Tag: Learn What

Learn What? We want to learn, grow, change, grow, live, excel, take steps and do more. Learning is always but learns about the processes and theories to learn … it takes a certain purpose to understand it. How do people learn and key factors enable which effective factors?

Through Wikipedia, learning is the process of acquiring new or revising existing knowledge, behavior, skills, values or priorities. The ability to learn is near humans, animals, and some machines; Some plants have evidence of any kind of education.

Learning something is instantly motivating by an event, but more skills and knowledge are accumulating than the experience repeatedly. Learning-induced change often goes on for a lifetime, and it is difficult to separate the learning material, which is “lost” that cannot recover.

  • Explain the Internal and External Sources of Employee Recruitment!

    Explain the Internal and External Sources of Employee Recruitment!

    Learn What? Explain the Internal and External Sources of Employee Recruitment!

    The searching of suitable candidates and informing them about the openings in the enterprise is the most important aspect of the recruitment process. The Concept of the study Explains – the Internal and External Sources of Employee Recruitment: Internal Sources and their advantages and disadvantages, External Sources and their advantages and disadvantages. Now, Explain the Internal and External Sources of Employee Recruitment!

    The candidates may be available inside or outside the organization. Basically, there are two sources of recruitment i.e., internal and external sources.

    (A) Internal Sources:

    Best employees can be found within the organization… When a vacancy arises in the organization, it may be given to an employee who is already on the payroll. Internal sources include promotion, transfer and in certain cases demotion. When a higher post is given to a deserving employee, it motivates all other employees of the organization to work hard. The employees can be informed of such a vacancy by internal advertisement.

    Key Points on Internal sources of recruitment:

    Internal sources of recruitment are:

    • Publicity: Publicity means to give the employee a higher position, position, salary, and responsibility. Therefore, the vacancy can be filled up by promoting the right candidate of the same organization.
    • Transfer: The meaning of shifting means employment change, position, pay and change in the place of employment without the employee’s responsibility. Therefore, vacancies can be filled by transferring the suitable candidate of the same organization.
    • Internal advertising: Here, the vacancy is advertised within the organization. Existing employees are asked to apply for the vacancy. So, it is recruited from within the organization.
    • Retired Manager: Sometimes, retired managers can be remembered for a short period. This is done when the organization cannot find the suitable candidate.
    • Remember with a long leave: The organization can remember a manager who has gone on a long leave. This is done when the organization has to face a problem which can only be solved by that particular manager. After solving the problem, his leave has been increased.

    Methods of Internal Sources:

    The Internal Sources Are Given Below:

    1. Transfers:

    The transfer involves shifting of persons from present jobs to other similar jobs. These do not involve any change in rank, responsibility or prestige. The numbers of persons do not increase with transfers.

    1. Promotions:

    Promotions refer to shifting of persons to positions carrying better prestige, higher responsibilities, and more pay. The higher positions falling vacant may be filled up from within the organization. A promotion does not increase the number of persons in the organization.

    A person going to get a higher position will vacate his present position. The promotion will motivate employees to improve their performance so that they can also get the promotion.

    1. Present Employees:

    The present employees of a concern are informed about likely vacant positions. The employees recommend their relations or persons intimately known to them. Management is relieved of looking out prospective candidates.

    The persons recommended by the employees may be generally suitable for the jobs because they know the requirements of various positions. The existing employees take full responsibility for those recommended by them and also ensure their proper behavior and performance.

    Advantages of Internal Sources:

    The Following are The Advantages of Internal Sources:

    1. Improves morale:

    When an employee from inside the organization is given the higher post, it helps in increasing the morale of all employees. Generally, every employee expects promotion to a higher post carrying more status and pays (if he fulfills the other requirements).

    1. No Error in Selection:

    When an employee is selected from inside, there is the least possibility of errors in selection since every company maintains the complete record of its employees and can judge them in a better manner.

    1. Promotes Loyalty:

    It promotes loyalty among the employees as they feel secure on account of chances of advancement.

    1. No Hasty Decision:

    The chances of hasty decisions are completely eliminated as the existing employees are well tried and can be relied upon.

    1. The economy in Training Costs:

    The existing employees are fully aware of the operating procedures and policies of the organization. The existing employees require little training and it brings economy in training costs.

    1. Self-Development:

    It encourages self-development among the employees as they can look forward to occupying higher posts.

    Disadvantages of Internal Sources: 

    • It discourages capable persons from outside to join the concern.
    • It is possible that the requisite number of persons possessing qualifications for the vacant posts may not be available in the organization.
    • For posts requiring innovations and creative thinking, this method of recruitment cannot be followed.
    • If the only seniority is the criterion for promotion, then the person filling the vacant post may not be really capable.

    In spite of the disadvantages, it is frequently used as a source of recruitment for lower positions. It may lead to nepotism and favoritism. The employees may be employed on the basis of their recommendation and not suitability.

    (B) External Sources:

    All organizations have to use external sources for recruitment to higher positions when existing employees are not suitable. More persons are needed when expansions are undertaken.

    Key Points on External sources of recruitment:

    External sources of recruitment are:

    • Management Consultants: Management Consultants are used to selecting high-level employees. They act as the employer’s representative. They make all necessary arrangements for recruitment and selection. In return for their services, they take a service fee or commission.
    • Public Advertisement: The company’s personnel department advertises vacancies in newspapers, internet, etc. This advertisement gives information about the essential qualities of the company, the job, and the candidate. It invites applications from suitable candidates. This source is the most popular source of recruitment. That’s because it gives a very wide choice. However, it is very expensive and time-consuming.
    • Campus recruitment: The organization organizes interviews in the premises of the management institutes and engineering colleges. Interviews are given for final year students, who are soon to get graduation. Proper candidates are selected by the organization on the basis of their academic records, communication skills, intelligence etc. This source is used for the recruitment of qualified, trained but inexperienced candidates.
    • Recommendations: The organization can recruit candidates on the basis of recommendations from existing managers or sister companies.
    • Deputation Personnel: The organization can also recruit the candidates sent on deputation by the government or financial institutions or by holding or subsidiary companies.

    The external sources are discussed below:

    Methods of External Sources:

    1. Advertisement:

    It is a method of recruitment frequently used for skilled workers, clerical and higher staff. Advertisement can be given in newspapers and professional journals. These advertisements attract applicants in a large number of highly variable quality.

    Preparing good advertisement is a specialized task. If a company wants to conceal its name, a ‘blind advertisement’ may be given asking the applicants to apply to Post Bag or Box Number or to some advertising agency.

    1. Employment Exchanges:

    Employment exchanges in India are run by the Government. For unskilled, semi-skilled, skilled, clerical posts etc., it is often used as a source of recruitment. In certain cases, it has been made obligatory for the business concerns to notify their vacancies to the employment exchange. In the past, employers used to turn to these agencies only as a last resort. The job-seekers and job-givers are brought into contact by the employment exchanges.

    1. Schools, Colleges, and Universities:

    Direct recruitment from educational institutions for certain jobs (i.e. placement) which require technical or professional qualification has become a common practice. A close liaison between the company and educational institutions helps in getting suitable candidates. The students are spotted during the course of their studies. Junior level executives or managerial trainees may be recruited in this way.

    1. Recommendation of Existing Employees:

    The present employees know both the company and the candidate is recommended. Hence some companies encourage their existing employees to assist them in getting applications from persons who are known to them.

    In certain cases, rewards may also be given if candidates recommended by them are actually selected by the company. If recommendation leads to favoritism, it will impair the morale of employees.

    1. Factory Gates:

    Certain workers present themselves at the factory gate every day for employment. This method of recruitment is very popular in India for unskilled or semi-skilled labor. The desirable candidates are selected by the first line supervisors. The major disadvantage of this system is that the person selected may not be suitable for the vacancy.

    1. Casual Callers:

    That personnel who casually come to the company for employment may also be considered for the vacant post. It is the most economical method of recruitment. In the advanced countries, this method of recruitment is very popular.

    1. Central Application File:

    A file of past applicants who were not selected earlier may be maintained. In order to keep the file alive, applications in the files must be checked at periodical intervals.

    1. Labour Unions:

    In certain occupations like construction, hotels, maritime industry etc., (i.e., industries where there is instability of employment) all recruits usually come from unions. It is advantageous from the management point of view because it saves expenses of recruitment. However, in other industries, unions may be asked to recommend candidates either as a goodwill gesture or as a courtesy towards the union.

    1. Labour Contractors:

    This method of recruitment is still prevalent in India for hiring unskilled and semi-skilled workers in brick kiln industry. The contractors keep themselves in touch with the labor and bring the workers to the places where they are required. They get the commission for the number of persons supplied by them.

    1. Former Employees:

    In case employees have been laid off or have left the factory on their own, they may be taken back if they are interested in joining the concern (provided their record is good).

    1. Other Sources:

    Apart from these major sources of external recruitment, there are certainly other sources which are exploited by companies from time to time. These include special lectures delivered by the recruiter in different institutions, though apparently, these lectures do not pertain to recruitment directly.

    Then there are video files which are sent to various concerns and institutions so as to show the history and development of the company. These films present the story of the company to various audiences, thus creating interest in them.

    Various firms organize trade shows which attract many prospective employees. Many a time advertisements may be made for a special class of workforce (say married ladies) who worked prior to their marriage.

    These ladies can also prove to be the very good source of the workforce. Similarly, there is the labor market consisting of physically handicapped. Visits to other companies also help in finding new sources of recruitment.

    Advantages of External Sources:

    1. Availability of Suitable Persons:

    Internal sources, sometimes, may not be able to supply suitable persons from within. External sources do give a wide choice to the management. A large number of applicants may be willing to join the organization. They will also be suitable as per the requirements of skill, training, and education.

    1. Brings New Ideas:

    The selection of persons from outside sources will have the benefit of new ideas. The persons having experience in other concerns will be able to suggest new things and methods. This will keep the organization in a competitive position.

    1. Economical:

    This method of recruitment can prove to be economical because new employees are already trained and experienced and do not require much training for the jobs.

    Disadvantages of External Sources:

    1. Demoralisation:

    When new persons from outside join the organization then present employees feel demoralized because these positions should have gone to them. There can be a heart burning among old employees. Some employees may even leave the enterprise and go for better avenues for other concerns.

    1. Lack of Co-Operation:

    The old staff may not co-operate with the new employees because they feel that their right has been snatched away by them. This problem will be acute especially when persons for higher positions are recruited from outside.

    1. Expensive:

    The process of recruiting from outside is very expensive. It starts with inserting costly advertisements in the media and then arranging written tests and conducting interviews. In spite of all this if suitable persons are not available, then the whole process will have to be repeated.

    1. The problem of Maladjustment:

    There may be a possibility that the new entrants have not been able to adjust to the new environment. They may not temperamentally adjust with the new persons. In such cases either the persons may leave themselves or management may have to replace them. These things have the adverse effect on the working of the organization.

    Suitability of External Sources of Recruitment:

    External Sources of Recruitment are Suitable for The Following Reasons:

    • The required qualities such as will, skill, talent, knowledge etc., are available from external sources.
    • It can help in bringing new ideas, better techniques and improved methods to the organization.
    • The selection of candidates will be without preconceived notions or reservations.
    • The cost of employees will be minimal because candidates selected in this method will be placed on the minimum pay scale.
    • The entry of new persons with varied experience and talent will help in human resource mix.
    • The existing employees will also broaden their personality.
    • The entry of qualitative persons from outside will be in the long-run interest of the organization.
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  • What is the Source of Recruitment in the Organization?

    What is the Source of Recruitment in the Organization?

    Source of Recruitment in the Organization; The sources of employees can classify into two types, internal and external. The concept of the study Explains – the Source of Recruitment in the Organization: Internal Sources and their benefits and limitations, External Sources and their benefits and limitations. Also, Filling a job opening from within the firm has the advantages of stimulating preparation for possible transfer of promotion, increasing the general level of morale, and providing more information about job candidates through analysis of work histories within the organization.

    Understanding and Learn, What is the Source of Recruitment in the Organization?

    A job posting has several advantages. Also, From the viewpoint of the employee, it provides flexibility and greater control over career progress. For the employer, it should result in better matches of employee and job.

    Meaning and Sources of Recruitment:

    Whenever there is a vacancy in the organization, generally it is to fill. To make the candidate avail­able for filling those vacancies, their selection procedure and placement on a proper job comes under the purview of recruitment. As soon as the available vacancies know, they advertise through different media, and accordingly the applications collect for the vacant posts. Also, A group of candidates interested in doing the job and are eligible to do, it creates through recruitment.

    It is an operative function of human resource management coming under the managerial function called organizing. In the words of Edwin Flippo, ‘recruitment is the process of searching for prospective employees and stimulating them to apply for jobs in the organisation’.

    In most instances, the jobs post on notice boards, though some carry listings in the company newspapers. Also, The posting period is commonly one week, with the final decision for hiring being completed within four weeks.

    Internal applications often restrict certain employees.

    The guidelines for one company including (1) “good” or “better” on the most recent performance review; (2) dependable attendance record; (3) not under probationary sanction; and (4) having been in the present position for 1 year. Also, The present supervisor must at some time inform of his or her subordinate’s interest in another job. Some require immediate notification, while others inform only if the employee becomes a prime candidate for the listed opening. The personnel unit acts as a clearinghouse in unrealistic screening applications, preventing an excessive number of bids by a single employee, and counseling employees who are constantly unsuccessful in their attempt to change jobs.

    Inevitably, the firm must go to external sources for lower entry jobs, for expansion, and for positions whose specifications cannot be met by present personnel. Thus the firm has a number of outside sources available, among which are the following:

    Advertising:

    There is a trend toward more selective recruitment in advertising. Also, This can affect at least two ways. First, advertisements can place in media read-only by particular groups. Secondly, more information about the company, the job, and the job specification can include in the ad to permit some self-screening.

    Employment Agencies:

    Additional screening can affect the utilization of employment agencies, both public and private. Today, in contrast to their former unsavory reputation, the public employment agencies in several States well-regard, particularly in the fields of unskilled semi-skilled, and skilled operative jobs. In the technical and professional areas, however, the private agencies appear to be doing most of the work. Many private agencies tend to specialize in a particular type of worker and job, such as sales, office, executive, or engineer.

    Employee Referrals:

    Friends and relatives of present employees are also a good source from which employees may be drawn. When the labor market is very tight, large employers frequently offer their employees bonuses or prizes for any referrals that hire and stay with the company for a specific length of time. Some companies maintain a register of former employees whose record was good to contact them when there are new job openings for which they are qualified. Also, This method of recruitment, however, suffers from a serious defect that it encourages nepotism, i.e. persons of one’s community or caste employe, who may or may not be fit for the job.

    Schools, Colleges and Professional Institutions:

    Offer opportunities for recruiting their students. Also, They operate placement services where complete bio-data and other particulars of the students are available. The companies that need employees maintain contact with Guidance Counsellors of Employment Bureaus and teachers of business and vocational subjects. The prospective employers can review Credentials and interview candidates for management trainees or probationers. Whether the education sought involves a higher secondary certificate, specific vocational training, or a college background with a bachelor’s, master’s, or doctoral degree, educational institutions provide an excellent source of potential employees for entry-level positions in organizations. These general and technical/ professional institutions provide blue-collar applicants, white-collar and managerial personnel.

    Labor unions:

    Firms with closed or union shops must look to the union in their recruitment efforts. Disadvantages of a monopolistically control labor source are offset, at least particularly, by savings in recruitment costs. With one-fifth of the labor force organized into unions, organized labor constitutes an important source of personnel.

    Casual applicants:

    Unsolicited applications, both at the gate and through the mail, constitute a much-used source of personnel. These can develop through the provision of attractive employment office facilities and prompt and courteous replies to unsolicited letters.

    Professional organizations or recruiting firms or executive recruiters:

    Maintain complete information records about employed executives. These firms look upon as ‘head hunters’, ‘raiders’, and ‘pirates’ by organizations that lose personnel through their efforts. However, these same organizations may employ “executive search firms” to help them find talent. These consulting firms recommend persons of high caliber for managerial, marketing, and production engineers’ posts.

    Indoctrination seminars for colleges professors:

    Are arrange to discuss the problem of companies and employees. Professors invite to take part in these seminars. Visits to plants and banquets arrange so that the participant professors may favorably impress. Also, They may later speak well of a company and help it in getting the required personnel.

    Unconsolidated applications:

    For positions in which large numbers of candidates are not available from other sources, the companies may gain keeping files of applications received from candidates who make direct inquiries about possible vacancies on their own or may send unconsolidated applications. Also, The information may index and file for future use when there are openings in these jobs.

    Nepotism:

    The hiring of relatives will be an inevitable component of recruitment programs in family-owned firms, such a policy does not necessarily coincide with hiring based on merit, but interest and loyalty to the enterprise are offsetting advantages.

    Leasing:

    To adjust to short-term fluctuations in personnel needs, the possibility of leasing personnel by the hour or day should consider. This practice has been particularly well-developed in the office administration field. Also, The firm not only obtains well-trained and selected personnel but avoids any obligation in pensions, insurance, and other fringe benefits.

    Voluntary organizations:

    Such as private clubs, social organizations might also provide employees – handicaps, widowed or married women, old persons, retired hands, etc., in response to advertisements.

    Computer data banks:

    When a company desires a particular type of employee, job specifications and requirements are fed into a computer, where they match against the resume data stored therein. The output is a set of resumes for individuals who meet the requirements. Also, This method is very useful for identifying candidates for hard-to-fill positions which call for an unusual combination of skills.

    Sources of Recruitment:

    The eligible and suitable candidates required for a particular job are available through various sources.

    Internal Sources of Recruitment:

    1. Promotions:

    The promotion policy follows as a motivational technique for the employees who work hard and show good performance. Also, Promotion results in enhancements in pay, position, responsibility, and authority. The important requirement for the implementation of the promotion policy is that the terms, condi­tions, rules, and regulations should be well-defined.

    1. Retirements:

    The retired employees may give the extension in their service in case of the non­-availability of suitable candidates for the post.

    1. Former employees:

    Former employees who had performed well during their tenure may call back; and, higher wages and incentives can pay to them.

    1. Transfer:

    Employees may transfer from one department to another wherever the post becomes vacant.

    1. Internal advertisement:

    The existing employees may interest in taking up the vacant jobs. As they are working in the company for a long time, they know about the specification and description of the vacant job. For their benefit, the advertisement within the company circulates so that the employees will be intimated.

    Benefits of Internal Sources of Recruitment:
    • The existing employees get motivated.
    • Also, Cost saves as there is no need to give advertisements about the vacancy.
    • It builds loyalty among employees towards the organization.
    • The training cost is saved as the employees already know about the nature of the job to be performed.
    • It is a reliable and easy process.
    Limitations of Internal Sources of Recruitment:
    • Young people with the knowledge of modem technology and innovative ideas do not get the chance.
    • The performance of the existing employees may not be as efficient as before.
    • Also, The brings the morale down of employees who do not get the promotion or selected.
    • It may lead to encouragement to favoritism.
    • It may not be always in the good interest of the organization.

    External Sources of Recruitment:

    1. Press advertisement:

    A wide choice for selecting the appropriate candidate for the post is avail­able through this source. It gives publicity to the vacant posts and the details about the job in the form of the job description and job specification are made available to the public in general.

    1. Campus interviews:

    It is the best possible method for companies to select students from various educational institutions. Also, It is easy and economical. The company officials personally visit various institutes and select students eligible for a particular post through interviews. Also, Students get a good opportunity to prove themselves and get selected for a good job.

    1. Placement agencies:

    A databank of candidates is sent to organizations for their selection purpose and agencies get the commission in return.

    1. Employment exchange:

    People register themselves with government employment exchanges with their personal details. According to the needs and request of the organization, the candidates are sent for interviews.

    1. Walk in interviews:

    These interviews are declared by companies on the specific day and time and conducted for selection.

    1. E-recruitment:

    Various sites such as jobs.com, naukri.com, and monster.com are the available electronic sites on which candidates upload their resume and seek the jobs.

    1. Competitors:

    By offering better terms and conditions of service; Also, the human resource managers try to get the employees working in the competitor’s organization.

    Benefits of External Sources of Recruitment:
    • New talents get the opportunity.
    • Also, The best selection is possible as a large number of candidates apply for the job.
    • In case of unavailability of suitable candidates within the organization, it is better to select them from outside sources.
    Limitations of External Sources of Recruitment:
    • Skilled and ambitious employees may switch the job more frequently.
    • Also, It gives a sense of insecurity among the existing candidates.
    • It increases the cost as the advertisement is to be given through press and training facilities to be provided for new candidates.
    What is the Source of Recruitment in the Organization - ilearnlot
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  • What is the Purpose and Importance of Recruitment?

    What is the Purpose and Importance of Recruitment?

    Importance of Recruitment; Recruitment means to estimate the available vacancies and to make suitable arrangements for their selection and appointment. The Concept of the study Explains – the Purpose and Importance of Recruitment: Need, Purpose, Importance, and Strategy. Recruitment is understanding as to the process of searching for and obtaining applicants for the jobs, from among whom the right people can select. Also learn, What is the Purpose and Importance of Recruitment?

    Understanding and Learn, What is the Purpose and Importance of Recruitment? with Need!

    Importance of a strong recruitment process: Successful recruitment is a direct reflection of the legitimacy and professionalism of your business. Employing the right people for your business is the most important part of your organization. It is necessary to have a good recruitment process to attract the right kind of staff for the needs of your business. Your recruitment process must be cost-effective as well as time-consuming. Recruitment and training can be expensive and time-consuming, so when you are recruiting, make sure that you are making the right choice.

    A good recruitment process can reduce the time involved in searching, interviewing, recruiting, and training. It can streamline these procedures and make your search more efficient for viable candidates. Also, Creating a positive image for your customers, peers, and competitors is very important. New employees must list the skills needed to fulfill their duties. To get better and successful results in your recruitment process, promote specific criteria relevant to the job.

    Always evaluate the skill of your candidate for the position of recruitment for knowledge, skill, and ability “KSA”, this is a great assessment tool for recruiting the right candidate for your business. There is no guarantee that your selection will be correct, but you can reduce your risks and maximize your ability to rent the right candidate. If you have a successful recruitment process then you can find a good, qualified, reliable staff for your company. Be sure to follow an organized recruitment path and you will find candidates who prove to be a great asset to your business.

    Need for Recruitment:

    Every Company in the world knows the importance of the recruitment step in increasing. Also, The performance of the company and increasing the productivity of the products. In this part of the project we will mention some important point about the importance of the recruitment step in any organization:

    • It helps the organization by finding the need for requirements by job analysis activities and personnel planning.
    • To collect many job candidates with less cost.
    • It helps to organize applications by dividing them by underqualified or overqualified, to increase the possibility of increasing and choosing the successful person to the right place.
    • Employing new and better-qualified staff often the only effective long-term strategy for improving operational performance.
    • Also, the Capabilities and commitment of employees ensure an organization’s success.
    • Raise organizational and individual value in the short term and long term.

    Purpose of Recruitment:

    • Determine current and future needs: To determine the present and future needs of the organization, with the combination of their plan and job analysis activities. Also, This is one of the most important objectives of recruitment.
    • Increase in the job pool: To increase the pool of job candidates at the minimum post cost.
    • Assistance in increasing success rate: To help increase the success rate of the selection process by reducing the visible number of under-qualified or exaggerated job applicants.
    • Help reduce the probability: To help reduce the likelihood of job applicants, once recruited and selected, only after a short period they can cure the organization.
    • Meet the organization’s social and legal obligation: it should fulfill the organization’s social and legal liability towards the combination of its employees
    • Start identifying job applicants: Identifying job applicants and preparing for potential job applicants will be suitable candidates.
    • Increase effectiveness: To increase organizational and personal effectiveness in the short-term and long-term.
    • Evaluate effectiveness: To evaluate the effectiveness of various recruitment techniques, all types of jobs are the source for the applicants. Also, This is the ultimate purpose of recruitment.

    The Purpose and Importance of Recruitment:

    Following a few points is explaining:

    • Determine the present and future requirements of the organization in conjunction with its personnel planning and job analysis activities.
    • Also, Increase the pool of job candidates at minimum cost.
    • Help increase the success rate of the selection process by reducing the number of visibly underqualified or overqualified job applicants.
    • Help reduce the probability that job applicants, once recruited and selected, will leave the organization only after a short period.
    • Meet the organization’s legal and social obligations regarding the composition of its workforce.
    • Begin identifying and preparing potential job applicants who will be appropriate candidates.
    • Also, Increase organizational and individual effectiveness in the short term and long term.
    • Evaluate the effectiveness of various recruiting techniques and sources for all types of job applicants.

    What is the purpose of the Recruitment Strategy?

    What is the issue of any strategy? A strategy defines big and important questions. Who, what, when, and why Who is doing when? And why are they doing this? Your recruitment strategy is hoped that the skilled use of company resources will be prepared to give your business the best talent to get a job. Also, Your strategy can generate productive benefits in your market!

    So, what’s the purpose? A recruitment strategy creates activation and clarity of purpose in the process of attracting and selecting talent for your business and aligns business goals with talent acquisition goals. Also, An employee strategy starts with understanding and understanding the value of your company to best understand and understand the behavior of those employees that you want to attract.

    A recruitment strategy clarifies the purpose or vision of the company for the future. A well-executed recruitment strategy will align employees with specific behaviors that are encouraged in the company.

    More to know…!

    A different purpose of deciding a recruitment strategy is how talent will be identified and business will be attracted, how the employer brand will be marketed for talent, and ultimately how it will be evaluated for employment for candidates. Attracting talent depends on your recruitment brand. How will you present your company and its brand authentically and describe it? Where do you propagate your company? Also, This is where good job descriptions, scorecards, job postings, recruitment techniques, and recruitment partners come into play.

    Today, no one can be the best in their entire strategy. Evaluating talent is also a big part of your recruitment strategy. Do you want your manager to talk with recruitment about how they get into the business and sell more about why your company is great? Or will you define the questions and role of your managers because you make the recruitment team? Always define team roles in evaluating talent. Also, Determine evaluation procedures and standards in continuous ways to attract and evaluate talent!

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  • Why are Training and Development required in HRM?

    Why are Training and Development required in HRM?

    The Concept of the study Explains – Training and Development required in HRM – Importance, advantages, disadvantages, and process. There is continuous pressure for efficiency and if the organization does not respond to this pressure, it may find itself rapidly losing its market.

    Understanding and Learn, Why are Training and Development required in HRM?

    Also, Training imparts skills and knowledge to employees so that they contribute to the organization’s efficiency and can cope with the pressures of a changing environment. Corporate Training at crazymonkeycafe.com.

    As well as, The viability of an organization depends to a considerable extent on the skills of different employees, especially that of the managerial cadre, to relate the organization to its environment. Therefore, in any organization, there is no question of whether to train its employees or not, the only choice is that of following a particular training and development method. Three factors that necessitate continuous training in an organization are technological advances, organizational complexity, and human relations. All these factors are related to each other.

    Training and development can play the following role in an organization.

    Increases Efficiency!

    Training and development increase skills for doing a job in a better way. This is more important in the context of changing technology because the old method of working may not be relevant. As such, training requires even to maintain a minimum level of output.

    Increases Morale!

    Training and development increase the morale of employees. High morale is evidenced by employee enthusiasm. Training increases employee morale by relating their skills with their job requirements. The Possession of skills necessary to perform a job well often tends to meet human needs such as security and ego satisfaction. Trained employees can see the jobs in a more meaningful way.

    Better Human Relations!

    Training increases the quality of human relations in an organization. The growing complexity of organizations has led to various human problems like inter-personal and inter-group problems. These problems can be overcome by suitable human relations training.

    Reduced Supervision!

    Trained employees require less supervision. Autonomy and freedom can be given if the employees are trained properly to handle their jobs without the help of supervision. With reduced supervision, a manager can increase his span of control in the organization which saves cost to the organization.

    Increased Organizational Viability and Flexibility!

    There is no greater organizational asset than trained personnel because these people can turn the other assets into a productive whole. Also, Viability relates to the survival of the organization during bad days and flexibility relates to sustaining its effectiveness despite the loss of its key personnel and making short-term adjustments with the existing personnel. Such adjustment is possible if the organization has trained people who can occupy the positions vacated by key personnel. The organization, which does not prepare a second line of personnel who can ultimately take charge of key personnel, may not be successful in the absence of such key personnel for whatever reason.

    Importance of Training and Development:

    For companies to keep improving, organizations need to have continuous training and development programs for their employees. Competition and the business environment keep changing, and hence it is critical to keep learning and picking up new skills. The importance of training and development is as follows:

    • Optimum utilization of Human resources
    • Development of skills
    • To increase the productivity
    • To provide the zeal of team spirit
    • For improvement of organizational culture
    • To improve quality, safety
    • To increase profitability
    • Improve the morale and corporate image
    Need for Training and Development:

    Training and development of employees is a costly activity as it requires a lot of quality input from trainers as well as employees. However, the company must revise its goals and efficiencies with the changing environment. Here are a few critical reasons why the company endorses training and development sessions.

    • When management thinks that there is a need to improve the performance of employees
    • To set up the benchmark of improvement so far in the performance improvement effort
    • To train about the specific job responsibility
    • To test the new methodology for increasing productivity
    Advantages of training and development:

    Training and development have a cost attached to it. However, since it is beneficial for companies, in the long run, they ensure employees stand trained regularly. Some advantages are:

    1. Helps employees develop new skills and increases their knowledge.
    2. Improves efficiency and productivity of the individuals as well as the teams.
    3. Proper training and development can remove bottlenecks in operations.
    4. New & improved job positions can be created to make the organization leaner.
    5. Keeps employees motivated and refreshes their goals, ambitions, and contribution levels.
    Disadvantages of training and development:

    Even though there are several advantages, some drawbacks of training and development are mentioned below:

    1. It is an expensive process that includes arranging the correct trainers and engaging employees for non-revenue activities.
    2. There is a risk that after the training and development session, the employee can quit the job.
    Training and Development Process:

    Training and development is a continuous process as the skills, knowledge, and quality of work need constant improvement. Since businesses are changing rapidly, companies must focus on training their employees after constantly monitoring them & developing their overall personality.

    The steps for training and development processes are:

    • Determine the need for training and development for individuals or teams
    • Establish specific objectives & goals that need to be achieved
    • Select the methods of training
    • Conduct and implement the programs for employees
    • Evaluate the output and performance post the training and development sessions.
    • Keep monitoring and evaluating the performances and again see if more training is required.

    Human resource management regards training and development as a function concerned with organizational activity aimed at bettering the job performance of individuals and groups in organizational settings. Training and development can be described as “an educational process which involves the sharpening of skills, concepts, changing of attitude and gaining more knowledge to enhance the performance of employees”. The field has gone by several names, including “Human Resource Development”, “Human Capital Development” and “Learning and Development”.

    Some explanations of training and development are some of the major HRM tasks:

    Most organizations see training and development as an integral part of human resource development activity. Centenary Turn has focused the same focus on organizations globally. Many organizations have made training hours mandatory for employees per year, keeping in mind the fact that technology is keeping employees at a very fast rate.

    So what is training and development? Is it really important for organizational existence or can they survive without prejudice? Training and development is one more thing or are they different? Training can be described as an effort to improve or improve additional qualifications or skills in an employee employed at present to increase performance or productivity.

    In technical training, there is a change in attitude, skill, or knowledge of a person with resultant improvement in practice. To be effective for the training, it should plan activities conducted entirely after analysis and goal after some qualifications, most importantly it is to organize in a learning environment.

    When designing a training program, it should keep in mind that both individual goals and organizational goals are kept in mind. Although it may not be possible to ensure sync, competencies are chosen in such a way that victory and win for the employee and organization are created.

    Generally, the organization prepares its training calendar at the beginning of financial training, where training needs stand identified for employees. This requirement of identification called ‘training requirement analysis’ is a part of the performance evaluation process. After the analysis, the number of training hours with training intervention was fixed, and it spread strategically in the following year.

    A better understanding of Development:

    Very time training with development is confusing, both components of the same system are different in some cases. The opportunities created to help growth workers grow. It is in the long run or the future in the future against the training, which focuses on the current job. It is not limited to the path of a job in the current organization but can also focus on other developmental aspects.

    In Gaudier, for example, employees are expected to participate in the training program on presentation skills essentially, though they are also free to choose a course on ‘Leadership approach through literature’. While the presentation skill program helps them on the job, literature-based programs can directly help them or not.

    Similarly, many organizations prefer some employees for the programs to develop them for future posts. This is done based on the current attitude, skills and abilities, knowledge, and performance of the employee. Most leadership programs are of this nature, with the view to making and nurturing leaders for tomorrow.

    Therefore, the major difference between training and development is that training stands often focused on current employee requirements or eligibility intervals, while development concerns itself with the preparation of people for assignments and responsibilities in the future.

    With technology, with more desk workers and industrial workers standing replaced by knowledge workers, training and development are at the forefront of HRD. In response to training and business needs, it is now in the Human Development Department to play an active leadership role.

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  • What are the key principles of Training and Development?

    What are the key principles of Training and Development?

    Principles of Training and Development: Competitive advantage is referred to that ability of an organization which is not possessed by the other organizations and it is a competitive advantage which leads the organization to the top positions. The content is the study of explains – the key Principles of Training and Development, Training Principles and Techniques, and Training Procedure. There are many organizations in the world who are leading the markets by gaining competitive advantage in different fields of their business activities. Also, learn the Main Principles of Training and Development.

    Understanding and Learn, What are the key principles of Training and Development?

    One of the ways in which a firm can attain a competitive advantage over the competitors is by building a force of superior human resource. Now the question arises that how this force of superior human resource can build. The answer lies in a very important function of human resource management i.e. training and development. It has been observing that the employees or labor working in a competitive environment of the market always welcome the training and development programs which can enhance their skills and knowledge.

    Nowadays every job holder understands that to sustain and grow in the career it is very important to polish their skills. It is not that time where one degree or diploma is sufficient for the whole life. Employees actively participate in several programs which are organizing by their organization and it has been observing that in some organization employee’s demand from their human resource department to arrange such training and development programs.

    Successful organization of today has built its human resource workforce over the passage of time. There is no doubt that this workforce is a highly valuable asset for any organization and the only possible way to build this workforce is training and development. There are several theories which emphasize the importance of training and development in the organization and provides different alternative methods for training and development. A discussion of four major theories of training and development gives below.

    What is the theory of Reinforcement?

    This theory emphasizes on the learning behavior of a person and suggests that the learner will repeat that behavior which is attached with a positive outcome or result. Skinner an economist of the behaviorist school of thought proposed the theory of reinforcement and suggested that the training and development programs should align with the organizational objectives and a positive outcome should expect with such training and development programs. Further elaborating this concept suggested in reinforcement theory, it can argue that there are several techniques available in human resource practices which can associate with the training and development programs and the required suggestion by this theory can fulfill.

    Different types of rewards in the form of bonuses, salary raises, promotion and awarding of certificate after the training program can associate with the training and development activities and these rewards will definitely generate a positive outcome. If this is done by an organization then according to the Skinner’s theory of reinforcement the trainer i.e. the employee will show more interest in the training and development programs held by the organization.

    Learning Types:

    The theory presented by Gagne emphasized on learning of intellectual skills. These are such skills which are found rare among the persons. He suggested by different learning types in his theory and each learning type contains some external and internal conditions. The five categories of learning which Gagne defined in his theory include intellectual skills, verbal information, attitudes, cognitive strategies, and motor skills.

    Experiential Learning:

    Experiential and cognitive types of learning are differentiated by the experiential theory of learning presented by C. Rogers. According to Rogers, the wants and needs of the learner are addressed by this type of learning. Experience gives the personal maturity and increases the learning power along with the knowledge. Due to personal involvement, the learner is able to conduct a self-evaluation test. Which allows him to understand the effect of learning on his/her attitude.

    Social Learning:

    The social theory presents a new view of learning i.e. social. According to the presenter of this theory, Albert Bandura, direct reinforcement cannot address all types of learning. Hereby direct enforcement means the training and development programs that are organizing to enhance the skills. According to this theory, such programs do not address all learning types. As there are some social elements which cannot teach. Those elements are learning by the learner from his/her surroundings.

    Such type of learning calls observational learning and this learning associate with the understanding of different human behaviors. The first type of learning defined in this theory is through observation. In an organization, the environment and the surroundings play a very important role. The environment should be very professional and the surroundings should be in such a way that the people (employees) learn from them.

    Extra knowledge:

    This theory also suggests that it is not necessary that the behavior change after learning something.

    It expects that a person’s behavior changes after learning something, but it is not in all cases. Furthermore, the theory also explains the mental states which play a vital role in the learning process. If the mental status of the person is negative regarding any learning activity then. He will not take part in that learning process and even. If he forces to do so, he will not gain any positivity from that process.

    In organizational training programs, the mental state can make positive regarding the training and development programs by associating the rewards and benefits with such programs. Which will motivate the employees and help to build a positive mental state? The case company also follow this theory. As it allows the employees to learn from the surrounding and provides an environment where they can learn from their supervisors/managers and coworkers.

    Training Principles and Techniques:

    According to Pigors and Myres, training principles and techniques include:

    • The trainee must want to learn. His motivation to improve his job performance or to learn a new skill must be high.
    • There should be some reward at the conclusion of training viz., promotion or a better job.
    • The trainer should ask the trainee as to whether he is learning the job correctly. This knows as feedback.
    • Training is best to accomplish through learning by doing rather than by listening.
    • The material to learn should develop in stages.
    • When the trainee gives the correct response, he learns the job.
    Training Procedure:
    • First of all the instructor must prepare. He should know both his job and how to teach it. On the basis of job analysis and job description, various operations should plan. In order to avoid delays, everything must be ready before training starts.
    • The next step is the preparation of the trainee. The fact that the employee is learning the job for the first time should keep in mind. The importance of the job, its relationship with the other jobs and the importance of rapid and effective learning should explain.
    • The operations should then present carefully and patiently. The sequence of the entire job explains by taking one point at a time.
    • The performance of the trainee should then try by asking him to explain each step and do the practical.
    • The employee is then put on the job. In the follow-up action, his performance should frequently check and questions should encourage.

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  • What is the Recruitment Process?

    What is the Recruitment Process?

    Understanding and Learn, What is the Recruitment Process?

    It is very important for an employer to design a recruitment process for hiring the best professionals within a given time frame. The Recruitment Process is explained in the few steps involved as follows: Recruitment Planning, Strategy Development, Searching, Screening, and Evaluation & Control. Though the process of recruitment may differ from organization to organization, it has more or less similar steps. Also learn, What is the Recruitment Process?

    What is recruitment? In Human Resource Management, “recruitment” is the process of finding and renting the best and most qualified candidate for opening a job at a time and cost-effectively. It can also be defined as “the process of looking for potential employees and encouraging and encouraging them to apply for jobs in an organization”. This is a complete process, with a full life cycle, that starts with the identification of the company’s needs in relation to the job, and the organization ends with the introduction of the employee.

    Recruitment refers to the process of identifying and attracting job seekers so as to build a pool of qualified job applicants.

    The recruitment process comprises a few interrelated stages, viz,

    • Planning.
    • Strategy development.
    • Searching.
    • Screening.
    • Evaluation and control.

    The ideal recruitment programme is the one that attracts a relatively larger number of qualified applicants who will survive the screening process and accept positions with the organization when offered. Also, Recruitment programmes can miss the ideal in many ways i.e. by failing to attract an adequate applicant pool, by under/overselling the organization or by inadequate screening applicants before they enter the selection process.

    Thus, to approach the ideal, individuals responsible for the recruitment process must know how many and what types of employees are needed, where and how to look for the individuals with the appropriate qualifications and interests, what inducement to use for various types of applicants groups, how to distinguish applicants who are qualifying from those who have a reasonable chance of success and how to evaluate their work.

    1. Recruitment Planning:

    The first step involved in the recruitment process is planning. Here, planning involves to draft a comprehensive job specification for the vacant position, outlining its major and minor responsibili­ties; the skills, experience, and qualifications needed; grade and level of pay; starting date; whether temporary or permanent; and mention of special conditions, if any, attached to the job to be filled ”

    The first stage in the recruitment process is planning. Planning involves the translation of likely job vacancies and information about the nature of these jobs into set the of objectives or targets that specify the (1) Numbers, and (2) Types of applicants to be contacted.

    Numbers of contact: Organization, nearly always, plan to attract more applicants than they will hire. Some of those contacted will uninterest, unqualified or both. Each time a recruitment Programme is contemplated, one task is to estimate the number of applicants necessary to fill all vacancies with the qualified people.

    Types of contacts: It is basically concerned with the types of people to information about job openings. As well as, The type of people depends on the tasks and responsibilities involving and the qualifications and experience expected. These details are available through job the description and job specification.

    2. Strategy Development:

    When it is estimated that what types of recruitment and how many are required then one has concentrated on (1) Make or Buy employees, (2) Technological sophistication of recruitment and selection devices, (3) Geographical distribution of labour markets comprising job seekers, (4) Sources of recruitment, (5) Sequencing the activities in the recruitment process.

    Once it is known how many with what qualifications of candidates are required, the next step involved in this regard is to devise a suitable strategy for recruiting the candidates in the organization. The strategic considerations to be considered may include issues like whether to prepare the required candidates themselves or hire it from outside, what type of recruitment method to be used, what geographical area be considered for searching the candidates, which source of recruitment to be practiced, and what sequence of activities to be followed in recruiting candidates in the organisation.

    ‘Make’ or ‘Buy’: Organisation must decide whether to hire less skilled employees and invest in training and education programmes, or they can hire skilled labor and professional. Essentially, this is the ‘make’ or ‘buy’ decision. Organizations, which hire skilled and professionals shall have to pay more for these employees.

    Technological Sophistication: The second decision in strategy development relates to the methods used in recruitment and selection. This decision is mainly influenced by the available technology. The advent of computers has made it possible for employers to scan national and international applicant qualification. Although impersonal, computers have given employers and job seekers a wider scope of options in the initial screening stage.

    Where to look: In order to reduce the costs, organizations look into labor markets most likely to offer the required job seekers. Generally, companies look into the national market for managerial and professional employees, regional or local markets for technical employees and local markets for the clerical and blue-collar employees.

    When to look: An effective recruiting strategy must determine when to look-decide on the timings of events besides knowing where and how to look for job applicants.

    3. Searching:

    Source Activation: Typically, sources and search methods are activating by the issuance of an employee requisition. This means that no actual recruiting takes place until lone managers have verified that vacancy does exist or will exist. Also, If the organization has planned well and done a good job of developing its sources and search methods, activation soon results in a flood of applications and/or resumes. The application received must screen. Those who pass have to contact and invited for the interview. Unsuccessful applicants must be sent the letter of regret.

    Selling: A second issue to address in the searching process concerns communications. Here, the organization walks the tightrope. On one hand, they want to do whatever they can to attract desirable applicants. On the other hand, they must resist the temptation of overselling their virtues. In selling the organization, both the message and the media deserve attention. As well as, Message refers to the employment advertisement. With regards to media, it may state that the effectiveness of any recruiting message depends on the media. Media are several-some have low credibility, while others enjoy high credibility. Selection of medium or media needs to do with a lot of care.

    4. Screening:

    Screening of applicants can regard as an integral part of the recruiting process, though many view it as the first step in the selection process. Even the definition of recruitment, we quoted at the beginning of this chapter, excludes screening from its scope. However, we have included screening in recruitment for valid reasons. The selection process will begin after the applications have been scrutinizing and short-listing.

    The hiring of professors in a university is a typical situation. Application receiving in response to advertisements is screened and only eligible applicants are called for an interview. Also, A selection committee comprising the Vice-chancellor, Registrar, and subject experts conducts the interview. Here, the recruitment process extends up to screening the applications. The selection process commences only later.

    Though some view screening as the starting point of selection, we have considered it as an integral part of recruitment. The reason being the selection process starts only after the applications have been screened and shortlisted. Let it be exemplified with an example.

    In the Universities, applications are invited for filling the post of Professors. Applications re­ceived in response to the invitation, i.e., advertisement are screened and shortlisted on the basis of eligibility and suitability. Then, only the screened applicants are invited for a seminar presentation and personal interview. The selection process starts from here, i.e., seminar presentation or interview.

    Job specification is invaluable in screening. Applications are screened against the qualification, knowledge, skills, abilities, interest, and experience mentioned in the job specification. Those who do not qualify are straightway eliminated from the selection process.

    The techniques used for screening candidates vary depending on the source of supply and method used for recruiting. Preliminary applications, de-selection tests, and screening interviews are common techniques used for screening the candidates.

    Purpose of screening:

    The purpose of screening is to remove from the recruitment process, at an early stage, those applicants who are visibly unqualified for the job. Effective screening can save a great deal of time and money. Care must exercise, however, to assure that potentially good employees are not rejecting without justification.

    Also, in screening, clear job specifications are invaluable. It is both good practice and a legal necessity that applicant’s qualification is judged on the basis of their knowledge, skills, abilities, and interest required to do the job.

    The techniques used to screen applicants vary depending on the candidate sources and recruiting methods used. Interview and application blanks may use to screen walk-ins. Campus recruiters and agency representatives use interviews and resumes. Reference checks are also useful in screening.

    5. Evaluation and Control:

    Evaluation and control are necessary as considerable costs are incurred in the recruitment process. The costs generally incurred are: –

    • Salaries for recruiters.
    • Management and professional time spent on preparing job description, job specifications, advertisements, agency liaison and so forth.
    • The cost of advertisements or other recruitment methods, that is agency fees.
    • Recruitment overheads and administrative expenses.
    • Costs of overtime and outsourcing while the vacancies remain unfilled.
    • Cost of recruiting unsuitable candidates for the selection process.

    Evaluation of recruitment process:

    The recruitment has the objective of searching for and obtaining applications for job seekers in sufficient number and quality. Keeping this objective in the mind, the evaluation might include:

    • The return rate of application sent out.
    • A number of suitable candidates for selection.
    • Retention and performance of the candidates selected.
    • Cost of the recruitment process.
    • Time lapsed data.
    • Comments on the image projected.

    In view of above, it is necessary for a prudent employer to try to answer certain questions like whether the recruitment methods are appropriate and valid? And whether the recruitment process followed in the organization is effective at all or not? In case the answers to these questions are in negative, the appropriate control measures need to be evolved and exercised to tide over the situa­tion.

    However, such an exercise seems to be only rarely carried out in practice by the organization’s employers. Having discussed the recruitment process, it will be now relevant to have an idea about recruitment practices in India. The following section delineates the same.

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  • A Good Advertisement Copy: Characteristics and Elements

    A Good Advertisement Copy: Characteristics and Elements

    Meaning: An “ad copy” is the medium through which an advertiser expresses his views as a message to readers. This article explains about A Good Advertisement Copy with discussion by Characteristics and Elements. It refers to all the reading cases of an advertisement, whether it is short or long, and includes the title, sub-title, text or body, an advertiser’s name or initials. An ad copy is sometimes known as “advertising message”. Also, learn A Good Advertisement Copy.

    Understand and Learn, A Good Advertisement Copy: Characteristics and Elements.

    Ad copy can be anything from a simple text to art form made of aesthetics or to a celebrity playing in the background or appearing in admirable music or ad in the background. A product or brand advertisement is done through many mediums. There are newspapers and magazines in which there are many pages of advertising.

    The advertisement in this form is known as the print media. Advertising can do through visual and audio media, which are usually television channels and radio channels. Regardless of how the advertisement is done, the jingles in the advertisements displayed or displayed in the words, serve as a continuous reminder for the brand and its products in our memory.

    An ad copy helps people targeted to an organization to communicate a specific message. Advertising copy plays an important role in taking marketing efforts for customers. Making an ad copy for print media and electronic media differs on different aspects. While print media ads have a positive effect on the position and appearance of the position, the electronic media is focused on catching people’s hearts within a few seconds of the allotted time.

    The Concept of the study Explains – A Good Advertisement Copy: Characteristics of a Good Advertisement Copy, and Elements of a Good Advertisement Copy.

    Characteristics of a Good Advertisement Copy:

    This article throws light on the few main characteristics of a good copy of the advertisement.

    The following characteristics are:

    • Attention Value.
    • Suggestive Value
    • Memorizing Value.
    • Conviction Value.
    • Sentimental Value.
    • Educational Value, and.
    • Instinctive Appeal Value.

    Now Explanation Each:

    Attention Value:

    The copy of an advertisement should so draft as to easily draw the attention of the prospects. This is the first requisite on which depends on the effectiveness of the ad­vertisement. Attraction can bring about by pictures, by the use of display types, borders, price quotations, reply coupons, etc. Which one or which of them will be most suitable depends on the individual condition of the product and the market.

    Suggestive Value:

    The suggestion as to the use and quality of the product makes a copy of the advertisement a good one. The re­peated use of a suggestion, a command or a slogan can do the trick. Coca-Cola, Pepsi are examples.

    Memorizing Value:

    The copy of the advertisement should so draft as to make it suitable to stick to the memory of the in­dividual reader. Repetition of the advertisement is an effective way of creating memorizing value. In any copy of advertise­ment of a branded product, the advertiser must stress the brand name repeatedly. (Vim, Coca-Cola, etc.).

    Conviction Value:

    Convincing arguments add value to a copy of the advertisement. To create the conviction value, the advertiser will have to avoid both extremes it should neither be a plain notice to the prospects announcing the availability of a certain product nor should it use flowery and high-flown language to advertise a product, without giving any tangible and appealing reasons why the customer should prefer the product to the rival products in the market.

    Sentimental Value:

    Sentiments play a very important role in any matter. In advertising, it must not overlook that the sentiments of those for whom the advertisement is primarily meant rouse or at least not injured or adversely affected.

    Educational Value:

    A copy of the advertisement, though is commercial, we must not forget that the advertise­ment should contain information that has some educational value. An advertisement not only retains an existing market but creates the market for the future. The copy of the advertisement should be informative and must contain in it the ingredients that will help people to change their habits in such as to be conducive to create additional demand.

    Instinctive Appeal Value:

    Certain instincts are ingrained in human beings. The copy of the advertisement should so draft as to encourage those instincts that are relevant for the product advertised. Advertising is essentially the motivation of the po­tential consumer and to activate the motivation, an appeal is of very great significance.

    Generally speaking, a good of advertis­ing should direct to:

    1. Self-preservation instinct,
    2. Hoarding instinct,
    3. The instinct for self-display,
    4. Parental in­stinct and,
    5. Something for nothing instinct (vague desire’ to get something without paying for it).

    Based on these basic instinctive appeals, the follow­ing themes may lay down for a copy of good advertisement: pride, beauty, health, economy, comfort, fear, parental affec­tion, patriotism, achievement, emulation, and imitation.

    The Elements of a Good Advertising Copy:

    The make-up or parts of the copy of the good advertisement or advertising can view from two aspects – elements below are:

    1. Advertising theme, and.
    2. Advertising layout.

    Now, explain each one;

    Advertising Theme:

    A theme represents a particular viewpoint or a central idea with which the message is conveyed to the consuming public. The theme involves a rational appeal based on human emotions, desires or sentiments. Such well-thought-out and specific appeals became effective in arousing desire and in initiating action on the part of consumers.

    Elements of Good Advertisement Copy – The following are the common themes used in advertising:

    The theme of beauty:

    The sales appeal for cosmetics, perfumeries, and toilet products are usually based upon the theme of beauty. Accordingly, the message of the advertisement contains expressions like “For romantic or charming appearance, use product A”, “Product B ensures alluring or exquisite complexion”, or “Care your hair with product C for the glossy glimpse and luxuriant growth.”

    The theme of pride:

    The sales message in the case of pieces of jewelry, radios, costly clothes, motor cars, and others is laid upon the theme of pride since the acquisition of such products deems as proud possessions on the part of buyers. For example, “Prestige car means A”, “Radio B adds decency to any home”, “Discerning people prefer fabric C”, or “X’s Jewellery adorns fashionable ladies.”

    The theme of health:

    Food products and drugs are advertising through reliance upon the theme of health. To take some examples, “Product A supplies boundless energy and vigor”, “Health brings happiness—and the key to health help by product B”, “Product C keeps you free from disease”, or “Eminent physicians prescribe D for cold and cough.”

    The theme of comfort:

    Products which aid in giving comfort to the people at work or home are advertising through the theme of comfort. Elec­trical fans, air-conditioning plants, refrigerators, and the likes belong to the group of products meant for providing comfort.

    The theme of the economy:

    This is a common appeal use in many cases for making bargaining purchase, for saving money or for protecting costly things from decay and destruction.

    The theme of fear:

    The theme of fear utilizes by insurance companies and safety-vault operators in expanding the demand for their services. Possible dangers and their consequences are presenting in the copy of advertising for initiating action on the part of their customers.

    The theme of emulation:

    The desire for imitation strongly implants in human nature. By giving illustrations and factual information as to what some distinguished persons do, the message of the advertisement may call for imitation on the part of others. To take one case, “The succ­essful men all over the globe use Blade A.”

    The theme of distinction:

    The desire for individual recognition, distinct social status, and superior community standing is inherent in human beings. As an outward mark of that distinction, selected products of very expensive nature are acquiring by a class of people who may be high-borns or aristocrats.

    The theme of affection:

    Baby foods, toys, and other playthings are advertising based on this theme. By directing appeal towards parental love, the copy of advertising becomes effective in securing action on the part of buyers.

    The theme of patriotism:

    The appeal for products of national origin is sometimes based upon national sentiments. For the prosperity of a nation and its citizens, the theme of patriotism makes out a case for using national products in preference to goods of foreign origin.

    Advertising Layout:

    The layout is the logical arrangement of compo­nents of an advertisement in the copy and deals with the systematic presentation of the message. The pattern of layout varies according to the medium to use.

    For newspapers and magazines, the presentation of the message is visible in written words and pictures; in radio, the presentation is audible in spoken words and sound effects; and in television, both audio and visual presentations are practicable. In all cases, balance and symmetry are of prime importance in presenting the message within the allotted space or time.

    Visual layout in any publication can divide into the following three parts:

    Headlines:

    Headlines are using in bold letters for drawing atten­tion of the consuming public. The size and length of the headline must be appropriate to the general format and page size of the publication; it must also be in keeping with the theme of advertising and with the entire makeup of the copy.

    Usually, short headlines are giving stressing some facts, suggestions, prepositions or convictions. In magazines and trade journals, color printing adopts for headlines to make than more promi­nent and conspicuous.

    Illustrations:

    Illustrations are giving by way of pictures, symbols or photographs for drawing attention, creating interest as well as for arousing desire. Significant illustrations may be worth a thousand words in securing public reception for the product.

    But limits of decency must not exceed in presenting pictures or photographs which should always be in good taste. Obscene and objectionable pictures do more harm than good to the cause of advertisement.

    Texts:

    Texts provide the heart of the message of advertisements, and they are to weave around an advertising theme. For an individual copy, one theme is desirable; a multiplicity of themes creates confusion and weakens the strength of appeal. For presenting the text, different practices are following in the business world.

    In some cases, the text prefaces by a statement of the problem to the reader and follow by a solution thereof. In other cases, reading materials are presenting analytically with pertinent facts and data. Furthermore, the text may present by the use of a typeface in one copy or of hard lettering in another copy.

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  • What is the role of Cultural Sensitivity in International Trade?

    What is the role of Cultural Sensitivity in International Trade?

    Explanation and Learn, What is the role of Cultural Sensitivity in International Trade?

    Learn What? Culture plays an important role in the life of people as it is closely associated with them. It is very necessary to understand what a culture requires and what emotions are attached to it. Different countries follow different culture and because of this, some things will be acceptable in some countries whereas the same things will appear to be rude in other countries because of cultural difference. Also Learned, What is the role of Cultural Sensitivity in International Trade?

    What is cultural sensitivity?

    Meaning: Cultural sensitivity is conscious that cultural differences are present among the people as well as cultural differences, and these differences and similarities can affect attitude, behavior and communication styles. Cultural sensitivity is often used as a synonym for cultural awareness, which refers to the ability to keep itself in someone else’s shoes. Being culturally sensitive should be able to understand why someone else thinks or feels different things from you.

    What It Matters for Trade?

    Business owners and managers have generally defined ways to do things – patterns of habits, customs and behavior patterns. In many ways it makes sense. Policies and procedures keep the business running in the right order. However, it is also common to face people from different cultural, religious and social backgrounds in the business world. These people can have different ways of doing business and communicating their thoughts. What can be normal or acceptable for a businessman to be unfavorable or unusual for someone else? When communicating with individuals from a different background, being culturally sensitive, you can become aware of their customs and beliefs and respect them.

    People who are culturally sensitive will know that the difference between the culture of different people can create differences in their relationship with respect to the way they behave, communicate etc. Hofstede defined culture as “the manner in which the mind is programmed such that it can differentiate the people of one category with those of other.” a culturally sensitive person should try to adopt the culture of another country, their traditions, their way of living, their lifestyle etc.

    Nowadays people are getting closer to each other so toleration, dialogue between people of different culture and respect towards their culture and respect for diversity becomes more important. Learning and trying to understand the customs and culture of the foreign country indicates respect for the other country and for any business relationship to be successful respect for each other is very essential.

    Many employers feel and have sensed that cross-cultural sensitivity is an important skill and proper care should be taken when dealing in and trading with the international market. In the domestic market, people will know what to do and how to do but to achieve the same motive in the different country with the same concept and then getting success by using same interpersonal professional skills is more important. Proper training should be provided should to the staff about the nature of the place, its scope, and language, values and aesthetics.

    When people are traveling from one country to another it is necessary that they do a research about the culture of the country in which they are traveling so that they can go well prepared, which can save them and people around them from an embarrassing situation. Doing business internationally means management of culture of different countries and for maintaining international business relations, people will have to deal with that countries norms, rules, values, and regulations. Overall people need to involve in the culture of different people and try to adapt to their cultural skills and style.

    The right type of knowledge for right kind of job is very essential for doing business globally. The ability to negotiate better, understanding the cultural problems and becoming an insider often give a competitive edge in the business. Managers should possess the high level of managerial skills as the relationship between various business networks depends upon the manner in which the manager interact and behave with international clients and how much capacity they are in dealing with crossing cultural boundaries. Cross-cultural training helps in improving success by trying to improve the level of personal cultural awareness and this will help in understanding the culture of other people.

    In growing business environment it becomes very essential for the firm to have culturally skilled workers having the ability to work in the international business arena. In the cross-cultural business, sector trust plays a very important role in maintaining a business relationship. Trust can conceptualize as a belief which is influenced by the way the partners behave and how much reliable they are.

    The companies should provide training to their staff for each and every situation that they are likely to face as it can also help to develop various strategies that are required for improvement of self-development process. It will enable them to see the world with a different concept through the eyes of their foreign partners. This will help them to learn how to tackle different problems faced by their foreign partners.

    In a global economy, culture plays a vital role to make any business transactions successful economically. The firm should be able to cope up with the international differences that arise from different culture and for that, the international culture has to be understood by the managers. The partners must be able to understand each other’s culture and for this, a lot of time and effort is required. By trying to understand the partner’s cultural needs and their culture they will try to solve the cultural differences and in this way, they are likely to behave in a more systematic and sensitive towards the culture. Globally, if cultures are not well understood then the chance of the firm surviving internationally is very low.

    The neglected role of Cultural Sensitivity in International Trade:

    In this globalized economy, business is growing very fast and the companies are starting to expand in international markets – advanced technology, strong capital hold, cost-benefit, political influence are some of the factors that help in the growth of the business. Increasing competition causes most of the companies to collaborate with the foreign partner. Most of the companies fail in understanding the importance of cross culture resulting in the failure of cross-border partnerships and collaboration.

    Most of the companies that plan to expand globally face two problems, first one is to identify the qualities and the attributes of a successful global manager and the second one are finding executives with those attributes. Thus executives who are given foreign responsibilities are usually selected on the basis of them having proper knowledge of their language and should have knowledge of international experience. Culture basically shows the kind of the behavior that is accepted by the society.

    Given below are some examples that show negligence of cultural sensitivity in international trade:

    • In Spain, coca cola had to withdraw its 2 liters of bottles as Spaniards did not have refrigerators having such large compartments for their storage.
    • Coca-cola, when was launched in China the name, sounded like “Cooke-Koula” which means a thirsty mouth which is full of wax naturally this was not accepted by the people and they decided to ban the product.
    • When coloring in 800*800 pixels on an India map, to show disputed Kashmir territory Microsoft colored it in eight different shades and this led to fury in India and they banned the map. The difference in green means that Kashmir is shown as Non-Indian.
    • Pepsodent wanted to sell its toothpaste in south-east Asia by advertising that it “whitens your teeth “but they found out the local there use betel nuts to blacken their teeth.
    • Gerber, a U.S. firm wanting to sell baby food in Africa, displayed a baby on the packet but soon they realize that the product had flopped as in Africa what the content is in the packet that is displayed on the product.
    • At African port of stevedores saw the internationally recognized symbol of fragile which means broken wine glass and the staff working there assumed that the box contains broken glass and they threw it inside the sea.
    • McDonald’s spent the huge amount of money on making advertisement showing Chinese customer kneeling before a McDonald’s staff asking him to accept the expired discount coupon. The ad was called off due to lack of cultural sensitivity on behalf of McDonald’s in China begging is considered to be an embarrassing and shameful act.
    • Green is the favorite color for many Muslim countries but the same color is considered as a symbol for illness in Malaysia. White is associated with death, sadness and mourn in India, China etc but the same color is brides wedding dress in English country.
    • According to Hindu culture cow is considered as divine and sacred and the Hindus see the cow as a gift given by God. When McDonald’s entered in India in 1990 it created a big problem as they use beef and the small amount of beef extract in the oil. The Hindus considered this an offense and they protested by refraining from going to McDonald’s and asking them to stop the use of beef in their food products.

    The company should basically know what is the culture of the country in which they want the deal as this will help in setting a company in that country more easily and successfully. For an international business to be successful the company should make all efforts to try to understand the culture and create awareness about their culture and in this way try to solve the cultural differences mutually. From the above examples we can see that many companies have faced failure by not trying to understand the culture of other country but trying to learn from their failure as to where they went wrong is more important.

    Thus understanding the culture of different countries help to develop and establish the business in that country. By creating general awareness and taking extra efforts to know about the culture and to take the keen interest in learning it will help in solving the cultural differences between the partners. Patience, courtesy and a little bit of curiosity will help in proper communication with each other. Due to lack of cross-cultural sensitivity, there are chances of the business failing to a great extent because what may seem to be right in one country may seem to be not acceptable in another country. So proper research has to be done when a company is planning to start a business in the new country.

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  • A Good Advertisement Copy: Features, Types, and Benefits

    A Good Advertisement Copy: Features, Types, and Benefits

    The advertisement copy refers to the written contents of the advertisement including its text and headline. This article explains about A Good Advertisement Copy with discussion by Features, Types, and Benefits. It can refer to as the heart of advertising and should draft with utmost care; otherwise, all the money invested in carrying out the advertisement campaign will go to waste.

    Explanation and Learn, A Good Advertisement Copy: Features, Types, and Benefits.

    In the words of William J. Stanton “The copy in an advertisement is defined as the written or spoken material in it, including the headline, coupons and advertiser’s name, and address as well as the main body of the message”. Simply stated advertisement copy means the total structure relating to the message which the advertiser wants to convey by using any medium of advertisement.

    The advertisement copy should prepare in such a manner as to leave ever­lasting impression on the reader. The job of drafting the copy should entrust to an expert. The reader should not only read but understand and believe the contents given in the advertisement copy.

    It should properly work and cover every detail about the product. Various considerations or essentials of a properly drafted advertisement copy are as under.

    The Concept of the study Explains – A Good Advertisement Copy: Features of a Good Advertisement Copy, Types of a Good Advertisement Copy, and Benefits of a Good Advertisement Copy.

    The Features or Characteristics of a Good Advertisement Copy:

    These also know as salient features or characteristics of a good advertisement copy.

    It Should Be Simple:

    The first important ingredient of an advertisement copy is that it should write in simple language. It should be capable of proper understanding. They should not use ornamental and tough words rather short, simple and properly understandable words.

    It Should Be Capable Of Holding The Reader’s Attention:

    An advertisement copy should be capable of holding the attention of the reader. It should present in such a manner which attracts the consumer immediately.

    The following methods may undertake to hold the attention of the reader:

    • Headlines should properly word and attractive. It should be short and easy for the reader to remember.
    • Use of pictures and sketches should be in direct relation to the product to advertise. A good sketch and drawing will be greatly helpful in explaining the product.
    • An attractive border may insert around the advertisement copy to distinguish it from other advertisements. Underlining the keywords and leaving blank space at the bottom of the copy is also helpful in drawing the reader’s attention.
    • Quoting the price of the product in the advertisement copy is also helpful in holding the attention of a reader. This would be more helpful if the price of the commodity is low.
    • The insertion of reply coupons in the advertisement copy is also helpful in attracting the people.
    It Must Be Suggestive:

    The advertisement copy should be capable of suggesting the reader about the utility and use of the product. Effective slogans can use to give suggestions to people. For example, in case of camp Cola, it is written in the advertisement copy that “life is full of camp cola times”, similarly in case of State Bank of India, it is advertised, “protect your future with State Bank of India”. All these slogans have suggestive value. Suggestions may also give with the help of certain pictures in the advertisement copy.

    It Should Have Conviction Value:

    The advertisement copy shall be able to have an everlasting impression on the reader if the suggestions are backed by convincing arguments. The reader should not have any doubt on the quality of the product. He should fully convince and satisfied. Exaggeration in explaining the qualities’ of a product must check. An appeal about the outstanding features of the product must make. It should state in simple language so that the reader could understand easily.

    In the case of Chelpark fountain pen ink, it is written that it cleans your pen while writing, contains clean x for better pen protection. Similarly in case of Forhan’s toothpaste, “it is ideal for the gums” and “protects your teeth” some organizations assure “money-back guarantee” to convince the people about the quality of the products.

    It Should Educate The People:

    The advertisement copy should tell the people about the use and operation of a product. It should also impart new uses of a product with which the people are not familiar. An advertisement copy containing information about the use, sources from where the product can obtain, price and services available along with the product is greatly helpful in enhancing the demand and enlarging the sales.

    For example, in the case of Hawkin’s pressure cooker, a booklet is also given to the buyer containing methods of preparing various vegetables, soups, and puddings, etc. with the help of the cooker. Similarly, in case of a refrigerator, a booklet containing various directions about proper use and preservation of the refrigerator are giving.

    It Should Have Memorising Value:

    The advertisement copy should prepare in such a manner that a reader gets the everlasting impression about the product. It can successfully create by repeating the advertisement time and again. Repetition projects the permanent image of the product on the reader’s mind. Trademarks and brand names can use successfully for achieving this end. Dalda, Thums-up, Bournvita, and Surf have successfully achieved memorizing value. The names of these products are very common among people.

    It Should Be True:

    An advertisement copy should be truthful. It should not misrepresent and conceal the facts about the product. Rather it should lay down the limitations in the product. For example, a cloth merchant should specify the fading of color and shrinkage of yarn, if it is so. If these limitations are not brought to light, the buyer eventually comes to know about them after using the product. This will shatter the confidence of the buyer in the product and the very aim of the advertisement defeat.

    Types of a Good Advertisement Copy:

    As told earlier, the method or style of presentation is to do with how the message presents. It speaks of the different types of advertising copies to arrest, inform, impress and impel the reader; certain elements are to be present in a copy such as attention, suggestion, meaning, conviction, sentiment, education, and instinct.

    Good Advertisement Copy is classifying in several ways in their types. However, the most practical one is to classify into six types as:

    • Institutional.
    • Reason why?
    • Human interest.
    • Educational.
    • Suggestive and.
    • Expository.

    Now, explain each one;

    Institutional Copy:

    Institutional Copy neither sells nor the products neither the service but the name of the business house. The aim is to build the sound edifice of a reputation for the selling house. It seeks to build goodwill through its philosophy, objectives, and policies towards public so that the prospects remember it.

    Reason Why Copy:

    Reason Why Copy offers reasons as to why the customer expects to buy a product or service of the advertiser. It appeals straight to the intellect or the judgment of an individual than emotion or impulses. It attempts to prove the product superiority using evidence in the forms of performance test, records, testimonials, guarantees and the like.

    Human Interest Copy:

    Human Interest Copy appeals to the emotional and the senses than intellect and the judgment, sympathy, affection, love, fear, humor, curiosity and other emotional appeals are used to the sense of sight, touch, taste, smell, and hearing.

    It tells about the product about the people instead of conforming to the facts about the products. It takes several forms of which four are very significant namely, “fear”, “humorous”, “story” and “predicament” copy.

    Suggestive Copy:

    Suggestive Copy tries to suggest or pinpoint or convey the message of the advertiser directly or indirectly to the readers. Much is left to the reader to infer the ad message. Like a poem, suggestive language is freely used where the hidden meaning is to pick by the readers. Such a copy can be “direct” or “indirect” suggestive copy. The first tells directly about the products or services of the company while the latter does indirectly.

    Expository Copy:

    Expository Copy is the open copy that exposes, unlike suggestive copy. It is so open that the facts are given in a very simple and clear way so that there is no need for interpretation. The information given is so clear and concise that hardly it takes the reader’s brain. It makes possible effortless grasp and acts.

    Advertisement Copy is the soul of an advertisement. An advertisement copy is all the written or spoken matter in an advertisement expressed in words or sentences and figures designed to convey the desired message to the target consumers.

    In print media, an advertisement copy is made-up of head-line, sub-headlines, the body of the copy, illustration logo-type, slogan, and the brand name. Strictly speaking, the written content of an ad copy is the product of the collective efforts of copy-writers, artists and the layout-men.

    As well as, Copywriter and artist must collaborate to provide an advertisement though copywriting precedes or succeeds the artwork and the layout.

    The Benefits of A Good Advertisement Copy:

    Whether a copy is effective or ineffective is a matter of personal judgment. It is very difficult to judge as its evaluation is purely subjective and perceptive. However, a good or effective copy is one that succeeds in reaching the target consumers to create favorable benefits towards the product and the producers, impelling an action on the part of the consumer to buy.

    A good advertisement copy has the following Benefits:

    It is brief:

    Brevity is the soul of wit. Most readers are interested in shorter advertisements. Being brief is not dropping words or chopping sentences. It is the meticulous work of eliminating and substituting the words without jeopardizing the meaning. This cuts to the core, it is to the point to cover all.

    It is clear:

    A clear copy is one which is easily and quickly read and grasped by the readers. It is unambiguous and self- explaining. It is one that clicks fast. Clarity gives clue to interpretation. How a copy is interpreted is dependent on factors like local traditions habits, customs, and nationality. Clarity adjusts to these points.

    It is apt:

    A copy is apt that matches the needs and counts of the prospects. Writing an apt copy is the art of putting in the words that create a strong desire to possess the product where the product features or the qualities satisfy the consumers’ desire to possess. The Copywriter is to place himself in the position of a customer to make it apt. He is to use the most suitable USP.

    It is personal:

    A personal copy is specific where generality dismisses to do away with ambiguity. A personalized copy centers on the prospect. It presents something of interest to the prospect. It’s an individualized appeal copy. It is written from “prospect” to “product” rather than “product” to “prospect”. The copy has “your attitude”.

    It is honest:

    Credibility or believability of an advertisement message is decided by the extent of honesty. An ad to be good must be truthful. Misleading and miss-presented facts made in the copy only damage the reputation of selling the house. One of the surest ways of winning the hearts of the consumers is, to be honest. “Honesty”, here, implies “commercial honesty” and not the “judicial”.

    It is conforming:

    Every ad copy is to conform to standards, rules, and regulations acceptable to the advertising media and the laws of the land. Anywhere in the world, no copy is acceptable to any media that offends the morality, declines decency and ravages religious susceptibilities of people.

    That is why; we have not come across ads on cigarettes and alcohols on radio and television. No advertiser can violate the provisions of the Act of Names and Emblems, Drugs Acts of 1940, 50, and 54.

    A Good Advertisement Copy Features Types and Benefits - ilearnlot
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  • The Strategies of Capabilities in Production Management!

    The Strategies of Capabilities in Production Management!

    Explain and Learn, The Strategies of Capabilities in Production Management!

    What is Capacity Planning? The production system design planning considers input requirements, conversion process, and output. The concept of the study – The Strategies of Capabilities in Production Management. Capacity Planning defines, Strategic Capacity Planning, and Explaining of Capacity strategies. After considering the forecast and long-term planning organization should undertake capacity planning. Also learn, The Strategies of Capabilities in Production Management!

    Capacity is defined as the ability to achieve, store or produce. For an organization, capacity would be the ability of a given system to produce output within the specific time period. In operations, management capacity is referred as an amount of the input resources available to produce relative output over the period of time.

    It is a process of governing the production capacity obligatory by a manufacturing unit to meet out their varying demand for their products. It facilitates the organization to achieve their production level during the time of demand. It is the level of input that is obtainable to make the needed product in a particular period of time. It helps the management to take better management decision for optimum utilization of the resource.

    In general, terms capacity is referred to as maximum production capacity, which can be attained within a normal working schedule. Capacity planning is essential to be determining optimum utilization of resource and plays an important role decision-making process, for example, the extension of existing operations, modification to product lines, starting new products, etc.

    Understand the Strategic Capacity Planning: A technique used to identify and measure the overall capacity of production is referred to as strategic capacity planning. Strategic capacity planning is utilized for the capital-intensive resource like the plant, machinery, labor, etc.

    Strategic capacity planning is essential as it helps the organization in meeting the future requirements of the organization. Planning ensures that operating cost is maintained at a minimum possible level without affecting the quality. It ensures the organization remain competitive and can achieve the long-term growth plan.

    Strategies of Capabilities:

    The Capacity strategies can explain into two types:

    • The short-term response, and.
    • Long-term response. 
    Short-term strategies:

    In short-term periods of up to one year, fundamental capacity is fixed. Major facilities are seldom opened or closed on a regular monthly or yearly basis. Many short-term adjustments for increasing or decreasing capacity are possible, however. Which adjustment to make depend on whether the conversion process is labor or capital intensive and whether the product is one that can be stored in inventory.

    Capital intensive processes rely heavily on physical facilities, plant, and equipment. Short-term capacity can be modified by operating these facilities more or less intensively than normal. The cost of setting up, changing over and maintaining facilities, procuring raw materials and managing inventory, and scheduling can all be modified by such capacity changes. In labor-intensive processes, the short term capacity can be changed by laying off or hiring people or having employees overtime or be idle. These alternatives expensive, though since hiring costs, severance pay, or premium wages may have to be paid, the scarce human skills may be lost permanently.

    Strategies for changing capacity also depend upon long the product can be stored in inventory. For products that are perishable (raw food) or subject to radical style changes, storing in inventory may not feasible. This is also true for many service organizations offering such products as insurance protection, emergency operations (fire, police etc,) and taxi and barber services. Instead of storing outputs in inventory, inputs can be expanded or shrunk temporarily in anticipation of demand.

    Long-term Responses:

    Capacity expansion strategies- capacity expansion adds capacity, within the industry, to further the objectives of the firm to improve the competitive position of the organization. It focuses on the growth of the Organization by enabling it to increase the flow of its products in the industry. Capacity expansion is a very significant decision; the strategic issue is how to add capacity while avoiding industry overcapacity. Overbuilding of capacity has plagued many industries e.g. paper, aluminum and many chemical businesses. The accountants’ or financial procedure for deciding on capacity expansion is straightforward.

    However, two types of expectations are crucial:

    • Those about future demand, and.
    • Those about competitors behavior.

    With known future demand, organizations will compete to get the capacity on stream to supply that demand, and perhaps preempt such action from others.

    Horizontal and vertical integration:  Horizontal and vertical integration add capacity, within the industry, to further the objectives of the firm to improve the competitive position of the organization.

    Horizontal Integration: Horizontal integration is the growth of a company at the same stage of the value chain. Horizontal integration consists of procuring (related companies, products or processes) the company could start the related business within the firm, which would be an example of internal concentric diversification.

    Vertical Integration: Vertical integration is the combination of economic processes within the confines of a single organization. It reflects the decision the decision of the firm to utilize internal transaction rather than the market transaction to accomplish its economic purpose. It is expressed by the acquisition of a company either further down the supply chain, or further up the supply chain, or both.

    Backward Integration: In case of backward integration, it is critical that the volumes of purchases of the organization are large enough to support an in-house supplying unit, If the volume of throughputs is sufficient to set up capacities with economies of scale, an organization will reap benefits in production, sales purchasing, and other areas.  

    Takeover or Acquisitions: Takeover or acquisition is a popular strategic alternative to accelerate growth. Major companies which have been taken over the post-liberalization period include Shaw Wallace, Ashok Leyland, Dunlop, etc. Acquisition can either be for value creation or value capture.

    The Strategies of Capabilities in Production Management - learnlot
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