Unit 4 of 4 · B.Com Sem 1

Unit 4: Staffing, motivation & control

Business Organization and Management notes · PTU syllabus (BCOM 101-18)

3 min read4 topics10 exam questions
On this page
  1. Unit summary
  2. Staffing: recruitment and selection
  3. Motivation and its theories
  4. Function and process of control
  5. Span of control
  6. Key terms
  7. Quick revision
  8. Important questions

Unit summary

People make plans work and control keeps them on track. This unit covers staffing — recruitment and selection; motivation and the theories of Maslow, Herzberg and Vroom; and the meaning, function and process of control, along with span of control.

After this unit you can

  • Explain the staffing process, sources of recruitment and selection steps
  • Explain Maslow's, Herzberg's and Vroom's theories of motivation
  • Explain the nature, importance and process of control
  • Explain span of control and its determinants

PTU syllabus topics

  • Recruitment and selection
  • motivation theories (Maslow, Herzberg, Vroom)
  • function and process of control
  • span of control
HierarchyMaslow's hierarchy of needs
  1. Self-actualisation

    Reaching full potential

  2. Esteem

    Recognition and respect

  3. Social

    Belonging and friendship

  4. Safety

    Job security, safe workplace

  5. Physiological

    Food, shelter, basic pay

1

Topic 1

Staffing: recruitment and selection

Staffing is filling and keeping filled the positions in the organisation structure (Koontz).

ProcessStaffing process
  1. 1

    Manpower planning

  2. 2

    Recruitment

  3. 3

    Selection

  4. 4

    Placement and orientation

  5. 5

    Training and development

  6. 6

    Performance appraisal

  7. 7

    Promotion, transfer and compensation

Recruitment

Recruitment is the process of searching for prospective employees and stimulating them to apply.

ComparisonInternal vs external sources
Internal sources
External sources

Examples

Promotion, transfer, employee referrals, former employees

Advertisements, campus placement, employment exchanges, job portals, placement agencies

Cost and time

Low

High

Motivation

Boosts employee morale

Brings fresh talent

Limitation

Limited choice, inbreeding

May demotivate existing staff

Selection process

ProcessSelection process
  1. 1

    Preliminary screening

  2. 2

    Selection tests

    Intelligence, aptitude, personality, trade tests

  3. 3

    Employment interview

  4. 4

    Reference and background checks

  5. 5

    Selection decision

  6. 6

    Medical examination

  7. 7

    Job offer

  8. 8

    Contract of employment

  • Recruitment is positive (attracts many applicants); selection is negative (rejects unsuitable ones).
2

Topic 2

Motivation and its theories

Motivation is the process of stimulating people to act to achieve desired goals. It arises from needs → drives → goals.

Maslow's need hierarchy theory (1943)

HierarchyMaslow's hierarchy of needs
  1. Self-actualisation

    Achieving one's full potential

  2. Esteem

    Recognition, status, respect

  3. Social (belongingness)

    Friendship, acceptance

  4. Safety

    Job security, pension, safe conditions

  5. Physiological

    Food, shelter, basic salary

  • A need, once satisfied, no longer motivates; people move up the hierarchy.
  • Criticism: needs do not always follow a strict order; culture affects priority.

Herzberg's two-factor theory (1959)

ComparisonHygiene vs motivating factors
Hygiene (maintenance) factors
Motivators

Nature

Extrinsic — job context

Intrinsic — job content

Examples

Salary, policies, supervision, working conditions, job security

Achievement, recognition, responsibility, work itself, growth

Absence causes

Dissatisfaction

No satisfaction (but not dissatisfaction)

Presence causes

No dissatisfaction

Satisfaction and motivation

Vroom's expectancy theory (1964)

Motivation (Force) = Expectancy × Instrumentality × Valence

  • Expectancy: belief that effort will lead to performance.
  • Instrumentality: belief that performance will lead to reward.
  • Valence: value the person places on the reward.
  • If any factor is zero, motivation is zero.

Example

A salesperson will work hard for a foreign trip only if they believe extra calls will raise sales (expectancy), higher sales will earn the trip (instrumentality), and they actually want the trip (valence).

Exam tip

Compare the three theories in one table in the exam: content theories (Maslow, Herzberg) explain what motivates; process theories (Vroom) explain how.

3

Topic 3

Function and process of control

Controlling is measuring and correcting the performance of subordinates to make sure that enterprise objectives and plans are accomplished (Koontz).

Nature and importance

  • Goal-oriented, continuous, pervasive, forward-looking and backward-looking.
  • Accomplishes goals, judges accuracy of standards, makes efficient use of resources, improves motivation, ensures order and discipline, facilitates coordination.
ProcessControl process
  1. 1Setting performance standards
  2. 2Measuring actual performance
  3. 3Comparing actual with standards
  4. 4Analysing deviations

    Critical point control, management by exception

  5. 5Taking corrective action
  • Critical point control: focus on key result areas.
  • Management by exception: only significant deviations are reported to top management.
  • Types: feed-forward (preventive), concurrent, feedback (post-action).
  • Techniques: budgetary control, standard costing, ratio analysis, break-even analysis, PERT/CPM, management audit, MIS.
  • Relationship between planning and controlling: planning sets standards; controlling checks performance against them — "planning without control is meaningless and control without planning is blind".
4

Topic 4

Span of control

Span of control is the number of subordinates who report directly to a manager.

ComparisonNarrow vs wide span
Narrow span
Wide span

Structure

Tall, many levels

Flat, few levels

Supervision

Close

General

Communication

Slow, distorted through levels

Fast

Cost

High (more managers)

Low

Subordinate autonomy

Low

High

Factors determining span

  • Ability of the manager and subordinates.
  • Nature of work — routine work allows a wide span.
  • Degree of delegation and planning.
  • Communication techniques and staff assistance.
  • Geographical dispersion.
  • V.A. Graicunas' formula: relationships = n (2^(n−1) + n − 1), where n is the number of subordinates — with 5 subordinates there are 100 relationships.

Key terms

Staffing
Filling and keeping filled positions in the organisation structure
Recruitment
Searching for prospective employees and stimulating them to apply
Hygiene factors
Factors that prevent dissatisfaction but do not motivate
Valence
Value a person attaches to a reward
Management by exception
Only significant deviations are reported to higher levels

Quick revision

  • Staffing: planning → recruitment → selection → placement → training → appraisal.
  • Maslow: physiological → safety → social → esteem → self-actualisation.
  • Herzberg: hygiene vs motivators.
  • Vroom: M = E × I × V.
  • Control: standards → measure → compare → correct; span narrow = tall, wide = flat.

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

  1. Q1.What is staffing?
  2. Q2.Distinguish recruitment and selection.
  3. Q3.What are hygiene factors?
  4. Q4.State Vroom's expectancy equation.
  5. Q5.What is management by exception?
  6. Q6.What is span of control?

Long-answer questions

  1. Q1.Explain the process of recruitment and selection.
  2. Q2.Explain Maslow's, Herzberg's and Vroom's theories of motivation.
  3. Q3.Explain the meaning, importance and process of control.
  4. Q4.Discuss span of control and the factors determining it.

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