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B.K MAJUMDHAR INSTITUTE OF

ADMINSTRATION
PRATICAL STUDIES

DRAFT-1

NAME: ANKIT.S.VASWANI

FY BBA -3

ROLL NO: 356

PROFESSOR IN CHARGE: KARISHMA DALAL

February 8, 2010
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Basic s of organisation:
Organisation basically means a group of people trying to accomplish a common
objective for the organisation.

To elaborate the definition further there are some views points that what thing s go in
an organisation.

1. Organisation is system of structures and functions

2. Organisation is structure in action over time.
3. It is a processing system
4. It is a structures of sub- groups that means departments
5. It is a cultural product.

The process of organisation may well be described as the managerial function of

organising. To organise is to harmonise, co-ordinate or arrange in a logical and orderly
manner. The managerial function of organising consists in making a rational division of
works into group of activities.

Its importance

1. It facilities administration
2. It makes growth and diversification possible.
3. It provides optimum use of technological improvements.
4. It simulates independent, creative thinking and incentive through well defined areas of
work.

Some of the types

The military

Functional organisation

Line and staff system

Authority and responsibility

It is also divided in three parts:-

1. Top level
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2. Middle level
3. Bottom level
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Organization design 

Organization: Organization refers to the structure of relationships among positions and  jobs
which is built up for the realization of the organization goals. This structure clarifies the
authority and responsibility vested in each position of the organization and makes the co-
ordination of all the activities undertaken for the accomplishment of the organizational goals
easy.  

An organizational structure should be designed to clarify who is to do what tasks and who is
responsible for what results, to remove obstacles to performance caused by confusion and
uncertainty of assignment, and to furnish decision making and communication networks
reflecting and supporting enterprise objectives. 

The common features of all organizational structures are:

1. Division of labor.
2. Co-ordination.
3. Accomplishment of the objectives.
4. Authority and responsibility structure.

The person having the highest authority to take decision in an organisation to implement
to decide to execute how any organisation will work depends upon the top level
management. They are the one who decides policy; they are person responsible for the
organisation. These include top board of directors and general managers. They have day
to day responsibilities of handling the employee sand everyone. Over the top management
there are few people only.

The top management need s to have to do more of mind work they don’t have technical
things to be done. They have to form the policy in such a fashion so that nothing is
illegal. If anything is illegal or not allowed by the government so these top authority s are
questionable. They are the person to set company s prospectus and to follow each and
every procedure that a company requires to start. From stake holders to investors
everyone is accountable by these people.

Hierarchy of management
Hierarchy basically means the management the group of arrangement of different products
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and items in which some item s or above, below or the middle of the content. There
classification s are made with regard to rank, importance, seniority, power status or authority.
A hierarchy of power is called a power structure. It means step by step process. Its authority
flow from upward to downward level. It is a pyramid sort of the structure.
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Organizations can be structured using a hierarchy. In an organizational hierarchy, there is a

single person or group with the most power and authority, and each subsequent level
represents a lesser authority. Most organizations are structured in this manner, including
governments, companies, militia and organized religions. The units or persons within an
organization are formed hierarchically in an organizational chart.

Organisational structure and chart.

An organizational chart of a company usually shows the managers and sub-workers who
make up an organization. It also shows the relationships between the organization's staff
members which can be seen easily in the chart.

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The structure of an organisation which defines it s working according to different types of

structure in an organisation. The types are as follows:-

Functional

Divisional

Matrix

Functional

Employees within the functional divisions of an organization tend to perform a specialized

set of tasks, for instance the engineering department would be staffed only with engineers.
This leads to higher efficiencies within that group. However it could also lead to a lack of
communication between the functional groups within an organization, making the
organization slow and inflexible.
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Divisional
Also called a "product structure", the divisional structure groups each organizational function
into divisions. Each division within a divisional structure contains all the necessary resources
and functions within it. Divisions can be categorized from different points of view.
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Matrix
The matrix structure groups employees by both function and product. This structure can
combine the best of both separate structures. A matrix organization frequently uses teams of
employees to accomplish work, in order to take advantage of the strengths, as well as make
up for the weaknesses, of functional and decentralized forms. An example would be a
company that produces two products, product a and product b. Using the matrix structure,
this company would organize functions within the company as follows: product a sales
department, product a customer service department, product a accounting, product b sales
department, product b customer service department, product b accounting department. Matrix
structure is amongst the purest of organizational structures, a simple and very lucid in nature
and easy for understanding.

Departmentalisation and its basis

Departmentalization refers to the process of grouping activities into departments. The

authority and responsibility of an organisation is been divided in various department. And all
the persons of department s have a department head eg accounting department, sales
department, production etc.

Departmentalization of a personal administration:

 Functional departmentalization - Grouping activities by functions performed.

Activities can be grouped according to function how and skill of employee and can
be worked according to the function and work specialization can be noted further for
Functional departmentalization can be used in all types of organizations.
 Product departmentalization - Grouping activities by product line. Tasks can also be
grouped according to a specific product or service, thus placing all activities related to
the product or the service under one manages. LA Gear is an example of company
that uses product departmentalization. Its structure is based on its varied product lines
which include women’s footwear, children’s footwear and men’s’ footwear.
 Customer departmentalization - Grouping activities on the basis of common
customers or types of customers. Jobs may be grouped according to the type of
customer served by the organization. The assumption is that customers in each
department have a common set of problems and needs that can best be met by
specialists. The sales activities in an office supply firm can be broken down into three
departments that serve retail, wholesale and government accounts.
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 Geographic departmentalization - Grouping activities on the basis of territory. If an

organization's customers are geographically dispersed, it can group jobs based on
geography. For example, the organization structure of Coca-Cola has reflected the
company’s operation in two broad geographic areas – the North American sector and
the international sector.
 Process departmentalization - Grouping activities on the basis of product or service or
customer flow. Because each process requires different skills, process
departmentalization allows homogenous activities to be categorized. For example, the
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applicants might need to go through several departments namely validation, licensing

and treasury, before receiving the driver’s license.

Production
Plant location
Plant location refers to the choice of region and the selection of a particular site
for setting up a business or factory. But the choice is made only after considering cost and
benefits of different alternative sites. It is a strategic decision that cannot be changed once
taken. If at all changed only at considerable loss, the location should be selected as per its
own requirements and circumstances. Each individual plant is a case in itself. Businessman
should try to make an attempt for optimum or ideal location.
An ideal location is one where the cost of the product is kept to minimum, with a
Large market share, the least risk and the maximum social gain. It is the place of
Maximum net advantage or which gives lowest unit cost of production and
Distribution. For achieving this objective, small-scale entrepreneur can make use
of location analysis for this purpose.

Product portfolio

The business portfolio is the collection of businesses and products that make up the company.
The best business portfolio is one that fits the company's strengths and helps exploit the most
attractive opportunities.

The company must:

(1) Analyse its current business portfolio and decide which businesses should receive more or
less investment, and

(2) Develop growth strategies for adding new products and businesses to the portfolio, whilst
at the same time deciding when products and businesses should no longer be retained.

Eg: career portfolio, patent and product as well

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Plant operation

Manufacturing Physical plant or mechanical plant refers to the necessary infrastructure used
in support and maintenance of a given facility. The operation of these facilities, or the
department of an organization which does so, is called "plant operations" or facility
management. It should not be confused with plant.
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Quality control

Quality Control is the most important inspection control of all in cases where, despite
statistical quality control techniques or quality improvements implemented, sales decrease.

If the original specification does not reflect the correct quality requirements, quality cannot
be inspected or manufactured into the product.

A quality control is very important for any firm. It wills not insured that the good s will be
produced with right time but the right quality is also very important. This is done with the
help of inspection. It is compared with the quality which is been set for the company. To
minimise the reduction the quality may be checked at every stage of the production.

The basic requirements that are requiring for the quality control are as follows:-

1. Complete info. About the product which was made previously.

2. Up to date info about the raw materials that are to be used.
3. Knowledge of work is taking place.
4. Data about the power the working of speed, and feeds of the entire various machine.
5. The best combination that has to be used while working.
6. Careful instructions to everyone have to be given how the work has to be done in a
firm.

The two major techniques are

1. Control chart
2. Accepting sampling

Control chart

It depicts the actual measurements of all or some of the parts that are to be
manufactured, and it s most important means is of quality control. Each charts show
two line which have there tolerance limits.

Acceptance of samples

It is a post-mortem that the quality of the product that has been produced. It is based
on principle of selecting any random alternative which has to work. Generally a
certain amount of percent of that product is been checked
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Marketing

4 P’s
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Marketing decisions generally fall into the following four controllable categories:

 Product
 Price
 Place (distribution)
 Promotion

The Marketing Mix

Product Decisions

The term "product" refers to tangible, physical products as well as services. Here are some
examples of the product decisions to be made:

 Brand name
 Functionality
 Styling
 Quality
 Safety
 Packaging
 Repairs and Support
 Warranty
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 Accessories and services

Price Decisions

Some examples of pricing decisions to be made include:

 Pricing strategy
 Suggested retail price
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 Volume discounts and wholesale pricing

 Cash and early payment discounts
 Seasonal pricing
 Bundling
 Price flexibility
 Price discrimination

Distribution (Place) Decisions

Distribution is about getting the products to the customer. Some examples of distribution
decisions include:

 Distribution channels
 Market coverage (inclusive, selective, or exclusive distribution)
 Specific channel members
 Inventory management
 Warehousing
 Distribution centres
 Order processing
 Transportation
 Reverse logistics

Promotion Decisions

In the context of the marketing mix, promotion represents the various aspects of marketing
communication, that is, the communication of information about the product with the goal of
generating a positive customer response. Marketing communication decisions include:

 Promotional strategy
 Advertising
 Personal selling & sales force
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 Sales promotions
 Public relations & publicity
 Marketing communications budget
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7 ‘p s of marketing
1. Product
2. Place
3. Packaging
4. Price
5. Promotion
6. Positioning
7. People

Product: the most important thing for any of the factory or firm to develop upon. It is a key
feature that has to be developed. A right quality product which has to be developed for any of
the firm.

Place: the place is an essential key thing. We have to see that all factors of the production are
kindly available. At the cheap cost. And an easy transportation as well.

Packaging: a proper packing is required. Some national company s have to send there product
in various states. So the packing becomes an important concern for the management which
has to be taken in consideration.

Price: the key factor at which the consumer looks first to see this thing. It has to be so
efficiently decided so that we can be better good and best than our competitors.

Promotion: the advertisement of the product. To make aware about the product to the public
that how good the product is how good its quality is???Various other value additions that are
provided in the product have to be seen.

People: the most important factor the consumer who is going to consume all the products is
the key thing in an any firm. There should be right place to attract the consumer.
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Target customers

All of an organization’s revenues and profits result from one thing – customers who are
willing to pay money for products and services that meet their needs.  Any brand
management initiative, any marketing initiative, and indeed any business or organizational
initiative must start with a solid understanding of the customer. The customer s is the most
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important thing in the market. So each and every company should target their customer in a
way. If the quality of the product is for the middle class people, so add should be done in the
same particular fashion. Eg the car which is very luxury so its add should be done for the
higher class of people to attract the customer. Because that add is useless to show to a poor.

Look for customers that meet the following criteria:

•  They have an important need and your brand meets that need. 
•  Your brand has the potential to be preferred by them.
•    There is something about your brand that they admire.
•    They have the potential to provide your organization with the ample revenues and profits
over the long run.
•    Your organization can grow by building a long-term relationship with and increasingly
fulfilling the evolving needs of these customers.

Place: distribution network

Place, more commonly called distribution , includes the organizations (a company and its
partners), locations (quantity and type), and processes (physical, digital, intellectual) that
support the creation and fulfilment of customer demand, and provide any required post-
purchase service.
 
Effective distribution provides customers with convenience in the form of availability (what,
where, when - the right product, at the right place, at the right time), access (customers'
awareness of the availability and authorization to purchase), and support (e.g. pre-sales
advice, sales promotion and merchandising, post-service repairs).
 
Distribution decisions have both strategic and logistical dimensions:
 
Strategic distribution is a competitive advantage that accrues generally from the configuration
of a distribution network (who, what, where, when) and, more specifically, from the selection
of partners (i.e. middlemen) who intermediate between the company and the customer by
performing necessary fulfilment and service activities. To target the customer very effectively
with good amount of advertisement s.
 Logistical distribution (also know as. supply chain management), which is geared to
efficiently supporting the strategic objectives, refers to the storage and movement of goods,
information, and money between the manufacturer and the final customer.   Logistics is
sometimes inappropriately viewed as an exclusive operations function.  In reality, marketing
often has a major role in the day-to-day logistics process with responsibilities ranging from
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sales forecasting and demand management to inventory planning and the allocation of short
supplies.

Price
The topic price it s and wide concept to talk about in management. The concept is basically
related to macro economies. And the factor price is included in management. It is also an
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factor in the management as price place an important factor. Price works in day to day basis it
does fluctuate also. So to keep the price this is best for the customer also and for them as
well. Being the producer s also the price should be such that which is beneficial to both the
parties.

The concept of price is central to microeconomics where it is one of the most important
variables in resource allocation theory (also called price theory). Price is also central to
marketing where it is one of the four variables in the marketing mix that business people use
to develop a marketing plan.

In general terms a price is the result of an exchange or transaction that takes place between
two parties and refers to what must be given up by one party (i.e., buyer) in order to obtain
something offered by another party.

Promotion and advertisement campaign

Advertising media

There is a huge variety of media available through which a business can conduct an
advertising campaign. What are the main types of media and what considerations should a
business make in choosing between them?

The starting point in the selection of appropriate advertising media is a “media analysis”.
This can be defined as:

"An investigation into the relative effectiveness and the relative costs of using the various
advertising media in an advertising campaign"

Before committing an advertising budget it is necessary to carry out marketing research on:

- Potential customers

- Their reading habits, television-watching habits

- How many times the advertisers wish the potential customers to see an advertisement

- How great a percentage of the market they wish to reach, etc.

These elements all need to be considered and balanced to plan a campaign that will
effectively reach its target audience at a reasonable cost.
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A useful distinction can be made between “published media” and “visual/ural media”.

Published media include:

• National daily newspapers

• Sunday newspapers
• Local and regional newspapers
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• Consumer magazines
• Specialist magazines
• Trade and professional press
• Internet

Visual and aural media include:

• Television
• Radio
• Cinema
• Billboards
• Transport
• Direct mailing

Advertising and promotions is bringing a service to the attention of potential and current
customers. Advertising and promotions are best carried out by implementing an advertising
and promotions plan. The goals of the plan should depend very much on the overall goals and
strategies of the organization, and the results of the marketing analysis, including the
positioning statement.

The plan usually includes what target markets you want to reach, what features and benefits
you want to convey to them, how you will convey it to them (this is often called your
advertising campaign), who is responsible to carry the various activities in the plan and how
much money is budgeted for this effort. Successful advertising depends very much on
knowing the preferred methods and styles of communications of the target markets that you
want to reach with your ads. A media plan and calendar can be very useful, which specifies
what advertising methods are used and when.

Competitions
Advertising and promotions is bringing a service to the attention of potential and current
customers. Advertising and promotions are best carried out by implementing an advertising
and promotions plan. The goals of the plan should depend very much on the overall goals and
strategies of the organization, and the results of the marketing analysis, including the
positioning statement.

The plan usually includes what target markets you want to reach, what features and benefits
you want to convey to them, how you will convey it to them (this is often called your
advertising campaign), who is responsible to carry the various activities in the plan and how
much money is budgeted for this effort. Successful advertising depends very much on
knowing the preferred methods and styles of communications of the target markets that you
want to reach with your ads. A media plan and calendar can be very useful, which specifies
February 8, 2010

what advertising methods are used and when.

Export
Export strategy is to ship commodities to other places or countries for sale or exchange. In
economics, an export is any good or commodity, transported from one country to another
country in a legitimate fashion, typically for use in trade.
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The term "export" is derived from the conceptual meaning as to ship the goods and services
out of the port of a country. The seller of such goods and services is refered to an "exporter"
who is based in the country of export whereas the overseas based buyer is referred to as an
"importer". In International Trade, "exports" refers to selling goods and services produced in
home country to other markets.[1]

In economics, an export is any good or commodity, transported from one country to another
country in a legitimate fashion, typically for use in trade. Export goods or services are
provided to foreign consumers by domestic producers.[2]

Export of commercial quantities of goods normally requires involvement of the customs

authorities in both the country of export and the country of import. The advent of small trades
over the internet such as through Amazon and e-Bay have largely bypassed the involvement
of Customs in many countries because of the low individual values of these trades.
Nonetheless, these small exports are still subject to legal restrictions applied by the country of
export. An export's counterpart is an import.

The term "export" is derived from the conceptual meaning as to ship the goods and services
out of the port of a country. The seller of such goods and services is refered to an "exporter"
who is based in the country of export whereas the overseas based buyeris refered to as an
"importer". In International Trade, "exports" refers to selling goods and services produced in
home country to other markets.[1]

In economics, an export is any good or commodity, transported from one country to another
country in a legitimate fashion, typically for use in trade. Export goods or services are
provided to foreign consumers by domestic producers.[2]

Export of commercial quantities of goods normally requires involvement of the customs

authorities in both the country of export and the country of import. The advent of small trades
over the internet such as through Amazon and e-Bay have largely bypassed the involvement
of Customs in many countries because of the low individual values of these trades.
Nonetheless, these small exports are still subject to legal restrictions applied by the country of
export. An export's counterpart is an import.

For Small-and-Medium Enterprises (SME) with less than 250 employees, selling goods and
services to foreign markets seems to be more difficult than serving the domestic market. The
lack of knowledge for trade regulations, cultural differences, different languages and foreign-
exchange situations as well as the strain of resources and staff interact like a block for
exporting. Indeed there are some SME's which are exporting, but nearly two-third of them
sell in only to one foreign market.
February 8, 2010

Finance
Finance to run any business or the firm the most important thing is money. It is life line of
any firm. It has to be there for the existence of the firm. Finance is the science of funds
management. The general areas of finance are business finance, personal finance, and public
finance. Finance includes saving money and often includes lending money. The field of
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finance deals with the concepts of time, money and risk and how they are interrelated. It also
deals with how money is spent and budgeted.

Finance works most basically through individuals and business organizations depositing
money in a bank. The bank then lends the money out to other individuals or corporations for
consumption or investment, and charges interest on the loans.

Loans have become increasingly packaged for resale, meaning that an investor buys the loan
(debt) from a bank or directly from a corporation. Bonds are debt sold directly to investors
from corporations, while that investor can then hold the debt and collect the interest or sell
the debt on a secondary market. Banks are the main facilitators of funding through the
provision of credit, although private equity, mutual funds, hedge funds, and other
organizations have become important as they invest in various forms of debt. Financial
assets, known as investments, are financially managed with careful attention to financial risk
management to control financial risk. Financial instruments allow many forms of securitized
assets to be traded on securities exchanges such as stock exchanges, including debt such as
bonds as well as equity in corporations. Finance is also said to blood of the business. Without
it is not possible to run any business.

Sources of finance

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Internal sources of finance

• ‘Organic growth’ – growth generated through the development and expansion of the
business itself. Can be achieved through:
• Generating increasing sales – increasing revenue to impact on overall profit levels
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• Use of retained profit – used to reinvest in the business

• Sale of assets – can be a double edged sword – reduces capacity?

External sources of finance

Long Term – may be paid back after many years or not at all!

• Short Term – used to cover fluctuations in cash flow

• ‘Inorganic Growth’ – growth generated by acquisition

Long term

• Shares (Shareholders are part owners of a company)

Ordinary Shares (Equities):

Ordinary shareholders have voting rights

Dividend can vary

Last to be paid back in event of collapse

Share price varies with trade on stock exchange

– Preference Shares:

Paid before ordinary shareholders

Fixed rate of return

Cumulative preference shareholders – have right to dividend carried over to next year
in event of non-payment

– New Share Issues – arranged by merchant or investment banks

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– Rights Issue – existing shareholders given right to buy new shares at

discounted rate

– Bonus or Scrip Issue – change to the share structure – increases number of

shares and reduces value but market capitalisation stays the same
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Short term

• Bank loans – necessity of paying interest on the payment, repayment periods from 1
year upwards but generally no longer than 5 or 10 years at most

• Overdraft facilities – the right to be able to withdraw funds you do not currently have

– Provides flexibility for a firm

– Interest only paid on the amount overdrawn

– Overdraft limit – the maximum amount allowed to be drawn - the firm does
not have to use all of this limit

• Trade credit – Careful management of trade credit can help ease cash flow – usually
between 28 and 90 days to pay

• Factoring – the sale of debt to a specialist firm who secures payment and charges a
commission for the service.

• Leasing – provides the opportunity to secure the use of capital without ownership –
effectively a hire agreement

Inorganic growth
• Acquisitions

• The necessity of financing external inorganic growth

Merger: firms agree to join together – both may retain some form of identity

Takeover: One firm secures control of the other, the firm taken over may lose its identity

Capital structure

In finance, capital structure refers to the way a corporation finances its assets through some
combination of equity, debt, or hybrid securities. A firm's capital structure is then the
composition or 'structure' of its liabilities.
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The capital structure of a company essentially describes the financing of a company.  This
can be viewed through the right side of the balance sheet which displays liabilities and
shareholders equity.  Many different forms of analysis, through many different financial
ratios, can be performed to gauge near term and long term financial health of the company. 

A mix of a company's long-term debt, specific short-term debt, common equity and preferred
equity. The capital structure is how a firm finances its overall operations and growth by using
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different sources of funds.

Debt comes in the form of bond issues or long-term notes payable, while equity is classified
as common stock, preferred stock or retained earnings. Short-term debt such as working
capital requirements is also considered to be part of the capital structure.

Basics ratios

Financial ratios are useful indicators of a firm's performance and financial situation. Most
ratios can be calculated from information provided by the financial statements. Financial
ratios can be used to analyze trends and to compare the firm's financials to those of other
firms. In some cases, ratio analysis can predict future bankruptcy.

Financial ratios can be classified according to the information they provide. The following
types of ratios frequently are used:

 Liquidity ratios
 Asset turnover ratios
 Financial leverage ratios
 Profitability ratios
 Dividend policy ratios

Use and Limitations of Financial Ratios

Attention should be given to the following issues when using financial ratios:

 A reference point is needed. To to be meaningful, most ratios must be compared to

historical values of the same firm, the firm's forecasts, or ratios of similar firms.
 Most ratios by themselves are not highly meaningful. They should be viewed as
indicators, with several of them combined to paint a picture of the firm's situation.

 Year-end values may not be representative. Certain account balances that are used to
calculate ratios may increase or decrease at the end of the accounting period because
of seasonal factors. Such changes may distort the value of the ratio. Average values
should be used when they are available.
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 Ratios are subject to the limitations of accounting methods. Different accounting

choices may result in significantly different ratio values.

DEBT RATIO= TOTALDEBT/ TOTAL ASSETS

CURRENT RATIO=CURRENT ASSETS/CURRENT LIABILTY

AVERAGE RATIO= AVERAGE COLLECTION/ANNUAL CREDIT SALES

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INVENTORY PERIOD= AVERAGE INVENTORY / TIME PERIOD

RETURN ON ASSETS=NET INCOME/TOTAL ASSETS

DIVIDENED YIELD=DIVIDEND PER SHARE/SHARE PRICE

PERSONNEL
The success of an organization depends on the capacities and capabilities of its personnel.
Unless an organization devotes enough resources on the development of its human
resource, it would not get the required output from its personnel. An organization’s
commitment to the development of human resource has to be reflected in its policies,
procedures, practices, customs and ideals.

The function of a personnel manager usually begins with the staffing process. The manager
may be focused on screening and interviewing applicants, with an eye to placing individuals
with the right skill sets in the right position within the company. Along with placement, the
HR manager may also oversee, or at least be involved in, the creation of entry level training
programs, as well as continuing education opportunities for existing employees.

Determining company policies and procedures as they relate to personnel is another

important aspect of the personnel management process. HR functions often include drafting
vacation, sick leave, and bereavement policies that apply to all employees. The personnel
management team is also often responsible for managing any healthcare program provided to
the employees as well.

One aspect of company organization that needs the input of effective personnel management
is the drafting of a company handbook. Establishing operation policies and procedures,
requirements for employment, commendation and disciplinary procedures, and even
something as simple as a dress code has to be compared with state and federal guidelines
before the handbook is ready for release to the company at large. Personnel managers and the
HR staff are ideal for drafting and reviewing the company handbook.

Sometimes overlooked in the course of personnel management is the emotional welfare of the
employees. Increasingly, more personnel managers understand that a well-adjusted employee
is an asset to the company. To this end, many people in charge of personnel management try
February 8, 2010

to provide opportunities for employees who are in need of counseling to receive support from
the company.

This support often involves scheduling time during working hours for the counseling
sessions, and perhaps picking up the cost if insurance does not cover counseling. As with
continuing educational programs, counseling is seen as another way that the company invests
in the future relationship between the employee and the employer. A good HR manager
understands this and will strive to make sure this sort of support is available.
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Strength of personnel departments

It depends upon by passing certain tests or levels that need to surpass various test s associated
with the firms.

Some of key things are as follows

 Excellent performance is based on strengths

 Step 1: Identifying talents
 Step 2: Applying and using Strengths
 Step 3: Managing Weaknesses
 Management and self management
 Literature

Excellent performance is based on strengths

Strengths are talents + skills + knowledge

The authors define strengths as a talents completed with skills and knowledge. Skills and
knowledge can be developed very well providing talent is there but talent itself can not, or
hardly, be developed. Strengths can thus be developed by identifying talents and completing
them with skills and knowledge. Of course, weaknesses and limitations don’t have to be
denied or ignored. After all, eliminating impeding limitations can be a necessary requirement
of good performance too.

Applying and using Strengths

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Help employees to use their strengths. This may seem like forcing an open door but many
people often leave their strengths unused. Help the employee to see that it is wise to use
strengths consciously. Applying strengths when they are unasked for is a waste of your
talents and can be annoying to others. What is often seen as a weakness is actually a strength
in a situation or at a time that does not ask for it. The question thus is: when is the time right
to use your strengths?
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Identifying talents
When does the employee perform exceptionally well? An indication of a talent is often
consistent good performance. One thing is important to point out: even if the employee does
not perform to well on the whole you can focus on strengths by identifying those situations in
which the performance did exceed expectations.

Managing Weaknesses

Not only would that be asking too much of people, it can also be just plainly useful to
acknowledge problems and to take away hindering factors like weaknesses and limitations.
But the way you do that is important. Don’t try to turn real weaknesses into real strengths.
This will most likely be a complete waste of time and lead to frustration both with you and
the employee. How to do it more effectively? Here are some suggestions.

Management and self management

Hopefully you like these tips and see their use in you job as a (HR) manager. The suggestions
are intended principally to be of use for you in your management responsibility. But they may
also be useful for the way you manage yourself. After all, you own performance is also
served best with a strengths-based approach.

Recruitment policy
In today’s rapidly changing business environment, a
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well defined recruitment policy is necessary for

organizations to respond to its human resource
requirements in time. Therefore, it is important to have
a clear and concise recruitment policy in place, which
can be executed effectively to recruit the best talent
pool for the selection of the right candidate at the right
place quickly. Creating a suitable recruitment policy is
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the first step in the efficient hiring process. A clear and

concise recruitment policy helps ensure a sound
recruitment process.

It specifies the objectives of recruitment and provides a

framework for implementation of recruitment
programme. It may involve organizational system to be
developed for implementing recruitment programmes
and procedures by filling up vacancies.
COMPONENTS OF THE RECRUITMENT POLICY

 The general recruitment policies and terms of

the organisation

 Recruitment services of consultants

 Recruitment of temporary employees

 Unique recruitment situations

 The selection process

 The job descriptions

 The terms and conditions of the employment

A recruitment policy of an organisation should be

such that:
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 It should focus on recruiting the best potential

people.

 To ensure that every applicant and employee is

treated equally with dignity and respect.
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 Unbiased policy.

 To aid and encourage employees in realizing

their full potential.

 Transparent, task oriented and merit based

selection.

 Weightage during selection given to factors

that suit organization needs.

 Optimization of manpower at the time of

selection process.

 Defining the competent authority to approve

each selection.

 Abides by relevant public policy and

legislation on hiring and employment
relationship.

 Integrates employee needs with the

organisational needs.

FACTORS AFFECTING RECRUITMENT POLICY

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 Organizational objectives

 Personnel policies of the organization and its

competitors.
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 Government policies on reservations.

 Preferred sources of recruitment.

 Need of the organization.

 Recruitment costs and financial implications.

Training and development

It is a subsystem of an organization. It ensures that randomness is reduced and learning or
behavioural change takes place in structured format.

TRADITIONAL AND MODERN APPROACH OF TRAINING AND DEVLOPMENT

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Traditional Approach – Most of the organizations before never used to believe in training.
They were holding the traditional view that managers are born and not made. There were also
some views that training is a very costly affair and not worth. Organizations used to believe
more in executive pinching. But now the scenario seems to be changing.

The modern approach of training and development is that Indian Organizations have realized
the importance of corporate training. Training is now considered as more of retention tool
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than a cost. The training system in Indian Industry has been changed to create a smarter
workforce and yield the best results

TRAINING AND DEVELOPMENT OBJECTIVES

The principal objective of training and development division is to make sure the availability
of a skilled and willing workforce to an organization. In addition to that, there are four other
objectives: Individual, Organizational, Functional, and Societal.

Individual Objectives – help employees in achieving their personal goals, which in turn,
enhances the individual contribution to an organization.

Organizational Objectives – assist the organization with its primary objective by bringing
individual effectiveness.

Functional Objectives – maintain the department’s contribution at a level suitable to the

organization’s needs.

Societal Objectives – ensure that an organization is ethically and socially responsible to the
needs and challenges of the society.

Reward system

Abraham Maslow developed a theory as to how to reward or motivate different people

Physiological Needs

They consist of needs for oxygen, food, water, and a relatively constant body
temperature. They are the strongest needs because if a person were deprived of all needs,
the physiological ones would come first in the person's search for satisfaction.

Safety Needs

When all physiological needs are satisfied and are no longer controlling thoughts
and behaviours, the needs for security can become active. Adults have little
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awareness of their security needs except in times of emergency or periods of

disorganization in the social structure (such as widespread rioting). Children often
display the signs of insecurity and the need to be safe.

Needs of Love, Affection and Belongingness

When the needs for safety and for physiological well-being are satisfied, the next
class of needs for love, affection and belongingness can emerge. Maslow states
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that people seek to overcome feelings of loneliness and alienation. This involves
both giving and receiving love, affection and the sense of belonging.

Needs for Esteem

When the first three classes of needs are satisfied, the needs for esteem can
become dominant. These involve needs for both self-esteem and for the esteem a
person gets from others. Humans have a need for a stable, firmly based, high level
of self-respect, and respect from others. When these needs are satisfied, the person
feels self-confident and valuable as a person in the world. When these needs are
frustrated, the person feels inferior, weak, helpless and worthless.

Needs for Self-Actualization

When all of the foregoing needs are satisfied, then and only then are the needs for
self-actualization activated. Maslow describes self-actualization as a person's need
to be and do that which the person was "born to do." "A musician must make
music, an artist must paint, and a poet must write." These needs make themselves
felt in signs of restlessness. The person feels on edge, tense, lacking something, in
short, restless. If a person is hungry, unsafe, not loved or accepted, or lacking self-
esteem, it is very easy to know what the person is restless about.

 Social responsibility

Corporate social responsibility (CSR), also known as corporate responsibility, corporate

citizenship, responsible business, sustainable responsible (SRB), or corporate social
performance, is a form of corporate self-regulation integrated into a business model. Ideally,
CSR policy would function as a built-in, self-regulating mechanism whereby business would
monitor and ensure their adherence to law, ethical standards, and international norms.
Business would embrace responsibility for the impact of their activities on the environment,
consumers, employees, communities, stockholders and all other members of the public
sphere.

Awards and achievements

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This provides a motivation and boost to each and every employee for giving their best and
performing their best and working best for this awards. So this thing help in attending the
objectives and the goals of the business. To sustain and to achieve higher development in
future.
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Reference

Google

Net.mba.in

Management site.in

Y.K. bhushan

Management by robbins

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