PRINCIPLES OF MANAGEMENT AND

PROFESSIONAL ETHICS
Subject Code - SBAA4002
UNIT – 3
STAFFING AND LEADING

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 Unit - 3
STAFFING AND LEADING
Human resource management, HR Planning,
Recruitment selection, training and development,
performance management, career planning and
management, Directing individual and group
behaviour, motivation, motivation theories,
motivational techniques, job satisfaction, job
enrichment, leadership, types and theories of
leadership, effective communication.
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 Staffing
• Staffing is the function of employing suitable persons for the
enterprise.
• It may be defined as an activity where people are recruited, selected,
trained, developed, motivated and compensated for managing
various positions.
• It includes not only the movement of individuals into an organisation,
but also their movement through (promotion, job rotation, transfer)
and out (termination, retirement) of the organisation.

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 Staffing
Staffing involves selection of the right man for the right job.
It has four important elements:
1. Recruitment may be defined as the process of attracting the
maximum number of applications for a particular job.
2. Selection is the process of screening the candidates and choosing
the best one or two (Based on requirement) out of them.
3. Training involves imparting the necessary knowledge and skills
required for the performance of a particular job.
4. Compensation is the price paid to the workers for the services
rendered to the organisation.

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 Staffing

• Staffing involves filling the positions needed in the organization

structure by appointing competent and qualified persons for the job.
• The staffing process encompasses man power planning, recruitment,
selection, and training.

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 Introduction
• Human resource is a very broad term with which an organisation, or
other human system describes the combination of traditionally
administrative personnel functions with acquisition and application of
skills, knowledge and experience, employee relations and resource
planning at various levels.
• Coordination is the act of directing, making different people or things
work together for a goal or effect. Obviously, a manager has to be
adept in the art of coordination.

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 Human Resource Management
• Human resource management can be defined as a collection of those
managerial activities that are associated with human resources
planning, recruitment, selection, orientation, training, appraisal,
motivation, remuneration, etc., HRM aims at developing people
through work.
• HRM is seen by practitioners in the field as a more innovative view of
workplace management than the traditional approach of personnel
management.

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 Human Resource Management
Human resource management policies are vital for organisations
that are serious about resolving personnel issues and finding human
resource solutions. Its features include:
1. Organisational management
2. Personnel administration
3. Manpower management
4. Industrial management

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Functions of Human Resource Management

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Organisational management

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Manpower management

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Industrial management

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 Recent Trends in HRM
There are a number of critical trends affecting the employment
relationship that further affect how organisations need to manage
their employees.
Some of these trends relate to changes taking place in the external
environment of the organisation; others pertain to some of the ways
organisations are responding internally to such trends.
The prevailing trends have significantly change the way HRM
works.
The recent trends in HRM can be identified under technological
impact, economic challenges and workforce diversity.

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 Electronic Human Resource Management
(E-HRM)
• E-HRM is the application of information technology for human
resource management.
• The information technology helps in networking of personnel while
discharging their HR activities.
• E-HRM can be seen as delegating HR functions to management and
employees.
• They access these functions typically via intranet or other web-
technology channels.

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Electronic Human Resource Management
(E-HRM)
E-HRM works on three levels
Operational, Relational and Transformational
 At the operational level, with the help of E-HRM administrative
functions are discharged e.g. payroll and employee personal data.
 Relational E-HRM is concerned with supporting business processes
by means of training, recruitment, performance management and so
forth.
 Transformational E-HRM is concerned with strategic HR activities.

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 Recruitment
• Organisations have to recruit people with requisite skills,
qualifications and experience, if they have to survive and flourish in a
highly competitive environment.
• While doing so, they have to be sensitive to economic, social, political
and legal factors within a country.
• To be effective, they need to tap all available sources of supply, both
internal and external.

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 Meaning of Recruitment
Recruitment is the process of locating and encouraging potential
applicants to apply for existing or anticipated job openings. It is actually
a linking function, joining together those with jobs to fill and those
seeking jobs. Recruitment, logically, aims at
(i) Attracting a large number of qualified applicants who are
ready to take up the job if it's offered and
(ii) Offering enough information for unqualified persons to self-
select themselves out (for example, the recruitment and of a foreign
bank may invite applications from chartered accountants who have
cleared the CA examination in the first attempt only).

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 Sources of Recruitment
• The sources of recruitment may be broadly divided into two
categories: internal sources and external sources. Let us understand
each of them one by one.

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Source: www.kalyan-city.blogspot.com
Internet Recruiting - In recent years most companies have found it
useful to develop their own website and list job openings on it. The
website offers a fast, convenient and cost effective means for job
applicants to submit their resume through the Internet.
such as
(i) www.jobsahead.com
(ii) www.headhunters.com
(iii) www.naukri.com
(iv) www.monsterindia.com
(v) www.mafoi.com
(vi) www.abcconsultants.net
(vii) www.datamaticsstaffing.com
(viii) www.timesjobs.com etc.)
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 Selection
Selection is the process of evaluating the qualifications,
experience, skill, knowledge, etc., of an applicant in relation to the
requirements of the job to determine his suitability for the job. The
selection procedure is concerned with securing relevant information
from applicants and selecting the most suitable among them, based on
an assessment of how successful the employee would be in the job, if he
were placed in the vacant position.
The selection process has two basic objectives:
1. To predict which applicant would be the most successful if selected
for the job, and
2. To sell the organisation and the job to the right candidate.

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 Training and Development

Training and Development is a planned effort to facilitate

employee learning of job-related behaviors in order to improve
employee performance. Experts sometimes distinguish between the
terms “training” and “development”; “training” denotes efforts to
increase employee skills on present jobs, while “development”
refers to efforts oriented toward improvements relevant to future
jobs. In practice, though, the distinction is often blurred (mainly
because upgrading skills in present jobs usually improves performance
in future jobs).

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 RECRUITMENT PROCESS
• Recruitment is the process of finding and attempting to
attract job candidates who are capable of effectively filling
job vacancies. The recruitment process consists of the
following steps

• Identification of vacancy
• Preparation of job description and job specification
• Selection of sources
• Advertising the vacancy
• Managing the response

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Identification of vacancy

Preparation of job description and job specification

Selection of sources

Advertising the vacancy

Managing the response

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 Identification of vacancy
• The recruitment process begins with the human resource
department receiving requisitions
• for recruitment from any department of the company. These
contain:
• Posts to be filled
• Number of persons
• Duties to be performed
• Qualifications required

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 Preparation of job description and job
specification
• A job description is a list of the general tasks, or functions, and
responsibilities of a position.
• It may often include to whom the position reports, specifications such
as the qualifications or skills needed by the person in the job, or a
salary range.
• A job specification describes the knowledge, skills, education,
experience, and abilities you believe are essential to performing a
particular job.

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 Selection of Sources

• Every organization has the option of choosing the candidates for

its recruitment processes from two kinds of sources: internal and
external sources.
• The sources within the organization itself (like transfer of employees
from one department to other, promotions) to fill a position are known
as the internal sources of recruitment.
• Recruitment candidates from all the other sources (like outsourcing
agencies etc.) are known as the external sources of the
recruitment.

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 Advertising the vacancy
• After choosing the appropriate sources, the vacancy is communicated
to the candidates by means of a suitable media such as
• Television,
• Radio,
• Newspaper,
• Internet,
• Direct mail etc...

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 Career Planning
• Career Planning essentially means helping the employees to plan their
career in terms of their capacities within the context of organisational
needs.
• It is described as devising an organisational system of career
movement and growth opportunities from the point of entry of an
individual in employment to the point of his or her retirement.

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 Process of career planning and
development
There are two components of career planning and development:
 Career Development Programme, and
 Career Planning Process and Activities
Career Development
This involves three activities:
a) Assisting employees in assessing their own internal career needs.
b) Developing and publicising available career opportunities in the
organisation.
c) Aligning employee needs and abilities with career opportunities.
• Internal Career Assessment
• Career Opportunities
• Employee's Needs and Opportunities
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Career Planning Process and Activities
• Organisation's personnel inventory
• Employee's potential for career planning
• Formulation and implementation of training and
development plans and programmes
• Age balance and career paths
• Review of career development plans in action
• Career counselling.

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 DIRECTING
• Directing is concerned with directing human efforts towards organizational
goal achievements.
• The success of these directional efforts determines the satisfactory or
unsatisfactory performance within the organization.
• Thus, directing is the function the will test the managerial capability in running
the organization.
According to Haimann:
• “Directing consists of the process and techniques utilized in issuing
instructions and making certain that operations are carried on as originally
planned.”
According to Koontz and O’Donnel:
• “Direction is the interpersonal aspect of managing by which subordinates are
led to understand and contribute effectively to the attainment of enterprise
objectives”
According to Urwick and Brech:
• “Directing is the guidance, the inspection, the leadership of those men and
women that constitute the real course of responsibility of management.”
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 DIRECTING
"Activating deals with the steps a manager takes to get sub-ordinates and
others to carry out plans" - Newman and Warren.
Directing concerns the total manner in which a manager influences the
actions of subordinates.
It is the final action of a manager in getting others to act after all
preparations have been completed.
Characteristics
Elements of Management
Continuing Function
Pervasive Function
Creative Function
Linking function
Management of Human Factor
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 MOTIVATION

"Motivation" is a Latin word, meaning "to move". Human

motives are internalized goals within individuals. Motivation may be
defined as those forces that cause people to behave in certain ways.
Motivation encompasses all those pressures and influences that trigger,
channel, and sustain human behaviour. Most successful managers have
learned to understand the concept of human motivation and are able
to use that understanding to achieve higher standards of
subordinate work performance.
• According to Koontz and O'Donnell, "Motivation is a class of drives,
needs, wishes and similar forces".

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 SATISFACTION
• Employee satisfaction (Job satisfaction) is the terminology used to describe
whether employees are happy and contented and fulfilling their desires and
needs at work.
• Many measures purport that employee satisfaction is a factor in employee
motivation, employee goal achievement, and positive employee morale in the
workplace.
• Employee satisfaction is often measured by anonymous employee
satisfaction surveys administered periodically that gauge employee satisfaction in
areas such as:
• management,
• understanding of mission and vision,
• empowerment,
• teamwork,
• communication, and
• Co-worker interaction

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 Motivation theories
a) McGregor’s Theory X and Theory Y:
• McGregor states that people inside the organization can be managed in two ways.
• The first is basically negative, which falls under the category X and the other is basically
positive, which falls under the category Y.
• After viewing the way in which the manager dealt with employees, McGregor
concluded that a manager’s view of the nature of human beings is based on a certain
grouping of assumptions and that he or she tends to mold his or her behaviour towards
subordinates according to these assumption
Under the assumptions of theory X :
• Employees inherently do not like work and whenever possible, will attempt to avoid it.
• Because employees dislike work, they have to be forced, coerced or threatened with
punishment to achieve goals.
In contrast under the assumptions of theory Y :
• Physical and mental effort at work is as natural as rest or play.
• People do exercise self-control and self-direction and if they are committed to those
goals.

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b) Abraham Maslow’s “Need Hierarchy Theory”:
• One of the most widely mentioned theories of motivation is the hierarchy of needs
theory put forth by psychologist Abraham Maslow. Maslow saw human
needs in the form of a hierarchy, ascending from the lowest to the highest, and
he concluded that when one set of needs is satisfied, this kind of need ceases to be
a motivator.
As per his theory these needs are:
(i) Physiological needs:
• These are important needs for sustaining the human life. Food, water, warmth,
shelter, sleep, medicine and education are the basic physiological needs which fall
in the primary list of need satisfaction. Maslow was of an opinion that until these
needs were satisfied to a degree to maintain life, no other motivating factors can
work.
(ii) Security or Safety needs:
• These are the needs to be free of physical danger and of the fear of losing a job,
property, food or shelter. It also includes protection against any emotional harm.
(iii) Social needs:
• Since people are social beings, they need to belong and be accepted by others.
People try to satisfy their need for affection, acceptance and friendship.
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(iv) Esteem needs:
According to Maslow, once people begin to satisfy their need to belong, 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 status and self-
confidence. It includes both internal esteem factors like self-respect,
autonomy and achievements and external esteem factors such as states,
recognition and attention.
(v) Need for self-actualization:
Maslow regards this as the highest need in his hierarchy. It is the drive to
become what one is capable of becoming; it includes growth, achieving one’s
potential and self-fulfilment. It is to maximize one’s potential and to
accomplish something.

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c) Frederick Herzberg’s motivation-hygiene theory
Frederick has tried to modify Maslow’s need Hierarchy theory.
His theory is also known as two-factor theory or Hygiene theory.
He stated that there are certain satisfiers and dissatisfiers for
employees at work.
Intrinsic factors are related to job satisfaction,
while extrinsic factors are associated with dissatisfaction.
Growth prospectus job advancement, responsibility, challenges, recognition
and achievements.

d) Victor Vroom’s Expectancy theory

Motivation = Valence x Expectancy.

The theory focuses on three things:
• Efforts and performance relationship
• Performance and reward relationship
• Rewards and personal goal relationship
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e) Clayton Alderfer’s ERG Theory

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f) McClelland’s Theory of Needs:
• David McClelland has developed a theory on three types of motivating needs :
• (i) Need for Power
• (ii) Need for Affiliation
• (iii) Need for Achievement
• Basically people for high need for power are inclined towards influence
and control. They like to be at the centre and are good orators. They are
demanding in nature, forceful in manners and ambitious in life. They can
be motivated to perform if they are given key positions or power
positions.
g) Stacey Adams’ Equity Theory:
As per the equity theory of J. Stacey Adams, people are motivated by
their beliefs about the reward structure as being fair or unfair, relative to the
inputs. People have a tendency to use subjective judgment to balance the
outcomes and inputs in the relationship for comparisons between different
individuals. Accordingly:

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 LEADERSHIP
Definition
Leadership is defined as influence, the art or process of influencing people so that
they will strive willingly and enthusiastically toward the achievement of group goals.
- Leaders act to help a group attain objectives through the maximum application of
its capabilities.
- Leaders must instill values – whether it be concern for quality, honesty
and calculated risk taking or for employees and customers.

Importance of Leadership
1. Aid to authority
2. Motive power to group efforts
3. Basis for co operation
4. Integration of Formal and Informal Organization.

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 LEADERSHIP STYLES
The leadership style we will discuss here are:
a) Autocratic style
b) Democratic Style
c) Laissez Faire Style
a) Autocratic style
Manager retains as much power and decision-making authority as
possible. The manager does not consult employees, nor are they
allowed to give any input. Employees are expected to obey orders
without receiving any explanations. The motivation environment is
produced by creating a structured set of rewards and punishments.

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b) Democratic Style
Democratic Leadership is the leadership style that promotes the
sharing of responsibility, the exercise of delegation and continual
consultation.
• The style has the following characteristics:
• Manager seeks consultation on all major issues and decisions.
• Manager effectively delegate tasks to subordinates and give
them full control and responsibility for those tasks.
• Manager welcomes feedback on the results of initiatives and
the work environment.

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c)Laissez-FaireStyle
This French phrase means “leave it be” and is used to describe a leader who leaves his/her
colleagues to get on with their work. The style is largely a "hands off" view that tends to minimize
the amount of direction and face time required.

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 LEADERSHIP THEORIES
• The various leadership theories are
a) Great Man Theory:
Assumptions
• Leaders are born and not made.
• Great leaders will arise when there is a great need.
b) Trait Theory:
• Assumptions
• People are born with inherited traits.
• Some traits are particularly suited to leadership.
• People who make good leaders have the right (or sufficient) combination of
traits.

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c) Behavioral Theory:
Assumptions
• Leaders can be made, rather than are born.
• Successful leadership is based in definable, learnable behaviour.
d) Participative Leadership:
Assumptions
• Involvement in decision-making improves the understanding of the issues
involved by those who must carry out the decisions.
• People are more committed to actions where they have involved in the
relevant decision-making.
• People are less competitive and more collaborative when they are
working on joint goals.
e) Situational Leadership:
Assumptions
• The best action of the leader depends on a range of situational factors.
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f) Contingency Theory:
Assumptions
• The leader's ability to lead is contingent upon various situational factors, including the leader's
preferred style, the capabilities and behaviors of followers and also various other situational
factors.
g) Transactional Leadership:
• Assumptions
• People are motivated by reward and punishment.
• Social systems work best with a clear chain of command.
• When people have agreed to do a job, a part of the deal is that they cede all authority to
their manager.
• The prime purpose of a subordinate is to do what their manager tells them to do.
h)Transformational Leadership:
• Assumptions
• People will follow a person who inspires them.
• A person with vision and passion can achieve great things.
• The way to get things done is by injecting enthusiasm and energy

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 COMMUNICATION
• Communication is the exchange of messages between people for the
purpose of achieving common meanings. Unless common meanings are
shared, managers find it extremely difficult to influence others.
• connections between employees and build cooperation. Communication
also functions to build and reinforce interdependence between various
parts of the organization.
DEFINITION
• According to Koontz and O'Donnell, "Communication, is an
intercourse by words, letters symbols or messages, and is a way that
the organization members shares meaning and understanding with
another".

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 THE COMMUNICATION PROCESS
• Communication is important in building and sustaining human
relationships at work.
• Communication can be thought of as a process or flow. Before
communication can take place, a purpose, expressed as a message to
be conveyed is needed. It passes between the sender and the receiver.
The result is transference of meaning from one person to another.
• The figure below depicts the communication process. This model is
made up of seven parts:
(1) Source, (2) Encoding, (3) Message, (4) Channel, (5) Decoding,
(6) Receiver, and (7) Feedback.

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 The Communication Process

a) Source:
The source initiates a message. This is the origin of the communication and can be an
individual, group or inanimate object. The effectiveness of a communication depends to a
considerable degree on the characteristics of the source.

b) Encoding:
Once the source has decided what message to communicate, the content of the message must
be put in a form the receiver can understand. As the background for encoding information, the sender
uses his or her own frame of reference.

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• Skill
Successful communicating depends on the skill you posses. Without
the requisite skills, the message of the communicator will not reach the
requisite skills; the message of the communicator will not reach the
receiver in the desired form. One's total communicative success includes
speaking, reading, listening and reasoning skills.
• Attitudes
Our attitudes influence our behaviour. We hold predisposed ideas
on a number of topics and our communications are affected by these
attitudes.
• Knowledge
We cannot communicate what we don't know. The amount of
knowledge the source holds about his or her subject will affect the message
he or she seeks to transfer.

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c) The Message:
The message is the actual physical product from the source encoding.
The message contains the thoughts and feelings that the communicator
intends to evoke in the receiver. The message has two primary
components:-
• The Content: The thought or conceptual component of the message is contained
in the words, ideas, symbols and concepts chosen to relay the message.
• The Affect: The feeling or emotional component of the message is contained in
the intensity, force, demeanour (conduct or behaviour), and sometimes the
gestures of the communicator.
d) The Channel:
The actual means by which the message is transmitted to the receiver (Visual,
auditory, written or some combination of these three) is called the channel. The
channel is the medium through which the message travels.

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f) Decoding:
• Decoding means interpreting what the message means. The extent to which the
decoding by the receiver depends heavily on the individual characteristics of the
sender and receiver.
g) The Receiver:
• The receiver is the object to whom the message is directed. Receiving the message
means one or more of the receiver's senses register the message - for example, hearing
the sound of a supplier's voice over the telephone or seeing the boss give a thumbs-up
signal. Like the sender, the receiver is subject to many influences that can affect the
understanding of the message.
h) Feedback:
• The final link in the communication process is a feedback loop. Feedback, in
effect, is communication travelling in the opposite direction. If the sender pays
attention to the feedback and interprets it accurately, the feedback can help the
sender learn whether the original communication was decoded accurately.

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 CHANNELS OF COMMUNICATION
a) Formal Communication
• Formal communication follows the route formally laid down in the
organization structure. There are three directions in which
communications flow: downward, upward and laterally (horizontal).

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i) Downward Communication
• Downward communication involves a message travelling to one or
more receivers at the lower level in the hierarchy. The message
frequently involves directions or performance feedback

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iii) Horizontal Communication
When takes place among members of the same work group, among members of
work groups at the same level, among managers at the same level or
among any horizontally equivalent personnel, we describe it as lateral
communications. In lateral communication, the sender and receiver(s) are at the
same level in the hierarchy.

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b) Informal Communication or Grapevine

Informal communication, generally associated with interpersonal

communication, was primarily seen as a potential hindrance to effective
organizational performance. This is no longer the case. Informal
communication has become more important to ensuring the effective conduct
of work in modern organizations.

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Any Questions…?

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