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COMMITTEES

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• A committee is a group of people who have been formally assigned some task or some problem for their
decision and/or implementation.
• Committees are often set up where new kinds of work and/or unfamiliar problems seem to involve
decisions, responsibilities and powers beyond the capabilities of any one man or department.
• A major proposal in Likert’s New Patterns of Management is to replace the one-to-one relationship
characteristic of conventional hierarchical arrangements with a system of “interlocking groups“. Under this
proposal, each unit head and his subordinates would work as a decision-making committee.

Each unit head would serve as a “chief” vis-a-


Vis the level below him and as a subordinate
vis-a-vis the level above, he would be
performing a linking-pin function in a system
of interlocking groups comprising the whole
hierarchy of the company

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• Committees can be broadly classified into advisory committees and executive committees .
• staff authority. authority to advise, but not to direct, other managers. For example, a personnel department
has staff authority to advise functional managers in an organization.
• When ever committees are assigned with staff authority they are known as advisory committees.
Advisory committees have only a recommendatory role and cannot enforce implementation of their advice
or recommendation. Some of the usual advisory committees formed in business enterprises are: works
committees, sales committees, finance committees, etc
• LINE AUTHORITY: The most fundamental authority within an organization, reflects existing superior-
subordinate relationships. It consists of the right to make decisions and to give order concerning the
production, sales or finance related behaviour of subordinates.
• Whenever committees are vested with line authority, they are called executive committees or plural
executives. Unlike advisory committees, executive committees not only take decisions but also enforce
decisions and thus perform a double role of taking a decision and ordering its execution, The Board of
Directors of a company is an example of an executive committee.
• The above distinction should not, however, lead one to think that these two types of committees are always
composed of different collections of individuals, These committees may have the same individuals as
members.(separated by time , Place or title )

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• Committees may also be classified as standing committees and ad hoc task forces
• Standing or permanent committees are formed to deal with recurrent organizational problems. Typical
standing committees may be the
• finance committee in a company, or
• the loan approval committee in a bank, or
• the admission committee in a college
• Members of these committees are mostly chosen because of their title or position, instead of individual
qualifications or skills.
• Ad hoc task forces, as their very name suggests, have a short duration. They are dissolved after the task is
over, or the problem is solved. The members are chosen for their skills and experience.

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• Advantages of committee
• 1‘Where committees consist of all departmental heads as members, people get an opportunity to better
understand each other‘s problems and to move (cooperatively) towards organizational goals.
• pooling definition: 1. the act of sharing or combining two or more things: 2. a method of accounting used
when two companies merge (= join together)
• 2. Committees provide a forum for the pooling of knowledge and experience of many persons of different
skills, ages and backgrounds. As George Bernard Shaw has said, “If you have an apple and I have an apple
and we exchange these apples then you and I will still each have one apple, But if you have an idea and I
have an idea and we exchange these ideas, then each one of us will have two ideas,” This helps in
improving the quality of decisions.
• 3. Committees provide an opportunity to many persons to participate in the decision-making process. As
the members of a committee participate in discussions and decisions, they also take interest in
implementing their decisions.
• 4.Committees are excellent means of transmitting information and ideas, both upward and downward.
• 5.By exposing members to different viewpoints, committees contribute indirectly to their training and
development.
• 6.Committees are impersonal (objective) in action and hence their decisions are generally unbiased and are
based on facts There is no fear of a single individual taking a biased decision.

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• Weaknesses A wholly positive estimate of committees has been criticized by several writers. Lyndal
Urwick, for example, does not admit that the committees increase the democratic process in
administration. He says that there is no connection whatsoever between committees and democracy or
between individual leadership and autocracy(democracy)
• Some others remark that a committee is a group of people who individually can do nothing but who can
meet together and decide that nothing can be done.
• Similarly, it is said that a committee is a group of incompetents appointed by the unwilling to deal with the
unnecessary. Although such remarks may be dismissed as mere exaggerations, they do reflect a widespread
disillusionment(letdown) and frustration with group decision-making.
• Some of the weaknesses of committees areas follows:
• 1.It is said that committees keep minutes and waste hours, One of the best administrative procedures to
delay action is to say, “Let us set up a committee to study this matter,” Almost without exception it takes
longer to get action from a committee than from an individual manager.
• 2.In case a wrong decision is taken by a committee, no member can be individually held responsible. This
encourages irresponsibility among the members.
• 3.A huge amount is spent in convening meetings and giving allowances to the members. Hence,
committees are an expensive form of administration.

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• 4. Members of coordinating committees frequently regard themselves as appointed to protect the interest of
their departments rather than to find the more appropriate solution to the problem in question,.
• 5. Committees have a tendency to perpetuate (prolong) themselves and it is generally difficult to dissolve
them even when they have served the purpose for which they were constituted.
• 6.Decisions are generally arrived at on the basis of some compromise among the members, Hence they are
not the best decisions. There is always some type of trading of support between two or more individuals or
groups by which one agrees to support the other’s position in one decision problem in return for the other’s
support in another decision problem. This is known as log-rolling.
• 7. As committees consist of a large number of persons, it is difficult to maintain secrecy regarding the
decisions taken at the committee meetings.
• 8. As the chairman of a committee often changes, influence accumulates in the hands of the permanent
secretary or some other person or persons who may then dominate the committee. This may bring about
resistance from others.

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BASIS FOR
AUTHORITY RESPONSIBILITY
COMPARISON
Meaning Authority refers to the power or Responsibility denotes duty or
right, attached to a particular job obligation to undertake or
or designation, to give orders, accomplish a task successfully,
enforce rules, make decisions and assigned by the senior or
exact compliance. established by one's own
commitment or circumstances.
What is it? Legal right to issue orders. Corollary of authority.

Results from Formal positon in an Superior-subordinate


organization relationship
Task of manager Delegation of authority Assumption of responsibility

Requires Ability to give orders. Ability to follow orders.


Flow Downward Upward
Objective To make decisions and To execute duties, assigned by
implement it. superior.
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Duration Continues for long period. Ends, as soon as the task is
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• Subordinate means, a person under the authority or control of another within an organization.
• Authority means, the power or right to give orders, make decisions, and enforce obedience.
• Authority means, a person or organization having political or administrative power and control.
• Responsibility means, the state or fact of being accountable or to blame for something.
• Responsibility means, the state or fact of having a duty to deal with something
• Delegation is the assignment of any responsibility or authority to another person (normally from a manager to
a subordinate) to carry out specific activities. It is one of the core concepts of management leadership.
However, the person who delegated the work remains accountable for the outcome of the delegated work.
• Power Means, 1. Ability to cause or prevent an action, make things happen; the discretion to act or not act.
Opposite of disability, it differs from a right in that it has no accompanying duties.
Power Means, 2. Law: (1) An instrument transferring or vesting legal authorization. (2) The ability conferred
on a person by law to determine and alter (by his or her own will) the rights, duties, liabilities, and other legal
relations, of himself or others.
• In an organization, it is not possible for one to solely perform all the tasks and take all the decisions. Due to
this, delegation and decentralisation of authority came into existence.

• Delegation means the passing of authority by one person who is at a superior position to someone else who is
subordinate to him. It is the downward assignment of authority, whereby the manager allocates work among
subordinates.
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CENTRALIZATION
• Centralization is said to be a process where the concentration of decision making is in a few hands.
All the important decision and actions at the lower level, all subjects and actions at the lower level are
subject to the approval of top management.
According to Allen, “Centralization” is the systematic and consistent reservation of authority at central
points in the organization.
• The implication of centralization can be :-
• Reservation of decision making power at top level.
• Reservation of operating authority with the middle level managers.
• Reservation of operation at lower level at the directions of the top level.
• Under centralization, the important and key decisions are taken by the top management and the other levels
are into implementations as per the directions of top level.
• For example, in a business concern, the father & son being the owners decide about the important matters
and all the rest of functions like product, finance, marketing, personnel, are carried out by the department
heads and they have to act as per instruction and orders of the two people. Therefore in this case, decision
making power remain in the hands of father & son.

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DECENTRALIZATION
• Decentralization is a systematic delegation of authority at all levels of management and in all of the
organization. In a decentralization concern, authority in retained by the top management for taking major
decisions and framing policies concerning the whole concern. Rest of the authority may be delegated to the
middle level and lower level of management.
• The degree of centralization and decentralization will depend upon the amount of authority delegated to the
lowest level.
• According to Allen, “Decentralization refers to the systematic effort to delegate to the lowest level of
authority except that which can be controlled and exercised at central points.
• Decentralization is not the same as delegation. In fact, decentralization is all extension of delegation.
Decentralization pattern is wider is scope and the authorities are diffused to the lowest most level of
management. Delegation of authority is a complete process and takes place from one person to another.
While decentralization is complete only when fullest possible delegation has taken place.

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EXAMPLE

• For example, the general manager of a company is responsible for receiving the
leave application for the whole of the concern. The general manager delegates
this work to the personnel manager who is now responsible for receiving the
leave applicants. In this situation delegation of authority has taken place. On the
other hand, on the request of the personnel manager, if the general manager
delegates this power to all the departmental heads at all level, in this situation
decentralization has taken place. There is a saying that “Everything that
increasing the role of subordinates is decentralization and that decreases the role
is centralization”. Decentralization is wider in scope and the subordinate’s
responsibility increase in this case. On the other hand, in delegation the
managers remain answerable even for the acts of subordinates to their superiors.
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• Implications of Decentralization
• There is less burden on the Chief Executive as in the case of centralization.
• In decentralization, the subordinates get a chance to decide and act independently which develops skills
and capabilities. This way the organization is able to process reserve of talents in it.
• In decentralization, diversification and horizontal can be easily implanted.
• In decentralization, concern diversification of activities can place effectively since there is more scope for
creating new departments. Therefore, diversification growth is of a degree.
• In decentralization structure, operations can be coordinated at divisional level which is not possible in the
centralization set up.
• In the case of decentralization structure, there is greater motivation and morale of the employees since they
get more independence to act and decide.
• In a decentralization structure, co-ordination to some extent is difficult to maintain as there are lot many
department divisions and authority is delegated to maximum possible extent, i.e., to the bottom most level
delegation reaches. Centralization and decentralization are the categories by which the pattern of authority
relationships became clear.
• The degree of centralization and de-centralization can be affected by many factors like nature of operation,
volume of profits, number of departments, size of a concern, etc. The larger the size of a concern, a
decentralization set up is suitable in it.

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BASIS FOR Comparison Chart
CENTRALIZATION DECENTRALIZATION
COMPARISON
Meaning The retention of powers and authority with The dissemination of authority,
respect to planning and decisions, with the top responsibility and accountability to
management, is known as Centralization. the various management levels, is
known as Decentralization.
Involves Systematic and consistent reservation of Systematic dispersal of authority.
authority.
Communication Flow Vertical Open and Free
Decision Making Slow Comparatively faster
Advantage Proper coordination and Leadership Sharing of burden and responsibility

Power of decision Lies with the top management. Multiple persons have the power of
making decision making.
Reasons Inadequate control over the organization Considerable control over the
organization
Best suited for Small sized organization Large sized organization
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• DECENTRALISATION OF AUTHORITY Meaning The delegation of authority by an individual
manager is closely related to an organization's decentralization of authority.
• Every organisation has to decide as to how much decision making authority should be centralized in hands
of the chief executive and how much should be distributed among the managers at lower levels.
• In a centralized setup, the decision-making authority is concentrated in a few hands at the top and in a
decentralized setup, it is delegated to the levels where the work is to be performed
• Ernest Dalell mentions four criteria to measure the extent of decentralization in an organisation He states
that whenever decentralization is greater.
• 1. The greater is the number of decisions made at lower levels;
• 2. The more important are the decisions made at lower levels;
• 3. The more is the number of areas in which decisions can be made at lower levels; and
• 4. The fewer are the people to be consulted and less is the checking required on the decisions made at the
lower levels.

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• Span of Control
• The number of employees who can be effectively and efficiently supervised by a manager.
• Width of span is affected by:
• Skills and abilities of the manager
• Employee characteristics
• Characteristics of the work being done
• Similarity of tasks
• Complexity of tasks
• Physical proximity of subordinates
• Standardization of tasks

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STAFFING

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• It is important to have a good organisation structure, but it is even more important to fill the jobs with the right people.
• A company may be successful with an organisation structure that is very far from the best, but it will never be able to get
off the ground if the people who run it and those who do the actual work are incapable.
• Filling and keeping the positions provided for by the organisation structure filled with the right people is the staffing
phase of the management function.
• It includes several sub-functions:
• 1. Recruitment, or getting applicants for the jobs as they open up.
• 2. Selection of the best qualified from those who seek the jobs.
• 3. Training those who need further instructions to perform their work effectively or to qualify for promotions.
• 4. Performance appraisal, since it serves as the basis for job change or promotion.
• 5. Administration of compensation plans, since it is an important factor in both getting and holding qualified people.
• All managers have a responsibility for staffing. The board of directors performs the staffing function by selecting the
chief executive.
• The chief executive discharges this function when he selects a production, finance or a marketing manager and the
manager does likewise when he selects his sub-ordinates. Even the foreman or first level supervisors have a staffing
responsibility when they select the rank and file workers.

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IMPORTANCE AND NEED FOR PROPER STAFFING

• It is estimated that the labour costs constitute from 25 per cent of the production costs to 40 per cent of the
selling costs in manufacturing enterprise.
• Therefore, a business cannot be successful for any length of time unless it is capable of bringing in and
developing the right kind of people.
• There are a number of advantages of proper and efficient staffing. These are as under:
• 1. It helps in discovering talented and competent workers and developing them to move up the corporate
ladder.
• 2. It ensures greater production by putting the right man in the right job.
• 3. It helps to avoid a sudden disruption of an enterprise's production run by indicating shortages of
personnel, if any, in advance.
• 4. It helps to prevent under- utilization of personnel through over manning and the resultant high labour
cost and low profit margins.
• 5. It provides information to management for the internal succession of managerial personnel in the event
of an unanticipated turnover.

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Staffing
The managerial function of staffing
involves manning the organization
structure through proper and effective
selection, appraisal and development of
the personnel to fill the roles assigned to
the employers/workforce.

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"Staffing means filling and
keeping filled, positions in
the organisation structure."

Harold
Koontz 22
Nature of Staffing
Staffing is an important managerial function.
Staffing is a pervasive activity.
Staffing is a continuous activity.
The basis of staffing function is efficient management of
personnel.
Staffing helps in placing right men at the right job.
Staffing is performed by all managers .
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RECRUITMENT
• Once the requirement of manpower is known, the process of recruitment starts.
• It can be defined as the process of identifying the sources for prospective candidates and to stimulate them to apply
for the jobs
• In other words, recruitment is the generating of applications or applicants for specific positions. According to
Dalton E.Mc Farland, it is the process of attracting potential employees to the company.
• The management should have a proper plan of recruitment regarding the quantity and quality of personnel required
and the time when it is needed.
• The process of recruitment and the cost involved in it depends on the size of the undertaking and the type of persons
to be recruited.
• In the case of small concerns the process of recruitment is simple and inexpensive, while in the case of large
concerns the process is complicated and expensive particularly if technical and managerial personnel are to be
recruited.
• Sources of Recruitment :The sources of recruitment can be broadly classified into two categories: internal sources
and external sources.
• Internal sources refer to the present working force of a company. Vacancies other than at the lowest level may be
filled by selecting individuals from amongst the existing employees of the company.
• Among the more commonly used external sources are the following:
• 1. Re-employing former employees Former employees who have been laid-off or have left for personal reasons24 may
be re-employed. These people may require less initial training than that needed by total strangers to the enterprise.
• 2. Friends and relatives of present employees Some industries with a record of good personnel relations encourage
their employees to recommend their friends and relatives for appointment in the concern where they are employed.
• 3. Applicants at the gate unemployed persons who call at the gates of the factories are interviewed by the factory
representative and those who are found suitable for the existing vacancies are selected. This is an important source
in countries where there is a lot of unemployment.
• 4. College and technical institutions many big companies remain in touch with the colleges and technical
institutions from where young and talented persons may be recruited.
• 5. Employment exchanges An employment exchange is an office set up by the government for bringing together
those men who are in search of employment and those employers who are looking for men. Employment exchanges
register unemployed people and maintain the records of their names, qualifications, etc.
• 6. Advertising the vacancy One more source that is tapped by the companies is advertising the vacancy in leading
papers. This source may be used in case the company requires the services of persons possessing certain special
skills or if there is an acute shortage of labour force.
• 7. Labour unions In companies with strong labour unions, persons are sometimes recommended for appointment by
their labour unions. This may also be done in pursuance to an agreement between the union and the management.

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• SELECTION
• Importance of the Selection Process Whereas under recruitment the manager identifies the sources for prospective
candidates and stimulates them to apply for various openings in his organisation, under selection he compares their
qualifications with the requirements of a job and eliminates all those who do not stand up to this comparison.
• There are several advantages of a proper selection procedure.
• As the employees are placed in the jobs for which they are best suited, they derive maximum job satisfaction and
reap maximum wages. 1.Labour turnover is reduced and the 2.overall efficiency of the organisation is increased.
And finally, 3.a good relationship developed between the employer and the employees.
• Steps in the Selection Procedure Though there is no standard procedure adopted by all organizations,
the following is an example of a popular sequence of steps:
• 1. Application blank
• 2. Initial interview of the candidate
• 3. Employment tests
• 4. Checking references
• 5. Physical or medical examination
• 6. Final interview

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• 1.Application blank Filling of the "application blank" by the candidate is the first step in the process of
selection. In this form, the applicant gives relevant personal data such as his qualification, specialization,
experience, firms in which he has worked, etc. The application blanks are carefully scrutinized by the company
with reference to the specifications prescribed for the jobs to decide the applicants who are to be called for
interview.
• 2. Initial interview Those who are selected for interview on the basis of particulars furnished in the
application blank are called for initial interview by the company. This interview, according to Mandell.° is the
most important means of evaluating the deportment or appearance of the candidate. It is also used for
establishing a friendly relationship between the candidate and the company and for obtaining additional
information or clarification on the information already on the application blank.
• The interview must be properly planned and the interviewers, consisting of specialists in different fields, must
make the applicants feel at ease, discount personal prejudices and note their opinion about the applicants
interviewed.
• 3. Employment tests For further assessment of candidate's nature and abilities, some tests are used in the
selection procedure. Psychologists and other experts have developed certain tests by which a candidate's
particular traits or abilities, his likes and dislikes, his intelligence, manual dexterity (handiness), his capacity to
learn and to benefit from training, his adaptability, etc. can be estimated.

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• Employment tests conti…..
• There are several types of tests that are used in selection procedure. The more commonly used are:
• (I) Aptitude test This test measures the applicant's capacity to learn the skill required for a job. It helps in finding
out whether a candidate is suitable for a clerical or a mechanical job. His test helps in assessing before training as
to how well the candidate will perform on a job after he is given the necessary training.
• (II) Interest test This is used to find out the type of work in which the candidate has an interest. For example,
whether a candidate has a liking for a sales job requiring contact with other people can be assessed by means of
this test. An interest test only indicates the interest of a candidate for a particular job. It does not reveal his ability
to do it. Interest tests are generally used for vocational counseling. Usually, well-prepared questionnaires are used
in interest tests.
• (ill) Intelligence test This test is used to find out the candidate's intelligence. By using this test, the candidate's
mental alertness, reasoning ability,(logical reasoning test is a form of psychometric testing measuring
mental ability )power of understanding, etc. are judged. Some examples of intelligence tests are: reading and
summarizing a paragraph in the allotted time, writing 10 to 15 words that begin with the same letter in one
minute, adding up of some figures in the allotted time and so on.

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• Employment tests conti…..
• (Iv) Trade or performance or achievement or job-specific test This test is used to measure the candidate's level
of knowledge and skill in the particular job in which he will be appointed, in case he is finally selected. It may be
of 3 types:
• (a) Performance work sample test
• (b) Written work sample test
• (c) In-basket test.
• In the performance work sample test, the candidate is asked to do a simple operation which is a part of, or similar
to his proposed job. For example, a candidate for a driver's post may be asked to drive the vehicle to assess his
proficiency, or a typist may be asked to type out some letters to find out his speed and accuracy, or a candidate
for a post of salesman may be asked to attend to a prospective customer who enters the shop.
• In the written work sample test, the candidate is required to give answers to various questions in writing.
• In-basket test is a type of simulation applicable to management performance. It consists of an assortment of items
such as a manager might find in an in-basket—letters, reports, memoranda, notes and related materials. The
candidate is asked to note down what action he would take about them if in a manager's job.
• (v) Personality test Personality test is used to measure those characteristics of a candidate which constitute his
personality, e.g., self-confidence, temperament, initiative, judgement, dominance, integrity, originality, etc.
Personality tests are very important in the selection process, particularly in the case of appointments to the posts
of supervisors and higher executives. In a personality test, the candidate may be asked to answer a series of
questions and from his response, his personality may be judged or in some special test situations, the candidate's
reaction may be assessed, or the candidate may be asked to grade his own examination papers in order to know 29
his honesty.
• Medical and physical examination has three objectives:
• (1) It serves to ascertain applicant’s capabilities to meet the job requirement.
• (2) It serves to protect organization against the unwarranted claims under works man compensation.
• (3) It helps to prevent communicable deceases entering the organization.
• A proper medical examination will ensure standards of health and physical fitness of the employees and reduce the
rates of accidents, labour turnover and absenteeism
• Final selection: After a candidate has cleared all the hurdles in the selection procedure, he is formally appointed
by issuing him an appointment letter or by concluding with him a service agreement. The appointment letter
contains the terms and conditions of employment, pay scale and other benefits associated with the job.

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• MEANING AND NATURE OF DIRECTING
• Directing means issuing of orders, leading and motivating subordinates as they go about executing orders.
• techniques is a way of carrying out a particular task, especially the execution or performance of an artistic
work or a scientific procedure
• process a series of actions or steps taken in order to achieve a particular end.
• It is also defined as the process and techniques used for issuing instructions to carry out a job and making
sure that the operations are carried out as per the plan.
• Directing is the interpersonal aspect of managing by which subordinates are led to understand and
contribute effectively and efficiently to the attainment of enterprise objectives.
• The direction has two major activities namely
1. Giving orders to employees and
2. Leading and motivating them to accomplish the goals.
• Definition of direction: Directing is the interpersonal aspect of managing by which subordinates are led to
understand and contribute effectively to the attainment of enterprise objectives. (Harold D Koontz & O’
Donnel)
• Directing consists of the processes and techniques utilized in issuing instructions and making certain that
operations are carried on as originally planned. (Haimann)
• Direction is telling people what to do and seeing that they so it to the best of their ability. It includes
making assignments, corresponding procedures, seeing that mistakes are corrected, providing on-the-job
instruction and issuing orders. (Ernest Dole)
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• Directing is the guidance, the inspiration, the leadership of those men and women that constitute the real
core of the responsibilities of the management. (Urwick and Breach)
• Principles of Direction: or Requirements of Effective Direction
• The role of a manager is to understand the needs, motives and attitudes of his subordinates. He should use
appreciate strategies according to the people and situations.
The following are some of the principles of effective direction:
• 1. Harmony of objectives:
• 2. Unit direction of command:
• 3. Efficiency:
• 4. Direct supervision:
• 5. Effective communication:
• 6. Effective control:
• 7. Follow – through:
• 1. Harmony of objectives: For an organization to function well, it the goals of company and goals of
individuals are in complete harmony. It is very uncommon for such a situation to exist in any organization.
Individual goals may differ from the goals of the organization. The manager should coordinate the
individual goals to be in harmony with the goals of the organization.

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• 2. Unit direction of command:
• This principle implies that an employee should receive orders and instructions only from one supervisor or boss.
Otherwise, there may be indiscipline and confusion leading to conflicting orders, divided loyalties and reduced
results.
• 3. Efficiency: If the superior consults with the subordinates in decision-making, then there would be a sense of
commitment. This makes the direction easy and improves the efficiency of subordinates.
• 4. Direct supervision: Managers should have direct face-to-face contact with the subordinates. Personal touch
with subordinates will ensure successful direction.
• 5. Effective communication: The supervisor must have good communication skills. He must clearly
communicate the plans, goals, policies, responsibilities and the duties to the subordinates. In communication,
comprehension (the ability to understand something.)is more important than the content.
• 6. Effective control: The management should monitor the behavior and performance of subordinates to exercise
effective control over subordinates.
• 7. Follow – through: Direction is a continuous process. Having given the directions may not ensure carrying out
them. Hence a manager should follow-through the performance of his subordinates. Follow up is very important
function of direction.

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LEADERSHIP AND LEADERSHIP STYLES
• The success of a business concern depends upon the ability of its leadership. For example Microsoft,
Reliance, Mittal Steels would not have attained their present success but for the able leadership of Bill
Gates, Dheerubai Ambani and Lakshmi Mittal.
• According to Koontz and O’Donnel, “leadership is generally defined as influence, the art of process of
influencing people so that they will strive willingly towards the achievement of group goals”.
• A leader is one who guides and directs other people.In the words of Alford and Beatty, “Leadership is
the ability to secure desirable actions from a group or followers voluntarily without the use of coercion”.
• coercion ….practice of persuading someone to do something by using force or threats.
• A clear distinction can be made between a leader and a manager. A leader emerges out from situations
where as a manager is put into his position by appointment.
• A leader has informal power and a manager has formal power.
• A leader seeks those very objectives which are the objectives of his subordinates where as a manger seeks
those objectives which his subordinates do not regard their own.

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• The leaders while influencing the subordinates perform the following
functions: (1) Taking initiative: (2) Guide: (3) Representation: (4) Encouraging others: (5) Arbitrator
and mediator: (6) Planner: (7) Administrator of rewards and punishments:
• (1) Taking initiative: A leader has to take all initiative to lead the business activities. He himself should
come in the field and take all steps to achieve predetermined targets. Hence a leader is initiator.
• (2) Guide: A leader has the primary duty of guiding others by communicating instructions and orders.
• (3) Representation: A leader is a representative of the organization.
• (4) Encouraging others: A leader is the captain of the team. Encouragement is necessary to build team
work. The leader must win the confidence of his colleagues.
• (5) Arbitrator and mediator: A leader has to create a smooth relationship among employees. In addition,
he has to settle disputes arising among employees.
• (6) Planner: A leader makes decisions concerning the ways and means by which the organizational goals
can be achieved.
• (7) Administrator of rewards and punishments: Leaders encourage, upgrade, promote deserving people
and replace, transfer and fine inefficient workers.

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MOTIVATION
• A manager gets work done through others. Getting the work done depends mainly on whether a person has
been motivated to do it.
• Motivating an employee is to create a need and a desire on the part of employee to better his performance.
This can be done by creating in him a sense of responsibility and feeling of special interest in his work.
• Motivation concern itself with ‘will to work’. It is a behavioural concept by which a manager tries to
understand why people behave as they do.
• Motivation is inspiring the subordinates to contribute with zeal and enthusiasm towards organizational
goals.
• Performance of an employee depends on two factors, ability to work and willingness to work.
Mathematically Performance = Ability × willingness
• Motivation is enhancing the willingness to work which improves the performance.
• Motivational Theories What can enhance the willingness to work are explained by a number of
motivational theories.

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• Maslow’s Need Hierarchy Theory
• Every person has a variety of needs, some of these needs are satisfied and others are unsatisfied.
An unsatisfied need is the starting point in the motivation process. When a person has an unsatisfied need, he
attempts to identify something that will satisfy the need. This is called as goal. Once a goal has been identified,
he takes action to reach that goal and thereby satisfy the need. A.H. Maslow has identified five categories of
need which are arranged in hierarchy as shown

(1) Physiological needs:Physiological needs deal with the


maintenance of the human body. This lowest category includes
the most basic needs that are vital to survival, such as the need
for water, air, food, and sleep. Maslow believed that these needs
are the most instinctive needs because all needs become
secondary until these needs are met. If we need water, then
little else matters until we have something to drink.

Examples of physiological needs: air, food, water, shelter,


warmth, sleep, etc.
These are the basic needs for sustaining human life itself,
such as food, water, shelter and sleep. Maslow took the
position that until these needs are satisfied to the reasonable
degree necessary to maintain life, other needs will not motivate
people 37
• (2) Security or safety needs: People want to be free of physical danger and of the fear of losing
job, property or shelter.
• Safety and security needs are about keeping us safe from harm. These needs include shelter, job security,
health, and safe environments. If a person does not feel safe in an environment, they will seek to find safety
before they attempt to meet any higher level needs. These security needs are important for survival, but
they are not as important as the basic physiological needs.. Examples of safety and security
needs: safety, shelter, security, law & order, employment, health, stability, etc.
• (3) Social needs: Since people are social being, they need to belong, to be accepted by others.
• Social needs advance our tribal nature. These are the needs for belonging, love, affection as well as for
relationships with family and friends and companionship. These needs are met through pleasing and
fulfilling relationships with others. A pleasing and fulfilling relationship would imply acceptance by others.
Having satisfied their basic physiological and security needs, people can seek relationships from which their
need for love and belonging can be met.
• Examples of social needs: Belongingness, love, affection, intimacy, family, friends, relationships,
etc

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• (4) Esteem needs:After the more basic needs have been satisfied, esteem needs becomes important to an
individual. Once an individual have satisfactorily met their need for love and belonging, they can begin to
develop positive feelings of self-worth and self-esteem. Esteem needs are for a higher position within a group
and act to foster pride in their work and in themselves as individuals. These needs include self-esteem, respect,
achievement, confidence, recognition, and accomplishment.
• Examples esteem needs: self-esteem, self-confidence, achievement, recognition, status, respect, etc.
• Once people begin to satisfy their need to belonging, they tend to want to be held in esteem both by
themselves and by others. This kind of need produces such satisfaction as power, prestige and
status.
• (5) Self-actualization needs: It is desire to become what one is capable of becoming to maximize
one’s potential and to accomplish something. Self Actualization is the highest level of Maslow’s hierarchy.
This level of need pertains to what a person’s full potential is and realizing that potential. “What a man can be,
he must be” is the basis of the perceived need for self-actualization. Maslow describes this as the desire to
become everything that one is capable of becoming.
• Examples of self-actualizing needs: realizing personal potential, self-fulfillment, pursue talent, personal
growth, peak experiences, creativity, etc.
• According to Maslow, people attempt to satisfy their physical need first. As long as the needs are
unsatisfied, they dominate behavior. As they become reasonably satisfied, they loose their
motivational power and the next level i.e., security needs becomes the dominant motivational force.
This process continues up the need hierarchy.
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Table 4.1: Hygiene factors and motivators
Hygiene factors Motivators
Status Challenging work
Interpersonal relations Achievement
Quality of supervision Responsibility

Company policy and administration Growth in the job.

Working conditions Advancement Advancement

Job security Recognition

Salary

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Hertzberg’s Two Factors Theory
• Fredrick Hertzberg and his associates have proposed a two factors theory of motivation. In one group of
needs are such things as company policy and administration, supervision, working conditions,
interpersonal relations, salary, job security and personal life. These are called as dis-satisfiers and not
motivators.
• If they exist in a work environment, they yield no dissatisfaction. Their existence does not motivate but
their absence result dis-satisfaction. Hertzberg called these factors as hygiene or maintenance factors.
• The second group he listed certain satisfiers and therefore motivators, which are related to job content.
They include achievement, recognition, challenging work, advancement and growth in the job.
• The first group of factors (the dissatisfies) will not motivate in the organization, yet they must be present
otherwise dissatisfaction will arise.
• The second group or the job content factors are real motivators because they have the potential of yielding
a sense of satisfaction. It means managers must give considerable attention to upgrading job content.

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Recruitment Process
• Recruitment is a process of finding and attracting the potential resources for filling
up the vacant positions in an organization. It sources the candidates with the
abilities and attitude, which are required for achieving the objectives of an
organization.
• Recruitment process is a process of identifying the jobs vacancy, analyzing the job
requirements, reviewing applications, screening, short listing and selecting the right
candidate.
• To increase the efficiency of hiring, it is recommended that the HR team of an
organization follows the five best practices (as shown in the following image). These
five practices ensure successful recruitment without any interruptions. In addition,
these practices also ensure consistency and compliance in the recruitment process.

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Recruitment process is the
first step in creating a
powerful resource base.
The process undergoes a
systematic procedure
starting from sourcing the
resources to arranging and
conducting interviews and
finally selecting the right
candidates.
Recruitment Process

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• Recruitment Planning
• Recruitment planning is the first step of the recruitment process, where the vacant positions are analyzed and
described. It includes job specifications and its nature, experience, qualifications and skills required for the job, etc.
• A structured recruitment plan is mandatory to attract potential candidates from a pool of candidates. The potential
candidates should be qualified, experienced with a capability to take the responsibilities required to achieve the
objectives of the organization.

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• Identifying Vacancy
• The first and foremost process of recruitment plan is identifying the vacancy. This process begins with receiving the
requisition for recruitments from different department of the organization to the HR Department, which contains −
• Number of posts to be filled
• Number of positions
• Duties and responsibilities to be performed
• Qualification and experience required
• When a vacancy is identified, it the responsibility of the sourcing manager to ascertain whether the position is required
or not, permanent or temporary, full-time or part-time, etc. These parameters should be evaluated before commencing
recruitment. Proper identifying, planning and evaluating leads to hiring of the right resource for the team and the
organization.

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• Job Analysis
• Job analysis is a process of identifying, analyzing, and determining the duties, responsibilities, skills, abilities,
and work environment of a specific job. These factors help in identifying what a job demands and what an
employee must possess in performing a job productively.
• Job analysis helps in understanding what tasks are important and how to perform them. Its purpose is to
establish and document the job relatedness of employment procedures such as selection, training,
compensation, and performance appraisal.
• The following steps are important in analyzing a job −
• Recording and collecting job information
• Accuracy in checking the job information
• Generating job description based on the information
• Determining the skills, knowledge and skills, which are required for the job
• The immediate products of job analysis are job descriptions and job specifications.

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• Job Description A job description provides information on the
following elements −
• Job description is an important document, which is
descriptive in nature and contains the final statement of • Job Title / Job Identification / Organization Position
the job analysis. This description is very important for a • Job Location
successful recruitment process. • Summary of Job
• Job description provides information about the scope of • Job Duties
job roles, responsibilities and the positioning of the job in • Machines, Materials and Equipment
the organization. And this data gives the employer and
• Process of Supervision
the organization a clear idea of what an employee must
do to meet the requirement of his job responsibilities. • Working Conditions
• Health Hazards
• Job description is generated for fulfilling the
following processes −
• Classification and ranking of jobs
• Placing and orientation of new resources
• Promotions and transfers
• Describing the career path
• Future development of work standards

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• Job Specification
• Job specification focuses on the specifications of the
candidate, whom the HR team is going to hire. The
first step in job specification is preparing the list of all
jobs in the organization and its locations. The second
step is to generate the information of each job.
• This information about each job in an organization
• A job specification document provides information
is as follows −
on the following elements −
• Physical specifications
• Qualification
• Mental specifications
• Experiences
• Physical features
• Training and development
• Emotional specifications
• Skills requirements
• Behavioral specifications
• Work responsibilities
• Emotional characteristics
• Planning of career

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