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1. MGT1110
Principles of Management
FALL SEM (2022-23) Freshers
HimaJyothi Kasaraneni
himajyothi.20phd7062@vitap.ac.in
VIT-AP School of Business,
VIT-AP University.

2. Module 1II
Follow the given link for this answer.
https://www.brainkart.com/article/Types-of-Departmentation_37705/
Follow the given link for this answer.
https://www.tutorialspoint.com/recruitment_and_selection/recruitment_process.htm
Follow the given link for this answer.
https://www.saralstudy.com/study-eschool-ncertsolution/business-studies/staffing/5168-
explain-the-procedure-for-selection-of-employees

3. Module No. 3 Organizational structure & Staffing
Formal & informal organization – Re-engineering the organization – structure
and process of organizing – Departmentation – Matrix organization –
strategic business units (SBUs) – Line & staff authority, Empowerment and
decentralization – Effective organizing & organizational culture. Selection
and Recruitment - Orientation - Career Development

4. Organizing
 Organizing can be defined as arranging the work, processes, authority,
resources and employees in right order, so that all the organizational
activities can take place in a defined and orderly manner.
 Organizing defines various relationships in an organization, such as
authority-responsibility, and inter-departmental relationships.
 Organizing function may also be defined as a process of integrating,
balancing, unifying, and coordinating the activities of employees and
different organizational departments for accomplishing predetermined
objectives.

5. Characteristics of organizing

6. Process of organizing

7. Re-engineering the organization
 First discussed by Michael Hammer in his 1990 article.
 Reengineering an organization, also known as Business Process Reengineering (BPR),
is the process of reviewing all the different levels of an organization’s way of doing
business and considering how to improve things.
 BPR requires an organization to look closely at its strengths and weaknesses, ask
difficult questions where necessary and make changes for the better of the
organization. This is usually a long-term project that requires input from a variety of
company departments.

8. Re-engineering the organization
Features of Organizational Reengineering
 Re-engineering cannot proceed without the full support of a company’s upper
management.
 With management’s approval, those responsible for reengineering must develop a clear
plan of review and a vision for what the results will yield.
 Reengineering is also known for using information technology to forecast a company's
goals and create the necessary databases and networks it can use to create smooth
business process.

9. Re-engineering the organization
How Business Process Reengineering works?
Business Process Reengineering is a dramatic change initiative that contains five major steps
that managers should take:
 Refocus company values on customer needs.
 Redesign core processes, often using information technology to enable improvements.
 Reorganize a business into cross-functional teams with end-to-end responsibility for a
process.
 Rethink basic organizational and people issues.
 Improve business processes across the organization.

10. Re-engineering the organization
Companies use BPR to
 increase company profits
 reduce cost and cycle time
 improved quality
 improve competitive advantage in the marketplace
 enhance public image.

11. Departmentation
Departmentation refers to the division of the whole enterprise into different
groups with a view to facilitate the administration of the enterprise. It leads to
grouping of both functions and personnel who are assigned to carry out the
allocated activity.
According to L. A. Allen – “Departmentation is the means of dividing a large
and monolithic functional organization into smaller, flexible, administrative
units.”

12. Departmentation - Features
 Increase in Efficiency
 Responsibility and Accountability
 Provide Specialization
 Sound System of Job Appraisal
 Economy-Oriented Budgeting

13. Departmentation - Importance
 Specialization
 Expansion
 Autonomy
 Responsibility
 Appraisal
 Management Development
 Communication and Control

14. Departmentation - Process
 Identification of work.
 Analysis of details of each work.
 Description of the function of the organization.
 Entrusting the functions to a separate person who has
specialized in the respective field and providing him with
suitable staff.
 Fixing the scope of authority and responsibility of the
departmental heads.

15. Departmentation - Types
https://www.brainkart.com/article/Types-of-Departmentation_37705/

16. Strategic Business Units
 A strategic business unit, popularly known as SBU, is a fully-functional
unit of a business that has its own vision and direction.
 SBU implies an independently managed division of a large company,
having its own vision, mission and objectives, whose planning is done
separately from other businesses of the company.
 SBUs are absolutely essential for multi product organizations. These
business units are basically known as profit centres. They are focused
towards a set of products and are responsible for each and every
decision / strategy to be taken for that particular set of products.

17. Examples of SBUs

18. Structure of SBU

19. Advantages of SBU
 Allows the organization to concentrate on the target audience.
 Fixes accountability at business level.
 Facilitates the distinct and in-depth business planning.
Disadvantages of SBU
 Increased expenses in terms of personnel and overhead expenses.
 Difficult to contact higher management.

20. Empowerment
 According to Bob Hayes, employee empowerment refers to the extent of an
employee’s belief about the authority he has to act in his own way in order to
increase quality.
 According to Patrick, empowering means permitting the employees to make
decisions and act within the organization.

21. Decentralization
Decentralization refers to a specific form of organizational structure where the top
management delegates decision-making responsibilities and daily operations to
middle and lower subordinates. The top management can thus concentrate on
making major decisions with greater time abundance. Businesses often feel the
requirement of decentralization to continue efficiency in their operation.
Decentralization in management can be understood as the orderly assignment of
authority, throughout the levels of management, in an organization. It describes the
way in which power to take decisions is allocated among various levels in the
organizational hierarchy. It refers to the dissemination of powers, functions and
responsibility, away from the central location.

22. Effective organizing

23. Organizational culture
 Organizational culture is the collection of values, expectations, and practices
that guide and inform the actions of all team members. Think of it as the
collection of traits that make your company what it is.
 Organizational culture includes an organization’s expectations, experiences,
philosophy, as well as the values that guide member behavior, and is expressed
in member self-image, inner workings, interactions with the outside world, and
future expectations. Culture is based on shared attitudes, beliefs, customs, and
written and unwritten rules that have been developed over time and are
considered valid (The Business Dictionary).
 Culture also includes the organization’s vision, values, norms, systems, symbols,
language, assumptions, beliefs, and habits (Needle, 2004).
 Organizational culture is “the way things are done around here” (Deal &
Kennedy, 2000).

24. Organizational culture

25. Organizational culture

26. Organizational culture

27. Organizational culture

28. Organizational culture
Dominant culture Vs. sub culture

29. Organizational culture - Strong Vs. Weak

30. Organizational culture

31. Recruitment
Recruiting is the process of discovering potential applicants for actual or
anticipated organizational vacancies.
According to Edwin B. Flippo, “Recruitment is the process of searching for
for prospective employees and stimulating them to apply for jobs in the
organisation.”

33. Recruitment process
The recruitment process is a procedure of classifying the job vacancy, studying the job necessities,
reviewing applications, screening, shortlisting and selecting the right candidate.

34. Internal Sources
Internal sources of recruitment, refer to hiring
employees within the organization through −
•Promotions
•Transfers
•Former Employees
•Internal Advertisements (Job Posting)
•Employee Referrals
•Previous Applicant
External sources of recruitment refer to hiring
employees outside the organization through −
•Direct Recruitment
•Employment Exchanges
•Employment Agencies
•Advertisements
•Professional Associations
•Campus Recruitment
•Word of Mouth

37. Selection
Selection is the process of examining the applicants with regard to
their suitability for the given job or jobs, and choosing the best from
the suitable candidates and rejecting the others.
According to Terrie Nolinske, “ Selection is the process of making a
hire or no-hire decision regarding each applicant for a job.

38. Importance of Selection
 Selects suitable candidate
 Determines applicant’s capabilities
 Places right candidates at right job
 Generates information about candidate
 Saves cost
 Effects organizational performance

39. Selection process

40. Differences between recruitment and selection
Basis of difference Recruitment Selection
Nature It is a positive process. It is a negative process.
Sequence It always precedes selection. It always succeeds recruitment.
Objective To attract maximum number
of candidates so that more
options are available.
To choose best out of the available
candidates.
Process Process of creating
application pool as large as
possible.
Process through which more and more
candidates are rejected and fewer
candidates are selected or sometimes
even not a single candidate is selected.
Technique Recruitment techniques are
not very intensive and do
not require highly specific
skills.
In selection process, highly specialised
techniques are required. Therefore, only
personnel with specific skills like
expertise in using selection tests,
conducting interviews, etc., are involved.
Contract of service It does not result in contract
of service.
It leads to contract of service between
employer and the selected candidate.
Outcome Outcome is application pool
which becomes input for
selection process.
Outcome is finalised candidates who will
be offered job.

41. Induction or Orientation
 Induction is the process for welcoming newly joined
employees and supporting them to adjust to their new
roles and working environments.
 Planned introduction of employees to their jobs, their co-
workers and the organization.
 Designed to provide new employees with the information
they need to work comfortably and effectively in the
organization.

42. Objectives of Induction
 To help a new employee overcome his natural shyness and
nervousness in meeting new people in the environment.
 To develop among the new employees a sense of belonging and
loyalty to the organization.
 To develop a close and cordial relationship between new
employees and their supervisor.
 To ensure that the new employees do not form negative or false
impression and attitude towards the organization or the job.
 To give new employees necessary information such as leave rules,
rest period, locker room etc.

43. Advantages of Formal Induction
 Formal induction helps to build up a two way channel of
communication between management and workers.
 Proper induction facilitates informal relations and team work
among employees.
 Effective induction helps to integrate the new employees with
the organization and to develop the sense of belonging.

44. Types of Induction programme
 Formal
 Informal
 Individual
 Collective

46. Career
A career is a long-term professional journey based on your passions. It is a path you
embark upon to fulfil your professional goals and ambitions.
Career is an occupation or a profession that one undertakes for a long period of his
life time and derives monetary benefit from it.
Career planning is a process of identifying the professional path that would suit
your personality, interests and goals. It involves exploring different career options,
performing a self-evaluation to test your suitability for these and finding the right
ways to get on a career track.
Career planning

48. Career Development
Career development is the process of choosing a career, improving your skills, and
advancing along a career path. It's a lifelong process of learning and decision-making
that brings you closer to your ideal job, skillset, and lifestyle.
Career development is an ongoing process of gaining knowledge and improving skills
that will help an individual to establish a career plan.

49. Career Development

50. Importance of Career Development
 Provides equal opportunity employment
 Improves quality of work-life of employees
 Increases the skill of the employees
 Reduces attrition of employees
 Improves the use of the employees
 Improves the organization’s overall performance
 Cost reduction strategies of the organization
 IT Innovations
 Economic Downsizing
 Delayering
https://www.openeducationportal.com/importance-of-career-development/
https://www.linkedin.com/pulse/imporance-career-development-prorgarm-organization-
abdullah-shahab/