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Saturday, March 21, 2009
First Sem Question Paper -Feb 2009
Thursday, March 19, 2009
PRINCIPLES AND PRACTICES OF MANAGEMENT -As the manager of a reputed company how will you plan the various activities in your organization?
I know, today’s world urges from me the maximum output from minimum input. So I have to induce different management techniques to get maximum output. As a manager I have to face different management tasks viz. planning, implementing and controlling. It depicts the formation of policy and its translation into plans, execution and implementation of plans and exercising administrative control over the plans are my duties. I have to lead the men and machine to the objectives of the organization. There is need for constant motivation to get the things done from the subordinates. Managing people is not an easy job. This is because, as a manager I have to deal with a variety of people having different aspirations, feelings and emotions. Manager should make constant efforts to understand the nature aspirations and feelings of the people working under them, so as to manage them effectively. Now I remember the statement of a head of an American company with this regard is, “ We do not build automobiles, refrigerators shoe strings, radios; We build men. The men build products”.
The manager essentially deals with the people and resources. His job is to co-ordinate the activities of people and optimizes the use of resources so as to reach the defined goals. As he occupies the pivotal role in between the Board of Directors and the sub ordinate managers. Since the manager is a member of the group next above and at the same time the leader of the group reporting to him, he is best placed to bring to his group interpretation of the goals decisions, attitudes and action of the higher group. The manager thus, becomes the interlocking tie between higher and lower levels of the organization and the natural and most effective channel of communication.
As the manager I should perform three types of work simultaneously.
That is
Managing business.
Managing managers
Managing workers and work.
Each decision by me affects the above things and it is immensely affect the business. As a manager I am responsible for the following.
1. Carrying on to effect the policy laid down by the Board of Directors
2. Communication and interpretation of policy for information and subordinate executives.
3. Keeping the operations of the company under constant review and presenting to the board periodically the accounts and statistics showing the progress and current position of company’s affairs.
4. Maintaining definitions and structure of responsibilities of executive and supervisory position in the organization up to date in requirements.
5. Approving the manufacturing, distributing, development plans submitted by the senior executives concerned.
6. Giving decisions and interpretation of policies when for good reasons a departure from agreed policy arises.
7. Ensuring adequate arrangement to safeguard the continuity of supplies to the customers.
8. Having periodical meetings with the senior executives to review performance against budget standard.
9. Ensuring adequate co-ordination of activities through out the organization; and
10. Ensuring adequate facilities for development of executive and supervisory staff.
To handle the responsibilities and to organize the activities its important that the manager should have plan the various activities, in such a manner which help him to co-ordinate between the sub-ordinate and the management.
As a manager I have to plan the various activities of the organization in following manner.
1. Analysing the internal environment
It is important to analyse the internal environment prevailing in the organization. The internal invironment consist of manpower, machines, materials, organization structure etc. Such analysis would revearl the strength and weakness of the organization.
2. Analyses the external environment
A complete analysis of the external environment to be undertaken. Relevant data to be collected. It is important to forecast trends in the external environment. For instance, the planner has to collect data aout consumer preferences, Govt. policies, competitive conditions etc. Such analysis would reveal opportunities to be grabbed and threats to be faced by the organization.
3. Setting up objectives and goals
Once the environmental factors are analysed the next step is to set objectives. Objectives are set in all the key areas of opportunities, ie., production, marketing, finance, personnel and so on.
Ojectives should be SMART
Specific
Measurable
Achievable
Realistic and
Time Bound
Eg. 1000 units of computer LCD monitor in 2007-08
4. Framing alternative plans
After setting objectives, the next step is to determine the alternative plans. It is to be remembered that it is always advisable to prepare alternative plans rather than preparing a single plan.
Eg. To increase the market share of Compaque Presario LCD monitors, the alternative plans are
1. To increase in advertising
2. Improvement in quality
3. Increase in incentives to dealers
4. Special Gift / price offers to customers etc.
5.Studying (Evaluating) the alternative plans
Once alternative plans are determined, they are to be evaluated in terms of costs, benefits, risks etc. There must be cost benefits analysis of every alternatives. This is because of some plans may be more costly to impliment, but more beneficial to the organization.
The other plans may be less expensive, but may not yield desired returns. Therefore, it’s a necessity of studying the pros and cons of the alternative plans.
6.Selection of the Best Suitable plans
Once the plans are analyzed or evaluated, the next step is to select the best feasible plan from the alternatives. The alternative plan which give maximum benefit at minimum cost, is selected.
While selecting the best course of action, it will be consider the environment and objectives of the organization.
7.Formulation of derivative plans
Several operating plans are required to implement the overall plan. Such operating plans are short-range plans or sub plans, which are useful in day-to-day operations. Programs, budgets, schedules etc are its examples.
8.Establishing the sequence at activities
Once the derivative plans are prepared, the next step is to work out the sequence and timing of activities involved in each sub plans. The sub plan needs to be integrated. So as to achieve the goals as per the plan. Then it will be get clear picture of the final plan.
Thus analyzing the above activities and depending on circumstance of each case, I will plan the various activities in organization, which will gives maximum benefit at minimum cost.
PRINCIPLES OF ECONOMICS-What are the supportive arguments you will raise favouring capitalist economy?
The present age of LPG- Liberalization, Privatization and Globalization- the existence of the capitalism is very significant. In my opinion capitalism will accelerate the development of an economy. We, ourselves are the example of enjoying the fruits of privatization of our country via new economic policy-LPG. From 1991-92 after the economic reforms our economy lifted by the merits of capitalization / privatization of public owned or state owned undertaking. The GDP, rage of inflation wholesale and consumer price index, foreign capital investment, foreign trade etc. will shows the effect of capitalism.
Capitalism is the very simple form of economic organization where the Government does not play any significant role. The responsibility of maintaining and running the organization lies mainly with the private entrepreneurs. The basic central economics problems – what, how, and for whom (Prof.Samuel)- are handled by the private entrepreneurs.
The entrepreneurs are guided by their own self interest. The Govt. does not interfere with their activity. The Got can not direct them to produce or not produce anything. They are not required to get any licenses, permits etc. They can produce anything; they can sell this commodity at a time and a place of their own choice etc. As the economy is based on free private enterprise and Govt. does not interfere, this type of system is also known as ‘market economy’ or market system or ‘laissez faire system’.
In short a capitalist economy or free enterprise economy is one which the means of production viz., land, labour and capital are owned and managed privately. In capitalism the above phrase “what, how and for whom ” is lead by the private sector. That is the Govt. has no power to interfere at every stage of the following three questions.
1. What goods and what varieties should be produced, and in what quantities should they be produced.
2. How should they produce?
3. For whom are these goods and services produced or who will consume them?
India is a mixed economy, where consists the features of capitalism and socialism. As a mixed economy, India gives importance to the merits of capitalism.
The following merits of capitalism are very important to the development of a country.
1. Large scale production and newer and finer varieties of goods.
2. Increased productivity.
3. High standard of living
4. Automatic working – without no interference or direction from the top.
5. Maximum satisfaction to consumers.
6. Proper utilization of resources.
7. Protection of fundamental rights like right to property, transaction of property etc.
8. Reward according to the ability of entrepreneurs and workers.
9. Helps to change- flexibility to accept any favorable change in economy.
10. Encourage economic development.
To know deeply about the merits of capital of economy, we should know the characters of it. The following are the main nature of a capitalist economy.
1.The Right to Private Property
It means that the society provided the owner with the right to acquire, to keep, to use exclusively and to dispose valuable things at one likes. In this system one can purchase the asset as his private property. And he can keep it, use it exclusively and dispose it of as and when he likes. Subject to the general restriction and regulation imposed by the state, the owners of the property are free to utilize them in any way they deem fit. Here the private property is a legal right, this is protected by the law of land. The chief merits of private property are the pride and pleasure of ownership and consequently personal interest in the property, initiative to put it to the best use etc. It is correctly said “The magic of property turns even, sand into gold”.
2.The Right to Inheritance:
It means the transfer of property of person to his heirs after this person’s death. Each ext generation inherits the property from the out going generation, and the family continuous to be identified with that property. The right of inheritance is and essential condition for the existence of private property and accumulation of wealth by private individuals.
3.The Right of Free Enterprise:
In a capitalist economy, the Govt. allows freedom of action to all the economic units. A consumer is free to spend his income on whatever goods and services. He chooses to buy and consume. A producer may make his living when, where and in whatever he desires. He may use his energies alone or combine them with others in a partnership, a company or some other type of economic organization.
The capitalism enjoys a number of economic freedoms. Free choice of consumption determines the nature and volume of goods and services which should be produced. The economy produces goods and services to satisfy the wishes and preferences of the consumers. Thus freedom of choice of consumers and freedom of production are basic to capitalist economy.
Any individual is free to start any business he likes or exploit any new invention or process he can secure. Freedom of enterprises also implies that a person is free to invest his savings in what ever industry he choose or in what ever forms he wants to keep it.
4.Competition:
One of the main character of free enterprise is the existence of perfect competition. The competition means rivalry between the participants in the market. The greater the number of participants, ie., the buyers and sellers , the more intense will be the competition. Since free enterprise is allowed, competition is generally hard and intense. Here the competition exists among seller or producers of similar consumer goods to attract consumers, among buyers to obtain goods to satisfy their wants, among workers to get job, among employers to get investment funds, among savers to seek channel for investment of their savings, competition plays of vital role. Competition must be maintained if exploitation is to be avoided and prices to be maintained at cost levels. Competition is necessary to keep individual initiative which makes for maximum efficiency. The production and sales at a lowest cost should be done only through competition.
The competition serve as regulator and reducer of prices as an incentive to improved productive efficiency, as a guarantee that we shall get what we want and as a protector of freedom of production.
The competition compels every producer to be efficient and economic. Thus a constant and continuous effort made to maximize efficiency in production.
5.Profit Motive:
Free enterprise and competition are made possible by the existence of the profit motive. The entrepreneurs are free to change any price; they would normally be expected to fix such prices as would yield them maximum profits. But at the same time if in the production of some particular commodity the profit margin is large, new entrepreneurs will be encouraged to produce this commodity, ie., competition will increase. All the entrepreneurs get redy to assume risks because they are attempted by the lure of profits. The profit motive encourages productive activity, enterprises and risk taking. It determines the character of business and economic activity, for resources will continuously shift from less profitable uses.
6.Price Mechanism: In this system all the goods and services carry price tags with them. It consumers find that goods are priced too high, they may not purchase them, and if they find that the goods are priced low they may be tempted to purchase larger quantities. Similarly demand for those factor- Services will be less whose prices are less. In this way a whole system of prices prevails in which hundreds and thousands of goods and services are sold and purchased. Price mechanism refers to the process by which the price is determined through the interaction of the forces of demand and supply. In a capitalist economy, consumer is the king. He express his choice of goods through the price, he is willing to pay for goods.
7.The Role of Government: In this system, the Government can not intervene in the economic actions of the individuals; consumer, producers and investors are free to take their own decisions and act accordingly. The Government only ensures stability and sees to it that no outside force influences the economic organization. The Government will interfere only at the time of national emergencies like war or business depression.
From the above we can sum up the MERITS OF CAPITALIST ECONOMY as follows.
I. The system is characterized by flexibility and adaptability. The system has always adopted itself rapidly to the changed environment.
II. In this system the market mechanism works as a decentralizing force against the concentration of economic power. Economic power gets concentrated when individuals or groups of individuals acquire monopoly control over some lines of production. Market mechanism assumes that all those avenues of production that assure profits will attract new entrepreneur and thus prevent the concentration of economic power.
III. The countries that have been practicing this system have recorded stupendous increases in per capita income and standard of living. This I indicative of the growth potentials of the system.
IV. In capitalism, a variety of new consumer goods are developed and advanced to the stage of large-scale production.
V. Private enterprise has brought forth enterprising ability and energy. The lure of profit always creates and supports new entrepreneurial ability.
VI. Individual liberty, economic and otherwise enjoyed by the people in the capitalist economies is unparalleled in the world and is the secret of its success.
VII. The dynamic process at work within this system revolutionizes the economic structure from within, destroying the old one and creating a new one. This is what has been known as the process of creative destruction.
VIII. Full utilization of the productive services has been made in the capitalist economies due to technological progress.
To sum up, a capitalistic system with its emphasis on private enterprise encourages better utilization of available human and natural resources and there by leads to a faster rate of economic growth. Even it has some demerits; I will prefer capitalism as a means to development of modern economy, which already favors Liberalization, Privatization, and Globalization.
Sareesh
About Tisco:
Established in 1907, Tata Steel is the world's 6th largest steel company with an existing annual crude steel capacity of 30 million tonnes. Asia's first integrated steel plant and India's largest integrated private sector steel company is now the world's second most geographically diversified steel producer, with operations in 26 countries and commercial presence in over 50 countries.
The vision of TISCO is “We aspire to be the global steel industry benchmark for
Value Creation and Corporate Citizenship” and so the managing the employee needs to be dealt carefully.
Manager is a person getting things done through others. He is also responsible for designing organization’s structure. Every organization contains people, and it is management’s job to direct and coordinate these people. This is the leading function and one of the important factor of leading function is motivate his subordinates.
As a manager of well recognized company like TISCO, it is important to maintain graph of the business. To be a competitive in global market the higher production is one of the major part of the same. Which not only depend on the proper planning but also requires the well inputs from the employees mainly by low line workers.
Motivation in the workplace is essential for a good working environment. Different things motivate different people. Most people do work for money, many others work because they love their jobs. Others work because they want to help others or to feel accomplished in a certain field. There are lots of reasons why people are motivated to work.
The main reason for motivation regarding work is money. Money is also the reason why people are motivated to get degrees or higher training for their jobs. They want to better themselves in their workplace to make a higher salary. When people receive good pay for the work they do, they are more motivated to work harder and do better at their job, who under estimated the power of money is making mistake. Money can motivated almost any employee to work hard.
Another reason for motivation at work is recognition for their performance. With out proper recognition, employees will not be as motivated as they are when they are properly praised. Employees want raises, promotions and recognition among fellow employees. In fact after money, recognition is one of the main reason why people search for better job. The failure to discipline non-working employees can result in lack of motivation.
Another reason for motivation among workers is that, they want flexibility in their schedules. If their employer cannot offer this, then they will look ofr another job. They feel more motivated to do a better job when the employer can offer good communications. Workers want their supervisors to know that they have good ideas too and they don’t want to feel bad about expressing their ideas. They will take comfort in knowing that they have sympathetic supervisors and can go to them when they need to express problems or concerns in the work place.
To boost morale and motivation among employees, employer should know each employee’s needs. Some may feel that they want to be in control of their environment. They will not feel motivated if they constantly have a supervisor looking over their shoulders and critiquing their work. Workers will feel more motivated if they can start their work and know that their supervisors trust them and what they do each day. This helps them have the self-confidence at work.
According to Clarence Francis the former chairman of General Foods (USA) “you can buy a man’s time, you can buy a man’s physical presence at a given place. But you can’t buy his initiative, loyalty etc.”. But we’ll get his initiative, loyalty etc. only through motivate him.
There are various methods to motivate the employees. In the case of a well recognized company like Tata Iron and Steal Co.(TISCO) the lion share may be the blue collar workers. To motivate both the blue and white-collar workers, know them closely. Know their pulse. After that we can adopt the following methods to improve production.
Monetary benefits
1.Salaries or wages:
It is the most important motivational factor. Reasonable salaries must be paid and on time. While fixing salaries, it will be taken into consideration a number of factors such as cost of living, Company’s ability to pay, conditions prevailing in the market, Capability of employees etc.
2.Incentives:
It refers to incentives by way of medical allowances, leave travel allowance, house rent allowance, educational allowance, recreation allowance and so on. Bonus as a extra payment over and about salary given to employee as a incentive.
3.Special Individual incentives:
It will be provided to deserving employees for valuable suggestions and valuable target oriented performance or for special efforts as the part of the employee.
NON-MONETARY BENEFITS
Non-financial factors can also play an important role in the motivation of employees. We can apply that methods to motivate the employees to improve the production
1.Status or Job Title:
By providing a higher designation the employees can be motivated. For example: re-designate “production supervisor” with “ Production Officer” will increase the morale of the employee.. Employees prefer and proud for higher designation.
2.Appreciation and recognition:
Employees must be appreciated for their services. The praise would come not only from the immediate superior but also from higher authorities, especially in the case of special achievement.
3.Delegation of authority:
Delegation of authority motivates a subordinate to perform the tasks with dedication and commitment. When authority is delegated, the subordinate knows that his superior has placed faith and trust in him and as such he may devoted to his job.
4. Working Condition:
Better working conditions motivate the employees. It means air conditioned rooms proper sanitation good lighting and ventilation, proper office layout, compact and convenient machines and equipments; proper rest pauses etc. can motivate the employees.
5.Job security:
Guarantee of jobs security or lack of fear of dismissal etc. can also be a good way to motivate employees. Employees who are kept temporarily for a long time may be frustrated, and they may leave the organization.
6.Job enrichment
It involves providing more challenging tasks and responsibilities. An executive, who is involved in preparing and presenting reports of performance, may also be asked for frame plans. This would make the job of the employee more meaningful and satisfying.
7.Workers participation:
Inviting the employee to be a member of the quality circle or a committee or some other form of employee participation can also motivate the work-force.
8.Other factors:
There are several other factors of motivating employees. Those are
· Providing training to the employees
· Proper promotion and transfers
· Proper performance evaluation and feedback
· Proper job placement
· Flexible working hours
· Proper welfare activities.
TISCO is a well-reputed firm in India. TISCO has an inevitable role in the field of Iron and Steel industry. So I have to give a special care to implementing the motivational activities as above described. Workers should not be treated as merge wage slaves; they can be motivated and happy at work. When they are, the company can expect higher productivity, more innovation, higher quality and better worker relations. In short the TISCO will make more money. Production workers can be motivated and happy and that this makes a difference to the bottom line. The above points are to be considered while motivating the employees of TISCO, and through that I can improve the production within the prescribed time.
Sareesh
FINANCE MANAGEMENT-Being the finace manager of a company how will you make a financial forcasting?
Therefore, an FM Should take up his duties and responsibilities within the current and future needs of the organisation with respect to its Stability, Run, Prospects, Conversions, and future demands. Invariably, the conditionality referred above are goverened by the Policy of the Organisation.
Eg. A company has a policy not to run more than Three Products in the market at any given point of time (Eg.Godrej company and theirs Toilet Soaps). FM has to plan Inflow and Outflow within this principle. His timing of funds (IN / Out) should bear the above policy in mind.
Therefore his duties and responsibilities are regulated within the company's policy. Lest the policy of company will be going on in one direction and FM will be going in another direction. This will create a grate devoid between the policies and actions, giving rise to CONFLICT. Continuing conflict will damage the identity and growth of the organisation. If the organisation is damaged, FM's role will not be present.
Forecasting is the process of estimation in unknown situations. Prediction is a similar, but more general term, and usually refers to estimation of time series, cross-sectional or longitudinal data. In more recent years, Forecasting has evolved into the practice of Demand Planning in every day business forecasting for manufacturing companies. The discipline of demand planning, also sometimes referred to as supply chain forecasting, embraces both statistical forecasting and consensus process.
Forecasting is commonly used in discussion of time-series data.
Categories of forecasting methods
Time series methods
Time series methods use historical data as the basis for estimating future outcomes.
Moving average
Exponential smoothing
Extrapolation
Linear prediction
Trend estimation
Growth curve
Causal / econometric methods
Some forecasting methods use the assumption that it is possible to identify the underlying factors that might influence the variable that is being forecast. For example, sales of umbrellas might be associated with weather conditions. If the causes are understood, projections of the influencing variables can be made and used in the forecast.
Regression analysis using linear regression or non-linear regression
Autoregressive moving average (ARMA)
Autoregressive integrated moving average (ARIMA)
e.g. Box-Jenkins
Econometrics
Judgemental methods
Judgemental forecasting methods incorporate intuitive judgements, opinions and probability estimates.
Composite forecasts
Surveys
Delphi method
Scenario building
Technology forecasting
Forecast by analogy
Other methods
Simulation
Prediction market
Probabilistic forecasting and Ensemble forecasting
Sareesh
Imagine that you are the marketing manager of zideo international, agra, manufacturing leather goods, which are the steps you will take to promote sal
Today the marketing is not merely the selling or promoting the goods and services. It is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational goals. So I have to consider every aspect of the above factors in marketing the leather goods of Zideo International.
Of all the marketing activities, four activities are identified as basic, called 4 Ps. I.e.
1. Product
2. Price.
3. Promotion and
4. Place (or physical distribution)
Products mean goods or service offered by the organization. Price means the money value of a product; promotion is the activity of selling and advertising. Place means the place at which the product is to be sold to the customer. This is also known as the marketing mix.
By optimizing the marketing mix we can increase the sales or marketing of the product. Marketing mix decisions are made for influencing both trade channels and final channels. For this I have to prepare an offering mix and a promotion mix for the Zideo International. The offering mix comprises of product, services and price. The promotion mix comprises of sales promotion, advertising, sales force, public relations, Direct mail, tele marketing and Internet. To increase the sales, more importance is to be given to sales promotion.
Sales Promotion:
The Zideo international can improve the sales of leather goods by stimulating the consumers and dealers effectively. It may be done with a view to increase the product’s rate of use among existing customers and to attract new consumers of Zideo.
The product line and product mix of Zideo International is relates to leather goods. It consists of many purse, watchstrap, chapels, leather bags etc. It is not a Herculean task to improve the sales of ‘Zideo’ as it exports the above items. I can promote the sales by using the following promotional activities.
Consumer Promotion
In consumer promotions sales promotion directed at consumers with a view to increase the rate of use of products among existing consumers and attract new consumers to the product. For that the following techniques can be adopted.
1. Coupon:
A coupon is a certificate that entitles the consumer to specified saving on the purchase of leather goods. The Zideo International through the relations usually issue these coupons and reimburse the value of coupons after the scheme.
2. Sampling
It means free samples such as, money purse, pouch, wallets etc to be distributed to the ultimate consumers. This is suitable for increasing the sale of leather goods of daily use.
3. Premium or bonus after
Today this method is very popular among consumer goods. An offer of a certain amount of a product or a special pack there of is called premium or bonus offer.
4. Money Refund Order
If the product is not satisfied with the consumer with in a stated period, he can return the product to ‘Zideo’. This advertisement will increase the accountability and reliability of Zideo, not only among the scheme beneficiaries but also among general public.
5. Price off or temporary Reduction
This involves an offer to customers of certain amount of money off the regular price of the product. This step I will take to attract consumers of other leather goods.
6. Contests or Sweepstakes
At times contests are arranged with a view to attract new users to the company’s product. An opportunity under this devices\ is given to consumer to contest with a chance to win cash prizes, free air trips or goods. It is an indirect manner of introducing a new product or to improve the sales.
7. Bonus Stamps
Such bonus stamps are issue to the consumers by the manufacturer and retailer also in proportion to their purchases. The consumer goes on collecting stamps until he has sufficient quantity to obtain desired merchandise in exchange of the stamps.
B) Trade Promotions or Middlemen Promotions.
When product are sold through middlemen (wholesalers or retailers or both), the Zideo offers these middlemen certain promotion to induce them to keep larger stock of the manufacturer’s product. These include the following:
i) Buying Allowance Discount
The buying allowance or discount is offered to the dealers to induce him to buy our company’s product. Such discount may be either deducted on invoice price or on cash paid. Such allowance or discount may be given at a fixed percentage on each minimum quantity of product purchased during a stated period time. It increases the profit of the dealer and ultimate result is increase in the sales volume.
ii) Buy-back Allowance
This method of sales promotion is important because it prevent a post deal sales decline. Under this step our company will offer a certain amount of money for additional new purchase based on the quantity of purchases made on the first trade deal.
iii) Free leather goods
Distribution of free goods is an offer of a certain amount of product free of cost on purchases of a certain stated amount of the same or another product.
iv) Display and advertising Allowance
The allowance is offered to the dealer to display the Zideo’s product. The allowance is given on the basis of space provided to display the leather product in the shop.
v) Dealer listed promotion
Under this method dealer name and address is given on the advertisement and other publicity material as calendars, diaries etc. this type of promotion performs the twin functions of consumer educations and convincing of retailers in the need for cooperation in the promotion.
vi) Push Money or PM’s
This is an incentive payment in cash or in kind to the retailer or salesman to push the sale at a fixed rate for each article sold.
vii) Sales Contests
It is advice used to stimulate and motive distributors, dealers and their sales staff. They will be offered cash prizes for those who will win the sale contest, who will make the highest sales of the company’s product. In view of the winning chance, sellers participate in the contest.
C) Sales Force Promotions
Personal selling by far is the most important method of sales promotion. To make it highly effective, sales force promotion schemes are felt necessary. The tools for sales force promotion are:
i) Bonus to Sales Force
A quota of a sale is fixed for each salesman during a fixed stated period. Bonus is offered on sales in excess of the quota fixed. In order to get the higher premium the salesman will try to sell more quantities to goods.
ii) Sales Force Contest
Sales force contests are announced to stimulate company salesman to redouble their interest and effort over a stated period with prices to be the top performer.
iii) Sales Meetings, Salesmen’s Conventions and Conferences
The manufacturers to educating, inspiring and rewarding the salesmen conduct these. New products and new selling techniques are described and discussed in such meetings.
Thus all the steps of sales promotions can be classified into the above three categories which are greatly helpful to me to improve Zideo’s sale to the larger extent.
Thanks,
Sareesh
HUMAN RESOURCE MANAGEMENT-BEING A HUMAN RESOURCES MANAGER HOW WILL YOU FORMULATE AN EFFECTIVE HRP PROCESS?
In a nutshell:
Being an HR Manager one have to start by making a survey on what is really needed to enhance your company's operations efficiency, basically HR program is directed towards this goal., it may be through employees education, employees motivation to name a few. Once the surveys are in, you have to make an analytical report on what is required to address problem areas or areas that can be improved. The next step is to sell this solution to the line managers and of course the top managers. Having sold this to them, you now have the full backing of everyone concerned which mean funding is no longer an issue, the reason for this is that no matter how good your HRP without their cooperation it will not be effective. When creating the program, you have to require the inputs of the line managers or everyone whom you think matters in the organization. The actual formulation should be a team effort otherwise you will have problems in its implementation.
The most important and valuable asset of an organization is manpower or human resource. Development of human resource is needed by any organization if it wants to succeed in the fast growing and fast changing business environment. An organizations performs and resulting productively and directly proportional to the quality and quantity of the human resource.
The process of human resource planning is one of the most crucial, complex and containing managerial functions. Organizations can proper and progress only through the creative efforts and competencies of their human resources.
So I have to plan a multi step process including various issues, such as
A. Deciding objectives and goals.
B. Estimating future organizational structure and manpower requirements.
C. Auditing human resources.
D. Planning job requirements and job descriptions.
E. Developing a human resource plan.
Human resources are utilized the optimum possible extent in order to achieve individual and organizational goals. Human Resource Management is based on the personal administration, Employee welfare and Functional areas.
These main areas can be broadly classified into following categories.
A.Personal Administration.
a. Recruitment Selection
b. Induction
c. Compensation
d. Discipline
e. Transfer and promotion
f. Merit rating and evaluation of employees
g. Administration
h. Personnel Training and Development Training
i. Personnel records and statistics.
j. Retirement
k. Statutory compliance
B. Employee welfare
a. Conditions of work environment
b. Employee’s health service
C. Functional Areas of Human Resource Management.
a. Organizational Planning and Development
b. Staffing and employment
c. Trading and Development
d. Wage and Salary Administration
e. Motivation and incentives.
f. Employee Service and benefits
g. Employee records
h. Labor and industrial Relations.
i. Personnel Research and Personnel Audit.
To formulate the effective HR Planning, It is important to have mixture and perfective use of the human resource functions. Manpower planning involves identifying staffing needs, analyzing the available personnel and determining what additions and / or replacements are required to maintain a staff of the desired size and quality. It can be defined as “a strategy for the acquisition, utilization, improvement and preservation of an organization’s human resources”. HRP is a process of identifying human resource requirements in terms of quality and quantity.
Today the organizations are more dependent upon people. They are increasingly involved in more complex technologies and are functioning in more complex economic, social and political environments. As a result, the organizations face shortage of the right kind of human resources. HRP enables to get the right type of personnel in the organization.
Human resources are utilized to the optimum possible extent in order to achieve individual and organizational goals. The objective of human resource planning is to maintain and improve the organizations ability to achieve its goal by developing strategies that will result in optimum contribution of human resources.
One have to give importance to the following areas while preparing or formulating an effective HRP Process.
1. Personnel Requirements:
HRP involves forecasting of personnel requirements in organizations. After deciding the objectives and goals the management must estimate the structure of the organization at a given point in time. Several points are to be taken into mind that; while estimating it. The eventualities, and contingencies of general economic business cycles; expansion following enlargement and growth in business, changes in management philosophies and leadership styles, the use of new mechanical technology etc. are such areas. To carry on its work, each organization needs personnel with the necessary qualifications, skills, knowledge, work experience and aptitude for work. These are provided through effective manpower planning. HRP helps management to anticipate personnel shortages and surpluses and develop ways to avoid or correct problems before they become serious.
2. Recruitment and selection
A proper forecasting of personnel requirements enables the organization to determine proper sources of recruitment. The required personnel can be selected either from internal or external sources.
The organization can also adopt a proper selection procedure depending upon the needs of the jobs. Proper tests can be designed to select the right candidate for the right job.
3. Placement of Personnel:
HRP facilitates proper placement of the employees in the organization. Placement refers to fitting the right person at the right place of work. Proper placement brings job satisfaction to the employees and enhances employees’ efficiency. The selected personnel are placed at the right place of work. Persons are placed in those departments or in those areas where there is shortage of personnel. If there is a surplus, then that personnel can be shifted to some other areas or departments as the case may be.
4. Performance Appraisal:
HRP assists in performance appraisal of the employees in the organization. It refers to find out the quality of performance of different employees in relation to the requirements of each job. When related to the employees if there are weaknesses then additional training or some other measures can be undertaken.
5. Promotions:
HRP ensures right promotion of the employees in the organization. Promotion involves higher position, higher powers and higher pay. The organization would be in a position to promote the right person depending upon the performance appraisal reports.
6. Training:
It involves imparting knowledge and skills, developing attitudes, skills and social behavior of the employee.
HRP identifies the training needs of personnel Training & Development trainings includes the training for
1. Apprentices.
2. Workers
3. Foreman and Supervisors
4. Junior executives and
5. Management Staff.
7.Transfer:
HRP facilitates proper transfer of the employees in the organization. HRP has its own way to transfer i.e. side-ways movement of the employees in the organization. There may be a situation where there is surplus personnel in one department and shortage in another department. This situation can be corrected by effecting transfers at the right time.
8.Career Development:
Career development refers to developing careers of the employees in the organization. HRP is conducted taking into consideration the long range plans of the organization. The plans are made known to members of the organization. The employees can plan for their careers with in the organization once they come to know the qualification and qualities that would be required to implement the long range plans.
9. Organizational Development:
It takes place when there are better results in the form of higher productivity or efficiency. It also ensures the development of the organization. It avoids surplus or shortage of personnel in the organization. The organization with qualified and able personnel can easily solve the problems of low productivity absenteeism, inter departmental conflicts, resistance to change etc.
10. Motivation of Personnel:
HRP is concerned not only with the identification of the personnel in terms of quality and quantity but it is also concerned with the improvement and motivation of the human resources. The organization would make every possible effort to have dedicated and committed personnel at all levels in the organization.
PROCESS OF HRP
The process of HRP begins with a review of organizational strategies and objectives. Such review enables an organization to forecast personnel requirements and the internal supply of personnel. It can be formulate with the following steps.
Human resources planning process
Company objectives and strategic plans (Market, forecast, production objectives/process, capital/Fin plants)
Personnel requirements Make Personnel Supply
Forecast comparison Forecast
Estimating HR requirements Based on objectives and top Management Approval
Personnel Surplus Personnel shortage
Take action take action
a) Lay off a) Recruitment
b) Terminate b) Productivity
c) Voluntary Retirement etc c) Retraining
The long range could be 5 years, while 10 to 15 years span could be used for a perspective plan. Long-range plans must be made on the basis of various trends in the economy and in the labor market, and on long-term trends in the production. Long-range plans are general rather than specific, flexible rather than rigid.
Nevertheless, a plan can be extremely useful in identifying factors and trends that need to be reckoned with the early warning on possible problems. While formulating the HRP process its important to know the period for which the plan will apply, then the specific corporate objectives and strategies should be clear.
1. Review of Organizational Objectives:
The first step in HRP is to review the objectives of the organization. Proper review of the objectives will enable the organization to make a proper list of the various activities that would be required to achieve the objectives. To undertake the activities, the organization can be determining the required work force in terms of quality and quantity. A proper job analysis needed to be conducted at this stage.
2. Personnel requirements forecast:
Their needs to fine out the requirements of human resources undertake the various activities. The human requirements forecast must be both in terms of quality ands quantity.
3. Personnel supply forecast:
It is important to forecast availability of manpower. The required manpower may be available with in the company, or they may be required from the labor market.
4.Make comparison:
Its necessary to make a comparison between personnel requirement and personnel supply to find out whether the required personnel is available or not.
5. Personnel shortage/surplus
The comparison between personnel requirement and supply would indicate whether there are any differences. It human resource requirements are equal to human resource supply, then there are no differences and no action need to be taken.
If a shortage is there efforts are made to meet it either by new recruitment or promotion from within, or by developing the existing staff. If there is a surplus it is to be decided how it will be dealt with. Management can be ensuring control of labor costs by avoiding both shortage and surpluses of manpower through proper manpower planning.
The comparison may reveal differences between the human resource requirements and supply. The action will be taken as
1. If personnel Surplus:
1. Lay off
2. Voluntary requirements
3. Termination etc
2. If personnel shortage:
1. Hire
2. Promotion
3. Overtime
4. Training to improve quality
6. Motivating the man power:
Every organization should motivate their employees in such manner, which will be help in the increase in productivity and quality of the organization. An important aspect of human resource planning is to motivate the personnel by providing monetary and non-monetary incentives.
7Monitoring Personnel Requirements
The organization needs to monitor the requirements of personnel. This is because there is constant need for additional personnel, as some of the existing personnel do leave the organization due to registration, retirement and so on.
After the review of organizational strategies and objectives in the above manner based on the problems and need I'll easily formulate effective HRP process.
