CHAPTER 7

- Decision
o A choice that is made among a number of available
alternatives.
- The four-step decision-making model
o Identify the need for a decision
 The need for a decision
 If expectations are not being met
 Expectations are often based from norms
values and cultures
 Opportunity to meet them better
o Develop alternatives
o Choose appropriate alternatives
 Amount of knowledge and level of goal
o Implement chosen alternative

MAINSTREAM APPROACH TO THE FOUR-STEP DECISION-

MAKING PROCESS

- IDENTIFY THE NEED FOR A DECISION

o Identifying problems and opportunities to meet or surpass
financial goals
o Using learned scripts (learned framework that provide
direction for people by helping them to interpret and
respond what is happening around them)
 Programmed decisions
 Non-programmed decisions
o Mistaking symptoms for the underlying issue
 It is important to understand and address the
underlying problem instead of just focusing on the
symptoms
- DEVELOP ALTERNATIVE RESPONSES
o Do nothing
 When managers do not have much time or many
resources to invest
 Appropriate when the cost of the effort exceeds the
benefits
 o Follow a routine response
 Programmed decisions- involve choosing a
standard alternative in response to recurring
organizational problems or opportunities
 Adhering to standard operating procedures
 “Shortcuts” that help managers avoid going through
the entire in-depth four-step decision-making
process
o Develop nonprogrammed alternatives
 Nonprogrammed decisions- involve developing and
choosing among new alternatives in situations
where programmed alternatives have not yet been
developed or are not appropriate
 Nonprogrammed alternatives influenced by:
 Importance
 Newness
 Urgency

- CHOOSING THE APPROPRIATE ALTERNATIVE

o Choose an alternative, using a method based on how
much goal consensus and knowledge is available for
each alternative.
o Key Factors:
  Goal consensus about which goals to pursue
 Level of agreement among members about
which goals the organization should peruse
 Mainstream managers prefer high goal
consensus with widespread agreement
throughout the organization as to what the key
goals are
 Low goal consensus- considerably debate
exists regarding what the organization’s goals
should be
 Available knowledge about:
 How to achieve goals
 Uncertainty about outcomes
o Evident when decision makers do not
know what outcomes to expect from
choosing a particular alternative
 Risk that alternative will result in negative
outcome
o Likelihood that an alternative chosen by
decision makers will result in a negative
outcome
*Example airlines
- Five basic decision-making approaches
o Classical Rational Approach: High Consensus, High
Knowledge
 Includes management science
 High consensus, problem or opportunity that calls
for a decision is clearly understood and adequate
time and information to collect all required
information for each alternative
 Includes decision trees, break-even analysis,
inventory and supply chain management models
 Rare to find situations where managers have
complete information
o Political Approach: Low Consensus, High Knowledge
 Includes bargaining, compromising and coalition
formation
  Situations where there is much debate about which
goal to pursue, even though a lot of knowledge is
available.
 Debate can intense even when consensus is that
overarching goals is to maximize the financial
interest
 Leads to politicized decision-making process:
 Trade “favors” with each other in their own
long-term self-interests
 Withhold information that will weaken their
own position
 Form coalitions and build alliance networks
 Blame others for failure
 Anxiety increases, job satisfaction decreases and
managers are judged as being ineffective
o Incremental Trial-and-Error Approach: High consensus,
low knowledge
 Include some form of intuition (making decisions
based on tacit knowledge, which can be based on
experience, insight, hunches or gut feeling)
 Evident in situations where there is high agreement
on goals, but low level of technical knowledge
 Continuous Improvement- making many small,
incremental improvements on an ongoing basis to
how things are done in a organization
 Mainstream managers use this to constantly
improve efficiency and productivity in organizations
 Kaizen- continuous improvement has been a pillar
of the success for companies, where it helps
members be open to new ideas and to build high-
quality automobiles
 Intuition- refers to making decisions based on tacit
knowledge, which can be based on experience,
insight, hunches or “gut feeling”
 Tacit knowledge- abilities or pieces of information
that people hold that are difficult to articulate or
codify
 Learning by doing
o Random Approach: Low Consensus, Low Knowledge
  Includes chaotic, mimetic and inspiration decision
making
 Evident in situations where there is no agreement
on goals and no knowledge about how to reach
goals
 Rely on luck and inspiration (spiritual insights)
o Administrative Model: Medium Consensus, Medium
Knowledge
 Employs a combination of the four methods
 Describes how decisions are actually made rather
prescribing how they should be made
 Bounded Rationality
 Limited cognitive capabilities and personal
biases
 Limited information—anchoring, past practices
 Limited resources for processing information
 Satisficing- evident when managers accept an
adequate response to a problem or opportunity
rather than make the effort to develop an optimal
response (choosing an adequate response)
 Impossible for managers to know precisely how
something will respond to a particular decision
 Lack of resources- especially time
- IMPLEMENT THE CHOSEN ALTERNATIVE
o Will fail if it is not implemented in such a way that
members will embrace it
o Involve members in earlier steps of decision making
process
o The model seeks to make timely decisions with minimal
cost
o Factors in implementation
 Significance of the problem for the organization (is it
routine?)
 Competency to analyze the problem and develop
alternatives
 Availability of adequate knowledge
 Commitment to implementing the alternative
o The model recommends five levels of employee
involvement ranging from low to high participation
  In the highest level of participation, managers are
recommended to delegate decisions
 Do not play a direct role in decision-making process
except to provide encouragement, distribute
resources and set prescribed limits
o Managers are recommended to use a facilitative
approach
 Manager presents to a group the problem and the
boundaries within which it is to be solved
o Half of all decisions fail, to learn from these mistakes and
apply that knowledge to the future
o POOR DECISIONS
 Managers are reluctant to admit that they made a
mistake
 Causes
 Failure to recognize significance of problem
 Lack of participation
 Insufficient information
 Failure to delegate/facilitate decisions
 Lack of commitment and support
 Persistence Errors
 Leads to escalation of commitments- occurs
when a manager preserves with the
implementation of a poor decision despite
evidence that it is not working
 Information Distortion- refers to the tendency
to overlook or downplay feedback that makes
a decision look bad, and instead focus on
feedback that makes the decision look good
 Administrative Inertia- describes what
happens when existing structures and
systems persist simply because they are
already in place
MULTISTREAM APPROACH TO THE FOUR-STEP DECISION-
MAKING PROCESS

- IDENTIFYING THE NEED FOR A DECISION

o Identify problems and opportunities for the organization
that will improve a variety of forms of well-being.
  Goes beyond simply maximizing material gain
(materialist-individualist)
 A listening posture is more likely to be prompted by
stakeholders other than just managers
o Starts when an opportunity to make an improvement on
any of a wide variety of forms of well being is recognize
o Triggered not only by managers but also by other
stakeholders
- DEVELOP ALTERNATIVE RESPONSES
o Develop alternative responses to problems or
opportunities, with an eye to ensuring that overall well-
being is enhanced.
 Not directed solely towards in financial well-being
 Involves stakeholders other than managers
o Comparatively large range of alterntaives to develop
 Not limited to issues of maximizing owner’s financial
well-being
o Need to include other stakeholders
- CHOOSE AN APPROPRIATE ALTERNATIVE
o Choose an alternative that has been developed,
appreciating the healthy tension among various goals,
and drawing on both explicit and tacit knowledge
 Goal consensus is not expected because members
respect one another’s differing views.
 Emphasis is on multiple goals, multiple forms of
well-being, and using multiple criteria to evaluate
decisions.
- IMPLEMENT THE CHOSEN ALTERNATIVE
o Implement the chosen alternative, using a participative
approach if necessary to overcome resistance.
o Key considerations:
 How to manage resistance
 Feedback during implementation improves decision-
making and reduces problems
 CHAPTER 8

- Goals
o The desired results or objectives that members in an
organization are pursuing.
- Plans
o Describe the steps and actions that are required to
achieve goals.
THE PLANNING PROCESS
- Steps in the Planning Process
1. Setting an organization’s overarching mission and vision.
2. Setting strategic goals and plans.
3. Taking the strategic goals and plans and putting them into
practice in everyday operations.
4. Implementing and monitoring the goals and plans.

Two types of Organizational Goals and Plans

- Ongoing Goals and Plans
 o Guide the continuing activities that are consistent with the
basic purpose of the organization.
- Change-Oriented goals and Plans
o Refer to new initiatives and changes to be made in an
organization’s practices.
o Correspond to the nonprogrammed decision making
process
MAINSTREAM APPROACH TO GOALS AND PLANS
- STEP 1: DEVELOP THE ORGANIZATION’S OVERARCHING
MISSION AND VISION
o Mission Statement
 Identifies the fundamental purpose of the
organization.
 Describes what the organization does, whom it
serves, and how it differs from similar organizations.
 Can provide social legitimacy and a sense of
identity for the members of the organization.
 Ideas are commonly mentioned in mission
statements:
 Products/services
 Customers
 Organizational self-
 Survival/growth/pro
 Employees
 Markets
 Philosophy
 Technology
 Public image
o Vision Statement
 Describes what an organization is striving to
become.
 Provides guidance to organizational members.
 Describes goals that an organization hopes to
achieve five or more years into the future.
o Mission/Vision Focus:
 Top-down management of the planning process to
enhance financial well-being.
  Focus is on things that will contribute to the future
competitiveness and financial success of an
organization.
- STEP 2: DEVELOP STRATEGIC GOALS AND PLAN
o How managers can position the organization in the eyes
of stakeholders so as to achieve advantages over its
competitors.
o Strategic goals encompass all of an organization’s
activities and they often have a 3-5 year horizon
- STEP 3: DEVELOP OPERATIONAL GOALS AND PLANS
- Operational Goals
o Refer to outcomes to be achieved by an organizational
department, work group or individual member
o Are set by mid and lower-level managers
o Time horizon less than 1 year
- SMART GOALS
 Specific
 Goal is precise as to what is to be
accomplished
 The more specific a goals is the more likely it
is to be accomplished
 Measurable
 Goal to be accomplished can be assessed
objectively
 Achievable
 Goal is within reach yet also challenging
 Stretch Goal (Jack Welch)
o Goals so difficult that people must think
outside the box in order to achieve it
o Cannot be achieved simply by making
incremental changes to the status quo.
 Result-based
 Goal has clear, demonstrable outcomes (not
just activities)
 Time-specific
 Goal has a clear time by which it is to be
accomplished
 Performance Standards- goals that
subordinates are expected to meet
- Operational Plans
o The steps and actions that will help to meet short-term
goals (usually with a timeline of a year or less)

- Standing Plans
o Provide guidance for activities that are performed
repeatedly
- Three basic types of standing plans
o Standing Operating Procedures
 Outline
 specific steps that must be taken when performing
certain tasks
o Policies
 Provide guidelines for making decisions and taking
action in various situations
o Rules and Regulations
 Are prescribed patterns of behavior that guide
everyday work tasks.
• Standardization
o The process of developing uniform practices for
organizational members to follow in doing their jobs.
• *Contingency Plans
o Lay out in advance how managers will respond to
possible future events that could disrupt existing
plans.
• *Limiting the Impact of a Crisis
 o Perform preventive work to avoid or minimize the
effects of a crisis.
o Assemble information and define crisis
responsibilities and procedures.
o Contain a crisis by making a timely response.

- STEP 4: IMPLEMENT AND MONITOR GOALS AND PLANS

o Possible outcomes:
 Goals are met.
 The goals are not met and there is a need to
develop new plans or goals.
MULTISTREAM APPROACH TO GOALS AND PLANS
- Emphasizes how managers and other stakeholders carry out
the steps.
- Is concerned with sustenance economics issues and the well
being of a variety of stakeholders.
- Considers aspects of life that may be difficult to measure, such
as ecological well-being or social justice.
- STEP 1: DEVELOP THE ORGANIZATION’S MISSION AND
VISION
o Benefits of involving a variety of stakeholders in the
development process:
 It permits the development of stronger mission and
vision statements.
 It fosters mutual and cross-level understandings
that increase support for the work of the
organization.
- STEP 2: DEVELOP STRATEGIC GALS AND PLANS
o Includes both economic opportunities and opportunities to
improve the environment.
o Are more sensitive to strategies that emerge from practice
than from formal planning.
o Pay attention to sustenance economics and stakeholder
participation.
o Rather than focus primarily on economic opportunities,
these managers are just as interested in opportunities to
improve the natural environment
- STEP 3: DEVELOP OPERATIONAL GOALS AND PLANS
- Operational Goals
 o SMART2
 Are significant (challenging and motivating).
 Are meaningful in relating to all stakeholders.
 Are agreed upon by the people who are expected to
implement them.
 Are relevant to the mission and vision, and to the
aspirations of members and other stakeholders.
 Are timely in being attuned to which goals are right
for the times.
 Goal Displacement- occurs when people get so
focused on specific goals that they lose sight of
more important overarching goals
o Significant
 Goals is challenging and engaging
 Stretch goals are used to meet developmental goals
to invite members to think about their work and
themselves in a broader way
o Meaningful
 Goal has meaning beyond simply maximizing
productivity
 Relate to the mission and vision of members as well
as the organizations
o Agreed-upon
 Goals is developed participative
 Welcomes participations even if it does not provide
cost savings to the organization
o Relevant
 Goals is linked to important issues for a variety of
stakeholders
o Timely
 Goal is appropriate for the times and situation
- Operational Plans
o Action plans
o Identify activities through participation
of other people.
o Consider the effects of management actions on the
ecological environment and on other stakeholders.
o Emphasize flexibility and to consider the roles of other
stakeholders.
 - STEP 4: IMPLEMENT AND MONITOR GOALS AND PLANS
o Do plans need to be revised in the face of contingencies?
o Have unexpected events occurred in subunits that need
to be considered?
o Is there a danger of goal displacement?

CHAPTER 10

INTRODUCTION TO ORGANIZATION
- Basic Elements of Organizing (Weber)
1. The overall work of the organization is broken down into
appropriate tasks.
2. Members know what their specific sub-tasks are.
3. Members know whom they should defer to.
4. Members’ task performance fits together meaningfully
with their coworkers.

THE FOUR MAINSTREAM FUNDAMENTALS OF ORGANIZING

- Standardization
o Emphasizes developing uniform practices for
organizational members to follow in doing their jobs—
 ensures that work activities are being completed in the
best way.
o Types of standards
 Formal standards (written standards)
 Informal standards
o Purposes of standards
 Challenge is to design performance standards that
maximize productivity.
 Serve as guidelines for decision making
 Provide direction and motivation
 Provide legitimacy for the organization

- Specialization
o Emphasizes grouping standardized organizational tasks
into separate jobs— ensures that members know what
sub-tasks they should perform.
o Division of labor
 Adam Smith’s pin factory example.
o Job Specialization
 Challenge is to ensure that the activities performed
by each member are designed enhance the
productivity of the whole group.
 Optimal—proper KSAOs
 Broad—lack of focus
 Narrow—goal displacement
- Centralization
o Emphasizes having decision-making authority rest with
managers at the top of an organization’s hierarchy—
ensures orderly deference among members;
o Line authority- formal power to direct and control their
immediate subordinates
o Staff authority- formal power to advise and provide
technical support
o Delegation
 The process of giving authority to a person or group
to make decisions in a specified sphere of activity.
o Span of control
 The number of members a given manager has
authority over.
 Wide spans—many subordinates
 Narrow spans—few subordinates
o Accountability- refers to expectation that a member is
able to provide compelling reasons for the decision they
made
o Results of Too Much Decentralization:
 Decisions are uncoordinated across the
organization.
 Sense of belonging, connectedness, and support
from others is lacking.
 Feelings of being overwhelmed by responsibility
and accountability.
  There are no symbolic leaders around which to
rally.

- Departmentalization
o Departmental focus- looks at the relative emphasis on
internal efficiency versus external adaptiveness
o Departmental membership- permanent or short term
o Emphasizes on grouping members and resources
together to achieve the work of the larger organization—
ensures that members work together harmoniously.
o Considers how members and resources are grouped
together to achieve the work of the larger organization.
 Horizontal dimension (departmental focus)
 Internal efficiency versus external
adaptiveness
 Vertical dimension (departmental membership)
 Permanent versus short-term
 Inside versus outside the organization
o Four Basic Structures
 Functional
 Economies of scale
 In-depth skill development of individuals
 Increased spans of control
 Divisional
 Decision-making closeness to customers
 Accountability for profitability
 More well-rounded managers
 Hybrid
 Matrix
 o Developmental Membership
 Network Structure
 Is an organization with stable and complex
relationships with a variety of other
organizations that provide essential services.
 Virtual Organization
 Has members who come and go on an “as-
needed” basis and who are networked
together with an information technology
architecture that enables them to synchronize
their activities.
FOUR MULTISTREAM FUNDAMENTALS OR ORGANIZING
- Experimentation
o On-going voluntary implementation of new ways of
performing tasks on a trial basis—ensures that work
activities are completed in the best way.
o Involves on ongoing, voluntary change.
 Standardization is considered overrated.
 Focus is on team and group standards.
 There is concern for outside groups and non-
materialist needs of members.
 Fosters group ownership, mutual learning,
achievement, and legitimacy.
- Sensitization
o Searching for and responding to needs and opportunities
to improve the status quo—ensures that members know
what sub-tasks they should perform.
o Encourages members to continuously adapt and improve
how they do their jobs in harmony with others around
them.
  Focus is on the dynamic process of organizing.
 Tasks are separated into jobs at the group level.
 Members experience a greater feeling of purpose,
meaningful work and loyalty.
 Goals change as members grow and learn from
each other and from other stakeholders.
- Dignification
o Treating everyone with dignity and respect in community
—ensures orderly deference among members.
o Promotes the idea that all are better-served if all
stakeholders are treated with dignity.
o Entails treating people with dignity and respect for
community.
o Favors decentralization and having authority reside in
groups rather than in individuals.
o Provides the information people require to use decision-
making authority responsibly.
- Participation
o Emphasizing mutuality by giving stakeholders a voice in
how the organization is managed and how jobs are
performed—ensures that members work together
harmoniously.
o More freedom is given to members to collectively decide
how specific tasks should be carried out.
o Divisional rather than functional structures are preferred.
o Active and extensive participation of external
stakeholders is encouraged.
 CHAPTER 11

INTRODUCTION TO ORGANIZATION DESIGN

- Organization Structure
o Optimal way to perform different subtasks is identified
o Members should know what his specific subtasks are
o Members know to whom they should defer
o Members task performance fits coherently with the task
performance of their coworkers
- Organization Type
o Refers to a specific, coherent way that the four
fundamental elements of an organization’s structure fit
with one another, and how the organization’s structure as
a whole fits with the organization’s environment, strategy,
and technology
- Organization Design
o The process of developing an organizational type by
ensuring that there is a fit between and among an
organization’s structural characteristics and its
environment, strategy and technology.
MAINSTREAM ORGANIZATION DESIGN
- Organization Structure
o Mechanic Structure
 High levels of standardization
 Specialization
 Centralization
 Functional Departmentalization
o Organic Structure
 Low levels of standardization
 Non-specialization
 Decentralization
 Divisional departmentalization
- Environmental Strategy and Technology
o Environment
 Influenced by physical climate, stability and
available resources, industry and social cultural
norms
o Strategy
 Cost leadership: mechanistic structure
 Differentiation: organic structure
o Technology
 Task technology
 The combination of equipment and skills used
to acquire, design, produce and distribute
goods and services
 Non-repetitive work: organic structures
 Variety and Analyzability
 Task variety
 The ability to reduce work to mechanical steps
and create objective, computational
procedures for problem solving
 Task analyzability
 The frequency of unexpected, novel or
exceptional events that occur during work
 Routine Technology
o High analyzability, low variety
o Ex. Bank tellers, data entry workers, toll
booth operators
 Engineering Technology
 o Work that is very analyzable and has many
exceptions
o Moderate mechanistic but not as
mechanistic as routine technology
o Ex. Lawyers, engineers, tax accountants
 Nonroutine Technology
o Low analyzability and many unexpected or
novel events
o Organic structure
o Ex. Tailor, researchers, strategists
 Craft Technology
o Difficult to analyze but does not have many
expectations
o Tacit knowledge is applied
o Ex. Master brewer, chocolate taster,
teachers, artists
 Task interdependence
 Pooled interdependence
o Most agreeable to a mechanistic
structure
o Each part of the organization works
separately to contribute to the common
good of the organization
 Sequential interdependence
o Uses a combination of mechanistic and
organic structures
o Output of one individual or work group
becomes the input for another individual
or group
 Reciprocal interdependence
o Most likely to associated with an organic
structure
o Output of one work unit becomes the
input for one or more other work units
MAINSTREAM ORGANIZATION TYPES
- Simple type
o Organic structure
o Operate in a narrow segment of a changing environment
o Have a focus strategy
o Rely on a technology with high task variety, often with
high interdependence
- Defender type
o Mechanistic structure
o Operate in a narrow segment of a stable environment
o Cost leader strategy
o Often rely on a single core technology
o Departmentalized
o Mastered in terms of analyzability and variety
o Explicit knowledge pooled interdependence
- Prospector type
o Organic structure
o Operate in a broad market of a changing environment
o Differentiation strategy
o Rely on technology that is difficult to analyze, often with
reciprocal interdependence
o Constant innovation
- Analyzer Type
o Have two spheres of organizations with parts of the
organization operating like a defender type, and other
parts operating like prospector type
o Combination of mechanistic and organic organization
structures
 o Both a cost leader and differentiation strategy
o Hybrid structure

- Staying Fit
o Key Fit Aspects
 The fit between the mainstream environment,
strategy and technology
 The fit between the four mainstream dimensions of
organization structure
o Misfit Organizational Type
 Misalignments in its internal organization structures
and/or with its environment, strategy and technology
o Change to another organization type becomes necessary
 When changes occur in the environment, including
competitive pressures and new technologies
 Because of the Icarus Paradox- factors that explain
why a particular type is successful will, over its life
cycle cause it to fail
MULTISTREAM ORGANIZATION DESIGN
- Organization Structure
o Inward structure
 The four multistream pillars of organizing are
emphasized among stakeholders within an
organization
o Outward structure
 The four multistream pillars are emphasized among
stakeholders outside of the organization
 - Environment, Strategy and Technology
o Environment
 The broader the interest in the larger environment in
multiple forms of well-being offered by an
organization, the greater likelihood that an outward
organization structure will be developed
o Strategy
 Inward structures fit the minimizer strategy
 Outward organization structures fit the transformer
strategy
o Technology
 Managers who develop inward structures focus on
improving internal technologies
 Managers who develop outward structures seek to
improve
 Managers unfamiliar with Multistream structures
often start with inward rather than outward
structures
MAINSTREAM ORGANIZATIONAL TYPES
- Organization structure
- Environment, strategy and technology
- Voluntary Simplicity
o Outward structure (but also strong inward dimensions)
o Operate in a very narrow sector of the environment
o Have a niche strategy
 o Seek well-being within and/or beyond the organization
- MultiDefender Type
o Inward structure
o Operate in a stable environment
o Minimizer strategy
o Focus on maximizing well-being within the organization
o Participative management practices and sensitivity
- MultiProspector Type
o Outward structure
o Operate in an area of the environment where there is
broad interest in their product or service
o Transformer strategy
o Focus on maximizing well-being beyond the organization
o Promote environmentally friendly products and
technology
o Work closely with suppliers and customers
o High interorganization interdependence
- MultiAnalyzer Type
o Two spheres of operations with parts of the organization
operating like a Multidefender and other parts like a
MultiProspector
o A combination of inward and outward organization
structures, utilizing both a minimizer and a transformer
strategy
o Providing excellent workplaces and helping external
stakeholders
- STAYING FIT
o Key fit aspects
 The fit between the mutlistream environment,
strategy and technology
 The fit between he four multistream dimensions of
organization structure
o Challenge for multistream managers
 To develop and maintain a successful
organizational type and avoid becoming a Misfit
organization
 MANAGING HUMAN RESOURCES
- Staffing
o Human resource management process which consists of
eight activities necessary for filling in and keeping the
positions in the organization structure filled in with the
best and qualifies individuals
STAFFING PROCEDURES (EIGHT STEPS IN STAFFING
PROCESS)
- Human Resource Planning
o Process by which managers hire, in a timely manner, the
right number of people with appropriate qualifications who
would capably help carry out the organizations plan
- Recruitment
o Initial attraction and screening of a pool of candidates or
human resource prospects available to fill in a position
o Job Analysis- determination of the tasks and
responsibilities of a job position and the characteristics of
the individual that should be hired for the job
o Job Description- the documentation of tasks and
responsibilities specific to a job position
o Job Specification- individual should have necessary
credentials
o Source of Human Resources
 Internal Sources- other work groups or department
within the organization from a which qualified
person can come from to fill in a vacant position
 External Sources- channels outside the organization
which include the internet, the company website,
newspaper advertisements, employment agencies,
executive search firms, on-campus recruiting plans,
employee referrals, unions, direct applications and
competitors
- Selection
o A pool of applicants are sourced internally and externally
from which an employee will be hired
o Preliminary Screening- educational and performance
records, applicant’s personality, skills and attitudes
o Physical Examination
- Orientation
 o Conducted by the manager for the new hire to familiarize
the latter with his work, colleagues, work environment as
well as the policies and goals of the organization
- Training
o Process of developing skills in employees that help them
to be effective in their tasks and contribute to
organizational success
o Types of Training
 Classroom training- information is transmitted
through lectures
 On-the-job training- employees learn how to do the
tasks simply by performing them
 Simulation- employees participate in role playing
and other experiential exercise
 Job rotation- exposure to different jobs
- Performance Appraisal
o Process of assessing the contribution of the employee to
the achievement of organizational goals through the
measurement and evaluation of his productive activity
o Compensation and Rewards Systems
 Monetary and non-monetary benefits given to
employees to reward them for the job knowledge,
skills and abilities they can demonstrate
- Employment Decisions or Employee Movements
o Managers try to maintain and develop employees under
his/her care. Depending on employee response in terms
of a decision, employee movements can involve any of
the following
 Promotion/reassignments
 Termination
 Retirement
 Resignation
o Employee Relations
