IV.

Direction Maslows - The Hierarchy of Needs Theory

IV. Direction The Hertzbergs Model

IV. Direction Maslows Theory Vs Herzbergs Theory

IV. Direction Employee Moral and Satisfaction

Morale is a feeling on the part of the employee , of being accepted & belonging to a group of employees, through adherence to common goals & confidence in the desirability to those goals

V. Staffing

V. Staffing
1.Staffing
Definition of Staffing: Staffing is defined as filling positions in the organization structure through identifying workforce requirements, inventorying the people available, recruitment, selection, placement, promotion, appraisal, compensation, and training of needed people.

Staffing
Job Analysis is the systematic study of job requirements and the factors that influence the performance of those job requirements. This is the first step in the staffing process and is designed to identified who is to do what, where, when, and how.

Staffing
According to McCormick(1976) job analysis usually concentrates on : 1.Work Activities 2. Performance Standards 3. Job-related Tangibles and Intangibles 4. Job Context 5. Personal Requirements

Staffing
The objective of Human Resource Management process is to attract an effective work force, which requires four basic activities: 1. To identify human resource needs by monitoring growth, retirements, and terminations. 2. Recruitment activities. 3. Selection process. 4. Orientation of new employees.

Staffing
Forecasting HR Supply and Demand Recruitment and Selection Orientation / Induction Training and Development Replacement Performance Appraisal Compensation and Benefits

Staffing
Four Cs Model for Human Resource Management: 1. Competence 2. Commitment 3. Congruence 4. Cost-effectiveness

VI. Controlling

VI. Controlling
The Control functions essentially insures that planned performance is achieved with a minimum of disorder and disruptions
Types of controlling
Feed forward controls Concurrent (prevention) control Feedback controls

Controlling
The Process of Control
i.
ii. iii.

Establishing Standards: Physical, Technical, Monetary, Managerial, time standards, Qualitative Standards Determining Performance standards Measuring performance: Ways of measuring performance,
a. Observation b. Reports both oral and written c. Automatic Methods d. Inspections, tester samples

iv. v.

Comparing performance with standards and analyzing deviations: Comparison between what is and what should be Taking corrective action, if needed

Controlling
Controlling Key Function Areas
Financial Control: Return on Investment (ROI)

ROI =

Sales X Investments

Profit Sales

Ratio Analysis (RA)

RA simply involves selecting two or more components of a firms financial statement and expressing their relationship as a percentage ratio
Profit and loss control Budgets

Controlling
Controlling Key Function Areas
Inventory Control:

Purposes Establish the maximum and minimum amounts of inventory to have available Keep inventory levels and costs at desired minimum Provide feedback about the movement of inventory and changes in inventory controls Signal management when items reach or fall below the minimum (required) level

Controlling
Controlling Key Function Areas
Quality Control:

Activities Involved Setting Standards Inspection Statistical techniques Testing

VII. Coordination

VII. Coordination
Major task in the organizing process is that of coordination. The activities of different departments/units are required to be linked together to assure the achievement of overall organizational goals and the attainment of synergy. This is done through coordination, or the process of linking the activities of the various departments in the organization.

Coordination
The departments in an organization are basically interdependent, as they depend upon one another for the resources that are required to perform their respective tasks. James Thompson(1967) identified three major forms of interdependence: 1. Pooled,

2. Sequential, and
3. Reciprocal.

Coordination
Pooled Interdependence: The lowest level of interdependence is called

pooled interdependence. Departments with this low degree of

interdependence tend to operate with little interaction, as the output of each of the units is pooled at the organizational level. Sequential Interdependence: When two departments operate in a state of sequential interdependence, the output of one department becomes the input for the other in a sequential manner. Reciprocal Interdependence: The most complex and interrelated level is

reciprocal interdependence, whereby activities flow both ways for both

departments.

Coordination
Characteristics of Good Co-Ordination
Co-Ordination is a continuous process carried on by the managers. Co-ordination should not be made through orders. Co-ordinating activities must respond to time, policies, programs and objectives. Co-ordinating approach should be balanced and as far as possible it should be of both the types vertical as well as horizontal. It should be based on personal contact, mutual co-operation, mutual confidence, good human relations and above all on the continuity principles. It should aim at morale boosting of the workers.

Coordination
Principles of Co-ordination
Principle of Early Beginning The success of co-ordinating activities depends
on the beginning itself. If it has started at an early stage it proves fruitful. Planning is the beginning of an enterprise. Co-ordination should from this very stage start functioning.

Principle of Direct Contact Instead of issuing orders and instructions it is

better and helpful if the co-ordinating parties meet personally and talk over the matter. This helps in mutual understanding and creates mutual confidence

Principle of Reciprocity This helps in co-ordinating the efforts of each other

thus help in establishing an effective and harmonious relation between each other.

Principle of Continuity Co-ordination is a continuous process. It goes on

relentlessly from the very beginning.

VIII. Decision Making

VIII. DECISION MAKING

Decisions and Decision Making A decision may be defined as a choice made from available alternatives. Four decision-making activities: 1. The manager identifies the existence of a problem or an opportunity to improve a

situation.
2. The manager generates a set of alternate courses of action. 3. The manager selects one of the alternatives. 4. The manager implements the selected course of action.

Types Of Decisions
Programmed Decisions: are those that are applied to routine situations that have occurred often and for which decision rules and procedures have been developed and used again and again. These rules are recorded as the organizations standard operating manual / procedures (SOM / SOP ) Non-programmed Decisions: are applied to non-routine situations that are new and different from situations experienced in the past. There are no standard methods that appear to be appropriate. So manager must apply judgment, intuition, and creative thinking to the development of alternatives that are compatible with past operating procedures and organizational policy.

Decision Making Environments

Certainty: A state of certainty exists only when the manager knows the available alternatives as well as the conditions and consequences of those actions.

Risk: A state of risk exists when the manager is aware of all the alternatives, but is
unaware of their consequences. Uncertainty: Most significant decisions made in todays complex environment are formulated under a state of uncertainty, where there is an unawareness of all the alternatives and so also the outcomes even for the known alternatives. Ambiguity: The most difficult decision situation is the state of ambiguity, in which the problem to be resolved or the goals to be reached are not clear.

Models of Decision Making

Classical Model:
Is a prescriptive approach that is based on critical
economic assumptions. Traditional management theory assumed that managers made decisions to serve the economic interests of the organisation.

Administrative Model (Simon, 1987):

This model is a normative approach in that it

When faced with a decision situation, Manager should:

Classical model
Obtain complete and perfect information Eliminate uncertainty Evaluate everything rationally and logically

Administrative model
Use incomplete and imperfect information Are constrained by bounded rationality Tend to satisfy

and end up with a decision that best serves the interests of the organisation

and end up with a decision that may or may not serve the interest of the organisation

Administrative Model of Decision Making

Simons model is based on two concepts: 1) Bounded rationality infers that decision makers have limits or boundaries on the extent to which they can be rational. The decision makers rationality is limited by inherently individualized beliefs, values, attitudes, education, skills, habits, and unconscious reflexes. It is also limited by the complexity of the organization and its environments as well as the amount of information to be processed

2) Satisficing infers that the decision maker will tend to select the first solution alternative that satisfies some minimal set of outcome expectations. That is, the manager is not in a position to sort through all the alternatives in search of that single course of action that will maximize the economic returns for the organization. Instead, the manager will probably opt for the first solution that appears to resolve a problem situation, even if better

The Steps of Rational Decision Making

1) Recognize and Define the Decision Situation 2) Identify Appropriate Alternatives 3) Evaluate Each Alternative 4) Select the Best Alternative 5) Implement the Selected Alternative 6) Evaluate the Results and follow-up

Behavioural Nature of Decision Making

1) Political Forces and Coalitions One of the major behavioral influences in decision making is the existence of political forces Within the organization, a coalition is defined as an informal alliance among individuals or groups that is designed to achieve some common objective. 2) Intuition Intuition can be defined as an innate belief about something without conscious analysis. 3) Escalation of Commitment Too often, managers make decisions and then become so committed to that course of action, that they continue with it long after it becomes quite obvious that the results are less than successful, or that better alternatives are now available.

Deciding Who is to Decide

Individual Decisions Consultative Decisions

Group Decisions

Quantitative Decision Making Tools

Payoff Matrix
Payoff Matrix depicts the probable value of each of the decision alternatives, by displaying the various outcomes and the probabilities of their occurrence.

Decision Tree
Decision Tree is graphic representation of the sequence of decisions required in determining the expected values of alternative courses of action.

Queuing Models
Queuing Models are used by managers to control various sorts of waiting lines.

Quantitative Decision Making Tools

Distribution Models
Distribution Model helps the marketing manager deal with the problems of product distribution.

Inventory Models
Inventory Model helps the manager determine how much inventory to maintain.

Game Theory
Game Theory is a technique for the application of computers to the measurement of outcome under a variety of contingencies.