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.

  • Explaining of Product Design Tools in Production Management

    Explaining of Product Design Tools in Production Management

    Several tools and techniques are available for the efficient design and development of products. The Concept of study – Explaining of Product Design Tools in Production Management with Techniques for Improving Product Design Process. These tools address all the stages of design and development. Some of the tools that are available for product designers to understand customer’s needs and translate them into meaningful design and manufacturing specifications, as well as some guidelines for incorporating the manufacturing requirements at the design stage.

    Understand and Learn, Explaining of Product Design Tools in Production Management.

    Understanding Customer Needs: The first step of the product design and development process is to know what exactly the product is going to be. Organizations need various methods by which they can obtain information regarding the needs of the customers.

    This can be by:

    Market Research:

    In market research, the target group identifies, and appropriate sampling is done within the target group. Using structured data collection methods, such as questionnaire surveys and interviews, information solicit from the sample. The information subjects to statistical and other analytical reasoning before arriving at customers’ preferences and needs.

    We talk about Production and market systems, laser marking systems running around 30 years. They produce materials such as METALS, PLASTIC, FOILS AND PAINTS, ORGANIC MATERIALS, and other application. LASIT is a company of one hundred people who develop laser marking technologies with passion and dedication. They are big enough to make the difference, but also small enough to take care of every single customer. The Study and Design team ensures traceability, production chain control, brand visibility, and industrial process automation.

    Competitive Analysis:

    Understanding what the existing offerings are now and how the gaps and problems identified could be eliminated can sometimes offer valuable inputs to the designer. One method of competitor analysis is to “reverse engineer” the product. The competitors’ product is dismantled down to individual components level and some detailed studies are conducted on them. These may sometimes reveal the probable processes utilized in their manufactures such as the choice of materials and their specifications and the relationship between these parameters and performance. Reverse engineering is one crude method of a larger issue of benchmarking.

    In the case of benchmarking, competitive product offerings are chosen for detailed analysis. Specific parameters are chosen for the benchmarking exercise. For example, cost, features, performance, ease of maintenance, ease of manufacture, assembly, and distribution are some of the issues on which comparative study may be possible. Once these parameters are identified, data collection and analysis will reveal the positioning of ones’ products vis-à-vis the competitor’s offerings. Another method for competitive analysis is to develop perceptual maps. Perceptual maps are the graphical representation of various competitors offering and that of ones’ own proposed product and/or service.

    Quality Function Deployment:

    The goal of good product design is to bring out products that satisfy customer’s needs better than those of the competitions. However, the attributes of competitor satisfaction are often qualitative. On the other hand, the product design process results in a bundle of quantitative attributes about the product. The challenge, therefore for a designer is to ensure that the transformation from qualitative attributes to quantitative ones is smooth and complete.

    Quality function deployment is a Japanese tool that helps organizations achieve this transition systematically and progressively Quality Function Deployment achieves these transition .in four stages. The first stage links customer needs to the design attributes required. In the second stage, the design attributes form the basis for actions that the firm needs to take to achieve these attributes. The actions identified at this stage are the basis for third staging arriving at the specific decisions to be implemented. In the fourth stage, the implementation decisions drive the process plan to deploy.

    Value Engineering:

    Value Engineering refers to a set of activities undertaken to investigate the design of components in a designing process strictly from a cost-value perspective. Typically, the design professionals brainstorm various options in conjunction with procurement, personnel, suppliers, and production personnel, concerning the value-cost dimensions of the product being designed.

    Usually, several questions are addressed, which include the following:

    • Can we eliminate certain features from design?
    • Are there instances of over design of certain components increase the cost?
    • Are there certain features of the design that cost more than they are worth?
    • Is it possible to replace the proposed method of manufacture with less costly ones?
    • Is it possible to outsource some of the components?
    • Can we eliminate some parts and replace them with standard parts?
    • Are there opportunities for cost-cutting by developing import substitution methods?

    Design for manufacturability:

    Design for manufacturability (DFM) is a structural approach to ensure that manufacturing requirements and preferences consider fairly early in the design process without the need for extensive coordination between the two. DFM guidelines address three sets of generic requirements:

    Reducing the variety:

    They below;

    • Minimize the number of parts.
    • Minimize subassemblies.
    • Avoid separate fasteners.
    • Use standard parts when possible.
    • Design parts for multi-use.
    • Develop the modular design, and.
    • Use repeatable and understood processes.

    Reducing cost:

    They are;

    • Analyze failures, and.
    • Assess value rigorously.

    Considering operational convenience:

    They follow are;

    • Simplify operations.
    • Eliminate adjustments.
    • Avoid tools.
    • Design for minimum handling, top-down assembly, and efficient and adequate testing.

    Tools for mass customization:

    Mass customization provides a structural set of ideas and tools to provide high levels of customization without increasing the complexity of planning and control operations.

    The various tools and techniques of mass customization are;

    • Employ a variety of reduction techniques.
    • Promote the modular design, The advantage of the modular design is that with fewer subassemblies (or modules) it will be possible to create a very large number of final products.
    • Make use of the concept of a product platform. A product platform is a collection of assets that share by a set of products. These assets can be components, including parts, designs, fixtures, and tools or manufacturing processes for manufacturing or assembly.

    Techniques for Improving Product Design Process:

    Many companies who know for their creativity and innovation in product design fail to get new products into the markets. The problems associated with converting ideas into finished products maybe because of poor manufacturing practices and poor design. Design decisions affect sales strategies, the efficiency of manufacturing, production cost, the speed of maintenance, etc.

    A complete restructuring of the decision-making process and the participants in the decision process is essential for the improvement in the design process. Over the wall concept of design i.e., a series of walls between various functional areas must be broken down and replaced with new co-operative interaction amongst the people from various functional areas.

    The improvement of the design process can achieve through:

    1. Multifunctional Design Teams:

    The team approach to product design has proved to be more beneficial worldwide. The participants of the design team include persons from marketing, manufacturing, and engineering, and purchase functions for the effective design process. The critical success factor between success and failure of new product launches is the involvement and interaction of creates – make and market functions from the beginning of the design product.

    2. Marking Design Decisions Concurrently Instead of Sequential Decisions:

    Concurrent design decisions reduce the time and cost of designs decision. Decisions are overlapping rather than sequential concurrent design is an approach to design that teams. The concurrent design process believes in “Cost plus” prices as contrasted by cost minus pricing in concurrent design.

    3. Design for Manufacturing and Assembly (DFMA):

    It is a process of designing a product so that it can be manufactured with ease and economically. It also calls design for production. Designing for production is a concept by which a designer thinks about how the product will make as the product designing so that potential production problems caused by design and can resolve early in the design process. This concept believes in simplifying design and standardizing parts and processes used.

    The basic principles of DFMA are:

    1. Minimize the number of parts.
    2. Use common components and parts.
    3. Use standard components and tools.
    4. Simplify assembly.
    5. Use modularity to obtain variety.
    6. Make product specifications and tolerances reasonable.
    7. Ensign products to be robust.

    4. Design Review:

    Before finalizing a design, formal procedures for analyzing possible failures and rigorously assessing the value of every part and components should be followed. The techniques such as Failure Mode Effect and Criticality Analysis FMEGAX Value Engineering (VE) and Fault Tree Analysis (FTA). FMECA is a systematic approach to analyzing the causes and effects of product failures. It anticipates failures and prevents them from occurring.

    Value analysis is a design methodology developed by Lawrence Miles in the late 1940s that focuses on the function of the product, rather than on its structure or form and tries to maximize the economic value of a product or component relative to its cost. Fault Tree Analysis (FTA) emphasizes the interrelationship among failures. It lists failures and their causes in a tree format.

    5. Design for Environment:

    Design for Environment (DOE) involves designing products from recycled materials, using materials or components, which can be recycled. It promotes the concept of green products clean energy and environment-friendly products.

    6. Quality Function Deployment (QFD):

    Making design decisions concurrently rather than sequentially requires superior co-ordination amongst all the participants involved in designing, producing, procuring, and marketing. QFD is a powerful tool that translates the voice of the customer into the design requirements and specifications of a product. It uses inter-functional teams from design, marketing, and manufacturing.

    QFD process begins with studying and listening to customers to determine the characteristics of a superior product. Through marketing research, the consumer’s product needs and preferences define and broken down into categories called “Customer Requirements” and the weight based on their relative importance to the customer.

    Customer requirements information forms the basis for a matrix called the house of quality. By building the house of the quality matrix, the cross-functional QFD teams can use customer feedback to make engineering, marketing, and design decisions.

    The matrix helps to translate customer requirements into concrete operating or engineering goals. QFD is a communication and planning tool that promotes a better/understanding of customer demands, promotes a better understanding of design interactions, involves manufacturing in the design process, and provides documentation of the design process.

    Explaining of Product Design Tools in Production Management - ilearnlot
    Explaining of Product Design Tools in Production Management, Image Credit to Pixabay.
  • Explaining Product Development in Production Management!

    Explaining Product Development in Production Management!

    A successful product development requires a total-company effort. The concept of the Study – Explaining Product Development in Production Management: Standardization – advantages and disadvantages, Simplification, Specialization – advantages and disadvantages, Diversification – advantages and disadvantages, and Automation – advantages and disadvantages. The most successful innovating companies make a consistent commitment of resources to product development, design a new product strategy that is linked to their strategic planning process, and set up formal and sophisticated organizational arrangements for the managing product development process. Also learn, Explaining Product Development in Production Management!

    Understand and Learn, Explaining Product Development in Production Management!

    The product development process for finding and growing new products consist of eight major steps as explained below;

    • Idea generation
    • Idea screening
    • Concept development and testing
    • Marketing Strategy Development
    • Business analysis
    • Product Development
    • Test marketing
    • Commercialization

    We shall briefly describe these steps: 

    Following are:

    Idea Generation: 

    It is a systematic search for new product ideas. A company has to generate many ideas in order to find good ones. The search for new products should be systematic rather than haphazard. Top management should state what the products and markets to emphasize. It should state what the company wants from its new products, whether it is high cash flow, market share or some other objective. To obtain a flow of new-products ideas, the company can tap many sources. Major sources of product ideas include internal sources like customers, competitors, distributors, and suppliers. It has been found that more than 55 percent of all product ideas come from internal sources.

    Idea screening:

    The purpose of idea generation is to create a large number of ideas. The purpose of the succeeding stages is to reduce that number. The first reducing stage is idea screening. The purpose of screening is to spot good ideas and drop poor ones. Most companies require their executive to write up the new product ideas in a standard format that can be reviewed by a new product committee. The write up describes the product, the target market, the competition and makes some rough estimate of market size, product development time and costs, manufacturing costs and rate of return. The committee then evaluates the idea against a set of general criteria.

    Concept Development and testing:

    Customers do not buy product ideas, they buy the product concepts. The concept testing calls for testing new product concepts with a group of target consumers. After being exposed to the concept, consumers then may be asked to react to it by asking a few questions.

    Market strategy development:

    The next step is market strategy development, designing an initial marketing strategy for introducing the concept to the market. The market strategy statement consists of three parts:

    • The first part describes the target market; the planned product positioning, market share and profit goals for the first few years.
    • The second part of the marketing strategy statement outlines the product planned price, distribution, and marketing budget for the first year.
    • The third part of the marketing strategy statement describes the planned long-run sales, profit goals, and marketing mix strategy.
    Business Analysis:

    Once management has decided on its product concept and marketing strategy, it can evaluate the business attractiveness of the proposal. Business analysis involves a review of its sales, cost, and profit projections for a new product to find out whether they satisfy the company‘s objectives.

    Product development:

    If the product concept passes the business test, it moves into product development. Here, R&D or engineering develops the concept into a physical product. The R&D department will develop one or more physical versions of the product concept, R&D hopes to design a prototype that will satisfy and excite consumers and that can be produced quickly and at budgeted cost. When the prototype is ready it must be tested. Functional tests are then conducted to make sure that the product performs safely and effectively.

    Test Marketing:

    If the product passes functional and consumer tests, the next step is test marketing, the stage at which the product and marketing program are introduced into more realist marketing setting. This allows the marketer to find potential problems so that these could be addressed.

    Commercialization:

    Is introducing the new product to the market.

    Tools for Product Development: 

    The following are various product development techniques adopted by different organizations: 

    Standardization: 

    This means fixation of some appropriate size, shape, Quality, manufacturing process, weight, and other characteristics as standard to manufacture a product of desired variety and utility e.g. manufacture of television sets of standard size of the screen using standard components and technology; shaving blades are made of standard size and shape to suit every kind of razor. The concept of standardization is applicable to all factors of production namely men, materials, machines and finished goods. These standards can become the basis to evaluate the performance of various components of production in the manufacturing process. In the words of Behel, Smith, and Stackman:

    “A standard is essentially a criterion of measurement, quality, performance, the practice established by custom, consent or authority and used as a basis for comparison over a period of time. The setting of standards and the coordination of the industrial factors to comply with these standards and to maintain them during the periods for which they are effective is known as industrial standardization”.

    According to Dexter S Kimball of production control operation in the manufacturing, the sense is the reduction of any one line to fixed types, sizes, and characteristics.” Standardization becomes the basis of production control operations and works as a catalyst in directing and operating the working of a business enterprise. It identifies and compares various products, systems, and performances in an enterprise. It is the function of the department responsible for designing the product to provide the guidelines and infrastructure for standardization of the whole system keeping into consideration the designing stage towards standardization may be too expensive to be rectified.

    For an organization designing the product without considering the standardization, aspect is of no value of significance. Franklin F. Folts has described the concept of standardization as,” simplification of product lines and concentration on a restricted predetermined variety of output is one common application of the principles of standardization may be extended to all factors in the production process”. Standardization is an instrument to manufacture the maximum variety of products out of the minimum variety of components by means of a minimum variety of machines and tools. This decreases working capital requirements and a reduction in manufacturing costs.

    Standardization also implies that non-standard items are not to be manufactured except when consumers order them specially. Some standards are enacted by law viz. automobile windscreen which must be made of safety glass. Usually, there are institutions, societies, and governmental departments that regulate the standards. In a factory, it is best to have standardization committee drawing its members from sales, engineering, production purchasing, quality control, and inspection.  Sales department and engineering department have to work closely in effecting changes towards standardization because the older products that have been sold are affected by after-sales service needs. Within an organization, it is the engineering department who sets standards for the materials to be procured and specification of the end products and the mode of testing the products. 

    Advantages of standardization: 

    • Standardization in designing, purchasing of raw material, semi-finished and finished goods and of the manufacturing process tries to eliminate wastage and reduces the cost of production. Reduction in varieties of raw materials means reduced investments in stocks and less attention to stock control.
    • Standardize product components reduce tool cost, permits larger and more economical lot sizes of production, avoids losses for obsolescence and reduces capital requirements for work in process.
    • Production in larger quantities can be planned which results in fewer set-up costs.
    • By minimizing the operations in the production process it provides facility to introduce mechanization and use of more specialized tools and equipment.
    • Service and maintenance costs, as well as marketing expenses, are reduced.
    • Encourages the manufacturer to products of the new style, use, and performance with an object to generate more customers.
    • The value of the standardized product lying in stocks or in stocks or in transit can be easy for the purpose of advancing loans.

    Disadvantages of Standardization: 

    Product standardization leads to some disadvantages also. These are:

    • Too much standardization has an adverse effect on the efficiency and morale of the workers. They, in the long run, feel bored and fed-up in doing the same routine again. The spirit of challenge and initiative vanishes with the passage of time.
    • During the initial process of product Development where frequent improvements and changes may be necessary to bring the product and production process up to the mark, standardization may create obstacles in innovations.
    • For small-scale enterprises, standardization may not be advantageous.

    Simplification:

    In production, simplification can be done at two places namely (i) for product or) for work. Simplification in product development is used for products; In fact, simplification should be done before standardization.

    In the words of F. Clark and Carrie, “simplification in an enterprise connotes the elimination of excessive and undesirable or ‘marginal lines’ of product to hammer out waste and to attain economy connotes the elimination of excessive and undesirable or ‘marginal lines’ of product to hammer out waste and to attain economy coupled with the main object of improving quality and reducing costs and prices leading to increased sales.”

    W.R Spiegel and R.H Lansburg also define,” Simplification refers to the elimination of superfluous varieties, size dimensions etc.” Simplification can be advantageous to both producer and the consumer of a product. These can be listed as:

    To the producer: 
    • Eliminates surplus use of materials to provide economy in production cost.
    • More production increases the inventory size which avoids delays in supply.
    • Less obsolescence of materials and machinery.
    • Due to simplification in operation, the efficiency of the production process increase and this leads to more productive due to the scope of better training and learning facility with simplification operation.
    • Human efforts become more productive due to the scope of better training and learning facility with simplified operation.
    • After-sales service prospects are minimized.
    • Production planning and control operations become easy and simple.
    • Reduction in cost of production leads to more sales.
    To jobber-wholesalers and detailers:  
    • Increased turn over.
    • Sales effort on fewer items.
    • Reduction in storage space for.
    • Fewer overheads and handling expenditures.
    To the consumer: 

    Explain it to each one with Advantage and Disadvantage, the following are:

    Specialization: 

    Specialization implies expertise in some particular area or field. It is experienced that as the companies expand the range of their products, manufacturing system, involves more and operations for transforming inputs into output. This often results from an increase in operating cost and a decline in profits. The problem can be solved by identifying the products contributing to losses and then eliminate their production. This will lead to confine the production of profitable items only and consequently a reduction in the number of operation required in the process. The minimization of operation can lead to the use of expert knowledge, skill, and techniques in the production system, the nature and the type of product. The operation required manufacturing it and the nature of the market. Specialization implies the reduction in the variety of products manufacturing by the organization.

    Advantages of specialization are: 

    • Specialization and standardization lead to higher productivity.
    • In the case of output and reduction in per unit cost of production,
    • Savings in the purchase of raw material and improvement in the quality of the finished goods.

    Disadvantages of specialization are: 

    • Less flexibility in adjustment to changed situations.
    • Monotony and boredom may adversely affect the efficiency.

    Diversification:

    It implies the policy of producing different types of products by an enterprise. Thus it is reverse of simplification are associated with the nature of the industry e.g. in the case of capital goods industry simplification is more important as the customers give preference to economy, accuracy and performance of the product, whereas in a consumer goods industry diversification leads to produce a variety of goods in; terms of style, shape, color, design etc. The establishment facing tough competition is forced to diversify this activates to capture the market. In general, diversification can be adopted for the purpose of the market. In general, diversification can be adopted for the purpose of (a) utilization of idle/surplus resources, (b) stabilization of sales, (c) to cope with demand fluctuations and (d) for the survival of the organization.

    Due care and precautions should be taken in the formulation of diversification policy. Proper and extensive market analysis at different levels of the quality and quantity of the products should be done to determine the levels of profitability. This will help in selecting the most appropriate diversification strategy under the prevailing circumstances.

    Advantages of Diversifications are: 

    • Increase in sales due to the production of different kind of products. This also leads to an increase in the volume of business.
    • Needs of the wider section of the consumer are fulfilled.
    • Risk minimization’ in the case of quick and unpredictable demand variations.
    • Uniform and balanced production programme can be chalked out without any consideration of wastage by production by-products.
    • Elimination of wastage by producing by-products.

    Disadvantages of Diversifications are:  

    • Due to the increase in the number of operations, the production process becomes quite complicated and sometimes expensive.
    • Production Planning and control operation becomes complicated and time-consuming requiring extra Efforts.
    • The size and the variety of items in; the inventory increases with diversification introducing more problems.
    • The worker of different types of skill and expertise is required.

    Automation in Business Enterprises: 

    The concept of automation has brought another revolution in the industrial world. This has resulted in phenomenal growth in the industrial arena by providing a wide range of products with minimum cost and efforts.

    Automation implies the use of machines and equipment for performing physical and mental operations in a production operation in place of human beings. Automation can be visualized as an electronic brain with the capacity of taking routine and logical decisions connected with the control and planning functions of management. Routine decisions can be like scheduling, routing, dispatching and inspection of modifications of operations to see that the whole system operates according to the planned strategy.

    In the absence of any human intervention or activity, automation can be considered as a self-regulating and controlling system. Mechanization provides the self-regulating property and performing manual operations by means of mechanized operations.

    Thus automation can be defined as “A system of doing work where material handling, production process, and product design are integrated through mechanization of thoughts and to achieve a self-regulating system.

    In automation, the machines and equipment required to perform various operations process are sequents arranged in order of hierarchy of operations. Electronic devices are used to record, store and interpretation of information at various stages of production. Machines are used to operate other machines.

    Automation can be done at various levels of the manufacturing system in parts or as a whole. Some of the situations can be:

    • Handling of raw materials, semi-finished goods or finished goods. Instead of doing the work manually the operation can be done by means of trolleys, conveyor belts, overhead cranes, lifts etc. This eliminates chances of losses due to handling and saves valuable time.
    • Sophisticated, reliable and efficient machines and equipment can be used in the production process. This will ensure both the quality and quantity of the product desired.
    • Inspection and quality control operations can be done by means of mechanical devices. This eliminates the chances of human bias and error.

    Use of machines and equipment in automation ensures production of high-quality products at minimum cost. This also increases the confidence of consumers in the product and stabilizes the demand for the product. There is a general fear that automation leads to unemployment. But on the other hand operation of machines and equipment in the system need highly skilled and qualified manpower. So the technical skills of the system increase with the reduction in size. It goes without saying that automation ensures the high level of efficiency and capacity utilization.

    Advantages of automation are:

    • Better quality of goods and services,
    • Reduction in direct labor cost,
    • Effective control of operations,
    • Greater accuracy, more output, greater speed,
    • Minimization of waste,
    • Production planning and control is to be done in the beginning only,
    • Working conditions can be improved greatly since much of the work follows an orderly path,
    • The waste does not come into much contact with the equipment; also the design of the special purpose equipment is usually superior to that of general purpose equipment. This improves overall safety considerably,
    • Direct and indirect costs, Inventories, Set-up times and lead times are all reduced. Space and equipment utilization is improved,
    • Since the human inputs in the production are minimized, the quality is also improved. Human beings are more erratic than machines,
    • Throughput time is reduced and therefore service to the customers is enhanced.

    Disadvantages of automation are:

    • High capital investment,
    • High maintenance costs and requirement of the labor of high caliber,
    • Requires highly skilled manpower,
    • Can create unemployment,
    • Scheduling and routing operations are difficult and time-consuming,
    • Restriction in designing and construction of buildings,
    • Larger inventories,
    • Continuous power supply,
    • Automation equipment is highly inflexible i.e. if a new product is to be introduced the existing equipment may have to be salvaged entirely,
    • Any break down anywhere would lead to complete shut-down.
    Explaining Product Development in Production Management - ilearnlot
    Image Credit to @pixabay.
  • What is Management Information System (MIS)?

    What is Management Information System (MIS)?

    Learn and Study, What is Management Information System (MIS)?

    Management information system, or MIS, broadly refers to a computer-based system that provides managers with the tools to organize, evaluate and efficiently manage departments within an organization. In order to provide past, present and prediction information, a management information system can include software that helps in decision making, data resources such as databases, the hardware resources of a system, decision support systems, people management and project management applications, and any computerized processes that enable the department to run efficiently. Also learn, Concept of Investment, What is Management Information System (MIS)?

    Loader Loading…
    EAD Logo Taking too long?

    Reload Reload document
    | Open Open in new tab

    Download [56.83 KB]

    What is MIS? MIS is the use of information technology, people, and business processes to record, store and process data to produce information that decision makers can use to make day to day decisions. MIS is the acronym for Management Information Systems. In a nutshell, MIS is a collection of systems, hardware, procedures and people that all work together to process, store, and produce information that is useful to the organization.

    #Management Information System Definition:

    The Management Information System (MIS) is a concept of the last decade or two. It has been understood and described in a number of ways. It is also known as the Information System, the Information and Decision System, the Computer-based information System.

    A management information system (MIS) is a broadly used and applied term for a three-resource system required for effective organization management. The resources are people, information, and technology, from inside and outside an organization, with top priority given to people. The system is a collection of information management methods involving computer automation (software and hardware) or otherwise supporting and improving the quality and efficiency of business operations and human decision making.

    As an area of study, MIS is sometimes referred to as information technology management (IT management) or information services (IS). Neither should be confused with computer science.

    The MIS has more than one definition, some of which are given below.
    1. The MIS is defined as a system which provides information support for decision making in the organization.
    2. The MIS is defined as an integrated system of man and machine for providing the information to support the operations, the management and the decision-making functions in the organization.
    3. The MIS is defined as a system based on the database of the organization evolved for the purpose of providing information to the people in the organization.
    4. The MIS is defined as a Computer-based Information System.

    Though there are a number of definitions, all of them converge on one single point, i.e., the MIS is a system to support the decision-making function in the organization. The difference lies in defining the elements of the MIS. However, in today s world MIS a computerized .business processing system generating information for the people in the organization to meet the information needs decision making to achieve the corporate objective of the organization.

    In any organization, small or big, a major portion of the time goes in data collection, processing, documenting it to the people. Hence, a major portion of the overheads goes into this kind of unproductive work in the organization. Every individual in an organization is continuously looking for some information which is needed to perform his/her task. Hence, the information is people-oriented and it varies with the nature of the people in the organization.

    The difficulty in handling these multiple requirements of the people is due to a couple of reasons. The information is a processed product to fulfill an imprecise need of the people. It takes time to search the data and may require a difficult processing path. It has a time value and unless processed on time and communicated, it has no value. The scope and the quantum of information are individual-dependent and it is difficult to conceive the information as a well-defined product for the entire organization. Since the people are instrumental in any business transaction, a human error is possible in conducting the same. Since a human error is difficult to control, the difficulty arises in ensuring a hundred percent quality assurance of information in terms of completeness, accuracy, validity, timeliness and meeting the decision making needs.

    In order to get a better grip on the activity of information processing, it is necessary to have a formal system which should take care of the following points:

    • Handling of a voluminous data.
    • Confirmation of the validity of data and transaction.
    • Complex processing of data and multidimensional analysis.
    • Quick search and retrieval.
    • Mass storage.
    • Communication of the information system to the user on time.
    • Fulfilling the changing needs of the information.

    The management information system uses computers and communication technology to deal with these points of supreme importance.

    Why the Need for MIS?

    The following are some of the justifications for having an MIS system:

    Decision makers need information to make effective decisions. Management Information Systems (MIS) make this possible.

    MIS systems facilitate communication within and outside the organization: Employees within the organization are able to easily access the required information for the day to day operations. Facilitates such as Short Message Service (SMS) & Email make it possible to communicate with customers and suppliers from within the MIS system that an organization is using.

    Record keeping: Management information systems record all business transactions of an organization and provide a reference point for the transactions.

    What is Management Information System (MIS) - ilearnlot

  • What is the Concept of Investment? Saving and Investing

    What is the Concept of Investment? Saving and Investing

    Concept of Investment – Investment is the employment of funds to get the return on it. In general terms, investment means the use of money in the hope of making more money. In finance, investment means the purchase of a financial product or another item of value with an expectation of favorable future returns. A study, PDF Reader with free Download PDF File. Also learn, Two Types: economic and financial investment, Difference between Saving and Investing, GST, What is the Concept of Investment?

    Learn and Understand, What is the Concept of Investment?

    What is Investment? An investment is an asset or item acquired to generate income or appreciation. In an economic sense, an investment is the purchase of goods that do not consume today but use in the future to create wealth. In finance, an investment is a monetary asset purchased with the idea that the asset will provide income in the future or will later sell at a higher price for a profit, mutual funds.

    Loader Loading…
    EAD Logo Taking too long?

    Reload Reload document
    | Open Open in new tab

    Download [199.02 KB]

    Investment of hard-earned money is a crucial activity of every human being. Also, Investment is the commitment of funds that have been saved from current consumption with the hope that some benefits will be received in the future. Thus, it is a reward for waiting for money. Savings of the people invest in assets depending on their risk and return demands. Also Importance, Industrial Relations!

    Investment refers to the concept of deferred consumption, which involves purchasing an asset, giving a loan, or keeping funds in a bank account to generate future returns. Various investment options are available, offering differing risk-reward tradeoffs. An understanding of the core concepts and a thorough analysis of the options can help an investor create a portfolio that maximizes returns while minimizing risk exposure.

    There are two concepts of Investment:

    Economic Investment:

    The concept of economic investment means an addition to the capital stock of the society. Also, The capital stock of the society is the goods that use in the production of other goods. The term investment implies the formation of new and productive capital in the form of new construction; and, producers of durable instruments such as plants and machinery. Also, Inventories and human capital include in this concept. Thus, an investment, in economic terms, means an increase in building, equipment, and inventory.

    Financial Investment:

    This is an allocation of monetary resources to assets that expect to yield some gain or return over a given period of time. It means an exchange of financial claims such as shares and bonds, real estate, etc. Financial investment involves contracts written on pieces of paper such as shares and debentures. People invest their funds in shares, debentures, fixed deposits, national saving certificates, life insurance policies, provident fund, etc. in their view investment is a commitment of funds to derive future income in the form of interest, dividends, rent, premiums, pension benefits and the appreciation of the value of their principal capital. In primitive economies, most investments are of the real variety whereas in a modern economy much investment is of the financial variety.

    The economic and financial concepts of investment are related to each other; because, investment is a part of the savings of individuals; which flow into the capital market either directly or through institutions. Thus, investment decisions and financial decisions interact with each other. Also, Financial decisions are primarily concerned with the sources of money whereas investment decisions are traditionally concerned with the uses or budgeting of money.

    Wise investing requires knowledge of key financial concepts and an understanding of your personal investment profile and how these work together to impact investing decisions. Here we will understand the difference between saving and investing. Illustrate the risk/rate-of-return tradeoff, the importance of the time value of money and asset allocation; your personal risk tolerance, recognize your financial goals, and in defining an appropriate investment plan and asset mix for you and your family

    The Difference Between Saving and Investing:

    Even though the words “saving” and “investing” are often used interchangeably, there are differences between the two.

    Saving provides funds for emergencies and for making specific purchases in the relatively near future (usually three years or less). Also, the Safety of the principal and liquidity of the funds (ease of converting to cash) are important aspects of savings Rupees. Because of these characteristics, savings Rupees generally yield a low rate of return and do not maintain purchasing power.

    Investing, on the other hand, focuses on increasing net worth and achieving long-term financial goals. Investing involves risk (of loss of principal) and is to consider only after you have adequate savings.

    Savings v/s Investment Rupees
    SavingsInvestment
    SafeInvolve risk
    Easily accessibleVolatile in short time periods
    Low returnOffer potential appreciation
    Used for short-term goalsFor mid- & long-term goals
    What is the Concept of Investment - ilearnlot
    What is the Concept of Investment? Saving and Investing,
  • What is Foreign Exchange Market or Forex Market?

    What is Foreign Exchange Market or Forex Market?

    A Foreign exchange market or Forex market is a market in which currencies are bought and sold. It is to distinguish from a financial market where currencies borrow and lent. This market determines the foreign exchange rate. It includes all aspects of buying, selling, and exchanging currencies at current or determined prices. In terms of trading volume, it is by far the largest market in the world, followed by the Credit market. Also learned, Goods and Services Tax, What is Foreign Exchange Market or Forex Market?

    Learn and Study, What is Foreign Exchange Market or Forex Market?

    The foreign exchange market (Forex, FX, or currency market); a global decentralized or over-the-counter (OTC) market for the trading of currencies.

    Definition of Foreign Exchange Market:

    It is a market where the buyers and sellers involving in the sale; and, purchase of foreign currencies. In other words, a market where the currencies of different countries are bought and sold calls a foreign exchange market.

    The structure of the foreign exchange market constitutes central banks, commercial banks, brokers, exporters and importers, immigrants, investors, tourists. These are the main players of the foreign market, their position, and place shown in the figure below.

    At the bottom of a pyramid are the actual buyers; and, sellers of the foreign currencies- exporters, importers, tourists, investors, and immigrants. They are actual users of the currencies and approach commercial banks to buy them.

    The commercial banks are the second most important organ of the foreign exchange market. The banks dealing in foreign exchange play a role of “market makers”; in the sense that they quote daily the foreign exchange rates for buying and selling of foreign currencies. Also, they function as clearinghouses; thereby helping in wiping out the difference between the demand for and the supply of currencies. These banks buy currencies from the brokers and sell them to the buyers.

    Other things:

    The third layer of a pyramid constitutes the foreign exchange brokers. These brokers function as a link between the central bank and the commercial banks; and, also between the actual buyers and commercial banks. They are the major source of market information. These are the persons who do not themselves buy the foreign currency; but rather strike a deal between the buyer and the seller on a commission basis.

    The central bank of any country is the apex body in the organization of the exchange market. They work as the lender of the last resort and the custodian of foreign exchange of the country. Also, the central bank has the power to regulate and control the foreign exchange market to assure that it works in an orderly fashion. One of the major functions of the central bank is to prevent the aggressive fluctuations in the foreign exchange market, if necessary, by direct intervention. Intervention in the form of selling the currency when it overvalues and buying it when it tends to undervalue.

    General Features of Forex Market:

    They describe it as an OTC (Over the counter) market as there is no physical place where the participants meet to execute their deals. It is more an informal arrangement among the banks and brokers operating in a financing center purchasing and selling currencies, connected by telecommunications like telex, telephone, and a satellite communication network, SWIFT (Society for Worldwide Interbank Financial Telecommunication).

    The term foreign exchange market uses to refer to the wholesale segment of the market, where the dealings take place among the banks. Also, the retail segment refers to the dealings that take place between banks and their customers. Also, the retail segment refers to the dealings that take place between banks and their customers. The retail segment situates in a large number of places. They can consider not as foreign exchange markets, but as the counters of such markets.

    The leading foreign exchange market in India is Mumbai, Calcutta, Chennai, and Delhi is other center’s accounting for the bulk of the exchange dealings in India. The policy of the Reserve Bank has been to decentralize exchange operations and develop broader-based exchange markets. As a result of the efforts of Reserve Bank Cochin, Bangalore, Ahmadabad, and Goa have emerged as the new center of the foreign exchange market.

    Size of the Market:

    It is the largest financial market with a daily turnover of over USD 2 trillion. Also, Foreign exchange markets were primarily developed to facilitate the settlement of debts arising out of international trade. But these markets have developed on their own so much so that a turnover of about 3 days in the foreign exchange market is equivalent to the magnitude of world trade in goods and services.

    The largest foreign exchange market in London was followed by New York, Tokyo, Zurich, and Frankfurt. As well as, the business in foreign exchange markets in India has shown a steady increase as a consequence of the increase in the volume of foreign trade of the country, improvement in the communications systems, and greater access to the international exchange markets. Still, the volume of transactions in these markets amounting to about USD 2 billion per day does not compete favorably with any well developed foreign exchange market of international repute.

    The reasons are not far to seek. Also, the rupee is not an internationally traded currency and is not in great demand. Much of the external trade of the country designated in leading currencies of the world, Viz., US dollar, pound sterling, Euro, Japanese yen, and Swiss franc. Incidentally, these are the currencies that trade actively in the foreign exchange market in India.

    24 Hours Market:

    The markets are situated throughout the different time zones of the globe in such a way that when one market is closing the other is beginning its operations. Thus at any point in time one market or the other is open. Therefore, it states that the foreign exchange market is functioning 24 hours of the day.

    However, a specific market will function only during business hours. Some of the banks having the international network and having centralized control of funds management may keep their foreign exchange department in the key center open throughout to keep up with developments at other centers during their normal working hours. In India, the market is open for the time the banks are open for their regular banking business. No transactions take place on Saturdays.

    Efficiency:

    Developments in communication have largely contributed to the efficiency of the market. Also, the participants keep abreast of current happenings by access to such services as Dow Jones Telerate and Teuter.

    Any significant development in any market is almost instantaneously received by the other market situated at a far off place and thus has a global impact. This makes the foreign exchange market very efficient as if the functions under one roof.

    Currencies Traded in Forex Markets:

    In most markets, the US dollar is the vehicle currency, Viz., the currency used to denominate international transactions. This is even though with currencies like the Euro and Yen gaining a larger share, the share of the US dollar in the total turnover is shrinking.

    Physical Markets:

    In few centers like Paris and Brussels, foreign exchange business takes place at a fixed place, such as the local stock exchange buildings. At these physical markets, the banks meet and in the presence of the representative of the central bank and based on bargains, fix rates for several major currencies. This practice calls fixing.

    The rates thus fixed uses to execute customer orders previously placed with the banks. An advantage claimed for this procedure is that the exchange rate for commercial transactions will market-determine, not influence by any one bank. However, it observes that the large banks attending such meetings with large commercial orders backing up, tend to influence the rates.

    What is Foreign Exchange Market or Forex Market - ilearnlot
    What is Foreign Exchange Market or Forex Market?
  • What is the Scope of Industrial Relations?

    What is the Scope of Industrial Relations?

    The concept of industrial relations is explaining their scope and IR has a very wide meaning and connotation. In the narrow sense, it means that the employer, employee relationship confines itself to the relationship that emerges out of the day to day association of the management and the labor. In its wider sense, industrial relations include the relationship between an employee and an employer in the course of the running of an industry and may project it to spheres, which may transgress to the areas of quality control, marketing, price fixation and disposition of profits among others. Also, learn the Importance of Industrial Relations.

    Learn and Study, What is the Scope of Industrial Relations?

    The term industrial relations has a broad as well as a narrow outlook. Originally, industrial relations broadly define to include the relationships and interactions between employers and employees. From this perspective, industrial relations covers all aspects of the employment relationship, including human resource management, employee relations, and union-management (or labor) relations. Now its meaning has become more specific and restricted.

    Accordingly, industrial relations pertains to the study and practice of collective bargaining, trade unionism, and labor-management relations, while human resource management is a separate, largely distinct field that deals with nonunion employment relationships and the personnel practices and policies of employers.

    The scope of industrial relations is quite vast.

    The main issues involved here include the following:

    • Collective bargaining.
    • Machinery for settlement of industrial disputes.
    • Standing orders.
    • Worker’s participation in management, and.
    • Unfair labor practices.

    Definition and Scope of industrial relations:

    The ultimate aim of any human activity at the socio-economic level should be the minimal use of available resources in achieving the maximum economic and social results, i.e. to be increasingly productive. The productivity of capital, machines, and resources other than human resources can be improved in various ways.

    But improving the productivity of human resources is a complex and onerous task, for the simple reason that “labor” stands for both an individual human being and a group of individuals with different perceptions about productivity, motivation and attitudes, and with different needs. In organizations, individuals do not operate in isolation. They interact and react collectively to various issues in which management has an interest, including productivity.

    Thus productivity improvement extends beyond the domain of the management of workers and becomes a labor-management or industrial relations issue to be negotiated, settled and implemented jointly by the management and the union. Productivity improvement as an industrial relations issue thus acquires a greater significance in all enterprises where the employees are organized.

    “Industrial relations” broadly means the relations arising out of employment. In this broad sense, it covers the area of personnel management or human resources management and labor-management relations or labor relations. In its narrower sense, it refers only to the relations between management and the unions. And in its popular usage, it refers only to labor-management relations.

    More things…

    Industrial relations in organizations is the total of the management’s attitude to labor and of labor’s attitude to management’s policies and practices that affect the interests of the employees. Industrial relations are, basically, interactions between management and union(s). They involve continuous dialogue between the two sides on various issues of common interest; through such dialogues, the two sides shape each other’s attitudes.

    The approach, methods, strategies, and techniques, etc., of management in achieving the desired objectives vary from one organization to another. This is especially true about productivity improvement through industrial relations. It is, therefore, primarily the responsibility of management to develop industrial relations with workers and the unions to promote productivity continuingly.

    Another scope of Industrial Relations:

    Based on the above definitions, the scope of Industrial Relations can easily be delineated as follows:

    1. Labor relations, i.e., relations between labor union and management.
    2. Employer-employee relations i.e. relations between management and employees.
    3. The role of various parties’ viz., employers, employees, and state in maintaining industrial relations.
    4. The mechanism of handling conflicts between employers and employees, in case of conflicts, arise.

    The main aspects of industrial relations can be identified as follows:

    1. Promotion and development of healthy labor-management relations.
    2. Maintenance of industrial peace and avoidance of industrial strife.
    3. Development and growth of industrial democracy.

    What is the Scope of Industrial Relations - ilearnlot
    Scope of Industrial Relations, Image from Online.

  • What is the Importance of Industrial Relations?

    What is the Importance of Industrial Relations?

    Industrial relations refers to processes and outcomes involving employment relationships. Importance of Industrial Relations for Employees and Employers. Frequently the term used in a narrower sense, for employment relationships involving the collective representation of employees in the form of a labor union or employee association, especially in the United States.

    Learn and Study, What is the Importance of Industrial Relations?

    At the other extreme, industrial relations has been defined by Thomas A. Kochan, in his book Collective Bargaining and Industrial Relations, as “all aspects of people at work,” but there are some aspects of people at work that entail highly technical subjects (e.g., industrial hygiene, ergonomics) which are not normally regarded as falling within the mainstream of industrial relations study. Also, learn the Importance of Employee Relations.

    4 Importance of Industrial Relations:

    The following industrial relations 4 importance below are;

    • Increased Productivity: With amicable industrial relations both the workers and managers continue to work on their respective position and contribute towards the overall productivity of the firm. Thus, IR ensures the continuity of production.
    • Reduced Industrial Disputes: An effective IR helps in the reduction of industrial disputes as both the management and the workers maintain harmonious relations with each other and work in unison towards the accomplishment of production objectives.
    • Increased Morale: The peaceful industrial relations boost the moral level of the employees as they feel that their interest coincides with that of the employer’s, and their efforts will result in the overall profitability of the firm.
    • Minimization of Wastage: A good IR ensures reduced wastage as the resources – Man, Machinery, Material are fully utilized and are effectively contributing towards the overall productivity of the firm.
    More importance;

    The significance of good industrial relations in any country cannot ones emphasize. Good industrial relations are necessary for the following reasons.

    1. To help in the economic progress of a country. The problem of an increase in productivity is essentially the problem of maintaining good industrial relations. That is why they form an important part of the economic development plan of every civilized nation.
    2. To help in to establish and to maintain true industrial democracy this is a prerequisite for the establishment of a socialist society.
    3. They help the management both in the formulations of informed labor relations policies and in their translation into action.
    4. To encourage collective bargaining as a means of self-regulation. They consider the negotiation process as an educational opportunity a chance both to learn and to reach.
    5. To help the government making laws forbidding unfair practices of unions and employers. In climate good industrial relations every party works for the solidarity of worker’s movement. Unions gain more strength and vitality. There is no inter-union rivalry.
    6. Employees give unions their rightful recognition and encourage them to participate in all decisions. Unions divert their activities from fighting and belligerence to increase the size of the distribution and to make their members more informed (workers education) on vital issues concerning them.
    7. To boost the discipline and morale of workers. Maintenance of discipline ensures orderliness. Effectiveness and economy in the use of resources. On the other hand, lack of discipline means waste, loss, and confusion. It also means insubordination and non-co-operation.
    8. Industrial relations are eventually human relations, therefore, the same basis of human psychology prevails in the field of industrial relations, and the efficiency of an industry is directly related to the quality of the relationship, which is being built up amongst the individuals who work together.

    Importance of Industrial Relations for Employees and Employers:

    Industrial relations usually imply good and positive relations between employees and employers. The good Industrial Relations help run an industry effectively and successfully, i.e., the desideratum of the day. Top 5 importance of Industrial Relations can imbue with the multiplicity of justifications.

    To mention, good Industrial Relations help:

    Foster Industrial Peace:

    Under the mechanism of Industrial Relations, both employees and managers discuss the matter and consult each other before initiating any actions. Doubts, if any, in the minds of either party are removed. Thus, unilateral actions that prop confusion and misunderstanding disappear from the scene. In this way, Industrial Relations helps create a peaceful environment in the organization. Peace, in turn, breeds prosperity.

    Promote Industrial Democracy:

    Industrial democracy means the government-mandated worker participation at various levels of the organization about decisions that affect workers. It is mainly the joint consultations, that pave the way for industrial democracy and cement relationships between workers and management. This benefits them both. The motivated workers give their best and maximum to the organization, on the one hand, and share their share of the fruits of organizational progress jointly with management, on the other.

    The benefit to Workers:

    Industrial Relations benefits workers in several ways. For example, it protects workers against unethical practices on the part of management to exploit workers by putting them under inhuman working conditions and niggardly wages. It also provides a procedure to resolve workers’ grievances relating to work.

    The benefit to Management:

    Industrial Relations protects the rights of managers too. As and when workers create the problem of indiscipline, Industrial Relations provides managers with a system to handle employee indiscipline in the organization.

    Improve Productivity:

    Experiences indicate that good industrial relations serve as the key to increased productivity in industrial organizations. Eicher Tractors, Alwar represents one such case. In this plant, productivity went up from 32 percent to 38 percent between 1994 and 1997. This increase attribute to the peaceful IR in the plant.

    Similar other success stories abound in the country. As reported by V.S.P. Rao, Sundaram Fasteners (A TVS group company which begged the prestigious GM award for the fourth successive year in 1999 as a quality supplier of radiator caps) well knows for zero breakdowns, zero accidents, and zero defects. The company did not lose even a single day due to strike. The per-employee productivity is comparable to the best in the world. One study rates the company among the 20 most competitive companies in Asia.

    What is the Importance of Industrial Relations - ilearnlot
    Importance of Industrial Relations for Employees, Image from Online.

  • Do you know what is Industrial relations?

    Do you know what is Industrial relations?

    Industrial relations are the relationships between employees and employers within organizational settings. The field of industrial relations looks at the relationship between management and workers, particular groups of workers represented by a union. This article explains Industrial Relations by their meaning and different definition; Industrial relation is the interactions between employers, employees and the government, and the institutions and associations through which such interactions mediate. Also learn, Know What is Employee Relations?

    Learn and Understand, Do You know what is Industrial relations? Meaning and Definition.

    The term industrial relation has a broad as well as a narrow outlook. Originally, industrial relations broadly define to include the relationships and interactions between employers and employees. From this perspective, industrial relations covers all aspects of the employment relationship, including human resource management, employee relations, and union-management (or labor) relations. Now its meaning has become more specific and restricted.

    Accordingly, industrial relations pertains to the study and practice of collective bargaining, trade unionism, and labor-management relations; while human resource management is a separate, largely distinct field that deals with nonunion employment relationships and the personnel practices and policies of employers.

    The meaning of Industrial relations; IR is a multidisciplinary field that studies the employment relationship. Industrial relations are increasingly being called employment relations or employee relations because of the importance of non-industrial employment relationships; this move sometimes sees as further broadening of the human resource management trend. Indeed, some authors now define human resource management as synonymous with employee relations.

    Other authors see employee relations as dealing only with non-unionized workers, whereas labor relations see as dealing with unionized workers. Also know more, Industrial relation studies examine various employment situations, not just ones with a unionized workforce. However, According to Bruce E. Kaufman;

    “To a large degree, most scholars regard trade unionism, collective bargaining and labor-management relations, and the national labor policy and labor law within which they are embedded, as the core subjects of the field.”

    Definition of Industrial Relations:

    After, their meaning they define their definition of industrial relations according to different authors below are;

    “Employer-employee relationships that are covered specifically under collective bargaining and industrial relation laws.”

    According to Dale Yoder’,

    “IR is a designation of a whole field of relationship that exists because of the necessary collaboration of men and women in the employment processes of Industry.”

    In the opinion of V. B. Singh;

    “Industrial relations are an integral aspect of social relations arising out of employer-employee interaction in modern industries which are regulated by the State in varying degrees, in conjunction with organized social forces and influenced by the existing institutions. This involves a study of the State, the legal system, and the workers’ and employers’ organizations at the institutional level; and of the patterns of industrial organization (including management), capital structure (including technology), compensation of the labor force, and a study of market forces all at the economic level.”

    Encyclopedia Britannica defined IR more elaborately as;

    “The concept of industrial relations has been extended to denote the relations of the state with employers, workers, and other organizations. The subject, therefore, includes individual relations and joint consultation between employers and workers at their places of work, collective relations between employers and trade unions; and the part played by the State in regulating these relations.”

    As the name implies, Industry Relations comprises of two words, Industry, and Relations. Where industry covers the production activity in which the group of workmen engages; while the relations show the relationship between the management and the workers within the industry. IR plays a significant role in today’s working scenario where the harmonious relationship between the employers and employees needs to have an uninterrupted production.

    Industrial Relations mainly cover the following:
    • Regulatory body to resolve industrial disputes.
    • Collective Bargaining.
    • The role of management, unions, and government.
    • Labor Legislation.
    • Worker’s Grievance Redressal system.
    • Disciplinary policy and practice, and.
    • They give Training.

    The relationships which arise at and out of the workplace generally include the relationships between individual workers; the relationships between workers and their employer and the relationships between employees. Also learn, What is the Importance of Employee Relations? The relationships employers and workers have with the organizations form to promote their respective interests; and, the relations between those organizations, at all levels.

    Industrial relation also includes the processes through which these relationships express (such as, collective bargaining, workers’ participation in decision-making, and grievance and dispute settlement); and, the management of conflict between employers, workers and trade unions, when it arises.

    Do you Know What is Industrial Relations - ilearnlot
    Do you know what is Industrial Relations? meaning and definition. Image from Online.

  • What is the Importance of Employee Relations?

    What is the Importance of Employee Relations?

    Maintaining healthy Importance of employee relations in an organization is a prerequisite for organizational success. Strong employee relations are required for high productivity and human satisfaction. Employee relations generally deal with avoiding and resolving issues concerning individuals which might arise out of or influence the work scenario. Strong employee relation depends upon a healthy and safe work environment, a cent percent involvement and commitment of all employees, incentives for employee motivation, and an effective communication system in the organization.

    Learn, Why Employee Relations at Workplace? and, What is the Importance of Employee Relations?

    Healthy employee relations lead to more efficient, motivated, and productive employees which further leads to an increase in sales level. What are Employee Relations? According to the Chartered Institute of Personnel Development, the use of industrial relations to describe workplace relations is no longer as prevalent, due to the widespread deindustrialization of developed economies and declining union membership. Instead, employers now use the term “employee relations,” which refers to relationships that exist in both unionized and nonunionized workplaces. Employers hope to manage employee relations successfully with each respective individual, as a means to raise morale and productivity.

    Every individual in the workplace shares a certain relationship with his fellow workers. Human beings are not machines that can start working just at the push of a mere button. They need people to talk to, discuss ideas with each other, and share their happiness and sorrows. An individual cannot work on his own, he needs people around. If the organization is empty, you will not feel like sitting there and working. An isolated environment demotivates an individual and spreads negativity around. People must be comfortable with each other and work together as a single unit towards a common goal.

    Introduction

    However, when it comes to employee relationships, they can only have a good relationship when they are disappointed with the company. Sometimes cutting through the hard work with some fun games is essential. Some fun outdoor activities and some employee appreciation gifts are always encouraged.

    Employees must share a healthy relationship at the workplace. Let us find out why the importance of employee relations in an organization:

    There are several issues on which an individual cannot take decisions alone:

    He needs the guidance and advice of others as well. Sometimes we might miss out on important points, but our fellow workers may come out with a brilliant idea that would help us to achieve our targets at a much faster rate. Before implementing any plan, the pros and cons must be evaluated in an open forum where every employee has the right to express his opinions freely. On your own, you will never come to know where you are going wrong, you need people who can act as critics and correct you wherever you are wrong. If you do not enjoy a good relationship with others no one will ever come to help you.

    Work becomes easy if it is shared among all:

    A healthy relationship with your fellow workers would ease the workload on you and in turn, increases your productivity. One cannot do everything on his own. Responsibilities must be divided among team members to accomplish the assigned tasks within the stipulated time frame. If you have a good rapport with your colleagues, they will always be eager to assist you in your assignments making your work easier.

    The organization becomes a happy place to work if the employees work together as a family:

    An individual tends to lose focus and concentration if his mind is always clouded with unnecessary tensions and stress. It has been observed that if people talk and discuss things with each other, tensions automatically evaporate and one feels better. Learn to trust others, you will feel relaxed. One doesn’t feel like going to the office if he is not on talking terms with the person sitting next to him.

    An individual spends around 8-9 hours a day at his workplace and practically it’s not possible that one works nonstop without a break. You should have people with whom you can share your lunch, discuss movies or go out for a stroll once in a while. If you fight with everyone, no one will speak to you and you will be left all alone. It is important to respect others to expect the same from them.

    An individual feels motivated in the company of others whom he can trust and fall back on whenever needed:

    One feels secure and confident and thus delivers his best. It is okay if you share your secrets with your colleagues but you should know where to draw the line. A sense of trust is important.

    Healthy employee relations also discourage conflicts and fights among individuals:

    People tend to adjust more and stop finding faults in each other. Individuals don’t waste their time in meaningless conflicts and disputes, rather concentrate on their work and strive hard to perform better. They start treating each other as friends and try their level best to compromise and make everyone happy.

    A healthy employee relationship reduces the problem of absenteeism at the workplace:

    Individuals are more serious about their work and feel like coming to the office daily. They do not take frequent leaves and start enjoying their work. Employees stop complaining about each other and give their best.

    It is wise to share a warm relationship with your fellow workers because you never know when you need them:

    You may need them at any time. They would come to your help only when you are nice to them. You might need to leave for some personal reasons; you must have a trusted colleague who can handle the work on your behalf. Moreover, healthy employee relations also spread positivity around.

    It is essential that employees are comfortable with each other for better focus and concentration, lesser conflicts, and increased productivity. Now, you may understand the importance of employee relations.

    What is the Importance of Employee Relations - ilearnlot
    What is the Importance of Employee Relations?
  • Explain are What is the Importance of Planning in Management?

    Explain are What is the Importance of Planning in Management?

    Learn and Understand, Explain are What is the Importance of Planning in Management?

    While planning does not guarantee success in organizational objectives, there is evidence that companies that engaged in formal planning consistently performed better than those with none or limited formal planning and improved their own performance over a period of time. It is very rare for an organization to succeed solely by luck or circumstances. Also learn, Vision Statement, What is the Importance of Planning in Management?

    Some of the reasons as to why planning is considering a vital managerial function are given below:

    Planning is essential in modern business:

    The growing complexity of the modern business with rapid technological changes, dynamic changes in the consumer preferences and growing tough competition necessities orderly operations, not only in the current environment but also in the future environment. Since planning takes a future outlook, it takes into account the possible future developments.

    Planning affects performance:

    A number of empirical studies provide evidence of organizational success being a function of formal planning, the success is measuring by such factors as return on investment, sales volume, and growth in earnings per share and so on. An investigation of firms in various industrial products as machinery, steel, oil, chemicals, and drugs revealed that companies that engaged in formal planning consistently performed better than those with no formal planning.

    Planning puts focus on objectives:

    The effectiveness of formal planning is primarily based on clarity of objectives. Objectives provide a direction and all planning decisions are directing towards the achievement of these objectives. Plans continuously reinforce the importance of these objectives by focusing on them. This ensures maximum utility of managerial time and efforts.

    Planning anticipates problems and uncertainties:

    A significant aspect of any formal planning process in the collection of relevant information for the purpose of forecasting the future as accurately as possible. This would minimize the chances of haphazard decisions. Since the future needs of the organization are anticipating in advance, the proper acquisition and allocation of resources can plan, thus minimizing wastage and ensuring the optimal utility of these resources.

    Planning is necessary to facilitate control:

    Controlling involves the continual analysis and measurement of actual operations against the established standards. These standards are set in the light of objectives to by achieve. Periodic reviews of operations can determine whether the plans are being implemented correctly. Well-developed plans can aid the process of control in two ways.

    First, the planning process establishes a system of advance warning of possible deviations from the expected performance.  The second contribution of planning to the control process is that it provides quantitative data which would make it easier to compare the actual performance in quantitative terms, not only with the expectations of the organization but also with the industry statistics or market forecasts.

    Planning helps in the process of decision making:

    Since planning specifies the actions and steps to take in order to accomplish organizational objectives, it serves as a basis for decision-making about future activities. It also helps managers to make routine decisions about current activities since the objectives, plans, policies, schedules and so on are clearly laying down.

    Importance of planning in management is!

    Planning is the first and most important function of management. It is needed at every level of management. In the absence of planning all the business activities of the organization will become meaningless. The importance of planning has increased all the more in view of the increasing size of organizations and their complexities.

    Planning has again gained importance because of uncertain and constantly changing business environment. In the absence of planning, it may not be impossible but certainly difficult to guess the uncertain events of future.

    The following facts show the advantages of planning and its importance for a business organization:

    (1) Planning Provides Direction:

    Under the process of planning the objectives of the organization are defining in simple and clear words. The obvious outcome of this is that all the employees get a direction and all their efforts are focusing towards a particular end. In this way, planning has an important role in the attainment of the objectives of the organization.

    For example, suppose a company fixes a sales target under the process of planning. Now all the departments, e.g., purchase, personnel, finance, etc., will decide their objectives in view of the sales target.

    In this way, the attention of all the managers will get focusing on the attainment of their objectives. This will make the achievement of sales target a certainty. Thus, in the absence of objectives, an organization gets disable and the objectives are laying down under planning.

    (2) Planning Reduces Risks of Uncertainty:

    Planning is always done for future and future is uncertain. With the help of planning, possible changes in future are anticipating and various activities are planning in the best possible way. In this way, the risk of future uncertainties can minimize.

    For example, in order to fix a sales target, a survey can undertake to find out the number of new companies likely to enter the market. By keeping these facts in mind and planning the future activities, the possible difficulties can avoid.

    (3) Planning Reduces Overlapping and Wasteful Activities:

    Under planning, future activities are planning in order to achieve objectives. Consequently, the problems of when, where, what and why are almost deciding. This puts an end to disorder and suspicion. In such a situation coordination is establishing among different activities and departments. It puts an end to overlapping and wasteful activities.

    Consequently, wastages move towards nil, efficiency increases and costs get to the lowest level. For example, if it is deciding that a particular amount of money will require in a particular month, the finance manager will arrange for it in time.

    In the absence of this information, the amount of money can be more or less than the requirement in that particular month. Both these situations are undesirable. In case, the money is less than the requirement, the work will not complete and in case it is more than the requirement, the amount will remain unused and thus cause a loss of interest.

    (4) Planning Promotes Innovative Ideas:

    It is clear that planning selects the best alternative out of the many available. All these alternatives do not come to the manager on their own, but they have to discover. While making such an effort of discovery, many new ideas emerge and they are studying intensively in order to determine the best out of them.

    In this way, planning imparts a real power of thinking in the managers. It leads to the birth of innovative and creative ideas. For example, a company wants to expand its business. This idea leads to the beginning of the planning activity in the mind of the manager. He will think like this:

    • Should some other varieties of the existing products manufacture?
    • ……Retail sales undertake along with the wholesales?
    • ……Some branch open somewhere else for the existing or old product?
    • ……Some new product launch?

    In this way, many new ideas will emerge one after the other. By doing so, he will become habituated to them. He will always be thinking about doing something new and creative. Thus, it is a happy situation for a company which is born through the medium of planning.

    (5) Planning Facilitates Decision Making:

    Decision making means the process of making decisions. Under it, a variety of alternatives are discovering and the best alternative is chosen. The planning sets the target for decision making. It also lays down the criteria for evaluating courses of action. In this way, planning facilitates decision making.

    (6) Planning Establishes Standards for Controlling:

    By determining the objectives of the organization through planning all the people working in the organization and all the departments are informing about ‘when’, ‘what’ and ‘how’ to do things.

    Standards are laying down in their work, time and cost, etc. Under control, at the time of completing the work, the actual work done is comparing with the standard work and deviations are found out and if the work has not been done as desire the person concern is held responsible.

    For example, a laborer is to do 10 units of work in a day (it is a matter of planning), but actually he completes 8 units. Thus there is a negative deviation of 2 units. For this, he is held responsible. (Measurement of actual work, knowledge of deviation and holding the laborer responsible falls under controlling.) Thus, in the absence of planning control is not possible.

    Explain are What is the Importance of Planning in Management - ilearnlot
    Photo Credit to Pixaby, More free Images, Also, Thanks!