkedIn, Twitter, Facebook, and
Instagram can be used to share job openings and reach a wide audience. Many
organizations also use social media for employer branding, showcasing company
culture, and engaging with potential candidates.

Recruitment Agencies and Headhunters: Organizations often partner with

recruitment agencies and headhunters to identify and attract suitable candidates
for specific roles. These agencies have networks and expertise in finding
candidates with the required skills and experience.

Campus Recruitment: Companies often visit educational institutions, such as

universities and colleges, to conduct campus recruitment drives. This is an
effective way to hire fresh graduates and entry-level employees.

Job Fairs and Career Events: Participating in or organizing job fairs, career expos,
and industry-specific events allows companies to meet potential candidates face-
to-face and showcase their job opportunities.

Employee Referrals: Current employees can refer candidates from their network
for job openings within the organization. Employee referral programs are often
incentivized to encourage participation.

Networking: Attending industry conferences, workshops, seminars, and meetups

provides opportunities for companies to connect with professionals who might be
interested in working for them.

Professional Organizations and Associations: Joining or collaborating with

professional organizations related to the industry can help companies tap into a
pool of qualified candidates.

Print Media: Though less common in the digital age, newspapers, magazines, and
trade publications can still be used to advertise job openings.

Consultants and Contractors: Sometimes, companies hire consultants or

contractors for specific projects or tasks. If they perform well, these individuals
might be offered full-time positions.
Online Communities and Forums: Niche online communities, forums, and
discussion boards related to specific industries or skills can be sources of potential
candidates.

Temporary and Part-Time Agencies: Hiring temporary or part-time employees

through specialized agencies can be beneficial for short-term staffing needs.

Job Advertisements: Posting job advertisements on public spaces like community

bulletin boards, local websites, and public transportation locations can help
attract candidates from the local area.

Job Search Engines: Some websites aggregate job listings from various sources,
making it easier for job seekers to find relevant openings.

Outplacement Agencies: In cases of downsizing or restructuring, companies might

work with outplacement agencies to help affected employees find new job
opportunities.

Freelance Platforms: For specific tasks or projects, companies can hire freelancers
through platforms like Upwork, Freelancer, and Fiverr.

external recruitment:
Selecting the appropriate external recruitment sources depends on factors like the
type of role, the required skills, the level of the position, and the organization's
industry and location. A diverse mix of these sources can help organizations find
the best-fit candidates for their needs.
Advantages:

Fresh Perspectives and Ideas: External hires, being new to the organization, bring
fresh viewpoints, experiences, and ideas that can challenge existing norms and
lead to innovative solutions. They can identify opportunities for improvement that
might have been overlooked by the internal workforce.

Diverse Skillsets: Organizations often have diverse needs when it comes to skills.
External recruitment allows them to target candidates with specialized skills that
are not currently present within the organization, enabling efficient fulfillment of
specific job requirements.

Wider Talent Pool: External recruitment methods, such as job portals and social
media, enable organizations to reach a broader audience beyond their current
employee base. This wider talent pool increases the likelihood of finding the most
suitable candidate for a position.

Reduced Internal Bias: When hiring internally, there can be biases based on
relationships, familiarity, or favoritism. External recruitment minimizes these
biases by evaluating candidates primarily based on their qualifications,
experience, and fit for the role.

Industry Insights: Candidates who have worked in various industries or companies

bring valuable insights about different practices, strategies, and processes. These
insights can help organizations adopt best practices and stay competitive.

Employee Motivation: The arrival of new external talent can motivate existing
employees to enhance their performance. It can create a healthy sense of
competition and a drive to showcase their skills and commitment.
Enhanced Employer Branding: A well-executed external recruitment strategy
positively impacts an organization's image in the job market. When potential
candidates see the organization as actively seeking the best talent, it boosts the
employer's reputation and attractiveness.

Quick Skill Acquisition: When an organization urgently needs specific skills that are
not readily available internally, external recruitment is a more time-efficient
solution compared to training and developing existing employees to acquire those
skills.

Disadvantages:

Higher Costs: External recruitment processes involve various costs, such as

advertising fees, interview expenses, background checks, and potentially higher
salaries to attract external candidates. These costs can add up and strain the
organization's budget.

Cultural Misfit: New hires from external sources might take time to understand
and adapt to the organization's culture. A poor cultural fit can lead to conflicts,
communication breakdowns, and decreased overall efficiency.

Lower Employee Morale: If existing employees perceive that external hires are
preferred over internal ones, their morale can suffer. They might feel that their
contributions are undervalued, which can impact teamwork and overall job
satisfaction.

Time-Consuming: External hiring processes can be lengthy due to the stages

involved, such as advertising the position, reviewing applications, conducting
interviews, and negotiating offers. This prolonged timeline might lead to delays in
filling critical roles.

Risks of Underperformance: There's a risk that external hires might not meet
performance expectations initially. They may require more time to get acclimated
to the organization's processes, systems, and expectations, potentially leading to
underperformance.

Limited Loyalty: External hires might not have the same level of loyalty to the
organization as employees who have grown within the company. This could lead
to shorter tenures and less commitment to the organization's long-term success.

Internal Resistance: Existing employees might feel threatened by the influx of new
talent. This resistance can manifest as reluctance to collaborate, share
information, or accept changes brought about by the external hires.

Loss of Internal Development: Overreliance on external recruitment could result in

the underutilization of existing employees' potential. By not promoting from
within, the organization might miss opportunities for internal growth and
development.
Internal sources of recruitment
Internal sources of recruitment refer to the methods or channels through which
an organization fills job vacancies by considering current employees for promotion
or transfer to different positions within the company. These methods help retain
and motivate employees by offering them opportunities for career growth within
the organization. Key internal sources of recruitment include:

Promotions: Current employees are promoted to higher-level positions based on

their performance, skills, and qualifications. Promotions provide employees with
the chance to take on more responsibilities and higher roles within the
organization.

Transfers: Employees are moved laterally within the organization to different

departments, teams, or locations. This can provide them with exposure to
different functions and can be beneficial for their professional development.

Internal Job Postings: Organizations often maintain an internal job posting system
or an intranet platform where current employees can view and apply for open
positions. This gives employees the opportunity to express their interest in
different roles across the organization.

Employee Referrals: Existing employees may refer their friends, family members,
or acquaintances for job openings within the company. Employee referrals are
often valued because they tend to bring in candidates who are a good cultural fit
and have been recommended by someone within the organization.

Succession Planning: Organizations identify and groom high-potential employees

for future leadership roles. Succession planning ensures that there is a pipeline of
qualified internal candidates ready to take on key positions when they become
vacant.

Internal Talent Pools: Companies maintain a database of employee skills,

competencies, and career aspirations. When suitable positions arise, managers
can tap into this pool of potential candidates.

In-House Training and Development Programs: Providing training and

development opportunities to employees enhances their skills and prepares them
for higher-level roles. These programs can be used to identify candidates for
internal promotions.

Performance Appraisals: Regular performance evaluations help identify top-

performing employees who could be considered for promotions or other
advancement opportunities.

Cross-Functional Projects: Assigning employees to cross-functional projects allows

them to work with different teams and showcase their skills, making them visible
to other parts of the organization.

Temporary or Contract-to-Hire Positions: Organizations might fill temporary

positions with internal candidates before hiring externally, providing employees
with the chance to demonstrate their abilities and potentially secure permanent
roles.

Internal recruitment offers several benefits, such as improving employee morale,

reducing training costs, and leveraging existing knowledge of the organization's
culture and processes. However, it's important for organizations to ensure that the
internal recruitment process is transparent, fair, and open to all qualified
employees to maintain a healthy and motivated workforce.

Advantages of Internal Recruitment:

Cost-Efficient: Internal recruitment typically incurs lower costs compared to

external hiring, as there are reduced expenses associated with advertising,
recruitment agencies, and onboarding.
Faster Process: Internal recruitment can expedite the hiring process, as existing
employees are already familiar with the company's culture, processes, and
policies.

Motivational Impact: Offering opportunities for advancement and career growth

can boost employee morale and motivation. It encourages employees to strive for
excellence and invest in their personal development.

Cultural Fit: Internal candidates are already aligned with the organization's
culture, values, and goals, which can lead to smoother integration into new roles.

Reduced Risk: Since internal candidates are already known entities, there's a
reduced risk of hiring someone who doesn't fit well with the company's culture or
doesn't meet performance expectations.

Fosters Loyalty: Providing growth opportunities within the organization can

increase employee loyalty and reduce turnover rates.

Increased Productivity: Existing employees already possess knowledge of

company processes and procedures, resulting in a shorter learning curve when
transitioning to new roles.

Disadvantages of Internal Recruitment:

Limited Pool of Candidates: Internal recruitment may limit the organization's
exposure to new ideas and perspectives that external candidates can bring.

Missed Diversity: Relying solely on internal candidates might hinder diversity and
inclusion efforts, as the organization may miss out on candidates from different
backgrounds and experiences.

Office Politics: Internal recruitment could lead to favoritism or perceptions of bias

in the selection process, which can negatively affect employee morale and trust.

Skill Gaps: Not all required skills might be available within the current workforce,
leading to the necessity of external hires for specialized roles.

Stagnation of Ideas: Promoting from within might prevent the infusion of fresh
ideas and innovation that external candidates could bring.

Lack of Objectivity: Managers might have pre-existing relationships with internal

candidates, potentially affecting their objectivity in the selection process.

Resentment: When one employee is promoted, others who were also interested
in the position might feel resentment, which can lead to tension in the workplace.

Career Plateau: If internal employees feel that there are limited opportunities for
growth or promotion, they might become disengaged and seek opportunities
outside the organization.
Overlooking External Talent: Relying solely on internal recruitment might cause
the organization to overlook talented individuals from outside who could bring
fresh perspectives and skills.

Overall, the decision to prioritize internal recruitment over external recruitment

depends on the specific needs of the organization, its culture, and the availability
of suitable internal candidates. Many organizations choose a balanced approach
that combines both internal and external recruitment strategies to create a
diverse and capable workforce.
Describe in detail the 7 Ms of Management with the help of a diagram
1. Man - Man in management is referred as a human resource.Even in the
automated world no organization can flourish without human resource.For
instance a aviation Industry may have automated aircraft still it needs flight crew
to cater & assist the needs of their boarded air travelers.In terms of management
recruitment ,selection ,training promotion ,grievances handling.payment of
compensation gratuity ,termination of services are the few issues that have to be
dealt effectively to retain the talent within an organization.

2. Material- Material is a basic ingredient in management be it a service industry

or a product industry.Most of the industries locate them self nearby to the
availability of material.For instance a mineral water factories In India are mostly
located in the Himalaya where a fresh source of water ,which is also a raw
material to these companies are available.Similarly services industries such as
banking Insurance Hair Dressing Saloons etc. are located near its existing and
prospetive clients. Perishable products such as dairy products locate themselves
where well connected transportation and distribution facilities are available.

3. Machine -Machine are the basic tools to produce goods or to generate

services.Selection of an appropriate machine not only enhances efficiency but also
saves times and increases revenue.Talioring the requirement of the
organization,Selections of a right technical machine and equipment,availability of
spare parts, evaluation of after sales servies,subsitutes and techonology and the
organization budget are the crucial criteria while purchasing a
machine.Maintenence and overhauling issues along with its life span also cannot
be overlooked.In service Industry Techonology matters a lot these days we are
having Computers & periphepals as a major machine to serve the service clients.

4. Money- Money issue in management involves right from where an enterprise is

established and the owner brings money in the business. Various long term and
short term sources of finances are determined ,Loans and advances are taken
management is done to meet day to day business requirements and the funds
involved in meeting those requirements are known as working capital.Investments
in assets patents are done and proposals are screened according to the pay back
period. In payback period only those investments are preferred which returns the
invested money in less time span.Similarly there are other criteria of evaluating
investments such is Internal Rate of Return where only those investments are
selected which has higher returns. Similarly proposals are also screened on the
basis of Net present Value which asserts that a value of a ruppee will worth a
penny tomorrow.

5. Method-Every thing has a right way to do and this right way is known as a
Method in management .In short it means an art of doing.A set of procedures and
instructions is known as a method.For instnce to obtain a credit card a cutomer
follows a following series of steps filling a credit card application ,attaching
required documents and submitting to a bank reprensative.while processing the
credit card application The form filled by the cutomed is checked.Documents are
verified and customer verification is done . credit card is dispatced by generating
pin to a courier company for the final delivery to the customer and records are
maintained.All these standard procedures are known as method in management.

6. Management- The functions of management involves planning controlling

leading organising decisin making of business areas in
Marketing,Production,Sales,Research & Developement,Human Resource,Finance,
Operations Etc. .It includes Business tatics and stratergy application. Few
tradational management most heard are Strike when then iron is hot , No free
lunch, etc.There are various levels of management Top level takes all major and
crucial decisions and frames organization mission ,vision and objectives .Middle
level management gives direction to lower level management of how to
implement those business objectives. Policies are framed and work method are
determined to get set and go.
7. Moral Values -Every enterprise exist in a society and must conduct business by
fair means. It must include the welfare of its stakeholders (also known as
Corporate Governance) like shareholders, buyers’ suppliers, employees. The
paramount consideration of welfare must not be overlooked in the blind race of
profit making. Government policies, rules and regulations also governs this aspect
of management. Consumer Courts are opened. Legal penalties against violation of
corporate law are framed and it is anobligatory requirement to abide by these
laws and regulations if an organization wants to exist in an society.