Organising

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ORGSNISING “ The grouping of activities necessary to attain objectives , the assignment of each grouping to a manager with authority necessary to supervise it , and the provision for co-ordination horizontally and vertically in the enterprise structure” Koontz and O’Donnel

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Formal Organisation :- Means the intentional structure of roles in a formally organized enterprise. Does not mean it is rigid. If a manager is to organize well, the structure must furnish an environment in which individual performance, both present and future, contributes most effectively to group goals. Be flexible. Utilization of creation talents. For recognition of individual likes & capacities.

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Informal Organisation :- Joint personal activity without conscious joint purpose It is much easier to ask for help on an organization problem from some one you know personally.

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Principle of Span of Management & Factors in effective Span :- Subordinate Training : The training of subordinates Well trained subordinates require not only less of their managers time but also less contact with their managers Clarity of Delegation of Authority : Make effective clarity on inadequate (or) unclear authority delegation It helps to finish the task & get it done with a minimum of the managers time & attention.

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Clarity of Plans : It helps a production supervisor can control more subordinate for largely repetitive operations It helps there will certainly be fewer demands on the superiors time than otherwise. Use of objective standards : Good objective standards, revealing with ease any deviations from plans Enable managers to avoid many time consuming contacts. Direct attention to exceptions at points critical to the successful execution of plans

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Rate of Change : The rate of change is policies can be formulated & the stability of policies maintained. Communication Techniques : Tends to increase a managers span. It sharply reduces the effective span of management & often lowers morale.

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“ Departmentation “ Meaning & Definition :- The process of grouping of similar activities of the business in to department. “A Departmentation is a process of dividing the large monolithic function organisation into small & flexible administrative units “. Departmentation involves grouping of people (or) activities with similar characteristics into a single department of unit.

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Importance of Departmentation :- Increases the operating efficiency of the workers by providing specialisation of work. Helps in fixing the responsibility to various executives of the organisation. Provides the managers an opportunity to take initiative in completing job effectively. By assigning specific tasks to the department personnel.

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Types of Departmentation :- Departmentation by Numbers Departmentation by Time Departmentation by Enterprise Function Departmentation by Geography Departmentation by Customers Departmentation by Equipment (or) Process Departmentation by Product (or) Service

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Departmentation By Numbers :- Depts. Are created on the basis of numer of persons forming the dept. Controlled by supervisor (or) an executive Span Management is used under this type of departmentation

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Departmentation By Time :- Business activities are grouped together on the basis of the time performance. Get the advantages of people specialized to work in a particular shift. Service can be rendered around-the-clock basis Expensive capital equipment can be used effectively. It provides part time work for the students those studying during the day.

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Departmentation By Enterprise Function :- The activities are grouped on the basis of functions which are to be performed. Each dept. head is responsible for the respective departments. It gives rise to specialization which makes man power utilization which makes man power utilization more efficient. It ensures proper performance control. It eliminates costly duplication of efforts. It ensures the performance of all activities necessary for achieving organisation objectives.

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Departmentation By Territory (or) Geography :- The business activities are grouped in area-wise & each area is incharge of a single person. It is specially useful for large scale enterprise which are geographically spread-out such as banking, insurance, transport companies, chain stores (or) a product which is nationally distributed. It reduces the cost of operation and gains saving in time. It provides opportunities to managers to improve their skill in various fields. It facilitates the expansion of business to various regions.

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Departmentation By Process (or) Equipment :- Activities are grouped on the basis of production processes or equipment involved. It is generally used in a manufacturing enterprise and at lower level. It is to achieve efficiency & economy in operation. This dept. uses specialized technology. It provides effective utilization of specialised equipment & special skills There is no duplication of activities.

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Departmentation By Product (or) Service :- The units are formed according to the type of product Grouping of all activities It helps in maximum of personal efficiency of workers It improves coordination of functional activities Provides excellent training ground to managers in general management. The performance of each product division & its contribution to overall results can be easily evaluated.

“ Matrix Organisation “   : 

“ Matrix Organisation “ Definition - “ Stanley Davis & Paul Lawrence “ Said :- Any organisation that employs multiple command structure but also related support mechanism & an associated organisational culture & behaviour pattern. Matrix Organisation It is a hybrid organisational from, containing characteristics of both project and functional structures. It is created by merging of two structures such as Project & Functional structure. In this Matrix, project manager is usually not assigned complete responsibility for resources, instead, he shares them with others in the organisation.

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Focuses resources on a single project which facilitates better planning & control. It permits better utilization of resources. Projects can be completed within specific time It provides motivation to the personnel engaged in the project. A better balance between time, cost & performance can be obtained through the built-in checks. Responsibility for the overall execution management & profit.

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“ Strategic Business Unit “( SBU ) In a large company divisions are created in the form of various strategic business units. It ensure that each product (or) product line would receive the same attention as it would if it were developed, produced & marketed by an independent company.

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SBU meet the following specific criteria to be called as Strategic Business Unit :- Should have its own mission distinct from the missions of other SBU Should have definable group of competitors Should have a proper size, ( ie . Neither too large nor too small )

LINE/STAFF/AUTHORITY & DECENTRALISATION“: 

LINE/STAFF/AUTHORITY & DECENTRALISATION“ “ A U T H O R I T Y “ “Authority is the right to give orders & the power to exact obedience” – Hendry Fayol “ Authority is the power to command other to act or not to act in a manner deemed by the possessor of the authority to further enterprise (or) departmental purposes.

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Features of Authority :- Gives a right to do things is an organisation. Used to achieve organisational objectives (or) goals by doing right things at right time. The extend & limits of authority of a position are defined in advance. Its exercise depends upon the personalising factor of the manager who can use it & on the subordinates with whom it is to be exercise. It can be delegated, A superior can delegate some part of authority to his subordinates. It is the key to managerial position, without this cannot guide (or) direct.

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Sources of Authority :- There are three Theories regarding the sources from which authority orginates , they are, Formal Authority Theory :- Authority flows from top to bottom Also called as “Traditional (or) Top down Authority Theory” It is concentrated at top & it travels downward along with the scalar chain.

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Acceptance Authority Theory :- Authority flows from the superior to subordinates. The range of acceptant of orders by the subordinate without any hesitation is known as ‘Zone of acceptance’

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Competence Theory :- An individual derives authority from his personal competence & popularity. Special knowledge & skills whereas personal authority, is conferred by seniority (or) popularity. Person may get his order accepted by others not because of he is having any formal authority, but because of his personal qualities.

“ A U T H O R I T Y “ : 

“ A U T H O R I T Y “ Authority is the right to command (or) issue orders. Power, is the capacity to influence others. Power, refers to the ability (or) capacity to influence the behaviour (or) attitudes of other individuals. A superiors power may be considered as his ability to cause subordinates to do what the superior wishes them to do.

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5 Basic Types of Power ( By.John . R.P.French & Betram Ravan ) :- Reward Power :- Arises from the ability of the people to great rewards Include salary increment, promotion, favourable, job assignment, praise & recognition.

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Co- ercive Power :- Ability to punish for not complying with orders. Includes demotions, fines & threats of suspension (or) termination Legitimate Power :- Arises from position which is legitimate. The higher a manager is in the hierarchy the greater his legitimate power.

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Referent Power :- Enjoyed by some people because of their integrity, charisma & popularity. A movie star (or) military hero might posses such powers. Expert Power :- Is possessing valued knowledge (or) enjoy such powers.

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“ Line & Staff Concepts “ There are 2 approaches to understand line & staff Concepts. Functional Approach Authority Approach Functional Approach :- Classified into Line & Staff function. Line functions, directly with the attainment of the organisational objectives Staff functions, help line functions in attaining the objectives

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Authority Approach :- Classified into Line & Staff authority Line authority, superiors exercises over his subordinates to carry out orders & instructions ( ie . From Superior to Subordinate) Staff authority, giving advice to line managers to carry on the operation. Line & Staff relationship are establish to guide people in the way they work together.

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Nature of Line Authority :- It has right to decide (or) command. It creates superior subordinate relations. It flows from to p to downward. Provides channel of communication. It makes operating decisions. Bears responsibility for final results.

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Nature of Staff Authority :- It has right to provide advice, assistance & information. It flows in any direction depending upon the situation. It provides ideas for decision. Authority is relatively restricted. It does not bear final responsibility.

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“ Benefits & Limitations of Staff “ Benefits :- Staff improves the quality of managerial decisions by providing accurate & updated information. When the operations become more complex, the line people require advice of staff personnel. Staff carries out critical evaluation of existing practices & procedures and provide innovative ideas from time to time.

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Limitations :- Top management like chief executives gives too much importance & support to the staff personnel. Lack of staff responsibility that staff dept. is only responsible to make advice & they can blame line managers for not properly implementing the plans when it fails. This create ideal situation for shifting blame for mistakes. Managerial problems, like that some times, the lower people may be getting advice from staff manager at the same time get orders from his own line manager. This results in friction between two

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“DELEGATION OF AUTHORITY “ It is a process which enables a person to assign to work to others & delegate them with adequate authority to do it. “ Dougcas C.Basil ” – Delegating considering of granting authority or the right to decision-making in certain defined areas & charging the subordinates with responsibility for carrying through an assigned task.

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Features :- Authorisation to a manager to act in a certain manager. A subordinate receives authority from his superior, but at the same time, his superior still retains all his original authority.

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Importance of Delegation :- It relieves the manager from his heavy workload by dividing the work & share the responsibility. Leads better & quick decision. Helps in maintaining healthy relationship between the executive & his subordinate. To improve job satisfaction, motivation & morale of subordinates.

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“DECENTRALISATION “ It is the end result achieved by the delegation. It implies the relationship between top management & various depts. & sections. The top management exercises only overall control to the departmental heads. It is optional It is both technique & philosophy of management. There cannot be decentralisation without delegation. It reduces burden of the management. It enables the dept. staff members to complete work early.

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Making Decentralisation Effective :- Centralised Top policy :- Ensures the integration of various parts of the organisation into unitary whole Appreciation of concept of decentralisation : Should be given free hand in operational matters & must be responsible for end results. Development of Managers :- The good quality & competent managers should be developed within the organisation.

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Competition among units :- The top management should evaluate the performance of each unit individually by proper standards. Open communication :- The superior should convey policies & procedures to subordinates. Effective Co-operation :- Interdepartmental coordination helps to prevent the danger of fragmentation.

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“STAFFING “ As filling & keeping filled, positions in the organisation structure. Includes identifying work force requirements inventorying the people available & recruiting, selecting, placing promotion appraising & training developing both candidates & current jobholders to accomplish their tasks effectively & efficiently.

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Role of Staffing :- Massive increase in the number of employees. Changing employee roles & values. Increasing the percentage of women employees Effective attainment of organisation goals. Provision of job satisfaction to employee.

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Factors Affecting Staffing :- ‘ External Factors ‘ Political Factors :- These changes in trade unions complicate the task of staffing Economic Factors :- National Income, Per capita income distribution of income & wealth etc. Social Factors :- Social roles, social values, caste structure, occupational structure, social forward & backward sections, religions, culture etc.

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Legal Factors :- Act 1986, provide the restrictions of the recruitment of child labour Customers :- Organisations services are less qualitative in which customers may develop negative attitude towards the organisation.

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‘ Internal Factors ‘ Size of the Organisation :- A small organisation cannot have the same staffing practices which a large organizations may have. Organisational Image :- Training and development, Compensation, incentives & work culture factors are positive, an organisation may be in a better position to attract the candidates and customers

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Technological Factors :- The procurement of skilled employees and their increase in numbers to match the changing job requirements. Changes in Employee roles :- To introduce negotiating machinery to redress grievance To encourage employee participation in decision making. Education :- The well educated employees always challenge and question the management’s decision.

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Staffing and Human Resource Management Staffing is a function of all managers. Personnel dept. which is being changed to human resources dept. Staffing can be equated with HR management as both have the same objectives.

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Manpower Planning :- Manpower planning also known as human resource planning. Manpower planning is a continuous process “ Decenzo & Robbins said” It is the process by which an organisation ensures that it has the right number and kind of people at the right place at the right time, capable of effectively and efficiently completing those tasks that will help the organisation achieve its overall objectives.

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Importance of Manpower Planning :- Determine the future manpower needs in the organisation. To avoid shortage and surplus of human resources. Increase in the size of the business Reduction in labour cost.

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Steps / Process of Manpower Planning :- Forecasting Manpower Needs :- Future manpower requirements should be estimated. The quantity of manpower is estimated on the job specification & job description. Preparing Manpower Inventory :- The size & quality of staff available with in the organisation to man various positions can be estimated by preparing a manpower inventory. Manpower inventory refers to the potential capabilities of present employees-qualitatively and quantitatively.

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Identifying Manpower Gaps :- Manpower forecast and manpower inventory are compared to identify the gaps in work force. Manpower Programme :- Policies and programmes concerning recruitment, selection, training, promotion and transfer are required. To fill the vacant either by promotion or through training.

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“ JOB ANALYSIS “ Job analysis is a detailed study of a job to identify the skills, experience and aptitude required for the job. Job Analysis Job Description Job Specification

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Job Description :- Job description is a written statement showing job title, tasks duties and responsibilities involved in a job Job Specification :- Man or employee specification is a statement of minimum acceptable qualities required in a job incurrent for the effective performance of the job.

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Process of Job Analysis :- Defining uses of job analysis :- It is used for Recruitment and selection Used for limited purposes in small organisation Collection of information :- The relevant information may be collected through a number of methods such as personal observation, interview of the present employees performing similar jobs, checklist prepared for analysing the job and questionnaire.

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Information processing :- It is information processing which involves editing and classifying information into different relevant categories Job Analysis => Job Specification Job Description Uses of Job Analysis :- Employment Training and Development Programmes Performance appraisal Promotion and Transfer Discipline Wage and & Salary Administration Health and Safety Induction

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“ JOB DESIGN “ It is usually broad enough to accommodate peoples needs and desires, It may be especially appropriate to design jobs for exceptional persons in order to utilize their potential. Two important goals of job design are To meet the organisational requirements such as higher productivity, operational, efficiency, quality of product / service etc. To satisfy the needs of the individual employees like interests, challenge, achievement etc.

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Guidelines for Job Designing :- Providing social interaction, views and attitudes with superiors, Subordinates & peers. Providing scope for identifying psychological needs like esteem, need for challenging work etc. and satisfying them. Techniques for designing jobs :- Job Enlargement Job Rotation Job Enrichment

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Job Enlargement :- It is several short tasks which are given to one worker. The scope of the hob is increased. Does not increase the depth of a job. It should be successful, if workers are more satisfied with jobs.

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Job Rotation :- The movement of an employee from the job to another. Improves employee skills. Job Enrichment :- The job itself must provide opportunities for achievement, recognition and responsibility. Employee receives a greater sense of accomplishment as well as more authority and responsibility.

“ RECRUITMENT & SELECTION “ : 

“ RECRUITMENT & SELECTION “ R e c r u i t m e n t :- It is “a process to discover the sources of manpower to meet the requirements of the staffing schedule and to employ effective measures for attracting that manpower in adequate numbers to facilitate effecting selection of an efficient work force”.

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Sources of Recruitment :- Internal Sources Present permanent employees Present temporary/Casual employees Retired Employees Dependents of deceased, disabled, retired and present employees. Merits : Employees economic needs for promotion, higher income can be satisfied Trade unions can be satisfied Employees become loyal to the enterprise Industrial peace is ensured.

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External Sources Educational & Training Institutes Private Employment Agencies Public Employment Exchange Data Banks Casual Applicants Trade Unions Merits : The suitable candidates with knowledge, talent, skill etc. are generally available. Cost of employees can be minimized (placed in minimum pay scale). Latest knowledge, skills & creative talent can be brought into the organisation.

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S e l e c t i o n :- Is the process that enables the enterprise to pick up the candidates with the required qualifications, training and skill for the job after careful screening and rejecting the undesirables at each successive step.

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Selection Procedure : Steps in selection process :- Screening of Applications Received applications Selection Tests Personality test, aptitude test & interest test. Preliminary Interview Short interview used to size up the candidate. Reference Check The persons named by the candidate in the application are contacted to cross check the candidate’s character, performance & behaviour.

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Medical Examination Require physical quality. Final Interview Most essential step in the process. Approved by appropriate authority Recommended for selection by the selection committee . Placement Candidates placed on their jobs.

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Interview :- Interview is the most widely used technique of employee selection employment interviews can be divided into three categories Types of Interview Preliminary Interview :- Exchange of basis information between the candidate and the personnel manager about the job and organisation, like job nature, salary, working conditions, benefits etc.

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a. Informal Interview :- Unemployed candidate meet the personnel manager to enquire about the vacancies in the organisation is an example of informal interview b. Unstructured Interview :- Interviewer also provides information on various subjects required by the candidates.

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Core Interview :- Background Information Interview :- To collect information which is not available in the application. To check the qualification, family, hobbies, likes, dislikes & extra curricular activities. Formal and Structured Interview :- Formalities procedures like time, opening and closing, panel of interviewers intimating the candidates officially etc.

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Stress Interview :- Frequent interruptions, Criticism of the candidates opinions, keeping silence for extended period of time. It assesses the candidates emotional strain. Group Interview :- Candidates may be brought together in the room and they many be interviewed. Panel Interview :- A panel of experts interviews each candidate. Depth Interview :- Knowledge and skills can be examined in this interview.

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Decision Making Interview The interviewers jointly inform their decisions to the top management who finally make the decision of the candidate’s performance and their ranks in the interview

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Tests :- A test is an instrument to measure selected psychological factors. TYPES :- Aptitude Test :- Measuring proficiency on specific jobs & the talent Intelligence Test Measure the capacity for comprehension, reasoning, verbal comprehension, number, memory etc. Psychomotor test Find out physical strength like Proper co-ordination between finger and eye for some operations. Personality test Inter personal skill, dominance, submission, self confidence, leadership ability, patience etc. measured.

“ PERFORMANCE APPRAISAL &CAREER STRATEGY : 

“ PERFORMANCE APPRAISAL &CAREER STRATEGY Performance Appraisal-Introduction :- Appraising the performance of individuals, groups and organisation is common practice of all societies. Evaluate our own actions from time to time. Meaning :- Evaluate not only the performance of worker but also his potential for development. Appraisals are arranged periodically according to a definite plan. Performance appraisal is the employees job relevant strength and weakness.

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Objectives :- To improve the employees performance Work force planning To facilitate fair and equitable compensation based on performance.

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Essentials of Effective Appraisal :- Before an appraisal system the objectives should be communicated to all the employees. The objectives may be promotion, pay increase, training & development. Cordial relationship is essential between superiors and subordinates The rating should be discussed with the person concerned, this will help him to know his strengths & weakness. Follow up is important for effective appraisal

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Methods of Performance Appraisal :- Trait-based appraisal (means qualities) Job knowledge Leadership Analytical competence Judgement Ability Initiative Loyalty Appraisal by results MBO Assessment Centres

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Appraisal Process :- Performance standards are established based on job The standards are informed all the employees and appraisers. Performance can be measured through observations, records and reports. The measured performance may be adjusted according to the influence of external and internal factors. Comparing the actual performance & previous performance of employees Comparing the actual performance with the standards and finding out the deviations. Discuss the reason for positive or negative deviations Follow up the performance appraisal report.

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Significance of Appraisal :- Promotions, transfers, demotions of employees on the basis of appraisal. Wages and salaries may be fixed on the basis of appraisal Appraisal motivates the employees in positive ways

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MANAGER&ORGANISATION DEVELOPMENT“ Roles of a Manager :- Inter-Personal Role :- Head of the Organisation’ Liaison (interacts with outside of the organisation) Leader

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Informational Role :- Monitor (interacts with outside organisation giving & receiving information) Disseminator ( Transmits information gathered by him) Spokes Person (Talks with trade union)

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Decisional Role :- Entrepreneur (Initials and supervises design of organisations improvement) Disturbance handler (Responsible for meeting unexpected problems, disturbance,threats ) Resource Allocator (responsible for allocation of money, material& HR) Negotiation (representing the organisation in bargaining & negotiations.)

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Skills Needed By Manager :- Analytical Skill Solving abilities skill Personal Characteristics Needed By Manager :- Leadership Communication skill Honesty Self Confidence Monitoring and control

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“REWARDS AND STRESS OF MANAGERS“ Rewards of Manager :- Managers differ widely in age, economic position, skill, maturity but these include opportunity, power and income. Most manager give full effort to attain their organisation goal. Generally financial measures such as customer satisfaction, involvement of employees and product quality.

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Stress in Managers :- Stress is very complex phenomenon Any external action, situation or event that places excessive psychological or physical demands on a person. Physical Sources of Stress:- Work overload Loss of sleep Loud noises

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Psychological sources of stress:- Boring job Lack of autonomy Role conflict Effect of stress Accidents Absenteeism Labour turn over Methods for reduction of stress Healthful nutrition Relaxation Recreation facilities

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“ TRAINING AND DEVELOPMENT “ “Training is the act of increasing the knowledge and skills of an employee for doing a particular job” Development means all round improvement in the job performance, personality growth in proficiency, advancement and progress in all other personality traits.

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Need for training :- Training is necessary to make employee mobile and versatile. Training provides a sense of security and self confidence to employees Training develops new skill to the employees Change in technology Organisational complexity Human relations

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Importance of Training :- Training makes employees to become loyal to an organisation. Training provides organisational stability and flexibility. It reduces accidents, thereby reducing supervision time

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Principles of Training :- Motivation Progressive Information Reinforcement Practice Full Vs Part Individual Differences

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Training Methods:- On the Job Training Method :- Job Rotation Apprenticeship and coaching Committee assignments Experience Temporary Promotions

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Off the Job Training Method :- Lecture Conference and seminars Role Playing Case Studies Programmed Instructions Business game In basket method Sensitivity training

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Areas of Training :- Company policies and procedures Training in specific skills Human Relations Training Problem Solving Training Managerial and Supervisory Training Apprentice Training

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Steps in Training Programme :- Preparing the instructor Preparing the trainee Getting ready to teach Presenting the operation Try out the Trainee’s Performance Follow up

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“ ORGANISATIONAL CHANGE “ The term change refers to an alteration in a system whether physical biological or social. Factors influencing organisation change External Factors : Technological Social Political Internal Factors : Change in managerial personnel Deficiency in Existing organisation

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Process of change :- Unfreezing : Creates motivation for change Moving : Proposed changes are introduced systematically and gradually Refreezing : Stabilizes the change. Resistance to change :- Fear of job Fear of demotion Pressure peers Fear of unknown

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Overcoming resistance to change :- Communication Co-operation Incentives Involvement Management support Punishments

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“ MANAGERAL EFFECTIVENESS /ORGANISATIONAL CHANGE “ Definition :- “Conflict is a process in which an effort is purposefully made by one person or unit to block another that results in frustrating the attainment of others goals or the furthering of his or her interests. Source of conflict :- Complex organisation structure Scarcity or Resources Superior’s style Conflict die to change Lack of communication

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Types of conflict :- Role Conflict Set of expectations people have about the behaviour of a person. It is an expected mode of behaviour Refers how a specific person in a role category actually behaves.

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Goal Conflict Occurs at individual level where an individual faces the problem of choosing among two or more goals. Interpersonal Conflict Between two members of the same group of the same organisation Methods, procedures & numerous problems can contribute to interpersonal conflict

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“ ORGANISATION DEVELOPMENT (OD) “ Introduction :- OD is attempting to change the behavioural attitudes and performance of the total organisation. Characteristics of O.D. :- OD has a planned process OD is a dynamic process OD is educative strategy

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Role of O.D. :- OD provides better management from to p to bottom OD provides opportunities of personal growth and development OD keeps the organisation healthy The role of managers play in developing the maturity level of their people is extremely important.Too often managers do not take responsibility for the performance of their people,especially of they are not doing well.managers are responsible for making their people ‘Winners’