PART B (UNIT 3)

1. Describe six key elements in organizational design. (M 18)

The key elements in organizational design are work specialization, chain of command, span of
control, departmentalization, centralization-decentralization, and formalization.
Traditionally, work specialization was viewed as a way to divide work activities into separate
job tasks. Today’s view is that it is an important organizing mechanism but it can lead to
problems.
The chain of command and its companion concepts — authority, responsibility, and unity of
command — were viewed as important ways of maintaining control in organizations. The
contemporary view is that they are less relevant in today’s organizations.
The traditional view of span of control was that managers should directly supervise no more
than five to six individuals. The contemporary view is that the span of control depends on the
skills and abilities of the manager and the employees and on the characteristics of the situation.
The various forms of departmentalization are as follows: Functional groups jobs by functions
performed; product groups jobs by product lines; geographical groups jobs by geographical
region; process groups jobs on product or customer flow; and customer groups jobs on specific
and unique customer groups.
Authority refers to the rights inherent in a managerial position to tell people what to do and to
expect them to do it. The acceptance view of authority says that authority comes from the
willingness of subordinates to accept it.
Line authority entitles a manager to direct the work of an employee.
Staff authority refers to functions that support, assist, advise, and generally reduce some of
managers’ informational burdens.
Responsibility is the obligation or expectation to perform assigned duties.
Unity of command states that a person should report to only one manager.
Centralization - decentralization is a structural decision about who makes decisions — upper-
level managers or lower-level employees.
Formalization concerns the organization’s use of standardization and strict rules to provide
consistency and control.
2. Discuss the tasks associated with identifying and selecting competent employees. (M
18)
Human resource planning
Recruitment and decruitment
Selection
a) Human Resource Planning
Human resource planning is the process by which managers ensure that they have the
right number and kinds of capable people in the right places and at the right times. HR
planning entails two steps:
(1) assessing current human resources, and
(2) meeting future HR needs.
1) CURRENT ASSESSMENT
Managers begin HR planning by inventorying current employees. This inventory usually
includes information on employees such as name, education, training, prior employment,
languages spoken, special capabilities, and specialized skills. Sophisticated databases
make getting and keeping this information quite easy.
An important part of a current assessment is job analysis, an assessment that defines a
job and the behaviors necessary to perform it. Information for a job analysis is gathered
by directly observing individuals on the job, interviewing employees individually or in a
group.
Using this information from the job analysis, managers develop or revise job descriptions
and job specifications. A job description is a written statement describing a job —
typically job content, environment, and conditions of employment. A job specification
states the minimum qualifications that a person must possess to successfully perform a
given job. It identifies the knowledge, skills, and attitudes needed to do the job
effectively. Both the job description and job specification are important documents when
managers begin recruiting and selecting.
2) MEETING FUTURE HR NEEDS
Future HR needs are determined by the organization’s mission, goals, and strategies.
Demand for employees results from demand for the organization’s products or services.
 After assessing both current capabilities and future needs, managers can estimate areas in
which the organization will be understaffed or overstaffed. Then they’re ready to proceed
to the next step in the HRM process.
b) Recruitment and Decruitment
If employee vacancies exist, managers should use the information gathered through job
analysis to guide them in recruitment—that is, locating, identifying, and attracting
capable applicants. On the other hand, if HR planning shows a surplus of employees,
managers may want to reduce the organization’s workforce through decruitment.
RECRUITMENT. Some organizations have interesting approaches to finding
employees. Although online recruiting is popular and allows organizations to identify
applicants cheaply and quickly, applicant quality may not be as good as other sources.
DECRUITMENT. The other approach to controlling labor supply is decruitment, which
is not a pleasant task for any manager.
c) Selection
Once you have a pool of candidates, the next step in the HRM process is selection,
screening job applicants to determine who is best qualified for the job. Managers need to
“select” carefully since hiring errors can have significant implications.
WHAT IS SELECTION? Selection involves predicting which applicants will be
successful if hired. Any selection decision can result in four possible outcomes—two
correct and two errors. A decision is correct when the applicant was predicted to be
successful and proved to be successful on the job, or when the applicant was predicted to
be unsuccessful and was not hired. In the first instance, we have successfully accepted; in
the second, we have successfully rejected.

3. Discuss about various types of selection process towards recruitment. (N 20)

Managers can use a number of selection devices to reduce accept and reject errors. The best-
known devices include an analysis of the applicant's completed application form, written and
performance-simulation tests, interviews, background investigations, and in some cases, a
physical examination.

a) The Application Form

Almost all organizations require job candidates to fill out an application. It may be only a
form on which the person gives his or her name, address, and telephone number. Or it might
be a comprehensive personal history profile, detailing the person's activities, skills, and
accomplishments.

b) Written Tests

Typical types of written tests include tests of intelligence, aptitude, ability, and interest.
Such tests have been used for years, although their popularity tends to run in cycles. Today,
personality, behavioral, and aptitude assessment tests are popular among businesses.
Managers are aware that poor hiring decisions are costly and that properly designed tests
can reduce the likelihood of making poor decisions. In addition, the cost of developing and
validating a set of written tests for a specific job has decreased significantly.

c) Performance-Simulation Tests

Performance-Simulation Tests are made up of actual job behaviors. The best tests are work
sampling and assessment centers.

d) Interviews

An interview is a goal-oriented conversation in which the interviewer and applicant

exchange information. The employment interview is especially significant because the
applicants who reach this stage are considered to be the most promising candidates.

e) Background investigations

Background Investigation is intended to verify that information on the application form is

correct and accurate. This step is used to check the accuracy of application form through
former employers and references.

Verification of education and legal status to work, credit history and criminal record are
also made.

Personal reference checks may provide additional insight into the information furnished by
the applicant and allow verification of its accuracy.

Past behavior is the best predictor of future behavior. It is important to gain as much
information as possible about past behavior to understand what kinds of behavior one can
expect in the future.

Knowledge about attendance problems, insubordination issues, theft, or other behavioral

problems can certainly help one avoid hiring someone who is likely to repeat those
behaviors.

Background investigations primarily seek data from references supplied by the applicant
including his or her previous employers. The intensity of background investigations
depends on the level of responsibility inherent in the position to be filled.

f) Physical examination

After the decision has been made to extend a job offer, the next phase of the selection
process involves the completion of a medical/physical examination. This is an examination
to determine an applicant’s physical fitness for essential job performance.

4. Discuss about purpose and process of training process. (N 20)

Training is the process of enhancing the skills, capabilities and knowledge of employees
for doing a particular job. Training process moulds the thinking of employees and leads to
quality performance of employees. Training is a process of learning a sequence of
programmed behaviour. It improves the employee's performance on the current job and
prepares them for an intended job.

Purpose of Training:
1) To improve Productivity: Training leads to increased operational productivity and increased
company profit.
2) To improve Quality: Better trained workers are less likely to make operational mistakes.
3) To improve Organizational Climate: Training leads to improved production and product
quality which enhances financial incentives. This in turn increases the overall morale of the
organization.
4) To increase Health and Safety: Proper training prevents industrial accidents.
5) Personal Growth: Training gives employees a wider awareness, an enlarged skill base and
that leads to enhanced personal growth.

Process of training process:

1) Identifying Training needs:

A training program is designed to assist in providing solutions for specific operational
problems or to improve performance of a trainee.
• Organizational determination and Analysis: Allocation of resources that relate to
organizational goal.
• Operational Analysis: Determination of a specific employee behaviour required for a
particular task.
• Man Analysis: Knowledge, attitude and skill one must possess for attainment of
organizational objectives
2) Getting ready for the job:
The trainer has to be prepared for the job. And also who needs to be trained - the
newcomer or the existing employee or the supervisory staff.
3) Preparation of the learner:
• Putting the learner at ease
• Stating the importance and ingredients of the job
 • Creating interest
• Placing the learner as close to his normal working position
• Familiarizing him with the equipment, materials and trade terms
4) Presentation of Operation and Knowledge:
The trainer should clearly tell, show, illustrate and question in order to convey the new
knowledge and operations. The trainee should be encouraged to ask questions in order to
indicate that he really knows and understands the job.
5) Performance Try out:
The trainee is asked to go through the job several times. This gradually builds up his skill,
speed and confidence.
6) Follow-up:
This evaluates the effectiveness of the entire training effort.

5. Illustrate the steps involved in the recruitment process. (M 19)

 Process of locating, identifying, and attracting capable or suitable candidates to one or
more jobs within an organization, either permanent or temporary
 Can be for current or future needs
 Every organization must be able to attract a sufficient number of job candidates who have
the abilities and aptitudes needed to help the organization to achieve its objectives
 The recruitment process consists of the following steps
• Identification of vacancy
• Preparation of job description and job specification
• Selection of sources
• Advertising the vacancy
• Managing the response
 a) Identification of vacancy
The recruitment process begins with the human resource department receiving
requisitions for recruitment from any department of the company.
These contain
• Posts to be filled
• Number of persons
• Duties to be performed
• Qualifications required
b) Preparation of job description and job specification
• A job description is a list of the general tasks, or functions, and responsibilities of a
position.
• It may often include to whom the position reports, specifications such as the
qualifications or skills needed by the person in the job, or a salary range.
• A job specification describes the knowledge, skills, education, experience, and abilities
you believe are essential to performing a particular job.
c) Selection of sources
Every organization has the option of choosing the candidates for its recruitment processes
from two kinds of sources
 a. Internal sources
b. External sources.
c. The sources within the organization itself (like transfer of employees from one
department to other, promotions) to fill a position are known as the internal
sources of recruitment.
d. Recruitment candidates from all the other sources (like outsourcing agencies etc.)
are known as the external sources of the recruitment.
d) Advertising the vacancy
After choosing the appropriate sources, the vacancy is communicated to the candidates
by means of a suitable media such as television, radio, newspaper, internet, direct mail
etc.
e) Managing the response
After receiving an adequate number of responses from job seekers, the sieving process of
the resumes begins.
This is a very essential step of the recruitment selection process, because selecting the
correct resumes that match the job profile, is very important.
Naturally, it has to be done rather competently by a person who understands all the
responsibilities associated with the designation in its entirety.
Candidates with the given skill set are then chosen and further called for interview.
The recruitment process is immediately followed by the selection process.