HUMAN RESOURCE MANAGEMENT

Chapter 1 : Introduction to HRM

Chapter 2 : Human Resource Management at Work

Chapter 3 : Job Analysis and Design

Chapter 4 : Human Resource Planning

Chapter 5 : Recruitment & Selection Process

Chapter 6 : Performance & Potential Appraisal

Chapter 7 : Employee Training & Management Development

Chapter 8 : Managing Careers

Chapter 9 : Compensation Management

Chapter 10 : Grievance Handling

Chapter 11: Employee Relations and Collective Bargaining

Chapter 12 : Quality of Work life – Emerging Trends

Chapter 13 : Emerging Trends in Human Resource Management

Chapter 14 : Salient Features of Some of the Industrial Acts

Chapter 1 : Introduction to HRM

Definition and Concept of HRM

--- PM-HRM Difference

--- HRM Model

History of HRM

--- Scientific Management Approach

--- Human Relations Approach

--- Human Resources Approach

Functions of HRM

--- Managerial Functions

 --- Operative Functions

Emerging Role of HRM

--- Value of Human Resources

Role of HR Executives

Challenges to HR Professionals

Strategic Human Resources Management

Importance of HRM

HR as a Profession

Organisational Structure and HRM

Formal and Informal Organisations

Tall and Flat Organisational Structures

Responsibility, Authority and Accountability

Line and Staff Functions

--- Line and Staff Relationship

--- Line –Staff Conflict

--- HRM as a Line Responsibility

--- HRM as a Staff Function

The Role of HRM Department in an Organisation

HRM and Other Organisational Functions

Human resources is one of the most valuable and unique assets of an organisation.
According to Leon C. Megginson, the term human resources refers to “the total
knowledge, skills, creative abilities, talents and aptitudes of an organisation’s
workforce, as well as the values, attitudes and beliefs of the individuals involved.

Human resources management is one of the complex and challenging fields of

modern management. A human resource manager has to build up an effective
workforce, handle the expectations of the employees and ensure that they perform
at their best. He also has to take into account the firm’s responsibilities to the
society that it operates in.
Traditional approaches to personnel management emphasise command and control.
These have now given way to new approaches characterised by greater freedom
and support to the employee. This transformation is almost complete and many
successful companies today empower their employees to manage most aspects of
their work.

Before the 1980s, personnel administration was characterised by standardisation,

and consistency and conformity were the hallmarks of the management policy.
However, today, flexibility has become a significant aspect of a company’s
corporate human resources strategy. Though an organisation’s physical assets are
major factors in determining its success, it has now been accepted that its
employees or human resources, are equally critical assets.

DEFINITION AND CONCEPT OF HUMAN RESOURCE MANAGEMENT

Human Resource Management deals with the “people” dimension in management.

Byars and Rue, say “Human Resource Management encompasses those activities
designed to provide for and coordinate the human resources of an organisation.”
According to Ivancevich and Glueck, “Personnel/Human resource management is
the function performed in organisations that facilitates the most effective use of
people (employees) to achieve organisational and individuals goals.

HRM is a process that consists of four functions – acquiring, developing, motivating

and retaining human resources.

These four functions and their constituent sub-functions have changed over the
years, in response to changes in the social and political environment of business,
and as a result of new developments in management thought.
 Dimensi
Time & Planning
Perspective

Psychological Co
 NATURE OF

Human Resourc
HISTORY OF HUMAN RESOURCE MANAGEMENT

There is a vast difference between modern HRM and the personnel management
that was prevalent decades ago. By the end of the twentieth century, the
managerial philosophy that has defined the personnel function has undergone

Human Resource
radical changes. Over the past eighty years, the scientific management approach
and the human relations approach appeared and then disappeared too. The human
resource approach has gained prominence in the recent times.

E Job Analysis &

N Recruitme
V
 HR
Scientific Management Approach
1850-190
In the early 1900s, most business owners and managers believed that if employees
were to be effectively managed, they had to be constantly supervised and forced to
F
ra

work . All employees were considered to be equal in terms of productivity; when

they failed to achieve the set targets they were disciplined or fired.

Fredrick Taylor, who is widely considered to be the father of scientific management,

focused on the study of motions that were required for each job, the tools used, and
the time needed to accomplish each task.

The scientific management approach employee resulted in work methods and

techniques that emphasized output. Taylor’s time-and-motion studies replaced
“rule-of-the thumb” work methods with the “one best way” to accomplish a task.
This “one best way” to do the job involved a high degree of standardisation and
usually required little mental effort.

Industrial
During the early years of the twentieth century, managers embraced the concept of
the ‘economic man’ which suggested that a worker was basically motivated by
economic gain and that financial incentives alone could maximize the workers
output.

Many personnel departments supported welfare programs that addressed such

needs of the workers like vacations, employee hygiene, job training, lunchrooms,
company housing, employee loans, insurance plans and recreational programs.
These welfare programs reflected the paternalistic attitude of the management.
However, such practices were not very successful in bringing about behavioral
changes and productivity gains to the extent desired by the management. This is
way the employee welfare programs become less popular during the 1920s and
1930s.

Human Relations Approach

The Hawthorne studies, conducted the 1300s and 1940s, force organizations to shift
their attention from the scientific management approach to the human relations
approach.

Elton Mayo and F J Roethlisberger found that the feelings, emotions and sentiments
of employees were greatly influenced by such work conditions as group
relationships and management support. These soft rewards in turn affected
productivity.

The growing strength of unions was also a major factor responsible for the shift to
the concept of human relations.

Though unionisation led to the deterioration of labor-management relations in some

companies, by and large, it led to greater acceptance of the principle of human
relations.

Human relations approach was not very successful in increasing their productivity
and improving job satisfaction. The reasons for this were :

 This approach was based on an oversimplified concept of human behavior in

an organizational setting.

 The human relations approach did not recognise individual differences.

 The approach did not recognize the need for a job structure.

 The approach failed to recognize other factors that could influence

employees satisfaction and productivity, like performance management,
career development, job enrichment and career planning.

 During the 1950s and 1960s, the human relations approach began to be seen
as outdated, and was abandoned by many organisations.
  It is now evident that many factors have to be considered in order to ensure
high levels of employee satisfaction and productivity.

Human Resources Approach

Organisations have now adopted the human resources approach, which treats the
organisational goals and employee needs as being mutual and compatible, and
which can be pursued in unison.

Research in behavioral sciences during the 1970s suggested that treating people as
resources rather than as factors of productions. Would benefit both the organisation
and the employee.

The human resources approach is based on a number of principles, some of which

are :-

 Employees are assets to an organization.

 Policies, programs and practices must cater to the needs of employees and
should help them in their work and also in their personal development.

 It is necessary to create and maintain a conductive work environment.

HR policies and practices should be in alignment with the goal of balancing

individual and organisational needs.

Hu
Functions of Human Resource Management

Every manager must get things done through people. Individual goals and
aspirations have to be in alignment with organisational goals for the successful
handling of a business.

Managing people is one of the biggest challenges for any manager, for the following
reasons :-

 Individuals differ from each other in terms of their values, attitudes, beliefs
and culture. This leads to a very complex situation in an organisational
context.

 The stimulating and motivational factors might not be the same for all the
employees. It is important to understand the individual needs of these
employees and cater to these needs.

 The expectations of employees of today are much greater when compared to

the employees of yesteryears. They know they are valuable assets and
demand to be treated as such.

A manager must understand and accept the fact that individuals, and not
organisations, create excellence.

HRM functions can be broadly classified into two categories :-

1. Managerial functions; and 2. Operative functions

Managerial Functions

Managerial functions of the human resource department are planning organising,

staffing, directing and controlling. All these functions have an impact on the
operative functions.

Planning

Planning involves formulating the future course of action. Planning includes

determining in advance the personnel programs and changes required that would
contribute to the achievement of organisational goals.

Organising

Organising involves establishing an intentional structure of roles for people in an

organisation. Structural considerations such as the chain command, division of
labour, and assignment of responsibility are part of the organising function.

Staffing
This is the process of obtaining and maintaining capable and competent personnel
in various positions at all levels. It broadly encompasses manpower planning,
recruitment, selection, placement, induction and orientation, transfer, career
progression and separation.

P O D C
L R I O
Directing
A G R N
NIt isAthe Eproces
Controlling

T
The measurement and rectification of activities to ensure that events conform to
plans in known as controlling.

Auditing training programs, analysing labour turnover records, directing morale

surveys, and conducting exit interviews are different ways of controlling the HRM
function.

Operative Functions

The operative functions of HRM are related to specific activities of HRM, viz.,
employment, development, compensation and employee relations. Since the human
resource function is unique to each organization, the activities of the HR
department differ from one organization to the other.

The various operative functions of HRM are discussed below:-

Employment

Employment is the first operative function of HRM. This involves procuring and
employing individuals with suitable knowledge, skills experience and aptitude
necessary to perform various jobs.

It includes functions such as job analysis, human resource planning, recruitment,

selection, placement, and induction.

Human resources development

Human Resources Development (HRD) is the of training and development

employees to improve and update their knowledge and skills, so as to help them
perform their jobs better. The process also includes developing the attitudes, beliefs
and values of the employees to match the organisation needs. HRD has to be a
continuous process and should take into consideration both the present and future
organisational requirements. HRD includes performance appraisal, training,
management development, and career planning and development.

Compensation

Compensation includes all the extrinsic rewards that an employee receives during
and after the course of his job, for his contributions to the organization. The
principles of compensation payment are that it has be adequate, equitable and fair
to the employees. Compensation encompasses base salary, incentives, bonus and
benefits and is based on job evaluation.

Job evaluation – It is a systematic determination of the value of each job in

relation to other jobs in the organisation, in the industry and in the market.

Wage and salary administration – The process of formulating and operating a

suitable wage and salary program is known as wage and salary administration.
Incentives – Incentives are the rewards an employee earns in addition to regular
wages or salary based on the performance of the individual, the team or the
organisation.

Fringe benefits - Fringe benefits are those monetary and non-monetary benefits
given to employees during their employment, and sometimes, in the post-
employment period also.

Employee Relations

Employee relations deals with the employees in the organisational context, as a

social group that contributes to the organisation. It includes

 Increasing employee productivity.

 Keeping the employees satisfied and motivated.

 Developing team building, team management and leadership skills in

employees.

 Designing and implementing a fast and suitable grievance management

system.

 Ensuring discipline among the employees by prompt action to correct

deviations.

 Supporting employees by counselling and developing them into complete

individuals and responsible citizens.

 Enhancing the quality of work-life and personal life of the employees.

The relationship between an employee and his manager plays a critical role in
determining the job satisfaction level of the employee. Ideally, an average
employee desires his manager to posses the following characteristics :

 Be genuinely interested in the employee and his work.

 Lend support and guidance whenever required.

 Bring in clarity in terms of the job responsibilities and tasks.

 Identify the strengths and suggest how to build on them.

 Identify the weaknesses of the employee and encourage him to overcome

them.
  Take a personal interest in the employee and his problems.

 Be willing to listen and accept concrete and valuable ideas.

 Reward the employee for his contributions

 Have faith and confidence in the abilities of the employee.

 Be frank and open in his dealings with the employee as well organisation.

Emerging Role of Human Resource Management

In the changing times, it has become evident that it is the human resources of an
organization or a country that can lead it on the path of success. It is the
competencies and attitudes of the human resources that can make or break a
business. The business of attracting and retaining talent and nurturing it has
become imperative for the development of an organization. Innovative and
proactive HR managers have been defining new boundaries of HRM.

The turbulent and dynamic markets and the changing values and expectations of
the workforce have made the earlier concepts of personnel management irrelevant.

A new strategic role has emerged for HRM- that of a key player, to make the
organization survive and succeed in a highly competitive business environment.

Value of Human Resources

The human resources of a country play a vital role in determining its progress and
prosperity. Even a nation with rich physical resources will not develop, if its human
resources are inadequate.

In the modern age of technology and globalization, quality human resources is a

important contributor to the well-being and development of a nation.

Human Resources – A competitive advantage

Business has become knowledge based, service oriented, competitive and more
dynamic in this new age. The quality of human resources has become an essential
factor in determining the success of any organization.

Human Resources Accounting

In the words of Eric Flamholtz a renowned HR consultant and a Professor at

Anderson Graduate School,, human resources accounting is defined as “accounting
people as organizational resources. Human resources accounting is measurement of
the cost and value of people for an organization. Till recently people were not
accounted as resources and no value was attributed to their contribution. However,
in recent times, the criticality of the contributions of human resources have been
acknowledged and recognized.
Role of HR Executives

HRM is a part of every manager’s job. Let us look at the different roles and
responsibilities of HR managers in this context. However, it has to be noted that in a
dynamic working environment, the boundaries of any role cannot be clearly defined.

The specialist role of the HR manager takes number of forms :-

 Service Provider

 Executive

 Facilitator

 Consultant

 Auditor

The Service Provider

Managers need information to make decisions on various employee related issues

like deployment of personnel. An HR specialist can help by providing information on
market statistics of personnel availability, pay rates etc. HR specialists can also
interpret the complex labor laws and legislations that are applicable in day-to-day
work.

This categorization of the work of an HR specialist is not definitive.

The Executive

Though HRM is a part of every manager’s job, yet HR specialist typically carry out
certain HR activities like recruitment, compensation, etc.

The Facilitator

A large number of organizational activities require an HR professional to play the

role of a facilitator. For example, HR acts as a facilitator when training and
development activities are planned and conducted and performance appraisals are
done.

The Consultant

Managers face many problems while supervising employees. These problems any
be due to lack motivation, lack of training, a job misfit or grievances related to pay.
Managers seek the advice of HR specialists to resolve such problems smoothly.
Thus, the HR professional plays the role of an internal management consultant in
this area.

The Auditor
HR specialists are responsible for ensuring that all members of the management
perform their respective roles concerned with the effective use of human resources.

Challenges to HR Professionals

The business environment has become very fluid and turbulent in the recent times.
This is especially true in the Indian context, after the economy has opened up to the
global challenge.

In this scenario, it is a very challenging task to attract, model, develop and retain
(or retrench) valuable human resources. The expectations of the employees have
also increased as more and more of them belong to the category of knowledge
workers.

Worker Productivity

In today’s highly competitive markets factors like world-class quality, flexible

manufacturing, and shorter product development cycles are not competitive
advantages but prerequisites for survival. Companies are reinventing themselves to
stay ahead of the competition. One of the major steps taken in this direction is a
complete revamp of organizational culture and structure.

Business decisions are no longer taken within the confines of the board rooms. They
are taken in the place of work, on the shop-floor and in the market, because that’s
where the action is. This new concept of empowerment gives the employees a
feeling of belonging and commitment towards the organization.

The fact that they are accountable for their decisions makes them more responsible
and keeps them motivated to better their performance.

Many managements are willing to take the risks involved in giving more autonomy
and responsibilities to their employees. The are confident of their employees and
their capabilities.

The old concept that all people-related problems are problems of the HR
department is no longer valid. This line managers can no longer ignore people-
issues.

The HR department is a facilitator providing the support required by the line

managers on any personnel related issue.

Quality Improvement

For the past several years, the term “quality” has been popular corporate buzz
word. Every company has to continuously strive to improve the quality of its
products and services if it has to survive in the highly competitive market. It is
disastrous to be complacent with quality; every competitor is trying to do better
that the others. Customers have become more quality conscious and are always on
the lookout for the best bargain.

A quality orientation requires a significant change in corporate culture.

Quality is all pervasive and affects all the departments. For a company to strive for
excellence in quality, all its employees and the top management should have a
strong belief in, and commitment to, the concept of quality

The important factors in quality improvement are listed in table. However, one
common prerequisite for the success of such program is the strong organization-
wide commitment to the program at all levels and across all functions.

Key Characteristics of Successful Improvement Programs

 Education and training (problem solving, technical improvement

including hands-on training case studies, role playing).

 Teamwork (especially across functional areas).

 Total systems approach.

 Employee involvement (at all levels of the organization).

 Top management commitment and encouragement.

 Establishment of customer-driven standards.

 Long-term perspective.

 Allocation of resources to the program.

The Changing Attitudes of Workforce

One of the first cost-cutting measures adopted by any company to improve its
bottom line, is downswing. Many companies believe that it is important to be lean
and mean to survive in a competitive market. The concept of ‘job security’ has
become outdated as no employee knows when he might be asked to take leave and
search for another job. Employees have also realized the turbulence of market
dynamics and are no longer as loyal to their employers as they used to be. They are
on the lookout for better opportunities and would never lose a good deal due to
commitment to any one organization.

The market across the would opened up and it is now one single global market,
which is very diverse and complex.

This workforce diversity has been a major challenge for the organization.
Most companies are attempting to eliminate discrimination based on religion, caste
creed , gender ethnic background etc. at the work place. They are striving to
develop a more open and cosmopolitan culture to encourage all employees to
succeed.

With more single parents, dual career couples, and a growing population of elderly
people, balancing the demands of family and work has become a major challenge
for the typical Indian worker and his employer. This is forcing companies to become
more family-friendly.

This has resulted in low absenteeism and turnover and improvement in efficiency.

‘Flexible work hours is one of the major demands of the knowledge workers today.
Most of the companies, especially the IT companies do cater to this need of the
employees.

The Impact of the Government

Government policies and programs have a major effect on the way the markets
operate.

Today, everyone talks of globalization, divestment and liberalization, but these

words were probably absent in the dictionary of Indian economic planners before
1991.

In India, the various labor laws and acts, formulated and amended over the years.

These Acts have shaped and tuned the psyche of the Indian organization and the
workforce.

Quality of Work Life

Quality of Work Life (QWL) refers to the extent to which an employee’s work meets
his professional needs. Every employee has some expectations from his work, like a
sense of satisfaction or achievement, security, a high self-esteem etc. The quality of
gets better when more and more of these employee needs are satisfied.

Evidence has shown that improvements in QWL have a positive impact on

organizational performance and help organization to compete in the global
marketplace.

Technology and Training

Technology changes have been rapid and radical in India in the recent times. For
example, the use of wireless and cellular technology was very limited till less than a
decade ago. Today, we see many companies using such technologies for faster and
dependable decision making. The use of computer technology for better data
management and communication is now pervasive in all the organizations.

Training and development of employees has to be a continuous process in any

organization, if it has survive and progress.

Strategic Human Resource Management

Strategic management is the management of the available resources to achieve the

long-term and short-term goals of an organisation, in a dynamic competitive
environment. According to Arthus Thomson, Jr. and A J Stricklard III, “business
strategy is management’s gameplan. Management would not have a road map to
follow or an action plan to give desired results without a business strategy.”

Strategic Human Resource management is the optimum utilization of human

resources to achieve the set goals and objectives in the business environment. This
has to be in alignment with the organizational strategic and in tandem with the
strategies of other functional areas like finance and marketing.

Strategic HR planning involves designing HR goals in alignment with the goals of the
organization, identifying the human resources required to achieve these goals and
then developing these resources internally or acquiring them from outside.

In an industry like the IT industry, which depends more than anything else on its
human resources and their competencies, strategic human resources management
is especially important.

Importance of HRM

HRM concepts and techniques are important to all managers. Sound knowledge of
HRM helps to avoid some mistakes such as

 to hire the wrong person for the job

 to experience high turnover

 to find people not doing their best

 to commit any unfair labour practices

 to have some of the employees think that their salaries are unfair and
inequitable relative to other organisations.

HRM can help managers ensure that they get results – through others. The manager
can lay brilliant plans, draw clear organisation charts, set up modern assembly
lines, use sophisticated accounting controls – but still fail as a manager

 by hiring the wrong people

  by not motivating subordinates

On the other hand, many managers have been successful even with inadequate
plans, organisation, or controls. They were successful because they had the right
approach towards people.

Intensified global competition, deregulation, and technical advancement have

triggered an avalanche of change, one that many firms have not survived. In this
environment, the future belongs to those managers who can best manage change;
but to manage change they must have committed employees who do their jobs as if
they own the company.

HRM as a Profession

The development of management theory, the growing complexities of business and

the importance of human resources have led to the demand of conferring HRM the
status of a distinct profession.

HRM must satisfy certain criteria in order to claim the status of a profession. These
criteria refer to the essential attributes of a profession which are -

 A well – defined and organised body of knowledge

 Entry restricted by qualification

 Recognised national body

 Ethical code of conduct.

 Service Motive.

Judged on these criteria HRM cannot at present be regarded as a full fledged

profession though it satisfies some of the essentials of a profession. (I & II)

However with the passage of time there is a possibility of HRM becoming a distinct
profession.

Organisational Structure and Human Resource Management

An organisation consists of a group in individuals, working in coordination, at

different levels of authority and in different areas of specialization, for the purpose
of achieving the goals and objectives of the organisation.

The structure of an organization provides a well-defined set-up for the employees to

work in. The defined relationships among the elements of an organisation, namely,
tasks, structure, and information and control processes that characterise all
organisations is referred to as organizational structure.
The degree to which the organisation is affected by the change depends on the
organisation structure. That is , the organisational structure influences the
organisation’s reaction to different environment changes.

Burns and stalker conducted a survey of British firms in the 1950s, and based on
the survey, categorised the firms as mechanistic and organic organizations.
Mechanistic and organic organisations are distinct and react and operate differntly
under certain environmental conditions. Mechanistic organizations are
characterised by right structures, directives and rules and reigns supreme in this
type of organization and concentration of authority. Bureaucracy reigns in this type
of organisations. Such organisations are appropriate for static environments.

In a highly competitive markets, it is very rare to see a mechanistic organisation

survive and succeed.

Organisations with organic structures are more suitable for operating effectively in
dynamic environments. An organic structure is charaterised by flexibility, value for
knowledge, low levels of formalisation and authority and a decimalized style of
management. Organic structures, because of these features, react fast and adapt
easily and hence can operate effectively in dynamic and uncertain environments.

Formal and Informal Organisations

Both formal and informal organisations co-exist in any organisational structure.

They basically define the path of communication and mode of information sharing
and are part of a whole organisation.

Formal Organisation

The formal organisation is the defined set-up of roles for the achievement of
organisational goals and objectives. In a formal organization, the reporting channels
and work relations are pre-defined and accountability are fixed for all the roles.

Informal Organisation

Informal organisations are formed by employees, without any formal goals or

objectives. The collection of employees in an information organisation is ad hoc and
random and follows no structural rule procedure. The employees get together in an
informal environment and shape common interests, ideas and information. These
informal groups can however, indirectly contribute to, or hinder the achievement of
organisational objectives.

Though they might not directly contribute to the organisational goals, the rapport
they may come in handy when they have a common task at hard or when one
needs the support of another, in carrying out his duties.
Employees in role in one department may be friendly with employees belonging to
other departments, and form an informal organisation. Such informal associations
among members may be at the same hierarchical level or at different levels. It
enables the numbers to gather useful information (through the grapevine), which
supplements or complements formal communication.

Tall and Flat Organisational Structures

This concept of organisation deals with the span of supervision and the number of
hierarchical levels in an organization. The span of supervision is the optimum
number of subordinates a person can effectively manage. A tall organisational
structure has more hierarchical levels and is usually characterized by narrow of
control. This type of organisation facilitates close supervision and provides for
continuous interaction between the supervisor and his subordinates.

Flat organisations are characterised by wide wide span of control and fewer
hierarchical levels, there may even be 30 or 40 people under the control of the
manager and the number of levels in the organisational hierarchy may be only
three or four. An organisational structure with fewer levels and wider spans of
control is less complex and is more efferent. Management delegates authority and
empowers its employees because of the wide span of supervision. Flat organizations
need well-trained management teams, equipped to take decisions at lower levels.

Various factors such as organizational goals, administrative requirements,

employee capabilities and needs, performance and production demands, size of the
firm, competitive forces, economic conditions and history and culture determine the
appositeness of a tall or a flat structure.

Responsibility, Authority and Accountability

One of the key area of decision making for a manager is delegation – what to
delegate, when to delegate and who to delegate to. The success or failure of this
decision has a significant impact on the manager’s own performance.

Responsibility

Responsibility is the obligation of a manager to carry out the duties assigned to him.

Responsibility of a role/position depends on the functions assigned to the role.

The key principles which need to be considered in delegating responsibility are : -

 The delegation should improve organizational working and should contribute

positively to the organization.

 No two employees should be assigned the same responsibility.

 The boundaries or limits of the responsibility have to be fixed.

  The organization cannot afford any gaps in the delegation chain as his this
would result in an unaccomplished task.

 When a responsibility is delegated, it is has to be accompanied by the

authority to complete the task and discharge the responsibility.

Authority

Authority enables managers to act, exert influence and make decision in carrying
out their responsibilities. It refers to the right to give orders and the power to exact
obedience from others in the process of discharging the responsibility. Authority has
to be commensurate with responsibilities to avoid any kind of imbalance.

Accountability

Accountability is the third basic concept of delegation. An employee is accountable

to his boss for the performance of a task when the reasonability and the authority to
perform have been delegated to him. In other words, the employee’s answerability
on using the authority in discharging a responsibility is termed accountability.

Accountability is from the employee to the manager, in a direction opposite to

responsibility and which are delegated by the manager to the employee. His
describes the relationship between the three dimensions of delegation.

Line and Staff Functions

Formal functions in an organization context have been classified, theoretically and

historically, as line staff functions. The departments or employees of a firms that
perform the core activities and contribute to its business directly are called the line
functions. Examples of a line function are manufacturing and marketing. On the
other hand, departments or a line function are manufacturing and marketing. On
the other hand, departments or employees that perform a support function and
contribute indirectly to the business of a firm are termed the staff functions.
Examples of a staff function are human resource of a firm are termed finance.
FLE