 Assalamu alaikum, I am Mokhtar Amar for Varsity University's course MGT 501 that is Human Resource Management and today we are here for lecture number 3. So, how are we doing? We mean you and myself. And I hope you are enjoying it and same time you are learning 2. So, let us start our lecture number 3. Before we start lecture number 3 you know what we have to do as we did last time in lecture number 2. We have to see what we have covered in lecture number 2. So, let us start discussing what we have covered in lecture number 2 the last lecture. You remember what was last lecture? It was about yes that was about the function of human resource management. And what were those functions basically? There were 4 functions yes, number 1 was planning, number 2 was yes organizing, number 3 was leading yes and 4 was controlling. And after that we also discuss something else and that was about the level of management. How many layers are there? And initially we discussed that there are 3 there were 3 types of layers in the management levels. And they were top management, middle management and line management. Or we can say them that was top management managers or CEOs. Then there were middle managers and then line manager or supervisor. And what else did we cover there? You have to follow it yes that was HRM that we kind of concluded that basically HRM is the function of the basic management. What about today? Again during the last lecture, lecture number 2 at the end of the lecture I try to discuss I gave you some ideas that what we will be discussing in lecture number 3. So, today we will discuss about the organizations and the component of organization. You must be asking why we are discussing these things? Because our subject is human resource management. Since you are the computer science students and you might not have the basic knowledge of management or organization. So, it was decided that we will build some basis by you people. So, that you should have idea that what is this management is and what is organization and what is behavior. So, if you are clear about these basic things naturally you will be feeling more comfortable when we will be talking about human resource management practices and all those functions. So, talking about as you know that we have already covered the basic concept of management, their functions and all of the related basic information. Now, let us see where all those activities are taking place that is the organization. So, today we will talk about organizations, types of organizations, what are their functions and how they are kind of performing or playing the vital role for the whole accomplishment of the goals of any organization. So, what is an organization? You must have heard about it. You must have discussed it. You must have read about your computer science and computer organizations. But, we are talking about management. What this organization is different kind of definitions. So, people are saying different things in a different way, but basically the concept is the same. So, we can say organization is what when two or more than two people are working together, why they are working because they have some kind of common interest there. So, what happens in the organization? Islam had discussed management. It is a process where there are only activities. Why? So that they should be able to achieve some goals. Similarly, the place where all those people are the kind of set up where those different activities are being taking place. For example, we have to achieve that particular goal. So, organization is simple though clean line or major definition of the update is basically when two or more than two people they are getting close, they are coming close together, working together. And remember it is not necessary that they should be at the same place. Today we have a concept of virtual organizations. Yes, what happens in that? There is a set up here in Pakistan. You might have some people working for you in Japan. There might be certain people for you who are working in USA, but still you are in the same organization. Why? Because all of you are all working together for one common goal of your organization. That is why you are part of the organization. So, do not misinterpret it in such a way that it is necessary to work in one place, in one city, in one room, in one room. It can be done in different places, in different locations, even in different countries. And today the computer science and technology are the reason. Now, we have this virtual organization concept which is working very effectively and efficiently. So, how did the organization define here? An organization is two or more than two people working for common interest. And what can be that interest? Of course, to achieve certain goals. Let us see, there is another definition. What do they say in this? Why? So that you should kind of put them a different structure setup of the organization, so that they should be able to deliver for the achievement of that particular goals. Now, you can see two different, two new things, what is profit for profit organization and non-profit organization. Technically, we can say which organization can be non-profit? Nobody is doing anything free. There must be something for them. We can have financial aspects. They work for the financial return. But some institution, some organization are also working. They might have some other ideas. Social service. Actually, you can say that they are also doing these things for some cause. Yes, Allah Ta'ala to be happy. But still, they might not have the direct, they might not have the concept of direct, direct philosophy to work. Money or financial resources might not be the main focus of those organizations. So, we call them non-profit organizations. And the organization which is working for financial return, we form those organizations which are for profit. So, you can see the details of these three terminology here in the slides. These notes will be available for you in detail so that you don't get confused. Let's see what else we can say about organization. So, how can now we define that what is organization? Yes, people working in a setup, having the coordinating efforts so that they should achieve some goal. So, what happened? So, we have to see a social reality where people are working together. And why they are working together? They have a specific goal. They are goal oriented. And if everybody will start working for the same thing, you might not be able to achieve the goal. So, you have to define certain structures. You have to organize the organization in a way that you have specific task for each person. And how you do that? Different departments. And who will do what? And remember that you are not doing all those things in isolated form. You have been affected by certain forces. And what are those forces? We call them the environment. And inshallah in next few lectures we will also be discussing the environment role. So, then we will look at micro-environment, macro-environment, internal-environment or external-environment. So, then organization is such a thing which makes social reality. This is the social people working together. They are goal oriented. Yes. And what else? They are structured. You define certain departments there. And of course, it is facing or having a lot of forces affecting that particular organization. So, we cannot work in isolated form. So, we can understand the organization in such a way that we can understand it. There are two prerequisites to be an effective organization. One is that all components, all people of the organization, they must cooperate with each other. If they will not cooperate, so then their direction will be different. So, naturally they are not going to achieve the goal. So, first requirement is that they must cooperate with each other. And how can be those cooperation? You have a production department, you have a purchase department, you have account departments. If a purchase department is not able to arrange raw material for the production at timely, how can you expect that production department will be delivering something. And if account department is not providing them, our financial department is not providing them the resources, the financial resources, how this purchase department is going to arrange the raw material. So, naturally all those different structure component of the organization, they are interlinked with each other, depending on each other and they must cooperate with each other so that the organization should achieve their objective in an efficient and effective manner. And number two, they must communicate. How can I know that my component, the other component is requiring something? How can the purchase department, as we were discussing earlier, they will know that production department want more this raw material. And unless they will communicate with the account or finance department, how can they know that they will be needing extra resources, financial resources for the next months for extra purchases. So, these are the two prerequisites for the organization to work, that they must cooperate and they must communicate. So, now I hope you have got an idea to what this organization is and how, what are those prerequisites. And the number can be different. Size of organization can start, as I said, with two people, it can go to thousands. But everybody organization they have thousands and thousands of working people working together. You can have different, those structure components at different locations. Let's see what is next. So, what is happening? So, virtually, if we see, all organizations, they combine certain things. What are those things? Rami Chauhan, Rami Chauhan, Rami Chauhan, Rami Chauhan, Rami Chauhan, Rami Chauhan, Rami Chauhan, Rami Chauhan, Rami Chauhan, Rami Chauhan, Rami Chauhan. All organizations, they combine certain things. What are those things? Raw material, financial resources, their human part and whatever technology or knowledge they have. They have to combine all those things. And why they want to do again? So, that they should be able to produce something. Yes, financial resources, the raw material, the technology and the people working for them. These are all, we will take them input. And of course, when you have the input, ultimately you will get some output, which is, if you mix it, put it in, then it will produce something. What is that? That can be, if you are a production industry, production organization, you will be producing something. You are making a computer, you are making TV, you are making cars, you are making clothes, whatever. So, you will be giving out or producing some finished goods, we call them. Yeah, you will be, the output will be in the form of some services. We have provided courses for the virtual university for you. So, our input, there are so many different kind of, like they are using all those teaching materials, they are using their financial resources, they are energy people. We tutors open and deliver lectures. What a different technology, your recording system is in the form of CD, in the form of video, in the form of text, soft and hard copies are provided to you, so that you should be learning something. This is the concept of service. So remember, we can have production of goods or services, both things that will be the outcome of any organizations, all those input which we were doing, so output, our production will be of any finished goods or services. So, as I said in the beginning, the types of organizations that we will be looking at. Firstly, when we were defining organizations in the beginning, we discussed about organizations for profit and non-profit organizations. But, legitimate organizations that are made, we have defined them in two types of organizations, one is formal and the other one is informal. What do we mean by formal organization? As the word indicates, there are some formalities in it. What are those formalities? The set up of the organization where, the legal requirement, officially, some kind of, just make structure, formal organization. Generally, we can see certain organizations working in the reality. But sometime, as I said, there might be organizations which are informal. What are those? One is that you might not have any kind of legal structure, a legal binding that you should be working together. Even within the organization, people with similar interests, people having the same kind of attitude or behavior, they might come close together. You will be getting the detailed description and definition of these terminologies at the end of each lecture notes. Now, why do we have those organizations? The more complex thing is, the more structured effort, the more people are required to accomplish that difficult task or the complex task. They are more efficient than individuals. If you are managing some kind of, as we discussed last time, some kind of function or something like that, you need to organize those things. You need an organization setup to perform those things so that you are able to deliver them. You might have seen the larger kind of organizations. You might have seen that as much as their business, as much as their work, they expand the same way. They hire more people. They range more equipments. They need more financial resources So that the expansion can sustain it. As the work increases, the size of your organization also increases. Similarly, the working of your organizations also changes. Or you'll be needing more people. And for that organization, you need more resources. Of course, the human resources that we're talking about are important roles. They also play a very important role there. People are using new technology as well. Because the work has increased. Earlier you might have 10 or 50 people working for you. Doing the paperwork. You installed your machines. You have used now a computer. So that the work becomes easier for you. So again, remember that organizations are required so that you should be able to do things in an efficient manner. To achieve your goal or mission, you need a proper organization. That is why you need organizations to perform the complex and more complex activities for yourself or for whatever objective you want to perform there. Now let's see what are those components of any organization. What is the organization? What is its purpose? Now let's see what are the components of any organization. If we divide the components, we can divide those components into four groups. Number one, task, then the people, the structure, and technology. And let's discuss them one by one. Number one, task. What does this task mean here? Task means the reason of survival of that particular organization. Why is this organization formed? What is their ultimate goal? What is their mission basically? Don't confuse these things. This is also at the end of the road. You will see those. What is the definition of mission, goal or objective that we use in different terminology and words? What does it mean? What is the objective? So there you will see that your keys are cleared. Coming back to task, each organization has one basic reason of their existence or survival in the organization, in this word. As I told you, some organizations are for financial return. Some organizations work for non-financial reasons. But still they have some objectives or goals. The business point of view of the organizations, mostly they work for the, we call them, to increase their market share. And ultimately, they are making the pie larger and larger. The financial return that they have, they work for that. The financial objective or mission that they achieve, they have only goals. They have to perform this, they have to do good production, they have to do time lease marketing, they have to send the produce or services that they are providing to only the market, so that they have tasks for any organizations. So number one component is task. And tasks mean the mission, the purpose, the objectives. Now let's see what is next. This is the people. And this is the third lecture. We are discussing the importance of that while discussing why these are important things. So humans are people. People working in the organization. The first component is task. Second is the people. And third is the structure. And the structure again, we are talking about the organizational structure. What is the span of control? This is a new word now. A hierarchy that says that you are the chief executive, the person who assists you is called the director, the general manager, whatever. The terminology is used in the organization. So in this structure organization, that is the third component. In the beginning, we discussed that there are different departments. In the components of the organization, this structure is playing also a very important role. And that is the third component of the organization. And the fourth one is technology. Very important. And changing with a big, large speed basically, we can say. And nowadays technology, the changes we have read in history, if any change comes, it takes a lot of years. But today's technology is a new day every day. So coming back to our components of the organization, so basically we have four components. The task, we have objective missions, the purpose, and the people, the human resource, the technology, and structure where you have different components of different layers of organization. Now, if you don't do any of the components of anything, what do you expect? You will not get the results. You are sitting watching at the TV. You are sitting working at your computer. Now, within your computer, the CPU, you call it, there are only components inside it. If any of the components are not working, it doesn't matter how efficient or good or advanced level of components are, rather you have that might effect the working of your components, that whole machine basically. How good is your TV? Is it expensive? You have bought it from outside. But there is a small one inside it. If any of the components are not working efficiently, then what will happen? You are not going to get the desired results. Similarly, any organization that we are talking about, if these four components are properly working, none of them works, none of the components are clear, and in the beginning I discussed that they must cooperate with each other and they must communicate with each other. So even if one component is not communicating with the other component, or cooperating with the other component, what is going to happen? It is not going to work. Even the switch that you have installed, to get the power for your computer, if the pin gets damaged, if the star gets damaged, then the input of the power should communicate properly. What will happen if the basic motherboard does not reach the other component? That is not going to work. So we have to remember these things. Now let's see what is next. So the organization kind of system we are talking about. As you have an instrument or a machine, you are sitting on the computer, you work on the keyboard. Now you are giving some instructions to your machine, to your equipment. The input source, through your keyboard or mouse, you are giving them instructions, they will take all the information from the CPU and process it. And in return, you will be working on the screen or on the printer if you are working on the email, on the network, it will perform output for you. Similarly, in an organization, if we talk about the process of organization, you have inputs and you have the output. And then there is a conversion process. We call it conversion process or process, as it is called. Our simple principle is, if the input is correct, if the process is correct, you will get good output. So basically, whatever activity you see, whatever production, let's see, you make clothes, you make computers, you make bikes, you make cars, you make shirts for that purpose. Your copy is a book, you will get it from the paper, through the process, you are using the CD for your computer. This is also a process, with basic input, a process for the conversion process, the output looks like this. The finish, what we call it. You sit on the seat, on the table, your TV, your computer is kept. This is also a piece of wood, cut and passed through the process, and came in this shape. See, everything is from the same kind of inputs, right? So, what is the difference? A TV ke li aap, paanshez aar dene ko tehar nahi ho, aur aak o TV hai, uske li aap, pa chhez aar dene ko tehar ho rati ho. You are not willing to pay even 2000 for a PC, which is not, of course, working. And you are willing to pay for the state of the art, latest PC, around 100,000. What is like that? The input is not the same in everyone. The difference is which conversion process who made it, and then the output, which is finished wood, came in this shape. So, if you see the agnation as a system, you will see two or three important things in this slide, inputs, output and the conversion process. And we have to be very careful if we want to achieve our goals. We have to put the required input and take the output through the proper conversion system and process. You have tea at home. Now, the inputs are the same. What does tea have to do with it? It has water, you add water, milk, sugar, isn't it like that? And then, of course, on the stove, on the heater, on the stove, you make tea. But now, there is something special that there is mother, sister, sister-in-law, tea is very delicious. Everybody might not have the same kind of, they might not make the same kind of tea for you. In the same house, they use the same utensils, they use the same pots, they take out the milk, they add the leaves, they use the same water. So, where is the difference now? Well, tea is better than other tea. Similarly, you take something from the market. So, as I told you, one thing is that you pay ten times more willing, instead of the other. The reason is that the conversion process, which we have discussed before, the synergy, the value addition thing, in the next lecture, in lecture number 5, we will be discussing those synergy effects, our value addition effect. So, again, I want to give more emphasis on this topic, this basically point, because it is going to have the long lasting effect on your learning in the next few lectures. Why are we forcing it on a human resource? Why are we forcing it on that process? The raw material is the same. As I discussed about the tea, at the same time, you go and bring a cake from the market, you even make clothes. Now, if you have a debt, then you have to cut the clothes and use the same button on the same machine. But how come a person is charging five times, six times more than a normal person? And we are willing to pay that. That is the conversion process. And in the organization, that is the same thing. What is the conversion process basically? But remember one thing. Again, we are not talking about the isolated environment. It is in a reality, in a dynamic environment. In this, it can be micro-level or macro-level to effect the process and the activities. So, again, let's focus on more to our debt conversion process. What is the process? The task, the people, the structure and technology. Based on this, the conversion process is either more efficient or not efficient. We also defined efficiency in the first lecture. Efficiency is what? It is a ratio between output and input, right? If you get more output in some input, then we say efficient system. So, this is the conversion process. This is the process. It gives you good output in the finished code. So, in any organization, what is its effective process? How efficient is it? And the process here means how effective or efficient that organization is. Which is responsive and delivering up to the mark. Not only delivering, but delighting new people. You are more than satisfied if I am a manager. I will be more than happy if my organization is working properly. And the meeting that those objectives, whatever objectives like, if I have objectives that I should have be having more market share, my organizations market value increase, people use my product or service more then I should be more than happy because I am making, I am earning. I am kind of delivering for which I am the, my existence, the existence of the organization, who we are delivering, who are achieving. So, how will that happen? Again, due to that process. And in the process, remember, are those components, which we call tasks, people, structure, or organization, which basically you achieve the maximum output. So, this is the process of the organization, which has input and output. There is a process which is called a conversion process. And the better the process is, the better the output will be, the better you can satisfy your stakeholder. And how can we judge that an organization is effective? There are some parameters, some indicators, which tell that this organization is effective, it's working fine, it is delivering. What are those parameters? You are depicted in a diagram. Let's start with a quality thing. What is quality? How can you say that your computer is a quality computer? Here, you are using this CD, in your computer, to listen to these lectures. In the video, how did you say that this is a quality thing? Yes, of course. Let's take another example. Take this pen that you have in your hand. How did you say that this is a quality pen? I don't want to go into detail of those things, but just a few things. The purpose for which this thing works, if it is a pen, if it is written, then we will say this is a quality thing. Is that enough? Yes. Write it and write it consistently. For example, if your CD is running, then it will still run. If it is tomorrow, then it will run. If it is next week, then it will run. Then we will say this is a quality CD. This is your pen. You just wrote it. You wrote two lines. You have just taken the new one provided. It is not that it has to be finished in 6 months. If the work is made for it, it is a purpose, it is doing the work consistently, then we will say this is a quality thing. So, first indicator, the first parameter to judge the effectiveness of any organization is the quality thing. Whatever they are doing, they are producing anything. For example, I make a product that they give services. If it is a quality thing, then we will say that that organization is very effective. That organization is performing well. Second thing can be productivity. The productivity of that is up to mark. Quality thing is producing the requirement or whatever was expected, we call it benchmarking. Benchmarking you compare with the standard, basically. If in one machine, there are 10 things to be made, then your machine should make at least 10. So, we will say this is productive. So, the expectation of any organization is what the rest of the organizations are delivering. If they are performing the same way, we will say that organization is effective. Then, the satisfaction. Satisfaction of home. You are a stakeholder. Now, this is a new term, as I said before, stakeholder. There is this kind of a code called stockholder. In the financial term, stockholders who invest in that business, they are called stockholders whose direct investment is done. And stakeholders are those people who have directly or indirectly something, some relation with those but that particular organization. Your customers can be your stakeholders, your investors can be, your suppliers can be, your things that sell ahead can also be yours. So, the one who has any connection with your organization is your stakeholder. So, your stakeholder's satisfaction is very important. If they are satisfied from your organization's performance, of your organization's delivery, productivity, of quality, so that is also one indicator of your effectiveness, your mean, your organization's effectiveness. Then, efficiency. Now, what does this efficiency mean here? Efficiency means with minimum input you can have the maximum output. The wastage is minimum. If your institution, your institution, your organization if they are giving the efficient results yes, that is also one criteria of your success, your effectiveness. What else? Yes, adaptive. How good is your organization to adapt the changes? As I said, technology is changing, expectations are changing, every day you will find something new in the market. Or if you are smart enough if your institution, if your organization is smart enough they always say that change has an environment change. If you want to survive you have to change with the changing environment. So, if your organization changing pace with your technology or whatever changes are there in the market, in the environment basically, if you are adaptive of that changes or whatever changes are there, those changes you are successful. So, that is also one indicator of your success, of your effectiveness. And then is the development. What does development mean here? Keeping in view, keeping in your mind the future aspect, the future demand of the stakeholder or the market. If you are developing you mean here your organization is developing. It is not that wherever there is a push that is fine. But everyone has to keep it. Everyone has to move forward. If you have two things in your hand you might be thinking about four and so on. Similarly, organization we expand and develop for the future. So, in that that is also one indicator. He also says that if the organizations that are developing along with time we understand that they are effective organization. Let's see it is not so simple. They are organizations also facing certain challenges with the time. One is the general environment as I had told you that in an isolated environment no institution can work. They have to live in a dynamic environment. But this is life. Everyone has to survive in it. Let's see talking about today's organization what kind of challenges they are facing today. Yes, there are so many challenges that few to discuss here. One is technology as I have discussed here technology is then by then changing. It started from 246 Pentium-1, Pentium-2, Pentium-3, Pentium-4 new technology is coming new things are coming to the market every day. So, organizations they have to cope with the changes. They should be at their toes always. So, technology is one, changing technology is one basically challenge for today's organization. Now, you have invested lakhs of rupees in your ideas. Now, if you have to live in the organization, in the society in the market, you have to be the leader type of thing. You have to move forward. Then similarly you have diverse work force very important topic. We will discuss in coming lectures a very important role play in today's organization management. Diversity can be due to any reason due to age, religion, gender origin of your kind of people working from different countries in one organization or education base cultural differences. They are good, but same time they have some organizations are in problem due to this diversity of work force. We will discuss those things in later in some lectures. Then is the multiple stakeholders. The more you expand, the more people get involved with you. In the form of a supplier producer, in the form of an outsider. The more people are your stakeholder the more difficult it is for you to satisfy them all. So that is also one challenge today's organizations are facing. Then is the responsiveness. You should be very smart, very responsive to your stakeholders to your customer. If you are not responsive, you are not concerned about them then survival is difficult. They are with you today. They will leave you and go with others. They are buying your product tomorrow when you will see that you don't care. So why should they be caring? First there was a monopoly every one of us had a telephone PTCL department. Now you have options ahead. You have so many mobiles which are giving you connections. Others are also coming to the market. Then why are you with one? It is not compulsory. Thank you very much. I can go to another one. So this is also becoming another challenge for the organization. Rapid changes, not only technologies changes there are many other things. There are many styles of working environments. Next we will discuss in the 5th or 6th section that the workforce is changing. What are the changes? We used to think that we have to come here in the evening and work here in the evening. Now people are thinking about the delivery. It is not time, it is how much you deliver. So changes are coming in terms of perception in learning. People are going towards higher education. Technology is not coming. The boundaries which we are going towards the free world the new concept of WTO will become the meaningless things. What is globalization? The word has become a global village. What does it mean? If you look at the world the boundaries are becoming meaningless now. Earlier we used to think that what is this Russia what is this Tashkan you can get the flight and go there within no time. Together new blocks are being built new interiors are increasing. With this a new style of working and managing is changing. This is also becoming a big challenge after today's organization. So many different challenges and organizations can face today. But there is also a survival of it. With these challenges they can get their way out. This is what they say they are going to fly high. These are the things that today's managers are going to take out for them. So we will discuss these things together. So what do you think? Enough for today? Should we discuss something more? So let's see what we have just to wrap up what we have covered today. So today we discussed what organizations are and what these are. Yes two are more than two people working together. Why do they work? So that they can achieve their goals. Then we saw how many organizations have done. We discussed informal organizations. Then we discussed about organization for profit and non profit organizations. Then we saw what the components of the organization are. Yes the same task, people structure and technology. Then we saw what the process of the organization is. Input conversion process and output in particular environment. And then we discussed about challenges. Before this we discussed how the effectiveness of the organization is seen. We discussed some indicators. We discussed what the effectiveness of the organization is. Yes, quality was there. Responsiveness. And the last topic we discussed right now was the challenges today's organization. What were they? Technology, globalization or rapid changes. Yes, these are many changes to face the organization. So that was not that much difficult, right? Keep one thing in mind that we are the subject of human resource management. And this is to make your base that I am discussing all the things. There will be 3-4 or maximum 5 lectures in which we will be discussing the basic concept. We have discussed the organization. So that you should be clear before going for the application of all those things. The HR subject is very effective, kind of real life subjects. You will be able to work everywhere. You are working here. You have to make your own and work with people. If you know all those basic things then I hope you will be performing better and you should have not been knowing all those things. So what did we do today? We just touched those things related to the organization. And I hope that not you are enjoying the same time but you are also learning. But it is important that you do some reading as well. So in the beginning of every lecture the first lecture I will discuss and the end of lecture then I will summarize what we have read that day. And then also I will give you some kind of hints in the next lecture so that you also stay with me and also do your efforts. Let's see what we will be discussing in lecture number 4. Yes, now we are moving forward from the organization where the people who work in the organization working together what are the issues and how they cope up. And also we will discuss about human behavior part. Very important. If we understand what behavior is because these are not machines as I have already said so many times. These are human beings and their behavior is more motivated than others. So it becomes easy for us to work with them. So remember next time we will be discussing about working in the organization working together and then we will start based on what is the behavior of the individual and what is the difference I will expect from you that you will read this before time so that when we discuss in lecture number 4 you should also have some ideas about what we are discussing understanding conceiving it so for today that is enough but before we start I will say again believe in hard work and yourself too nothing is impossible same time nothing is piece of cake you have to work hard take care peace be upon you