COMMERCE PAPER -3-TYBCOM
MARKETING AND HUMAN RESOURCE MANAGEMENT
1) Marketing- According to American Marketing Association "Marketing 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 organisational objectives."
2) The Exchange Concept- According to this concept, exchange of a product between the seller and the buyer is the central idea of marketing.
3) The Production Concept- According to this concept, consumers will prefer products that are inexpensive and widely available.
4) The Product Concept- This concept states that the consumers will prefer products that offer the best quality, performance or innovative features.
5) The Selling Concept- According to this concept, a company cannot expect its products to be picked up automatically by the customers. It has to push its products in market by undertaking selling efforts such as advertising, publicity, salesmanship, sales promotion etc.
6) The Marketing Concept- Marketing starts with determining consumer wants and ends with the satisfaction of those wants. It sees all marketing activities from the point of view of the consumer
7) The Societal Concept-Organisations who support this concept, work at a balance between the three objectives of company profits, consumer satisfaction and public interest. They are expected to produce goods that not only satisfy the consumers but are also environmental friendly products
8) Test Marketing- Test marketing means introducing a product in a small segment of the market. The purpose is to find out whether or not the consumers would accept such a product.
9) Packaging- Packaging is the process of devising packages. The basic function of packages is to protect the quality of the product. Now a days packaging has additional promotional function.
10) Logistics - It relates to physical distribution of goods. Goods have to be transported to the place of sale from the place of production.
11) Market Opportunity Analysis-It is a prime tool to determine attractiveness and probability of success in
the growing market.
12) Marketing Information System-"Marketing Information System (MIS) consists of people, equipments
and procedures to gather, sort, analyse, evaluate and distribute needed, timely and accurate information to marketing decision makers."
13) Internal company records-It consists of the data, which is available within the company.
14) Market Information System-Philip Kotler defines a marketing intelligence system as "A set of procedures and sources used by managers to obtain their everyday information about pertinent developments in the marketing environment".
15) Marketing research-Philip Kotler defines Marketing research as "A systematic design, collection, analysis and reporting of data and findings relevant to a specific marketing situation facing the company.”
16) Marketing Decision Support System- A marketing decision support system is "A co-ordinated collection of data, systems, tools and techniques with supporting software and hardware by which an organization gathers and interprets relevant information from the business and environment and turns it into a basis for marketing action.”
17) Primary Data-Primary data is the original data i.e. it is the first hand information collected by the researcher. It is collected from primary sources like salesmen, consumers, middlemen etc.
18) Secondary data-Secondary data refers to the data which is readily available. It is already in a published form. It is the data already collected by others.
19) Internal sources : Data available from sources within the organization are called internal sources.
20) External Sources-External sources are sources outside the organisation. Data can be collected from external sources like books, journals, Internet etc.
21) Consumer behaviour is defined as "The study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society."
22) Market Segmentation-William Stanton defines it as "the process of dividing the total heterogeneous market for a product into several sub markets or segments, each of which tends to be homogeneous in all significant aspects".
23) Geographic Segmentation-In geographic segmentation, market is divided on the basis of geographic variables such as nations, regions, cities, states, locality etc. Geographical variables are measurable.
24) Demographic Segmentation-Demography is the study of the variables of population such as age composition, gender, education and so on. Demographic segmentation is dividing market on the basis of demographics.
25) Psychographic Segmentation- In Psychographic segmentation, consumers are divided on the basis of psychological traits such as emotions, behaviour and mind.
26) Behavioural Segmentation-Here, segmentation is done on the basis of product related behaviour such as product usage rate, user status, loyalty pattern, buying motives, attitudes and responses etc.
27) Sociographic Segmentation-Markets can be segmented on the basis of sociological factors like culture, socio-class etc.
28) Niche Marketing-Niche Marketing involves marketing the product to a very selected segment.
29) Customer Relationship Marketing[CRM]-CRM recognises the importance of developing long term relationship with customers. The objective of CRM is to find, attract and develop new customers and retain existing customers.
30) Marketing Mix-According to William Stanton, “Marketing mix is the term that is used to describe the combination of the four inputs that constitute the core of a company’s marketing system: the product, the price structure, the promotion activities and the distribution system.
31) Product-Narrow connotation defines product as "a set of attributes assembled in an identifiable form". In other words it consists of set of physical attributes associated with brand. While the broader concept of product not only includes the physical elements but also the psychological elements associated with the brand i.e. the total benefits which the brand offers.
32) Consumer Products-Consumer goods are those goods used by household consumers for non-business purpose. In other words, they are used for ultimate consumption and not for further production.
33) Convenience goods- Convenience goods are those goods that the customer usually purchases frequently, immediately and with a minimum effort, e.g. newspapers, food items, toothpastes, pens and so on.
34) Shopping goods- Shopping goods are goods, which are purchased by the consumers after comparing the product characteristics such as shape, size, price, quality, style etc of different brands.
35) Specialty goods- Specialty goods are those goods that have unique characteristics or brand identification for which the buyer is willing to make a special purchasing effort. For e.g. expensive men’s suit, stereo sound equipment, photographic equipment etc.
36) Unsought goods-‘Unsought goods’ is a product that the consumer is not aware of or a product that the consumer is aware of but does not want it right now. For example life insurance, grave stones, cemetery plots etc.
37) Augmented product-Augmented product is a product where the product or the service provided exceeds customer's expectation. In other words, it refers to additional benefits offered by the marketer. Such benefits can be after sale service, installations, guarantees, credit facilities etc.
38) Product Mix-Few firms rely on a single product; instead they sell many products. The set of all products and items offered by a company for sale is called a 'product mix'.
39) Product Life Cycle-Each product passes through various stages during its life. This cycle of stages is called the Product Life Cycle.
40) Brand-A brand is a name and/or mark intended to identify the product and differentiate it from competing products.
41) Brand extension- Brand extension or brand stretching is a strategy in which firm uses an existing brand name is used to introduce a product in a different product category. For example manufacturers of Anchor switches have used Anchor name for introducing toothpaste.
42) Brand Positioning-It is an act of designing the company's offering and image to occupy a distinctive place in the minds of the people.
43) Brand equity-Brand equity is defined as “The incremental value of a business above the value of its physical assets due to the market position achieved by its brand and the extension potential of the brand”.
44) Price mix-Price is the exchange value of a product. It is the amount of money and/or other items with utility needed to acquire a product.
45) Price -Price is the exchange value of a product. It is the amount of money and/or other items with utility needed to acquire a product.
46) Market Skimming pricing strategy- Here the manufacturer charges a high price for his product when it is introduced in the market. Price is set at the highest possible level.
47) Market Penetration pricing strategy-Here, the manufacturer charges low price for his product when it is introduced in the market. The primary aim is to penetrate the mass market immediately and in doing so generate substantial sales volume and a large market share.
48) Cost plus pricing method/Mark up pricing method-This is the most elementary pricing method. In this method, the selling price of the product is arrived at by adding a standard mark-up i.e. margin to the product's cost.
49) Perceived Value Pricing -Nowadays, companies have started pricing their products on the customers’ perceived value of the product. The perceived value depends on various factors like goodwill of the firm, buyer's image of product performance, warranties provided, trustworthiness and esteem of the firm.
50) Going-Rate pricing-Here the firm charges a price that is based on the price of the competitors.
51) Marketing Channels-According to william stanton, "a channel of distribution is the route taken by the title to the product as it moves from the producer to the ultimate consumer or industrial user."
52) A zero level channel -A zero level channel is one in which there are no intermediaries. It is also called the direct channel of distribution. Here, the manufacturer sells his product directly to the consumers.
53) Promotion mix -Promotion mix can be defined as "the element in an organisation's marketing mix that serves to inform, persuade and remind the market of a product and/or the organisation selling it, in hope of influencing the recipients feelings, beliefs or behaviour."
54) Advertising -The American Marketing Association defines Advertising as "Any paid form of non-personal presentation and promotion of ideas, goods and services by an identified sponsor".
55) Personal Selling -Personal Selling is the personal communication of information, to persuade someone to buy something.
56) Sales Management -American Marketing Association defines sales management as the planning, direction, and control of personal selling, including recruiting, selecting, equipping, assigning, routing, supervising, paying, and motivating as these task apply to the personal sales force.
57) Sales Promotions -Sales Promotions are short-term incentives like discounts, samples etc. to stimulate demand for the product.
58) Consumer promotional tools -Consumer promotional tools are those tools which are directed towards ultimate consumer.
59) Trade promotion tools -Trade promotion tools are promotional tools directed towards the intermediaries like the wholesalers and retailers in order to motivate them to stock the manufacturer’s brand and resell it to the consumers.
60) Sales Force Promotion Tools- These tools are useful in gathering business leads, motivating sales force to greater effort and to aggressively push the product in the market to increase sales.
61) Public Relations -Public relations involve a variety of programmes designed to promote or protect the company's image or its individual products.
62) Direct Marketing -In direct marketing, companies sell their products directly to the consumers by eliminating intermediaries from the channel of distribution.
63) Tele Marketing -Here the manufacturer directly reaches the consumer on telephone. The intermediaries are eliminated from the distribution channels, which reduces the selling cost tremendously.
64) Service -Philip Kotler defines a service as "A service is any act or performance that one party can offer to another that is essentially intangible and does not result in the ownership of anything. Its ownership may or may not be tied to a physical product."
65) Rural Marketing- C.G.S Krishanamacharyulu and Lalitha Ramkrishnan, in their book on 'Rural Marketing' have defined it as, "a function which manages all those activities involved in assembling, stimulating and converting the purchasing power into an effective demand for specific products and services, and moving them to the people in rural areas to create satisfaction and a standard of living to them and thereby achieves the goal of the organization."
66) Value-engineering- This is a technique to generate cheaper products by substituting costly raw materials with cheaper ones.
67) Agricultural marketing -Agricultural marketing includes all activities in moving agricultural products from the producer i.e. the farmer to the consumer.
68) Social Marketing - It refers to the application of basic marketing principles to the design and implementation of programs and information campaigns that advance social causes.
69) Green marketing- Green marketing refers to the process of selling products or services based on their environmental benefits. Such a product or service may be environmentally friendly in it or produced and packaged in an environmentally friendly way.
70) Event Marketing- Event marketing involves designing or developing a 'live' themed activity, occasion, display, or exhibit such as a sporting event, music festival, fair, or concert to promote a product, cause, or organisation.
71) E-Commerce- Any form of business transaction in which the parties interact electronically rather than by physical changes or direct physical contact.
72) Retailing -Retailing includes all the activities involved in selling goods or services to final consumers for ultimate consumption.
SEC-II HUMAN RESOURCE MANAGEMENT
2) Human Resource Planning[HRP] -Human resource planning involves identifying, recruiting, training and placing people at right time and place in order to maximise output.
3) Manpower inventory analysis -Manpower inventory analysis provides information about the present and potential manpower of the organisation.
4) Human Resource Development[HRD]- Human resource development in the organisational content is a process by which employees in the organisation are helped in continuous and planned way to :
* Acquire or sharpen capabilities to perform various functions;
* Discover, identify and utilise their own inner potentials for their and organisation progress;
* Improve the overall work culture in which employees at different level work as a team and take pride in working for the organisation.
5) Recruitment- Recruitment involves identifying the prospective candidates and inducing them to apply for the job.
6) Select- To select is to choose the best or the most suitable candidate.
7) Interview- An interview is an oral examination of an applicant.
8) Focused directed interview- Here the interview is a structured one. Direct questions are asked. The questions are focused on the requirements of the job.
9) Formal Interview: A formal interview is an interview which is conducted as per the rules, convention or practice.
10) Informal Interview: Informal interviews are interviews which are conducted without any formal notice and
specific aim or contention.
11) Stress Interview: Stress is a pressure or tension exerted. In a stress interview the interviewer tries to put stress on the candidate.
12) Placement -Placement involves assigning a specific job to each one of the selected candidate.
13) Induction- Induction means orientation. When a new person is recruited in the organisation it is essential to orient a new comer about the organisation .
14) Training is the act or process of teaching or learning skill, discipline etc. while development is a stage of growth or advancement.
15) Coaching- Coaching is guidance and training provided generally by a senior to a new recruit.
16) Understudy -An understudy is a person who studies another's role or duties in order to act at short
notice in the absence of the other.
17) Job rotation- It involves shifting the employee from one job to another.
18) Apprentice- An apprentice is learning the trade by being employed in it for an agreed period at low wages.
19) Vestibule training- Vestibule means a hall. Vestibule training therefore implies training provided in a hall.
20) Role Playing -Role playing is an exercise or a game in which participants act the part of another character.
21) Simulation- To simulate is to imitate. Simulation is the presentation of real situation of organisations in the training session.
22) Brainstorming- Brainstorming is a sort of group discussion where there is free discussion of ideas. The objective of such discussion is that one idea stimulates other ideas and the group may be successful in developing a great idea.
23) Gaming- Gaming involves forming different teams and each team is told to prepare a comprehensive plan for a year indicating the number of products to be produced, the amount to be raised, the working capital needs, the level of inventory etc.
24) Sensitivity training -Many a times work pressure leads to lot of stress and tension. People have different ways and means to respond to stress. It is necessary to be sensitive to colleagues who are under stress. So sensitivity training is advocated.
25) Performance appraisal -Performance appraisal involves evaluation of employee's performance at the work place.
26) 360-degree appraisal -360-degree appraisal is nothing but appraisal done by every one. It can be the senior, juniors, customers, creditors and so on.
27) Employee retention -Employee retention is a process in which the employees are encouraged to remain
with the organization for the maximum period of time or until the completion of the project.
28) Wage incentives -Wage incentives are performance related incentives offered to the employees to excel in their work.
29) Performance-related pay- Performance-related pay is the money paid to someone relating to how well he or she works at the workplace.
30) Human relations -Human relation is an area of management practice which is concerned with the integration of people in to a work situation in a way that motivates them to work productively, cooperatively and with economic, psychological and social satisfaction.
31) Leadership- Leadership can be defined as the art or process of influencing people so that they strive willingly and enthusiastically towards achievement of group goals.
32) Motivation -Motivation includes all internal and external factors which induces a person to take a particular course of action.
33) Employee Morale-Morale is a mental condition which determines enthusiasm to work. High employee morale is a state of mind where the employee has high enthusiasm to work.
34) Grievance -Grievance is a ground for complaint. Grievance is a feeling of injustice at the work place whether actual or perceived.
35) Human resource accounting- Human resource accounting involves quantifying the human resource in monetary terms and including it in the company's assets.
36) Human resource audit -Human resource audit involves verification of the various human relation practices, policies and a programme adopted by the company.
37) Group dynamics -Group dynamics refer to the ways in which people interact and relate to one-another in a group situation. Group dynamics are basically moral or physical forces affecting behaviour of members in a group.
38) Team building -Team building refers to the process of establishing and developing a greater sense of cooperation and trust between team members.
39) Emotional intelligence- Emotional intelligence is the ability to manage emotion at work place.
40) Mentoring -Mentor is an experienced and trusted adviser. Therefore mentoring is guidance given by a senior in the organisation to a new recruit.
41) Career planning -Career planning involves deciding on the career goals of the employees and the route to achieve those career goals.
42) Career development- Career development is activities and actions undertaken primarily by an employee and supported by management to achieve individual career goals.
43) Succession planning -Succession planning can be defined as an ongoing process of systematically identifying, assessing and developing organisational leadership to enhance performance.
44) Employee empowerment -Empower means to authorise or give power to; therefore employee empowerment involves giving power or authority to employees.
45) Employee participation-Participation is contribution in the process of decision making and implementing. This participation is emotional and physical in nature.
46) Workforce diversity- Differences exist due to differences in cultures, education, lifestyle, values etc. This diversity is reflected in behaviour of employees. So it is essential to understand this diversity and manage it.
47) Downsizing -Downsizing involves reducing the size of the organisation.
48) Outsourcing -Outsourcing refers to a company that contract with another company to provide services that might otherwise be performed by in-house employees.
49) Safety and security management system- Safety and security management system involves creating a favourable business environment that attracts and retains tenants, customers, and visitors.
50) Job design -A job is a piece of work to be done, while a design is a preliminary plan or sketch. Thus job design is a plan or a sketch of the job to be done.
CHAPTER 1-INTRODUCTION TO MARKETING
Q1] DEFINE MARKETING.EXPLAIN ITS FEATURES
. William Stanton defines marketing as "Marketing is a total system of business activities designed to plan, price, promote and distribute want satisfying products to target market to achieve organisational objective".
FEATURES OF MARKETING
1. Continuous Process
2. Involves Exchange
3. Goods Services and Ideas
4. Transfer of Ownership
5. Customer Oriented
6. Commercial as well as Non-Commercial Organisation
7. Involves Various Functions
8. Achieve Organisational Objectives
9. Social Responsibility
10. Dynamic Marketing Environment
11. Focus on the Target Customers
12. Marketing Mix
13. Integrated Management Function
Q2] EXPLAIN THE CONCEPTS OF MARKETING
1. The Exchange Concept
. According to this concept, exchange of a product between the seller and the buyer is the central idea of marketing.
2. The Production Concept
According to this concept, consumers will prefer products that are inexpensive and widely available.
3. The Product Concept
This concept states that the consumers will prefer products that offer the best quality, performance or innovative features. .
4. The Selling Concept
According to this concept, a company cannot expect its products to be picked up automatically by the customers. It has to push its products in market by undertaking selling efforts such as advertising, publicity, salesmanship, sales promotion etc.
5. The Marketing Concept
. Marketing starts with determining consumer wants and ends with the satisfaction of those wants. It sees all marketing activities from the point of view of the consumer.
6. The Societal Concep. Organisations who support this concept, work at a balance between the three objectives of company profits, consumer satisfaction and public interest..
Q3] EXPLAIN THE IMPORTANCE AND SCOPE OF MARKETING
1. Satisfying Consumer's Wants
2. Achieves Objectives
3. Creates Utility .
4. Widens Market
5. Face Competition
6. Goodwill .
7. Introduction of New Product
8. Generates Employment .
9. Improves Standard of Living .
10. Enables Price Control
11. Spread Effect
12. Economic growth
Q4] EXPLAIN THE ROLE OF MARKETING MANAGERS IN CHANGING MARKETING ENVIRONMENT
1. Marketing Research
2. Product Planning and Development .
3. Buying and Assembling
4. Ensuring consumer delight
8. Inventory management .
10. Advertising the product
11. Resorting to Personal Selling .
12. Selecting Sales Promotion tools .
13. Undertaking Public Relations exercise
14. Test Marketing
MARKETING INFORMATION SYSTEM &MARKETING RESEARCH
Q5] WHAT IS MARKET OPPORTUNITY ANALYSIS?EXPLAIN ITS IMPORTANCE
Market Opportunity Analysis is a prime tool to determine attractiveness and probability of success in the growing market.
1. Knowing potential demand-
2. Developing product-.
3. Finalising price
4. Delighting customers
5. Selecting promotional tools-
6. Analysing competitors’ strategies.
7. Finding legal requirements-.
8. Deciding on channel of distribution-.
Q6] DEFINE MARKETING INFORMATION SYSTEM.EXPLAIN ITS COMPONENTS
According to Philip Kotler, "Marketing Information System (MIS) consists of people, equipments and procedures to gather, sort, analyse, evaluate and distribute needed, timely and accurate information to marketing decision makers."
COMPONENTS OF MIS
a) Internal Company Records
Internal company records consist of the data, which is available within the company.
b) Marketing Intelligence System
Marketing intelligence system supplies external data to the firm. Philip Kotler defines a marketing intelligence system as "A set of procedures and sources used by managers to obtain their everyday information about pertinent developments in the marketing environment".
c) Marketing Research
Philip Kotler defines Marketing research as "A systematic design, collection, analysis and reporting of data and findings relevant to a specific marketing situation facing the company
d) Marketing Decision Support System
A decision support system is a procedure that allows a manager to interact with data and methods of analysis; to gather, analyse and interpret information.
Q7] WHAT ARE THE REQUISITES OF A GOOD MIS?
A good MIS should fulfill the following requirements :
2. Fast .
4 Marketing decision support system
5. Economical .
7. Inter-relationship between MIS and culture of the firm.
9. Latest techniques
Q8] EXPLAIN THE STEPS INVOLVED IN DESIGNING OF A MIS
1. Defining the information needs .
2. Identifying the sources of information
3. Evaluating the cost of collecting and processing the information
4. Collection, storing and processing of information
5. Dissemination of information
6. Reviewing the system
Q9] EXPLAIN THE NEED AND IMPORTANCE OF MIS
1. Facilitates planning .
2. Spotting of trends
3. Tapping marketing opportunities
4. Correct decision making
5. Growing consumer expectations
8. Increase in competition .
9. Information explosion
Q10] WHAT IS MARKETING RESEARCH? EXPLAIN ITS FEATURES
Marketing Research is concerned with marketing studies of specific marketing problems and opportunities
1. Continuous process .
2. Wide coverage
3. Analysis and inferences .
4. Decision support system .
5. Statistical tools used
6. Different methods
7. Facilitator not guarantor
Q11] EXPLAIN THE LIMITATIONS OF MARKETING RESEARCH
1. Time consuming
2. Costly .
3. Not exact
4. Not a substitute to decision making .
5. Management attitude
6. Complex environment
7. Shortage of qualified staff .
8. Improper selection of sample
9. Research or respondent bias
10. Other limitations
CHAPTER 3-CONSUMER BEHAVIOUR
Q12] DEFINE CONSUMER BEHAVIOUR AND EXPLAIN THE FACTORS AFFECTING CONSUMER BEHAVIOUR.
Consumer behaviour is defined as "The study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society."
FACTORS INFLUENCING THE CONSUMER/BUYING BEHAVIOUR
Following are the factors influencing the buying behaviour of consumers.
a) Cultural factors
Culture refers to a set of values, traditions or beliefs which guide the individual’s behaviour.
b) Social factors
The social class to which an individual belongs also affects his buying behaviour.
1. Reference groups
A reference group refers to all groups that influence attitudes and behaviour of a person.
3. Social role and status
c) Personal factors
4. Income .
d) Psychological factors
4. Beliefs and Attitudes
MARKET SEGMENTATION & CUSTOMER RELATIONSHIP MANAGEMENT
Q13] DEFINE MARKET SEGMENTATION AND EXPLAIN ITS FEATURES
. William Stanton defines it as "the process of dividing the total heterogeneous market for a product into several sub markets or segments, each of which tends to be homogeneous in all significant aspects".
FEATURES OF MARKET SEGMENTATION
1. Heterogeneous market
2. Involves market division .
3. Different bases
4. Continuous process
5. Consumer centric
6. Involves research
7. Time consuming
Q14] EXPLAIN THE IMPORTANCE OF MARKET SEGMENTATION
1. Consumer oriented .
2. Optimum use of resources
3. Develops marketing plan
4. Designing products
5. Pricing the product
6. Effective advertising
7. Distribution strategies
8. Brings about progress and awareness
9. Achieving marketing objectives
Q15] WHAT ARE LIMITATIONS OF MARKET SEGMENTATION?
1. Unpredictable consumer behaviour
3. Time consuming
5. Dynamic environment
6. Too complex
7. Lack of availability of data
8. Incorrect inferences
Q16] EXPLAIN THE VARIOUS BASES OF MARKET SEGMENTATION
A. Geographic segmentation
2. Urban/Rural/Semi urban
B. Demographic segmentation
Demography is the study of the variables of population such as age composition, gender, education and so on.
3. Family life cycle
4. Family size
6. Education .
8. Race and religion
C. Psychological Segmentation
1. Personality characteristics
2. Life style
D. Behavioural Segmentation
Here, segmentation is done on the basis of product related behaviour such as product usage rate, user status, loyalty pattern, buying motives, attitudes and responses etc.
1. Benefits sought
2. User status :
3. User rate
4. Readiness stage .
5. Buying motives
E. Sociographic segmentation
2. Social class
3. Reference groups
Q17] EXPLAIN THE REQUIREMENTS OF EFFECTIVE SEGMENTATION
3.Availability of data
7.Availability of resources
Q18] WHAT IS CUSTOMER RELATIONSHIP MARKETING?EXPLAIN ITS VARIOUS TECHNIQUES
CRM recognises the importance of developing long term relationship with customers. The objective of CRM is to find, attract and develop new customers and retain existing customers.
TECHNIQUES OF CRM
1. Know Your Clients by Name
2. Make Conversation with Your Clients
3. Offer Incentives to Your Regular Customers
4. Always Offer best Service
5. Inquire About Customer Comments
6. Provide quality products and/or quality service
7. Offer warranties/guaranties and cash back for returns
8. Send thank you notes
9. Make a point to keep in touch with all of your customers and clients.
10. Make a point to remember any events that are significant,.
11. Smile, and strive to be friendly with your customers at all times
12. Offer a customer appreciation day once a year.
13. Offer a free gift with purchase..
14. Establish Feedback system.
15. Promise very little, and deliver a great deal more than what was expected.
16. Create a website.
17. Use the press.
18. List creatively and widely.
19. Create straightforward, easy-to-understand pricing
20. Encourage personal recommendations.
CHAPTER 5- MARKETING MIX
Q19] WHAT IS MARKETING MIX? EXPLAIN ITS FEATURES.
According to William Stanton, “Marketing mix is the term that is used to describe the combination of the four inputs that constitute the core of a company’s marketing system: the product, the price structure, the promotion activities and the distribution system.
FEATURES OF MARKETING MIX
1. Combination of variables
2. Dynamic concept
3. All variables equally important
4. Applies to business as well as non-businesses
5. Fulfilling objectives
7. Customer oriented concept
8. Proper integration of marketing mix variables requires special abilities
Q20]EXPLAIN THE VARIOUS COMPONENTS OF MARKETING MIX
. It can be defined as anything that is offered for sale in the open market. It includes not only tangible goods but also intangible goods like services and ideas.
Price is the exchange value of a product i.e. the amount for which a thing is bought or sold.
. Another important aspect of marketing is to make the product available at the right place, for which various other activities have to be undertaken. It includes sub-variables such as channels of distribution, place of distribution, transportation, warehousing and the intermediaries involved in the process of distribution.
Promotion mix includes all the activities undertaken by an organization to promote its products in the target market. It includes sub-variables such as advertising, sales promotion, personal selling, public relation, publicity, direct marketing etc.
Channel of distribution
Place of distribution
Level of margins
After Sale Service
CHAPTER 6-PRODUCT MIX & PRICE MIX
Q21] WHAT IS PRODUCT MIX/PRODUCT ASSORTMENT
The set of all products and items offered by a company for sale is called a 'product mix'.
A company's product mix includes :
1. Product width
It refers to the number of different products the organization offers. For example, product width of HLL includes soaps, cosmetics, ice-cream, atta, toothpaste etc.
2. Product length
It refers to the total number of items in each product category; for e.g. in the category of soaps HLL includes brands like Lux, Liril, Lifebuoy and so on..
3. Product depth
It explains the number of variants of each product in the line. If Colgate toothpaste has two variants like Colgate Total, Colgate Gel etc.
4. Product consistency
It refers to how closely related the various product lines are, with respect to end use, production requirements, distribution channels or some other way..
Q22) WRITE A NOTE ON PRODUCT LIFE CYCLE
Each product passes through various stages during its life. This cycle of stages is called the Product Life Cycle. These stages include :
(1) Introduction (2) Growth (3) Maturity (4) Decline
Q23]WHAT IS A BRAND?HOW IS NAME GENERALLY SELECTED?
A brand is a name and/or mark intended to identify the product and differentiate it from competing products.
BRAND NAME SELECTION DECISION
1. Individual names- Lux, Liril etc.
2. Company trade name combined with individual product names: Godrej locks, Godrej cupboards, Godrej soaps etc.
3. Blanket family name: Philips name is used for its various products like bulbs, tube lights etc..
4. Separate family names for all products- TATA has Tanishg for jewellery,Titan for watches etc.
Q24] WHAT IS BRAND EXTENSION?EXPLAIN ITS ADVANTAGES AND LIMITATIONS
Brand extension or brand stretching is a strategy in which firm uses an existing brand name is used to introduce a product in a different product category.
1. Facilitate new product introduction-
2. Less advertising.
3. Enhance consumer perception.
4. More product variety.
5. Spreads risk.
1. Resources divided-.
2. Dilute image-.
3. Confuse positioning.
Q25] WHAT IS BRAND BUILDING?EXPLAIN VARIOUS POSITIONING STRATEGIES.
Positioning involves capturing the mind space of the consumers with a distinctive feature or benefit of the brand.”
Following are the major positioning strategies :
1. Positioning by price .
2. Positioning on the basis of quality
3. Positioning on the basis of competitors .
4. Positioning on the basis of an unique attribute .
5. Positioning on the basis of a product class .
6. Positioning in relation to a target market .
7. Positioning using personalities .
8. Positioning on the basis of security .
9. Positioning on National pride
Q26] WHAT IS BRAND EQUITY ?EXPLAIN THE VARIOUS FACTORS AFFECTING BRAND EQUITY
Brand equity is defined as “The incremental value of a business above the value of its physical assets due to the market position achieved by its brand and the extension potential of the brand”.
Brand equity is dependent upon various factors. These are :
1. Brand awareness
2. Brand name recognition.
3. Perceived quality of the brand.
4. Brand acceptability.
6. Brand Associations.
7. Channel relationship
B. PRICE MIX
Q27] WHAT IS PRICE?EXPLAIN VARIOUS PRICING METHODS
Price is the exchange value of a product. It is the amount of money and/or other items with utility needed to acquire a product.
1. Cost plus pricing method/Mark up pricing method
. In this method, the selling price of the product is arrived at by adding a standard mark-up i.e. margin to the product's cost. For example, if the total cost of production and distribution of product per unit is Rs. 75. and the firm wants to earn a profit of Rs. 25, the selling price would be Rs. 100 (75 + 25).
2. Target-Return pricing
Here, the firm determines the price that would fetch its target rate of return on investment.
As per this method, the selling price can be determined by using the formula
= Unit cost +
For example, a manufacturer has invested Rs. 1,00,000 and is expecting a return of 20%. The cost of the product is assumed to be Rs. 80 per unit. He expects to sell 1,000 units. Here, the target return price can be calculated as :
Target return price = 80 +
= 80 +
= 80 + 20
= Rs. 100/- per unit
3. Perceived Value Pricing
Nowadays, companies have started pricing their products on the customers perceived value of the product. The perceived value depends on various factors like goodwill of the firm, buyer's image of product performance, warranties provided, trustworthiness and esteem of the firm.
4. Value Pricing
Recently, several companies have adopted value pricing method, in which they win loyal customers by charging a fairly low-price for a high-quality product.
5. Going-Rate pricing
Here the firm charges a price that is based on the price of the competitors.
6. Sealed-Bid Pricing
It is a competition oriented method of pricing. Here, the firms go for competitive bidding through sealed tenders or quotations. They seek the best (lowest possible) price consistent with the minimum quality specification.
CHAPTER 7-PLACE MIX & PROMOTION MIX
A] PLACE MIX
Q28] DISTINQUISH BETWEEN DIRECT MARKETING AND INDIRECT MARKETING
Here the product is sold directly to the consumer without the help of intermediary.
Here the product is sold to the ultimate consumers with the help of intermediaries..
Capital cost of distributing the product is more as the company has to open its own retail outlets.
Capital cost of distributing is less as distribution is delegated to intermediaries.
3)LESS DISTRIBUTION TIME
Direct marketing saves time as the intermediaries are eliminated from the distribution process.
The time taken to distribute the goods to the ultimate customer is more due to the intermediaries involved in the distribution process.
There are various forms of direct marketing tools such as door to door selling,internet,telemarketing,home shopping channel etc.
Indirect marketing is undertaken through wholesalers and retailers.
Direct marketing is suitable for product having specific market. For example resorts and holiday homes are often promoted through internet.rr
Indirect marketing is suitable FOR products which have mass demand such as toothpaste, soap etc.
Since the marketer is involved in the distribution process he has good control over the distribution of his goods.
Here the manufacturer relies totally on the intermediaries for the distribution of his goods so he loses control over the distribution process.
Since the organisation eliminates intermediaries the manufacturer is in direct contact with the consumer. This helps them in getting quick feedback about the product from the consumers.
Feedback about consumers’ opinion can be sought from intermediaries. It is quite possible that the feedback may get distorted in the channel and the manufacturer may not get true feedback.
More advertising is necessary for direct marketing as the support of intermediaries is not available for promoting the product.
Intermediaries help to push the product forward. So dependence on advertising is relatively less.
Q29] EXPLAIN VARIOUS FUNCTIONS PERFORMED BY CHANNEL MEMBERS
1. Large scale distribution of goods
2. Continuous supply
3. Information about target audience
5. Attractive display of merchandise.
6. Finalise deals .
7. Informing and educating customers
8. Storing of goods
9. Risk bearing
10. Standardisation and grading
Q30) EXPLAIN VARIOUS CONSUMER GOODS MARKETING CHANNELS
i) Manufacturer — Consumer(direct marketing)
ii) Manufacturer-retailer-consumer channel .
iii) Manufacturer-wholesaler-retailer-consumer channel
iv) Manufacturer — Sole selling agent — Wholesaler — Retailer — Consumer
Q31] EXPLAIN VARIOUS FACTORS INFLUENCING CHANNEL DECISIONS
1) Type of product
2) Availability of intermediary
3) Extent of competition
4) Company’s policy
6) Funds available.
7) Image of the company
B. PROMOTION MIX
Q32] WHAT IS PROMOTION MIX?EXPLAIN THE ROLE OF PROMOTION MIX
Promotion mix can be defined as "the element in an organisation's marketing mix that serves to inform, persuade and remind the market of a product and/or the organisation selling it, in hope of influencing the recipients feelings, beliefs or behaviour."
Role of promotion mix
3. Changes attitudes
4. Expansion and diversification
5. Increase in sales
6. Better Standard of living
7. Economies of large-scale production and distribution
8. Creates brand image
9. Create a separate niche
Q33] EXPLAIN THE VARIOUS ELEMENTS OF PROMOTION MIX
The major promotion mix tools available at the disposal of manufacturer are :
2. Personal Selling
3. Sales Promotion
4. Public Relation
5. Direct Marketing
The American Marketing Association defines Advertising as "Any paid form of non-personal presentation and promotion of ideas, goods and services by an identified sponsor".
2) PERSONAL SELLING/SALESMANSHIP
Personal Selling is the personal communication of information, to persuade someone to buy something.
Role of salesmanship/sales management
i. Identifying potential customers-
ii. Selling product
iii. Motivating sales force.
iv. Setting sales targets.
v. Monitoring sales performance.
vi. Training sales people.
vii. Post sale activities-
viii. Rewarding sales employees-
3. SALES PROMOTIONS
Sales Promotions are short-term incentives like discounts, samples etc. to stimulate demand for the product.
4. PUBLIC RELATIONS
A "public" is any group that has an actual or potential interest in or impact on a company's ability to achieve its objectives. Public relations involve a variety of programmes designed to promote or protect the company's image or its individual products.
ROLE OF PULIC RELATIONS
1. Press releases
2. New product development .
3. Corporate Communication .
Tools in marketing public relations
4. Speeches .
5. Public welfare Activities
5. DIRECT MARKETING
In direct marketing, companies sell their products directly to the consumers by eliminating intermediaries from the channel of distribution.
Channels for direct marketing
1. Direct Mail
2. Tele marketing .
4. Kiosk Marketing .
5. The Internet .
Q34] EXPLAIN THE VARIOUS SALES PROMOTION TOOLS USED BY INDIAN COMPANIES
Recent Sales Promotions tools used by Indian companies can be categorised into:
1) Promotions aimed at Consumer consumers
2) Trade promotions directed towards the members of the distribution channels.
CLASSIFICATION OF SALES PROMOTION TOOLS
The major promotion tools are as under :
a) The consumer promotion tools
Consumer promotional tools are those tools which are directed towards ultimate consumer.
2. Coupons .
3. Cash refund offers (rebates)
4. Price Packs .
5. Premiums (Gifts)
6. Prizes .
7. Patronage awards
8. Free Trials
10. Tie in Promotion
11. Point of Purchase Displays and Demonstration
b) Trade Promotion Tools
Trade promotion tools are promotional tools directed towards the intermediaries like the wholesalers and retailers in order to motivate them to stock the manufacturer’s brand and resell it to the consumers..
2. Allowances .
3. Free Goods
c) Sales Force Promotion Tools
These are directed towards the sales force. These tools are useful in gathering business leads, motivating sales force to greater effort and to aggressively push the product in the market to increase sales. These tools are :
1. Trade Shows and Conventions
2. Sales Contests .
3. Specialty advertising
CHAPTER 8.RECENT TRENDS IN MARKETING
Q35]] DEFINE SERVICE AND EXPLAIN ITS FEATURES
Philip Kotler defines a service as "A service is any act or performance that one party can offer to another that is essentially intangible and does not result in the ownership of anything. Its ownership may or may not be tied to a physical product."
FEATURES OF SERVICES
1. Service is a performance
2. No transfer of ownership .
5. Variability .
Q36] STATE MARKETING MIX FOR SERVICES
2. Physical evidence
B] RURAL MARKETING
Q37] EXPLAIN THE PROBLEMS OF RURAL MARKETING IN INDIA
1. Underdeveloped people and underdeveloped markets
2. Lack of proper transportation facilities
3. Many languages and dialects
4. Communication problems
5. Dispersed market .
6. Low per capita income
7. Low level of literacy
8. Storage problems
9. Problems in channel management
10. Problems in sales force management .
11. Other problems
o Rural people prefer cheaper local variants to branded products.
o They are cautious in buying and their buying decisions are slow.
o The rural demand is seasonal in nature.
o Inadequate banking facilities.
o Organised media such as print and broadcast, do not reach all the rural areas.
C] SOCIAL MARKETING
Q38] WHAT IS SOCIAL MARKETING?EXPLAIN THE AREAS WHERE IT CAN BE APPLIED.
Social marketing refers to the application of basic marketing principles to the design and implementation of programs and information campaigns that advance social causes.
. Some of the areas where service marketing has been used to mould members of society are :
* Preservation of the environment
* Family planning
* AIDS awareness
* Blood and Eye donations
* Gender bias
* avoid usage of plastics
* avoid unhealthy habits like smoking, drug abuse, alcoholism etc.
D] GREEN MARKETING
Q39] WHAT IS GREEN MARKETING?EXPLAIN ITS IMPORTANCE
Green marketing refers to the process of selling products or services based on their environmental benefits. Such a product or service may be environmentally friendly in it or produced and packaged in an environmentally friendly way.
1. Sustainable development
2. Less pollution
4. Less governmentCapital inflows.
5. Reduce cost.
E] EVENT MARKETING
Q40] WHAT IS EVENT MARKETING?EXPLAIN THE GUIDELINES FOR SUCCESSFUL EVENT MARKETING.
Event marketing involves designing or developing a 'live' themed activity, occasion, display, or exhibit such as a sporting event, music festival, fair, or concert to promote a product, cause, or organisation. In simple words it involves organising an event to build the brand.
1. Attendance of potential customer
2. Ensure value addition
3. Undertake cost benefit analysis
4. Relevant & viable freebies
5. Appropriate location
F] INTERNET MARKETING
Q41] WHAT IS INTERNET MARKETING? EXPLAIN ITS BENEFITS
E-commerce involves the exchange of products, services, information and payment through the electronic medium of computers. It includes electronic data interchange, electronic payment systems, order management, information exchange and other business applications, with electronic/paperless documentation.
BENEFITS OF E-COMMERCE OR WEB MARKETING
a) TO THE SELLER
1. Global market
3. Customisation possible
5. Quick and enhanced service.
6. Building long term relationship .
7. Proper co-ordination
8. Effective medium of communication
b) TO THE CONSUMER
2. Product demonstration
3. Wide choice
4. Bargaining possible
Q41] WHAT IS TELEMARKETING? EXPLAIN ITS ADVANTAGES AND LIMITATIONS
Telemarketing is marketing conducted over the telephone. Most telemarketing calls are "cold calls," meaning the recipient of the call has not requested that the telemarketer should contact them.
Advantages of Telemarketing:
1. Reduces cost.
2. Two way communication
5. Quick results
Limitations of telemarketing
1. No visual contact
2. Short memory
3. Other media necessary.
H].. RETAIL MANAGEMENT
Q42] WHAT IS RETAILING? EXPLAIN THE TRENDS IN RETAILING.
Retailing includes all the activities involved in selling goods or services to final consumers for ultimate consumption.
TRENDS IN RETAILING
1. New retail forms
2. Increase in competition
3. Growth of giant retailers
4. Expanding computer technology
5. Emphasis on lower prices and lower costs
7. Growth of non store retailing
SECTION - II
HUMAN RESOURCE MANAGEMENT
Q43] DEFINE HUMAN RESIURCE MANAGEMENT? EXPLAIN ITS FEATURES..
According to Flippo, HRM is the planning, organising, directing and controlling of the procurement, development, compensation, integration, maintenance and reproduction of human resources to the end that individual, organisational and societal objectives are achieved.
NATURE/CHARACTERISTICS/FEATURES OF HRM
i. Employee centric
iv. Art & science
v. All pervasive
vii. Future oriented
x. Involves different functions
xi. At all levels
Q44] EXPLAIN THE SCOPE OF HUMAN RESOURCE MANAGEMENT
1. HR planning.
2. Job analysis.
5. Training and.
7. Job evaluation.
8. Executive remuneration.
10. Safety and health.
11. Employee welfare.
12. Employee communication.
13. Promotion and transfer.
14. Trade unions.
15. Ethical issues in HRM.
Q45] EXPLAIN THE IMPORTANCE OF HUMAN RESOURCE MANAGEMENT
The importance of HRM can be seen at four levels, namely:
i. At Corporate level
ii. At Professional level
iii. At Social level
iv. At National level
1) AT CORPORATE LEVEL-
* Attracting and recruiting best talent
* Proper induction & refresher training to the recruits.
* Formulating proper promotion and transfer policy
* Placing right employee for right job.
* Setting welfare schemes for the employees
* Deciding the motivational theories to be adopted
* Deciding the performance appraisal policies.
* Finalising the retrenchment policy of the organisation.
2) AT PROFESSIONAL LEVEL-
* Identifying the aptitude and skill of the employees.
* Developing career of the employees.
* Improves interpersonal communications.
3) SOCIAL SIGNIFICANCE
* Balance human resource demand with HR supply
* Provides employment
* Enhances the quality of labour force
* Optimum utilisation of human resource.
4) NATIONAL SIGNIFICANCE
* Nation’s physical, financial and human resources are put to the most effective use.
* It leads to rapid economic development..
Q46] EXLAIN THE FUNCTIONS OF HRM
a. Managerial Functions
b. Operative Functions
a. Managerial Functions-
These are general managerial functions which every manager has to perform.
b. Operative Functions-
These are the functions to be performed by human resource department.
i. Procurement function-
It is concerned with recruiting people.
* Job analysis.
* Induction training.
ii. Development Function-. After recruiting employees it is essential to provide necessary training to them and thereby develop their skills properly in order to enable them to utilise their talent to the optimum extent.
* Career planning & development.
* Performance appraisal.
iii. Compensation Function-
The compensation to be paid to the employees has to be finalised. .
iv. Reconciliation Function-
Reconciliation function involves integrating individual goals with departmental and organisational goals..
v. Maintenance Function-it is necessary to maintain physical and mental health of the employees.
Q47] EXPLAIN THE ROLE OF HR MANAGERS IN THE CHANGING BUSINESS ENVIRONMENT
1) Developing employee commitment
2) Team building
7) Career development.
8) Developing strategy
HUMAN RESOURCE PLANNING
Q48] WHAT IS HUMAN RESOURCEE PLANNING? EXPLAIN ITS IMPORTANCE
"Human resource planning involves identifying, recruiting, training and placing people at right time and place in order to maximise output".
IMPORTANCE OF HUMAN RESOURCE PLANNING
1. Determining future personnel needs
2. Helps strategy formulation
3. Attract and retain talented workforce
4. Select right personnel
5. Avoid surplus staff.
6. Optimum utilisation of labour.
7. Promotion, transfers
8. Increasing investment in human resource
Q49] EXPLAIN THE PROCESS OF HUMAN RESOURCE PLANNING/STEPS IN HRP?
1. Environmental scanning.
2. Organisational objectives and policies.
3. Forecasting human resource demand.
4. Forecasting supply of human resource.
6. Implementing the plan.
7. Controlling and evaluating.
Q50] WHAT IS JOB ANALYSIS? WHAT ARE ITS USES?
Job analysis enables the organisation to find out the peculiarities of the job, the qualities and qualifications of the candidates that are necessary to fulfil the job requirements properly and so on.
Thus Job analysis includes :
1. Job description
Job description gives details of the job to be performed.
2. Job specification
Job specification is the summary of the specific personal characteristics of the individual that are needed to perform the job effectively.
USES OF JOB ANALYSIS
* Job analysis helps in knowing what the job involves.
* It helps in finalising the pay scale.
* Job analysis helps in knowing the relative worth of each job
* Job analysis helps in finalising the training program.
* It helps in performance appraisal..
* It avoids duplication of work.
* It helps in identifying the work which was unassigned.
* It helps in knowing whether legal requirements pertaining to a job have been complied with.
Q51] WHAT IS RECRUITMENT? EXPLAIN ITS VARIOUS SOURCES
Recruitment involves identifying the prospective candidates and inducing them to apply for the job..
There are two sources of manpower namely :
1. INTERNAL SOURCES OF RECRUITMENT
(i) Catalogue /list:
(ii) Recommendation by seniors
(iii) Display board.
1. Employment bureaus.
2. Campus recruitment.
4. Working list.
5. Employee recommendations.
6. Gate hiring.
8. Social consideration.
Q52] WHAT IS SELECTION? EXPLAIN THE STEPS IN SELECTION OF A CANDIDATE
To select is to choose the best or the most suitable candidate.
SELECTION PROCESS :
1. Screening applications .
2. Written test
4. Group discussion
5. Medical examination
6. Reference check
Q53] EXPLAIN VARIOUS TYPES OF SELECTION TESTS/EMPLOYMENT TESTS
1. Intelligence test
2. Personality test .
3. Emotional quotient
4. Aptitude test .
5. Performance test .
6. Interest test
Q54] WHAT IS AN INTERVIEW?EXPLAIN ITS TYPES
An interview is an oral examination of an applicant.
TYPES OF INTERVIEW
1. Focused directed interview
2. In-depth interview
3. Video conferencing
4. Panel Interview
5. Stress interview
6. Formal Interview
7. Informal interview
Q55] EXPLAIN THE ROLE/ADVANTAGES OF INTERVIEW
a) To the company
1. Verify claims
2. Understand aptitude.
3. Additional information.
5. Recruitment decision
b) To the candidates
1. Job opportunity
2. Display skills
3. Understand job specifications
4. Develops confidence
Q56] WHAT IS PLACEMENT? EXPLAIN ITS IMPORTANCE
Placement involves assigning a specific job to each one of the selected candidate.
IMPORTANCE OF PLACEMENT-
* Job Clarity.
* Improves Productivity
* Job Satisfaction
* Optimum Utilisation Of Resources.
* No Duplication of Work.
* Reduces Labour Turnover
* Increases Morale.
Q57] WHAT IS INDUCTION? WHAT ARE THE CONTENTS OF AN INDUCTION
Induction means orientation. When a new person is recruited in the organisation it is essential to orient a new comer about the organisation .
Contents of induction programme
An induction programme is generally undertaken by the company to provide information to the new recruit about the following.
* Products and services offered by the company.
* Brief history and achievements of the company.
* Policies, procedures, guidelines, norms and practices followed by the company.
* The organisation structure and the hierarchy in the organisation.
* Grievances redress mechanism available with the company.
* Various employee welfare schemes available with the company.
* The location of various departments and the production facility .
* Career improvement and development programs adopted by the company.
* Service conditions, duties and responsibilities of the employees.
HUMAN RESOURCE DEVELOPMENT
Q58] WHAT IS HUMAN RESOURCE DEVELOPMENT? EXPLAIN ITS SCOPE.
Human resource development in the organisational content is a process by which employees in the organisation are helped in continuous and planned way to:
* Acquire or sharpen capabilities to perform various functions;
* Discover, identify and utilise their own inner potentials for their and organisation progress;
* Improve the overall work culture in which employees at different level work as a team and take pride in working for the organisation.
SCOPE OF HUMAN RESOURCE DEVELOPMENT
2. Individual development
3. Organisation development.
4. Formulating promotion policies
5. Developing feedback system
6. Conducting seminars, workshops etc.
TRAINING AND DEVELOPMENT
Q59] EXPLAIN THE VARIOUS METHODS AND TYPES OF TRAINING AND DEVELOPMENT
There are various types of training and development programmes which are conducted on the job and off-the-job.
Methods and Types of Training and Development
On the Job Training Method Off the Job Method
Understudy Seminars & Conferences
Job Rotation Role Playing
Special Assignments Simulation
Apprenticeship Case Study
Vestibule training Brain Storming
Job Experience Gaming
Induction training Sensitivity training
(a) ON-THE-JOB TRAINING METHODS ARE AS UNDER :
Coaching is guidance and training provided generally by a senior to a new recruit.
An understudy is a person who studies another's role or duties in order to act at short notice in the absence of the other
3. Job rotation
It involves shifting the employee from one job to another.
4. Special assignments
An assignment is a task allotted to a person. Giving special assignment is one of on-the job methods.
An apprentice is learning the trade by being employed in it for an agreed period at low wages.
6. Vestibule training
Vestibule means a hall. Vestibule training therefore implies training provided in a hall.
7. Job experience
Here the candidate is directly made to work on the job which he has to perform.
8. Induction training
When a new person is recruited for the job, he or she is often provided training about the job, its scope, knowledge about the process, seniors and so on
(b) OFF THE JOB TRAINING METHODS
Lectures are conducted on various issues like globalisation, India's foreign policy, disinvestment in oil sector etc.
2. Seminars and conferences
A conference is a meeting for discussing issues whereas a seminar is a conference of specialists.
3. Role playing
Role playing is an exercise or a game in which participants act the part of another character. Budding managers are made to play the role of managers.
To simulate is to imitate. Simulation is the presentation of real situation of organisations in the training session.
5. Case study
A case is a written account of an actual situation. Analytical skills, logical reasoning, conceptual understanding etc. are tested.
Brainstorming is a sort of group discussion where there is free discussion of ideas. The objective of such discussion is that one idea stimulates other ideas and the group may be successful in developing a great idea.
Gaming involves forming different teams and each team is told to prepare a comprehensive plan for a year indicating the number of products to be produced, the amount to be raised, the working capital needs, the level of inventory etc.
8. Sensitivity training
It is necessary to be sensitive to colleagues who are under stress. So sensitivity training is advocated.
Q60] WHAT IS PERFORMANCE APPRAISAL? EXPLAIN ITS FEATURES.
Performance appraisal involves evaluation of employee's performance at the work place.
Features of performance appraisal
1. Systematic evaluation
2. Focus on result
3. Various techniques and methods
4. Evaluation by different people
5. Continuous process
6. Differs from job evaluation
7. Multiple use
8. Qualitative and quantitative analysis
Q61] EXPLAIN THE ADVANTAGES AND LIMITATIONS OF PERFORMANCE APPRAISAL
Benefits/importance / purpose of performance appraisal
1. Maximise productivity
2. The managers can express their expectations.
3. Motivating employees.
4. Fixing salary
5. Understand the need and extent of training and developing.
6. Reduce wastage
7. Chance to find out the future managers
8. Merit gets its due importance.
9. The employees come to know their strengths and weakness
10. Decide on promotion
11. Finalise employee transfer
Limitations of performance appraisal
1. Biased Evaluation
2. Time Consuming
4. Lack of uniformity
6. Evaluators may not be trained
7. Fear of superseding
8. Job description not proper
Q62] EXPLAIN THE VARIOUS METHOS OF PERFORMANCE APPRAISAL
PERFORMANCE APPRAISAL METHODS/TECHNIQUES
A. TRAIT APPROACH
A trait is a distinguishing feature or characteristic:
1. Ranking Method
This method involves giving ranks to the employees depending upon their possession or absence of a particular trait say consistency.
2. Paired comparison
Here two people are compared with each other on certain predetermined traits like decision making ability, vision, foresight etc.
Here the raters predefine the various types of grades like excellent, very good, good, average, poor etc.. Subsequently the employees are graded according to the presence of that trait in them.
4. Graphic rating scales
This test enables the rater to find out varying degree of particular characteristic in the employees. It can be co-operation i.e. ability and willingness to work with others, initiative .
5. Forced choice rating
Here the rater has to select a statement which is most descriptive of the employee. For example :The employee is hardworking
6. Critical Incidence method
Here a critical incidence or incidences that occurred in the organisation are found out and how the employee responded to those situations are used to evaluate and rate the person.
B. APPRAISAL BY RESULTS/APPRAISING AGAINST VERIFIABLE OBJECTIVES
Evaluating the performance of the employees is the best indicator of their potential and ability. Employees are evaluated against some predetermined objectives. Setting the objectives is difficult as various limiting factors like the level of technology, working conditions etc. have to be considered.
C. OTHER METHODS
1. 360-degree method
360-degree appraisal is nothing but appraisal done by every one.
2. Behaviourally Anchored Rating Scale (BARS)
Behaviour of the employee towards the job, colleagues, customers etc. is found out
3. Psychological Appraisals
. Employee behaviour study can be undertaken by observing the employees, having discussions with them, giving them a questionnaire to fill and so on. Here emotional maturity, intellectual capacity, level of motivation etc. can be tested and then prediction can be done about the person’s capacity.
Q63] WHAT IS EMPLOYEE RETENTION? WHAT DOES IT INCLUDE?
Employee retention is a process in which the employees are encouraged to remain with the organization for the maximum period of time or until the completion of the project.
Retention involves five major things:
Compensation includes salary and wages, bonuses, benefits, prerequisites, stock options, bonuses, vacations, etc.
Organization environment includes :
* Company reputation
* Quality of people in the organization
* Employee development and career growth
* Risk taking
* Leading technologies
3. Growth And Career-
Growth and development are the integral part of every individual’s career. If an employee can not foresee his path of career development in his current organization, there are chances that he’ll leave the organization as soon as he gets an opportunity.
To enhance good professional relationships at work, the management should keep the following
* Respect for employees
* Proper relationship amongst colleagues
* Ensure individual development
* Reward employee
* promote employee based culture
Supervisor should support his subordinates in a way so that each one of them is a success. Management should try to focus on its employees and support them not only at work but also through the times of personal crisis.
Q64] WHAT ARE WAGE INCENTIVES?EXPLAIN THE ESSENTIALS OF A SOUND INCENTIVE PLAN
Wage incentives are performance related incentives offered to the employees to excel in their work.
Essentials of a sound incentive plan-
* Standard criteria laid down for performance evaluation.
* It is essential to incorporate minimum wages
* Incentive plans should be simple
* Finalise the incentive plans after consulting the workers.
* The offer in the incentive plan should be the same to all the employees.
* The plan should be economical.
* A good plan should be flexible..
* The incentives should be adequate enough to motivate employees.
* The incentive payment should be made available to the employee immediately.
* A proper performance appraisal mechanism should be.
Q65] WHAT ARE VARIOUS TYPES OF INCENTIVES?
1) Paid leave-.
3) Medical reimbursement-.
4) Rent free accommodation-.
5) Leave fare/paid vacations.
6) Pension schemes.
7) Gratuity & provident fund.
Q66] WHAT IS PERFORMANCE-RELATED PAY ?STATE ITS ADVANTAGES AND LIMITATIONS
Performance-related pay is the money paid to someone relating to how well he or she works at the workplace.
Advantages of performance related pay
1. It motivates the employees
2. Performance based methods can provide a level of standardization in employee evaluations.
3. Performance based models reduce fears of favouritism
4. Employees would be secure in knowing that their performance was evaluated objectively
Disadvantages of Performance Related Pay
1. Unfair for those doing complex jobs.
2. There may be disputes about how performance is measured
3. Rewarding employees individually does very little to encourage teamwork.
4. It may encourage unhealthy rivalry between managers.
5. There is much doubt about whether performance-related pay actually does anything to motivate employees. This may be because the performance element is usually only a small percentage of total pay.
6. If PRP is implemented carelessly, standards have been a source of significant stress and low morale.
7. If the difficulties performing the job vary then it becomes difficult to lay down the bench mark for evaluation.
8. Performance is hard to objectively evaluate at times specially in service sector like education, banks, medicine etc.
CHAPTER 12- HUMAN RELATIONS
Q67] WHAT IS HUMAN RELATIONS?EXPLAIN ITS IMPORTANCE.
Human relations refer to the interaction with the people.
IMPORTANCE OF HUMAN RELATIONS
1. Improves productivity.
2. Better work atmosphere
3. Less labour turnover.
4. Less labour disputes.
5. Better utilisation of resources.
6. Effective control.
7. Job satisfaction-
Q68] DEFINE LEADERSHIP .EXPLAIN QUALITIES OF A GOOD LEADER
Leadership can be defined as "the art or process of influencing people so that they strive willingly and enthusiastically towards achievement of group goals'.
QUALITIES OF SUCCESSFUL LEADER
1. Adaptable .
3. Good organiser .
8. Interpersonal skills
12. Good communication skills
13. Willingness to accept responsibility
15. Decision making
Q69] EXPLAIN VARIOUS LEADERSHIP STYLES.
One may come across following styles of leadership.
1. Autocratic style : An autocrat is a dictatorial person.
2. Democratic style : Democratic style involves practicing democracy or favouring social equality.
3. Bureaucratic Style : A bureaucrat is an inflexible and an insensitive administrator.
4. Neurocratic Style : neurocratic style involves managing an organisation more by emotion than by rational judgement.
5. Paternalistic style : Paternal means like a father. Paternalistic style of management means to take responsibility of the welfare of the employees.
6. Laissez Faire Style : Laissez faire style involves minimum interference of the management in the day to day functioning of the business
7. Situational leadership style : Here the leader does not follow any specific pattern. The style is decided upon the situation.
Q70] WHAT IS MOTIVATION?EXPLAIN FACTORS AFFECTING MOTIVATION
Motivation includes all internal and external factors which induces a person to take a particular course of action.
FACTORS AFFECTING MOTIVATION
1. Challenging jobs
2. Future prospects
3. Monetary rewards
4. Other incentives .
5. Healthy working environment
6. Scope for personal growth
Q71] EXPLAIN DOUGLAS MC GREGOR’S THEORY X AND THEORY Y OF MOTIVATION:
Most of the people dislike work
Most of the people like work.
People need to be directed as they lack initiative.
People like to take initiative.
They lack motivation.
They are highly moti-vated.
People are not ambitious.
People are very ambitious.
People are not com-mitted towards their jobs.
People are very com-mitted towards their jobs.
People are not creative.
People are very creative.
Since they lack motivation, puni-shment may have to be given along with rewards.
They expect recogni-tion and appreciation for their work.
Mc Gregor feels that theory Y would be more relevant and applicable in modern times.
Q72] EXPLAIN MASLOW'S NEED HIERARCHY THEORY –
ABRAHAM MASLOW [1908–1970]
Maslow has arranged human needs in a hierarchy. According to him at a given moment of time all needs are not equally important. They can be placed in an ascending order in the order of importance. Maslow's classification of human needs can be shown in a form of pyramid given below :
Maslow Hierarchy of Needs
(i) Physiological needs
These are the basic needs of every individual. It includes food, clothing and shelter
(ii) Security/safety needs
These needs drive a person to be relieved from the risk of not only physical danger but also of insecurity relating to job, insecurity regarding children's future and so on.
(iii) Social needs
Man is a social animal. He likes to be sociable i.e. liking the company of other people..
Esteem means to have high regard for or to greatly respect or to think favourably.
(v) Self actualisation needs
It is the desire to become what one is capable of becoming i.e. to make maximum use of one’s potential or to achieve something exceptional.
Q73] EXPLAIN HERZBERG'S TWO-FACTOR THEORY
Fredrick Herzberg developed the two factor theory in 1950's.
(i) Hygiene factors
Hygiene factors are necessary to prevent dissatisfactions.. Hygiene factors may include :
* Wages, salaries,
* Interpersonal relations.
* Job Security.
(ii) Motivational factors
Motivational factors mean those factors which would induce employees to work harder or which would impel them to increase their efficiency and work at optimum level. :
* People need appreciation for the work they do..
* Any innovative suggestion should be recognised by the management..
* The job should be challenging rather than a routine one.
Q74] WHAT IS EMPLOYEE MORALE?EXPLAIN ITS IMPORTANCE
Morale means spirits. Morale is a mental condition which determines enthusiasm to work. High employee morale is a state of mind where the employee has high enthusiasm to work.
IMPORTANCE OF MORALE
i. Increased productivity
ii. Low labour turnover
iii. Fewer accidents
iv. Low absenteeism.
v. Improve work culture
vi. Job satisfaction
vii. Less supervision
Q75] WHAT IS A GRIEVANCE?EXPLAIN THE METHOD OF FINDING GRIEVANCE.
Grievance is a ground for complaint. Grievance is a feeling of injustice at the work place whether actual or perceived. In an employee-employer relationship there can be situations where the employee feels dissatisfied on some action or a decision taken by the employer or the colleagues.
METHODS OF FINDING GRIEVANCE
i. Organisation can conduct an exit interview of the persons.
ii. Some organisations follow an open door policy where the aggrieved employee can walk any time in to office of the authorities and air their grievances.
iii. Some organisations have suggestion box
iv. Surveys amongst the employees can be conducted to find out the opinions and perceptions about the various policies and practices .
Q76] EXPLAIN THE GUIDELINES FOR HANDLING GRIEVANCES
* Constitute a grievance redressal cell
* All grievances should be considered important
* Aggrieved party should be met in person and should be allowed to express his grievance fully.
* A time frame should be laid for resolving the grievance.
* Ensure that all procedural formalities relating to grievance redressal have been complied with.
* All grievances should be put forth in writing.
* Understand the redressal which the aggrieved employee is seeking.
* Study the law pertaining to the grievance.
* Create a positive environment where the aggrieved employee may not hesitate to air his grievance.
Have an open door policy to enable the aggrieved employee to air his grievance.
* Have suggestion boxes at different places.
* All facts pertaining to the issue should be gathered in order to understand the implications of the grievance.
Q77] EXPLAIN THE GRIEVANCE REDRESSAL PROCEDURE
1. Present Grievance verbally –the aggrieved employee should present his case verbally to the person appointed by the management. A decision must be taken within 48 hours.
2. Submit to Department Head-if the concerned appointed person does not answer in stipulated time or if the aggrieved person is unsatisfied with the decision the aggrieved person can approach departmental head who is suppose to answer within three days.
3. Grievance Committee-on getting an unsatisfactory response from departmental head the aggrieved person can approach grievance committee which has to communicate its recommendation within three days.
4. Appeal to Management- Aggrieved person when unsatisfied with the grievance committee’s decision can file a revision petition to the management. The management is expected to redress the issue within seven days.
5. Voluntary Arbitrator-The grievance may subsequently be referred to voluntary arbitrator if the aggrieved party is not satisfied with the decision of the management.
CURRENT ISSUES IN HRM
A.HUMAN RESOURCE ACCOUNTING
Q78] WHAT IS HUMAN RESOURCE ACCOUNTING? EXPLAIN ITS BENEFITS
Human resource accounting involves quantifying the human resource in monetary terms and including it in the company's assets.
BENEFITS OF HUMAN RESOURCE ACCOUNTING
1. Knowing impact .
2. Analysing corporate strategies
3. Changes attitude of management
4. Proper investment – return analysis
5. Better utilisation of resource .
6. Fixing wages
7. Prevent loss of skilled labour
8. Better indicator
B. HUMAN RESOURCE AUDIT
Q79] WHAT IS HUMAN RESOURCE AUDIT?EXPLAIN ITS SCOPE
. Human resource audit involves verification of the various human relation practices, policies and a programme adopted by the company.
Scope of human resource audit
1. All levels
2. Policy formulation
3. Policy communication
4. Recruitment and selection
5. Human resource development
7. Research & innovation .
8. Performance evaluation-
9. Administrative issues.
10. Organisational structure and hierarchy
11. Finalising wage structure.
C. GROUP DYNAMICS
Q80] WHAT IS GROUP DYNAMICS?EXPLAIN ITS SIGNIFICANCE.
Group dynamics refer to the ways in which people interact and relate to one-another in a group situation. Group dynamics are basically moral or physical forces affecting behaviour of members in a group.
Significance of group dynamics-
1. Facilitate group survival.
2. Simplify role expectations
3. Protect self-images.
4. Express key group values.
5. Enhance the group's unique identity.
6. Increase productivity.
7. Emotional security-.
8. Improved coordination-.
Q81] WHAT IS TEAM BUILDING?EXPLAIN ITS SIGNIFICANCE
Team building refers to the process of establishing and developing a greater sense of cooperation and trust between team members. Interactive exercises, team assessments, and group discussions enable groups to develop this greater sense of teamwork.
Significance of Team Building
1. Improving communication.
2. Improving working conditions.
4. Getting to know each other.
5. Goal setting.
6. Developing self-regulation.
7. Identifying latent talent.
8. Optimum utilisation of resources.
9. Improving team.
10. Practicing effective collaboration.
D. EMOTIONAL QUOTIENT OR EMOTIONAL INTELLIGENCE
Q82] WHAT IS EMOTIONAL INTELLIGENCE?STATE ITS DIMENSIONS AND ITS IMPORTANCE
According to Daniel Goleman manager’s effectiveness in a corporation depends on his ability to manage his emotions at the workplace and calmly deal with stressful situation at the work place.
DIMENSIONS OF EQ-
* Self awareness- Developing self-awareness can help us to recognise when we are stressed or under pressure.
* Self regulation- Emotional self-regulation, also known as Emotion Regulation or simply ER, is being able to properly regulate one's emotions.
* Motivation-motivation includes all internal and external factors which induces a person to take a particular course of action.
* Empathy-manager should sympathise and empathise with the employees..
* Social skills-Negotiating, inspiring, guiding, cooperating etc are the various social skills that should be available with manager.
2) Act as mentor.
4) Balanced decision-.
5) Increase effectiveness.
Q83] WHAT IS MENTORING? EXPLAIN ITS STEPS
Mentor is an experienced and trusted adviser. Therefore mentoring is guidance given by a senior in the organisation to a new recruit.
Steps in mentoring
Initiation means commencement. In this stage the mentor and the mentee meet. Here both try to know and understand each other..
Progression involves progress or development. In this stage the relation starts crystallising weekly; monthly meetings are held between mentor and mentee. The actual issues faced by the mentee in the organisation are discussed.
There is close integration in the ties between the mentor and mentee. Along with the professional issues personal issues may also be discussed between mentor and mentee. The mentor tries to use his skill and experience to solve the issues between mentor and mentee.
Feedback is then crystallised in to a plan of action. Various steps and measures can be suggested for corrective action.
F. CAREER PLANNING
Q84] WHAT IS CAREER PLANNING?EXPLAIN ITS FEATURES.
Career planning involves deciding on the career goals of the employees and the route to achieve those career goals.
* Career planning of the employee is supplemented by the organisation.
* It is continuous and for long term, where goals of the individuals are harmonised with the goals of the organisation.
* The objective of career planning is to ensure not only succession in the organisation but also to ensure that the skills of all the employees are utilised to the optimum extent.
* Career planning is time consuming and needs lot of foresight and imagination.
* The goals, aptitude and the capacity of the individual are kept in mind before planning the career.
* The organisation tries to create a conducive environment to help employees plan their careers properly.
* Career planning is an integral part of human resource planning.
* There are certain steps that have to followed while planning the career .The steps would generally involve the following-
I. Identifying the aptitude and the career goals of the employees.
II. Finding out the career growth opportunities available to each and every employee in the organisation.
III. Trying to match individual aspirations with career growth opportunities available with the organisation.
IV. Monitoring the career growth plans implemented.
V. Modifying the career growth plans in case of mismatch.
Q85] WHAT IS CAREER DEVELOPMENT?EXPLAIN THE IMPORTANCE OF CAREER PLANNING AND DEVELOPMENT
Career development is activities and actions undertaken primarily by an employee and supported by management to achieve individual career goals.
IMPORTANCE OF CAREER PLANNING & DEVELOPMENT
1. Identifying career opportunities-.
2. Fulfilling potential.
3. Better image-.
4. Less labour turnover-.
5. Improve morale.
6. Forming teams-.
7. Human resource planning.
8. Facilitates growth.
Q86] WHAT IS SUCCESSION PLANNING? EXPLAIN ITS NEED
Succession planning can be defined as an ongoing process of systematically identifying, assessing and developing organisational leadership to enhance performance. In simple words it involves planning about the likely successors of the organisation.
Need for succession planning
* It ensures continuity in company operations.
* Employees feel relatively secured as they get a reasonably good idea about the way company is likely to be managed in future.
* It gives likely successor time to devise a plan for the future growth of the organisation.
* Prospective business leaders can be groomed properly in the required area.
* It helps in facing the competition effectively.
* It ensures that the resources are not wasted during intervening period till the successor is appointed.
* It reduces chaos and uncertainty which may arise due to the term of the existing management expiring or if there is a mass exodus due to retirement.
Q87] WHAT IS EMPLOYEE EMPOWERMENT?EXPLAIN ITS IMPORTANCE
Empower means to authorise or give power to; therefore employee empowerment involves giving power or authority to employees.
Importance/significance of employee empowerment
I. Improves morale.
II. Quick decision making
III. Better utilisations of human resources-.
IV. Concentrate on important issues.
V. Less labour turnover.
VI. Provides confidence.
VII. Fixing rewards.
Q88] WHAT IS EMPLOYEE PATICIPATION?EXPLAIN ITS SIGNIFICANCE
Participation is contribution in the process of decision making and implementing. This participation is emotional and physical in nature.
Significance/Importance of workers’ participation
1. Realistic suggestion.
2. Improves morale.
3. Facilitates monitoring.
4. Optimum utilisation of resources.
6. Less resistance.
G.EMERGING CHALLENGES IN HRM
Q89] WHAT ARE THE EMERGING CHALLENGES IN HRM?
1) HRM have to select people whom they think can be effectively trained to work under different environment and culture as organisations nowadays have to operate in many countries.
2) Attrition rate is on the rise with around 20-25% of the people leaving the job every year.
3) Keeping the morale of the employees high is becoming a big challenge since the companies keep on restructuring their operations which is likely to displace many people of their jobs.
4) Labour laws of different countries vary. The HR department has to acquaint themselves with these laws so that labour variation does not take place.
5) Many women are now joining the workforce. It is necessary to have a cell which will look in to the issues pertaining to women..
6) Stress level is very high amongst the employees nowadays as they are often faced with deadlines, targets etc.HR department has to undertake continuous counselling to reduce this stress.
7) Technological changes are taking place very fast. The skills of the employees have to be upgraded continuously.
8) People employed may be from different countries. It is necessary to create conditions which are conducive for them to work.
9) Many organisations as a part of corporate social responsibility are employing people having different abilities. .
10) It is necessary to look after the career development of employees..
11) Many companies in order to be lean and thin are retrenching people by offering them golden hand shake.
12) Nowadays in order to retain talented employees many organisations are developing flexi compensation plans where the employees are given an option to select any plan out of the many plans offered.
13) Compensation to be offered to the CEOs is also an issue which can create controversies..
14) Performance appraisal of the employees has to be undertaken continuously..
15) For recruitment, a transfer, promotions etc. criteria has to be laid down.HR department has to ensure that these criteria are fair, transparent and easy to implement.
16) Handling layoffs due to outsourcing is not easy and needs proper counselling which HR department has to undertake.
H.MANAGING WORKFORCE DIVERSITY
Q90] HOW CAN WORKFORCE DIVERSITY BE MANAGED? WHAT ARE THE CHALLENGES WHICH AN ORGANISATION FACES WHILE DOING SO?
Diversity in the workforce can arise due to various factors such as age, education, culture, religion, region etc. Furthermore in India there are reservations on the basis of caste, sports etc.
Diversity can be managed by resorting to the following.
* All sections of the groups should have a representative in managing the affairs of the organisation.
* Employees should be sensitised with the expectations and requirements of other sections.
* Flexi timing can be allowed especially to women staff members in order to balance professional and personal responsibilities.
* Discrimination on the basis of caste, creed, religion etc should not be allowed.
* Employees who have special skill should be encouraged.
* Diversity can bring in lot of creativity. The manager should encourage this creativity
* Providing continuous training to employees to make them aware of the changing needs and expectations of different groups.
* Differently able persons need different facilities in the organisation in order to enable them to operate .These facilities should be provided.
Challenges faced by the company due to diversity
* Framing policies for the organisation becomes difficult as different groups may be having different expectations.
* The organisation has to be culturally sensitive as a particular action, decisions etc. may not be perceived in the same manner by different groups in the organisation.
* Discrimination on the basis of caste creed, religion etc. may not be resorted to.
* Employee empowerment may not be used as a tool to promote interest of a particular group.
* Grievance redressal cell should represent different sections of the society.
* Women development cell should be constituted which would look in to issues of women. This cell is important as the number of women at the work place is increasing every day.
* Diversity brings lot of variety, however if handled properly can bring in lot of creativity.
* Reservations if any to any segment of the society should be adhered to.
* Attitudes, goals, approach etc of seniors and junior may vary leading to conflicts.
Q91] WHAT IS DOWNSIZING? EXPLAIN THE ROLE OF HUMAN RESOUCE IN DOWNSIZING?
Downsizing involves reducing the size of the organisation. In order to survive in this competitive environment the organisation is expected to reduce the cost of operations.
Role Of Human Resource In Downsizing
* Human relations should lay down guidelines for the employees to be retrenched.
* The retrenchment policy should properly be communicated to the employees who are to be retrenched.
* Human resource is expected to give management inputs about severance package to the employees who are to be retrenched after discussing with the trade union.
* The need for downsizing should be properly explained to the employees by the human resource department as it is likely to have effect on the morale of the employees.
* The HR department should study the procedures followed, severance packages offered etc. of other competing firms which have resorted to downsizing.
* HR department should ensure that severance package is immediately made available to the retrenched employees so that they do not face financial problems post retirement.
* HR department should undertake training programs to harp on the skills of remaining employees post downsizing as the responsibilities and the work is likely to change.
* HR department can have counselling sessions for those who are likely to be retrenched as they are likely to be under tremendous stress..
Q92] WHAT IS OUT SOURCING?EXPLAIN ITS BENEFITS AND LIMITATIONS.
Outsourcing refers to a company that contract with another company to provide services that might otherwise be performed by in-house employees
Benefits of Outsourcing:
1. Cost savings
2. Focus on Core Business.
3. Improve quality.
4. Completion of work on time.
5. Access to talent.
6. Outsourcer acts as a catalyst for change in the concern country.
7. Enhance capacity for innovation.[
9. Less Tax .
10. Manage short term increase.
Limitations of outsourcing
2] Lowers Productivity.
3] Security issues.
4] Labour turnover at outsourcers.
5] Less control.
6] Low motivation.
k) SAFETY AND SECURITY MANAGEMENT
Q93] WHAT IS SAFETY AND SECURITY MANAGEMENT?EXPLAIN ITS IMPORTANCE
Safety and security management system involves creating a favourable business environment that attracts and retains tenants, customers, and visitors. It is accompanied by strong emergency preparedness planning, a staff of highly trained security officers, and a state-of-the-art command-and-control center that serves as a communication hub for the entire property.
1. Create confidence amongst employees-.
2. Less casualty.
3. More safety-.
4. Data security.,
CASE STUDY-IN BRIEF
OBJECTIVES OF PRESENTATION–TO FIND
• WHAT ARE CASE STUDIES-
• HOW TO USE THEM IN CLASS ROOM
• WHAT SHOULD STUDENT DO TO PREPARE IN CLASS
• WHAT IS EXPECTED FROM STUDENT DURING CASE DISCUSSION
• HOW STUDENT SHOULD BE EVALUATED
• ROLE OF TEACHER
• WHAT SKILLS ARE DEVELOPED
• BENEFITS OF CASE STUDY
• A case is-
- A description of an actual situation
- Involves decision making, an opportunity or a problem or issue faced by organisation
- Role of student should be of decision maker
- No standard correct answer- however logical explanation necessary
• CASELETS-few paragraphs to 1-2 pages
• SHORT CASES-4-6 pages
• CASE STUDIES-above 6 pages
DIFFERENT KIND OF INFORMATION IN A CASE
• Facts-verifiable from different sources
• Inferences-individual judgment of situation
• Assumptions-which cannot be verified
EMPHASIS SHOULD BE ON FACTS
* Preparation for case discussion by students
* Read case thoroughly
* Become familiar with facts
* Know- who, what, where, why and how
* Understand main protagonists(lead character) in the case study
TEACHER’S AND STUDENT’S ROLE DURING DISCUSSION
Prepares case and literature
Prepares individually or in a group
Participates and raises questions
Compares analysis with others
STAGES IN CASE ANALYSIS PROCESS-EXPECTATION FROM STUDENT
* Gaining familiarity with the case situation
* Understanding what is expected
* Identifying problems/issues
* Conducting analysis
* Making diagnosis
EVALUATING STUDENTS’ PERFORMANCE-CRITERIA
• Check logical flow
• Finding how content, language and presentation has been structured
• Quality of analysis
SKILLS DEVELOPED BY CASE METHOD
* Qualitative and quantitative analytical skills-
* Problem identification
* Data handling
* Critical thinking
* Decision making skills
* Implementation skills
* Oral, debate skills
* Interpersonal skills
* Time management skills
* Creative skills
* Written communication skills
BENEFITS FROM CASE METHOD
• Learn by doing
• Increase ability to ask right questions
• Identify and understand underlying problems
• Expose students to wide range of industries, organisations, functions and responsibility
• Strengthens students grasp of management theory
• Learn to take decisions based on insufficient information
• Learn to deal with different viewpoint