Unit 3: Organizing, teamwork, staffing & motivation
Principles and Practices of Management notes · PTU syllabus (BBA 101-18)
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Unit summary
Organising arranges people and resources to carry out plans. This unit covers formal and informal organisations, task forces, departmentation, organisational structures, avoiding inflexibility, teamwork and team building, staffing through recruitment and selection, and motivation and its theories.
After this unit you can
- Compare formal and informal organisations and explain departmentation
- Describe types of organisational structures
- Explain team-building stages and the staffing process
- Explain major theories of motivation
PTU syllabus topics
- Formal and informal organizations
- task forces
- departmentation
- organizational structures
- avoiding organizational inflexibility
- teamwork and team-building stages
- staffing — recruitment and selection
- motivation concept and theories
- 1Forming
Members meet, polite and unsure
- 2Storming
Conflict over roles and ideas
- 3Norming
Rules and trust develop
- 4Performing
Team works smoothly toward goals
- 5Adjourning
Task ends, team disbands
Topic 1
Formal and informal organisation
Created by
Management, deliberately
Social interaction, spontaneously
Purpose
Achieve organisational goals
Satisfy social needs
Structure
Defined hierarchy and rules
No fixed structure
Communication
Official channels
Grapevine
A task force is a temporary team formed to handle a specific problem or project, after which it is dissolved.
Topic 2
Departmentation and organisational structures
Departmentation groups activities into departments. Bases: function (production, marketing, finance), product, territory, customer, process and time.
Line
Direct chain of command
Small firms
Line and staff
Line managers plus specialist advisers
Medium and large firms
Functional
Grouped by specialised functions
Firms with one main product
Divisional
Self-contained divisions by product or region
Diversified large firms
Matrix
Dual reporting to functional and project managers
Project-based firms
Avoiding organisational inflexibility: keep structures simple, review them regularly, use task forces and cross-functional teams, decentralise decisions, and encourage open communication.
Topic 3
Teamwork and team building
A team is a small group with complementary skills committed to a common purpose with mutual accountability.
- 1Forming
Members meet, polite, unsure
- 2Storming
Conflict over roles and ideas
- 3Norming
Rules, trust and cohesion develop
- 4Performing
Focused, effective work
- 5Adjourning
Task complete, team disbands
Topic 4
Staffing: recruitment and selection
Staffing fills and keeps filled the positions in the organisation: manpower planning → recruitment → selection → placement → induction → training → appraisal → compensation.
- Recruitment searches for candidates and encourages them to apply. Internal sources: promotions, transfers, referrals. External sources: advertisements, campus recruitment, job portals, placement agencies.
- Selection picks the most suitable candidate: application screening → tests → interviews → reference checks → medical exam → job offer → appointment.
Topic 5
Motivation and its theories
Motivation is the process that stimulates people to act to achieve goals.
- Self-actualisation
Reaching full potential
- Esteem
Recognition, status
- Social
Belonging, friendship
- Safety
Security, stable job
- Physiological
Food, shelter, basic pay
- Herzberg's two-factor theory: hygiene factors (pay, working conditions, policy) prevent dissatisfaction; motivators (achievement, recognition, growth) create satisfaction.
- McGregor's Theory X and Y: X assumes people dislike work and need control; Y assumes people seek responsibility and are self-directed.
- Vroom's expectancy theory: Motivation = Expectancy × Instrumentality × Valence.
Key terms
- Departmentation
- Grouping activities into departments
- Matrix structure
- Dual reporting to functional and project managers
- Task force
- A temporary team for a specific problem
- Recruitment
- Attracting candidates to apply
- Motivation
- The drive that stimulates people to act toward goals
Quick revision
- Formal by design; informal by social interaction.
- Structures: line, line and staff, functional, divisional, matrix.
- Tuckman: forming, storming, norming, performing, adjourning.
- Recruitment attracts; selection chooses.
- Maslow, Herzberg, McGregor X/Y, Vroom.
Important exam questions
Practice questions written to the PTU exam pattern for this unit's syllabus: short answers (Section A style) and long answers (Sections B and C style).
Short-answer questions
- Q1.Differentiate between formal and informal organisation.
- Q2.What is a task force?
- Q3.List the bases of departmentation.
- Q4.Name Tuckman's stages of team development.
- Q5.Differentiate between recruitment and selection.
- Q6.What are hygiene factors?
Long-answer questions
- Q1.Explain the types of organisational structures with their merits and demerits.
- Q2.Explain teamwork and the stages of team building.
- Q3.Explain the staffing process with recruitment sources and selection steps.
- Q4.Explain Maslow's and Herzberg's theories of motivation.
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