DEPARTMENT OF CIVIL ENGINEERING

BHILAI INSTITUTE OF TECHNOLOGY

An Autonomous Institution | NBA Accredited | ISO Certified
‗A‘ Grade NAAC Accredited | NIRF 2020 RANK-BAND:251-300

UNIT – III Organizing

CO3: Demonstrate proficiency in organizing resources to achieve optimal
Performance.
 Nature and purpose of Organizing,
 Formal and informal organization, organization structure,
 Types: line and staff authority,
 Departmentalization,
 Delegation of authority,
 Centralization and decentralization,
 Job design,
 Human resource management, planning, Recruitment selection,
 Training & Development,
 Performance Management,
 Planning & Management.
DEFINITION

According to Koontz and O'Donnell, "Organization involves the grouping of activities

necessary to accomplish goals and plans, the assignment of these activities to appropriate
departments and the provision of authority, delegation and co-ordination."

Organization involves division of work among people whose efforts must be co-ordinated to
achieve specific objectives and to implement pre-determined strategies.

NATURE OR CHARACTERISTICS OF ORGANIZATON

From the study of the various definitions given by different management experts we get the
following information about the characteristics or nature of organization,

(1) Division of Work: Division of work is the basis of an organization. In other words, there
can be no organization without division of work. Under division of work the entire work of
business is divided into many departments .The work of every department is further sub-
divided into sub-works. In this way each individual has to do the saran work repeatedly
which gradually makes that person an expert.
(2) Coordination: Under organizing different persons are assigned different works but the
aim of all these persons happens to be the some - the attainment of the objectives of the
enterprise. Organization ensures that the work of all the persons depends on each
other‘s work even though it happens to be different. The work of one person starts from
where the work of another person ends. The non-completion of the work of one person
affects the work of everybody. Therefore, everybody completes his work in time and
does not hinder the work of others. It is thus, clear that it is in the nature of an

_ _
Subject: Principles of Management Course Code: 100703MG
Course Instructor: Mrs. Sarita Tiwari Class: B.Tech IV Year 4 Sem Civil
 DEPARTMENT OF CIVIL ENGINEERING
BHILAI INSTITUTE OF TECHNOLOGY
An Autonomous Institution | NBA Accredited | ISO Certified
‗A‘ Grade NAAC Accredited | NIRF 2020 RANK-BAND:251-300
organization to establish coordination among different works, departments and posts in
the enterprise.
(3) Plurality of Persons: Organization is a group of many persons who assemble to fulfill
a common purpose. A single individual cannot create an organization.
(4) Common Objectives: There are various parts of an organization with different
functions to perform but all move in the direction of achieving a general objective.
(5) Well-defined Authority and Responsibility: Under organization a chain is
established between different posts right from the top to the bottom. It is clearly specified
as to what will be the authority and responsibility of every post. In other words, every
individual working in the organization is given some authority for the efficient work
performance and it is also decided simultaneously as to what will be the responsibility of
that individual in case of unsatisfactory work performance.
(6) Organization is a Structure of Relationship: Relationship between persons working
on different posts in the organization is decided. In other words, it is decided as to who
will be the superior and who will be the subordinate. Leaving the top level post and the
lowest level post everybody is somebody's superior and somebody's subordinate. The
person working on the top level post has no superior and the person working on the
lowest level post has no subordinate.
(7) Organization is a Machine of Management: Organization is considered to be a
machine of management because the efficiency of all the functions depends on an
effective organization. In the absence of organization no function can be performed in a
planned manner. It is appropriate to call organization a machine of management from
another point of view. It is that machine in which no part can afford tube ill-fitting or non-
functional. In other words, if the division of work is not done properly or posts are not
created correctly the whole system of management collapses.
(8) Organization is a Universal Process: Organization is needed both in business and
non-business organizations. Not only this, organization will be needed where two or
mom than two people work jointly. Therefore, organization has the quality of universality.
(9) Organization is a Dynamic Process: Organization is related to people and the
knowledge and experience of the people undergo a change. The impact of this change
affects the various functions of the organizations. Thus, organization is not a process
that can be decided for all times to come but it undergoes changes according to the
needs. The example in this case can be the creation or abolition of a new post according
to the need.

FORMAL ORGANISATION In every organisation, employees are guided by rules,

policies, and procedures, and the structure of jobs and positions of employees are
clearly defined for achieving smooth functioning of the organisation. Such a structure is
known as Formal Organisation. In a formal organisation, the position, responsibility,
authority and accountability of each and every employee is defined for achieving
organisational goals. It is stable, rigid and coordinates the effort of every department.

_ _
Subject: Principles of Management Course Code: 100703MG
Course Instructor: Mrs. Sarita Tiwari Class: B.Tech IV Year 4 Sem Civil
 DEPARTMENT OF CIVIL ENGINEERING
BHILAI INSTITUTE OF TECHNOLOGY
An Autonomous Institution | NBA Accredited | ISO Certified
‗A‘ Grade NAAC Accredited | NIRF 2020 RANK-BAND:251-300

INFORMAL ORGANISATION
Interaction amongst employees at the
workplace gives rise to networks of
informal communication and employees cut
the official channels and form their own
social groups, which are known as Informal
Organisations. Such informal organisations
emerge from within the formal organisation.
It arises out of frequent contact of people
with each other based on common
interests. It has no definite structure as it
comprises a network of social
relationships. It has no specific direction for
the flow of information and is flexible. It is helpful in faster communication and fulfils the
social needs of employees at the workplace.

Difference between Formal and Informal Organisation:

Basis Formal Organisation Informal Organisation

The structure of jobs and The network of social
Meaning positions, which is created by relationships arising out of
management interaction among employees
Formed deliberately as a part of It is not formed deliberately and
Formation
the organisation‘s rules &policy. is a result of social interaction.
Authority arises by virtue of Authority arises out of personal
Authority
position in management. qualities.
Behaviour is prescribed by the There is no set pattern for
Behaviour
managers. behaviour.
Communication takes place
Flow of Communication takes place
through informal channels having
Communication through formal channels only.
no fixed path.
Nature It is rigid in nature. It is flexible in nature.
Person with maximum authority Person with greater acceptance
Leadership
is the leader. in the group is the leader.
Authority flows from top to Authority can flow in all the
Flow of Authority
bottom. direction.
It is relatively less stable as
It is more stable as it exists till the
Stability employees can change their
survival of the organisation.
social group.
It is created to work
It is created to provide social
Purpose systematically and achieve
satisfaction to employees.
organisational goals.

_ _
Subject: Principles of Management Course Code: 100703MG
Course Instructor: Mrs. Sarita Tiwari Class: B.Tech IV Year 4 Sem Civil
 DEPARTMENT OF CIVIL ENGINEERING
BHILAI INSTITUTE OF TECHNOLOGY
An Autonomous Institution | NBA Accredited | ISO Certified
‗A‘ Grade NAAC Accredited | NIRF 2020 RANK-BAND:251-300

Advantages of Formal Organizational Structures

The primary advantage of a formal organizational structure is that

 It clearly delineates the roles and responsibilities of every employee, from the top
level to a staff member. As a result, everyone in your company knows what they
have to do and how they‘re supposed to achieve desired goals.

 The formal chain of command also keeps work processes under your control,
because there is an established method of decision-making and implementation of
your directives.

Advantages of Informal Organizational Structures

The major advantage of an informal organizational structure is that

 It‘s highly adaptable to change. If your business must respond to external

influences that demand an organizational shift, an informal structure is fluid enough
for you to make that change quickly and efficiently.

Disadvantages of Formal Structures

The main disadvantage of a formal organizational structure is that

 Decisions take a long time to move down management levels to the rank-and-file,
and there is often a disconnect between executives and staff employees because
they don‘t interact very often.

Disadvantages of in Formal Structures

The primary disadvantage of an informal organizational structure is that

 Things can become too informal, which can lead to disorganization, confusion and
misinterpreted communication.

 Business lacks a centralized management structure; employees may take

advantage of that freedom to make decisions that are not well thought out.

_ _
Subject: Principles of Management Course Code: 100703MG
Course Instructor: Mrs. Sarita Tiwari Class: B.Tech IV Year 4 Sem Civil
 DEPARTMENT OF CIVIL ENGINEERING
BHILAI INSTITUTE OF TECHNOLOGY
An Autonomous Institution | NBA Accredited | ISO Certified
‗A‘ Grade NAAC Accredited | NIRF 2020 RANK-BAND:251-300

TYPES OF FORMAL STRUCTURE

 Line Organization
 Functional Organization
 Line and Staff Organization
 Matrix Organization
 Project Management Organization

On the other hand, for a long time, market strategists have recognized that the ―informal
organization‖ has a significant impact on the loss of a company. There are no fixed means of
contact in an informal organization, since members can easily communicate with one
another and they collaborate in their personal capacities rather than on a technical level.

_ _
Subject: Principles of Management Course Code: 100703MG
Course Instructor: Mrs. Sarita Tiwari Class: B.Tech IV Year 4 Sem Civil
 DEPARTMENT OF CIVIL ENGINEERING
BHILAI INSTITUTE OF TECHNOLOGY
An Autonomous Institution | NBA Accredited | ISO Certified
‗A‘ Grade NAAC Accredited | NIRF 2020 RANK-BAND:251-300

DEPARTMENTALIZATION OR DEPARTMENTATION
the process of a logical grouping of similar nature functions into manageable units called
departments on the basis of their nature and area specialization for the purpose of overall
coordination of organizational resources.

Departmentation creates some independent functional units in the organization. It helps to

increase the smoothness and working efficiency of the organization.

In an organization, many people perform various activities in different situations. The task‘s
nature, process, and procedures may vary. It is not possible to perform all types of work at a
time and also in a group. It is essential to classify activities into different units.

Departmentation divides large and complex functions into smaller and flexible units to
accomplish all the jobs in an effective and efficient manner. Departmentalization is the
means of dividing a large and monolithic functional organization into smaller, flexible, and
administrative units – Louis A. Allen.

OBJECTIVES OF DEPARTMENTALIZATION:

 Maintaining control
 Simplifying operational processes
 Grouping specialized activities together
 Increasing overall efficiency
 Ensuring responsibility and accountability

_ _
Subject: Principles of Management Course Code: 100703MG
Course Instructor: Mrs. Sarita Tiwari Class: B.Tech IV Year 4 Sem Civil
 DEPARTMENT OF CIVIL ENGINEERING
BHILAI INSTITUTE OF TECHNOLOGY
An Autonomous Institution | NBA Accredited | ISO Certified
‗A‘ Grade NAAC Accredited | NIRF 2020 RANK-BAND:251-300
Type of
Departmentalizati Description Advantages Disadvantages
on

Increased efficiency
and expertise because
all related activities are
Departments are performed by the
Increase in bureaucratic
organized based on their same group of people
decision-making; slow
roles within the in the same location;
adaption to change;
organization. For encourages tight
limits the development
Functional example, a company may control for upper level
of management;
have sales, marketing, management; allows
potentially leads to
accounting, production, for a logical use of
functions; each overspecialization in
and human resources
department can some employees.
departments.
become more highly
specialized and
experienced over time.

Departments are Develops employees

Limited communication
organized by a product with high specialization
between departments
line, accounting for the and expertise towards
of related products;
control of all aspects of a specific type or line
presence of repeated
that product. For example, of product; ensures the
Product or process tasks or skills within the
the mascara department development of high
same department;
may include the functions quality products;
unsuitability for smaller
of development, provides better control
production, marketing, of production and organizations with few
sales, and distribution. distribution. products.

Ensures that goals and

visions are aligned Isolation between
Departments are
with the political, departments due to
organized by their location
social, and cultural distance or differences
along geographic lines,
needs of a region; in political, social, or
such as by region
provides opportunities cultural needs; potential
(Europe, Asia,
Geographic for upper level for conflict or
Northeastern U.S.).
management training competition between
Geographic
where expertise and regional managers;
departmentalization is
specialization is duplication of functions
usually used by
needed; better within departments or
multinational corporations.
addressment of between departments.
regional issues.

Allows employees to
Limits the view of
specialize in
organizational goals
developing products to
Departments are such as growth overall;
serve the needs of a
organized according to may lead to the
specific client, class, or
customer types, such as duplication of similar
market; the needs of
by the needs of functions within a
Customer or market customers can be met
consumer, business, and department or
or addressed more
government clients. Each organization; may lead
directly; the
type of customer typically to the under-utilization
organization may
has different needs. of facilities, resources,
maintain a closer
or the abiltiies of
relationship with
workers.
clients.

_ _
Subject: Principles of Management Course Code: 100703MG
Course Instructor: Mrs. Sarita Tiwari Class: B.Tech IV Year 4 Sem Civil
 DEPARTMENT OF CIVIL ENGINEERING
BHILAI INSTITUTE OF TECHNOLOGY
An Autonomous Institution | NBA Accredited | ISO Certified
‗A‘ Grade NAAC Accredited | NIRF 2020 RANK-BAND:251-300

DELEGATION OF AUTHORITY
The procedure of distributing tasks or responsibilities with their associated decisions to a
subordinate employee on a temporary or long-term basis is delegation of authority.
All medium and large corporations have a hierarchy of positions. Usually, the managing
director or chief executive officer holds the overall responsibility for the daily operations.
However, it is not feasible to expect them to perform all the tasks of the organisation
themselves. So, leaders assign the work along with the responsibilities and authority to
make decisions to their employees. However, delegation always takes place top-down, and
juniors cannot pass tasks on to their seniors.
In a successful company, success is an outcome of shared authority and responsibility,
which allows the company to run in an organised manner. Delegation also promotes the
development of employees and improves their decision-making abilities by enabling them to
demonstrate their accountability and troubleshooting skills. It is the first step in recognising
the potential in your employees to shoulder the responsibility of promotion, thus helping
them to achieve their career goals.
Moreover, delegation of authority doesn't just benefit junior employees. Sometimes,
managerial staff can get overburdened with essential activities. In such cases, they may
assign some tasks to other employees on a short-term basis to save time. However, they are
still accountable to their own superiors.

ELEMENTS OF DELEGATION:
1. Authority 2. Responsibility 3. Accountability

HOW TO DELEGATE AUTHORITY EFFECTIVELY

Once you have decided to hand over some of your assignments, use the following steps to
make sure that the job is completed according to your satisfaction:
1. Prepare a plan. The first step in delegating authority is to divide a big project into
smaller, achievable tasks. Then, review the workforce and time constraints.
Determine which tasks are appropriate for the employees within the team. To select
the best candidate for handling those responsibilities, consider the qualifications,
experience, past performance and any training history. Distribute the assignments by
utilizing suitable communication channels. You can either use email or conduct a
meeting for this purpose. Explain to your team members why you chose them for
those specific tasks.
2. Provide clear instructions Make your expectations clear from the beginning. Set
the deadlines, milestones and furnish all details of the expected results. This
information has to be completely unambiguous to avoid misunderstandings in the
future. Before your teammates begin on their assignments, conduct a question and
answer round to clarify doubts and provide any missing information.

_ _
Subject: Principles of Management Course Code: 100703MG
Course Instructor: Mrs. Sarita Tiwari Class: B.Tech IV Year 4 Sem Civil
 DEPARTMENT OF CIVIL ENGINEERING
BHILAI INSTITUTE OF TECHNOLOGY
An Autonomous Institution | NBA Accredited | ISO Certified
‗A‘ Grade NAAC Accredited | NIRF 2020 RANK-BAND:251-300

3. Grant proper authorization Some processes require adequate permissions and

decision-making power. For example, suppose your acquisition manager wishes to
procure raw materials to perform a certain duty. To be able to do that, the manager
needs to know your suppliers. Additionally, they should have the authority to
negotiate the prices and arrange for the delivery. Hence, granting proper and timely
authorisation is extremely important.
4. Follow up on tasks However; autonomy can backfire at times when employees end
up making wrong decisions. Ensure that the job is proceeding according to your
expectations by asking for periodic updates. The employees should be required to
report to you regularly so that you can solve any issues. Also, make sure you have
some contingency plans in place in case something goes wrong.
5. Analyse the results and provide feedback Good leadership requires scouting for
potential candidates who can take your place once you've moved on to other roles. A
great way to do this is by analysing the results of delegated tasks to gauge the
effectiveness of your team members. If you are particularly satisfied with an
employee's performance, you can train them to handle more responsibilities.
Conversely, provide constructive feedback to those who need improvement and
avoid delegating further tasks until your next evaluation. Creating such a culture of
support helps you build a fully functional team.

THE PRINCIPLES OF DELEGATION

There are certain risks involved in handing over responsibilities. These risks are directly
proportional to the scope of the project. A decision made by a lower-level employee may
cause critical problems in the project or affect other departments in a chain reaction. As t he
scope of the project increases, the time and costs involved in reversing such incorrect
decisions rise exponentially and may lead to expensive write-offs.
There are seven principles of delegation of authority that help to minimise such occurrences
and which should be a part of the risk planning process:
1. The scalar principle: This management rule states that all employees must follow
the chain of command within an organisation. They should report to their respective
line managers and be aware that only their immediate superiors are authorised to
delegate duties.
2. Principle of defining function: Subordinates should know the detailed requirements
of the assignment and its impact on other jobs in the department. These
requirements include the process, the exact nature of the task and any sub-tasks or
activities involved.
3. Principle of delegation by expected results: Effective delegation also depends on
clarity in expectations. The manager should define the results and the metrics for
assessing the quality of work clearly, which serves two purposes. It becomes easier
to decide whom to delegate the tasks to, and employees are fully aware of what's
expected of them. If you want your team members to do no more or less than what is
asked of them, clarify that right at the beginning. There shouldn't be any confusion in
4.
_ _
Subject: Principles of Management Course Code: 100703MG
Course Instructor: Mrs. Sarita Tiwari Class: B.Tech IV Year 4 Sem Civil
 DEPARTMENT OF CIVIL ENGINEERING
BHILAI INSTITUTE OF TECHNOLOGY
An Autonomous Institution | NBA Accredited | ISO Certified
‗A‘ Grade NAAC Accredited | NIRF 2020 RANK-BAND:251-300

the minds of employees regarding when to make decisions independently and when
to approach seniors.
5. Principle of unity of command: Different managers have their own leadership
styles. Any employee should have to turn to only one line manager for performance
evaluation, solution to problems and final reporting. In some cases, an employee has
to follow the instructions of more than one senior, which can create confusion.
Furthermore, it has a chance of damaging the professional relationship and causing
division of loyalty.
6. Principle of balance in authority and responsibility: Responsibility and power go
hand-in-hand. A person without authority may not be able to carry out the necessary
obligations. Conversely, too much autonomy can lead to abuse of power. So, it
should be clear to everyone that while accepting any delegated task, it is their
responsibility to perform according to expectations within the purview of the authority
granted to them.
7. Principle of authority level: Some managers may find it difficult to relinquish
control. A few tend to micromanage, while others fear adverse outcomes. But if they
always make the decisions for their juniors, they will never create worthy successors.
Allowing employees to make their own decisions within the limits of their authority
inspires confidence and trust. If there are any doubts, or if the progress is not
satisfactory, communicating this problem with juniors and advising corrective
measures helps to set them on the right course again.
8. Principle of absolute responsibility: A junior employee is completely answerable
to their immediate superior when accepting tasks and responsibilities. However, the
manager remains responsible for the smooth operation of the project.

CENTRALIZATION AND DECENTRALIZATION

Centralization and Decentralization are two modes of working in any organization. In
centralization, there is a hierarchy of formal authority for making all the important decision for
the organization.
And in decentralization decision making is left for the lower level of organization.
A simple way to understand if an organization is working in a centralized or decentralized
manner is by looking at two important aspects:
1. The place of the decision-making authority in the hierarchy of the management i.e.
Centralized.
2. The degree of decision-making power at the lower echelons in the organization i.e.
Decentralized.

Advantages of Centralization
 The organization can strictly enforce uniformity of procedures and policies.
 It can help in the elimination of overlapping or duplicate activities and save
costs.

_ _
Subject: Principles of Management Course Code: 100703MG
Course Instructor: Mrs. Sarita Tiwari Class: B.Tech IV Year 4 Sem Civil
 DEPARTMENT OF CIVIL ENGINEERING
BHILAI INSTITUTE OF TECHNOLOGY
An Autonomous Institution | NBA Accredited | ISO Certified
‗A‘ Grade NAAC Accredited | NIRF 2020 RANK-BAND:251-300

 The organization has a better chance of utilizing the potential of its outstanding
employees.
 It offers a better control over the activities of the organization by ensuring
consistency in operations and uniformity in decision-making.

Advantages of Decentralization
 Faster decision-making and better quality of decisions
 Improves the effectively of managers.
 Offers a democratic environment where employees can have a say in their governance.
 Provides good exposure to mid and lower-level managers and creates a pool of
promotable manpower with managerial skills.
 Since managers can see the results of their own actions, they are more driven and
have improved morales.
DIFFERENCE BETWEEN CENTRALIZATION AND DECENTRALIZATION:

Basis Centralization Decentralization

The evenly and systematic

The concentration of authority
Meaning distribution of authority at all
at the top level
levels
There is no delegation of
There is a systematic
Delegation of authority as all the authority for
delegation of authority at all
authority taking decisions is vested in the
levels.
hands of top-level management.
It is suitable for small It is suitable for large
Suitability
organisations. organisations.
There is no freedom of There is freedom of decision-
Freedom of
decision-making at the middle making at all levels of
decision making
and lower level. management.
There is a vertical flow of There is an open and free flow
Flow of Information
information. of information.
Employee Employees are demotivated as Employees are motivated as
Motivation compared to decentralization. compared to centralization.
There are least chances of any There are chances of conflict in
Conflict in Decision conflict in decision as only top- decision as many people are
level management is involved. involved.
The burden of work is not
The burden of work is shared
Burden shared and only one group
amongst all levels.
carries the burden.

_ _
Subject: Principles of Management Course Code: 100703MG
Course Instructor: Mrs. Sarita Tiwari Class: B.Tech IV Year 4 Sem Civil
 DEPARTMENT OF CIVIL ENGINEERING
BHILAI INSTITUTE OF TECHNOLOGY
An Autonomous Institution | NBA Accredited | ISO Certified
‗A‘ Grade NAAC Accredited | NIRF 2020 RANK-BAND:251-300

Centralization obtains consistent methods and activities and uses closer powers to
work units. It can successfully handle the crisis immediately. Decentralization
guarantees the dynamic work of the staff and stimulates their enthusiasm. The true
realization of joint relies on a reasonable combination of centralization and
decentralization. Therefore, a legitimate blend of the two is required.
Centralization and decentralization are tangled points. Nor is it a reliable and correct
arrangement. It requires careful planning; and, most importantly, listen to your
clients.

JOB DESIGN
Job design is a process that companies use to create a new job or add duties to an
existing job. This allows a company to more easily reach its goals by having more
employees perform more tasks within the organization. Job design may involve
developing a new position or simply adjusting the set of tasks that a current position
encompasses. For example, a company may add duties to a graphic design position
that extend slightly beyond design work. It essentially entails integrating necessary
duties and qualifications to perform a particular task or project for increased value
and maximized performance.
Job design can help managers determine the following:
 How an employee completes tasks
 The tasks an employee must be able to perform
 The order in which the employee needs to complete the tasks

IMPORTANCE OF JOB DESIGN

There are several reasons why job design is important and how it can help
businesses and managers, with some of these including:
 Align businesses with employees: Successful job design can help align
both business and employee values. This can result in decreased turnover
and also helps promote increased productivity.
 Secure a competitive advantage: The expectations and the landscape for
work are ever-evolving, and regular job design allows companies to stay up- to-
date on these changes to attract top talent. It can also give current employees
the chance to succeed in their positions and enhance their overall
competencies.
 Increase employee motivation: Roles and responsibilities constructed in a
well-designed manner can help increase motivation and reduce job duty
confusion.

_ _
Subject: Principles of Management Course Code: 100703MG
Course Instructor: Mrs. Sarita Tiwari Class: B.Tech IV Year 4 Sem Civil
 DEPARTMENT OF CIVIL ENGINEERING
BHILAI INSTITUTE OF TECHNOLOGY
An Autonomous Institution | NBA Accredited | ISO Certified
‗A‘ Grade NAAC Accredited | NIRF 2020 RANK-BAND:251-300

Job design also impacts administrative factors, such as:

 Machine or task pacing: This helps employees stay on task and complete duties on
time.
 Job enlargement: This includes adding more tasks to a job to help the job expand
into a broader position that covers more duties.
 Repetitiveness: Making sure tasks aren't repetitive can keep employee motivation
and morale up.
 Defined work process: Ensuring employees are aware of the details of their work
process helps reduce confusion.

JOB DESIGN STRATEGIES

The following are examples of job design strategies in the workplace to increase productivity
and efficiency:

Job simplification
Job simplification is when managers
remove tasks rather than adding them.
While this may seem like the opposite of
job design, it can actually help narrow a
role to a specific task or set of tasks.
Professionals often use this approach
when a position has become too enlarged
and is unmanageable.

_ _
Subject: Principles of Management Course Code: 100703MG
Course Instructor: Mrs. Sarita Tiwari Class: B.Tech IV Year 4 Sem Civil
 DEPARTMENT OF CIVIL ENGINEERING
BHILAI INSTITUTE OF TECHNOLOGY
An Autonomous Institution | NBA Accredited | ISO Certified
‗A‘ Grade NAAC Accredited | NIRF 2020 RANK-BAND:251-300

Job rotation
Job rotation is when a company moves employees between jobs. This type of job design
helps employees expand their skills and learn through different experiences they otherwise
wouldn't have. Job rotations can help increase the flexibility of employees, while also
allowing them to complete additional duties as needed.

Job enrichment
Job enrichment is when a manager or company adds motivational factors to an established
job. A manager may provide employees with additional feedback or they might create natural
work units, which is when the manager groups together tasks for increased efficiency and
task identity. For example, a manager may group together a graphic designer's work to
include similar tasks, such as back-end coding, to increase efficiency.

Job enlargement
Job enlargement is when a manager adds tasks within a single position, giving the employee
the opportunity to expand their knowledge and skills. It can also help reduce monotony and
gives employees the chance to take on additional responsibilities. For example, an architect
who only works on designing restaurants may also become involved in bridge design.

5 COMPONENTS OF JOB DESIGN

Some managers rely on a style of job design that emphasizes five key job characteristics
when creating or recreating a position. Using these characteristics can help increase
employee satisfaction and motivation within a new role or when receiving extra
responsibilities. The five characteristics include:
Skill variety: This refers to how many skills a specific job requires. Positions that have a
larger skill variety are more likely to positively challenge employees and encourage them to
gain more competence in specific areas.
Feedback: Feedback is the information that employees receive in relation to their
effectiveness within a role. Feedback comes from both the work itself and external factors,
such as customer satisfaction.
Task identity: Task identity refers to whether a person completes an entire piece of work or
contributes to only a piece of it. Jobs that allow employees to complete whole pieces of work
or objectives are often more rewarding for employees than participating in only a part of it.
Autonomy: Autonomy is how much freedom and independence an employee has in their
position. Increased autonomy may lead to the employee feeling more responsible for their
tasks.

Task significance: Task significance refers to how the job may impact others within or
outside the company. When an employee feels their work affects others, they may feel more
motivated and satisfied within their role.

_ _
Subject: Principles of Management Course Code: 100703MG
Course Instructor: Mrs. Sarita Tiwari Class: B.Tech IV Year 4 Sem Civil
 DEPARTMENT OF CIVIL ENGINEERING
BHILAI INSTITUTE OF TECHNOLOGY
An Autonomous Institution | NBA Accredited | ISO Certified
‗A‘ Grade NAAC Accredited | NIRF 2020 RANK-BAND:251-300

_ _
Subject: Principles of Management Course Code: 100703MG
Course Instructor: Mrs. Sarita Tiwari Class: B.Tech IV Year 4 Sem Civil
 DEPARTMENT OF CIVIL ENGINEERING
BHILAI INSTITUTE OF TECHNOLOGY
An Autonomous Institution | NBA Accredited | ISO Certified
‗A‘ Grade NAAC Accredited | NIRF 2020 RANK-BAND:251-300

HUMAN RESOURCE MANAGEMENT (HRM)

Definition: Human resource management is organizing, coordinating, and managing
an organization's current employees to carry out an organization‘s mission, vision, and
goals. This includes recruiting, hiring, training, compensating, retaining, and motivating
employees.

HRM staff also develops and enforces policies and procedures that help ensure
employee safety. The HRM team manages adherence to federal and state laws that
may work to protect employees‘ private information and ensure their physical safety
and mental and emotional well-being. Organizations of varying sizes and industries
rely on HRM to keep business running smoothly and efficiently.

Purpose of human resource management (HRM)

The methodology behind HRM recognizes the value employees bring to an

organization, also known as human capital. Investing in employees and strategically
supporting their needs can improve employee satisfaction and employee
motivation. Employees who are well trained, competent, valued, and supported by
their employers will likely have the skills and incentive necessary to carry out the
organization‘s goals.

_ _
Subject: Principles of Management Course Code: 100703MG
Course Instructor: Mrs. Sarita Tiwari Class: B.Tech IV Year 4 Sem Civil
 DEPARTMENT OF CIVIL ENGINEERING
BHILAI INSTITUTE OF TECHNOLOGY
An Autonomous Institution | NBA Accredited | ISO Certified
‗A‘ Grade NAAC Accredited | NIRF 2020 RANK-BAND:251-300

Develop employees' skills.

HRM aims to create a highly skilled workforce and boost confidence and competence
so that employees are motivated to contribute. A human resource manager or
department might provide:

 Tuition reimbursement programs

 On-the-job training

 Mentorships within an organization

 Career development programs to help employees explore their potential

Foster a productive workplace culture.

HRM has a strong focus on company culture and job satisfaction. Much of what
motivates employees comes from the culture in which they work. Employee
engagement programs can foster an inclusive and collaborative workplace culture.
Although culture can be challenging to measure and quantify, it‘s an important function
of HRM to retain and recruit employees.

Protect employees.

HRM also protects employees. Human resource (HR) professionals manage legal
documents, policies, and regulations, identify what applies to their organization, and
find effective ways to educate employees and enforce company policy. HRM aims to
be an ally or partner to employees. HRM emphasizes employee development while
protecting employees from discrimination, workplace hazards, and unfair
compensation.

Basic elements of Human Resource Management (HRM)

The human resource management field includes recruiting new hires, evaluating
employee performance, ensuring fair compensation and benefits, training employees
and supporting education and development, and protecting the health and safety of all
employees. These are critical cornerstones of the work of HRM professionals. From
crafting a job posting to providing continuing education options, HRM functions at all
stages of an employee's journey with an organization. To be an effective HRM
professional, you will need a mix of personal and technical skills like recruitment
strategies, creating compensation plans, and communication and team building.

_ _
Subject: Principles of Management Course Code: 100703MG
Course Instructor: Mrs. Sarita Tiwari Class: B.Tech IV Year 4 Sem Civil
 DEPARTMENT OF CIVIL ENGINEERING
BHILAI INSTITUTE OF TECHNOLOGY
An Autonomous Institution | NBA Accredited | ISO Certified
‗A‘ Grade NAAC Accredited | NIRF 2020 RANK-BAND:251-300

Recruitment

An effective recruitment process is at the foundation of HRM. If you can recruit good
talent, you can build on their skills and invest in employees for years to come as they
add value to the organization. Equally important is company culture. You want
employees that add to the culture of the organization. Some common recruiting tools
HRM may use include job aggregators like Indeed or Simply Hired, video interviewing,
or even social media sites like LinkedIn.

1. Development of a staffing plan. This plan allows HRM to see how many
people they should hire based on revenue expectations.

2. Development of policies to encourage multiculturalism at

work. Multiculturalism in the workplace is becoming more and more
important, as we have many more people from a variety of backgrounds in
the workforce.

3. Recruitment. This involves finding people to fill the open positions.

4. Selection. In this stage, people will be interviewed and selected, and a

proper compensation package will be negotiated. This step is followed by
training, retention, and motivation.

Development of Workplace Policies

Every organization has policies to ensure fairness and continuity within the
organization. One of the jobs of HRM is to develop the verbiage surrounding these
policies. In the development of policies, HRM, management, and executives are
involved in the process. For example, the HRM professional will likely recognize the
need for a policy or a change of policy, seek opinions on the policy, write the policy,
and then communicate that policy to employees. It is key to note here that HR
departments do not and cannot work alone. Everything they do needs to involve all
other departments in the organization. Some examples of workplace policies might
be the following:

 Discipline process policy

 Vacation time policy
 Dress code
 Ethics policy
 Internet usage policy

_ _
Subject: Principles of Management Course Code: 100703MG
Course Instructor: Mrs. Sarita Tiwari Class: B.Tech IV Year 4 Sem Civil
 DEPARTMENT OF CIVIL ENGINEERING
BHILAI INSTITUTE OF TECHNOLOGY
An Autonomous Institution | NBA Accredited | ISO Certified
‗A‘ Grade NAAC Accredited | NIRF 2020 RANK-BAND:251-300

Evaluation and performance management

HRM uses data to track employee performance to ensure a highly trained and capable
workforce. The data compiled can also be used to change staff training methods,
implement a merit-based system for raises, and more. HRM professionals use formal
measures like performance reviews and informal methods like interviews or surveys.

Compensation and Benefits Administration

Compensation can mean salary, commission, benefits, time off, and other non-
monetary benefits. HRM looks to the industry standard to set salary rates, commission
rates, and benefits. This ensures fairness and allows for a consistent company
standard. Some organizations may use performance reviews to adjust an employee‘s
salary, among other measures. Examples of employee compensation include the
following:

 Pay
 Health benefits
 Retirement plans
 Stock purchase plans
 Vacation time
 Sick leave
 Bonuses

Retention

Retention involves keeping and motivating employees to stay with the organization.
Compensation is a major factor in employee retention, but there are other factors as
well. Ninety percent of employees leave a company for the following reasons:

1. Issues around the job they are performing

2. Challenges with their manager
3. Poor fit with organizational culture
4. Poor workplace environment

Employee development and learning

Engaged employees are effective employees. HRM understands the importance of a

workforce that is challenged but also supported. Most employees want opportunities
for advancement and to feel competent and valued in what they bring to an
organization. Part of HRM is providing these learning opportunities to employees. This
might include tuition reimbursement programs, on-the-job training options,

_ _
Subject: Principles of Management Course Code: 100703MG
Course Instructor: Mrs. Sarita Tiwari Class: B.Tech IV Year 4 Sem Civil
 DEPARTMENT OF CIVIL ENGINEERING
BHILAI INSTITUTE OF TECHNOLOGY
An Autonomous Institution | NBA Accredited | ISO Certified
‗A‘ Grade NAAC Accredited | NIRF 2020 RANK-BAND:251-300

Conferences, conventions, or certification programs. Aside from individual learning,

HRM can also use employee development and learning to help employees adapt to
organizational changes, such as system upgrades, technology shifts, and new
policies.

Employee health and safety

The safety and well-being of an organization‘s employees are critically important

aspects of HRM. Employee health and safety covers a lot, such as safety against
harassment, discrimination, or bullying in the workplace. It can mean physical safety
that would involve building fire code compliance. It can also mean adherence to labor
laws that protect an employee's rights in the workplace. Safety in the workplace
means cyber security or safeguarding an employee‘s personal information. A lot goes
into protecting all aspects of employees‘ health and safety, and it is the job of HRM
professionals to ensure that protection. A few ways HRM professionals may go about
this is by installing security cameras, enforcing internet usage rules, implementing a
zero-tolerance policy, or creating restricted access areas.

Dealing with Laws Affecting Employment

Human resource people must be aware of all the laws that affect the workplace. An
HRM professional might work with some of these laws:

 Discrimination laws
 Health-care requirements
 Compensation requirements such as the minimum wage
 Worker safety laws
 Labor laws

The legal environment of HRM is always changing, so HRM must always be aware
of changes taking place and then communicate those changes to the entire
management organization. Rather than presenting a chapter focused on HRM laws,
we will address these laws in each relevant chapter.

Worker Protection

Safety is a major consideration in all organizations. Oftentimes new laws are created
with the goal of setting federal or state standards to ensure worker safety. Unions
and union contracts can also impact the requirements for worker safety in a
workplace. It is up to the human resource manager to be aware of worker protection
requirements and ensure the workplace is meeting both federal and union standards.

_ _
Subject: Principles of Management Course Code: 100703MG
Course Instructor: Mrs. Sarita Tiwari Class: B.Tech IV Year 4 Sem Civil
 DEPARTMENT OF CIVIL ENGINEERING
BHILAI INSTITUTE OF TECHNOLOGY
An Autonomous Institution | NBA Accredited | ISO Certified
‗A‘ Grade NAAC Accredited | NIRF 2020 RANK-BAND:251-300

Worker protection issues might include the following:

 Chemical hazards
 Heating and ventilation requirements
 Use of ―no fragrance‖ zones
 Protection of private employee information

Communication

Besides these major roles, good communication skills and excellent management
skills are key to successful human resource management as well as general
management.

Awareness of External Factors

In addition to managing internal factors, the HR manager needs to consider the

outside forces at play that may affect the organization. Outside forces, or external
factors, are those things the company has no direct control over; however, they may
be things that could positively or negatively impact human resources. External
factors might include the following:

1. Globalization and off shoring

2. Changes to employment law
3. Health-care costs
4. Employee expectations
5. Diversity of the workforce
6. Changing demographics of the workforce
7. A more highly educated workforce
8. Layoffs and downsizing
9. Technology used, such as HR databases
10. Increased use of social networking to distribute information to employees

_ _
Subject: Principles of Management Course Code: 100703MG
Course Instructor: Mrs. Sarita Tiwari Class: B.Tech IV Year 4 Sem Civil
 DEPARTMENT OF CIVIL ENGINEERING
BHILAI INSTITUTE OF TECHNOLOGY
An Autonomous Institution | NBA Accredited | ISO Certified
‗A‘ Grade NAAC Accredited | NIRF 2020 RANK-BAND:251-300

An understanding of key external factors is important to the successful HR

professional. This allows him or her to be able to make strategic decisions based on
changes in the external environment. To develop this understanding, reading various
publications is necessary.

Most professionals agree that there are seven main tasks HRM professionals
perform. All these need to be considered in relation to external and outside forces.

_ _
Subject: Principles of Management Course Code: 100703MG
Course Instructor: Mrs. Sarita Tiwari Class: B.Tech IV Year 4 Sem Civil
 DEPARTMENT OF CIVIL ENGINEERING
BHILAI INSTITUTE OF TECHNOLOGY
An Autonomous Institution | NBA Accredited | ISO Certified
‗A‘ Grade NAAC Accredited | NIRF 2020 RANK-BAND:251-300

HUMAN RESOURCE PLANNING (HRP)

is the process of forecasting the future human resource requirements of the
organization and determining as to how the existing human resource capacity
of the organization can be utilized to fulfill these requirements. It, thus, focuses
on the basic economic concept of demand and supply in context to the human
resource capacity of the organization.

It is the HRP process which helps the management of the organization in meeting
the future demand of human resource in the organization with the supply of the
appropriate people in appropriate numbers at the appropriate time and place.

Further, it is only after proper analysis of the HR requirements can the process of
recruitment and selection be initiated by the management. Also, HRP is essential in
successfully achieving the strategies and objectives of organization.

An HR Planning process simply involves the following four broad steps:

 Current HR Supply: Assessment of the current human resource availability

in the organization is the foremost step in HR Planning.

It includes a comprehensive study of the human resource strength of the

organization in terms of numbers, skills, talents, competencies, qualifications,
experience, age, tenures, performance ratings, designations, grades,
compensations, benefits, etc.

 Future HR Demand: Analysis of the future workforce requirements of the

business is the second step in HR Planning.

All the known HR variables like attrition, lay-offs, foreseeable vacancies,

retirements, promotions, pre-set transfers, etc. are taken into
consideration while determining future HR demand.

Further, certain unknown workforce variables like competitive factors,

resignations, abrupt transfers or dismissals are also included in the scope of
analysis.

 Demand Forecast: Next step is to match the current supply with the future
demand of HR, and create a demand forecast. Here, it is also essential to
understand the business strategy and objectives in the long run so that the
workforce demand forecast is such that it is aligned to the organizational
goals.

_ _
Subject: Principles of Management Course Code: 100703MG
Course Instructor: Mrs. Sarita Tiwari Class: B.Tech IV Year 4 Sem Civil
 DEPARTMENT OF CIVIL ENGINEERING
BHILAI INSTITUTE OF TECHNOLOGY
An Autonomous Institution | NBA Accredited | ISO Certified
‗A‘ Grade NAAC Accredited | NIRF 2020 RANK-BAND:251-300

 HR Sourcing Strategy and Implementation: After reviewing the gaps in the

HR supply and demand, the HR Consulting Firm develops plans to meet
these gaps as per the demand forecast created by them.

This may include conducting communication programs with employees,

relocation, talent acquisition, recruitment and outsourcing, talent
management, training and coaching, and revision of policies. The plans are,
then, implemented taking into confidence the mangers so as to make the
process of execution smooth and efficient.

Here, it is important to note that all the regulatory and legal compliances are
being followed by the consultants to prevent any untoward situation coming
from the employees.

Hence, a properly conducted process of HR Planning by an HR Consulting Firm

helps the organization in meeting its goals and objectives in timely manner with the
right HR strength in action.

HRP can help business:

 Anticipate workforce needs in a changing market
 Plan for short-term and long-term growth
 Improve operations
 Facilitate staffing changes
 Avoid talent shortage
 Stay ahead of the technology curve
 Remain agile as the market evolves
 Maintain compliance with government laws and regulations

_ _
Subject: Principles of Management Course Code: 100703MG
Course Instructor: Mrs. Sarita Tiwari Class: B.Tech IV Year 4 Sem Civil
 DEPARTMENT OF CIVIL ENGINEERING
BHILAI INSTITUTE OF TECHNOLOGY
An Autonomous Institution | NBA Accredited | ISO Certified
‗A‘ Grade NAAC Accredited | NIRF 2020 RANK-BAND:251-300

Challenges of Human Resource Planning

As beneficial and powerful as human resource planning is, it is not without its
drawbacks and challenges.HRP relies on forecasting, which is an imperfect art and
is never — and can never be — 100% accurate.
Similarly, you can never account for the ambiguity in the market and the rapid
change that could come out of nowhere.
There may be some error when you forecast the future of your workforce. That error
will affect the other steps on this list for the good or the bad (depending on how
accurate your forecast is).
Realistically, though, that can‘t be helped and all you can do is give it your best shot.
If you discover errors in your forecasting, you can always return to step one and start
the process over with the new information.
Other challenges of the human resource planning process include:
 Resistant workforce
 Inefficient information systems
 Overall cost
 Time and effort
That said, when you are aware of these challenges going in, you can take steps to
overcome them right away so that you can get to the benefits sooner.

_ _
Subject: Principles of Management Course Code: 100703MG
Course Instructor: Mrs. Sarita Tiwari Class: B.Tech IV Year 4 Sem Civil