UNIT-III

ORGANIZING
• Nature and purpose – Formal and informal
organization – organization chart –
organization structure – types – Line and staff
authority – departmentalization – delegation
of authority – centralization and
decentralization – Job Design - Human
Resource Management – HR Planning,
Recruitment, selection, Training and
Development, Performance Management ,
Career planning and management.
Definition
• Haimann – “ Organizing is the process of
defining and grouping the activities of the
enterprise and establishing the authority
relationship among them.”
Nature of Organizing
1.Common Objectives-
• Every organization function to achieve some objectives
• All efforts of the organization are directed towards this goal
2.Specialization or Division of Labour:
• Total work of an organization is divided into functions and
subfunctions to get benefits of specialization
3.Authority of structure:
• There is an arrangement of position into graded
series(classify based on knowledge, experience)
• The authority and responsibility of each position is defined
in form of structure.
• Chain of superior and subordinate relationship is known as
chain of command
4.Group of persons :
• Organization is basically a group of person
• People constitute(represent) the dynamic human element
of an organization(energetic and powerful)
5.Co-ordination:
• Co-ordination is the mechanism for coordinating the
different activities and parts of an organization
• It functions as an integrated
6.Communication:
• Every organization has own channels of communication
• These channels are necessary for mutual understanding
and cooperations among members of an organization
7.Environment:
• It comprises of economic, social,political and legal
factors
• It must be desired to work efficiently in a changing

environment
8.Rules and Regulation:
• For effective functioning it should have some rules

and regulations
• Such rules and regulations may be in written form

or implied form (indirect)

FORMAL
&
INFORMAL
ORGANIZATION
Formal Organization
• A formal Organization consists of a classical
hierarchical structure in which
1. Position,
2. Responsibility,
3. Authority,
4. Accountability (responsibility)
5. The line of command are clearly defined and
established.
ALLEN -Definition
• “Formal Organization is a system of well
defined jobs, each bearing a definite measure
of authority, responsibility and accountability”
Characteristics
• It is Flexible and properly planned. (workable)
• Based on the principle of division of labour in
operation
• It Concentrates more on the performance of jobs
but not on the individuals performing the jobs
• Organization charts are usually drawn.
• Co-ordination among members and their control
are well specified through processes, procedures,
rules, etc
• Unity of command is normally maintained.
Advantages
• Since the definite boundary of each worker is clearly
defined, conflict among the workers is automatically
reduced.
• Overlapping of responsibility is easily avoided.
• More stable Organization can be ensured- It makes
the organization less dependent on one person
• Motivates the employees.
Informal Organization
• Organization which establishes the relationship
on the basis of member’s interaction,
communication, personal liking and disliking
within as well as outside the organization.
• For Ex: Typist working in different department
may form informal group due to similarity of
work.
• Common language, common hobby, common
habits may lead to Informal Org.
Contd…
• Informal Organization exist under formal
Organization also.
• Greater job satisfaction to the individual and
result in maximum production.
Characteristics
• It arises without any external cause i.e Voluntarily.
• It is created on the basis of some similarity among
the members. The bases of similarity may be age,
sex, place of birth, caste, religion, likings/dislikings,
etc..
• Informal Organization has no place in the
Organization chart and has no proper structure.
• A person may become members of several informal
organization at the same time.
• Rules and tradition of informal org are not written.
Advantages
• Satisfaction and motivation.
• Fill ups the gap among the abilities of the
managers.
• One of the useful channels of communication
Disadvantages
• It indirectly reduces the effort of management
to promote greater productivity.
• It spreads rumour among the workers
regarding the functioning of the Organization
unnecessarily.
FUNCTIONAL AUTHORITY
OR
FUNCTIONAL
ORGANIZATION
Definition
• Functional authority is the right gives to
individuals to make decisions regarding
the way a department will be run.
• They can create or change procedures in
order to complete a project
FUNCTIONAL AUTHORITY ARISES BECAUSE OF THREE
FACTORS:
1. Superior delegates(assign) the authority to staff to
transmit information and advice directly to his
subordinate for saving time.
2. Highly experienced and skilled staff show how
information should be used in the department to
the line manager.
3. Staff are given authority to prescribe process,
procedure, methods followed in various
departments
Advantages
• Foreman is responsible for one function, he can perform
the duties in better way
• This structure use specialists to give advice to workers
• The guidelines reduce the number of accidents and
wastage , man and machine hours
Disadvantages
• Coordination is difficult between various functional
foreman
• Functional authority violates the principles of unity o
command.
• Maintaining the discipline is difficult because each worker
is responsible to few number of foreman
• It is difficult to find out the responsibility of foreman
LINE AUTHORITY
Line Authority
• Also known as “Military”, “traditional”, Scalar”
or “Hierarchical” form of authority.
• It exists between superior and his subordinate.
• It is the direct authority which a superior
exercises over a number of subordinates to
carry out the order and instructions.
• Authority is delegated to the individuals to
perform the activities
Line authority works as follows
As a chain of command:
• Officials are in the chain of command from
higher position to lower position in the
organization.
As a Channel of Communication:
• Line authority can be considered as a channel
of communication between superior and
subordinate of the organization.
• Communication in the organization flows
through the line relationship.
As a carrier of responsibility:
• Each individual is responsible for the
proper performance of the activities assigned
to him.
• Each subordinate is answerable to his
superior.
Advantages
• Simple and easy to understand.
• Most economical and effective.
• Delegation of authority is clear which
facilitates decision making.
• Unity of control.
• Channel of Communication is clear.
• Ensures excellent discipline in the enterprise.
Disadvantages
• Rigid and Inflexible organization
• Neglects specialists.
• Requires a high type of supervisory personnel
to meet the challenges.
• Limited to too small Organization.
• Encourages a dictatorial way of working.
Staff Authority
Staff Authority
• Staff authority is exercised by a man over line
personnel.
• In a management Staff manager, refers
elements of the Organization, which help the
line manager to work more effectively in
accomplishing the primary objective of the
enterprise.
• Function of staff manager is to investigate the
research and give advice to the line managers.
• Staff manager having specialized knowledge and
skills reduce the burden of line manager
• Staff manager have the rights to provides the
commands to the subordinate who are working
under him
• With respect to line manager Staff manager play a
Advisory role of recommending and assisting.
Staff authority works as follows
Advisory staff authority:
• An advisory staff manager provides advice,
assistance and information.
• It depends on the line manager whether these
are put into action or not.
Compulsory staff consultation:
– A staff manager may be consulted by a line
manager before action is taken.
– Line manager is free to take action to this
own after consulting staff.
Concurring authority:
• When important operation are control , a
staff man may be granted authority
• so that no action can be taken until he agrees
it
Advantages
• Staff manager improves the quality of managerial
decision by providing accurate and updated
information.
• When the operation becomes more complex, the
line manager require advice of staff personnel.
• Staff manager provides innovative ideas from
time to time.
• Staff manager may be given authority to prescribe
new systems and procedures.
Limitation
1. Danger of undermining line authority
• Top management give too much importance to staff
personnel.
• So the department manager is being undermined.

2. Lack of staff responsibility

• Staff manager is responsible to make advice or propose a
plan.
• They can easily blame the line manager for not
implementing the plan when it fails.
• Staff manger will claim that due to lack of attention of line
manager the plan become fail
• The line manager will claim that it a poor plan
3. Thinking in vacuum:
• Recommendations of staff manager are highly
impractical because they do not have any
experience in implementing the recommendation

4. Managerial problems:
• Lower people may get an advice from staff
manager
• At same time they get orders from own line
manager.
• It may lead to friction(conflict) between them
DEPARTMENTATION
Knootz and O’Donnell
A departmentation is a process of dividing the
entire organization into small, flexible
administrative units.
Importance of Departmentation
• Increases the efficiency of the workers by
providing specialization of work.
• Makes the enterprise to expand and grow.
• Helps in fixing responsibility to various
executives of the organization.
• Provides an opportunity to managers to make
independent decisions related to the
department.
1.Departmentation by Enterprise function

• Grouping of activities according to the

common function of management is known as
Functional Departmentation.
• Basic Organizational function- finance,
accounting, purchasing, production and
marketing.
• Each department head is responsible for the
respective department.
• Ex: Marketing of product- marketing manager.
Advantages
• Most logical, scientific
• Maximum utilization of manpower and other
resources.
• Proper performance control
• Facilitates a co-ordination activity within the
department and Organization as a whole.
Disadvantages
• Produces managers with very narrow
experience.
• Development of manager is limited.
2. Departmentation by territory or
geography
• Grouping all the functions within a specific
geographic area is known as Geographic
Departmentation.
• Very suitable for large organization.
• Ex: Automobile Manufacturing, banking,
transport, oil refining,etc…
• Helps the business unit to increase the sale
because the local person is familiar with the
local languages, culture.
Advantages
• Production cost and sale price are lower
because resources are close to customers.
• Transportation cost can be reduced.
• Facilitates the expansion of business.
• Better co-ordination of activities.
Disadvantages
• Conflicts between the goals of the location and
the organizational goals.
• Distance between the headquarter and
departments can give rise to the problems of
3. Departmentation by customers
• This type of Depart mentation is preferred
when the needs of customers are different in
nature.
• Employed in Large Organization.
• For example, a bank or financial institution
may divide its loan section into number of
heads such as corporate banking, institutional
banking, agricultural banking, etc…
Advantages
• Facilitates the concentration on customer
needs and satisfaction.
• Managers can become experts in customer
area.
• Enables to understand customer needs.
Disadvantages
• Requires experts to solve customer problems.
• There may be duplication of resources.
• There may be underutilization of facilities and
manpower.
4. Departmentation by Product or service

• Product departmentation is the process of

grouping activities by product line.
• Tasks can also be grouped according to a
specific product or service, under one
manager.
• Each product area in the corporation is under
the authority of a senior manager who is
specialist in
• He is responsible for, everything related to the
product line.
Dabur India Limited :
• It is the India‘s largest Ayurvedic medicine
manufacturer.
• Its structure is based on its varied product
lines which include
---Home care,
--- Health care,
--Foods.
Advantages
• It ensures better customer service
• Unprofitable products may be easily
determined
• Performance can be easily evaluated.
• It is flexible and new product line can be
added easily
• Enables a quick response to change in
environment.
Disadvantages
• Possibility of duplication of work and
resources.
• As more and more departments are created
for various product it requires more person
• Machines and equipments in each department
may not be fully utilized.
6. Departmentation by Process or
Equipment
• Activities are grouped on the basis of
production process or Equipment involved.
• For example, a textile mill has many
departments, such as Ginning, spinning,
weaving, dyeing and printing, packing and
sales.
• Generally used in a manufacturing enterprise
and at lower level organization.
Advantages
• Optimal utilization of specialized machinery
and technology processes.
• Division of labour is followed.
• No duplication of activities.
Disadvantages
• More specialist are essential to each process.
• Conflicts among managers of different persons
may arise.
• Co-ordination of departments is difficult.
Selection Process
• No standard selection process followed by all
companies.
• Depends on the size and nature of the
organization companies followed the selection
methods.
Steps in Scientific Selection process
• Screening of Application
• Selection Tests
• Preliminary Interview
• Reference Check
• Medical Examination
• Final Interview
• Approved by appropriate authority
• Placement
Screening of application
• Received application have variety of
information about the applicants, such as their
1.Personal bio-data,
2.achievements,
3. experience
• Such information is used to screen the
applicants who qualified for the employment
Selection Test
• Test are used to measure the intelligence,
aptitude, physical and mental abilities of an
individual applicant.
• Many tests may be conducted such as
Personality test, aptitude test, interest tests.
Personality test:
• This test is used to find out the personal traits and
interests of the individuals.
• Interpersonal skills ,Self-confidence, Leadership
abilities and patience can be measured through
personality test
Aptitude test:
• This test is used for measuring the potential
characteristics for acquiring skills
• This test are constructed to discover interest,
existing skills
Intelligence tests:
• This test are designed to measure mental capacity,
and to test memory and speed of handling complex
problem
• Intelligent employees learn faster than dull
employees
Vocational tests:
This test are designed to identify the candidate’s most
suitable occupation(areas of interest)
Preliminary Interview
• Short interview used to size up the candidate.
• It is useful as a process of eliminating unsuitable
candidates.
Reference Check
• The persons named by the candidate in the
application form are contacted to cross check the
candidate’s character, performance and
behaviour.
• Reference check will fetch Reliable information to
the Organization.
Medical Examination
• Certain jobs Requires some physical qualities
such as clear vision, perfect hearing, clear
tone, tolerance of hard working condition,
etc…
Final Interview
• Most essential step in the process of selection.
• Cross check the information already obtained
and to collect additional information about
the candidate.
TYPES OF INTERVIEW
• Informal Interview
• Formal Interview
• Depth interview
• Stress Interview
• Group Interview
• Panel Interview
Informal Interview:
• Candidates meet the manager to enquire about the
vacancies in the organization
• Conducted at any place to get basic and non-job
related information

Formal Interview:
• All formal procedures such as opening and closing
time, panel of interviewers, official intimation to
the candidates are followed
Depth Interview:
• Candidate’s knowledge and skills can be examined
• Experienced and talented interviewer is required to
conduct this interview
Stress Interview:
• This interview find out whether the candidate can
perform well in condition of stress and asses the
emotional strain.
• Frequent interruptions, criticism of the candidates'
opinion are some methods of creating stress
• This types of interview may irritate the candidate
Group Interview:
• Group of candidates brought together in the room
for interview
• They given a problem for discussion to the
candidate
• An expert observe the candidate participation,
quality of thoughts discussed .
Pannel Interview:
• A panel of experts interviews each candidate
• They judges the performance of individuals
• They prepare a consolidated judgement based on
each expert’s judgement.
Approved by appropriate authority
• Suitable candidates are recommended for the
selection by selection committee or personal
department.
• Top level Managers- Board of Directors is approving
authority
• Lower Levels – Functional heads is approving
authority
• When the approval is received the candidates asked
to report on duty
Placement
• After all the formalities are completed, the
candidates are placed on their jobs initially on
probation basis.
• During probation period, they are observed
keenly
• Then they will become the permanent
employee after successful completion of
probation period.
CENTRALIZATION
&
DECENTRALIZATION
CENTRALIZATION
• It is the process of transferring and assigning
decision-making authority to higher levels of an
organizational hierarchy.
TYPES OF CENTRALIZATION
Departmental centralization:
• It refers to concentration of specialized activities in
one department
Ex: Maintenance for a whole plant may be carried out
by a single department
Centralization of performance:
• It shows the geographical concentration
Ex: Company operating in a single location
Centralization of management:
• It indicates a tendency to restrict delegation of
decision making
• The authority is held by the manager
CHARACTERISTICS OF CENTRALIZATION
• Philosophy: top-down control
• Decision-making: strong
• Organizational change: shaped by top leaders
• Execution: Able to respond quickly to major issues
and changes
• Uniformity: Low conflicts between parts of the
organization
ADVANTAGES OF CENTRALIZATION
• Provide Power and prestige for manager
• Promote uniformity of policies and decisions
• Minimize duplication of function
DISADVANTAGES OF CENTRALIZATION
• Neglected functions for mid Level and lower level
• Supervisor functions as a link officer between
director and first-line management
DECENTRALIZATION
• It is the process of transferring and assigning
decision-making authority to the subordinates of
the organization.
THREE FORMS OF DECENTRALIZATION
De-concentration:
• Decision making authority is redistributed to
lower levels of the same organization.
Delegation:
• The responsibility for decision-making are
transferred to semi-autonomous organizations
ie.not wholly controlled by the central
organization
Devolution:
• The authority for decision-making is transferred
completely to autonomous organizational units.
CHARACTERISTICS OF CENTRALIZATION
• Philosophy: Bottom-up control
• Decision-making: Democratic
• Organizational change: emerging from interactions
• Execution: emergent
• Low risk of not-invented-here behaviour
tendency to reject ideas that come from outside
ADVANTAGES OF DECENTRALIZATION
• Reduce the burden of the management.
• Enables the staff members to complete work early
• Develop Second-line managers by providing
opportunities
• Bring decision-making close to action
DISADVANTAGES OF DECENTRALIZATION
• Top-level administration may feel it would decrease
their status
• It is difficult to have uniform policy and procedure
• There is possibility of duplication of work
• Large number of staff members are required which
leads to increase the cost of operation
• Decentralization will create chaos(confusion) in the
organization in the absence of proper control
TRAINING
DEFINITION
• Training is the act of increasing the knowledge
and skills of an employee for doing a particular
job
• It improves the employee's performance on

the current job and prepares them for an

intended job.
PURPOSE OF TRAINING
1.To improve Productivity: Training leads to
increased operational productivity and increased
company profit.
2.To improve Quality: Better trained workers are
less likely to make operational mistakes.
3. To improve Organizational Climate: Training leads
to improved production and product quality which
enhances financial incentives. This in turn increases
the overall morale of the organization.
4. To increase Health and Safety: Proper training
prevents industrial accidents.
5. Personal Growth: Training gives employees a
wider awareness, an enlarged skill base and that
leads to enhanced personal growth.
TRAINING METHODS
● Training methods can be broadly classified as
on-the-job training and off-the-job training
on-the-job training :
● Under these methods inexperienced employees
learn through observing manager performing the
jobs and try to imitate their behaviour
● These methods do not cost much
● They are less disruptive as employees are always
on the job
Some common methods of on-the-job training
1. Job Rotation

● Movement of manager from one job to another

● Purpose of job rotation is to broaden the

knowledge of the manager

● Trainee learn about the different enterprise

functions by rotating the different position

● It increase interdepartmental co-operation and

reduce the monitiny of the work

2. Committee Assignments:
● Under the committee assignment, group of

trainees are given and asked to solve an actual

organisational problem.
● The trainees solve the problem jointly.

● It develops team work.

3. Coaching
● It is one-one training

● Trainee is placed under a particular supervisor who

act as an instructor
● This instructor teaches the job knowledge and skills

to trainee
● Trainee serve as apprentices to experts from long

periods
● The apprentices are paid remuneration and

training is provided during working hours

4. Experience or understudy
● Oldest technique in on-the-job training method

● A superior give training to a subordinate as his

understudy like assistant to manager

● It is an practical and effective method

5. Temporary promotion
● Sometime manager goes to foreign trip or ill.

● Senior staff take as a charge of acting manager with

temporary promotion
● Such a manager led with no decisional authority

the development benefit may be minimum

TRAINING METHODS
off-the-job training :
● This training methods are conducted separately
from the job environment
● Study materials is supplied
● There is full concentration on learning rather than
performing
● There is a freedom of expression
1. Lecture:
● It is the best technique to present and explain the
concepts and principles
The main use of lectures are as follows:
1. It is direct and can be used for large group of
trainee
2. It present the principles, concepts, policies and
experiences in shortest time
3. It give the scope of the subject clearly
2. Case studies:
• A real business problem is presented to the group

of trainee
• They asked to identify the problem and alternative

solution ask to select and suggest the best solution

• This method promotes problem solving ability and
improve the decision making skill
3. Programmed Instruction:
● It is self learning process

● It including teaching machines such as audio or

video instructions and programs

● Trainee learn through computer systems, films,

book diagrams
● Features of the programmed instruction are

participation by the trainee and immediate

feedback by him
4. Role play:
• A trainee will assigned a role to be played by him

• The role players are provided with the written or

oral description of the situation and role to play

• This method teaches human relation skills through

actual practice. Ex: Interview, Sales presentation

5. Conference and Seminar:
● It is a meeting of several people to discuss the

subjects
● It provides a intensive group discussion

● It allow the participants to prepare and present

papers
● Success of the conference depends on the

conference leader
● The leader encourage all the participants to

develop alternatives and present their views.

6.In- basket method:
• Basket contain memo, circular letters and reports.
• It describe a real life problem
• The trainee required to solve each problem and
record their decision within a specified time-period
• It promote logical thinking skills, time management
skills and decision making skills
TRAINING PROCESS
1.Identifying Training needs:
• A training program is designed to assist in providing
the solutions for specific problems
• A training program is used to improve performance
of a trainee.
• They tries to bridge the gap between standard
performance and actual performance
2.Getting ready for the job:
● The trainer has to be prepared for the job.

● He decides who needs to be trained - the

newcomer or the existing employee

Preparation of the learner:
• Putting the learner at ease (simple)
• Stating(express) the importance and ingredients of
the job (characteristics)
• Creating interest about the job
• Placing the learner as close to his normal working
position
• Familiarizing trainee with the equipment and
materials
3) Presentation of Operation and Knowledge:
● The trainer should clearly tell, show and ask
question to trainee in order to convey the new
knowledge and operations.
● The trainee should be encouraged to ask questions
to trainer in order to indicate that he knows and
understands the job
4) Performance Try out:
• The trainee is asked to go through the job
several times.
• This gradually builds the skill, speed and
confidence of the trainee.
5) Follow-up:
• This evaluates the effectiveness of the entire
training effort .
PERFORMANCE
APPRAISAL
PERFORMANCE APPRAISAL
• Process by which the manager and employees
work together to plan, monitor and review an
employee’s contribution to the organization
Features
• Evaluate not only the performance of the
workers but also his potential for development.
• Performance appraisal is Continuous process
• Appraisals are Arranged periodically according to
a plan
• Performance appraisal identify the Employee’s
job strength and weakness.
• Performance appraisal is the process of
determining and communicating an employee
how he is performing the job
OBJECTIVES
• Improve the management development
• Improve the Employees performance
• Help Superior to understanding about the
subordinate
• Facilitate fair and equitable compensation
based on performance
Various methods of performance
appraisal
• Graphic Scale method
• Ranking method
• Grading
• Forced Distribution method
• Check list method
• Critical incident method
• Group Appraisal
Graphic Scale method
• It is a Linear rating scale
• Two factors of Graphic Scale method
– Employee Characteristics:
Leadership, attitude, Co-operation, creativeness, Loyalty,
Decision making ability
– Employee Contribution: Achievement of target,
Responsibility and relation with fellow employees and
superiors.
Ranking method
• It is the Comparative rating technique.
• Appraising the subordinates against an standards
with “outstanding”, “good”, “below average”.
• This ranking compares one employee with other
employees on the basis of certain traits(quality)
and characteristics
Grading
• Grading method is used for the promotion based
on performance
• Certain grades are
1.Excellent
2.Very good
3.Good
4.Average
5.Poor
• These grades are established in advance and these
are carefully defined
Forced Distribution method
• Appraiser is forced to appraise the appraisee.
• It is the Assumption method.
• Ex: 15 % employee may be rated as excellent
• 15 % employee may be rated as above average
• 40% employee may be rated as average
• 25 % employee may be rated as below average
• 5 % employee may be rated as poor
Check list
• Check list method involves Serious of questions
related to individual behavior.
• Each questions has two alternatives. Yes or NO
• Some example questions are,
– Does he maintain discipline well? Yes/No
– Is he regular in the job? Yes/No
– Does he obey the instructions properly? Yes/No
• When checklist is completed it send to
personnel department.
• Personnel department calculate the total scores
show the result to an employee
Critical Incident Method
• Evaluation is based critical(stress) incident.
• Stress is given on the behavior of the worker on the
job.
• Employees are observed whether they become
upset over work, resist the change, co-operate the
fellow worker, suggests the improved method.
• It can be weighted and ranked in the order of
frequency
Group Appraisal
• Not made by a single rater but a group of
supervisors.
• Group consist of immediate supervisors and
three or four supervisor having knowledge of the
employee
• It is time consuming process
RECURITMENT
PROCESS
Recruitment Process
The recruitment process consists of the following
steps
1.Identification of vacancy
2. Preparation of job description and job
specification
3.Selection of sources
4.Advertising the vacancy
5.Managing the response
1.Identification of vacancy
● The recruitment process begins with the human
resource department
● They receiving requisitions for recruitment from
any department of the company.
● These contain:
1.Posts to be filled
2.Number of persons required
3.Duties to be performed
4.Qualifications required
2. Preparation of job description and job
specification:
● A job description is a list of functions, and
responsibilities of a position.
● It include specifications such as the qualifications
or skills needed by the person in the job
● A job specification describes the knowledge, skills,
education, experience, and abilities to performing
a particular job.
3. Selection of sources:
● Recruitment processes consist of two kinds of

sources: internal and external sources.

● The sources within the organization itself are

known as the internal sources .

EX: Transfer of employees from one department to
other to fill a position
● Candidates Recruitment from all the other sources

are known as the external sources

Ex: Outsourcing agencies
4. Advertising the vacancy:
● The vacancy is communicated to the candidates by

means of a suitable media such as television, radio,

newspaper, internet, direct mail etc.
5. Managing the response:
● Selecting the correct resumes that match the job

profile, is very important.

● Candidates having the given skill set are chosen

and further called for interview.

CARRER
DEVELOPMENT
DEFINITION:
• Career development not only improves job
performance
• But also brings about the growth of the
personality.
Career Development Process
The recruitment process consists of the following
steps
1.Setting Development Objectives
2.Ascertaining Development Needs
3. Determining Development Needs
4. Conducting Development Programs
5. Program Evaluation:
1. Setting Development Objectives:
• It develops a framework from which executive
need can be determined.

2.Ascertaining Development Needs:

It aims at organizational planning & forecast the
present and future growth.
3. Determining Development Needs:
This consists of
• Appraisal of present management talent
• Management Manpower Inventory
• The above two processes will determine the
skill deficiencies that are relative to the future
needs of the organization
4. Conducting Development Programs:
• It is carried out on the basis of needs of
1.different individuals,
2.differences in their attitudes and behaviour,
3.Physical, intellectual and emotional qualities.

deep understanding of important concepts

Self control, situation skills
5. Program Evaluation:
It assess the value of training in order to achieve
organizational objectives
Span of Control
SPAN OF CONTROL

• Span of Control means the number of

subordinates that can be managed efficiently
and effectively by a superior in an
organization.
• It suggests how the relations are designed
between a superior and a subordinate in an
organization
DELEGATION OF
AUTHORITY
Delegation of Authority
• Delegation of authority can be defined as
subdivision and sub allocation of powers to
the subordinates in order to achieve effective
results