Q1: What do mean by a vertical organization? Explain the concept of differentiation and integration and how is integration achieved?

Ans: VERTICAL ORGANIZATION: Hierarchically structured organization where all management activities are controlled by a centralized management staff. This traditional type of organization often develops strong bureaucratic control over all organizational activities. DIFFERENTIATION: Differentiation refers to how a business separates itself into key components. This is very common among larger companies; the larger a company grows, the more differentiated it tends to become. Businesses with a large amount of differentiation give these separate components a great deal of autonomy. Business culture may differ significantly between the IT department and the marketing department, for example. A business must decide if it wants to differentiate based on tasks or product offerings. Some companies may prefer to divide into sectors that produce only one product each and have functioning marketing and accounting centers for each of those products. INTEGRATION: Integration refers to how organizations work together between their different components. A business with a high amount of integration can have different divisions, but the divisions are closely connected and do not tend to be as easily independent. From the perspective of strategy, a business creates its plans and budgets with all departments in mind and has communication methods in place to transmit the same instructions to each component. Inter-departmental coalitions and projects are very common in highly integrated businesses. ACHIEVING INTEGRATION It depends on type of integration we are considering. We can integrate various aspects of an organization into one cohesive whole organization to meet the challenge of coming under increasing pressure to rapidly changing business processes and share information across disparate boundaries to remain competitive, increase profitability, improve the level of customer service, achieve greater efficiencies and become more innovative. To achieve these organizational strategic initiatives and challenges requires application of integration both within and outside the boundaries of the business.
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Q2: What are the advantages of decentralization? How can decentralization process work in a big organization? Ans: Responsibilities are delegated by top management to middle and lowerlevel mangers within the organization, allowing top management to focus more on major decisions. For a small business, growth may create the need to decentralize to continue efficient operations. Decentralization offers several advantages, though relinquishing control may be difficult for a business owner accustomed to making all the decisions. Empowering Employees Employees can be empowered by having more autonomy to make their own decisions, giving them a sense of importance and making them feel as if they have more input in the direction of the organization. It also allows them to make better use of the knowledge and experience they have gained and implement some of their own ideas. Relieving the Burden Decentralizing takes some of the burden of daily business operations off the business owner. When the owner allows others to perform such tasks as hiring new employees or ordering supplies, this frees her up to spend more time on big-picture items, such as planning for expansion or meeting with important clients. Preparing for Emergencies A situation may arise where the business owner must be away from the business for an extended period time because of illness or another type of emergency. A decentralized structure provides a better chance that the organization will maintain self-sufficiency because managers and employees are accustomed to working autonomously.

More Efficient Decision-Making A decentralized organization is able to make decisions more quickly than one with a centralized structure. A manager often can make a decision without having to wait for it to go up a chain of command, allowing the organization to react quickly to situations where fast action can mean the difference between gaining and losing a customer. Ease of Expansion For a growing business, decentralization can facilitate the process of expansion. For example, if an expansion result in opening a new business unit in a different geographic area, decentralization allows the new unit to operate as an independent entity, meaning it can react more easily to the specific needs of the area, such as deciding to sell products that appeal to the local market.

DECENTRALIZATION PROCESS IN AN ORGANIZATION 1. There are fewer burdens on the Chief Executive as in the case of centralization. 2. In decentralization, the subordinates get a chance to decide and act independently which develops skills and capabilities. This way the organization is able to process reserve of talents in it. 3. In decentralization, diversification and horizontal can be easily implanted. 4. In decentralization, concern diversification of activities can place effectively since there is more scope for creating new departments. Therefore, diversification growth is of a degree. 5. In decentralization structure, operations can be coordinated at divisional level which is not possible in the centralization set up. 6. In the case of decentralization structure, there is greater motivation and morale of the employees since they get more independence to act and decide. 7. In a decentralization structure, co-ordination to some extent is difficult to maintain as there are lot many department divisions and authority is delegated to maximum possible extent, i.e., to the bottom most level
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delegation reaches. Centralization and decentralization are the categories by which the pattern of authority relationships became clear. The degree of centralization and de-centralization can be affected by many factors like nature of operation, volume of profits, number of departments, size of a concern, etc. The larger the size of a concern, a decentralization set up is suitable in it.

Q3: What is a functional organization, what are advantages and disadvantages of departmentalization? Ans: The classic organizational structure where the employees are grouped hierarchically, managed through clear lines of authority, and report ultimately to one top person. ADVANTAGES AND DISADVANTAGES OF DEPARTMENTALIZATION Advantages: 1. Specialization. Like a mass production chain each doing only certain job all the time until they are really experts in what they do. 2. Excellent communication because they have a very specific requirement and output. Automation will come naturally to this scheme. 3. Efficient. Disadvantages: 1. Defenseless against changes. 2. Almost impossible to have a vision because everybody's deep into each own "mission". 3. Recruitment becomes a problem because the requirement too specific.

Q4: What are matrix organizations? How they work and what are their advantages? Ans: An organizational structure that facilitates the horizontal flow of skills and information. It is used mainly in the management of large projects or product development processes, drawing employees from different functional disciplines for assignment to a team without removing them from their respective positions. How it works: Employees in a matrix organization report on day-to-day performance to the project or product manager whose authority flows sideways (horizontally) across departmental boundaries. They also continue to report on their overall performance to the head of their department whose authority flows downwards (vertically) within his or her department. In addition to a multiple command and control structure, a matrix organization necessitates new support mechanisms, organizationalculture, and behavior patterns. Developed at the US National Aeronautics & Space Administration (NASA) in association with its suppliers, this structure gets its name from its resemblance to a table (matrix) where every element is included in a row as well as a column. Advantages of Matrix organization At a more detailed level the advantages that most organizations seek through using a matrix organization structure include

improved ability to access resources across the old functional and geographic silos. better coordination on shared technologies across the organization (such as IT) faster decentralized decisions improved access to a diverse range of skills and perspectives. improved global or regional projects
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broader and more multi-skilled people development increased communication and coordination across the business reflects the needs of global or regional customers

Q5. What do you mean organizational responsiveness? What role the size of organization play in making it more responsive? Ans: Enterprises need to be more responsive, than agile. This is particularly in a world of open networks that make leasing new capabilities a more market relevant source of agility than internal architectures and investments. A responsive organization knows how to executive its strategy and day-to-day options, make the constant adjustments to customer, market and internal changes and thrive in an environment of dynamic competition. Responsive companies do not lag the market; rather they act on decisions with focus, speed and scale. They know what they are, and more importantly what they are not. Responsive organizations keep the value of the issue they are addressing out in front of their actions knowing that solving the problem or addressing the opportunity is the real source of value. Responsiveness is able to do this because responsive organizations know their path-dependencies. Agility advocates see these as core rigidities creates by decisions embodied in its strategy, culture, operations, technology, market position etc. While breaking these path dependencies are the stuff of hyperbole packed business books with one-word titles that promise a universal salve to business issues.

Q6. What is TQM? Give an account of salient features. Ans: TOTAL QUALITY MANAGEMENT is a popular "quality management" concept. However, it is about much more than just assuring product or service quality. TQM is a business philosophy - a way of doing business. It describes ways to managing people and business processes to ensure complete customer satisfaction at every stage. TQM is often associated with the phrase - "doing the right things right, first time".

The salient features of TQM.

Total

quality management or TQM is an integrative philosophy of management for continuously improving the quality of products and processes. Focusing the organization on satisfying customers needs Developing and tapping the full human potential of all employees Involving everyone in efforts to 'find better ways' Managing business processes, not just functions or departments Managing by fact, using reliable data and information Adding value to society, as well as achieving financial goals

The main principles that underlie TQM are summarized below:

Prevention is better than cure. In the long run, it is cheaper to stop products defects than trying to find them The ultimate aim is no (zero) defects - or exceptionally Zero defects low defect levels if a product or service is complicated Getting things right Better not to produce at all than produce something defective first time Prevention Quality involves everyone Continuous improvement Employee involvement Quality is not just the concern of the production or operations department - it involves everyone, including marketing, finance and human resources Businesses should always be looking for ways to improve processes to help quality Those involved in production and operations have a vital role to play in spotting improvement opportunities for quality and in identifying quality problems

It is a customer focused approach aims at satisfying the customer or delighting them by providing them best quality product t lowest possible price. It is company wide strategy involves everyone in the organization.

Q7. People as the main source of competitive advantage. Discuss in the light of this statement the role of HR in organization success. Ans: The technologies, products and structures can be copied by competitors. No one, however, can match highly charged, motivated people who care. People are firm's most important asset and, the same time, its most underutilized resource. People are firm's repository of knowledge and skill base that makes a firm competitive. Well coached, and highly motivated people are critical to the development and execution of strategies, especially in today's faster-paced, more perplexing world, where top management alone can no longer assure firm's competitiveness. The effective management of human resources can contribute to a companys business strategy and competitive advantage. HR can be viewed as having three product lines: administrative services, business partner services, and strategic services. To successfully manage human resources, individuals need personal credibility, business knowledge, understanding of the business strategy, technology knowledge, and the ability to deliver HR services. Human resource practices are important for helping companies deal with sustainability, globalization, and technology challenges. The sustainability challenges are related to the economy, the characteristics and expectations of the labor force, how and where work is done, the value placed on intangible assets and human capital, and meeting stakeholder needs (ethical practices, high-quality products and services, return to shareholders, and social responsibility). Global challenges include entering international markets, immigration, and off shoring. Technology challenges include using new technologies to support flexible and virtual work arrangements, highperformance work systems, and developing effective e-HRM practices and human resource information systems. HRM emphasizes the importance of taking strategic approach to all of the various human resource activities and proves through out that for an organization to prosper and earn profit, goal must be set and initiatives taken in all areas of HRM and by all people, whatever their levels of responsibility may.

Q8: Describe internal recruitment and external recruitment process with their advantages and disadvantages? Ans: The internal recruitment process is the passive career management tool. The organization does not select employees for the promotion. They can apply for the job vacancy, and they can enrich or change their career path. The internal recruitment brings the internal fairness and allows to employees to prolong their career in the organization. On the other hand, the internal recruitment brings conflicts. Managers do not support quick changes and best employees can disappear from the team quickly. Most organizations apply the restrictive rules to the internal recruitment as the organization enjoys the basic level of security.

The external recruitment The external recruitment enriches the organization. The company cannot exist without the external recruitment. Each organization has the attrition, fluctuation and turnover. The external recruitment brings the new potential. The external recruitment is about the management of the recruitment sources and making the channels efficient. The external recruitment has to be balanced with the internal recruitment as employees feel the opportunity to grow. The external recruitment is a key recruitment process in the stage of the rapid growth of the organization. HR is asked to deliver enough suitable job candidates quickly and in a high quantity. The external recruitment is the basic HR tool to create the ability of the organization to react on the changes in the external environment quickly.

Advantages and Disadvantages of Internal Vs External Recruitment Recruitment Internally Advantages: Rewards good work of current employees. Is costeffective. Improves morale Can asses known past performance. Can result in succession of promotions. Advantages: Bring new ideas/talent into the organization get needed competencies. Helps organization get needed competencies. Provides cross-industry insights. May reduce training cost if experienced hired. Helps organization meet equal employment opportunity/affirmative action goals. Disadvantages: May result in misplacements Increase recruitment costs May cause morale problems for internal candidates. Requires longer orientation or adjustment time. Externally

Disadvantages: Can produced organizational in breeding; candidates may have a limited perspective. Places heavy burden on training and development. May cause political infighting for promotions.

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Q 9: What are various types of training? Discuss general steps followed in preparing a training program? Ans: The challenge to the planners concerned with human resource development is to develop the working force, minds and skills so that they can intelligently and fully utilize their capabilities for the organization. Therefore there is a need for short term as well as long term planning for human resource. Hence, the concept of training slides into the organizations. Any investment in training yield results in long run whereas it never depreciates. The different types of training are as under: Institutional Training:

The organization of technical and vocational training could be at professional level, technical level, artisan, craftsmen, and skilled workers level. At the professional level, the training could be at graduate level in various fields of specializations. At the technicians level, the intuitional training facilities cover intermediate group that fills the gap between professionals and skilled workers. At the artisan, craftsmen and skilled worker levels, there could be special vocational training programs under vocational training schemes. Vocational Training The selection of vocational training programmers most appropriate to the specific needs and requirements should involve consideration of following points. i. Flexibility: The type of training imparted to the workers should be such that it would enable them to move from one occupation to another within the broad range of similar or even associated occupations. Adaptability: The type of training should facilitate the acquisition of new skills and application of the same to the other similar process. Economy: The results obtained from training should be commensurate with the resources spent. The training of employed manpower may be preferred to fresh entrants for reasons of immediate utility and shorter gestation period.

ii.

iii.

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iv.

Accessibility: The location of vocational training facilities be such that they are easily accessible to large sectors of prospective trainees as well as industrial centers where practical training could be imparted without much difficulty and cost.

Apprenticeship Training: Apprenticeship training is a system where an employer takes, under contract to employ a young person and to train him for improving his skills systematically for a specified period. This is a dovetail type training to prepare trainees to develop a broad based knowledge of their specialized functions. This type of training supplement knowledge of trainees with specialized knowledge and skills which are not acquired at the educational level but which is required for performing the peculiar kinds of jobs they are likely to do in an organization.

On the Job Training: On the job training refers to the training which a person receives while working on the job or engaged in work, paid or unpaid. This covers both in-service and pre-service training. Normally such training combines theoretical as well as practical experience under the guidance of experts, and is normally determined by the needs and requirements of each organization.

Upgrading Training: This is training for those who are already employed by providing those prospects of improving their knowledge, skills and aptitude. The upgrading training assumes special significance as supplementary courses are available for all workers who wish to improve their general, technical or even commercial knowledge in order to facilitate their growth in the organizations. Such training could be within plant itself or in outside institutions.

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Accelerated Training: In certain trades and occupations where there are serious shortages of qualified personnel, there will be need to have quick training for such persons. Accelerated training is possible when the trainees have the necessary basic educational background and some experience. This training leads the personnel themselves developing the needed motivation for continuing education without becoming obsolete too early in their careers.

Training for Traditional and Non-formal Sectors: A large number of artisans, craftsmen and workers are traditionally trained, hereditarily or acquire the skills in the form of learning by doing under the guidance of an experienced artisan/craftsman/skilled worker. Such trainees did not pass any tests though they have acquired the technical competence but are inadequately trained. The training courses are organized for the so-called wayside semi-skilled or skilled workers.

Training of Trainers: The quality and efficacy of training, both institutional and in-plant depend to a large extent on the knowledge, pedagogy and qualifications of the trainers. It needs upgrading the knowledge and skills of of the trainers. This type of training is therefore constantly train the trainers with appropriate skills and teaching abilities for staffing the training centers.

Supervisory Training: The need for supervisory training is much greater because the cadre of workers who had never undergone any basic training and whose knowledge about job relations, job instruction and job methods is very limited.

Management Development: Development of management should form the core of any programme for human resource development (HRD). It is the management which plans, coordinates, supervises and controls the processes in the organizations and it is good management which
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ultimately ensures effective utilization of available resources. High priority needs to be given to management training programmes in HRD planning so that they further motivate the workmen to adapt to the changes in the organizations. General steps to be followed in preparing a training program Training is one of the most profitable investments an organization can make. No matter what business or industry you are in the steps for an effective training process are the same and may be adapted anywhere. These four steps are mutually necessary for any training program to be effective and efficient. Step 1: Establishing A Needs Analysis. This step identifies activities to justify an investment for training. The objective in establishing a needs analysis is to find out the answers to the following questions: o o o o o o o Why is training needed? What type of training is needed? When is the training needed? Where is the training needed? Who needs the training? "Who" will conduct the training? and How will the training be performed?

By determining training needs, an organization can decide what specific knowledge, skills, and attitudes are needed to improve the employees performance in accordance with the companys standards. Establishing a needs analysis is, and should always be the first step of the training process. Step 2: Developing Training Programs And Manuals. This step establishes the development of current job descriptions and standards and procedures. Clear and concise job descriptions serve as a major training tool for the identification of guidelines. Once the job description is completed, a complete list of standards and procedures be established from each responsibility outlined in the job description. This will standardize the necessary guidelines for any future training.

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Step 3: Deliver The Training Program. This step is responsible for the instruction and delivery of the training program. Once trainers have been designated, the training technique must be decided. One-on-one training, on-the-job training, group training, seminars, and workshops are the most popular methods. Before presenting a training session, the trainer should have: - A desire to teach the subject being taught. - A working knowledge of the subject being taught. - An ability to motivate participants to want to learn. - A good sense of humor. - A dynamic appearance and good posture. - A strong passion for their topic. - A strong compassion towards their participants. - Appropriate audio/visual equipment to enhance the training session. For a successful training program, the trainer is to be conscious of several essential elements, including a controlled environment, good planning, the use of various training methods, good communication skills, and trainee participation.

Step 4: Evaluate The Training Program. This step will determine how effective and profitable our training program has been. Methods for evaluation are pre-and post- surveys of customer comments cards, the establishment of a cost/benefit analysis outlining expenses and returns, and an increase in customer satisfaction and profits. All these indicate the effectiveness of both the training as well as the trainer. It also determines the overall effectiveness of the training program for the employees as well as the organization. The importance of the evaluation process after the training is critical.

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Q10: Write notes. a. Advantages of organizational chart It shows the responsibility of each document. It shows the line of authority and communication. It shows the span of control. It shows the chain of command= this means it shows how power and authority are passed down from higher management level. Organizational charts help everyone visualize the management/line staff structure in a company. In environments where organization is the key to success, an organizational chart is a must-have. If the work is contrary to traditional business organization (best example is a movie production where everyone has ideas, actors sometimes direct, directors model acting, etc.), an organizational chart becomes meaningless. There is also a danger of adhering to the chart in order to determine who should talk to whom about problems. Problems may be better solved by approaching other managers, other workers, etc. and some flexibility may be the best way to work out issues that arise in business. b. Span of control

A span of control is the number of people who report to one manager in a hierarchy. The more people under the control of one manager - the wider the span of control. Less means a narrower span of control. An example of a narrow span of control is shown in the diagram below:

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The advantages of a narrow span of control are:

A narrow span of control allows a manager to communicate quickly with the employees under them and control them more easily Feedback of ideas from the workers will be more effective It requires a higher level of management skill to control a greater number of employees, so there is less management skill required An example of a wide span of control is shown in the diagram below:

The advantages of wide span of control are:

There are less layers of management to pass a message through, so the message reaches more employees faster It costs less money to run a wider span of control because a business does not need to employ as many managers

The width of the span of control depends on: The type of product being made products which are easy to make or deliver will need less supervision and so can have a wider span of control Skills of managers and workers a more skilful workforce can operate with a wider span of control because they will need less supervision. A more skilful manager can control a greater number of staff. A tall organisation has a larger number of managers with a narrow span of control whilst a flat organisation has few managers with a wide span of control.

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A tall organisation can suffer from having too many managers (a huge expense) and decisions can take a long time to reach the bottom of the hierarchy But, a tall organisation can provide good opportunities for promotion. c. Authority VS. Responsibility

There has been some confusion on responsibility vs. authority in division of labor in community associations. The Board of Directors is ultimately responsible for all actions taken by their agents or committees. Below is a brief definition of a couple of forms of both terms and how they relate to community associations. Authority can be delegated, responsibility cannot. A member of the Board of Directors can assign authority to a committee or management company to take an action, but is still ultimately responsible for ensuring that the job gets done properly. Because the ultimate responsibility lies with the Board, delegation of authority always entails the creation of accountability. The Committee or Manager becomes accountable, or answerable, to the Board of Directors for the performance of the tasks assigned to them, particularly if things go wrong. Blacks Law Dictionary, Sixth Edition, Definitions of Authority and Responsibility: Authorize. To empower; to give a right or authority to act. To endow with authority or effective legal power, warrant, or right. To permit a thing to be done in the future. It has a mandatory effect or meaning, implying a direction to act. Authority. Permission. Right to exercise powers; to implement and enforce laws; to exact obedience; to command; to judge. Control over; jurisdiction. Often synonymous with power. The power delegated by a principal to his agent. The lawful delegation of power by one person to another.. Responsible. Liable; legally accountable or answerable. Able to pay a sum for which he is or may become liable, or to discharge an obligation which he may be under.

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Responsibility. The state of being answerable for an obligation, and includes judgment, skill, ability and capacity. The obligation to answer for an act done, and to repair or to otherwise make restitution for an injury it may have caused. d. LINE-AND-STAFF ORGANIZATION.

The line-and-staff organization combines the line organization with staff departments that support and advise line departments. Most medium and largesized firms exhibit line-and-staff organizational structures. The distinguishing characteristic between simple line organizations and line-and-staff organizations is the multiple layers of management within line-and-staff organizations. The following sections refer primarily to line-and-staff structures, although the advantages and disadvantages discussed apply to both types of organizational structures. Several advantages and disadvantages are present within a line-and-staff organization. An advantage of a line-and-staff organization is the availability of technical specialists. Staff experts in specific areas are incorporated into the formal chain of command. A disadvantage of a line-and-staff organization is conflict between line and staff personnel. Line managers make the majority of the decisions and direct line personnel to achieve company goals.

Figure 1 Line-and-Staff Organization

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