Tag: Affective

  • What are the major factors affecting Production Process analysis Decisions?

    What are the major factors affecting Production Process analysis Decisions?

    The major factors affecting Production Process analysis Decisions is explaining in the 6 points of; 1) Nature of product/service demand, 2) Degree of Vertical Integration, 3) Product/Service and Volume Flexibility, 4) Degree of Automation, 5) Level of product/service quality, and 6) Degree of Customer Contact. Among the factors affecting production process analysis are the nature of product/service demand, degree of vertical integration, product/service and volume flexibility, degree of automation, level of product/service quality, and degree of customer contact.

    Here are the answers – What are the major factors affecting Production Process analysis Decisions? Discussion.

    What is process analysis? Process Analysis can understand as the rational breakdown of the production process into different phases, that turns input into the output. It refers to the full-fledged analysis of the business process. Which incorporates a series of logically linked routine activities. That uses the resources of the organization, to transform an object, to achieve and maintain the process excellence. The following questions and answer – What are the major factors affecting Production Process analysis Decisions? below are;

    Nature of product/service demand:

    Production systems exist to produce products/services of the kind that customers want, when they want them, and at a cost that allows the firm to be profitable. The place to start in analyzing production systems, therefore, is the demand for products and services. Of particular importance are the patterns of demand.

    Patterns of Product/Service Demand;

    First, production processes must have adequate capacity to produce the volume of the products/services that customers want. Forecasting methods help to estimate customer demand for products/services. These forecasts can then use to estimate the amount of production capacity needed in each future period. Seasonality, growth trends, and other patterns of demand, therefore, are important determinants of the production capacity necessary to satisfy demand.

    Seasonality is an important consideration in planning the appropriate type of production process for a product/service. For example, if a product’s demand exhibits great variation from season to season, the production processes and inventory policies must design to allow the delivery of sufficient quantities of products or services during peak demand seasons, and yet still be able to produce products economically in slack demand seasons.

    Similarly, the growth trends of product/service demand have important implications for analyzing production processes. For example, if a service expects to show strong sales growth over five years, provision must make for designing production processes whose capacity can expand to keep pace with demand.

    Some types of processes can more easily expand than others, and the choice of the type of production process will affect by the forecast growth trends of product/service demand. As with seasonality and growth patterns, random fluctuations and cyclical patterns will also have an impact on production process designs. Also, the overall volume of the demand and the prices that can charge for the products/services will affect the type and characteristics of the production processes.

    Degree of Vertical Integration:

    One of the first issues to resolve when developing production processing designs is determining how much of a product/service the company will produce and how much will buy from suppliers. Vertical integration is the amount of the production and distribution chain, from suppliers of components to the delivery of finished products/ services to customers, that is brought under the ownership of a company.

    There are two types of vertical integration, forward and backward. Forward integration means expanding ownership of the production and distribution chain forward towards the market. Backward integration means expanding ownership of the production and distribution chain backward towards the sources of supply.

    Generally, there are three stages of production: component, subassembly, and final assembly.

    For most manufacturers of finished products-such as Ford, Telco, and Maruti that assemble automobiles-the major issue of vertical integration is whether they should enter into supply contracts with suppliers of subassemblies and components, or backward integrate to produce subassemblies and components themselves. On the other hand, firms that are primarily subassembly suppliers. The major issues of vertical integration are whether they should forward integrate and assemble and market their finished products. In either case, the issue of whether to integrate vertically brings both opportunities and risks.

    The amount of vertical integration that is right for a particular firm in one industry could be inappropriate for another firm in a different industry. For companies that would forward integrate towards the market. The predominant factor in such decisions is the ability of the company to market the products.

    It should be clear from points that the decision whether to make products (backward integrate by bringing production of subassemblies and components in-house) or buy them from suppliers is not simple.

    The points of Contention in a Decision Situation:
    • Cost of making or producing subassemblies or components in-house versus buying them from suppliers.
    • The amount of investment necessary to produce subassemblies or components in- house.
    • The availability of funds to support the necessary expansion of production capacity.
    • Effect on return on assets if the production of subassemblies or components undertakes.
    • The present technological capabilities of the company to produce subassemblies or components.
    • The need to develop technological capabilities to produce subassemblies or components to secure future competitive position.
    • Availability of excellent suppliers who are willing to enter into long-term supply relationships, particularly those who can provide high-quality subassemblies and components at low prices. Who are well enough funded to ensure continuity of an adequate supply? And, who can work with the company to continuously improve product and component designs and manufacturing processes?
    • Amount of market share held by the company.

    Product/Service and Volume Flexibility:

    Flexibility means being able to respond fast to customer’s needs. Flexibility is of two forms, product/ service flexibility, and volume flexibility. Product/service flexibility means the ability of the production system to quickly change from producing one product/ service to producing another. Volume flexibility means the ability to quickly increase or reduce the volume of products/services produced. Both of these forms of the flexibility of production systems are determined in large part when the production processes are designed.

    Product/service flexibility requires when business strategies call for many custom-designed products/services each with rather small volumes or when new products must introduce quickly. In such cases, production processes must ordinarily plan and design to include general-purpose equipment and versatile employees. Who can easily change from one product/service to another? The concept of a flexible workforce involves training and cross-training workers in many types of jobs. Although training costs increase, the payoff is work that is perhaps more interesting for workers and a workforce. That can quickly shift from job to job and other products/services with little loss in productivity.

    Volume flexibility:

    Volume flexibility needs when demand is subject to peaks and valleys. And, when it is impractical to inventory products in anticipation of customer demand. In these cases, production processes must design with production capacities that can be quickly and inexpensively expand and contract. Manufacturing operations are ordinarily capital-intensive, which simply means that the predominant resource used is capital rather than labor.

    Thus in the presence of variable product demand, capital equipment in production processes must design with production capacities that are near the peak levels of demand. This translates into either increased capital investment in buildings and equipment or the use of outside subcontractors and some provision for quickly expanding and contracting the workforce. Over time, layoffs or the recall of workers from layoffs, use of temporary or part-time workers on short notice, and permanent overstaffing are options commonly used to achieve the volume flexibility of employees.

    Degree of Automation:

    A key issue in analyzing production processes is determining how much automation to integrate into the production system. Because automated equipment is very expensive and managing the integration of automation into existing or new operations is difficult, automation projects are not undertaken lightly.

    Historically, the discussion of how much automation to use in factories and services has centered on the cost savings from substituting machine effort for labor. Today, automation affects far more than the costs of production; in fact, for many companies automation is seen as basic to their ability to become or remain competitive.

    Automation can reduce labor and related costs, but in many applications. The huge investment required by automation projects cannot justify labor savings alone. Increasingly, it is the other benefits of automation that motivate companies to invest in automation. The need to quickly produce products/services of high quality. And, the ability to quickly change production to other products/services are the key factors that support many of to day’s automation projects.

    The degree of automation appropriate for the production of a product/service must drive by the operations strategies of the firm. If those strategies call for high quality, product flexibility, and fast production of products/services. Automation can be an important element of operations strategy.

    Level of product/service quality:

    In today’s competitive environment, product quality has become the chief weapon in the battle for world markets of mass-produced products. The choice of the production process is certainly affected by the desired level of product quality. At every step of process design, product quality enters into most of the major decisions.

    For many firms, the issue of how much product quality required is directly related to the degree of automation-integrated into the production process. Automated machines can produce products of incredible uniformity. And with proper management, maintenance, and attention, products of superior quality can produce with automated production processes at low production costs.

    What are the major factors affecting Production Process analysis Decisions
    What are the major factors affecting Production Process analysis Decisions? #Pixabay.

    Degree of Customer Contact:

    For most services and some manufacturers, customers are an active part of the processes of producing and delivering products and services. The extent to which customers become involved in the production systems has important implications for the production processes. There is a wide range of degrees of the interaction of customers with the production system.

    For example, at one extreme are barbershops, hair salons, and medical clinics. Here the customer becomes an active part of the production, and the service is performed on the customer. In these cases, the customer is the central focus of the design of production processes. Every element of the equipment, employee training, and buildings must design with the customer in mind.

    Also, courteous attention and comfortable surroundings must provide to receive, hold, process, and release customers. In such systems, service quality, speed of performing the service, and reduced costs can improve with automated equipment. As long as the fundamental nature of the service does not materially affect.

    At the other extreme of customer involvement, the design of production processes affects little because of interaction with customers. Examples of this type of service are fast-food restaurants or backroom operations at banks. In these operations, services are highly standardized, the production volume of services is high, and cost, price, and speed of delivery tend to be predominant in operations strategies.

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  • What are Factors affecting Plant location decisions?

    What are Factors affecting Plant location decisions?

    The factors affecting Plant location decisions; Decisions regarding selecting a location need a balance of several factors. Hardly there is any location which can be ideal or perfect. One has to strike a balance between various factors affecting plant location. Some factors are crucial in deciding the location of the plant while some other factors are less important.

    Here are explains; What are Factors affecting Plant location decisions?

    In taking the decision of the location of the plant, due regard should give to the minimization of the cost of production & distribution and maximization of profit. The decision of plant location should base on nine M’s, namely money, material, manpower, market, motive power, management, machinery, means of communication and momentum to an early start. Also, want to know what is the five M’s in Business?

    What are Factors affecting Plant location decisions
    What are Factors affecting Plant location decisions? #Pixabay.

    The following are some of the important factors which the management must carefully bear in mind in selecting an optimum site for the plant – 15 factors affecting plant location decisions below are;

    Nearness to Raw Material:

    It will reduce the cost of transporting raw material from the vendor’s end to the plant. Especially those plants which consume raw material in bulk, or the raw material is heavyweight, must locate close to the source of raw material. If the raw materials are perishable, the plant is to locate near the source of the material. This is true of the fruit canning industry.

    Sugar and paper and other industries using weight losing materials are also located near the point of supply. Industries which depend for their raw materials on other industries tend to locate near such industries e.g. the petrochemicals industries are locating near refineries. Similarly, Thermal Power Stations are situated near coal mines.

    Sugar Factory Worker
    Sugar Factory Worker #Pixabay.

    In case the raw material is imported, the unit must establish near the port. When a company uses a number of raw materials and their sources are at a different location, the ideal site for the plant shall be a place where the transportation costs of various raw materials are the minimum.

    Apart from these considerations, a promoter must view the supply of raw materials from the following angles also:

    • If the supply of raw materials is linked with finance, it must be set up where the raw material is available at reduced or concessional rates.
    • Reliability and continuity of the source of supply, and.
    • The security of means of transport.

    Nearness to Markets:

    It reduces the cost of transportation as well as the chances of the finished products getting damaged and spoiled in the way. Moreover, a plant being near to the market can catch a big share of the market and can render quick service to the customers. Industries producing perishable or fragile commodities are also attracted to the market because of savings in time and transportation costs. Industrial units have a tendency to disperse if they find a new market for their products.

    Availability of Labor:

    Stable labor force, of the right kind, of adequate size (number) and at reasonable rates with its proper attitude towards work are a few factors which govern plant location to a major extent. The purpose of the management is to face fewer boycotts, strikes or lockouts and to achieve lower labor cost per unit of production.

    Availability of Fuel and Power:

    Because of the widespread electric power, in most cases, fuel (coal, oil, etc.) has not remained a deciding factor for plant location. It is, of course, essential that electric power should remain available continuously, in proper quantity and at reasonable rates.

    Availability of Water:

    Water is used for processing, as in paper and chemical industries, and is also requires for drinking and sanitary purposes. Depending upon the nature of the plant, water should be available in adequate quantity and should be of proper quality (clean and pure). A chemical, fertilizer, thermal power station, etc. should not be set-up at a location which IS famous for water shortage.

    Climatic Conditions:

    Climate conditions also influence the location decision. Some industries need a special type of climate to run the unit effectively. For example, the cotton industry requires a humid climate and therefore it is mainly localizing at Bombay, Ahmedabad, etc.

    But the scientific development and new inventions have lowered down the importance of the factor. So due to the development of artificial humidification, the cotton textile industry can now start in any region of the county. The question of climate is more important for an agricultural product like tea, coffee, rubber, cotton, etc. even today.

    Government Policy:

    Certain states give aid as loans, machinery, built-up sheds, etc. to attract industrialists. In a planned economy, the Government plays an important role in the location of industry. In India Government follows the policy of balanced regional growth of the country which is very important from the point of view of defense and social problems like a slum, the disparity of income & wealth and optimum use of resources.

    On, the order to implement this policy, the Government offers several incentives to entrepreneurs to locate their industrial units in backward regions or no-industry regions. It offers tax concessions or loan facilities or factory sheds at cheaper rates. Sometimes the Government announces certain disincentives to industries located at a certain place. Thus Government policy plays an important role in the location of industry.

    Land:

    The shape of the site, cost, drainage, the probability of floods, earthquakes (from the past history), etc. influence the selection of plant location.

    Community Attitude:

    The success of Industry depends very much on the attitude of local people and whether they want to work or not.

    Security:

    Considerations like law and order situation, political stability and safety also influence the location decision. No entrepreneur will like to start the industry at a place which is not safe and where there are law and order disturbances off and on.

    Transport Facilities:

    A lot of money is spent both in transporting the raw material and the finish goods. Depending upon the size of raw material and finish goods, a suitable method of transportation like roads, rail, water or air is selecting and accordingly the plant location is deciding.

    Transport Truck
    Transport Truck #Pixabay.

    Transportation costs depend mainly on the weight carried and the distance to cover. In some industries, the weight of the raw material is much higher than that of the finished product. e.g. in a weight loss industry like sugar manufacturing, four to five tons of sugarcanes have to carry per ton of sugar.

    Similarly, in Iron and Steel Industry two tons of iron is requiring to produce one ton of pig iron. Therefore the transport costs can save by locating near the source of materials. In the case of weight gaining industry, location near the market may result in savings in transportation costs. e.g. in soft drink, the weight of the finished product is higher than raw material.

    The momentum of an early start:

    Another factor of some importance has been the momentum of an early start. Some places got localized only because one or two units of that industry start production there. With the passage of time, these places gained importance and attracted other units of the industry. As a place gains importance, certain facilities usually beg in to develop.

    For example,

    • Transport facilities are developing because railways and other agencies find it economical to serve those centers.
    • Specialized firms start to take up repair and maintenance job for such units.
    • Banking facilities are made available, and.
    • Labor possessing various skills are attracting there. These facilities further attract more industries.

    Personal Factors:

    Personal preferences and prejudices of an entrepreneur also play an important role in the choice of location. Economic consideration does not weight much. For instance, Mr. Ford started cars manufacturing motor in Detroit because it was his home town. It must, however, recognize that such location cannot endure unless they prove to be economical enough in the long run.

    Communication Facilities:

    Every business firm requires every type of business information regarding the position of labor, market, raw materials, and finished goods and this facility is available only when communication facilities are there. As communications facilities are not adequately available in rural areas, industries are very much reluctant to start their business there.

    What do we think about Plant location decision - with Different Situations - Power Station
    What do we think about Plant location decision? in Different Situations – Power Station #Pixabay.

    Other Considerations:

    There are certainly other considerations that influence the location decisions which are:

    • Presence of related Industry.
    • Existence of hospitals, marketing centers, schools, banks, post office, clubs, etc.
    • Local bye-laws, taxes, building ordinances, etc.
    • Facility for expansion.
    • New enterprise owned or operated by a single group of companies should be so located. That its work can integrate with the work of the associated establishments.
    • Industries like nuclear power stations, processes explosive in nature. The chemical process likely to pollute the atmosphere should locate in remote areas, and.
    • Historical factors etc.
  • Factors Affecting of Price Determination with Steps and Process

    Factors Affecting of Price Determination with Steps and Process

    What is Price Determination? In Economics Price Determination is the interaction between the demand and supply in the free market that is used to determine the costs for a good or service. Basically Meaning is Interaction of the free market forces of demand and supply to establish the general level of price for a good or service in Market. Also learn, Factors Affecting of Price Determination with Steps and Process.

    In the production of Marketing is also important of Factors Affecting of Price Determination with Steps and Process.

    The Factors Affecting Price Determination of Product

    Main factors affecting the price determination of product are:

    Product Cost:

    The most important factor affecting the price of a product is its cost. Product cost refers to the total of fixed costs, variable costs and semi-variable costs incurred during the production, distribution, and selling of the product. Fixed costs are those costs which remain fixed at all the levels of production or sales.

    For example, rent of the building, salary, etc. Variable costs refer to the costs which are directly related to the levels of production or sales. For example, costs of raw material, labor costs etc. Semi-variable costs are those which change with the level of activity but not in direct proportion. For example, a fixed salary of Rs 12,000 + up to 6% graded commission on an increase in the volume of sales.

    The price of a commodity is determined on the basis of the total cost. So sometimes, while entering a new market or launching a new product, the business firm has to keep its price below the cost level but in the long rim, it is necessary for a firm to cover more than its total cost if it wants to survive amidst cut-throat competition.

    The Utility and Demand:

    Usually, consumers demand more units of a product when its price is low and vice versa. However, when the demand for a product is elastic, little variation in the price may result in large changes in quantity demanded. In the case of inelastic demand, a change in the prices does not affect the demand significantly. Thus, a firm can charge higher profits in the case of inelastic demand. Moreover, the buyer is ready to pay up to that point where he perceives utility from the product to be at least equal to the price paid. Thus, both utility and demand for a product affect its price.

    The extent of Competition in the Market:

    The next important factor affecting the price of a product is the nature and degree of competition in the market. A firm can fix any price for its product if the degree of competition is low. However, when the level of competition is very high, the price of a product is determined on the basis of the price of competitors’ products, their features, and quality etc. For example, the MRF Tyre company cannot fix the prices of its Tyres without considering the prices of Bridgestone Tyre Company, the Goodyear Tyre company etc.

    Government and Legal Regulations:

    The firms which have the monopoly in the market, usually charge the high price for their products. In order to protect the interest of the public, the government intervenes and regulates the prices of the commodities for this purpose; it declares some products as essential products for example. Life-saving drugs etc.

    Pricing Objectives:

    Another important factor, affecting the price of a product or service is the pricing objectives.

    Following are the pricing objectives of any business:

    • Profit Maximisation: Usually, the objective of any business is to maximize the profit. During the short run, a firm can earn the maximum profit by charging the high price. However, during the long run, a firm reduces the price per unit to capture the bigger share of the market and hence earn high profits through increased sales.
    • Obtaining Market Share Leadership: If the firm’s objective is to obtain a big market share, it keeps the price per unit low so that there is an increase in sales.
    • Surviving in a Competitive Market: If a firm is not able to face the competition and is finding difficulties in surviving, it may resort to free offer, discount or may try to liquidate its stock even at BOP (Best Obtainable Price).
    • Attaining Product Quality Leadership: Generally, the firm charges higher prices to cover high quality and high cost if it’s backed by the above objective.
    Marketing Methods Used:

    The various marketing methods such as distribution system, quality of salesmen, advertising, type of packaging, customer services, etc. also affect the price of a product. For example, a firm will charge high profit if it is using an expensive material for packing its product.

    The Steps Involved in Price Determination Process.

    The Price decision must take into account all factors affecting both demand price and supply price. The Process of Price Determination. The market price is the price determined by the free play of demand and supply. The market price of a product affects the price paid to the factors of production – rent for land, wages for labor, interest for capital and profit for the enterprise. In fact, price becomes a basic regulator of the entire economic system because it influences the allocation of these resources.

    The pricing decisions must take into account all factors affecting both demand price and supply price. The price determination process involves the following steps:

    • Market Segmentation: On the basis of market opportunity analysis and assessment of firms strengths and weaknesses marketers will find out specific marketing targets in the form of appropriate market segments. Marketers will have the firm decision on  – (a) the type of products to be produced or sold, (b) the kind of service to be rendered, (c) the costs of operations to be estimated, and (d) the types of customers or market segments sought.
    • Estimate of Demand: Marketers will estimate the total demand for the products. It will be based on sales forecast, channel opinions and degree of competition in the market.
    • The Market Share: Marketers will choose a brand image and the desired market share on the basis of competitive reaction. Market planners must know exactly what his rivals are charging. Level of competitive pricing enables the firm to price above, below, or at par and such a decision is easier in many cases. The higher initial price may be preferred if you expect a smaller market share, whereas if you expect of much larger market share, you prefer the lower price.
    • The Marketing Mix: The overall marketing strategy is based on an integrated approach to all the elements of the marketing mix. It covers – (1) product-market strategy, (2) promotion strategy, (3) pricing strategy, and (4) distribution strategy. All elements of the marketing mix are essential to the overall success of the firm. Price is the strategic element of the marketing mix as it influences the quality perception and enables product positioning.
    • Estimate of Costs: Straight cost-plus pricing is not desirable always as it is not sensitive to demand. Marketing must take into account all relevant costs as well as price elasticity of demand, if necessary, through market tests.
    • Pricing Policies: Price policies provide the general framework within which managerial decisions are made on pricing. Pricing policies are guidelines to carry out pricing strategy. Pricing policy may desire to meet competition or we may have pricing above or below the competition. We may have fixed or flexible pricing policies. Pricing policies must change and adapt themselves to the changing objectives and changing environment.
    • Pricing Strategies: Pricing policies are general guidelines for recurrent and routine issues in marketing. The strategy is a plan of action (a movement or counter movement) to adjust with changing conditions of the marketplace. New and unanticipated developments may occur, e.g., price cut by rivals, government regulations economic recession, fluctuations in the purchasing power of consumers, changes in consumer demand, and so on. Situations like these demand special attention and relevant adjustments in our pricing policies and procedures.
    • The Price Structure: Developing the price structure on the basis of pricing policies strategies is the final step in the price determination process.
    The Factors Affecting of Price Determination with Steps and Process - ilearnlot
    Factors Affecting of Price Determination with Steps and Process. Image Credit from ilearnlot.com.
  • Definition Importance Affected Factors of Manpower Planning

    Definition Importance Affected Factors of Manpower Planning

    Factors of Manpower Planning with their Definition and Importance; According to Gorden MacBeath, manpower planning involves two stages. The first stage is concerned with the detailed; “Planning of manpower requirements for all types and levels of employees throughout the plan”; and, the second stage is concerned with; “Planning of manpower supplies to provide the organization with the right types of people from all sources to meet the planned requirements”. Also learn, What is the Process of Manpower Planning?

    Explaining, Definition, Importance, and Affected Factors of Manpower Planning!

    According to Vetter, the process by which management determines how the organization should move from its current manpower position to its desired manpower position. Through planning, management strives to have the right number and the right kinds of people, at the right places, at the right time, doing things that result in both the organization and the individual receiving the maximum long-run benefit.

    Stainer defines it as a “Strategy for the acquisition, utilization, improvement, and preservation of an enterprise’s human resources. It relates to establishing job specifications or the quantitative requirements of jobs determining the number of personnel required and developing sources of manpower”.

    According to Wickstrom, human resource planning consists of a series of activities, viz:

    1. Forecasting future manpower requirements, either in terms of mathematical projections of trends in the economic environment and development in industry, or in terms of judgmental estimates based upon the specific future plans of a company;  
    2. Making an inventory of present manpower resources and assessing the extent to which these resources are employed optimally;
    3. Anticipating manpower problems by projecting present resources into the future and comparing them with the forecast of requirements to determine their adequacy, both quantitatively and qualitatively; and
    4. Planning the necessary programmes of requirement, selection, training, development, utilization, transfer, promotion, motivation, and compensation to ensure that future manpower requirements are properly met.

    According to Geisler, it is the process—including forecasting, developing, and controlling—by which a firm ensures that it has the right number of people and the right kind of people at the right places at the right time doing work for which they are economically most useful.

    Importance of Manpower Planning!

    1. Key to managerial functions: The four managerial functions, i.e., planning, organizing, directing, and controlling are based on manpower. Human resources help in the implementation of all these managerial activities. Therefore, staffing becomes a key to all managerial functions.

    2. Efficient utilization: Efficient management of personnel becomes an important function in the industrialization world of today. The setting of large-scale enterprises requires the management of large-scale manpower. It can be effectively done through staffing functions.

    3. Motivation: Staffing function not only includes putting the right men on the right job; but it also comprises of motivational programs, i.e., incentive plans to be framed for further participation and employment of employees in a concern. Therefore, all types of incentive plans become an integral part of the staffing functions.

    4. Better human relations: A concern can stabilize itself if human relations develop and are strong. Human relations become strong through effective control, clear communication, effective supervision, and leadership in a concern. Staffing function also looks after training and development of the workforce which leads to co-operation and better human relations.

    5. Higher productivity: Productivity level increases when resources utilizing in the best possible manner; higher productivity is a result of minimum wastage of time, money, effort, and energy. This is possible through the staffing and its related activities ( Performance appraisal, training, and development, remuneration).

    Factors Affecting Manpower Planning!

    The exercise is not an easy tube because it imposing by various factors such as; what are the success factors of manpower planning below are :

    1. It suffers from inaccuracy because it is very difficult to forecast long-range requirements of personnel.  
    2. It depends basically on organization planning. Overall planning is itself is a difficult task because of changes in economic conditions, which make long-term it planning difficult.
    3. It is difficult to forecast about the personnel with the organization at a future date. While vacancies caused by retirements can predict accurately other factors like resignation, deaths are difficult to forecast.
    4. Lack of top management support also frustrates those in charge of planning; because, in the absence of top management support, the system does not work properly.
    5. The problem of forecast becomes more occur in the context of key personnel; because their replacement cannot arrange the short period of time.

    Moreover, any system that requires the support of top management and manpower planning is no exception to this.

    Definition Importance and Affected Factors of Manpower Planning - ilearnlot
    Definition, Importance, and Affected Factors of Manpower Planning! Thanks, Also, Photo Credit to pixabay.com/ More free Images!
  • What are the Dimensions of Organizational Climate?

    What are the Dimensions of Organizational Climate?

    There have been many studies on the 10 dimensions of organizational climate. About Organisational Behavior, Such studies have helped us to understand what does influence organizational climate: Likert has proposed 6 dimensions of organizational climate: leadership, motivation, communication, decisions, goals, and control. Also learn, Definition of Organizational Climate! What are the Dimensions of Organizational Climate?

    Explain are 10 Dimensions of Organizational Climate!

    Li-twin and Stringer have proposed seven dimensions of organizational climate: conformity, responsibility, standards, rewards, organizational clarity, warmth and support, and leadership. They have also emphasized the motivational framework of organizational climate. The Concept of Organizational Climate.

    The important dimensions or components which collectively represent the climate of an organization discuss below. with examples explain any 10 dimensions of organizational climate:

    Dominant Orientation:

    Dominant orientation of the organization is an important determinant of climate and it is the major concern of its members.

    If the dominant orientation is to adhere to established rules and regulations, the climate characterizes by control. If the orientation is to produce excellence the climate will characterize by achievement.

    Inter-Personal Relationships:

    The interpersonal relationships in organizations reflect the way informal groups form and operate. The informal groups may benefit the organization also, but in some cases, they may displace the goals of the organization.

    Conflict Management:

    In the organization, there can always be inter-group as well as intra-group conflicts. The organizational climate will depend upon how effectively these conflicts manage.

    If they are managing effectively, there will an atmosphere of cooperation in the organization. If they are not managed properly there will be an atmosphere of distrust and non-cooperation.

    Individual Autonomy:

    If individual employees are given sufficient freedom to work and exercise authority, it will result in efficiency in operations. The autonomy will lighten the burden of higher-level executives.

    Organizational Control System:

    The control system of the organization can be either rigid or flexible. Rigid control will lead to an impersonal or bureaucratic atmosphere in the organization. There will be a minimum scope for self-regulation.

    Organizational Structure:

    The organizational structure serves as the basis of interpersonal relations between superiors and subordinates. It clarifies as to who is responsible to whom and who is to direct whom.

    If there is centralization of authority, the participation in decision-making by the subordinates will very less. On the other hand, if there is decentralization of authority, there will an atmosphere of Participative decision-making.

    Task-Oriented or Relations-Oriented Management:

    The dominant style of managers will also affect the organizational climate. The task-oriented approach means that the leadership style will be autocratic. The employees will have to show results or face punishment, morale will be low in the long run.

    If the managers are relations oriented, the climate will considerate and supportive. There is team spirit in the organization because the needs and aspirations of the workers will give due importance. Explain are Evolution, Elements of an Organizational Climate!

    Rewards and Punishments:

    The system of rewards and punishments is also an important component of organizational climate if the reward system is directly related to performance and productivity, there will be an atmosphere of competition among the employees. Everybody will like to work hard and earn more rewards in the form of promotions and pay rise. If there is Biasedness in the distribution of rewards, the meritorious employees will discourage.

    Communication:

    The communication system of the organization will also affect the organizational climate, The flow of information, its direction, its Dispersement, and its type are all important determinants.

    A proper communication system means that the subordinates are in a position to express their ideas, suggestions, and reactions, otherwise, they will feel frustrated.

    Risk-Taking:

    How members respond to risks and whose help is sought in situations involving risks are important in any organization. If individuals feel free to try out new ideas without any fear they will not hesitate in taking risks. Such an atmosphere will be conducive to innovative ideas.

    The above dimensions or components are not mutually exclusive, they often overlap each other. How these different dimensions operate an organization indicates the underlying philosophy of the management. New Roles of Human Resource Management in Business Development.

  • What is Efficacy of Activated Processes?

    What is Efficacy of Activated Processes?


    Much research has been conducted on the four major psychological processes through which self-beliefs of efficacy affect human functioning.

    Cognitive Processes


    The effects of self-efficacy beliefs on cognitive processes take a variety of forms. Much human behavior, being purposive, is regulated by forethought embodying valued goals. Personal goal setting is influenced by self-appraisal of capabilities. The stronger the perceived self-efficacy, the higher the goal challenges people set for themselves and the firmer is their commitment to them.

    Most courses of action are initially organized in thought. People’s beliefs in their efficacy shape the types of anticipatory scenarios they construct and rehearse. Those who have a high sense of efficacy, visualize success scenarios that provide positive guides and supports for performance. Those who doubt their efficacy, visualize failure scenarios and dwell on the many things that can go wrong. It is difficult to achieve much while fighting self-doubt. A major function of thought is to enable people to predict events and to develop ways to control those that affect their lives. Such skills require effective cognitive processing of information that contains many ambiguities and uncertainties. In learning predictive and regulative rules people must draw on their knowledge to construct options, to weight and integrate predictive factors, to test and revise their judgments against the immediate and distal results of their actions, and to remember which factors they had tested and how well they had worked.

    It requires a strong sense of efficacy to remain task oriented in the face of pressing situational demands, failures and setbacks that have significant repercussions. Indeed, when people are faced with the tasks of managing difficult environmental demands under taxing circumstances, those who are beset by self-doubts about their efficacy become more and more erratic in their analytic thinking, lower their aspirations and the quality of their performance deteriorates. In contrast, those who maintain a resilient sense of efficacy set themselves challenging goals and use good analytic thinking which pays off in performance accomplishments.

    Motivational Processes


    Self-beliefs of efficacy play a key role in the self-regulation of motivation. Most human motivation is cognitively generated. People motivate themselves and guide their actions anticipatorily by the exercise of forethought. They form beliefs about what they can do. They anticipate likely outcomes of prospective actions. They set goals for themselves and plan courses of action designed to realize valued futures.

    There are three different forms of cognitive motivators around which different theories have been built. They include causal attributions, outcome expectancies, and cognized goals. The corresponding theories are attribution theory, expectancy-value theory and goal theory, respectively. Self-efficacy beliefs operate in each of these types of cognitive motivation. Self-efficacy beliefs influence causal attributions. People who regard themselves as highly efficacious attribute their failures to insufficient effort, those who regard themselves as inefficacious attribute their failures to low ability. Causal attributions affect motivation, performance and affective reactions mainly through beliefs of self-efficacy.

    In expectancy-value theory, motivation is regulated by the expectation that a given course of behavior will produce certain outcomes and the value of those outcomes. But people act on their beliefs about what they can do, as well as on their beliefs about the likely outcomes of performance. The motivating influence of outcome expectancies is thus partly governed by self-beliefs of efficacy. There are countless attractive options people do not pursue because they judge they lack the capabilities for them. The predictiveness of expectancy-value theory is enhanced by including the influence of perceived self- efficacy.

    The capacity to exercise self-influence by goal challenges and evaluative reaction to one’s own attainments provides a major cognitive mechanism of motivation. A large body of evidence shows that explicit, challenging goals enhance and sustain motivation. Goals operate largely through self-influence processes rather than regulate motivation and action directly. Motivation based on goal setting involves a cognitive comparison process. By making self-satisfaction conditional on matching adopted goals, people give direction to their behavior and create incentives to persist in their efforts until they fulfill their goals. They seek self-satisfaction from fulfilling valued goals and are prompted to intensify their efforts by discontent with substandard performances.

    Motivation based on goals or personal standards is governed by three types of self-influences. They include self-satisfying and self-dissatisfying reactions to one’s performance, perceived self-efficacy for goal attainment, and readjustment of personal goals based on one’s progress. Self-efficacy beliefs contribute to motivation in several ways: They determine the goals people set for themselves; how much effort they expend; how long they persevere in the face of difficulties; and their resilience to failures. When faced with obstacles and failures people who harbor self-doubts about their capabilities slacken their efforts or give up quickly. Those who have a strong belief in their capabilities exert greater effort when they fail to master the challenge. Strong perseverance contributes to performance accomplishments.

    Affective Processes


    People’s beliefs in their coping capabilities affect how much stress and depression they experience in threatening or difficult situations, as well as their level of motivation. Perceived self-efficacy to exercise control over stressors plays a central role in anxiety arousal. People who believe they can exercise control over threats do not conjure up disturbing thought patterns. But those who believe they cannot manage threats experience high anxiety arousal. They dwell on their coping deficiencies. They view many aspects of their environment as fraught with danger. They magnify the severity of possible threats and worry about things that rarely happen. Through such inefficacious thinking they distress themselves and impair their level of functioning. Perceived coping self-efficacy regulates avoidance behavior as well as anxiety arousal. The stronger the sense of self-efficacy the bolder people are in taking on taxing and threatening activities.

    Anxiety arousal is affected not only by perceived coping efficacy but by perceived efficacy to control disturbing thoughts. The exercise of control over one’s own consciousness is summed up well in the proverb: “You cannot prevent the birds of worry and care from flying over your head. But you can stop them from building a nest in your head.” Perceived self-efficacy to control thought processes is a key factor in regulating thought produced stress and depression. It is not the sheer frequency of disturbing thoughts but the perceived inability to turn them off that is the major source of distress. Both perceived coping self-efficacy and thought control efficacy operate jointly to reduce anxiety and avoidant behavior.

    Social cognitive theory prescribes mastery experiences as the principal means of personality change. Guided mastery is a powerful vehicle for instilling a robust sense of coping efficacy in people whose functioning is seriously impaired by intense apprehension and phobic self-protective reactions. Mastery experiences are structured in ways to build coping skills and instill beliefs that one can exercise control over potential threats. Intractable phobics, of course, are not about to do what they dread. One must, therefore, create an environment so that incapacitated phobics can perform successfully despite themselves. This is achieved by enlisting a variety of performance mastery aids. Feared activities are first modeled to show people how to cope with threats and to disconfirm their worst fears. Coping tasks are broken down into subtasks of easily mastered steps. Performing feared activities together with the therapist further enables phobics to do things they would resist doing by themselves. Another way of overcoming resistance is to use graduated time. Phobics will refuse threatening tasks if they will have to endure stress for a long time. But they will risk them for a short period. As their coping efficacy increases the time they perform the activity is extended. Protective aids and dosing the severity of threats also help to restore and develop a sense of coping efficacy.

    After functioning is fully restored, the mastery aids are withdrawn to verify that coping successes stem from personal efficacy rather than from mastery aids. Self-directed mastery experiences, designed to provide varied confirmatory tests of coping capabilities, are then arranged to strengthen and generalize the sense of coping efficacy. Once people develop a resilient sense of efficacy they can withstand difficulties and adversities without adverse effects.

    Guided mastery treatment achieves widespread psychological changes in a relatively short time. It eliminates phobic behavior and anxiety and biological stress reactions, creates positive attitudes and eradicates phobic ruminations and nightmares. Evidence that achievement of coping efficacy profoundly affects dream activity is a particularly striking generalized impact.

    A low sense of efficacy to exercise control produces depression as well as anxiety. It does so in several different ways. One route to depression is through unfulfilled aspiration. People who impose on themselves standards of self-worth they judge they cannot attain drive themselves to bouts of depression. A second efficacy route to depression is through a low sense of social efficacy. People who judge themselves to be socially efficacious seek out and cultivate social relationships that provide models on how to manage difficult situations, cushion the adverse effects of chronic stressors and bring satisfaction to people’s lives. Perceived social inefficacy to develop satisfying and supportive relationships increases vulnerability to depression through social isolation. Much human depression is cognitively generated by dejecting ruminative thought. A low sense of efficacy to exercise control over ruminative thought also contributes to the occurrence, duration and recurrence of depressive episodes.

    Other efficacy-activated processes in the affective domain concern the impact of perceived coping self-efficacy on biological systems that affect health functioning. Stress has been implicated as an important contributing factor to many physical dysfunctions. Controllability appears to be a key organizing principle regarding the nature of these stress effects. It is not stressful life conditions per se, but the perceived inability to manage them that is debilitating. Thus, exposure to stressors with ability to control them has no adverse biological effects. But exposure to the same stressors without the ability to control them impairs the immune system. The impairment of immune function increases susceptibility to infection, contributes to the development of physical disorders and accelerates the progression of disease.

    Biological systems are highly interdependent. A weak sense of efficacy to exercise control over stressors activates autonomic reactions, catecholamine secretion and release of endogenous opioids. These biological systems are involved in the regulation of the immune system. Stress activated in the process of acquiring coping capabilities may have different effects than stress experienced in aversive situations with no prospect in sight of ever gaining any self-protective efficacy. There are substantial evolutionary benefits to experiencing enhanced immune function during development of coping capabilities vital for effective adaptation. It would not be evolutionarily advantageous if acute stressors invariably impaired immune function, because of their prevalence in everyday life. If this were the case, people would experience high vulnerability to infective agents that would quickly do them in. There is some evidence that providing people with effective means for managing stressors may have a positive effect on immune function. Moreover, stress aroused while gaining coping mastery over stressors can enhance different components of the immune system.

    There are other ways in which perceived self-efficacy serves to promote health. Lifestyle habits can enhance or impair health. This enables people to exert behavioral influence over their vitality and quality of health. Perceived self-efficacy affects every phase of personal change–whether people even consider changing their health habits; whether they enlist the motivation and perseverance needed to succeed should they choose to do so; and how well they maintain the habit changes they have achieved. The stronger the perceived self-regulatory efficacy the more successful people are in reducing health-impairing habits and adopting and integrating health-promoting habits into their regular lifestyle. Comprehensive community programs designed to prevent cardiovascular disease by altering risk-related habits reduce the rate of morbidity and mortality.

    Selection Processes


    The discussion so far has centered on efficacy-activated processes that enable people to create beneficial environments and to exercise some control over those they encounter day in and day out. People are partly the product of their environment. Therefore, beliefs of personal efficacy can shape the course lives take by influencing they types of activities and environments people choose. People avoid activities and situations they believe exceed their coping capabilities. But they readily undertake challenging activities and select situations they judge themselves capable of handling. By the choices they make, people cultivate different competencies, interests and social networks that determine life courses. Any factor that influences choice behavior can profoundly affect the direction of personal development. This is because the social influences operating in selected environments continue to promote certain competencies, values, and interests long after the efficacy decisional determinant has rendered its inaugurating effect.

    Career choice and development is but one example of the power of self-efficacy beliefs to affect the course of life paths through choice-related processes. The higher the level of people’s perceived self-efficacy the wider the range of career options they seriously consider, the greater their interest in them, and the better they prepare themselves educationally for the occupational pursuits they choose and the greater is their success. Occupations structure a good part of people’s lives and provide them with a major source of personal growth.