Planning, Organizing, Staffing and Leading: formula sheet

Key formulas

Planning process (usual order)

Set objectives → Develop premises → Identify alternatives → Evaluate alternatives → Select best alternative → Implement the plan → Follow up and review

Textbooks differ slightly in wording, but the order is logical. Objectives always come first and follow-up comes last.

Plans from broad to specific

Objectives → Strategies → Policies → Procedures → Rules

Budgets and programmes support these by putting numbers and schedules on the plans.

Policy vs rule

Policy = guide with discretion; Rule = compulsory, no discretion

Example: a policy of promoting from within versus a rule of no smoking in the factory.

Procedure vs method

Procedure = sequence of steps for a task; Method = one way of doing a single step

A procedure may contain several methods.

MBO process (sequence)

Set organisational goals → Set individual/unit objectives jointly → Plan action → Implement → Monitor progress → Appraise performance → Give feedback and reset goals

Questions often ask for the correct order or the step that comes first. Goal setting comes first and review and feedback come last.

Features of good MBO objectives

Specific, Measurable, Achievable, Relevant, Time-bound

This is the commonly used SMART checklist. Use it to judge whether an objective is well stated.

Decision-making steps (sequence)

Identify problem → Gather information → Develop alternatives → Evaluate alternatives → Select best alternative → Implement → Follow up and give feedback

Different books merge or split steps slightly, but the logical order stays the same. Defining the problem is always first.

Programmed vs non-programmed decisions

Programmed = routine, repetitive, rule-based, low level, low risk. Non-programmed = unique, non-repetitive, judgement-based, top level, high risk.

Match the keywords in the question to one side. Do not mix the two lists.

Organizing process

Identify work → Divide work → Group into departments → Assign duties and authority → Set reporting relationships

Use this order when a question asks for steps in the process.

Unity of command

One subordinate = one superior

Matrix structure breaks this principle by design.

Scalar chain

Top management → Middle management → Supervisors → Workers

The formal path for authority and communication.

Parity of authority and responsibility

Authority = Responsibility

Responsibility without matching authority leads to poor results.

Structure and grouping basis

Line: chain of command | Line and staff: command plus expert advice | Functional: by function | Divisional: by product or region | Matrix: function plus project

Match the basis of grouping to the structure name.

Authority-responsibility parity

Authority ≈ Responsibility

Authority given should match the responsibility assigned. This is a principle, not a calculation.

Delegation rule

Authority can be delegated; accountability cannot be fully delegated

The manager remains answerable to their own superior for the work.

Direction of flow

Authority flows downward; responsibility flows upward

Use this to answer difference questions.

Span and levels

Wider span → fewer levels; narrower span → more levels

This holds when the total number of employees is the same.

Centralisation vs decentralisation

Centralisation = authority concentrated at the top; Decentralisation = authority dispersed to lower levels

Decentralisation is a policy. Delegation is a process between two people.

Staffing process sequence

HR planning → Recruitment → Selection → Placement and induction → Training and development → Performance appraisal

Questions often ask which step comes first or next. Recruitment always comes before selection.

Recruitment vs selection

Recruitment = attracting applicants (positive); Selection = choosing and rejecting (negative)

Recruitment comes first. Selection ends with a job offer and a contract of employment.

Sources of recruitment

Internal: promotion, transfer, former employees; External: campus, agencies, advertisements, job portals, employee referrals

Internal sources motivate existing staff and cost less. External sources bring fresh ideas.

Training methods

On-the-job: coaching, apprenticeship, job rotation, understudy; Off-the-job: lectures, case studies, role play, simulation, conferences

If training happens at the workplace while doing the job, it is on-the-job.

Training vs development

Training = present job skills (short term); Development = future growth of the person (long term)

Training is job-oriented. Development is career-oriented.

Maslow's hierarchy (bottom to top)

Physiological → Safety → Social → Esteem → Self-actualisation

Lower needs are satisfied first. Learn the order explicitly: Physiological (1st), Safety (2nd), Social (3rd), Esteem (4th), Self-actualisation (5th). To separate the two S levels, remember that you feel safe in your job before you belong to a team.

Herzberg's factors

Hygiene factors = prevent dissatisfaction; Motivators = create satisfaction

Opposite of satisfaction is no satisfaction, not dissatisfaction, in this theory.

McGregor's assumptions

Theory X = dislike work, need control; Theory Y = self-directed, seek responsibility

They are assumptions managers make about people, not types of workers.

Vroom's expectancy theory

Motivation = Expectancy × Instrumentality × Valence

A multiplication model: if any one part is zero, motivation is zero.

Autocratic style

Decision-making = leader alone

Centralised authority, one-way communication, quick decisions, low morale of followers.

Democratic style

Decision-making = leader + group consultation

Two-way communication, higher morale and commitment, but slower decisions.

Laissez-faire style

Decision-making = group, leader gives minimal direction

Works with skilled and motivated people; can cause confusion if the group is weak.

Communication process

Sender → Encoding → Message/Channel → Receiver → Decoding → Feedback

Communication is complete only when feedback confirms understanding.

Formal vs informal channels

Formal = official chain of command; Informal = grapevine

Grapevine is fast and not officially recognised; it can spread rumours.

Direction of communication

Downward, upward, horizontal, diagonal

Direction describes how messages flow in the organisation, whether the channel is formal or informal. Downward: orders. Upward: reports, suggestions. Horizontal: same level. Diagonal: different levels and departments.

Types of barriers

Semantic, psychological, organisational, personal, physical

Match the barrier to its cause: language (semantic), emotions and bias (psychological), structure (organisational), attitudes and abilities of the people involved (personal), noise or distance (physical).

Quick revision

• Planning is deciding in advance what to do, how, when and by whom. It looks ahead and is a continuous process.
• Plans differ by use and time: standing plans (policies, procedures, rules) repeat, while single-use plans (programmes, projects, budgets) are for one occasion.
• A policy guides thinking, a procedure gives steps in order, and a rule is a fixed instruction with no discretion.
• MBO means superior and subordinate set objectives together, then review performance against them.
• Decision making is choosing the best option from available alternatives.
• Organizing means grouping activities, assigning duties and setting reporting relationships.
• Authority is the right to give orders, responsibility is the duty to complete the task, and accountability cannot be passed on.
• Delegation is passing authority to a subordinate. You remain answerable for the result.
• Span of control is the number of subordinates who report directly to one manager.
• Recruitment attracts candidates. Selection chooses among them.
• Training improves skills for the present job, while development prepares people for future roles.
• Motivation theories explain what drives people. Leadership style (autocratic, democratic, laissez-faire) shows how a leader uses authority.

Common mistakes

• Confusing policy with rule. Fix: Ask whether there is room for judgement. A policy allows discretion, while a rule allows none.
• Calling a procedure a policy. Fix: A procedure is a chronological series of steps. If the question lists steps in order, it is a procedure.
• Thinking MBO means the manager sets goals and the employee follows them. Fix: Remember that MBO needs joint goal setting. Participation is its core feature.
• Saying selecting the best alternative is the first step in decision making. Fix: Learn the order. Identify the problem first, then gather information, then list and evaluate alternatives, and only then select.
• Saying staff specialists in line and staff organization can give orders to line managers. Fix: Remember staff only advise, assist and support. Line managers command.
• Confusing functional and divisional structures. Fix: Ask what the grouping is based on. Same type of work is functional. Same product or region is divisional.
• Saying a manager can delegate responsibility completely and be free of blame. Fix: Remember that you can delegate the task and authority, but you stay answerable to your superior.
• Treating delegation and decentralisation as identical. Fix: Delegation is a person-to-person act. Decentralisation is an organisation-wide policy of dispersing decision power.
• Treating recruitment and selection as the same thing. Fix: Recruitment finds and attracts applicants. Selection chooses among them. Recruitment is positive, selection is negative.
• Placing promotion and transfer under external sources. Fix: Promotion and transfer fill a post from within the organisation, so they are internal sources.

Exam tips

• Learn the six plan types as one-line definitions and practise spotting them from short situations.
• Remember the order of the planning process, with objectives first and follow-up last.
• Policy versus rule and procedure versus policy are the most common trap pairs. Revise them together.
• For limitation questions, think of cost, time, rigidity and unpredictable future.
• There is no negative marking, so never leave a question blank. Eliminate and guess.
• Expect direct questions on definition, features, benefits and limits of MBO. Learn one-line points for each.
• For decision-making steps, memorise the full order and watch for options that swap two adjacent steps.
• In programmed vs non-programmed questions, find the keyword (routine or unique) before reading options.