Delegation of Authority

1. Staffing
2. Motivation & its Theory
3. Leadership
4. communication
5. Directing controlling & its Techniques
6. Co-ordinating
7. Principle of Economics:
Microeconomics: concept of consumption,
production , Exchange & distribution
Delegation of Authority

• Definition: The Delegation of Authority is an organizational

process wherein, the manager divides his work among the
subordinates and give them the responsibility to
accomplish the respective tasks. In an organization, the
manager has several responsibilities and work to do. ...
• Staffing is the managerial function of recruitment, selection, training,
developing, promotion and compensation of personnel. Staffing may be
defined as the process of hiring and developing the required personnel to
fill in the various positions in the organization. It involves estimating the
number and type of personnel required. It involves estimating the
number and type of personnel required, recruiting and developing them,
maintaining and improving their competence and performance. Staffing is
the process of identifying, assessing, placing, developing and evaluating
individuals at work.
• Definition: According to Koontz and O’Donnell:
“The managerial function of staffing involves manuring the organizational
structure through proper and effective selection, appraisal and
development of personnel to fill the roles designed into the structure.”
Staffing is defined as, “Filling and keeping filled, positions in the
organizational structure. This is done by identifying work-force
requirements , inventorying the people available, recruiting, selecting,
placing, promotion, appraising, planning the careers, compensating,
training, developing existing staff or new recruits, so that they can
accomplish their tasks effectively and efficiently.”
IMPORTANCE
• 1. Staffing helps in discovering and obtaining competent and
personnel for various jobs.
• 2. It helps to improve the quantity and quality of the output by
putting the right person on the right job.
• 3. It helps to improve job satisfaction of employees.
• 4 It facilitates higher productive performance by appointing right
man for right job.
• 5. It reduces the cost of personnel by avoiding wastage of human
resources.
• 6. It facilitates growth and diversification of business.
• 7. It provides continuous survival and growth of the business
through development of employees.
Process of Staffing Function of
Management (10 Steps)

1. Manpower Planning,
2. Recruitment,
3. Selection,
4. Placement,
5. Training,
6.Development,
7. Promotion,
8. Transfer,
9.Appraisal,
10. Determination of Remuneration!
1. Manpower Planning:Manpower planning may be regarded
as the quantitative and qualitative measurement of labour force
required in an enterprise. It involves in creating and evaluating
the manpower inventory and to develop required talents among
the employees selected for promotion advancement.
2. Recruitment:Recruitment is a positive process of searching
for prospective employees and stimulating them to apply for the
jobs in the organisation. In other words, recruitment stands for
discovering the source from where potential employees will be
selected. The scientific recruitment leads to greater productivity,
better wages, higher morale, reduction in labour turnover and
better reputation of the concern.
RECRUITMENT AND SELECTION

• Recruiting involves attracting candidate to fill the positions in the

organization structure. Before recruiting, the requirement of
positions must be cleared identified. It makes easier to recruit the
candidates from the outside. Enterprises with a favorable public
image find it easier to attract qualified candidates.
• Definitions –
• 1. Mc Fariand, “The term recruitment applies to the process of
attracting potential employees of the company.”
• 2. Flippo, “Recruitment is the process of searching prospective
employees and stimulating them to apply for the jobs in the
organization.” Thus recruitment may be considered as a positive
action as it involves attracting the people towards organization
Need of recruitment

The need of recruitment may arise due to following situations:

1. Vacancies due to transfer, promotion, retirement, permanent
disability or death of worker.
2. Creation of vacancies due to expansion, diversification or growth.
Methods and sources of recruitment:
According to ‘Dunn and Stephens’ recruitment methods can be
classified into three categories :
1) Direct Methods
2) Indirect Methods
3) Third Party Methods
1) Direct Methods include travelling visitors to educational and
professional institutions, employee’s contacts with public and manned
exhibits and waiting lists
2)Indirect Methods include advertising in newspaper radio, in trade
and professional journals, technical journals, brochures etc.
3) Third Party Methods includes the use of commercial and private
employment agencies, state agencies, placement offices of the
colleges and universities, and professional association recruiting firms.
Sources of Recruitment The various sources of recruitment may be
classified as
A. Internal sources or from within the organization
B. External sources or recruitment from outside.
A. Internal sources – Many organisations in India give preference to
people within the company because the best employees can be found
from within the organisation itself. Under this policy, if there is any
vacancy the persons already working in the organisation are appointed
to fill it. This method is followed mostly in Government organisations.
B. External sources or recruitment from outside – Internal sources may not
always fulfill the needs of an organisation. Naturally, most of the concerns
have to look for the external sources for recruitment the required number
of employees with the requisite qualifications. The external sources of
recruitment include
1. Direct Recruitment – Many organizations having one separate
department called personnel department to select right employees. For
that organisaton may receive direct applications from the candidate.
The technical and clerical staff is appointed in this way.
2. Recruitment through the jobbers or Intermediaries – In India mostly
unskilled or illiterate workers are recruited through this method. Under
this system the intermediary keeps a vital link between workers and
employers. They are always willing to supply the required number of
workers.
3. Recruitment at the factory gate – Mostly unskilled workers are
appointed through this method. Under this system, large number of
unemployed workers assemble at the factory gate for employment. The
factory manager, or labour superintendent or some other official may
select the necessary workers
 4. Recruitment through advertisement – This is most common method for
recruiting skilled workers, clerical staff, managerial personnel, technical
personnel. The vacancies are advertised in the popular daily newspapers and
applications are invited from the persons having required qualifications.
5. Recruitment through the recommendation of the existing employees – The
existing employees recommend the suitable names for the employment.
6. Recruitment from colleges or universities or educational institutions – This
method is used in some enterprises or Government department, when the
recruitment of persons required for administration and technical personnel.
7. Recruitment through employment exchange – The workers who want help
in finding jobs make their registration in the nearest employment office where
details are recorded. Employment exchanges are the special offices for
bringing together those workers who are in need of employment
 3. Selection:Selection is process of eliminating (among all the candidates
considered for possible employment) those who appear unpromising. The
purpose of selection process is to determine whether a candidate is suitable for
employment in the organisation or not.The chief aim of the process of selection
is choosing right type of candidates to fill in various positions in the
organisation. Selection process requires exactness. A well planned selection
procedure is of utmost importance for every enterprise.

Selection: Selection is the process of choosing the most suitable person for the
current position or for future position from within the organization or from outside
the organization. The selection of managers is one of the most critical steps in the
entire process of managing.
PROCESS OF SELECTION Selection means the taking up the different workers by
various acts from the application forms invited through different sources of internal
and externals. According to Dale Yoder, “Selection is the process in which candidates
by employment are divided into two classes those who are to be offered
employment and those who are not.” Selection Procedure : Selection of workers is
regarded as a policy matter. Every enterprise has its own policy for recruitment. The
following procedure is adopted
• 8. Other methods –
i) Badli Control system or Decasualisation of labour – It means efforts
taken for regularizing the system or recruitment by means of
controlling substitute of badli labour. Under this system, on the first
day of each month, special badli cards are given to a selected number
of persons who are advised to present themselves every morning at
the factory when temporary vacancies are filled up from amount them.
ii) Contract labour – Under this method contractor supplies labours to
the industrial enterprises according to their requirement.
1)Receiving and screening the application : After receiving the applications
have to be screened. In this process the applications of candidates without
the requisite qualification are rejected.
2) Sending the Blank application form : After preparing the list of candidates
suitable for job, blank application forms will be sent to the candidates. In this
application form information should be given about the name and address of
the candidate, educational qualification, experience, salary expected etc.
3) Preliminary Interview : The interviewer has to decide whether the
applicant is fit for job or not. By this interview the appearance, attitudes,
behaviour of the candidate can be known easily.
4) Administering Tests : Different types of test may be undertaken. Tests are
conducted for the knowledge of personal behaviour, efficiency of work and
interest. Generally, following types of tests are conducted. i) Achievement
Test ii) Aptitude test iii) Trade Test iv) Interest Test v) Intelligence Test etc.
• 5) Checking References on Investigation of Previous History : Applicants are
generally asked to give names of at least two persons to whom the firm
may make a reference.
• 6) Interviewing : Interview is the most important step in the selection
procedure. In interview, the intimation given in the application form is
checked. Interview
helps in finding out the physical appearance and mental alertness of the
candidate and whether he possesses the required qualities. Interviews may
be of various kinds these are
1) Direct Interview
2) Indirect Interview
3) Patterned Interview
4) Stress interview
5) Systematic in – depth interview
6) Board of panel interview
7) Group interview
7) Final Selection : On the basic of results of previous interview the
candidate is informed whether he/she is selected for the said post or not.
4. Placement:Placement means putting the person on the job for
which he is selected. It includes the introduction of the employee with
the job.
5. Training:After selection an employee, the most important and
established part of the personnel programme is to impart training to the
new comer. With the rapid technological changes, the need for training
employees is being increasing recognised so as to keep the employees in
touch with the new developments.Every concern must have a systematic
training programme otherwise employees will try to learn the job by trial
and error which can prove to be a very costly method.
6. Development:A sound staffing policy calls for the introduction of a
system of planned promotion in every organisation. If employees are not
at all having suitable opportunities for their development and
promotion, they get frustrated.ach and every employee should be given
to understand the various promotion routes/possibilities and the
attendant facilities that are made available in the form of training
programmes, orientation schemes, etc., to achieve the same.
TRAINING AND DEVELOPMENT

• Meaning: Training is an instrument of developing the employees by

increasing their skills and improving their behavior. Technical,
managerial skills are needed by the employees for performing the
jobs assigned to the. Training is required to be given to new
employees as well as existing employees. The methods to be used for
training and the duration for which training should be given is
decided by the management according to the objectives of the
training, the number of persons to be trained and the amount of
training needed by the employees. Training leads to overall personal
development. The major outcome of training is learning. Trainees
learn new habits, new skills, useful information that helps to improve
their performance.
Definition: According to Flippo: “Training is an act of increasing the
knowledge and skill of an employee for doing a particular job.”
• Importance of training and development:
• 1. Reduction in learning time
• 2. Better performance
• 3. Reduced supervision
• 4. Increases Morale of the employees
• 5. Facilitates organizational stability and flexibility
• 6. Develops employees skills, talents, competency
• 7. Decreased accidents
• 8. Better use of raw material and other resources
• 9. Increase in production
• Methods of training: Training methods
ON the job
Instruction method
Apprenticeship method
Training by supervisors
Vestibule training
Training by experienced person
OFF the job
Lecture method
Conferences
Seminars
Role play
Case studies
Development

Development is a continuous process. It is fox for refreshing

information knowledge and skills of the executives. In the case of
development, off the job methods are used. It provides wider them
capable to face organizational problems and challenges is a bold
manner. Management development is a planned systematic process of
learning. It is designed to induce behavioural change in individuals by
cultivating the mental abilities and inherent qualities through the
acquisition and Understanding of use of new knowledge.
7. Promotion:Promotion implies upgrading of an employee to a higher
post involving increase in rank, prestige or status and responsibilities.
Generally increase in pay accompanies promotion but it is not essential
ingredient.
8. Transfer:Transfer implies movement of an employee from one job to
another without any increase in pay, status or responsibilities. Usually
transfer takes place between jobs paying approximately the same salaries.
• 9. Appraisal:Appraisal of employees reveals as to how efficiently the
subordinate is performing his job and also to know his aptitudes and
other qualities necessary for performing the job assigned to him. The
qualities of employees that are apprised through performance appraisal
are ability to do work, spirit of cooperation, managerial ability, self
confidence, initiative, intelligence etc. The main objective of performance
appraisal is to improve the efficiency of a concern by attempting to
mobilise the best possible efforts from individuals employed in it.
PERFORMANCE APPRAISAL

• les of management. It refers to all the formal procedures used in

working organizations to evaluate the personalities, contributions
and potentials of group members. It is used as a guide by formulating
a suitable training and development programme to improve the
quality of performance in his present work. Performance appraisal is
the judgment of an employee’s performance in a job. It is also called
as merit rating. All managers’ are constantly forming judgment of
their subordinates and are continuously making appraisals. It is the
systematic evaluations of the individuals with respect to his
performance on the job and his potential for development. The
immediate superior is in-charge of such appraisal. The managerial
appraisal should measure both performances in achieving goals and
plans as well as all managerial function such as planning, organizing,
leading and controlling.
Objectives of performance appraisal:

1.To help a manager to decide the increase in pay on ground of merits.

2. To determine the future use of an employee
3. To indicate training needs.
4. To motivate the employees to do better in his or her present job.
5. To contribute the growth and development of an employee.
6. To identify employees for deputation to other organizations
7. To help in creating a desirable culture and tradition in the
organization.
8. To nominate employees for training programmes.
10. Determination of Remuneration:Fixation of
remuneration is the most difficult and complex function of the
personnel department because there are no definite or exact
means to determine the correct wages. Job Evaluation is the only
systematic technique to determine the worth of the job but much
remains to be done in this regard. As wages constitute major part
of the cost of production, every concern must consider this aspect
very seriously.
3 Groups of
Motivational Theories

• Internal
• Suggest that variables within the individual give rise to
motivation and behavior
• Example: Maslow’s hierarchy of needs theory
• Process
• Emphasize the nature of the interaction between the
individual and the environment
• Example: Expectancy theory
• External
• Focus on environmental elements to explain behavior
• Example: Two-factor theory
Early Philosophers of Motivational Theories

• Max Weber—work contributes to salvation; Protestant work

ethic
• Sigmund Freud—delve into the unconscious mind to better
understand a person’s motives and needs
• Adam Smith—“enlightened” self-interest; that which is in
the best interest and benefit to the individual and to other
people
• Frederick Taylor—founder of scientific management;
emphasized cooperation between management and labor to
enlarge company profits
Maslow’s Hierarchy of Needs

SA
Esteem

Love (Social)

Safety & Security

Physiological
 Motivational Theories X & Y

SA Theory Y - a set of
assumptions of how to
Esteem manage individuals
motivated by higher
Love (Social) order needs
Theory X - a set of
Safety & Security assumptions of how to
manage individuals
Physiological motivated by lower
order needs
McGregor’s Assumptions
About People Based on Theory X

• Naturally indolent
• Lack ambition, dislike responsibility, and prefer to
be led
• Inherently self-centered and indifferent to
organizational needs
• Naturally resistant to change
• Gullible, not bright, ready dupes

Adapted from Table 5.1 which is from “The Human Side of Enterprise” by Douglas M. McGregor, reprinted from Management Review, November 1957. Copyright 1957
American Management Association International. Reprinted by permission of American Management Association International, New York, NY. All rights reserved.
http://www.amanet.org.
McGregor’s Assumptions
About People Based on Theory Y

• Experiences in organizations result in passive and resistant

behaviors; they are not inherent
• Motivation, development potential, capacity for assuming
responsibility, readiness to direct behavior toward organizational
goals are present in people
• Management’s task—arrange conditions and operational methods
so people can achieve their own goals by directing efforts to
organizational goals

Adapted from Table 5.1 which is from “The Human Side of Enterprise” by Douglas M. McGregor, reprinted from Management Review, November 1957.
Copyright 1957 American Management Association International. Reprinted by permission of American Management Association International, New York,
NY. All rights reserved. http://www.amanet.org.
Alderfer’s ERG Theory

SA Growth
Esteem

Love (Social)
Relatedness
Safety & Security
Existence
Physiological
 McClelland’s Need Theory:
Need for Achievement

Need for Achievement - a manifest

(easily perceived) need that concerns
individuals’ issues of excellence,
competition, challenging goals,
persistence, and overcoming difficulties
 McClelland’s Need Theory:
Need for Power

Need for Power - a manifest (easily

perceived) need that concerns an
individual’s need to make an impact on
others, influence others, change people
or events, and make a difference in life
 McClelland’s Need Theory:
Need for Affiliation

Need for Affiliation - a manifest (easily

perceived) need that concerns an
individual’s need to establish and
maintain warm, close, intimate
relationships with other people
 3 Motivational Need Theories
Maslow Alderfer McClelland
Self-actualization Growth Need for
Achievement
Higher Esteem
Order self
interpersonal
Need for
Power
Needs
Belongingness
(social & love) Relatedness Need for
Affiliation

Safety & Security

Lower interpersonal
Order physical
Needs Existence
Physiological
Herzberg’s Two-Factor Theory

Hygiene Factor - work condition related to dissatisfaction caused by

discomfort or pain
• maintenance factor
• contributes to employee’s feeling not dissatisfied
• contributes to absence of complaints
Motivation Factor - work condition related to the satisfaction of the
need for psychological growth
• job enrichment
• leads to superior performance & effort
 Motivation–Hygiene
Theory of Motivation

• Company policy & Motivation factors

administration increase job satisfaction
• Supervision
• Interpersonal relations
• Working conditions • Achievement
• Salary • Achievement recognition
• Status • Work itself
• Security • Responsibility
• Advancement
• Growth
Hygiene factors avoid
job dissatisfaction • Salary?
SOURCE: Adapted from Frederick Herzberg, The Managerial Choice: To be Efficient or to Be Human. (Salt Lake City: Olympus, 1982). Reprinted by permission.
 Motivation-Hygiene Combinations

High M Low M
High H high motivation low motivation
few complaints few complaints
Low H high motivation low motivation
many complaints many complaints
(Motivation = M, Hygiene = H)
 Individual—Organizational Exchange
Relationship

Organization Individual
Contributions Demands

 Organizational goals  Physiological needs

 Departmental objectives  Security needs
 Job tasks  Physical needs
 Developmental potential
 Company status
 Employee knowledge
 Benefits
 Employee skills and
 Income
abilities
SOURCE: Reproduced with permission from McGraw-Hill, Inc.
Adams’s Theory of Inequity

Inequity - the situation in which a person perceives he or she

is receiving less than he or she is giving, or is giving less than
he or she is receiving
 Motivational Theory
of Social Exchange
Person Comparison
other
Equity Outcomes = Outcomes
Inputs Inputs
Negative Outcomes < Outcomes
Inequity Inputs Inputs
Positive Outcomes > Outcomes
Inequity Inputs Inputs
Strategies for
Resolution of Inequity

• Alter the person’s outcomes

• Alter the person’s inputs
• Alter the comparison other’s outputs
• Alter the comparison other’s inputs
• Change who is used as a comparison other
• Rationalize the inequity
• Leave the organizational situation
New Perspectives
on Equity Theory

Equity Sensitive
I prefer an equity ratio
equal to that of my
comparison other
New Perspectives
on Equity Theory

Benevolent I am comfortable with

an equity ratio less
than that of my
comparison other
New Perspectives
on Equity Theory

Entitled

I am comfortable with
an equity ratio greater
than that of my
comparison other
Expectancy Theory of
Motivation: Key Constructs

Valence - value or importance placed on a particular reward

Expectancy - belief that effort leads to performance

Instrumentality - belief that performance is related to rewards

 Expectancy Model of Motivation

Effort
Effort Performance Reward

Perceived effort– Perceived Perceived

performance performance– value of reward
probability reward probability

“If I work hard, “What rewards “What rewards

will I get the job will I get when do I value?”
done?” the job is well
done?”
3 Causes of
Motivational Problems
• Belief that effort will not result in performance
• Belief that performance will not result in rewards
• The value a person places on, or the preference a person has for,
certain rewards
Moral Maturity

Moral Maturity - the measure of a person’s cognitive moral

development

Morally mature people Morally immature people

behave and act based on behave and act based on
universal ethical principles. egocentric motivations.
Leadership
Communication
Directing and Controlling
• Directing deals with the steps a manager takes to get subordinates
and others to carry
out plans. Directing is an incessant process following a top-
down approach through organizational hierarchy.
• Definitions
• Directing concerns the manner in which a manager influences the
actions of his subordinates. It is the final action of a manager in
getting others to act after all preparations have been completed.
• J. L. Massie
• Directing is telling people what to do and seeing that they do it to
the best of their ability. Itincludes making assignments,
corresponding procedures, seeing that mistakes are
corrected, providing on-the-job instruction and of course issuing
orders.
• Earnest Dale
Elements of directing

• upervision: Supervision is the process of overseeing the work of

subordinates. It isthe responsibility of every superior to supervise his
subordinates to ensure that they perform their tasks as desired.2.

• Communication: Communication is the transfer of information from one

person toanother person. It is a way of reaching others by transmitting ideas,
facts, thoughts,feelings, and values.3.

• Leadership: Leadership is the ability to awaken in others the desire to follow

acommon objective.4.

• Motivation: Motivation is the willingness to expand energy to achieve a goal

or areward. It means to inspire subordinates to work willingly and more
efficiently towards the organizational goals. For example, financial
(performance bonus) and non-financial (appreciation mails/letters)
Techniques of Directing

• Autocratic Technique: Superior issues orders to his subordinates

without priordiscussion with his subordinates. In this technique, the
subordinates have no scope to take any initiative or put in
their creativity. It can be referred to as ‘do what I say’ style.

• Consultative Technique: This technique implies that the instructions

are issue dafter consulting the subordinates. It does not conclude
that the superior is inefficient or incapable. The advantage of it is
that increased employee morale is the outcome of this technique.
• Free-rein Technique: This is used when the subordinates are well
qualified and efficient. Its advantage is that it emphasizes on
encouraging the employees to work independently once the task is
assigned.
Controlling

Controlling is the process of ensuring that actual activities conform to

the planned activities.It is the controlling process that deals with
setting up the standards and taking correctiveaction whenever the
performance is deviated from the stated standards.
Definitions
• ‘Control is checking current performance against pre-determined
standards contained in
the plans, with a view to ensure adequate progress and satisfactory
performance.’-E. L. F.Breach
• ‘Controlling is the measurement and correction of performance in
order to make sure thatenterprise objectives and the plans devised
to attain them are accomplished.’— Koontz and O’Donne
Need of Controlling

• Optimum Utilization of Resources: Control helps the organization to

make optimum utilization of all the available resources which results
in increased profit.
• Minimizes Deviation: Control means to keep a track on the deviations
from the set standards and taking corrective actions, resulting in
minimal deviations. For example, the Project Manager of IT Company
kept a strict control on the deviations in cost and schedule of the
project, so that they could show a 30% net profit from the project
after its successful delivery.
• Increased Efficiency: Proper utilization of resources and minimal
deviations due to the corrective measures bring about efficiency in the
organization’s processes. Its advantage is that the individual performance
increases.
• Coping with the Changes: For an organization to survive in the market, it is
essential to cope up with these changes and there are continuous changes
in the social, legal, political, and technological environment in which the
business operates. The advantage is that it helps the managers to respond
to these changes as and when required.

• Value Addition: An organization that attempts to survive through

competition should be able to add value to products or services so that
customers prefer them over those offered by the organization’s rivals. For
example, students and staff of a particular institution are encouraged to
attend courses and workshops which can add value to their existing
skill sets and area of expertise. Recently, android, Hadoop, and Python
Django are the technologies with brighter prospects in the coming years.
• Facilitates Delegation and Teamwork: Control process assists the manager
to monitor his subordinates without impeding their creativity.
Techniques of Co-ordination
Principle of Economics:
Microeconomics: concept of consumption,
production , Exchange & distribution