Organizing &Staffing

• Once the general and specific objectives determined

and to achieve them a plan is prescribed, the next
step is to organize the activities
• Organizing is the function of management which
follows planning. It is a function in which the
synchronization and combination of human, physical
and financial resources takes place
• Above resources are important to get results
• Organizing involves assigning tasks
• delegating authority
• allocating resources across the organization
• managers coordinate employees, resources,
policies, and procedures to facilitate the goals
• The board of directors, president, vice-president,
and CEO are all examples of top-level managers.
These managers are responsible for controlling and
overseeing the entire organization.
• They develop goals, strategic plans, company
policies, and make decisions on the direction of the
business
• Koontz O’Donnel, “Organising involves the
establishment of an international structure of roles
through determination and enumeration of the
activities required to achieve the goals of an
enterprise and each part of it; the grouping of these
activities, the assignment of such groups of activities
to the manager, the delegation of authority to carry
them out and provision for co-ordination of authority
and informational relationship, horizontally and
vertically, in the organisation structure.
• According to Chester Barnard, “Organizing is a
function by which the concern is able to
define the role positions, the jobs related and
the co-ordination between authority and
responsibility. Hence, a manager always has to
organize in order to get results.
 Types of organizations
• Line Structure Organization,
• Line and Staff Organization,
• Functional Structure Organization,
• Matrix Structure Organization
• and Project Structure Organization
 Line Structure Organization

• simplest and oldest form of organization

• It is called as a scalar type of military or
divisional or organization
• authority flows directly and vertically downward
from the top of the managerial hierarchy to
different levels of managers and subordinates
• down to the operative level of workers. It is also
known as the chain of command or scalar
principle.
Advantages of Line Structure Organization:

• Simple to understand and simple to operate;

• Communication is fast and easy;
• Feedback can be acted upon faster;
• Responsibility is fixed and unified at each level and authority
and accountability are clear-cut, hence each individual knows
to whom he is responsible and who is or in truth responsible to
him;
• Since it is especially useful when the company is small in size, it
provides for greater control and discipline in the organization.
• It is a stable form of organization.
•
Disadvantages of Line Structure Organization:

• It is a rigid and inflexible form of organization;

• Line authority has a tendency to become dictatorial;
• It overloads the executive with suppressive activities so that long-range
planning and policy making are often neglected;
• A line organization can suffer from a lack of specialization. This is
because each department manager is concerned only with the
activities of his own department.
• Different departments may be more interested in their interests rather
than overall organizational interests and welfare;
• This is likely to encourage nepotism;
• It might stop progress and prevent the unit to work effectively.
• It does not provide any means by which a good worker can be
rewarded and a bad one can be punished.
 Line and Staff Organization

• It attempts to present a large and complex

enterprise
• more flexible way without sacrificing managerial
authority.
• Staff groups support those who are engaged in
the central productive activity of the enterprise
• Staff groups help the organisation in analysing,
researching, counselling, monitoring, and in
evaluating activities.
Line & staff
Advantages of Line and Staff Organization:
• Line officers can mainly focus on the task as planning and checking is done
by the employees. Specialization provides expert advice and proficiency in
management.
• Since the organization includes line and staff functions, decisions can be
made easily.
• Staff officers provide complete factual data to line officers covering activity
within and without their units. This will help to create more coordination.
• It provides ample opportunities for the advancement of workers.
• Staff services provide a training ground for various positions.
• This arrangement is flexible for newcomers in that employees can be forced
to make early adjustments to the line arrangement.
• Staff experts are ideologically oriented to look forward and have time to
undertake program and strategic planning
Disadvantages of Line and Staff Organization:

• Confusion and conflict may arise between the

line and the staff. Because the allocation of
authority and responsibility
• The staff usually advises the lines, but the line
makes decisions and tasks
• Since staff specialists demand high pay, it is
expensive.
 Functional Structure Organization

• is one of the most common structures of

organization
• They are grouped based on their specific skills and
knowledge
• employees are divided into groups by the
organization according to a particular or group of
tasks
• It operates well in stable environments
• It operates where business strategies have little
inclination for change or mobility
 Advantages of
Functional Structure Organization:
• executive or the team leader has the knowledge and
experience of that particular field
For example, the person heading the IT department will
have the education and skill necessary to shoulder this
responsibility and successfully run his team.
• Possibility of fewer mistakes
• share ideas and come up with solutions.
• The employees also having a clear idea of the hierarchy
of the firm
• employees feel secure in their work
 Disadvantages of
Functional Structure Organization
• work can be quite one dimensional
• employees may start feeling monotony or boredom
• In this structure, the manager must take care of the
appraisal system. If the correct approach is not
taken then conflicts may arise between the
employees regarding promotions or appraisals.
• this form of organization requires a high degree of
specialization
• difficulties in inter-departmental communication
 Matrix Structure Organization

• is a structure of organization in which some individuals report

to more than one supervisor or leader
• it can also describe the management of cross-functional
• a matrix structure is a combination of various organizational
structures
• It is based on cross-business groups
For example- an engineer may regularly belong to the engineering
department (led by an engineering director) but work on a
temporary project (led by a project manager)
For example, an employee may have a primary manager they
report to as well as one or more project managers they work
under.
 Advantages
• Since there is both vertical and horizontal
communication, it increases coordination and
this leads to greater and more effective control
over operations.
• matrix organization is handling many projects,
the available resources will be fully utilized.
• It focuses organizational resources on specified
projects
• highly flexible in following rules, procedures
Disadvantages of Matrix Organization:
• causes confusion and conflict and reduces
effective control since there is more
supervisors
• continuous communication both vertically and
horizontally, which increases paper work and
costs.
 Factor consider while deciding
organizational structure
Managements need to seriously consider how
they wish to structure the organization. Some
of the critical factors that need to be considered
are
• The size of the organization
• Nature of the business
• The objectives and the business strategy to
achieve them
• The organization environment
 Scalar chain
Proposed by Henry Fayol
• is the formal line of authority which moves from
highest to lowest rank in a straight line.
• chain specifies the route through which the
information is to be communicated
• any information should follow a pre-defined path
• Fayol emphasized that every information in the
organization must flow according to this chain
• clear communication of orders of the superiors
and feelings of the subordinates
• This chain must be strictly followed in the organization.
• For example- if A is the CEO of an organisation and he has two
paths of authorities under him, namely the finance department
and the sales department. ... C is the sales junior under him
Fayol’s Ladder: This principle was explained by Fayol with the help
of a ladder diagram which showed the flow of information.
more clear system of authority and communication, problems can
be solved easily
this principle is very effective and clear
it consumes a lot of time
• The process makes workers' lives simpler in
many ways, however, it does take time for any
information to reach people in the lowest
structure.
• According to the scalar chain, if employee
number 2 of a 6-employee company has to
transfer a piece of news to employee number
6, he or she has to follow the path from
employee 2, 3, 4, 5, and then lastly 6.
• For example, in an organization there are
employees A, B, C, D, E, F, G, H, I, at various
posts
• If employee ‘C’ has to communicate with
employee ‘G’ using the scalar chain
• route should be like-
C B A F G
GANG PLANK
Gang plank refers to an arrangement in which two managers working at the same level

can communicate with each other directly for quick communication .

Communication through the scalar chain may involve delays when two subordinates or employees at
the same level want to exchange
Thus, Fayol suggested the concept of ‘Gang Plank’ to avoid delays and allow direct communication
between two subordinates at the same level

Fayol suggested the concept of 'Gang Plank' to avoid delays and allow direct
communication between two subordinates at the same level
 Staffing
• is concerned with managing various positions in the
organisation
• refers to finding the right person for the right job with
appropriate qualifications or experience
• Staffing involves the determination of manpower
requirements of the enterprise
• staffing function follows the planning and organising function
• Staffing involves-
 manpower planning
 procurement (i.e., selection and placement)
 training and development
 appraisal and remuneration of workers
• Staffing is the key to all other managerial functions
• helps to maintain a satisfactory workforce in an enterprise
• staffing is a continuous process
• management must ensure a constant availability of sufficient number
of efficient executives
• Every manager is continuously engaged in performing the staffing
function
• staffing is a pervasive function of management and is performed by the
managers at all levels
Example-employee recruitment, screening and selection performed
within an organization or business to fill job openings
Other areas of employment which may be handled by a staffing
department are orientation, training, retention and termination.
 Importance of Staffing
• ensure higher performance by placing right person
for the right job by proper recruitment and
selection process
• appointing efficient staff, staffing function ensure
continuous survival and growth of the organization.
• discovering of qualified and getting competent
personnel for varied jobs within the organisation.
• It promotes optimum utilization of human resources
• increase job satisfaction and morale of the staff
 Staffing process :
Estimating manpower requirement

Recruitment

Selection

Orientation and Placement

Training and Development

Performance Appraisal

Promotion and Career Planning

Compensation
 Estimating manpower requirement

• start with the estimation of man power

requirement
• finding the number and type of employees
needed by the organization.
• Type means the qualification and educational
background of the person whom we need to
appoint.
 Recruitment

• method of finding out a prospective

candidate
• stimulate them to apply for the job
• done through the internal source of
recruitment and of recruitment.
 Selection
• is the process of selecting the most suitable
candidate
• fill the vacant job position
• The selection is done through a process which
involve interview test etc.
 Orientation and Placement

• After the selection, placement is done where

the employee occupies the job position
• is given the brief introduction about the
company and introduced to the co-workers
• orientation process which familiarises the
candidate with the job position and
organization.
 Training and Development
• is an important part of incentives
• to develop and grow them within the concern
• Firm either have their in-house training center
or external
• alliances with training institutions for training
and development of the employees
 Performance Appraisal
• the capability of the employee is judged and for
that, his actual work performance is compared
with the work assigned to him
• If the results are not up to the mark, he is again
given training
Promotion and Career Planning
career-related problem to promote the employees
includes additional pay, responsibility and job
satisfaction
 Compensation
• Compensation refers to any or all for of
payments to the workers including pay and
rewards. It also includes incentives,
commission and indirect payments