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• Organizing


  The process of bringing together physical, financial, and human resources and developing a productive relationship across them for achievement of your goals
• Organization


  • A collection of people working together under a division of labor and a hierarchy of authority to achieve a common goal
• Division of labor


  Assigning different tasks to different people in the organization's different work units
• Specialization


  When factors of production perform tasks that they can do more efficiently than others
• Types of organizational structures

  • Hierarchal
  • Horizontal/Flat
  • Functional
  • Divisional
  • Matrix
• Organizational structure


  The systematic arrangement of human resources in an organization so as to achieve common business objectives
• Hierarchal organizational structure


  The pyramid-shaped organizational chart, the most common type where the chain of command goes from the top down and each employee has a supervisor
• Horizontal/Flat organizational structure


  An organizational chart type mostly adopted by small companies and start-ups in their early stage, where the organization is departmentalized into smaller work units
• Functional organizational structure


  Creates a fixed set of departments based on certain functions like HR, finance, marketing, production, etc. allowing employees to focus on a particular functional role
• Divisional organizational structure


  Has divisions corresponding to either products or geographies, with the main advantage being independent operational flow where failure of one company does not threaten the others
• Matrix organizational structure


  A combination of divisional and functional structures, with two chains of command where project team members have two bosses or managers
• Classification of organization theory

  • Traditional
  • Modern
• Traditional theory - Simple theory


  Has few departments, wide span of control, centralized authority, and little formalization of work
• Traditional theory - Functional theory


  Groups together similar or related specialties, utilizing functional departmentalization across the entire organization
• Traditional theory - Divisional theory


  Made up of separate business divisions or units, with the parent corporation acting as overseer to coordinate and control the different divisions
• Modern theory - Team design


  The entire organization is made up of work groups or teams, with advantages including empowerment of team members and reduced barriers among functional areas
• Staffing


  The Human Resource function of identifying, attracting, hiring, and retaining people with the necessary qualifications to fill the responsibilities of current and future jobs in the organization
• Objectives of staffing


  • To procure the right type of personnel for the right jobs
  • To train and develop human resources
  • To mold effectively the human resources and motivate them for higher performance
  • To establish desirable working relationship between employers and employees and between groups of employees
• Staffing/hiring process


  1. Determining a need (job analysis)

  2. Application search and selection (recruitment, screening and selection, interviews)

  3. Decision-making

  4. Adaptation to the workplace

  5. Orientation
• Recruitment


  A set of activities designed to attract qualified applicants for job position vacancies in an organization
• Recruitment methods


  • External (advertisements, unsolicited applications, internet recruiting, employee referrals, educational institutions, public and private employment agencies)
  • Internal (promotions or employees already in the organization)
• Selection


  The process of choosing the individuals who have the required qualifications to fill the present and expected job opening
• Selection process


  1. Establishing the selection criteria (skills, job specification)

  2. Screening and interviews

  3. Decision-making
• Training and development


  Learning given by organizations to its employees that concentrates on short-term job performance and acquisition or improvement of job-related skills
• Compensation/wages


  Performance evaluation
• Types of compensation


  • Direct (salaries, incentive pays, bonuses, commissions)
  • Indirect (benefits like travel, educational, health)
  • Non-financial (recognition programs, rewarding jobs, work environment, work hours)
• Pay equity


  Fairness in compensation, related to the Equity Theory of motivation focusing on employees' response to the pay they receive
• Expectancy theory


  A motivation theory that predicts employees are motivated to work well due to the attractiveness of the rewards or benefits they may receive
• Bases for compensation


  • Piecework
  • Hourly
  • Daily
  • Weekly
  • Monthly
• Purposes of performance evaluation

  • Administrative (basis for compensation, promotions, transfers, terminations)
  • Developmental (identifying training and developmental needs)
• Advantages of performance appraisal

  • Promotion
  • Compensation
  • Employee development
  • Motivation
• Types of rewards


  • Monetary (pay/salary, benefits, incentives, executive pay)
  • Non-monetary (recognition, rewarding jobs, work environment)
• Monetary rewards


  • Pay/Salary
  • Benefits
  • Incentives
  • Executive Pay
• Pay/Salary


  Financial remuneration given in exchange for work performance that will help the organization attain its goals
• Benefits


  Indirect forms of compensation given to employees/workers to improve the quality of their work and personal lives
• Incentives


  Rewards that are based upon pay-for-performance philosophy
• Incentives


  • Bonuses
  • Merit pay
  • Sales incentives
• Executive Pay


  A compensation package for executives of organizations which consists of five components: basic salary, bonuses, stock plans, benefits, and perquisites
• Nonmonetary Rewards

  • Award
  • Praise
• Award


  A nonmonetary reward that may be given to individual employees or groups/teams for meritorious service or outstanding performance