Management Sciences

Friday, May 2, 2008

Interview and its types

INTERVIEW AND ITS TYPES
INTERVIEW
The interview is the most universally used selection method. Although many employees do no use tests to aid in reaching an employment decision, there are hardly any who de not interviews the applicant in order to help make a definite assessment. In fact, multiple interviews are commonly employed. Interview permits the interviewer that be can inquire deep problem into person’s home; home background
· Education
· Previous work experience
· Other pertinent areas
DALES BEACH
“An interview is a conversation or verbal interaction, normally between to or more people for a particular purpose”
OBJECTIVES OF SELECTION INTERVIEW
There are three main objectives or goals, following are given.
1. The interview seeks to obtain enough knowledge about candidates to determine whether they are suitable for employment in the organization.
2. Giving of sufficient information about the organization, the job and the people such that applicant project the job which of offered.
3. To deal with the candidates in such a manner as to maintain and create goodwill towards company and its management.
TYPES OF INTERVIEWS
Interviews can be classified according to the techniques and structure utilities, such as method of categories interviews would be, planned, patterned, stress, and panel ,
PLANNED INTERVIEW
It is also called as depth interview or action interview. Under such method as interviewer known subject area about which the question will be asked. They put various questions seen as about;
· Present domestic condition
· Education
· Previous work experience
· Social adjustment
· Attitudes and recreational interest
The subject is to talk the individuals freely and it is necessary to provide information about
· The organization
· Nature of work
· Pay grade
· Opportunities for advancement and demand mad on employees
The candidates must given sufficient information to decide whether the employment opportunity is suitable for him or her.
PATTERNED INTERVIEW
It is sometimes called the standardized interview uses as its basis as extremely comprehensive questionnaire. Therefore, it is highly structured. Two best known patterned interview procedures are the;
· Mc Murry patterned interview
· Diagnostic interview’s guide developed by E.F Wonderlic
Mc Murry has prepared different interview forms for;
· Office and factory jobs
· Sale positions
· Executive positions
Patterned interview forms ask so many detailed questions no stone is left unurned
In exploring the;
· Background
· Knowledge
· Attitude
· Motivation of the seekers
STRESS IN INTERVIEW
Stress interview was developed during would war by thdsfa e the united government. Under such interview the interviewers try to frustrate and annoy the candidates. They try to cause the candidates to lose control of or her emotions. Something, the candidates is assigned a problem of unusual difficulty and with considerable annoyances thrown in to the situation.
The object behind the stress interview is to find those persons who are able to maintain control over their behavior when their emotions are highly provoked.
The stress interview should be used only by some specific trained persons for those occupations in which action under stress is as essential element of the job such as;
· Army work
· Police work
· Secret agents
PANEL INTERVIEW
The panel interview is often called an Examing Board. In panel interview there are here or more interviews who take interview from job candidates. The panel technique is often used for various governmental jurisdictions to select employees in;
· Professional
· Administrative classifications
Panel interview technique permits more comprehensive investigation of applicant because there are several questions which are asked from candidates and when candidates left the room, the panel members discuss about their individual interpretations of performance.

Testing

TESTING, CONCEPT OF TESTING AND TYPES OF TESTING
In our society psychological tests are used for varieties of purposes.
· They are used in public and private schools and for guidance and counseling student, for vocational guidance for adults seeking help in their carriers.
· Not only are tests used as an aid for selecting new employees for the organization, but also for promotion of employees and selection of best employees.
The term psychological test is commonly used because psychologists have done the most work in developing tests and their special province. Some various authors have defined tests different ways.
CROBBACH
LEE J. CRONBACH in his book “Essential of psychological testing”
Says “Testing is a systematic procedure for observing a person’s behavior and describing it with the aid of a numerical scale or a category system”
MILTON L. BLUM
In his book “industrial psychology and its social foundation”
“Test is a sample of an aspect of an individual’s behavior, performance or attitude”
HARRITE GORLIN
In his book “Personnel practice, recruitment, placement, training, communication and information”
“Test is a systematic procedure for sampling human behavior”
TESTING CONCEPTS
Following are the main testing concepts and methods that are essential to a sound understanding of how to use tests in a practical situation.
RELIABILITY
The reliability of a test is the consistency with which it yields the same source through a series of measurements. A considerable number of factors can cause a test to have low reliability of a test. If a test is not administrated under standardized conditions.
DETERMINATION OF RELIABLITY
There exist four different ways in which the reliability of a test can be determined. More precisely there are four types of test reliability.
These are;
· Equivalent form
· Test rest
· Split half and
· Odd even item split
The reliability CAE readily be determined by the test designer and is commonly reported in the manual.
VALIDITY
The validity of test is the degree to which it measures what is intended to measure. In an employment situation a valid test is one that accurately predicts the criterion is a measurement of how satisfactory and employee is on the job or is the total employment situation. Actually there are five distinct kinds of validity.
· Concurrent validity
· Predictive
· Content validity
· Construct validity
CONCURRENT VALIDITY
Concurrent validity refers to the degree to which test scores relate to the performance of employees presently on payroll.
PREDICTIVE VALIDITY
Predictive validity is determined by giving the test in question to all who apply for job.
CONTENT VALIDITY
Content validity is a concept employed by ht e psychologists to explain just what a particular test is measuring.
FACE VALIDITY
It is simple refers to whether the test questions seem to relate to job.
In summary then, the most important types of validity for personnel management purpose are concurrent, predictive and content.
COEFICIENT OF CORRELATION
Correlation is a statistic concept that indicates the degree of classiness of relationship between tow series of numbers. In selection testing, it is applied to both reliability and validity.
However, it should be noted that a high degree of and another does not necessary mean that the first measure relates closely to the second. It may be actually being that the first factor causes the second, or it may be that both some other common factor that has not been determined.





Planning

Leaders are proactive. They make change happen instead of reacting to change. The future requires corporate leadership with the skills to integrate many unexpected and seemingly diverse events into its planning. Every organization must plan for change in order to reach its ultimate goal. Effective planning helps an organization adapt to change by identifying opportunities and avoiding problems. It sets the direction for the other functions of management and for teamwork. Planning improves decision-making. All levels of management engage in planning.
Strategic Planning
Strategic planning produces fundamental decisions and actions that shape and guide what an organization is, what it does, and why it does it. It requires broad-scale information gathering, an exploration of alternatives, and an emphasis on the future implications of present decisions. Top level managers engage chiefly in strategic planning or long range planning. They answer such questions as "What is the purpose of this organization?" "What does this organization have to do in the future to remain competitive?" Top level managers clarify the mission of the organization and set its goals. The output needed by top management for long range planning is summary reports about finances, operations, and the external environment.
Strategic planning is the process of developing and analyzing the organization's mission, overall goals, general strategies, and allocating resources. A strategy is a course of action created to achieve a long-term goal. The time length for strategies is arbitrary, but is probably two, three, or perhaps as many as five years. It is generally determined by how far in the future the organization is committing its resources. Goals focus on desired changes. They are the ends that the organization strives to attain. Traditionally strategic planning has been done annually. However, many companies are doing away with annual business plans altogether and moving to a system of continuous planning, to permit quicker response to changing conditions. Thus, the strategic plan involves adapting the organization to take advantage of opportunities in its constantly changing environment.
Chunka Mui and Larry Downes in Unleashing the Killer App: Digital Strategies for Market Dominance (Harvard Business School Press, 1998) suggest that strategic planning will be replaced by "digital strategy." They make the argument that business change originates with technology -- particularly with new computer-based products and services that transform industries, the way American Airlines' SABRE system transformed travel. Top management must formulate digital strategies (software and digitally delivered services) that not only support business but also actually dictate how business is done.
The planning process is rational and amenable to the scientific approach to problem solving. It consists of a logical and orderly series of steps. Strategic planning sets the stage for the rest of the organization's planning. The tasks of the strategic planning process include:
*Define the mission. *Conduct a situation or SWOT analysis by assessing strengths and weaknesses and identifying opportunities and threats. *Set goals and objectives. *Develop related strategies (tactical and operational). *Monitor the plan.






Define the mission. A mission is the purpose of the organization. It is why the organization exists. Thus, planning begins with clearly defining the mission of the organization. The mission statement is broad, yet clear and concise, summarizing what the organization does. It directs the organization, as well as all of its major functions and operations, to its best opportunities. Then, it leads to supporting tactical and operational plans, which, in turn leads to supporting objectives. A mission statement should be short - no more than a single sentence. It should be easily understood and every employee should be able to recite it from memory. An explicit mission guides employees to work independently and yet collectively toward the realization of the organization's potential. The mission statement may be accompanied by an overarching statement of philosophy or strategic purpose intended to convey a vision for the future and an awareness of challenges from a top-level perspective.
Conduct a situation or SWOT analysis by assessing strengths and weaknesses and identifying opportunities and threats. A situation or SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis is critical to the creation of any strategic plan. The SWOT analysis begins with a scan of the external environment. Organizations must examine their situation in order to seek opportunities and monitor threats. Sources of information include customers (internal and external), suppliers, governments (local, state, federal, international), professional or trade associations (conventions and exhibitions), journals and reports (scientific, professional, and trade).
SWOT is the assumptions and facts on which a plan will be based. Analyzing strengths and weaknesses comprises the internal assessment of the organization. Assess the strengths of the organization. What makes the organization distinctive? (How efficient is our manufacturing? How skilled is our workforce? What is our market share? What financing is available? Do we have a superior reputation?) Assess the weaknesses of the organization. What are the vulnerable areas of the organization that could be exploited? (Are our facilities outdated? Is research and development adequate? Are our technologies obsolete?) What does the competition do well?
Analyzing opportunities and threats comprises the external assessment of the environment. Identify opportunities. In which areas is the competition not meeting customer needs? (What are the possible new markets? What is the strength of the economy? Are our rivals weak? What are the emerging technologies? Is there a possibility of growth of existing market?) Identify threats. In which areas does the competition meet customer needs more effectively? (Are there new competitors? Is there a shortage of resources? Are market tastes changing? What are the new regulations? What substitute products exist?) The best strategy is one that fits the organization's strengths to opportunities in the environment.
The SWOT analysis is used as a baseline for future improvement, as well as gap analysis. Comparing the organization to external benchmarks (the best practices) is used to assess current capabilities. Benchmarking systematically compares performance measures such as efficiency, effectiveness, or outcomes of an organization against similar measures from other internal or external organizations. This analysis helps uncover best practices that can be adopted for improvement. (See Camp, R. C. Benchmarking: The search for industry best practices that lead to superior performance. Norcross, GA: Industrial Engineering and Management Press, 1993.) Benchmarking with other organizations can help identify a gap. Gap analysis identifies the progress required to move the organization from its current capabilities to its desired future state. In this way, the organization can adapt to the best practices to improve organizational performance.
Set goals and objectives. Strategic goals and objectives are developed to bridge the gap between current capability and the mission. They are aligned with the mission and form the basis for the action plans. Objectives are sometimes referred to as performance goals. Generally, organizations have long-term objectives for such factors as return on investment, earnings per share, or size. Furthermore, they set minimum acceptable standards or common-sense minimums. In addition, certain limitations, either explicit or implicit, such as "must provide jobs for existing employees" may exist. Objectives elaborate on the mission statement and constitute a specific set of policy, programmatic, or management objectives for the programs and operations covered in the strategic plan. They are expressed in a manner that allows a future assessment of whether an objective has been achieved.
Develop related strategies (tactical and operational). Tactical plans are based on the organization's strategic plan. In turn, operational plans are based on the organization's tactical plans. These are specific plans that are needed for each task or supportive activity comprising the whole. Strategic, tactical, and operational planning must be accompanied by controls. Monitoring progress or providing for follow-up is intended to assure that plans are carried out properly and on time. Adjustments may need to be made to accommodate changes in the external and/or internal environment of the organization. A competitive advantage can be gained by adapting to the challenges.
Tactical Plans
Top level managers set very general,
long-term goals that require more than one year to achieve. Examples of long-term goals include long-term growth, improved customer service, and increased profitability. Middle managers interpret these goals and develop tactical plans for their departments that can be accomplished within one year or less. In order to develop tactical plans, middle management needs detail reports (financial, operational, market, external environment). Tactical plans have shorter time frames and narrower scopes than strategic plans. Tactical planning provides the specific ideas for implementing the strategic plan. It is the process of making detailed decisions about what to do, who will do it, and how to do it.
Operational Plans
Supervisors implement operational plans that are short-term and deal with the day-to-day work of their team. Short-term goals are aligned with the long-term goals and can be achieved within one year. Supervisors set standards, form schedules, secure resources, and report progress. They need very detailed reports about operations, personnel, materials, and equipment. The supervisor interprets higher management plans as they apply to his or her unit. Thus, operational plans support tactical plans. They are the supervisor's tools for executing daily, weekly, and monthly activities. An example is a budget, which is a plan that shows how money will be spent over a certain period of time. Other examples of planning by supervisors include scheduling the work of employees and identifying needs for staff and resources to meet future changes. Resources include employees, information, capital, facilities, machinery, equipment, supplies, and finances.
Operational plans include policies, procedures, methods, and rules. The terms themselves imply different degrees of scope. A policy is a general statement designed to guide employees' actions in recurring situations. It establishes broad limits, provides direction, but permits some initiative and discretion on the part of the supervisor. Thus, policies are guidelines. A procedure is a sequence of steps or operations describing how to carry out an activity and usually involves a group. It is more specific than a policy and establishes a customary way of handling a recurring activity. Thus, less discretion on the part of the supervisor is permissible in its application. An example of a procedure is the sequence of steps in routing of parts. A method sets up the manner and sequence of accomplishing a recurring, individual task. Almost no discretion is allowed. An example of a method is the steps in cashing a check. A rule is an established guide for conduct. Rules include definite things to do and not to do. There are no exceptions to the rules. An example of a rule is "No Smoking."
Monitor the plan. A systematic method of monitoring the environment must be adopted to continuously improve the strategic planning process. To develop an environmental monitoring procedure, short-term standards for key variables that will tend to validate the long-range estimates must be established. Although favorable long-range values have been estimated, short-term guidelines are needed to indicate if the plan is unfolding as hoped. Next, criteria must be set up to decide when the strategy must be changed. Feedback is encouraged and incorporated to determine if goals and objectives are feasible. This review is used for the next planning cycle and review.
Goals
Discussion
Review

Motivation


MOTIVATION
Many people incorrectly view motivation as a person trait that is a trait that some people have and other do not. Motivation and rewarding employees is of the most important activities that manager performs. Successful managers perform it in a better way.
S.P ROBBINS
“The willingness to exert high levels of effort to reach organizational goals, condition by the efforts ability to satisfy some individual need”
COURTCAND L BOVEE
“The face that moves people to initiate, direct and indirect situation behavior and action”
It means to prepare employee mentally to do work by satisfying their needs for the best interest of organization so that activities effectively and efficiently performed.
EARLY THEORIES OF MOTIVATIO
The 1950s is a fruitful time for the development of motivation concept. Three specific theories were formulated during this period. Although now somewhat questionable in term of validity are probable still best known explanations for employee’s motivation.
Up till now we known these theories at least two reasons:
· They represent the foundation from which contemporary theories of motivation were developed
· Regularly use by manager to explain the employees motivation.
MASLOWS’S HIERARCHY OF NEED THEORY:
The best know theory of motivation is probably Abraham Maslow’s of needs theory. Maslow was humanistic psychologist who proposed that within every person is a hierarchy of five needs.
This theory is step forward in understanding the complexity of human needs. Maslow argued that people are universally motivated to satisfy a sequence of five categories of needs.
They start the addressing the basic needs and then they advance up the hierarchy as they seek to satisfy each progressively higher need.
CHART OF MASLOW’S HIERARCH OF NEEDS THEORY


PHISOLOGICAL NEEDS
The lower level of needs in Maslow’s hierarchy including the elements that ensures basic human survival.
A person’s needs for food, drink, shelter, sexual satisfaction and other physical needs. It is satisfied by proper arrangement of air, heat, and adequate pay.
SAFTEY NEEDS
Safety needs relates to the a security and protection from physical needs will continue to be met, these are connected with the;
· Safety working condition
· Fob security
· Medical insurance and retirement plan.
SOCIAL NEEDS
These needs for sense of belongingness, affection, acceptance, and friendship. When fulfilled the result in the shape of friendly management and teamwork. The manager can achieve success.
ESTEEM NEEDS OR EGO
The internal esteem factor or needs for self respect, autonomy, and achievement. The external esteem needs for status, reorganization, and attention. These needs by seeking common dot ions, awards, promotion.
SELF-ACTUALIZATION NEEDS
The highest level of needs in a Maslow’s hierarchy, reflecting the needs to realize achieve one’s full potential and self fulfillment the derive to become what one is capable of becoming.
Maslow spread the five needs into higher and lower levels. In lower level safety and physiological needs stand while in higher level self-actualization and esteem needs stands.
People satisfy their lower level needs. Before they can progress up the hierarchy to satisfy high level needs. As lower level needs are satisfied then main motivation is to satisfy higher level of needs.
MACGREDOR’S THEORY X AND Y
Douglas McGregor is best known for his formulation of two sets of assumptions about human nature. One is a negative view label theory X and other has a positive view labeled theory Y.
THEORY X
“The assumptions that employees dislike work is lazy avoid responsibility, and must be coerced to perform”
THEORY Y
“The assumption that employees are creative, enjoy work seek responsibility and can exercise self-direction”
THEORY XTHORY X

1. Employees dislike work and avoid responsibilities whenever possible.
2. To achieve objectives employees must be objectives coerced or threatened.
3. Employees will shrink responsibilities seek formal direction whenever possible responsibilities is considered.
4. Mostly workers place scantly above all other factor associated with work and displayed little ambition.
THEORY Y
1. Employees handle work according to his nature or as should be exercised self-direction.
2. If they are committed to the accept then they exercise self-direction.
3. as we say when average person can learn to accept and even seek
4. The ability to make good decision is widely dispersed through the population and is not the sole authority of manager.
DOUGLAS MEGREGOR’S ANALYSIS
The answer of what Macgregor’s analysis implies about motivation?
Is best expressed in the framework presented Maslow.
Theory of X assumed that lower order needs like physiological, safety dominated individuals and theory Y assumed that higher order needs like self-actualization and esteem dominated.
DOUGLAS MEGREGOR BELIEF
McGregor himself held to the belief that the assumption of theory Y was more valid than those of theory X. therefore he proposed that participation in decision making responsible and challenging jobs and good group relations would maximize employee motivation.
Unfortunately, there is no evidence to confirm that either set of assumptions is valid or that accepting theory Y assumptions and alerting your action accordingly will make employees more motivated.
For instance, when Bob Mccury was vice president of Fayota’s U.S marketing operation, he essentially followed theory X.
He drove his employees hard and used a “crack-the-whip” style and yet he was steamily successful in marketing. In the real world, there is another example of active managers who held theory X assumption
Form example Karl Josef Neukirchen ECO of Germany’s $15.80 billion metals and engineering conglomerate metallgesellsehaft essentially follows theory of X, his approach to manager is street and focused on getting results he says
“ You can not have goal of being loved. Motivation is not missing and being friendly to everybody it is setting targets and achieving them”
ERZBER’S MOTIVATION- HYGIEN THEORY
The psychologist Frederick Hergberg proposed this theory. Those intrinsic are related to job satisfaction and motivation. Whereas extrinsic factors are associated with job dissatisfaction. Believing that an individual’s relation to her work basic and that his or her attitude toward work determines success or failure.
ACCORIDING TO S.P ROBBINS
“The motivation theory that intrinsic factors are related job satisfaction and motivation. Whereas extrinsic factors are associated with job dissatisfaction. Motivation which influence satisfaction”
WHAT DO PEOPLE WANT FROM THEIR JOBS?
Herzberg investigated the question. He asked people for detailed descriptions of situation in which they felt exceptionally good or bad about their jobs. Herzberg concluded from his analysis of the finding that the replies people gave when they felt good about their jobs were significantly different from his replies they gave when they felt badly.
Certain characteristics were consistently related to job satisfaction and other to job dissatisfaction, which are give next.
MOTIVATION

1. achievement
2. recognition
3. work itself
4. responsibilities
5. advancement
6. growth
HYGIENE FACTOR

1. supervision
2. company policy
3. relationship with supervision
4. working condition
5. salary
6. relationship with peers
7. personal life
8. relationship with subordinates
9. status
10. security
EXTREMELY SATISFIED NATURAL EXTREMELY DISSATISFIED
These factor associated with job satisfaction were intrinsic and include things such as achievement, recognition and responsibility.
On the other hand, when they were dissatisfied were extrinsic factor such as supervision company policy, working condition, status and interpersonal relationship.
In addition, Herzberg believed that the data that the opposite of satisfaction was not dissatisfaction, as traditionally had been believed. Herzberg proposed that the opposite of “dissatisfaction” is “no dissatisfaction”
HYGIENE FACTOR
“Factor that eliminate job dissatisfaction but do not motivate”
When these factors are adequate, people will not be dissatisfied, but they will be satisfied either, to motivate people on their jobs. Herzberg suggest emphasizing motivators, the intrinsic factor that increase job satisfaction.
CRIRICISM:
Following are the criticism about theory,
HERZBERG’S PROCDURE AND METHOLOGY
Herzberg procedure was limited to its methodology. When things going well its human nature to take personal credit and failure blame to extrinsic.
MEASUREMENT OF SATISFACION
Overall satisfaction management was not used. An individual may dislike part of the job yet still think job is acceptable.
IGNORE SITUATIONAL VATIABLES
The theory is inconsistent with previous research in that it ignores situational variables.
SATISFACTION AND PRODUCTIVITY
Herzberg assumes that there is a relationship between satisfaction and productivity, but research methodology, he used looked only at satisfaction, not at productivity.
TREATMENT OF SIMILAT RESEARCH
Herzberg methodology’s reliability is questionable. Because similar response might be treated in two different manner.
CONCLUSION
Herzberg’s theory enjoyed wide popularity from the mid-1960s to the early 1980s.
But criticisms were raised about his procedures and methodology. Although today we say the theory was too simplistic, it had a strong influence on how we were currently decision jobs.

Management skills

MANAGEMENT SKILLS
A manager job is varied and complex. Manager needs certain skills to perform the duties and acclivities associated with being a manager.
During 1970s Robert L Katz research found that managers need three basic skills.
1) Technical skill
2) Human skill
3) Conceptual skill
SKILL NEEDED AT DIFFERENT MAANGEMENT LEVELS:

CONCEPTUAL SKILL

TOP MANAGEMENT


HUMAN SKILL

MIDDLE MANAGEMENT


TECHNICAL SKILL


LOWER LEVEL MANAGEMENT

Using these skills managers must be able to see the organization as a whole understanding the relationship among various subunits and visualize how the organization fits into broader environment. These skills are very important at top level.
CONCEPTUAL SKILL
The ability to think and conceptualize about abstract and complex situation.
Conceptual skill relates to the top management only, because these are those people who are over all responsible for the failure and success of an organization.
It depends upon the top management how it controls the activities and makes long and short term plans for the successful operation?
1) if they want to establish a new unit forecasting regarding all aspects is necessary because resources of the organization should be utilized efficiently.
2) If they are going to introduce a new product in the market then ,

a) At which time you launch your product?
b) What will be price?
c) How to attract the people ?
d) What are other factor which will beneficial?
To think and decide regarding all that is the relationship of the top management. When top management thinks and makes decision regarding all these aspects then we will say that it is conceptual skill.
HUMAN SKILL
The ability to work well with other people individually in a group.

From the figure we can see that human skills are necessary for all type of management whether it is top, middle or lower level management.
Human skill is very necessary for every person whether he is the employee in the organization or not. Because manager face people within the organization. They should know that:
How to face them
How to communicate
How to lead
How to motivate
How to guide them in difficulties and how to encourage them at some sorrow occasion.
How to create trust and brotherhood among themselves. So that they work well with best interest of the organization.
TECHNICAL SKILL
Knowledge of and proficiency in a specialized field
We can also see in the figure there is a technical skill. Technical skill includes knowledge of and proficiency in
· Engineering
· Computer
· Finance and manufacturing
All front line managers should be skilled so that staff did not feel any problem.
DESIGN SKILL
Design skill is the ability to solve the problem in such a way that will beneficial for the organization .If manager merely see the problem and become problem watcher then they will perform the duty of design skill. Therefore manager must have valuable skill so that he will be able to solve the problem in light of realities they face.
DECISION MAKING PROCESS
DECISION
“A choice from two or more alternatives”

DECISION MAKING
Decision making is a key element of management because managers continually face decision in
· Planning
· Organizing
· Leading
· Controlling that effect the organization and its performance

ACCORDING OT BOVEE:-
“The process of reorganization problem generating and weighing alternative coming to a decision, Taking action and assessing the result
S.P ROBBINS:-
“The set of eight steps at includes identifying a problem, selecting an alternative and evaluating the decision’s effectiveness”

EXPLANATION
To solve a problem, or any thing keeping in view best interest of organization. In short decision making solve more problems of organization and also help in creation best decision
DECISION MAKING PROCESS
Problem
“A discrepancy between an existing and a desired state of affair “
CRITERIA
“Criteria that define what’s relevant in a decision”
IDENTIFYING THE PROBLEM
The first step is determining the problem. Problem means a discrepancy between present and proposed state of affair/. The manager who is the head of the department has to make the decision. First of all he must determine and identifying the desire roots of problem that problem could be solved toughly.
Furthermore, problem identification is not simple or in signification. Before something can be characterized as problem, manager have to be aware of the problem be under pressure to take action and have resources needed to take action.
IDENTIFICATION OF DECISION MAKING CRETIRA
In decision criteria, manager have to define what is relevant to the problem in decision such as
· Price
· Reliability
· Product
· Product model
· Guarantee & Warranty
· After sale service
· Useful life
Modern technological changes and where manager do not identify a particular criteria, is treated as irrelevant
ALLOCATION WEIGHTS TO CRITERIA
The factors of a criterion are not of equal importance. Therefore, we have to give them weights keeping in view their importance.
While purchasing computer we allocate weight to previous decision criteria.

CRTERIA WEIGHTS

Reliability 10
Screen size 8
Warranty 5
Weight 5
Price 4
Screen type 3

We allocate any other number for weights but according to their importance in decision making. In this the highest weight is 10 point.
DEVELOPING ALTERNATIVES
In this step we develop a list of all alternatives that can solve our problem. In this step evaluation of alternatives is not made.
For example, the problem is we have to purchase perfume soap then various alternative soap like Lux, Breeze, and Palmolive. These are the list of just various alternatives.
ANALAYSIS OF ALTERNATIVES
After identification of alternatives there should be analysis. While in analysis we kept in mind all weakness and strengths of the alternatives.
Analysis is done against the decision criteria so that decision could be in the best interest of organization.
SELECTING AN ALTERNATIVE
During analysis we analyzed the alternatives against their respective weights. After this step we will be in a better position to identify and select the most appropriate alternative, which gas high scores and also more important and relevant according to the needs of the organization.
IMPLEMENTATION OF ALTERNATIVE
Decision may fail if the implementation of the alternative is not properly done. Because it is the time of putting the choice into action.
The selected alternative is implemented into action and effective planning, organizing, leading and controlling influence decisions.
EVALUATION OF DECISION EFFECTIVENESS
The best step in the decision making process is to check the results of decision which is made. To check whether, the decision is solved according to standard.
Where decision is not fulfill the requirements of problem, the again decision making process started and carry on until satisfied.

Human Resource Management

HRM AND ITS PROCESS
HUMAN RESOURCES MANAGEMENT
Every organization whether it is a
· Multiple organization
· Small business
· Religious institution
· Govt. agency depends on people
Appropriate candidates for each job must be trained and motivated. To do what is a part of human resources management.
BOVEE
“A comprehensive integrated system for effectively managing the work in order achieve organization goals”
HUMAN RESOURCE MANAGEMNT PROCESS
S.P ROBBINS
“Activities necessary for staffing the organization and sustaining high employee performance”
BOVEE
“The human resources management process lead form planning to staffing, training, compensation, evaluation, replacement, then back to planning makes the process circular”

HUMAN RESOURCES MANAGEMENT OR PLANNING
The process analyzing an organization’s needs for various employees in accordance with its goals and devising among these needs.HMR is about filling jobs. A job is defined as array of tasks and responsibilities given to an employee in order to meet organization jobs include five specific core job dimensions.
· Skill variety
· Task identity
· Task significance
· Autonomy
· Feed back
STAFFING
The process of attracting and selecting employees for position in accordance with organizational goals is performed by staffing. It is done by recruiting job applicants.
Recruiting: -
The process of attracting qualified people to apply for positions within an organization.
Selection:-
While in selection we choose best applicants for available jobs. Selection methods are,

· Applications
· Interviews
· Reference checks
· Testing
TRAINING
The shortage of skilled employees and their increasing demands for personal fulfillment the job make training and development an essential area of human resources management.
The process of training employees the behaviors knowledge, and skill necessary for performance their jobs successfully. Preparing key employees for present and future jobs, and for career development. COMPENSATION MANAGEMENT
Most important HMR task is setting levels, if compensation. Compensation includes the direct ways, benefits and incentives gives to employees in exchanges for their work. If compensation levels are too high then, an organization will have qualified employees.
JOB EVALUATION
The main tool for human resources managers in setting compensation levels in the job evaluation. The process of ascertaining how much each job is worth to organization and assuring that the pay level for each job is fair.
EMPLOYEES EVALUATION
It is important for an organization to have a formal system of evaluating employees, their managers and even the organization itself. Employee’s evaluation is the process of assessing the quality of employees. It is done well with performance appraisal.
“The process of evaluating employee’s performance in relation to expectation and providing feedback”
EMPLOYEE MOVEMANE AND REPLACEMENT
Employees who leave jobs within the organization must replace. Employees who are leaving are a valuable source of feedback about the organization itself. Employees leave their jobs in one of five ways,
· Promotion
· Transfer
· Demotion
· Voluntary severance
· Termination
The best step in HRM process leads back to the first tow steps because replacing organization members involves planning and staffing functions.
THE EMPLOYMENT PROCESS
The employment process begins with a perceived need to obtain a person or persons to perform some job. Commonly a manager submit a written request to the personnel department starting that he, she wishes to fill a given position. The position should be defined in term of its job description and job specialization.
Human resources for all types of organization are considered as worthy assets, and the success and the failure of organization depends open their employees. So”employment process id a procedure to select required employment from the pool of candidates’
Personnel department process is also play an important role and choose best candidates for the best interest of the organization. The principal elements in the employment process are in the following.


HUMAN RESOURCES MANAGEMENT PLAN
The employment process begins with a perceived need to obtain a person or person or persons to perform some job. The department which is in need inform to the personnel department with all types of aspects such as, identification of job, recruitments of job, description of job, specification of job, and all that personnel department plays its own function to accomplish it.
RECRUITMENT
Recruitment involves identifying sources of potential employees, informing people of job opening and attraction, applicants who have the requisite qualifications to perform the jobs. People may be recruited either form within or from outside the people may be recruited either from within or from outside the enterprise. The job recruitments as expressed in job description and job specification identify the kinds of people to be recruited.
POOL OF CANDIDATES
When people will get aware about valet position, they will apply and as a result there will be as pool of candidates.
SELECTION
Selection involves choosing, from among a pool of candidates, the person or persons who best match the qualification criteria for the job involved.
The selection process can range from single interview and tests a weighted application blank, an assessment center, and an interview background investigation in a more sophisticated hiring procedure.
The selection process yields tow groups of applicants,
· Accepted candidates
· Rejected candidates
Those rejected because they do not meet the requirement of the employing organization and those who are hired.
ACCEPTED CANDIDATES
Those who are hired are normally given as orientation to the organization. It policies and benefits, to their department and job and to their immediate supervisor and coworkers, in other words, we can say that by applying various techniques ability of candidates is judged and suitable candidates re accepted.
REJECTED CANDIDATES
It must be noted that some individuals who are rejected may meet the minimal standard set by the employer, yet they are rejected because there are other candidates who process at superior qualification.
JOB PLACEMENT, ORIENTATION & TRAINING
The candidates who are selected are placed at their respective jobs. But normally these new employees are met well trained regarding the activities of the organization. First of all new employees are trained by special development program, so that they perform activities effectively and efficiently.
The last element in the employment process is probationary status. This is the try out period on the job. Depending upon managerial policy and level of the job probationary period can vary in length from 30 days form unskilled and semiskilled jobs up to a year or more form professional & managerial jobs.
The probationary status of employees is properly viewed as a part of the employment process because the relative success of the hiring activity is partly measured by the percentage of those hired who success fully complete their probationary period.
COUCLUSION
After discussing the employment process, we can say that now a days, personnel department plays as important role while selecting best employee at right time, for right post, at right cost.

MANAGEMENT BY OBJECTIVE / MBO

MANAGEMENT BY OBJECTIVE / MBO
There are two approaches of establishing goals, one is traditional goal setting and other is management by objective.
Management by objective is not new, it is a comprehensive managerial system that integrates many key managerial activities in a systematic manner so that objectives may be achieved effectively.
S.P ROBBINS:
“A management system in which specific performance goals are jointly determine by employees and their manager progress toward accomplishing these goals are periodically reviewed, and toward are allocated on the basis of the progress”
BOVEE SAYS:
“A collaborative process in which managers and employees set mutually agreeable goals, defines the evaluating individual and group performance”
GENERAL BREIF DEFINATION
“Set of objectives to achieve within the specified period of time and budget”
MBO PROGRAM:
Following are the main four ingredients of MBO program. Which are applied lists the steps in a typical MBO program.
The organization’s overall objectives and strategies are formatted
Major objective are allocated among divisional and departmental units.
Specific objective are collaboratively set with all department members.
The action plans are implemented
Successful achievement of objective is reinforced by performance-based reward
Progress toward objectives is periodically reviewed and feedback is provided
GOAL SPECIFICITY
In MBO, goals are important and to the point are specified for each department.
PARTICIPATION IN DECISION MAKING
Goals are not imposed on employees, but employees and superior set goals while in decision making.
TIME PERIOD
In MBO program, time period is clearly specified in which the work will be completed.
PEROFRMANCE FEEDBACK
MBO seeks to give ongoing and continuous feed back on progress towards goals, and giving ongoing feedback to its employees so that they can monitor and correct their activities does it.THE PROCESS OF MBO PROGRAM

ADVANTAGES:
Managers know, what is expected of them
Help in planning
Better relationship between managers and subordinates
Element of self control is found
More person involve in decision-making

  • DISADVANTAGES
    Resources are wasted to large-scale involvement
    MBO is for short period goals
    A lot of information is required for setting the clear objectives
    Effectiveness of MBO depends upon quick information.
    May require changes in organization to become fully effective
    CONCLUSION
    Finally, if MBO is viewed simply as an annual exercise is motivated to accomplish the goals.

Strategries and its types

STRATEGIC AND ITS TYPES
Strategy begins with the concept of how to use the resource of the firm most effectively in a changing environment.
It is similar to the concept in sports of a “game play” so we can say that;
“A strategy is a unified comprehensive and integrated plan that relates the strategy advantages of the firm to the changes of environment and that is to ensure the basic objectives
of proper execution by the organization”
STRATEGIC MANAGEMENT
FRED R. DAVID
“Strategic management is the art and science of formulating implementing and evaluating cross functional decisions that enable an organization to achieve its objectives”
Strategic management is used at many colleges and universities as the title for the capstone course in business administration, business policy which integrates material from all business courses.
WILLIAM F. FLUECK
“Strategic management is a steam of decision and actions which leads to the development of an effective strategy or strategies to keep which in achieving corporate objectives”
TYPES OF STRATEGIES
Here is the chart of strategies, which are adopted by the organizations keeping in view the changing environment in business world.
INTEGRATION STRAGEGIES
These refer to the association or combination or mixing up the various activities or business units such a manner that such work provides benefits in short and long run time period while achieving the organizational goals. These include forward integration, backward integration, and horizontal integration.


FARWARD INTEGRATION
It involves gaining ownership or increased control over the distribution of products. Might be possible that other people are not distributing the products in a standardized manner and by gain more control over Distribution Company will also expand its activities which will be beneficial such as BATA shoes & SERVICE shoes organization have more control on distributing. You may say that employed forward integration strategy.
BACKWARD INTEGRATION
Each an every organization required inputs which are provided by the supplier and backward integration is a strategy which is seeking owner ship or increase control over supplier and is adopted when firm’s current supplier are unreliable, material is too casting supplied, and inputs cannot meet the firm’s needs.
Such as MICHELS Company has its own farm and do all process and providing standard products
.
HORIZONTAL INTEGRATION
Today mostly horizontal integration is used for growth strategy. In horizontal integration organization seek ownership and more control over the currently firm’s competitor. So that by minimizing the competitor organization growth can be possible, increase in profit as WALL’S ICE CREAM COMPANY purchase POLKA ICE CREAM COMPANY.
INTENSIVE STRATEGIES
The efforts to improve a firm’s competitive possible with existing products. These are made by the top management are called intensive strategies it include market penetration, market development, and product development.
MARKET PENETRATION
The penetration strategy seeks to increase the market share of products and services. Which are currently offered without change in products but by aggressive selling approach?
Market penetration includes increasing numbers of salespeople increasing advertisement expenses, offering extensive sales
promotion items such as COCA COLA & PEPSI used today penetration strategies.
MARKET DEVELOPMENT
It includes introducing present products and service to new geographic areas. The climate for international market development is becoming more favorable at present and in near future.
To have and maintain competitive edge while staying close to home is becoming too hard. On the other hand, while you are expanding your activities to international market even then, there is no guarantee for success.
Therefore, companies should expand. Their products market by providing better quality which customers like such as TAZA Tea Company firstly just servicing in Pakistan but now the are servicing and try to expand to product market on international level.
PRODUCT DEVELOPMENT
Product development is a top management strategy seeks to increase sale by improving and modifying the present product or service. In product development changed may be in clear, design, shape& size, quality, and packing.
In product development, products may be modified as to markets segment and as well as same for all markets such as UNI LEVER Company soap, life Buoy, New Life Buoy, and Life Buoy Gold.
DIVERSIFICATION STRATEGIES
In 1960s and 1970s there was a general trend of diversifying so as not to be dependent of any one or single industry. But in 1980s there was a general reversal of that thinking, MICHAEL PORTER of the Harvard business school says:
“Management found they loved not manage the beast”
Following are the main diversification strategies
.
CONCENTRIC DEVERSIFICATION
Under such strategy new but relate product line, by adoption of such strategy business and market share of firm will be increased. Such as insurance companies firstly insure, business’s stocks, property but now a day they are insuring every thing.
HORIZONTAL DIVERSIFICATION
Adding new unrelated products or services for present customers is called horizontal diversification. This strategy is not as risky as compare to conglomerate because already familiar with present customers. Such as sugar industry to mobile industry.
CONGOLOMERATE DIVERSIFICATION
Adding new but unrelated product and services in company’s product line is called conglomerate diversification. Such as if ICS starts a new business of carrying goods from one place to another. We shall say that it is a conglomerate strategy.
DEFENSIVE STRATEGIES
As the name is implied making defensive or avoiding competition. These strategies includes
JOINT VENTURE
It is most popular defensive strategy when two or more companies enter in to temporary contract or partner ship for a specific project. It is called venture. In which firm separate identity remain unaffected. Under such responsibility and equity shared.
RETRENCHMENT
Retrenchment occurs when an organization regroups through costs and Asses reduction due to decline sales and profit. It is sometimes called organization strategy, if you are dealing in 5 products and now comes down to 3 than it will be called retrenchment.
DIVESTITURE
Selling a part or division of an organization is called divestiture. It is often used to raise funds for further strategies or investment.
As ICI dealing in Agri industry producer’s product consumer products. If ICI sell one division of suppose Agri then it will be divestiture strategy.
LIQUIDATION
Selling all the parts of the company’s assets is called liquidation. Liquidation is recognition of defeat and consequently can emotionally difficult strategy. How ever is better then to lose large money in loss.
CONCLUSION
Many ‘ if not most, try or adopt combination strategy. They combine business in order to avoid losses and in order to remain the world.