BUSINESS MANAGEMENT

Introduction

Management is involved in coordinating all factors of production so that they can contribute positively to the organizational goals. Management is involved in utilization of human resources and other resources such as machinery, capital, information and time in the organization. In this chapter we will address the basic functions of a manager, skills that effective manager requires , roles that managers have in their organizations and various management levels and decisions made in each of this levels.

Definition
Management is the process of achieving organizational goals through engaging in the four major functions of planning, organizing, leading and controlling. Another defines management as the process of working with people and resources to accomplish organizational goals. Management involves coordinating and overseeing the work activities of others so that their activities are completed efficiently and effectively. (Coulter & Robbins 2007)

A more comprehensive definition of management states that management is a process of assembling and using resources (human, financial, material and information) in a goal directed manner to accomplish tasks in an organization. Managers are those individuals who bring together the money manpower materials and machinery necessary to operate a business. They make decision and decide course of action that the organization takes. A manager is someone who works with and through other people coordinating their work activities in order to accomplish organizational goals.

Management levels
Managers’ decisions vary with their level in the organization. Each level requires different skills too given the fact that they perform different functions. Top management includes president, chief executive officer, chief financial officer, and vice president (the titles may differ among organizations). The decisions that are made managers in this level are strategic in nature meaning they stretch over five years and cover the whole organization. Decisions in this level are also unstructured and include answering questions such as should we expand? How can we expand? (Is it through acquisition or merger or joint ventures?)

Middle level management includes position such as regional manager and departmental heads. They are responsible for business’s short-term decisions. Much of their work involves implementing in their region or department what the top managers have deliberated. The decision-making in this level is semi-structured since they have to conform to the top management decisions. First line management (supervisory) mostly oversees the employees who are engaged in day-to-day production process. They deal with issues such as employee absenteeism and customer complaints. (Madura 2007)

Management Functions

PLANNING
Planning is the function of management that involves setting objectives and determining a course of action for achieving these objectives. Planning requires that managers be aware of environmental conditions facing their organization and forecast future conditions. It also requires that managers be good decision-makers. Planning is a process consisting of several steps. The process begins with environmental scanning, which simply means that planners must be aware of the critical contingencies facing their organization in terms of economic conditions, their competitors, and their customers. Planners must then attempt to forecast future conditions. These forecasts form the basis for planning.

Planners must establish objectives, which are statements of what needs to be achieved and when. Planners must then identify alternative courses of action for achieving objectives. After evaluating the various alternatives, planners must make decisions about the best courses of action for achieving objectives. They must then formulate necessary steps and ensure effective implementation of plans. Finally, planners must constantly evaluate the success of their plans and take corrective action when necessary.
There are many different types of plans and planning.

1.Strategic Planning
Strategic planning involves analyzing competitive opportunities and threats, as well as the strengths and weaknesses of the organization, and then determining how to position the organization to compete effectively in their environment. Strategic planning has a long time frame, often three years or more. Strategic planning generally includes the entire organization and includes formulation of objectives. Strategic planning is often based on the organization’s mission, which is its fundamental reason for existence. An organization’s top management most often conducts strategic planning.

2.Tactical Planning
Tactical planning is intermediate-range planning that is designed to develop relatively concrete and specific means to implement the strategic plan. Middle-level managers often engage in tactical planning. Tactical planning often has a one- to three-year time horizon.

3.Operational Planning
Operational planning generally assumes the existence of objectives and specifies ways to achieve them. Operational planning is short-range planning that is designed to develop specific action steps that support the strategic and tactical plans. Operational planning usually has a very short time horizon, from one week to one year.

ORGANIZING
Organizing is the managerial function of arranging people and resources to work toward a goal. The purposes of organizing include but are not limited to determining the tasks to be performed in order to achieve objectives, dividing tasks into specific jobs, grouping jobs into departments, specifying reporting and authority relationships, delegating the authority necessary for task accomplishment, and allocating and deploying resources in a coordinated fashion.

Organizing plays a central role in the management process. Once plans are created the manager’s task is to see that they are carried out. Given a clear mission, core values, objectives, and strategy, the role of organizing is to begin the process of implementation clarifying jobs and working relationships. It identifies who is to do what, who is in charge of whom, and how different people and parts of the organization relate to and work with one another. All of this, of course, can be done in different ways. The strategic leadership challenge is to choose the best organizational form to fit the strategy and other situational demands.

Organizing Decisions
When organizing, managers must make decisions about the division of labour and work specialization, departmentalization, chain of command, span of management, centralization, and formalization. Collectively, these decisions are often called organizational design- the process of structuring an organization

Division of Labour or Specialization
Division of labour contributes to increased productivity and efficiency allowing workers to specialize and become proficient at a specific task. This principle, coupled with technological advances, has made possible the tremendous productivity of industrial companies during most of the twentieth century. By the 1940s most manufacturing jobs in developed nations were highly specialized, with workers performing specific, standardized, and repetitive tasks. This resulted in reduced staffing, training, and compensation costs, since highly skilled workers were often not necessary. In addition, since employees were doing the same task repetitively, they tended to become very good at it.

Despite the improvements in productivity made possible the division of labour, managers must be aware of the negative aspects of specialization: fatigue, stress, boredom, low quality products, absenteeism, and turnover. Such problems have led to programs geared toward job enlargement and job enrichment.

Departmentalization
After the work to be completed is organized into identifiable jobs through a process of dividing labour, jobs are then combined into logical sections or departments. Doing so allows for effective coordination of effort. There are many ways to departmentalize, each of which has important advantages and disadvantages. One of the most common forms is functional departmentalization, which involves grouping similar jobs into a common department, such as accounting, sales, human resources, and engineering. Another form is product departmentalization, which involves organizing around an enterprise’s various product lines. Other ways of departmentalizing include organizing customer and geographic territory. In practice, most large companies use a hybrid form of departmentalization, which means they combine one or more of the above methods to form their organizational structure.

Chain of Command
The chain of command is a line of authority extending from the top to the bottom of the organizational structure. Classic principles of organizing emphasize that one must be aware of the need to define the extent of managers’ responsibility and authority specifying their place in the chain of command. Another principle of organizing related to the chain of command is called the unity of command, which states that a person should have only one superior to whom he or she must report.

Span of Management
The span of management, often called the span of control, is the number of individuals who are directly responsible to a particular manager. A classic principle of organizing suggests that there are definite limits to the number of subordinates one manager can supervise effectively. When organizing, managers must keep these limits in mind. Wide spans of management lead to flatter organizational structures with fewer layers of management, and are thus considered more efficient. However, if spans become too wide managers may not be able to provide adequate direction to subordinates. Narrow spans of management lead to tall organizational structures with many layers of management. Although narrower spans of management allow for closer supervision of subordinates they have many drawbacks, including cost, communication problems, and difficulty in developing the initiative and autonomy of subordinates. In general, the trend is toward wider spans of management, with an accompanying decrease in management hierarchy. Technological advances in information processing and communication have made wider spans of management more feasible.

Degree of Centralization
Another organizing decision is the degree of centralization in the organizational structure. If decision-making authority in an organization is highly centralized, then most major decisions are made at the upper levels of the structure. Conversely, if decision-making authority is decentralized, important decisions are often made at lower levels of the hierarchy. The degree of centralization that is appropriate for a given organization depends upon many factors, including the nature of the environmental conditions that face the enterprise, the characteristics and abilities of lower-level employees, and the size of the enterprise. Many organizations are favouring a greater degree of decentralization of their decision-making authority.

Formalization
The degree of formalization in an enterprise refers to the degree to which there are standardized rules and procedures governing the activities of employees. A company with a high degree of formalization is characterized detailed job descriptions and clearly defined policies and procedures covering a wide variety of employee behaviours. Conversely, a company with a low level of formalization is characterized nonstructured jobs and fewer explicit policies and procedures.

As companies grow larger, a certain amount of formalization is inevitable. Employees require some direction in their job responsibilities and in the procedures required for consistency within the organization’s production schema. When organizing, however, managers should be aware of the costs of excessive formalization, which may include stifling employee creativity and innovation as well as slowing the organization’s responsiveness to critical issues and problems.

Factors Affecting Organizing Decisions
There is no standard formula for the best way to organize an enterprise. Several factors have been shown to influence organizing decisions. Among the most important of these factors are strategy, size, environmental conditions, and technology. Strategy Managers organize in order to achieve the objectives of the enterprise for which they work. Thus, the strategy of the enterprise affects organizing decisions. Changes in strategy frequently necessitate changes in the way the enterprise is organized.

1.Size
Small enterprises tend to exhibit less formalization, centralization, and complexity in their organizational structure. Nevertheless, enterprises of the same size may be organized quite differently because of differences in strategy, environmental conditions, and technology.

2.Environmental Conditions
The key factor in the external environment that is relevant to organizing is uncertainty. Some enterprises face competitive environments that change rapidly and are quite complex, while others face relatively stable conditions. Generally, turbulent environments call for organizing decisions that lead to less formalization and centralization in the organizational structure.

3.Technology
The processes which an enterprise transforms inputs into outputs may also affect organizing decisions. Some research suggests that organizing decisions that lead to high degrees of formalization, centralization, and work specialization are more appropriate for routine technologies and that the converse is true for non-routine technologies.

Organization structure
Organizational structure – is the formal system of task and reporting relationships that controls, coordinates, and motivates employees so that they cooperate to achieve an organization’s goals. Organizational design – is the process which managers select and manage various dimensions and components of organizational structure and culture so that an organization can achieve its goals.
Structure and culture affect:

  • Behaviour
  • Motivation
  • Performance
  • Teamwork and cooperation
  • Inter-group and Interdepartmental relationships

What bearing does organizational design have on organizational behaviour? The way a structure or culture is designed or evolves over time affects the way people and groups behave within the organization. Once an organization decides how it wants its members to behave, what attitudes it wants to encourage, and what it wants its members to accomplish, it can then design its structure and encourage the development of the cultural values and norm to obtain these desired attitudes, behaviours, and goals.

How does an organization determine which attitudes and behaviours to encourage? An organization bases these design decisions on the contingencies it faces (a contingency is any event that might possibly occur and thus must be taken into account in planning).
The three major contingencies that determine what kind of structure and culture an organization designs:

  • Organization’s environment
  • Technology an organization uses
  • Organization’s strategy.

In developing an organizational structure, managers must decide how to differentiate and group an organization’s activities function and division in a way that achieves organizational goals effectively.’ The result of this process can be most easily seen in an organizational chart that shows the relationship between an organization’s functions and divisions.

Types of organizational structures

Functional Structure
Functional structure groups people together because they hold similar positions in an organization, perform a similar set of tasks, or use the same kind of skills. This division of labour and specialization allows an organization to become more effective.

Advantages of a Functional Structure

Coordination Advantages
1.Easy communication among specialists – People grouped together according to similarities in their positions can easily communicate and share information with each other.
2.Quick decisions – People who approach problems from the same perspective can often make decisions more quickly and effectively than can people whose perspectives differ.
3.Learning – Makes it easier for people to learn from one another’s experiences.

Thus a functional structure helps employees improve their skills and abilities and thereenhances individual and organizational performance.

Motivation Advantages
1.Facilitates performance evaluation for supervisor – Supervisors are in a good position to monitor individual performance, reward high performance, and discourage social loafing. Functional supervisors find monitoring easy because they usually possess high levels of skill in the particular function.
2.Facilitates performance evaluation for peers – Allows group members to monitor and control one another’s behaviour and performance levels.
3.Creates teamwork – Can also lead to the development of norms, values, and group cohesiveness that promote high performance.
4.Creates a career ladder – Functional managers and supervisors are typically workers who have been promoted because of their superior performance.

Disadvantages of a Functional Structure
1.Serving needs of all products – When the range of products or services that a company produces increases, the various functions can have difficulty
2.Coordination – As organizations attract customer with different needs, they may find it hard to service these different needs using a single set of functions.
3.Serving needs of all regions – As companies grow, they often expand their operations nationally, and servicing the needs of different regional customers using a single se of manufacturing, sales, or purchasing functions becomes very difficult.

Divisional Structures: Product, Market, and Geographic
A divisional structure that overlays functional groupings allow an organization to coordinate inter-group relationships more effectively than does a functional structure

Product Structure
Each product division contains the functions necessary to that service the specific goods or services it produces.

What are the advantages of a product structure?
It increases the division of labour so that the number similar products can be increased (such as a wider variety of appliances like stoves, or ovens) expand into new markets and produce totally new kinds of products (such as when an appliance maker starts to produce computers or air planes).

Market Structure
Market Structure – Group functions into divisions that can be responsive to the needs of particular types of customers.

Geographic Structure
An organization facing the problem of controlling its activities on a national or international level is likely to use a geographic structure and group functions into regional divisions to service customers in different geographic areas. Each geographic division has access to a full set of the functions it needs to provide its goods and services.

Advantages of a Divisional Structure

Coordination Advantages
1.Quality products and customer service – Functions are able to focus their activities on a specific kind of good, service, or customer. This narrow focus helps a division to create high-quality products and provide high-quality customer service.
2.Facilitates communication – between functions improve decision making, thereincreasing performance.
3.Customized management and problem solving – A geographic structure puts managers closer to the scene of operations than are managers at central headquarters. Regional managers are well positioned to be responsive to local situations such as the needs of regional customers and to fluctuations in resources. Thus regional divisions are often able to find solutions to regionspecific problems and to use available resources more effectively than are managers at corporate headquarters.
4.Facilitates teamwork – People are sometimes able to pool their skills and knowledge and brainstorm new ideas for products or improved customer service.
5.Facilitates decision making – As divisions develop a common identity and approach to solving problems, their cohesiveness in- creases, and the result is improved decision making.

Motivation Advantages
1.Clear connection between performance and reward – A divisional structure makes it relatively easy for organizations to evaluate and reward the performance of individual divisions and their managers and to assign rewards in a way that is closely linked to their performance. Corporate managers can also evaluate one regional operation against another and thus share ideas between regions and find ways to improve performance.
2.Customized service – regional managers and employees are close to their customers and may develop personal relationships with them-relationships that may give those managers and employees extra incentive to perform well.
3.Identification with division – employees’ close identification with their division can increase their commitment, loyalty, and job satisfaction.

Disadvantages of a Divisional Structure
1.High operating and managing costs – because each division has its own set of functions, operating costs- the costs associated with managing an organization-increase. The number of managers in an organization, for example, increases, because each division has its own set of sales managers, manufacturing managers, and so on. There is also a completely new level of management, the corporate level, to pay for.
2.Poor communication between divisions – Divisional structures normally have more managers and more levels of management than functional structures have, communications problems can arise as various managers at various levels in various divisions attempt to coordinate their activities.
3.Conflicts among divisions – divisions may start to compete for organizational resources and may start to pursue divisional goals and objectives at the expense of organizational ones.

Matrix Structure
A complex form of differentiation that some organizations use to control their activities results in the matrix structure, which simultaneously groups people in two ways- the function of which they are a member and the product team on which they are currently working In practice, the employees who are members of the product teams in a matrix structure have two bosses-a functional boss and a product boss.

Coordination Advantages
1.Facilitates rapid product development
2.Maximizes communication and cooperation between team members
3.Facilitates innovation and creativity
4.Facilitates face-to-face problem solving (through teams)
5.Provides a work setting in which managers with different functional expertise can cooperate to solve non-programmed decision-making problems.
6.Facilitates frequent changes of membership in product teams

Motivation Advantages
The matrix structure provides a work setting in which such employees are given the freedom and autonomy to take responsibility for their work activities.

Disadvantages of a Matrix Structure
1.Increase role conflict and role ambiguity- Two bosses making conflicting demands on a two-boss employee cause role conflict. Reporting relationships in the matrix makes employees vulnerable to role ambiguity.
2.High levels of work stress- Conflict and ambiguity can increase feelings of stress. Difficulty employees have in demonstrating their personal contributions to team performance because they move so often from one team  another.
3.Limited opportunities for promotion- because most movement is lateral, from team to team, not vertical to upper management positions.

The extent of these problems explains why matrix structures are used only companies that depend on rapid product development for their survival and that manufacture products designed to meet specific customer needs. Matrix structures are especially common in high-tech and biotechnology companies.

STAFFING
The managerial function of staffing involves manning the organization structure through proper and effective selection, appraisal and development of the personnel to fill the roles assigned to the employers/workforce. According to Theo Haimann, “Staffing pertains to recruitment, selection, development and compensation of subordinates.”

Nature of Staffing Function
1.Staffing is an important managerial function- Staffing function is the most important managerial act along with planning, organizing, directing and controlling. The operations of these four functions depend upon the manpower which is available through staffing function.
2.Staffing is a pervasive activity- As staffing function is carried out all mangers and in all types of concerns where business activities are carried out.
3.Staffing is a continuous activity- This is because staffing function continues throughout the life of an organization due to the transfers and promotions that take place.
4.The basis of staffing function is efficient management of personnel- Human resources can be efficiently managed a system or proper procedure, that is, recruitment, selection, placement, training and development, providing remuneration, etc.
5.Staffing helps in placing right men at the right job. It can be done effectively through proper recruitment procedures and then finally selecting the most suitable candidate as per the job requirements.
6.Staffing is performed all managers depending upon the nature of business, size of the company, qualifications and skills of managers etc. In small companies, the Staffing Process – Steps involved in Staffing

Manpower requirements– The very first step in staffing is to plan the manpower inventory required a concern in order to match them with the job requirements and demands. Therefore, it involves forecasting and determining the future manpower needs of the concern.
Recruitment– Once the requirements are notified, the concern invites and solicits applications according to the invitations made to the desirable candidates.
Selection– This is the screening step of staffing in which the solicited applications are screened out and suitable candidates are appointed as per the requirements.
Orientation and Placement– Once screening takes place, the appointed candidates are made familiar to the work units and work environment through the orientation programmes. Placement takes place putting right man on the right job.
Training and Development– Training is a part of incentives given to the workers in order to develop and grow them within the concern. Training is generally given according to the nature of activities and scope of expansion in it. Along with it, the workers are developed providing them extra benefits of in-depth knowledge of their functional areas. Development also includes giving them key and important jobs as a test or examination in order to analyze their performances.
Remuneration– It is a kind of compensation provided monetarily to the employees for their work performances. This is given according to the nature of job- skilled or unskilled, physical or mental, etc. Remuneration forms an important monetary incentive for the employees.
Performance Evaluation- In order to keep a track or record of the behaviour, attitudes as well as opinions of the workers towards their jobs, regular assessment is done to evaluate and supervise different work units in a concern. It is basically concerning to know the development cycle and growth patterns of the employees in a concern.
Promotion and transfer-Promotion is said to be a non- monetary incentive in which the worker is shifted from a higher job demanding bigger responsibilities as well as shifting the workers and transferring them to different work units and branches of the same organization.

Manpower Planning
Manpower Planning which is also called as Human Resource Planning consists of putting right number of people, right kind of people at the right place, right time, doing the right things for which they are suited for the achievement of goals of the organization. Human Resource Planning has got an important place in the arena of industrialization. Human Resource Planning has to be a systems approach and is carried out in a set procedure. The procedure is as follows:

  • Analyzing the current manpower inventory
  • Making future manpower forecasts
  • Developing employment programmes
  • Design training programmes

Analyzing the current manpower inventory- Before a manager makes forecast of future manpower, the current manpower status has to be analyzed. For this the following things have to be noted-

  • Type of organization
  • Number of departments
  • Number and quantity of such departments
  • Employees in these work units

Once these factors are registered a manager, he goes for the future forecasting. Making future manpower forecasts- Once the factors affecting the future manpower forecasts are known, planning can be done for the future manpower requirements in several work units. The Manpower forecasting techniques commonly employed the organizations are as follows:

  1. Expert Forecasts: This includes informal decisions, formal expert surveys and Delphi technique.
  2. Trend Analysis: Manpower needs can be projected through extrapolation (projecting past trends), indexation (using base year as basis), and statistical analysis (central tendency measure).
  3. Work Load Analysis: It is dependent upon the nature of work load in a department, in a branch or in a division.
  4. Work Force Analysis: Whenever production and time period has to be analyzed, due allowances have to be made for getting net manpower requirements.
  5. Other methods: Several Mathematical models, with the aid of computers are used to forecast manpower needs, like budget and planning analysis, regression, new venture analysis.

Developing employment programmes– Once the current inventory is compared with future forecasts, the employment programmes can be framed and developed accordingly, which will include recruitment, selection procedures and placement plans.
Design training programmes– These will be based upon extent of diversification, expansion plans, development programmes etc. Training programmes depend upon the extent of improvement in technology and advancement to take place. It is also done to improve upon the skills, capabilities, knowledge of the workers.

Importance of Manpower Planning

  1. Key to managerial functions- The four managerial functions, i.e., planning, organizing, directing and controlling are based upon the manpower.
  2. Efficient utilization- Efficient management of personnel’s becomes an important function in the industrialization world of today. Setting of large scale enterprises requires management of large scale manpower. It can be effectively done through staffing function.
  3. Motivation- Staffing function not only includes putting right men on right job, but it also comprises of motivational programmes, i.e., incentive plans to be framed for further participation and employment of employees in a concern. Therefore, all types of incentive plans become an integral part of staffing function.
  4. Better human relations- A concern can stabilize itself if human relations develop and are strong. Human relations become strong trough effective control, clear communication, effective supervision and leadership in a concern. Staffing function also looks after training and development of the work force which leads to co-operation and better human relations.
  5. Higher productivity- Productivity level increases when resources are utilized in best possible manner. Higher productivity is a result of minimum wastage of time, money, efforts and energies. This is possible through the staffing and it’s related
    activities ( Performance appraisal, training and development, remuneration)

Need of Manpower Planning
Manpower Planning is a two-phased process because manpower planning not only analyses the current human resources but also makes manpower forecasts and theredraw employment programmes. Manpower Planning is advantageous to firm in following manner:

  • Shortages and surpluses can be identified so that quick action can be taken wherever required.
  • All the recruitment and selection programmes are based on manpower planning.
  • It also helps to reduce the labour cost as excess staff can be identified and thereoverstaffing can be avoided.
  • It also helps to identify the available talents in a concern and accordingly training programmes can be chalked out to develop those talents.
  • It helps in growth and diversification of business. Through manpower planning, human resources can be readily available and they can be utilized in best manner.
  • It helps the organization to realize the importance of manpower management which ultimately helps in the stability of a concern.

Obstacles in Manpower Planning
Following are the main obstacles that organizations face in the process of manpower planning:

  1. Under Utilization of Manpower: The biggest obstacle in case of manpower planning is the fact that the industries in general are not making optimum use of their manpower and once manpower planning begins, it encounters heavy odds in stepping up the utilization.
  2. Degree of Absenteeism: Absenteeism is quite high and has been increasing since last few years.
  3. Lack of Education and Skilled Labour: The extent of illiteracy and the slow pace of development of the skilled categories account for low productivity in employees. Low productivity has implications for manpower planning.
  4. Manpower Control and Review:
  • Any increase in manpower is considered at the top level of management
  • On the basis of manpower plans, personnel budgets are prepared. These act as control mechanisms to keep the manpower under certain broadly defined limits.
  • The productivity of any organization is usually calculated using the formula:
    Productivity = Output / Input
    But a rough index of employee productivity is calculated as follows:
    Employee Productivity = Total Production / Total no. of employees
  • Exit Interviews, the rate of turnover and rate of absenteeism are source of vital information on the satisfaction level of manpower. For conservation of Human Resources and better utilization of men studying these conditions, manpower control would have to take into account the data to make meaningful analysis.
  • Extent of Overtime: The amount of overtime paid may be due to real shortage of men, ineffective management or improper utilization of manpower. Manpower control would require a careful study of overtime statistics.

Types of Recruitment
Recruitment is of 2 types

  1. Internal Recruitment – is a recruitment which takes place within the concern or organization. Internal sources of recruitment are readily available to an organization. Internal sources are primarily three – Transfers, promotions and Reemployment of ex-employees. Re-employment of ex-employees is one of the internal sources of recruitment in which employees can be invited and appointed to fill vacancies in the concern. There are situations when ex-employees provide unsolicited applications also. Internal recruitment may lead to increase in employee’s productivity as their motivation level increases. It also saves time, money and efforts. But a drawback of internal recruitment is that it restrains the organization from new blood. Also, not all the manpower requirements can be met through internal recruitment. Hiring from outside has to be done.
    Internal sources are primarily 3:
  • Transfers
  • Promotions (through Internal Job Postings) and
  • Re-employment of ex-employees – Re-employment of ex-employees is one of the internal sources of recruitment in which employees can be invited and appointed to fill vacancies in the concern. There are situations when ex-employees provide unsolicited applications also.

2.External Recruitment – External sources of recruitment have to be solicited from outside the organization. External sources are external to a concern. But it involves lot of time and money .The external sources of recruitment include – Employment at factory gate, advertisements, employment exchanges, employment agencies, educational institutes, labour contractors, recommendations etc.

  • Employment at Factory Level – This a source of external recruitment in which the applications for vacancies are presented on bulletin boards outside the Factory or at the Gate. This kind of recruitment is applicable generally where factory workers are to be appointed. There are people who keep on soliciting jobs from one place to another. These applicants are called as unsolicited applicants. These types of workers apply on their own for their job. For this kind of recruitment workers have a tendency to shift from one factory to another.
  • Advertisement – It is an external source which has got an important place in recruitment procedure. The biggest advantage of advertisement is that it covers a wide area of market and scattered applicants can get information from advertisements. Medium used is Newspapers and Television.
  • Employment Exchanges – There are certain Employment exchanges which are run government. Most of the government undertakings and concerns employ people through such exchanges. Now-a-days recruitment
    in government agencies has become compulsory through employment exchange.
  • Employment Agencies – There are certain professional organizations which look towards recruitment and employment of people, i.e. these private agencies run private individuals supply required manpower to
    needy concerns.
  • Educational Institutions – There are certain professional Institutions which serve as an external source for recruiting fresh graduates from these institutes. This kind of recruitment done through such educational
  • Recommendations – There are certain people who have experience in a particular area. They enjoy goodwill and a stand in the company. There are certain vacancies which are filled recommendations of such people. The biggest drawback of this source is that the company has to rely totally on such people which can later on prove to be inefficient.
  • Labour Contractors – These are the specialist people who supply manpower to the Factory or Manufacturing plants. Through these contractors, workers are appointed on contract basis, i.e. for a particular time period. Under conditions when these contractors leave the organization, such people who are appointed have to also leave the concern.
(Visited 8 times, 1 visits today)
Share this:

Written by