BMEC FINALS NOTES

CHAPTER 6 5. Effective Administration

ORGANIZING  The organization structure is helpful in
defining the jobs positions. The roles to be
− Organizing is an element of management
performed by different managers are
process. Organizing is basically concerned
clarified. Specialization is achieved through
with allocation of duties and
division of work. This all leads to efficient
responsibilities among the people so that
and effective administration.
work will be carried on systematically.
− arrangement of required resources and 6. Growth and Diversification
ways for conducting business activities.  A company‘s growth is totally dependent
on how efficiently and smoothly a concern
Definition works. Efficiency can be brought about by
1. Louis Allen clarifying the role positions to the
 The process of identifying and grouping of managers, co-ordination between
the work to be performed, defining and authority and responsibility and
delegating responsibility and authority, concentrating on specialization. In addition
and establishing a pattern of relationships to this, a company can diversify if its
for the purpose of enabling people to work potential grow.
most effectively together in accomplishing 7. Sense of Security
objectives.  Organizational structure clarifies the job
2. Henri Fayol positions. The role assigned to every
 To organize a business is to provide it with manager is clear. Co- ordination is possible.
everything useful to its functioning – raw Therefore, clarity of powers helps
materials, tools, capital and personnel. automatically in increasing mental
satisfaction and thereby a sense of security
Importance of Organizing in a concern.
1. Specialization 8. Scope for new changes
 Organizational structure is a network of  Where the roles and activities to be
relationships in which the work is divided performed are clear and every person gets
into units and departments. This division of independence in his working, this provides
work is helping in bringing specialization in enough space to a manager to develop his
various activities of concern. talents and flourish his knowledge. A
2. Well Defined Jobs manager gets ready for taking
 Organizational structure helps in putting independent decisions which can be a road
right men on right job which can be done or path to adoption of new techniques of
by selecting people for various production. This scope for bringing new
departments according to their changes into the running of an enterprise
qualifications, skill and experience. This is is possible only through a set of
helping in defining the jobs properly which organizational structure.
clarifies the role of every person.
3. Clarifies Authority PROCESS OF ORGANIZING
 Organizational structure helps in clarifying 1. Division of work - The first process of
the role positions to every manager (status organizing includes identification and division of
quo). This can be done by clarifying the work which shall be done in accordance with
powers to every manager and the way he the plans that are determined previously.
has to exercise those powers should be
clarified so that misuse of powers does not 2. Departmentation - Once the work of
take place. identifying and dividing the work has been done
those are similar are to be grouped.
4. Co-ordination
 Organization is a means of creating co-
3. Linking departments - When the process of
ordination among different departments of
departmentation was completed, linking of
the enterprise. It creates clear cut
departments has to be done so that those
relationships among positions and ensures
departments operate in a coordinate manner
mutual co- operation among individuals.
which gives a shape to overall organization
Harmony of work is brought by higher level
structure.
managers

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BMEC FINALS NOTES

4. Assigning Duties - On completion of II. ORGANIZATIONAL CCHANGE AND

departmentation process assigning duties i.e. ORGANIZATIONAL DEVELOPMENT
defining authority and responsibility to the  Most managers, at one point or another,
employees on the basis of their skills and will have to change some things in their
capabilities has to be done, which in workplace.
consequence magnifies efficiency with regard to  which is any alteration of people,
their work. structure, or technology. Organizational
changes often need someone to act as a
5. Defining Hierarchal Structure - Each catalyst and assume the responsibility for
employee should also know from whom he has managing the change process—that is, a
to take orders and to whom he is change agent.
accountable/responsible.  Change agents can be a manager within
the organization, but could be a non-
ORGANIZATIONAL CHARTS manager—for example, a change specialist
 An organizational chart is a diagram that from the HR department or even an
shows the structure of an organization as outside consultant. For major changes, an
well as the relationships and relative ranks organization often hires outside
of its positions. The term "chart" refers to consultants to provide advice and
a map that helps managers navigate assistance.
through patterns in their employees.
Charts help organize the workplace while TYPE OF CHANGE
outlining the direction of management ۞ Managers face three main types of change:
control of subordinates. structure, technology, and people.
 shows the managers and sub-workers who Changing structure includes any change in
make up an organization. It also shows the structural variables such as reporting
relationships between directors: managing relationships, coordination mechanisms,
director chief executive officer: various employee empowerment, or job redesign.
departments.

ORGANIZATIONAL MANUALS
 is a repository for organization data
commonly used by company managers. It
has many values as an administrative tool
to help the manager to do his job more
effectively.
 It enables him to visualize the company
organization as a whole and to see his own
responsibilities as part of the total picture.
It also defines the relationships which will
guide him in developing teamwork and in
working with other managers. ۞ Changing Structure - Changes in the
 The organization manual should be made external environment or in organizational
up as a permanent, hardcover, loose-leaf strategies often lead to changes in the
volume. organizational structure.
۞ Changing Technology - Managers can also
CONTENTS OF ORGANIZATIONAL MANUAL: change the technology used to convert
1. Statement of company objectives and policies inputs into outputs. Most early
2. Responsibilities and authorities at various management studies dealt with changing
levels technology.
3. Delegation of authority existing in the
organization ۞ Changing People - Changing people
4. Nature of supervision involves changing attitudes, expectations,
5. Span of control at various levels perceptions, and behaviors, something
that’s not easy to do.

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BMEC FINALS NOTES

Organizational Development (OD) is the term  A job specification states the minimum
used to describe change methods that focus on qualifications that a person must possess
people and the nature and quality of to successfully perform a given job.
interpersonal work relationships.
 MEETING FUTURE HR NEEDS. Future HR
needs are determined by the
organization’s mission, goals, and
strategies. Demand for employees results
from demand for the organization’s
products or services.

B. Recruitment and Decruitment

 If employee vacancies exist, managers
should use the information gathered
through job analysis to guide them in
recruitment—that is, locating, identifying,
and attracting capable applicants.
 if HR planning shows a surplus of
employees, managers may want to reduce
the organization’s workforce through
III. HUMAN RESOURCCE decruitment.
MANAGEMENT C. Selection
 Every organization needs people to do
 Once you have a pool of candidates, the
whatever work is necessary for doing what
next step in the HRM process is selection,
the organization is in business to do. How
screening job applicants to determine who
do they get those people? And more
is best qualified for the job. Managers
importantly, what can they do to ensure
need to “select” carefully since hiring
they get competent, talented people? This
errors can have significant implications.
first phase of the HRM process involves
three tasks: human resource planning,  TYPES OF SELECTION TOOLS
recruitment and decruitment, and
selection.

A. Human Resource Planning

 Human resource planning is the process by
which managers ensure that they have the
right number and kinds of capable people
in the right places and at the right times.

 CURRENT ASSESSMENT. Managers begin

HR planning by inventorying current
employees. This inventory usually includes
information on employees such as name,
education, training, prior employment,
languages spoken, special capabilities, and
specialized skills. Sophisticated databases
make getting and keeping this information
quite easy

 A job description is a written statement

describing a job— typically job content,
environment, and conditions of
employment.

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BMEC FINALS NOTES

D. Providing Employees with Needed Skills that are used to evaluate employee
and Knowledge performance.

D.1 Orientation PERFORMANCE APPRAISAL METHODS

 A person starting a new job needs the  More than 70 percent of managers admit
same type of introduction to his or her job they have trouble giving a critical
and the organization. This introduction is performance review to an underachieving
called orientation. employee. It’s particularly challenging
when managers and employees alike sense
 Work unit orientation familiarizes the
that they’re not beneficial. Although
employee with the goals of the work unit,
appraising someone’s performance is
clarifies how his or her job contributes to
never easy, especially with employees who
the unit’s goals, and includes an
aren’t doing their jobs well, managers can
introduction to his or her new coworkers.
be better at it by using any of the seven
 Organization orientation informs the new different performance appraisal methods
employee about the company’s goals,
 The only way for managers to reward the
history, philosophy, procedures and rules.
top performers was to give them a bonus
It should also include relevant HR policies
or promote them to another position.
and maybe even a tour of the facilities.
 Managers must develop a compensation
D.2 Employee Training system that reflects the changing nature of
 Employee training is an important HRM work and the workplace in order to keep
activity. Managers, of course, are people motivated. Organizational
responsible for deciding what type of compensation can include many different
training employees need, when they need types of rewards and benefits such as base
it, and what form that training should take. wages and salaries, wage and salary add-
ons, incentive payments, and other
 TYPES OF TRAINING
benefits and services.

E. RETAINING COMPETENT, HIGH-

PERFORMING EMPLOYEES
 Once an organization has invested
significant dollars in recruiting, selecting,
orienting, and training employees, it
wants to keep them, especially the
competent, high-performing ones! Two
HRM activities that play a role in this
area are managing employee
performance and developing an
appropriate compensation and benefits
program.
 Employee Performance Management
Managers need to know whether their
employees are performing their jobs
efficiently and effectively. That’s what a
performance management system does
—establishes performance standards

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BMEC FINALS NOTES

ENUMERATION

Importance of Organizing
1. Specialization
2. Well Defined Jobs
3. Clarifies Authority
4. Co-ordination
5. Effective Administration
6. Growth and Diversification
7. Sense of Security
8. Scope for new changes

PROCESS OF ORGANIZING
1. Division of work
2. Departmentation
3. Linking departments
4. Assigning Duties
5. Defining Hierarchal Structure

TYPE OF CHANGE
1. Changing Structure
2. Changing Technology
3. Changing People

More effective Interpersonal work

relationships
1. Sensitivity Training
2. Team Building
3. Intergroup Development
4. Process Consultation
5. Survey Feedback

TYPES OF SELECTION TOOLS

1. Application Forms
2. Written Tests
3. Performance-Simulation Tests
4. Interviews
5. Background Investigations
6. Physical Examinations

Orientation
1. Work Unit Orientation
2. Organization Orientation