Tag: Process

  • Factors Affecting of Price Determination with Steps and Process

    Factors Affecting of Price Determination with Steps and Process

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

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

    The Factors Affecting Price Determination of Product

    Main factors affecting the price determination of product are:

    Product Cost:

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

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

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

    The Utility and Demand:

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

    The extent of Competition in the Market:

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

    Government and Legal Regulations:

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

    Pricing Objectives:

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

    Following are the pricing objectives of any business:

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

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

    The Steps Involved in Price Determination Process.

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

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

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

    Why are Training and Development required in HRM - ilearnlot
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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.

    What is the Recruitment Process - ilearnlot
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  • 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.

  • Define Marketing Research, and their Process!

    Marketing research is key to the evolution of successful marketing strategies and programmes. It is an important tool to study buyer behavior, changes in consumer lifestyles and consumption patterns, brand loyalty and forecast market changes. Research is also used to study competition and analyze the competitor product’s positioning and how to gain a competitive advantage. Recently, marketing research is being used to help create and enhance brand equity. Also learned, Investment in Mutual Funds, Define Marketing Research, and their Process!

    Learn, Explain, Define Marketing Research, and their Process!

    According to Philip Kotler, Marketing research is systematic problem analysis, model building and fact finding for the purposes of important decision making and control in the marketing of goods and services.

    The marketing research process is a seven-stage one. The various stages of this process are:

    1. PROBLEM DEFINITION:

    This is the starting point in the marketing research exercise. Invariably, in any enterprise, there are several marketing issues that may require examination, and invariably every decision maker perceives his information need as being the most important. In problem definition it is important to be specific, avoiding ambiguities and generalities. Care should also be taken, not to define problems in too narrow a field as that may distract the researcher’s perspective. This may even affect creativity in the research.

    2. RESEARCH OBJECTIVES:

    Once the problem is defined, the next logical step is to state what the researcher wants to achieve. This statement is called objectives. To be meaningful and help focus the researcher’s attention, these objectives should be specific, attainable & measurable. The purpose of these objectives is to act as a guide to the researcher and help him in maintaining a focus all through the research.

    3. RESEARCH DESIGN:

    The third stage of the marketing research process is deciding on the research design. There are three types of research designs, namely:

    (A) Exploratory: – This kind of research is conducted when the researcher does not know how & why a certain phenomenon occurs, for example, how does the consumer evaluate the quality of a bank or a hotel or an airline?

    Since the prime goal of an exploratory research is to know the unknown, this research is unstructured. Focus groups, interviewing key customer groups, experts and even search for printed or published information are some common techniques.

    (B) Descriptive: – This research is carried out to describe a phenomenon or market characteristics. For example, a study to understand buyer behavior & describe characteristics of the target market is descriptive research.

    Continuing the above example of service quality, research was done on how consumers evaluate the quality of competing service institutions can be considered as an example of descriptive research.

    (C) Causative: – this kind of research is done to establish a cause and effect relationship, for example, the influence of income & lifestyle on the purchase decision. Here the researcher may like to see the effect of rising income & changing lifestyle on consumption of select products.

    4. SOURCES OF DATA:

    Once the research design has been decided upon, the next stage is that of selecting the sources of data. Essentially there are two sources of data or information- secondary & primary:

    • Secondary data: This refers to the information that has been collected earlier by someone else. Often this includes printed or published reports, news items, industry or trade statistics etc. this also includes internal documents like invoices, sales reports, the payment history of customers etc. these are important to the researcher as they provide an insight to the problem. Often the preliminary investigation is restricted to secondary data.
    • Primary data: To overcome the limitations of incompatibility, obsolescence and bias, the researcher turns to the primary data. This is also resorted to when the secondary data is incomplete. Primary sources refer to data collected directly from the marketplace-customers, traders & suppliers often are the major sources. They are often reliable data sources and help in overcoming limitations of secondary data. The problem in primary data is its cost, both In terms of money & time, and often a researcher bias also creeps in.

    5. DATA COLLECTION:

    The researcher is now ready to take the plunge. But still, he or she needs to be clear about the following.

    Procedure for data collection:

    Data can be collected through any or a combination of the following techniques.

    • Observation: This technique involves observing how a customer behaves in the shopping area, how he or she dresses up & what does the customer say when he or she sees the product.
    • Experimentation: This is a technique that involves experimenting with new product ideas, advertising copies & campaigns, sales promotion ideas & even pricing & distribution strategies with the target customer group. These experiments can be conducted in an uncontrolled environment or in a controlled & simulated market environment.

    Tools for data collection:

    The researcher has to decide on the appropriate tool for data collection.

    These tools are:-

    • Questionnaire – used for the survey method.
    • Interview schedule – used mainly for exploratory research.
    • Association test – primarily used in qualitative research, also called as TAT (Thematic  Apperception Test).

    6. DATA ANALYSIS:

    The next stage is that of the data analysis. It is important to understand raw data has no usage in marketing research .hence appropriate analytical tools must be used. The most elementary is the arithmetic analysis using percentile and ratios. Statistical analysis like mean, median, mode, percentages, standard deviation and coefficient of correlations should be used wherever applicable

    7. REPORT & PRESENTATION:

    The last stage is that of writing out a report and making a presentation to the Decision –maker. It is important that the report has the summary, called the executive summary, giving a bird’s-eye view of the research. This is because most senior managers have little time for going through the entire report in depth. The executive summary can direct the reader’s attention to specific issues by turning to the relevant sections in the report and should not exceed a thousand words.

    The report should be structured and pages chronologically numbered generally, the structure of a good report is somewhat like the following:

    • Introduction to the problem.
    • Marketing research finding or survey findings.
    • Interpretation of research finding, and.
    • Policy Implications.

  • Management as, What? As an Activity…as a Profession!

    Learn and Study, Management as, What? As an Activity…as a Profession!

    Before You Start Studying, let’s want to know, what you going to learn it. Management can be defined in detail in following categories: Management as an Art, as a Science, as a Process, as an Activity, as a Discipline, as a Group, and as a Profession. Is Management an as Profession? Also learned, the Subsidiary Functions of Management!  Continuously Studying – After, Management as, What? As an Art…As a Process! Management as, What? Now, Learning next part of Management as, What? As an Activity…as a Profession!

    First, define, Management is a universal phenomenon. It is a very popular and widely used term. All organizations – business, political, cultural or social are involved in management because it is the management which helps and directs the various efforts towards a definite purpose. According to Harold Koontz, “Management is an art of getting things done through and with the people in formally organized groups. It is an art of creating an environment in which people can perform and individuals and can co-operate towards the attainment of group goals”. According to F.W. Taylor, “Management is an art of knowing what to do when to do and see that it is done in the best and cheapest way”.

    Management is a purposive activity. It is something that directs group efforts towards the attainment of certain predetermined goals. It is the process of working with and through others to effectively achieve the goals of the organization, by efficiently using limited resources in the changing world. Of course, these goals may vary from one enterprise to another. E.g.: For one enterprise it may be launching new products by conducting market surveys and for other, it may be profit maximization by minimizing cost.

    Management involves creating an internal environment: – It is the management which puts to use the various factors of production. Therefore, it is the responsibility of management to create such conditions which are conducive to maximum efforts so that people are able to perform their task efficiently and effectively. It includes ensuring availability of raw materials, determination of wages and salaries, formulation of rules & regulations etc.

    Management can be defined in detail in following categories :

    • Management as an Art!
    • Management as a Science!
    • Management as a Process!
    • Management as an Activity!
    • Management as a Discipline!
    • Management as a Group, and!
    • Management as a Profession!

    Now Explain it:

    Continuously Studying – After, Management as, What? As an Art…As a Process! Management as, What? Now, Learning next part of Management as, What? As an Activity…as a Profession!

    #Management as an Activity!

    Like various other activities performed by human beings such as writing, playing, eating, cooking etc, management is also an activity because a manager is one who accomplishes the objectives by directing the efforts of others. According to Koontz, “Management is what a manager does”.

    Management as an activity includes:

    Informational activities: In the functioning of the business enterprise, the manager constantly has to receive and give information orally or in writing. A communication link has to be maintained with subordinates as well as superiors for the effective functioning of an enterprise.

    Decisional activities: Practically all types of managerial activities are based on one or the other types of decisions. Therefore, managers are continuously involved in decisions of different kinds since the decision made by one manager becomes the basis of action to be taken by other managers. (E.g. Sales Manager is deciding the media & content of advertising).

    Inter-personal activities: Management involves achieving goals through people. Therefore, managers have to interact with superiors as well as the subordinates. They must maintain good relations with them. The inter-personal activities include the subordinates and taking care of the problem.

    #Management as a Discipline!

    Management as a discipline refers to that branch of knowledge which is connected to study of principles & practices of basic administration. It specifies the certain code of conduct to be followed by the manager & also various methods for managing resources efficiently.

    Management as a discipline specifies the certain code of conduct for managers & indicates various methods of managing an enterprise. Management is a course of study which is now formally being taught in the institutes and universities after completing a prescribed course or by obtaining degree or diploma in management, a person can get employment as a manager.

    Any branch of knowledge that fulfills following two requirements is known as the discipline:

    • There must be scholars & thinkers who communicate relevant knowledge through research and publications.
    • The knowledge should be formally imparted by education and training programmes.

    Since management satisfies both these problems, therefore it qualifies to be a discipline. Though it is comparatively a new discipline it is growing at a faster pace.

    #Management as a Group!

    Management as a group refers to all those persons who perform the task of managing an enterprise. When we say that management of ABC & Co. is good, we are referring to a group of people those who are managing. Thus as a group technically speaking, management will include all managers from chief executive to the first – line managers (lower-level managers). But in common practice management includes only top management i.e. Chief Executive, Chairman, General Manager, Board of Directors etc. In other words, those who are concerned with making important decisions, these persons enjoy the authorities to use resources to accomplish organizational objectives & also the responsibility to for their efficient utilization.

    Management as a group may be looked upon in two different ways:

    1. All managers have taken together.
    2. Only the top management

    The interpretation depends upon the context in which these terms are used. Broadly speaking, there are three types of managers:

    • Patrimonial / Family Manager: Those who have become managers by virtue of their being owners or relatives of the owners of the company.
    • Professional Managers: Those who have been appointed on account of their specialized knowledge and degree.
    • Political Managers / Civil Servants: Those who manage public sector undertakings.

    Managers have become a part of elite group of society as they enjoy the higher standard of living in the society.

    #Management as a Profession!

    Over a large few decades, factors such as growing size of the business unit, separation of ownership from management, growing competition etc have led to an increased demand for professionally qualified managers. The task of manager has been quite specialized. As a result of these developments, the management has reached a stage where everything is to be managed professionally.

    A profession may be defined as an occupation that requires specialized knowledge and intensive academic preparations to which entry is regulated by a representative body.

    The essentials of a profession are:

    1. Specialized Knowledge – A profession must have a systematic body of knowledge that can be used for development of professionals. Every professional must make deliberate efforts to acquire expertise in the principles and techniques. Similarly, a manager must have devotion and involvement to acquire expertise in the science of management.
    2. Formal Education & Training – There are no. of institutes and universities to impart education & training for a profession. No one can practice a profession without going through a prescribed course. Many institutes of management have been set up for imparting education and training. For example, a CA cannot audit the A/C’s unless he has acquired a degree or diploma for the same but no minimum qualifications and a course of study has been prescribed for managers by law. For example, MBA may be preferred but not necessary.
    3. Social Obligations – Profession is a source of livelihood but professionals are primarily motivated by the desire to serve the society. Their actions are influenced by social norms and values. Similarly, a manager is responsible not only to its owners but also to the society and therefore he is expected to provide quality goods at reasonable prices to the society.
    4. Code of Conduct: Members of a profession have to abide by a code of conduct which contains certain rules and regulations, norms of honesty, integrity and special ethics. A code of conduct is enforced by a representative association to ensure itself-discipline among its members. Any member violating the code of conduct can be punished and his membership can be withdrawn. The AIMA has prescribed a code of conduct for managers but it has no right to take legal action against any manager who violates it.
    5. Representative Association: For the regulation of the profession, the existence of a representative body is a must. For example, an institute of Charted Accountants of India establishes and administers standards of competence for the auditors but the AIMA, however, does not have any statuary powers to regulate the activities of managers.

    From above discussion, it is quite clear that management fulfills several essentials of a profession, even then it is not a full-fledged profession because: –

    • It does not restrict the entry in managerial jobs for the account of one standard or other.
    • No minimum qualifications have been prescribed for managers.
    • No management association has the authority to grant a certificate of practice to various managers.
    • All managers are supposed to abide by the code formulated by AIMA,
    • Competent education and training facilities do not exist.
    • Managers are responsible for many groups such as shareholders, employees, and society. A regulatory code may curtail their freedom.
    • Managers are known for their performance and not mere degrees.
    • The ultimate goal of business is to maximize profit and not social welfare. That is why Haymes has rightly remarked, “The slogan for management is becoming – ’He who serves best, also profits most’.”

    Is Management an as Profession?

    The corporate form of organization with separation of ownership from management, growing complexities in managing the activities of the organization, and development of an organized body of systematic knowledge of management are essential factors responsible for raising management to the status of a distinct profession.

    A field is normally characterized as a profession when it exhibits the following special features:

    • The systematic body of knowledge.
    • Need for learning and proper organization.
    • Entry restricted on the basis of examination or education, and.
    • The dominance of service motive over the profit motive.

    Except for restricted entry, management qualifies all the other tests of a profession. It is now backed by a systematic body of knowledge. A number of management principles have been developed, which need proper learning and education. Besides, in a number of countries, management institutes, associations, and universities are now imparting knowledge related to management.

    Moreover, the present-day social and moral climate has created new challenges for management. The present-day management must be creative rather than adaptive and must be conscious of their ethical and social responsibilities to the society. Another important development in the field of management has been the rapid increase in the number of professional management consultants, whose quality is also improving by the day. But management fails to qualify the test of professionalism relating to restricted entry.

    Though there is a growing awareness in the society to prefer properly educated and trained people for managing business enterprises, yet self-made managers cannot altogether be eliminated. Thus, management may not be a profession strictly similar to the legal or medical professions, yet professional overtones are very much present in management.

  • Management as, What? As an Art…As a Process!

    Learn and Study, Management as, What? As an Art…As a Process!

    Before You Start Studying, let’s want to know, what you going to learn it. Management can be defined in detail in following categories: Management as an Art, as a Science, as a Process, as an Activity, as a Discipline, as a Group, and as a Profession. Is Management an as Profession? Also learned, the Subsidiary Functions of Management! Management as, What? As an Art…As a Process! Continuously Studying – Management as, What? Now, Learning next part of Management as, What? As an Activity…as a Profession!

    First, define, Management is a universal phenomenon. It is a very popular and widely used term. All organizations – business, political, cultural or social are involved in management because it is the management which helps and directs the various efforts towards a definite purpose. According to Harold Koontz, “Management is an art of getting things done through and with the people in formally organized groups. It is an art of creating an environment in which people can perform and individuals and can co-operate towards the attainment of group goals”. According to F.W. Taylor, “Management is an art of knowing what to do when to do and see that it is done in the best and cheapest way”.

    Management is a purposive activity. It is something that directs group efforts towards the attainment of certain predetermined goals. It is the process of working with and through others to effectively achieve the goals of the organization, by efficiently using limited resources in the changing world. Of course, these goals may vary from one enterprise to another. E.g.: For one enterprise it may be launching new products by conducting market surveys and for other, it may be profit maximization by minimizing cost.

    Management involves creating an internal environment: – It is the management which puts to use the various factors of production. Therefore, it is the responsibility of management to create such conditions which are conducive to maximum efforts so that people are able to perform their task efficiently and effectively. It includes ensuring availability of raw materials, determination of wages and salaries, formulation of rules & regulations etc.

    Management can be defined in detail in following categories :

    • Management as an Art!
    • Management as a Science!
    • Management as a Process!
    • Management as an Activity!
    • Management as a Discipline!
    • Management as a Group, and!
    • Management as a Profession!

    Now Explain it:

    #Management as an Art!

    Art implies the application of knowledge & skill to trying about desired results. An art may be defined as the personalized application of general theoretical principles for achieving best possible results. Art has the following characters –

    • Practical Knowledge: Every art requires practical knowledge, therefore, learning of theory is not sufficient. It is very important to know practical application of theoretical principles. E.g. to become a good painter, the person may not only be knowing different color and brushes but different designs, dimensions, situations etc to use them appropriately. A manager can never be successful just by obtaining degree or diploma in management; he must have also know how to apply various principles in real situations by functioning in the capacity of manager.
    • Personal Skill: Although theoretical base may be same for every artist, each one has his own style and approach towards his job. That is why the level of success and quality of performance differs from one person to another. E.g. there are several qualified painters but M.F. Hussain is recognized for his style. Similarly, management as an art is also personalized. Every manager has his own way of managing things based on his knowledge, experience, and personality, that is why some managers are known as good managers (like Aditya Birla, Rahul Bajaj) whereas others as bad.
    • Creativity: Every artist has an element of creativity in line. That is why he aims at producing something that has never existed before which requires the combination of intelligence & imagination. Management is also creative in nature like any other art. It combines human and non-human resources in a useful way so as to achieve desired results. It tries to produce sweet music by combining chords in an efficient manner.
    • Perfection through practice: Practice makes a man perfect. Every artist becomes more and more proficient through constant practice. Similarly, managers learn through an art of trial and error initially but an application of management principles over the years makes them perfect for the job of managing.
    • Goal-Oriented: Every art is result oriented as it seeks to achieve concrete results. In the same manner, management is also directed towards the accomplishment of pre-determined goals. Managers use various resources like men, money, material, machinery & methods to promote the growth of an organization.

    Thus, we can say that management is an art, therefore, it requires an application of certain principles rather it is an art of highest order because it deals with molding the attitude and behavior of people at work towards desired goals.

    #Management as a Science!

    Science is a systematic body of knowledge pertaining to a specific field of study that contains general facts which explain a phenomenon. It establishes cause and effect relationship between two or more variables and underlines the principles governing their relationship. These principles are developed through the scientific method of observation and verification through testing.

    Science is characterized by following main features:

    Universally acceptance principles:

    Scientific principles represent the basic truth about a particular field of inquiry. These principles may be applied in all situations, at all time & at all places. E.g. – law of gravitation which can be applied in all countries irrespective of the time. Management also contains some fundamental principles which can be applied universally like the Principle of Unity of Command i.e. one man, one boss. This principle is applicable to all type of organization – business or non-business.

    Experimentation & Observation:

    Scientific principles are derived from scientific investigation & researching i.e. they are based on logic. E.g. the principle that earth goes around the sun has been scientifically proved.

    Management principles are also based on scientific inquiry & observation and not only on the opinion of Henry Fayol. They have been developed through experiments & practical experiences of large no. of managers. E.g. it is observed that fair remuneration to personal helps in creating a satisfied workforce.

    Cause & Effect Relationship:

    Principles of science lay down cause and effect relationship between various variables. E.g. when metals are heated, they are expanded. The cause is heating & result is expansion.

    The same is true for management, therefore it also establishes cause and effect relationship. E.g. lack of parity (balance) between authority & responsibility will lead to ineffectiveness. If you know the cause i.e. lack of balance, the effect can be ascertained easily i.e. ineffectiveness. Similarly, if workers are given bonuses, fair wages they will work hard but when not treated in fair and just manner, reduces the productivity of the organization.

    Test of Validity & Predictability:

    The validity of scientific principles can be tested at any time or any number of times i.e. they stand the test of time. Each time these tests will give the same result. Moreover, future events can be predicted with reasonable accuracy by using scientific principles. E.g. H2 & O2 will always give H2O.

    Principles of management can also be tested for validity. E.g. principle of unity of command can be tested by comparing two persons – one having the single boss and one having 2 bosses. The performance of 1st person will be better than 2nd.

    It cannot be denied that management has a systematic body of knowledge but it is not as exact as that of other physical sciences like biology, physics, and chemistry etc. The main reason for the inexactness of science management is that it deals with human beings and it is very difficult to predict their behavior accurately. Since it is a social process, therefore it falls in the area of social sciences. It is a flexible science & that is why its theories and principles may produce different results at different times and therefore it is a behavioral science. Ernest Dale has called it a Soft Science.

    #Management as both Science and Art!

    Management is both an art and a science. The above-mentioned points clearly reveal that management combines features of both sciences as well as art. It is considered as a science because it has an organized body of knowledge which contains certain universal truth. It is called an art because managing requires certain skills which are personal possessions of managers. Science provides the knowledge & art deals with the application of knowledge and skills. A manager to be successful in his profession must acquire the knowledge of science & the art of applying it.

    Therefore management is a judicious blend of science as well as an art because it proves the principles and the way these principles are applied is a matter of art. Science teaches to ’know’ and art teaches to ’do’. E.g. a person cannot become a good singer unless he has knowledge about various ragas & he also applies his personal skill in the art of singing. Same way it is not sufficient for the manager to first know the principles but he must also apply them in solving various managerial problems that is why, science and art are not mutually exclusive but they are complementary to each other (like tea and biscuit, bread and butter etc.). The old saying that “Manager is Born” has been rejected in favor of “Managers are Made”. It has been aptly remarked that management is the oldest of art and youngest of science. To conclude, we can say that science is the root and art is the fruit.

    #Management as a Process!

    As a process, management refers to a series of inter-related functions. It is the process by which management creates, operates and directs purposive organization through systematic, coordinated and co-operated human efforts, according to George R. Terry, “Management is a distinct process consisting of planning, organizing, actuating and controlling, performed to determine and accomplish stated objective by the use of human beings and other resources”.

    As a process, management consists of three aspects:

    Management is a social process: Since human factor is most important among the other factors, therefore management is concerned with developing the relationship among people. It is the duty of management to make the interaction between people – productive and useful for obtaining organizational goals.

    Management is an integrating process: Management undertakes the job of bringing together human physical and financial resources so as to achieve an organizational purpose. Therefore, is an important function to bring harmony between various factors.

    Management is a continuous process: It is a never-ending process. It is concerned with constantly identifying the problem and solving them by taking adequate steps. It is an on-going process.

    Continuously Studying – Management as, What? Now, Learning next part of Management as, What? As an Activity…as a Profession!

  • Explain the Process of Job Analysis!

    Explain the Process of Job Analysis!

    Learn and Study, Explain the Process of Job Analysis! 

    Job Analysis is a systematic process of gathering complete information about the job duties and responsibilities required to perform a specific job. The job analysis is concerned only with the job and not with the job holders, but however, the information about the job is gathered from the incumbents. Where to place the employees in order to best utilize their skills and talent? How to determine the need for new employees in the organization? How to eliminate unneeded jobs? How to set realistic performance measurement standards? How to identify the jobs and prepare a plan to fill them? Also learn, Methods, Purpose, Explain the Process of Job Analysis!

    Well, all this can be effectively done by a proper and thorough job analysis. Managers deal such kinds of challenges in day-to-day company operations where they need to fulfill effectively and efficiently fulfill the organization’s requirements related to human resource recruitment, selection, performance, satisfaction and cutting down and adding extra responsibilities and duties. And there is no scope where they can avert the risk of being wrong.

    An effective and right process of analyzing a particular job is a great relief for them. It helps them maintain the right quality of employees, measure their performance on realistic standards, assess their training and development needs and increase their productivity. Let’s discuss the job analysis process and find out how it serves the purpose. Also learned, Explain Advantages and Disadvantages of Job Analysis!

    #Job Analysis Process:

    Identification of Job Analysis Purpose: Well any process is futile until its purpose is not identified and defined. Therefore, the first step in the process is to determine its need and desired output. Spending human efforts, energy as well as money is useless until HR managers don’t know why data is to be collected and what is to be done with it.

    Who Will Conduct Job Analysis: The second most important step in the process of job analysis is to decide who will conduct it. Some companies prefer getting it done by their own HR department while some hire job analysis consultants. Job analysis consultants may prove to be extremely helpful as they offer unbiased advice, guidelines, and methods. They don’t have any personal likes and dislikes when it comes to analyzing a job.

    How to Conduct the Process: Deciding the way in which job analysis process needs to be conducted is surely the next step. A planned approach about how to carry the whole process is required in order to investigate a specific job.

    Strategic Decision Making: Now is the time to make the strategic decision. It’s about deciding the extent of employee involvement in the process, the level of details to be collected and recorded, sources from where data is to be collected, data collection methods, the processing of information and segregation of collected data.

    Training of Job Analyst: Next is to train the job analyst about how to conduct the process and use the selected methods for collection and recording of job data.

    Preparation of Job Analysis Process: Communicating it within the organization is the next step. HR managers need to communicate the whole thing properly so that employees offer their full support to the job analyst. The stage also involves preparation of documents, questionnaires, interviews and feedback forms.

    Data Collection: Next is to collect job-related data including educational qualifications of employees, skills, and abilities required to perform the job, working conditions, job activities, reporting hierarchy, required human traits, job activities, duties and responsibilities involved and employee behavior.

    Documentation, Verification, and Review: Proper documentation is done to verify the authenticity of collected data and then review it. This is the final information that is used to describe a specific job.

    Developing Job Description and Job Specification: Now is the time to segregate the collected data into useful information. Job Description describes the roles, activities, duties, and responsibilities of the job while job specification is a statement of educational qualification, experience, personal traits and skills required to perform the job.

    Thus, the process of job analysis helps in identifying the worth of the specific job, utilizing the human talent in the best possible manner, eliminating unneeded jobs and setting realistic performance measurement standards.

    This few Process of job analysis also Studying:

    Job analysis is as useful is not so easy to make. In fact, it involves a process. Though there is no fool-proof process of making job analysis, the following are the main steps involved in job analysis:

    1. Organisational Job Analysis: Job analysis begins with obtaining pertinent information about a job’. This, according to Terry is required to know the makeup of a job, its relation to other jobs, and its contribution to the performance of the organization.

    Such information can be had by dividing back­ground information in various forms such as organisation charts i.e., how the particular job is related to other jobs; class specifications i.e., the general requirement of the job family; job description i.e., starting point to build the revised job description, and flow charts i.e., flow of activities involved in a particular job.

    2. Selecting Representative Jobs for Analysis: Analysing all jobs of an organization is both costly and time-consuming. Therefore, only a representative sample of jobs is selected for the purpose of detailed analysis.

    3. Collection of Data for Job Analysis: In this step, job data features of the job and required qualifications of the employee are collected. Data can be collected either through questionnaire, observation or interviews. However, due care should be taken to select and use the method of data collection that is the most reliable in the given situation of the job.

    4. Preparing Job Description: The job information collected in the above ways is now used to prepare a job description. The job description is a written statement that describes the tasks, duties, and responsibilities that need to be discharged for effective job performance.

    5. Preparing Job Specification: The last step involved in job analysis is to prepare job specifi­cation on the basis of collected information. This is a written statement that specifies the personal qualities, traits, skills, qualification, aptitude etc. required to effectively perform a job.

    Explain the Process of Job Analysis - ilearnlot

  • Explain the Methods of Job Analysis, with Process!

    Explain the Methods of Job Analysis, with Process!

    Learn and Understand, Explain the Methods of Job Analysis, with Process!

    If you want to study first the Purpose of Job Analysis! So study for better understand. Then learn the Methods of Job Analysis! Now, Though there are several methods of collecting job analysis information yet choosing the one or a combination of more than one method depends upon the needs and requirements of an organization and the objectives of the job analysis process. Typically, all the methods focus on collecting the basic job-related information but when used in combination may bring out the hidden or overlooked information and prove to be great tools for creating a perfect job-candidate fit. Also learn, Meaning and Definition, Explain the Methods of Job Analysis, with Process!

    Selecting an appropriate job analysis method depends on the structure of the organization, hierarchical levels, nature of job and responsibilities and duties involved in it. So, before executing any method, all advantages and disadvantages should be analyzed because the data collected through this process serves a great deal and helps organizations cope with current market trends, organizational changes, high attrition rate and many other day-to-day problems.

    Let’s discuss few of job analysis methods that are commonly used by the organizations to investigate the demands of a specific job.

    Methods of Job Analysis:

    Most Common Methods of Job Analysis

    #Observation Method:

    A job analyst observes an employee and records all his performed and non-performed task, fulfilled and unfulfilled responsibilities and duties, methods, ways and skills used by him or her to perform various duties and his or her mental or emotional ability to handle challenges and risks. However, it seems one of the easiest methods to analyze a specific job but truth is that it is the most difficult one. Why? Let’s Discover.

    It is due to the fact that every person has his own way of observing things. Different people think different and interpret the findings in different ways. Therefore, the process may involve personal biases or likes and dislikes and may not produce genuine results. This error can be avoided by proper training of job analyst or whoever will be conducting the job analysis process.

    #This particular method includes three techniques: Direct observation, Work Methods Analysis, and Critical Incident Technique. The first method includes direct observation and recording of the behavior of an employee in different situations. The second involves the study of time and motion and is specially used for assembly-line or factory workers. The third one is about identifying the work behaviors that result in performance.

    #Interview Method:

    In this method, an employee is interviewed so that he or she comes up with their own working styles, problems faced by them, use of particular skills and techniques while performing their job and insecurities and fears about their careers.

    This method helps interviewer know what exactly an employee thinks about his or her own job and responsibilities involved in it. It involves analysis of job by the employee himself. In order to generate honest and true feedback or collect genuine data, questions asked during the interview should be carefully decided. And to avoid errors, it is always good to interview more than one individual to get a pool of responses. Then it can be generalized and used for the whole group.

    #Questionnaire Method:

    Another commonly used job analysis method is getting the questionnaires filled from employees, their superiors, and managers. However, this method also suffers from personal biasness. A great care should be taken while framing questions for different grades of employees.

    In order to get the true job-related info, management should effectively communicate it to the staff that data collected will be used for their own good. It is very important to ensure them that it won’t be used against them in anyway. If it is not done properly, it will be a sheer wastage of time, money and human resources.

    These are some of the most common methods of job analysis. However, there are several other specialized methods including task inventory, job element method, competency profiling, technical conference, threshold traits analysis system and a combination of these methods. While choosing a method, HR managers need to consider time, cost and human efforts included in conducting the process.

    Process Methods of Job Analysis:

    Job analysis data is collected in several ways with only the specification of the person who is going to carry out the job analysis. Often workers from the HR department participate in job evaluations; also depending on the different methods of job analysis even the managers, bosses, and employees participate. During complicated job analysis, the industrial engineers handle the time and motion studies.

    Another facet of job analysis is the contemplation of the technique used; some techniques of job analysis or methods are observations, interviews, questionnaires and other specific analysis methods. The applications of the techniques used in job analysis mostly depend on the type of organization, its fundamental requirements, and circumstances.

    The various methods of Job Analysis are:

    1. Observation:

    In the job analysis method of observation, the performance of the worker is monitored by a manager, supervisor or job analyst, industrial engineer; the performance is recorded to see whether the tasks and duties are properly done. Job analysis observation may either be continuous or intermittent sampling but the observation is always of limited use since most jobs do not have the capability of doing the observation of the complete job cycles.

    Hence observation is efficient in cyclic jobs and when used combined with other methods. The observation might be used by the supervisor or manager to be familiar with the job and its requirements. During other methods in job analysis, the observation method is immensely useful as it provides vital information about the job.

    2. Work Sampling:

    Work Sampling is a kind of observation; it does not need thorough concentration in all its minute aspects through the whole work cycle. As an alternative; the person doing the job analysis decides the matter and work pace on a specific workday according to the statistical sampling of various actions rather than by constant monitoring and detailed timing of each action. Work Sampling is most effective for regular monotonous jobs and cyclic repetitive jobs.

    3. Employee Diary/Log:

    In this method, the employee himself records his performance in a diary/log along with the frequency of the duty and the time needed to perform. This technique is useful in some ways but becomes tiresome for the employees to record all their duties and the timings. Even some employees believe that the employee diary/log method diverts them from their work and creates unnecessary distractions.

    4. Interviewing:

    In the interview technique of collecting data, the manager or the overseer monitors every job place and the worker performing it. Then a model question or interview form is made to ask the workers and note the answers and to get the proper analysis and complete comprehension of the job and its requirements; one has to talk and interview both the employee and the supervisor.

    This method is exhaustive when the interviewer has to converse with two or more employees in one job. Often the professional and managerial jobs are very difficult and complex to analyze; hence require complex longer interviews. Thus the interviewing method should be combined with any other method for proper assessment.

    5. Questionnaires:

    Questionnaires method is the most popular technique for collecting information in job analysis and a survey device is created and distributed amongst the employees and managers to read and answer. The merits of this method are that bulk information can be collected from the employees without much effort; that also in a short span of time.

    But the problems of job analysis is that it assumes the employee to answer the questions truthfully without any bias but that in reality is quite impossible; as opinions on their work and other things will always be influenced by their personal beliefs. Due to this problem, the job analysis questionnaire is mostly combined with the interviews and observations.

    6. Critical incident method:

    This method consists of observation and documentation of other instances and whether the behaviors were effective or futile to produce the desired results. The critical incident method of behavior includes; the reason of the incident and the circumstance, the work was done by the employee and how it was futile or useful, the assumed outcome of the behavior and also an analysis on the influence the behavior of an employee have on the outcome.

    This method vastly differs from the other job evaluation, methods of conducting job analysis as only here the employee behavior is not recorded when it is performed but later when the behavior has been evaluated to be futile or useful depending on the results.

    Here the behavior is described in retrospect and it is acknowledged that recording of past actions is more difficult and complicated than of present actions when the performance is continued.

    Explain the Methods of Job Analysis with Process - ilearnlot

  • What are the Types of test taking in the Selection Process?

    What are the Types of test taking in the Selection Process?

    Learn, What are the Types of test taking in the selection process? Explaining!

    Job seekers who pass the screening and the preliminary interview are called for tests. Different types of tests may be administered, depending on the job and the company. Generally, tests are used to determine the applicant’s ability, aptitude, and personality. Also learn, Successful Writing at Work, What are the Types of test taking in the selection process?

    Selection activities usually follow a standard pattern, beginning with an initial screening interview and concluding with the final employment decision. It is very important for human resources management because this process helps human resources personnel to identify the candidate with the necessary qualification to perform successfully on the job.

    The following are the type of tests:

    1). Ability tests!

    Assist in determining how well an individual can perform tasks related to the job. An excellent illustration of this is the typing tests given to a prospective employer for the secretarial job. Also called ‘ACHEIVEMENT TESTS’. It is concerned with what one has accomplished. When applicant claims to know something, an achievement test is taken to measure how well they know it. Trade tests are the most common type of achievement test given. Questions have to prepare and test for such trades as the asbestos worker, punch-press operators, electricians, and machinists. There are, of course, many unstandardized achievement tests given in industries, such as typing or dictation tests for an applicant for a stenographic position.

    2). Aptitude test!

    Aptitude tests measure whether an individual has the capacity or latent ability to learn a given job if given adequate training. The use of aptitude test is advisable when an applicant has had little or no experience along the line of the job opening. Also, aptitudes tests help determine a person’s potential to learn in a given area. An example of such test is the general management aptitude tests (GMAT), which many business students take prior to gaining admission to a graduate business school programme.

    Aptitude test indicates the ability or fitness of an individual to engage successfully in any number of specialized activities. They cover such areas clerical aptitude, numerical aptitude, mechanical aptitude, motor coordination, finger dexterity and manual dexterity. These tests help to detect positive negative points in a person’s sensory or intellectual ability. They focus attention on a particular type of talent such as learning or reasoning in respect of a particular field of work.

    Forms of aptitude test:

    • Mental or intelligence tests: They measure the overall intellectual ability of a person and enable to know whether the person has the mental ability to deal with certain problems.
    • Mechanical aptitude tests: They measure the ability of a person to learn a particular type of mechanical work. These tests help to measure specialized technical knowledge and problem-solving abilities if the candidate. They are useful in selection of mechanics, maintenance workers, etc.
    • Psychomotor or skills tests: They are those, which measure a person’s ability to do a specific job. Such tests are conducting in respect of semi-skilled and repetitive jobs such as packing, testing, and inspection, etc.

    3). Intelligence test!

    This test helps to evaluate traits of intelligence. Mental ability, the presence of mind (alertness), numerical ability, memory and such other aspects can measure. The intelligence is probably the most widely administered standardized test in the industry. It is taken to judge numerical, skills, reasoning, memory and such other abilities.

    4). Interest Test!

    This is conducting to find out likes and dislikes of candidates towards occupations, hobbies, etc. such tests indicate which occupations are more in line with a person’s interest. Such tests also enable the company to provide vocational guidance to the selected candidates and even to the existing employees. These tests are using to measure an individual’s activity preferences. These tests are particularly useful for students considering many careers or employees deciding upon career changes.

    5). Personality Test!

    The importance of personality to job success is undeniable. Often an individual who possesses the intelligence, aptitude, and experience for certain has failed because of inability to get along with and motivate other people. It is conducted to judge maturity, social or interpersonal skills, behavior under stress and strain, etc. this test is very much essential in case of selection of sales force, public relation staff, etc. where personality plays an important role. Personality tests are similar to interest tests in that they, also, involve a serious problem of obtaining an honest answer.

    6). Projective Test!

    This test requires interpretation of problems or situations. A psychological test in which words, images, or situations are presenting to a person and the responses analyzing for unconscious expression of elements of personality that they reveal. For example, a photograph or a picture can show to the candidates and they are asking to give their views, and opinions about the picture. Also Understand, the Selection Process in HRM!

    7). General knowledge Test!

    Nowadays G.K. Tests are very common to find general awareness of the candidates in the field of sports, politics, world affairs, current affairs. As well as, General knowledge has been defining in differential psychology as “culturally valued knowledge communicated by a range of non-specialist media” and encompassing a wide subject range. Also, this definition excludes highly specializing learning that can only obtain with extensive training and information confined to a single medium. General knowledge is an important component of crystallized intelligence and is strongly associated with general intelligence, and with openness to experience.

    8). Perception Test!

    At times perception tests can conduct to find out beliefs, attitudes, and mental sharpness.etc. Perception references how individuals understand and view a stimulus or an event. As such, a perception test measures an individual’s understanding or responsiveness to different things. Many types of perception exist, and most have at least one available test. These may include sensory perception tests, cultural or worldview perception tests, and self-perception tests.

    9). Graphology Test!

    It is designing to analyze the handwriting of the individual. It has been saying that an individual’s handwriting can suggest the degree of energy, inhibition, and spontaneity, as well as disclose the idiosyncrasies and elements of balance and control. For example, big letters and emphasis on capital letters indicate a tendency towards domination and competitiveness. A slant to the right, moderate pressure and good legibility show leadership potential.

    10). Polygraph Test!

    The polygraph is a lie detector, which is designing to ensure the accuracy of the information given in the applications. Department store, banks, treasury offices and jewelry shops, that is, those highly vulnerable to theft or swindling may find polygraph tests useful.

    11). Medical Test!

    It reveals physical fitness of a candidate. With the development of technology, medical tests have become diversified. Also, Medical servicing helps measure and monitor a candidate’s physical resilience upon exposure to hazardous chemicals.

    What are the Types of test taking in the Selection Process - ilearnlot
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