Industrial Ion and Management by DV Shirbhate

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1. MEANING OF ECONOMIC POLICY

There are certain definite objectives of an economy of every country. To fulfill these objectives some useful measures are adopted. Economic policy is related to the economy of the country as a whole or to a region. It is nothing but a guideline to those who have to carry out their duties effectively for obtaining desired goals. According to Prof. G. K. Shaw," Economic policies are broad guides to thinking. They are general statements which guide or channel the thinking of all personnel charged with decisionmaking. Although these guides are broad they do not have their definite limitations at either end thus delimiting the area." AIMS OF ECONOMIC POLICY There are different objectives of economic policy. These objectives differ from country to country taking into consideration the period environment, and political thinkings. Some of the important objectives of economic policy are as follows. 1] Economic Development Economic development or growth refers to the process where by, the people of the country or region come to utilize resources available to bring about a sustained increase in per capita production of goods and services. It is a process where by an economy's real national income increases over a long period of time. Economic development does not mean an increase in per capita income only. It is necessary to see that how many goods services are available to the public? Where the inequality in society is decreasing are not? In short economy development is a process in which there is the continuous increase in per capita income, in equality in income and wealth is reduced, an increase in welfare of the people and for happy and prosperous life, all facilities are available. For economic development in India we have adopted the device of economic planning. 2] Full Employment Full employment has always remained an objective of economic policy. Full employment does not mean that there is no unemployment at all. It means that unemployment is reduced to short intervals that very soon one will be wanted in one's old job again. For creating full employment, employment opportunities should be more than the people seeking employment. According to economists the full employment situation can only be created in planned, centralized and controlled economy. Creation of job opportunities does not merely imply a rise in Labour absorption. But it has to be at rising level of wages and salaries i.e. the employment has to be productive and with increasing productivity. In our country, in every five year plan expanding employment opportunities has been given a place of prominence to provide jobs to the unemployed and more work to the under employed. 3] Self Reliance The economy need not to depend on foreign resources. Self reliance implies reduction in the dependence on foreign aid or concessional foreign capital. It simply means that we spend on imports as much we can earn from exports. It has several dimension. One is change in the composition of imports through a diversification of domestic production to lessen the dependence on foreign countries for commodities, that are of key importance for the economy. We should however be self reliant in case of goods that are vital for the economic life of the country. Another important dimension of this objective is the promotion of exports so that we can earn more to finance our rising bills of imports. In short self reliance means that we finance our imports from our own resources. 4] Rising investment income ratio
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It is one of the aims of economic policy, aiming at rising the proportion of income directed to investment. It builds an increasing potential for stepping up the growth of national income. Rising the investment rate also involves a corresponding increase in savings. This means that such a proportion of national income may be end marked for consumption that the requisite saving for investment is forth coming in the initial stages at low levels of income, domestic savings may not be sufficient for the purpose. Hence the gap between the domestic savings and the investment is to be sought to be filled through the entry of foreign capital. Ultimately the domestic investment has to be matched by domestic saving. 5] Promotion of Social Justice Social justice has two major dimensions one relates to the alleviation of poverty. It consists in the uplift of the poorest group in society. They belong to the categories of land less Labourers, small and marginal farmers, rural artesian including fishermen and backward glasses and scheduled tribes. The second dimension of the social justice consists in the reduction of inequalities. This can be reduced by the redistribution of assets. In villages it refers to the land distribution measures. In urban areas it implies curbs on the income earning assets, including restriction on monopolies. It also refers to reduction in the regional imbalance i.e. implying a faster growth of the backward regions so as to reduce the distance between the high income and low income regions. FACTORS OF PRODUCTION In an ordinary language production means creation of something which is tangible, visible and material. Man can neither create nor destroy any matter. All that man can do is to take the existing matter and add more utility to it either changing the form or keeping it over a period of time. Thus in economics by the term production we mean "creation of utilities having value in exchange". Production does not mean only production of material goods but also includes non material goods or services like transport and communication, insurance and banking, trade and commerce and other professional services. The distributive or exchange services in fact all constitute a part of the production. Production of any commodity requires a very large number of resources. It is the result of cooperation between factors or agents of production. Economists have grouped these resources into four categories i.e. land, Labour, capital and organization. Land Land in economics has a much wider meaning then being understood merely as a portion of surface of the earth. In economics land refers to all natural resources and not the land space only. In the sense land refers to forests, lakes, seas, mountains, climate, rainfall, air, weather, wind, minerals, oils etc. In fact everything which is not made by man and which we collectively call, "as a gift of nature." Since payment is not made for climate and weather conditions land can normally be taken as land space. Peculiarities of land Land as a factor of production has some peculiarities which are as follows 1. Land is a free gift of nature. 2. Land is fixed and limited in quantity. 3. Land is said to be permanent. 4. Land lacks mobility. 5. Land is immobile factor of production did 6. Land is of different qualities. 7. Land differs in fertility. 8. Land provides in finite degree of fertility.
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Labour In an ordinary language Labour stands for unskilled labour. But in economics Labour stands for all types of the skilled and unskilled, manual and mental, ordinary and managerial Labour. Dr. Marshall defines Labour as, "Labour is the exertion of mind or body, partly or wholly with a view to secure a income apart from the pleasure derived directly from the work." Labour is a hired factor of production and receives wages for his efforts. Peculiarities of Labour There are some important peculiarities of Labour which are as follows1. Labour is inseparable from Labourer. 2. Labour is a human factor of production. 3. Labour is a perishable factor of production. 4. Labour is most active factor of production. 5. Supply of Labour depends on population. 6. Labour is imperfectly mobile. 7. Services of Labour bought and sold but not the Labourer. 8. Labourers are economically weak. Capital In an ordinary language by capital we mean money assets i.e. bank deposits and property. In economics capital refers to all man made appliances and all types of wealth which are used in production. It consists of machinery, tools, buildings, materials, fuel etc. Capital consists of goods and commodities that are produced, to be used for further production. Capital is basically a man made factor of production. Capital is that part of wealth which is used for further production. Peculiarities of capital Following are some of the important peculiarities of capital 1. Capital is a man made factor of production. 2. Capital is relatively durable. 3. Capital goods do not satisfy human wants directly. 4. Capital is a stock of producer's goods. 5. Capital is productive. 6. Capital is relatively elastic in supply. Organization Organization is that factor of production which brings together all other factors of production namely the land, Labour and capital organization refers to the services of the organizer or the entrepreneur who organizes and manages the business, who takes the initiative in introducing a new process, a new variety of commodity and who finally takes the risk of business. The fundamental difference between the entrepreneur and all other factors of production is that while the latter are employed and paid a fixed and contractual payment by the former, the entrepreneur himself is not employed by any one and is not paid a fixed salary. The remuneration to all factors of production is always positive, but the reward of the entrepreneur can be negative. ELASTICITY OF DEMAND The demand for any commodity or service depends on the price of that commodity or service. When the price falls the quantity demand rises and when the price increases the quantity demanded fall. This is known as a law of demand in economics. This law of demand explains the qualitative change in demand.
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Meaning The concept of elasticity of demand is a measure of sensitiveness of demand to a change in any casual factor. It indicates how the amount of demand changes with respect to the change in any factor affecting demand i.e. price, income or price of relative factor. Dr. Marshall defines the concept of elasticity of demand as follows "Elasticity of demand is a ratio with which the demand changes in response to a change in price." The change in demand due to change in price is also known as elasticity of demand. Elastic and Inelastic Demand Elasticity is a characteristic of demand some demands may be in elastic to price changes. Elastic Demand When a change in price brings about more than proportionate change in quantity demanded, the demand is said to be elastic. In other words we can say that if a given percentage change in price brings about a large percentage change in quantity demanded, the demand is said to be elastic or relatively elastic or greater than one for example the demand for Luxuries and comforts i.e. Motor cars, TV, Washing machines, Refrigerators etc. In this diagram it is seen that when the price falls from OP to OP 1 the demand expands from OM to OM1 that is to say that the change in demand is greater than the change in price. In-Elastic Demand When a change in price brings about less than proportionate change in quantity demanded, the demand is said to be inelastic demand. In other words we can say that, if a given percentage change in price brings about a smaller percentage change in quantity demanded, the demand is said to be inelastic are smarter than one. For example the demand for necessaries or too costly commodities is inelastic i.e. wheat, rice, diamonds, clothes etc. In this diagram it is seen that when the price falls from OP to OP 1 demand expands from OM to OM1 that is to say that the change in demand a smaller than the change in price.
MEASUREMENT OF ELASTICITY OF DEMAND There are various methods of measurement of elasticity of demand. But there are three methods popularly employed for the measurement of elasticity of demand. These methods are 1) Total outlay or expenditure method 2) Point method 3) Are method. Let us explain each one of these methods. 1] Total Outlay Method This method of measurement of elasticity of demand is suggested by Dr. Marshall. These methods consists in finding out the influence of the change in price on the total outlay. According to Marshall elasticity of demand maybe i) more than one ii) equal to one and iii) less than one.
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i) More than one A falling in price brings about the a change in quantity demanded in such a way that the total outlay or expenditure goes on increasing for instance. Price per unit 5=00 4=00 2=00 Quantity demanded 200 units 300 units 750 units Total outlay or expenditure 1000=00 1200=00 1500=00
ii) Unity or One A fall in price brings about a change in quantity demanded is such a way that the total outlay on expenditure remains the same. For instance, Price per unit 5=00 4=00 2=00 Quantity demanded 200 units 250 units 500 units Total outlay or expenditure 1000 =00 1000=00 1000=00
iii) Less than One A fall in price brings about a change in quantity demanded in such a way that the total outlay or expenditure goes on decreasing. For instance, Price per unit 5=00 4=00 2=00 Quantity demanded 200 units 200 units 300 units Total outlay or expenditure 1000=00 800=00 600=00
This method of measurement of elasticity of demand can also be explained with the help of other example also.
Price 10 9 8 7 6 5 4 3 2 1
Demand 1 2 3 4 5 6 7 8 9 10
Total Expenditure 10 18 24 28 30 30 28 24 18 10
Elasticity of demand
1 < E.D. 1=1 1 > E.D.
2] Point Method The point method of measurement of elasticity of demand is suggested by Marshall and it is now become the most suitable method. We take a straight line demand curve AB which intercepting
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the OX and OY as shown in the figure. Take any point on the demand curve and we can easily find out the elasticity of demand. Take P and P1 point on the demand curve and apply the following formula, Lower dis tan ce from the point on demand curve Elasticity of demand = Upper dis tan ce from the point on demand curve
PB PA P1B or at point P1 ED = P1A If the lower portion is equal to the upper portion then elasticity of demand is said to be one and if the lower portion is greater than the upper portion then elasticity of demand is more than one or relatively elastic and the lower portion is less than the upper portion elasticity of demand is said to be less than one or relatively in elastic.
Now at point P ED =
3] Arc Method Point method of measuring elasticity-of demand is a good one but it is not very realistic since demand schedule with minute changes is prices and quantities demanded rarely available the formula of measuring the arc elasticity.
ED=
Change in quantity demanded original quanitity + quantity after change Change in price original price + price after change
A numerical example can be given to illustrate the are elasticity of demand. Suppose the price of' the commodity is Rs 10 and the quantity demanded at this price is 100 units. Suppose the price falls to Rs 8 and the quantity demanded increases to 140 units. Then the are elasticity will be 100 140 100 + 140 ED = 10 8 18 + 8 40 240 = 2 18 40 240 = 2 18 18 = 1 .5 = 12
PROBLEMS OF UN-EMPLOYMENT Unemployment is a state of worklessness for a man tit or willing to work. it is a condition of involuntary , not voluntary idleness, the large numbers of beggars and sadhus in India who are not willing to offer themselves for gainful employment can not considered as unemployed. Therefore we are mainly concerned with those men and women who constitute the labour force of the country, are able-bodied and willing to work but are not gainfully employed. Then, does it means that each individual who forms a part of the labour force of the community should gainfully be employed? No. Full employment does not mean that every man and women in the country who is fit and free for
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work is employed productively on every day. Some fractional unemployment there will in a progressively society. Full employment means that unemployment is reduced to short intervals of standing by, with the certainly that very soon one will be wanted in one's old job again or will be wanted in a new job that is within one's powers. India is an underdeveloped though a developing country. The nature of unemployment therefore differs from the one that prevail in industrially advanced countries. Un-employment in India is not the result of deficiency effective demand but a consequence of shortage of capital equipment or other complementary resources.
CAUSES OF UN-EMPLOYMENT The different causes of unemployment is India can be categorized into the following three, i) Under development ii) In adequate employment planning and iii) Rapid population growth. Let us discuss one by one. 1] Under development In the context of vast and varied unutilised natural resources as also manpower, the Indian economy, by and large, continues to be in a state of under development. The rate of growth in agriculture sector is low and therefore the rate of rise in employment in such sector is small. At the same time in the industrial sector the employment is growing at a very slow pace. The low capital formation for long inhibited the growth potential of activities both in the agricultural sector and the industrial sector. The inadequacy of irrigation facilities, the industrial shortage of fertilizers, and power, unsatisfactory transport facilities etc. caused largely by slow growth of the capital goods sector have adversely affected the expansion rate of work opportunities in the must important segment of the Indian economy namely agriculture. Similarly the developments of industrial have also been hindered by the non availability of machines, transport, essential raw materials etc. 2] Inadequate employment planning Planning in India has not contributed adequately to the solution of the problem of unemployment. This is largely because of the lower priority to the employment objective and the underrating of human resources. No consideration was given or appropriate berth found in the plans for policies like devising an appropriate real wage policy as an instrument of employment expansion. To this over alt inadequacy of planning may be added the weak balancing of man power needs and supplies in the various branches of production, in the various regions and in the various skills. In some sectors of the economy there is more than we need while in others there is less than required. These imbalances have largely arisen in the sphere of educated and trained personnel-such as engineers, cost accountants, administrators etc. 3) Rapid Population growth The rapid population growth since 1951 has adversely affected unemployment situation largely in two ways firstly it has directly affected it by making large additions to labour force. It is also true that the rate of job expansion could never have been as high as population growth would have required. Therefore the population factor has contributed to the worsening of unemployment. Secondly the rapid growth of population has indirectly affected in reducing the resources available for capital formation. Any rise in population means large additional expenditure on their rearing up, maintenance, education etc. As a result more resources get used up in private consumption i.e. food, clothing etc. and in the public consumption i.e. drinking water, electricity, medical and educational facilities etc. This has reduced the opportunities of diverting a larger proportion of marginal incomes to saving and investment. Population growth has thus created hurdles in the way of fast growth of the economy and retarded the growth of job opportunities.
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MEASURES TO REDUCE UN-EMPLOYMENT After an understanding the causes of unemployment, now we take up the measures necessary for the eradication of this problem. The measures devised have been many and of varied nature. These are as follows: 1] Employment-biased investment and production In quite many fields investment choices have been made in favour of labour intensive projects. Employment generative resources should be given priority for example irrigation, roads, construction etc. .In the same way the pace of mechanization is sought to be regulated to ensure that labour absorption is not adversely affected. Again medium, small and inicillary units are more labour absorbing, these are to be promoted in several ways. For example production of certain products is entrusted to those medium and small units. In addition much employment is generated in the small scale, village and cottage industries through the reservation of a number of products for these units. 2] Special programs for rural and weaker section Within the over all employment bias to investment and production, these are special measures to help people in rural areas where most of the unemployment exists, and the poorest of the population which are the hardest hit from unemployment. Some of the special programs which can provide employment to rural population area as follows: The Integrated Rural Development Program (IRDP) aims at uplifting the poorest among the poor. The small Farmer's Development Agency (SFDA) seeks to help weak farmers. The Drought prone Area program (DPAP) is to develop areas frequently affected by drought. The National scheme of Training of Rural Youth for Self Employment (TRYSEM) to equip the youth with necessary skills and technology so as to equip them to take up self employment. The National Rural Employment program (NREP) provides work for people which depend upon their labour for earnings. For the landless labour there is also the Rural landless Employment Guarantee program (RLEGP) which guarantees minimum employment in the lean season. These schemes are by and large labour intensive, quick maturing and providing direct employment to the needy. These schemes provide assistance both financial and non-financial for self employed and direct employment to labourers in some cases payments are made partly in cash and partly in kind namely in wheat and rice at concessional rates to ensure a minimum level of real wage. 3] Employment for educated All the measures for development will create large opportunities of employment for the educated. The different types of personnel needed in thousands pertain to village level workers for extension work, agricultural research, agricultural census schemes like operation flood, fishery project etc. will take a very large number of educated persons for infrastructural support, technical input supply. Again in Block level planning which requires personnel for survey, planning, monitoring, evaluation etc. As a result of increasing production in the commodity sector there is bound to be large employment for the educated in such fields as processing, marketing, trading, banking etc. 4] Employment oriented planning Employment creation can be promoted in several ways. One is selection of techniques with lower capital intensity of production, provided efficiency is preserved secondly specialising in the production of labour intensive good and transforming them in to capital goods in a international trade and thirdly more employment through labour intensive measures to produce more food. Thus there is a wide range of possibilities to make Indian planning employment oriented.
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5] Using surplus labour At present the vast surpluses of labour going to waste. Their use will mean employment of them. For the proper use of infrastructural investment i.e. roads, wells, storage capacity, building, water channels etc. The important point to be emphasized in this context is to avoid inflationary impact of such employment. In short we can say that the programs of rural works should be adequately organised as per needs of regions, institutional arrangement be made for the collective utilisation of surplus labour and appropriate non- market mode of payments be adopted, population control with a view to reduce the rate of increase labour force and to make available more resources for investment has to be practiced on a more comprehensive scale as part of a general movement of employment for growth and growth for employment. TECHNOLOGY AND PROGRESS Technology refers to the body of "Skill, Knowledge and procedures for making and doing useful things." It applies to the knowledge of scientific principles and industrial processes, resources and methods relevant to the production or improvement of goods and services. Economists identify the following three major factors in economic growth. 1. Capital accumulation 2. Population and labour force growth 3. Technological progress. Steady growth can be generated by capital accumulation is a world of growing labour force even if there is no technological progress. This is how growth took place at a slow rate prior to and probably the main factor in economic growth. Technological progress implies that it is possible to raise output level over time from given human resources and equipment. It can take a variety of forms. Forms of technological progress There are three different forms of technological progress, they are i. Neutral Technological progress ii. Labour saving Technological progress and iii. Capital saving Technological progress. 1. Neutral Technological Progress According to Prof Hicks, technological progress is neutral when a country manages to. achieve higher levels of output with the same quantity and combinations of labour and capital. It is the one that increases the marginal productivity of the factors of production in the same proportion. In this case the efficiency of both labour and capital increases at a uniform rate. 2. Labour saving Technological progress Labour saving technological progress is one which obtains the same level of output with reduced quantity of labour as a result of sophistication in capital equipment. It is the one that raises the marginal productivity of capital relativity to the marginal productivity of labour so that the same level of output can be produced with less labour relatively to capital. The use of tractors, harvesters automatic textile looms electronic computers and such other machines. Over the past two hundred years most of the technological progress that took place in western countries is of this category. 3. Capital saving Technological progress Capital saving technological progress is now a wide spread phenomenon. It is found in some labour abundant countries which try to economise the use of capital. It is the one which raises the marginal productivity of labour relatively to the marginal productivity of capital. This enables to produce the same level of output with less capital relatively to labour. In the west where most technological research is carried out the attempt has because to save labour rather than capital.
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To sum up, economic growth may result from a variety of economic factors, but technological progress have been and will continue to be the primary source of economic progress in any society.
ROLE OF TECHNOLOGY IN ECONOMIC DEVELOPMENT Ever since the advent of the industrial revolution in the western countries, technological progress has emerged as the main factor of economic growth. The history of modern technology m the western countries starts with the industrial revolution propelled by new scientific invocations and soon a whole breed of new commodities entered the markets. Once industrial revolution started gaining round it gave encouragement to the discovery of new inventions and technology ensued among the producers with each producer trying to outsell his competitors by presenting more sophisticated and technically more superior goods to the consumers. Inventions and Invocations in one field stimulated inventions and Innovations on other fields as well. This increased productivity manifold and firmly set the western countries on the path economic progress. Innovations and inventions in the western world were both cost reducing and demand increasing. As more and more consumers sough to purchase the new variety of goods, the pressure of demand increased and this encouraged the entrepreneurs to come forward with wove new and improved products. To investigate the role of technology in economic development one can cite the example of Japan in additional to that of western countries. A century ago Japan was highly depended on agriculture. About 75 percent of its population was engaged in agriculture. Many Japanese went overseas to study industrial practice and the government set out to built new industries using foreign equipment and methods. In addition to this the Japanese made serious efforts to absorb, adopt and expand the technology according to their own requirements and also to generate their own technology. As noted by Cairn cross Japan has probably more trained engineers per head than any other country. In Japan there was throughout determination to follow the "do-it-yourself" policy. As a result heavy reliance was placed on educating and training its own population. The rapid economic progress of the western countries and Japan brings out clearly the importance of technology as a factor of promoting rapid economic development. Technology has led to greater output, shorter working hours the creation of a host of skilled jobs in design, maintenance and engineering, safer working conditions production of new and better goods of standardised quality with move efficient use of raw materials, decline of superstition and traditionalism. Technological progress and innovations also bring about a profound change in the socioeconomic environment. The standard of living increase the basis for a fast growing urban and industrial system is laid and boundless opportunities for progress unfold themselves. However side by side environmental pollution increases, anxiety and insecurity rises and old crafts and craftsmanship defines. Man becomes a machine and gradually loses his identity in a fast changing society. Despite of these disadvantages of the underdeveloped countries are putting in their best efforts for the promotion of technologies innovations, because to them technology seems to be the only hope for economic development. The most dreaded negative effect of technological innovations is that they lead to displacement of labour and thus cause unemployment.
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Unit 2
2. MANAGEMENT
MEANING In modern industrial society where economic activities are carried on by gigantic industrial corporations, the functions of management and the role of managers have become extremely important. The function of management is the coordinator of human activity that is "getting things done through others". Management is quite dynamic and inseparable in the life of modem society. Modern industrial revolution has brought about a fundamental change in the industrial organisation. It has brought about separation of the workers from ownership and control and turned him into skilled, semi-skilled and unskilled labour, this has complicated the work of management because in the modern factory hundreds of workers are employed. The employer is interested in maximising he return and the employees are interested in increasing their wages. Management was regarding labour merely as a factor of production. That the labour force consists of human beings and the basis of all economic activity is human welfare was completely lost sight of. Now this attitude has changed. The task of management at today is not to exercise power over the workers but to exercise with the people. Management is universal process in all organised social and economic activities. It is not merely restricted to factory, shop or office. It is an operative force in all complex organisations. Management is necessary for a business firm, government enterprises, education and health services, military organisations trade associated and so on. Experts agree that management is a distinct type of activity primarily responsible to get things done through other people and it is different from all other types of human activities. In the words of Henry Fayol "To manage is to forecast, to plan, to organise to command, to coordinate and to control". It attempts to describe management in terms of what a manager does and not what management is. J. Hundy defines management as "Management is principally a task of planning coordinating, motivating and controlling the efforts of others towards a specific Objective". This definition covers the three major function of management i.e. planning implementing and controlling. It points out management is what management does. Koontz and O'Donell defines management in his book "Principles of management as, " The creation and maintenance of an internal environment in an enterprise where individuals, working together in groups, can performs efficiently and effectively towards the attainment of group goals". According to this definition management is an art of creating favorable performance environment enabling the group to attain stated objective and management is the body of organised knowledge. From the above definitions of management we can say that " Management is a social process involving coordination of human and material resources through the functions of planning, organising, staffing leading and controlling in order to the accomplish stated objectives". MANAGEMENT, ADMINISTRATION AND ORGANISATION Management Policies provide an objective and management provides the action to get things done. It is concerned with the execution of plans and policies laid down by administration. Management directs the active operations within the enterprise and combines the work of the employees with the available capital equipment and materials to produce an acceptable product. Management also markets the product or service according to the board policies established by administration.
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In business firm, management proper is concerned with the execution of plans and policies laid down by administrations management is a low level function which relates to the implementation of the policies and directing operations to attain the objective laid down by administration i.e. doing function.
Administration Administration is concerned with the determination of overall corporate objectives policies and master strategies. It concentrates on the coordination of finance, production and distribution. It determines the corporate organisation climate and structure and it acts as the central controlling authority in the organisation. Administration represents the higher level or top management which centers round the determination or major policies and objectives of business enterprise i.e. thinking function. It is entrusted with task of planning i.e. determination of corporate objective, formulation of plans and policies, coordination of all functional areas of business and overall control and supervision of the entire business. In short administrations is the legislative or planning function and it is concerned with the overall supreme policy framing and decision making authority. Organisation Organisation is a framework or medium to exercise managerial function Organisation is the machine to be used by management to discharge managerial functions to accomplish the set goals. It is the process of dividing work in to convenient tasks or duties, of grouping such duties in the form of posts, of delegating authority to each post and of appointing qualified staff to be responsible that the work is carried out as planned. It is an organic function of putting together the different parts of an enterprise in to working order. DISTINCTION BETWEEN ADMINISTRATION AND MANAGEMENT
1 2 3 4 5
Administration Administration is concerned with policies making, it determines the goals or targets to be achieved. It functions are legislative and largely determinative. It is not concerned with the implementation of the policies. It is not directly concerned with the direction of the human efforts in the execution of the plans or policies. It is the top level management.
Management Management is concerned implementation of the policies.
with
the
It functions are executive and largely governing. Implementation of the policies is the main job of management. It is mainly concerned with direction of the human efforts in the execution of the of plan or policies. It is the middle or lower level of management. Administration is the master of the industries. Management is the servant of administration. Administration coordinates finance, Management uses organisation for the production, distribution. It frames the achievement of the targets fixed by the
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organisational structure. It needs administrative rather than technical ability. The terms administration is used mostly in the government or public sector. Following are designated as Administrators: Collector, Commissioners, Vice-chancellor, Registrar, Minister, Chief justice etc.
administration. Management requires technical ability. Management is mostly used in the business or industrial sector. Following are usually designated as the managers: General manager, Managing director of a company etc.
DISTINCTION BETWEEN MANAGEMENT AND ORGANISATION The terms management and organisation may be differentiated as below.
1 2 3 4 5 6
Management Management is an executive function which is primarily concerned with the getting things done with others. Planning, Organisation, Staffing, Direction, Coordination and control are the function of the management. Management function are executed by bringing into being an organisation. It is like the enter body of a human being.
Organisation Organisation is an organic function of putting together the different parts of an enterprise into working order. Organisation is one of the important function of management.
Organisation is the frame work.
It is like the nervous system of a human body. There are different level of management There is no such level in organisation. i.e. top management, middle management. Management uses the organisation Organisation is the machine of management determined by administration. in its achievement of the ends determined by administration.
PUBLIC ENTERPRISES Meaning Ordinarily the term public enterprise stands for a concern owned and managed by the state or any public authority, it also broadly refers to the nationalised or socialised industries and institutions engaged in productions of goods or supply of services. Thus a public enterprise may be defined as an enterprise which may be i. Owned by the state ii. Managed by the state or iii.Owned and managed by the state. During, the last 45 years we have witnessed increasing and active government participation in industrialisation under the five year plans. We have public enterprises not only .in industrial but also in commercial and financial spheres. Objectives The public enterprises have the following main objectives. 1. To promote rapid economic development by filling critical gaps in the industrial structure. 2. To provide basic infrastructure facilities for the growth of the economy. 3. To accelerate and maximise the rate of capital formation. 4. To have balanced economic development through growth and diversification of economic activity in less developed areas by providing adequate infrastructure.
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5. 6. 7. 8. 9. 10.
To reduce disparities in income and wealth. To avoid concentration of wealth and power in a few hands. To have social control and regulation of long term finance through public financial institutions. To have self reliance in science and technology. To create employment opportunities on an increasing scale. To have social control over sensitive areas i.e. public distribution of essential goods better quality and fair price.
Management of public enterprises There are several form of management of public enterprises. Some of the main forms are discussed below. l. Enterprises Owned and Managed by Government Department. This is the oldest and traditional form of activity run by government. The main purpose is to earn revenues or to maintain a service to society at minimum possible cost. Post and telegraph, broadcasting, railway and defense industries are the leading examples of departmental organisation. Any public enterprises organised a department basis-has to depend completely for finance on the budget appropriations and has to carry financial operations through the treasury only. It is subject -to the same rules and regulations as applied to any other government department with regards to and it, staff, etc. The enterprises is controlled by the departmental head. 2. Government Company Public enterprises can also be incorporated under the Indian companies act arid in such a case they are known as Government Companies. The government company may be owned wholly or 51% or more of the share capital is owned by then central or state governments. Besides one or two shares are held in the name of the officials. This is because to fulfill the legal requirement. All or majority of the directors are nominated by the government. The concerned ministry exercise the ultimate control over the whole working of the company. The government company has all the features of limited company. It is free from budget, audit and accounting laws applicable to other departments. The greatest advantage of this form of management of public enterprise ties in the fact that public enterprises can be run-in a business like fashion and that they are operated, financed and taxed like a private enterprise. The company form of management is usually adopted (i) to take over the existing enterprises in emergency (ii) To start a business with colLabouration of private enterprise (iii) To start any new business and to run it as a public enterprise. 3. Public Corporation The public .corporation is considered to be the best form of management of public enterprise because it is based on the democratic ideals. It enjoys autonomy of administration, management and finance. Public corporation is only a means and a mechanism for public enterprises. It is an artificial person created by a special act of the legislature. H has defined powers and functions which are governed by a special act. It has financial independence and a clear-cut jurisdiction over a specific area, industry or commercial activity. Its capital structure and financial operations are similar to those of a company but its shareholders retain no equity interests, have no voting rights, have no power to appoint directors. It enjoys complete autonomy and is free from parliamentary or political control in the internal and routine management. Management is rested in a chosen body i.e. governing board, representing top men/women of ability skill, business or technical experience and commanding confidence. All executive and management powers are given to a small board responsible for management. The board and its executives are free from political influence and completely responsible for the internal organisation.
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Managers and employees are not a part of civil service. They are selected on merit. They have their own service conditions. Its income and expenditure are not shown in government budget. Its entire or substantial capital is subscribed by the government. It submits its annual report and annual accounts to the parliament every year. Unlike ordinary business corporation a public, corporation is formed primarily for offering public service and promoting public welfare. Profit maximisation is not a criterion of its efficiency or of guide to its policy In short it is not expected to seek profit at the cost of public service or social good.
4. Management through Private Agency Under this form of organisation enterprise is owned by the government, but its management is entrusted in the hands of some private agencies. Such a form of public enterprise is suitable for developing economics of under-developed countries. Such a form of management may be adopted in countries where the state has no experience of running industrial enterprises. Hindustan steel company pvt. ltd., Rourkela is the illuminating example. Although it is owned by the government of India, yet its management vests in the hands of German firm M/s Krupp Demag. There are certain weaknesses of this form of management of public enterprises. 1. The private agency continues to dominate because it knows the weak points of the government. 2. Due to complete dependence on a private agency for purpose of management the government is some times put in a very awkward position with no option to adopt any alternative means. 3. It is difficult for the government to assess whether the private agency is functioning efficiently and economically. 4. Although there may be a change in the government's economic and industrial policy, yet it may be difficult to interfere in the day to day working of the private agency. Problems of Public Enterprises. The working of the public enterprise in India has not been satisfactory. A numbers of committees and commissions have been appointed in the past to study the administrative and managerial problems of public enterprises. Some of the significant administrative and managerial problems of the public enterprises are as follows: 1. Organisation Heavy reliance has been placed on the private limited form of organisation in a establishing public enterprise in our country. This form of organisation has been severely criticised because it has no adequate parliamentary control and also because there was no satisfactory way of securing information about the working of such companies. The estimate committee (1960) recommended that as a rule public enterprises should be organised as statutory corporation and the company form should be adopted only in very special cases. 2. Management It was pointed out that the board of directors appointed to the various public enterprises, did not fulfill any useful role because they where nominated by government mostly from government officials of the various ministries, their powers being limited and they would meet after long intervals. The krishna menon committee suggested that the directors should be drawn from ranks of the company and should consist of financial talent, administrative talent, technical skill representative of labour and personnel management. The board should work as a team under the leadership of the chairman. 3. Autonomy In India the public enterprises are treated as departments and offices of the government. This greatly affects their productive activity as they are subject to all the usual red tape and procedural delays common to a government department. The public 'enterprises must be run on business
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principles. They should be given a free hand within the frame work of that policy to produce best results.
4. Internal administration A great drawback of our public enterprises lies in the lack of trained personnel to manage them.. The administrative service is not a satisfactory source of recruitment. At present the managing directors are mostly senior officers of the administrative departments of the government. They find themselves unable to adopt usual business methods. The public undertakings require high technical knowledge and experience. 5. Parliamentary Control Parliament has a greater duty in respect of corporate enterprises than in the case of departmental units, for they involve huge public funds. Naturally the principle of accountability of publicly owned autonomous undertakings to parliament and through it to the public is no matter of controversy. 6. Delay in Planning and Implementation One of the main cause of high cost of production is the long time spent in the planning and implementation of these projects. There has been no relationship between inputs and outputs with the results. Expenditures are incurred without corresponding returns. Due to delay in planning and implementation the cost amounts up, the capital investment remains blocked up for an unduly long period and goods and services do not flow from the plants in time. 7. Pricing Policy There is always a controversy as to whether the public enterprise industries are primarily service organisation or they should make profit just as any other business. Those, who claim that the public enterprises are to serve the community, not make profit. Public enterprises are not merely service organisation working on no profit no loss basis. Profitability may not be the major and only goal. An enterprise must have appropriate pricing policy to ensure normal goal. An enterprise must nave appropriate pricing policy to ensure normal profit on large scale investment. 8. Under Utilisation of Installed Capacity In most of the public enterprises the installed production capacity is not fully utilised. Due to this a problem of over capitalisation is created. As the production capacity is not fully utilised the production expenditure is increasing continuously and the enterprises are running in losses. 9. Inadequate manpower planning Inadequate planning of manpower for same enterprises have created problems. These enterprises had to carry a much large strength of manpower than what the operations or economies would justify. The surplus manpower not only increases the wage bill but also reduces the yardstick for work and creates complications for the management. Therefore detailed manpower planning from the construction stages right up to the operation stage is therefore necessary. 10. More Expensive In public sector enterprises there is too much expenditure on advertisement, donations to political parties, foreign tours of the ministers and managing directors and top most officers. The public enterprises have constructed their own rest houses for management and decorations of such rest houses, the expenditure is increasing. A country like india, this type of expenditure is not necessary. FUNCTIONS OF MANAGEMENT
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"Management is what management does" - points out the functional approach of management and indicates the importance of distinctive managerial functions which together can give us managerial process. Functions of management are also called elements of management. Braadley speaking a manager is called upon to perform the following managerial functions. i] Planning ii] Organising iii] Staffing iv] Directing v] Motivating vi] Controlling vii] Coordinating and viii] Communicating. The sequence of manager's functions begins with all planning. However a manager performs all six functions simultaneously or several times during the working day.
1] Planning The most basis managerial function is planning i.e. preparing for future, it is essential for survival, growth and healthy mode of business operations. A manager must know, how to plan and how to motivate subordinates to follow his plan. A plan involves a commitment to a particular course of action to achieve specific results. In the first place the work of manager begins with establishment of objective of the organisation and goals in each area. This is done through planning taking purposeful action regarding the company's major assets i.e. its future, he plans in advance the future course of action on the basis of facts and figures. A plan is a forecast for accomplishment it is a predetermined course of action. It is today's projection for tomorrow's activity. Once the plan is formulated, he has to indicate the objectives of the plan and steps to be taken by his subordinates. By communicating the manager makes the object effective. In practice planning function is often all prevailing. It is involved in organising directly and motivating. Budget is the part of planning as well as instrument of control. In short planning is the job of making things happen that would not otherwise occur. The sequence of manager's functions begins with all planning. However a manager performs all six functions simultaneously or several times during the working day. 2] Organising Managing a business is not planing. Organising includes breathing life in to plan by bringing together people materials and machine in proper relationship and an of this must done on schedule that is according time table, the organising includes both planing and organising. Organisation is a tool or mechanism enabling people to work together effectively and realise the plan. It deals with physical equipment and facilities for best work performance that is organisation of think. It also deals with staffing that is selection .training, promotion and development of people working in the organisation, it is an important device to exercise alt managerial function organisation people, materials and machines are brought together for joint venture. Organising provides a framework of management for purposive, integrated and cooperative action by many people in joint efforts to implement any plan organising provides an effective machine for achieving the plan or objectives. 3] Staffing Staffing involves filling the position needed in the organisation structure by appointing competent and qualified person for the jobs. This needs manpower planing and manpower management. We have scientific section and training of personnel. We have provide suitable methods remuneration and performance appraisal. The top management is ultimately responsible for all activities relating to staffing.
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4] Directing In a border sense directing is providing all guidance and inspiration to people at work in order to carry out their assigned duties and responsibilities. Directing phase of management is the heart of management in actions directing, means telling people what to do and seeing that they do it to the best of theirs ability. Directing assures the performance of the allotted work by individual employees, if includes assignment of job, explaining procedure offering instruction on the job issuing order and directives and seeing the errors are rectified in time. Directing includes motivation, leadership as well as supervision. Success of management is largely a matter of effective direction and leadership for 1] Telling them what is to be accomplished. 2] Getting completing people. 3] explaining them how to do what you want to be done. 4] Giving them authority and 5] Guiding, instructing and inspiring them with confidence in their ability to achieve the company's goals. Directing deals exclusively with people, it must be centered around people. Directing is performed at all levels of management: direction increase production as we issue orders that make sense, it decreases production when these order are non-sense. Direction as managerial function convert managerial decisions, plans and policies in to effective and meaningful actions. 5] Motivating Management is getting thinks done through and with other people management is concerned with two primary element, that is think and man and women, he or she is a self activated person. By nature a person is self activated or motivated, if not the person is dead. The force of motivation lies with in our mind it is dynamic force setting a person in to motion or action. A person is motivated by intrinsic incentives, motivation is the key to successful management it is also the key to productivity of resources. At any level of management, manager's primary job is to handle people and not production Motivation is a managerial functions to inspire, encourages and impel people to take required action, the skill of motivating the people is the life blood of an organisation. 6] Controlling Control is the process of measuring actual results or present performance, comparing those results to plans or some standard of performance, finding out the reason for deviations of actual from desired result and taking corrective action when necessary. Manager must prepare a budget and live within the set budget. Budget is not only a plan but also a means of control. Reporting is another means of control, the subordinates must report about their performance to their boss. Manager is accountable for quality and quantity and the manager has to maintain them. He must meet the dead line this he does by setting standards, measuring and comparing. Control means checking that plans have been carried out and manager has to attend if there are any deviation which can be corrected or rectified in time control ensures qualitative and quantitative performance of the work in organisation for executing plans and plans without control means no achievements. Budget is a valuable control device. In short under controlling performance slanders are established work in progress is measured results are interpreted and corrective actions are taken in time. Effective control ensures cost reduction and maximum efficiency. 7] Coordination Coordination is the essence of the management it is also an integral part of direction, it means integrating various part of the work. it synchronizes individual action out of difference of opinion and reaching group goals by securing harmony between individuals and group goals. It is an orderly arrangement of group efforts to provide unity of action. Coordination ensures that all group and person, work efficiently economically in harmony toward as well as effective coordination.
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Coordination is a large organisation because there are multiple levels of management and large scale use of specialists. A manager must coordinate the work for which he lalaucing, timing and integrating the work Board of directed tors, heads of divisions or departments are the usual agencies Coordination requires effective channels of communication per communication is most effective for coordination.
DELEGATION AND DECENTRAILSATION Delegation There is a limit of the number of subordinates a manager can effectively supervise and control and for whom he makes decisions. Once this limit is crossed delegation of managerial authority is inevitable. Delegation means assigning work to others and giving them authority to do it. Delegation occurs when responsibilities of one individual becomes so great that he has to get help from others to get his job done. Delegation is sharing know how responsibility, authority budget materials and equipment to the degree necessary to do the work. To delegate means to grant or confer the authority from superior to subordinate to accomplish a particular assignment. Through delegation a manager multiplies himself and gets results through others. A human being has limited time and energy for his activities. He can give proper attention only to a certain number of persons at a time. Therefore as business grows we need delegation of authority. Delegation is the key to management. It is the only way to get work done effectively. When a job becomes too big for one person to do it himself. Through dividing his load of work and sharing his responsibilities with subordinates. Elements or Features of Delegation In the process of delegation three actions are involved. These actions are known as element of delegation. 1. Assignment of Responsibility A manager assigns a certain function, work or duty to his subordinate for performance. Responsibility is created rather than delegated. 2. Grant of Authority Grants authority i.e. rights and powers to be exercised by the power to order or command and is' duly delegated or the superior to subordinate in order to enable him to discharge for the assigned work. The superior may transfer certain rights the right to spend money, to use materials etc. The superior should delegate sufficient authority to do the assigned work. 3. Creation of Accountability Accountability is derived form authority, once a subordinate is entrusted With responsibility to perform certain job and he is given sufficient authority to perform the assigned work, the final step in delegation is holding the subordinate answerable or accountable to his superior for fulfilling the assigned responsibility. Authority flows downwards where as accountability flows upwards through chain of command. Each manager from the bottom is held accountable to his superior. Advantage of Delegation Following are some of the important advantages of delegation
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1. Natural limitations of human beings are solved by dividing the work load sharing the responsibilities with others. 2. Specialised services on account of delegation are secured to an organisation which is more complex in character. 3. Delegation helps management to run branches or units situated away from the head office. 4. The technique of delegation assists managerial development which gives the subordinates a chance to take independent decision on vital matters. This qualifies them for promotion.
DECENTRALISATION When the organisation is large and complex, management cannot centrally control all information necessary for decisions. The practical solution is to divide the organisation in to semiautonomous decision making units. Thus we have a decentralised organisation with wide spread decision making power. Decentralisation is closely related to delegation. Decentralisation refers to the systematic efforts to delegate to the lowest levels all authority except that which can only be exercised at the central point. Delegation refers primarily transfer of authority from one individual to another. Decentralisation applies to the systematic delegation of authority to all units in an organisation. Factors Determining Decentralisation: The following factors govern the amount of decentralisation. 1. Costliness of decision : For crucial and strategic decision involving higher cost of musket (due to greater risk and uncertain) no decentralisation is feasible. Top management must reserve decision and actions which may have long term consequences for the enterprise as they are strategic importance. 2. Need for Uniformity of Policy: Only centralised authority can ensure uniformity of policies for all departments or for alt customers e.g. regarding quality, service credit price etc. This will ensure easier comparison of relative efficiency of department and keep down cost. 3. Size
Right kind of decentralisation is inentable in a large enterprise with numerous managers having a long chain of command and also many managers at each level of management. This will ensure horizontal agreement and vertical clearance. 4. Capable Managers Decentralisation demands many managers. Hence efficient training for management development is necessary to provide many managers under decentralisation.
5. Control Techniques Management will be willing to delegate authority to subordinate if control techniques are good. Under decentralisation we must have effective control over all subordinates. 6. Dynamic Conditions In conditions of uncertainly or when technology and markets are in a constant state of change the need for decentralisation is quite clear. In a static organisation centralisation will work. When an organisation establishes sub units called division. When each division is regarded as a separate profit centre and enjoys considerable autonomy with regard to responsibility and authority is considered to be decentralised. When an organisation is large and complex and when we have competent managers, higher decentralisation is always preferable. Similarly in a divisionalised structure we have grater decentralisation. Similarly with a fast and effective communication system
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e.g. computerised management information system we may have decentralisation tendencies. When we have wide span of control and few levels of management, organisations are decentralised. Extreme centralisation or decentralisation is a cures. The golden mean is balance between centralisation and decentralisation i.e. centralised coordination and decentralised administration. The following figure will explain the interrelation between decentralisation and span of control and organisation structure. Each firm has the same number of employees but different span of control and different degree of delegation and decentralisation.
Advantage of Decentralisation: The advantages of decentralisation are as follows: 1. Reduction in burden of Chief Executive. In centralisation the Chief Executive alone has to bear the entire burden of decision making. This diminishes the time at his disposal to concentrate on important managerial functions. Decentralisation reduces his burden as he delegates a part of his authority to subordinates and this enables him to devote more time on important function. 2. Diversification of Activities. With addition of new activities of new activities or product lines an organisation tends to grow complex and may pose a challenge to the top executives. The challenges can be met effectively by decentralising the authority. 3. Quick decisions. . Decentralisation avoids red tapism in making decisions as it places responsibility for decision making as near as possible to the place where action takes place.
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4. Development of Managerial personnel. When authority is decentralised, the subordinates get opportunity of taking initiative to develop their talents and to enable themselves to develop qualities for managerial positions. They learn how to decide and depend on their own judgment and how to manage. 5. Improvement of Motivation. Decentralisation promotes the improvement of morale and motivation of subordinates which is reflected in better work performance. Which is reflected in better work performance. Which greater opportunities of communication and leadership the local executives can faster team spirit and group cohesion among the subordinates. 6. Effective Control and Supervision. The greater the degree of decentralisation, the move affective becomes the span of control. It leads to becomes the span of control. It leads to effective supervision as the managers at the tower levels have complete authority to make changes in work assignment, to- change production schedule, to recommend promotions and take disciplinary actions. 7. Other Advantages. In addition to the above advantages, decentralisation also achieves several internal and external economics. This includes speedier communication, better utilisation of lower level and middle level executives, greater incentive to work and greater opportunities for training, this makes possible for management to reduce the cost of production and meet competition effectively. Limitations or disadvantages of Decentralisation: Following are the limitations of decentralisation 1. Decentralisation may bring about inconsistencies in the organisation. For example uniform procedures may not be followed for the same type of work in various divisions. 2. Decentralisation increases the administrative expenses because it requires the employment of trained personnel to accept authority. The services of such highly paid personnel may not be fully utilised in small, organisation. 3. Decentralisation requires the product lines of the concern to be broad enough to allow creation of autonomous units which is not possible in small units. 4. Decentralisation may create problems in coordination among the various units. 5. Decentralisation may not be possible because of external facts. If a company is subject to a large number of uncertainties it will not be able to meet these under decentralisation of authority. COMMUNICATION FUNCTIONS IN DECISION MAKING: Communication means interchange of thought or information. It may mean the act or process of communicating. In management system the word communication has distinct meanings 1. It stresses the dissemination (spreading over) of information. It is usually called formal communication e.g. issue of a circular to shareholders. 2. The other meaning of communication is interpersonal communication or interchange of meanings among people. It also expresses the motives and feelings sometimes conflicting with the expressed oral message. In formal communication we have the transmission of intended meanings to others where as in interpersonal communication we have transfer of information and understanding from person to person. Usually we have two persons at least in interpersonal communication. The sender of a message and the receiver of the message. The communication act is completed by the receiver. Sender wants to his receiver to understand what was sent i.e. the message. For effective communication determine and mention the purpose of communication. Prepare a plan of presentation
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on the basis of information to be transmitted, avoid unnecessary words and use words known-and familiar to the receiver. Encourage feedback information and clear understanding of the message.
COMMUNICATION CHANNEL: We can have communication through the following channels. 1. Face to Face: For interview, meetings, conferences, seminars. 2. Oral : Telephone, radio, inter communicating system. 3. Written : Letters, books, periodicals, circular, manuals, news papers, advertisements schemes etc. 4. Actions : Smile, frown, red face, coming early, staying late in the office etc.
Correct timing, the wording and manner of communication, and the use of language all play a vital role in communication. Managers behavior and actions must carry the same message as his words. Action speak louder than words. Decision making is the core of management process. The relationship of communication and decision making is inspirable since decisioning must relay on information. The manager is a decision maker. But all decision are now based on communication of information to the management. Again we need effective communication for passing on decision to those involved in executing them. Communication enables a group to think together. In fact, without communication, there could be no organisation. Management is getting things done through others. Hence all management acts must pass through the bottleneck of communication, managerial ideas, plans, decisions, are put into effect through communication. Communication helps the administration in arriving at vital decisions. In its absences it may not be possible for the top administrators to come in closer contact with each other an discuss the important problems pertaining to the organisation. Effective communication is the sine-qua-non for the quick and systematic implementation of the management decisions. Communication is the basis of direction and leadership. It lubricates the entire organisation and keeps the personnel working in accordance with the desires of the top administration.
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3. OFFICE MANAGEMENT AND PERSONEL MANAGEMENT

A. OFFICE MANAGEMENT Management is a district process consisting of planning, organising, and actuating and controlling, utilising in each both science and art and followed in order to accomplish predetermined objectives. Office management can be defined as, "the organisation of an office in order to achieve a specified purpose and to make best use of the personnel, by using the most appropriate machines and equipments, the best possible methods of work and by providing the most suitable environment." From the above definition of office management it is clear that office management is concerned with organising the office in such a manner that the purpose of the office is achieved and best use is made of personnel i.e. the staff. The work should be done by best possible methods in congenial environments. B. FUNCTIONS The five fundamental functions of management i.e. planning, organising, staffing, directing and controlling apply universally to office management The five fundamentals functions of office management are as follows:[1] Planning Planning means to lay out a course of action. The fundamental function of planning is office management includes the methods and technique of looking ahead and selecting the best course from alternative courses to achieve the predetermined objective. Planning means to determine what, when, by where and how much things be done? Planning requires visualisation of future. [2] Organising Organising means to distribute the work among the members of the work group, establish proper work relationship among them and create proper work environment. The office manager selects personnel for each structural unit, delegates appropriates authority and hold them responsible for the satisfactory completion of their respective tasks. [3] Staffing Staffing means defining staff requirements for the office. It includes selecting, appraising, candidates for positions, compensating and training or otherwise developing employees to accomplish their task effectively. [4] Directing Directing involves guiding and leading the employees. The office manager should indicate in his subordinates an appreciation of the traditions, objectives and policies of the enterprise. He should encourage his subordinates to work with zeal and confidence. He should have good knowledge of human behaviour. [5] Controlling Controlling means to see that work progresses satisfactorily and keeps up with what is expected. The progress must be in accordance with the planning. Control means checking that plans have been carried out and manager has to attend there are any deviations. In short under controlling
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performance standards are established work in progress is measured, results, are interpreted and corrective actions are taken in time.
LOCATION The office has to be housed somewhere, it needs a building. The building should be capable of providing sufficient place for work. So that the flow of work is smooth and office activities can be performed with efficiency, it must have proper lighting, ventilation and test fully well furnished so as provide beautiful work environment. Good office accommodation Is important both from the point of view of employees and outsiders dealing with the organisation where should the office be located will depend on the nature and type of business of the enterprise. Most offices are located at one of the following places. i] In the factory building. ii] In the separate building near the factory building. iii] In the separate building, away from the factory. Factors of Location of Office The following factors should be given careful consideration while, selecting location of the office building. 1] Nearness to Customers The office should be near to those parties with whom the enterprise has almost daily contacts. For examples most of the publishers of Delhi have their offices in Dariyaganj because that place has become a specialised renter for publishing work, many ancillary services connected with publishing are available there. [2] Transportation Office should be located at a place where not only the employees but outside representatives, delivery and messenger men and visitors can easily come and go. Places well connected by buses or local trains are preferred for locating office. [3] Postal and Banking Facilities Convenient accessibility to post and telegraph office contribute, materially to the operating efficiency of the office, needless to say that without a bank in the proximity it become difficult to carry on business. [4] Availability of Civil Amenities Office should be located at a place where civil amenities like water, electricity, parking space, hotels, canteens are available. [5] Lighting and Ventilation Natural lighting is very important for office. Any area that provides sufficient lighting is preferred. An office should be well ventilated. Natural day light and sufficient ventilation can not be obtained in a congested area. [6] Free from Dirt and Noise Presence of dirt and smoke can be very annoying street noises are quite disturbing and can interfere with efforts of mental concentration office should be located at a place which is free from dirt, noise, smoke, soot, and foul smell.
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[7] Availability of Sufficient Space The place selected for locating office should have sufficient accommodation not only for the present needs but for future expansion only. [8] The Cost Involved The cost of office space is very important cost is generally measured in terms of rupees per square meter per month. Accommodation in prestigious areas and reputed buildings is generally more costly. It is not advisable to have the office in costly areas when it is not absolutely necessary. LAYOUT Layout or office space planning is the arrangement of all physical components within the available floor space to provide maximum effectiveness and the coordination of these components into an efficient and attractive unity. Office layout refers to the arrangement and placing of men materials machines, furnitures and equipments within each section or department of the office in such a way that the utilisation of space is done in the best possible manner. Layout is concerned with determining the correct amount of space for each employee along with machinery, furniture and equipment they use and the correct arrangement of furniture, equipment and machines and also providing best possible environment. Advantages of Layout Planned office layout ensures maximum utilisation of available space which increases efficiency and facilitates smooth flow of work. Following are the advantages of proper layout I 1. It helps in efficient performance of work which leads to economy. I 2. Floor space can be more properly utilised. 3. Employees have not to unnecessarily move from place to place for the performance of their work. 4. It facilities effective supervision. 5. Office equipment and machinery can be used more properly. 6. Inter communication is speeded up. 7. It provides comfortable working place to employees. 8. It leads to smooth flow of work without any interruption. 9. For doing work of confidential nature can be made in separate rooms which helps in the maintenance of see racy. Principles of Office layout Following principles should be born in mind while planning for office layout. 1. The available space should be fully utilised. 2. Adequate space for staff and equipment should be provided. 3. All departments should be placed near each other. General conveniences like cloak room, toilets, water coolers should also be centrally located. 4. A through study should be made of office systems and routines so that there may be a smooth flow of work . 5. Any plan of office layout should allow free movement of the office personnel. 6. There should be minimum movement of clerks should not be required to move from place to place for performance of their duties. 7. A good office layout plan should enable supervision at minimum cost a large open office can facilitate this to a extent. 8. Equipments and machinery producing noise should be kept away from clerks or should be located quite away from main office.
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9. While laying out office plan it is essential that arrangement for good lighting and ventilation should be made. 10. Provision for private offices or separate rooms have to be made to some important officers. 11. The office layout plan should be flexible and provide for future expansion of some departments without disturbing other departments.
FILLING Papers are the memory of the office. A large number of papers relating to different transactions, plans, decisions, obligating and other matters have to be kept in every office, it is necessary that these papers should be placed and stored in such a manner that they can be easily located when required. According papers in a systematic manner, so that these can be quickly and conveniently located is known as filing. George Terry defines filing as, ''Filing is the placing of papers in acceptable containers according to some predetermined arrangement so that any proper can be located quickly and conveniently when required." Advantages of Filling Following are the main advantage of maintaining a good filing system in the office. 1] Convenience of ready reference Letters and documents relating to a subjects can be found at one place in the relevant file. It is easier to link up information and know the previous history of the cash. 2] Safety of records Under filing system, records remain protected against insects weather and mishandling. 3] Documentary proof Old records can be produced as an evidence in legal suits in case of dispute. 4] Prompt handling of mail If records are kept in a systematic manner it becomes easy to link them up. This facilitates quick decision in the matter. 5] Helps in policy formation Past records help in framing future policies. They serve as the basis of future action. 6] Follow up action For perusal of matters follows up action B essential for securing orders from old and new customers report has to be remained with them for which there is the need of records. CLASSIFICATION OR METHODS OF FILING Grouping of documents, papers or records on some common-basis is called classification of files. There are five broad methods of classification records. They are 1. Alphabetically 2. Numerically 3. Geographically 4. Chronologically 5. Subject wise
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1. Alphabetically Every file has a name or a title under this methods files are arranged in according with the first letter of the subject or the correspondent for example, the files of those customers whose name or surname begins with Alphabet "A" will be arranged separately and those whose names begin with other alphabets separately. For classification different shelves of racks are allotted to different alphabets. 2. Numerically Under this system each file or the folder is given a code number and the flies are placed strictly in that serial order. Sometimes a subject is given one number and different files of that subject are given a sub number in the form of decimal number for example the digit 25 may stand for corporation finance. If there is more than one file of any correspondent the number can be allotted in decimals like 25.1, 25.2, 25.3, 25.4, 25.5 3. Geographically Under this system the files are arranged on the basis of geographical region or area. For example files relating to Andhra Pradesh, Bihar, Gujarat, Maharashtra will be arranged in that order and if desired files relating to different districts of these states can be arranged separately. 4. Chronologically Under this system of filing files relating to different years or periods are arranged date wish. This method is generally used in combination with other methods. For examples files for loans granted to different persons may be arranged firstly in chronological order and then alphabetical order. It is useful when time element is impotent as in the case of outstanding dues. 5. Subject wise This has been found to be the best method of filing. Under this method files are arranged on the basis of subject, i.e. accounts, budget, advertisements etc. are kept separately. The files of different subjects can further be arranged in alphabetical order. This type of classification proves better where the subject is more important than the name of the correspondent. RECORD KEEPING As a human body stores all information in the brain, similarly all the information relating to an organisation remains stored in record. Since a large part of office work is concerned with maintenance and preservation of records it becomes necessary for the office manager to know the latest techniques and methods of records keeping. Records mean written papers documents, statement, invoices, vouchers, correspondence, book -of accounts minutes etc. concerning of an organisation. Principles of Record keeping Which record should be kept and how they should be kept will depend on the needs of the enterprises, cost involved in keeping records and the nature of records. Following are the fundamental principle of record keeping 1. Purpose should be justifiable Only those records should be kept which will be needed for some purpose in future. 2. Must be verifiable The records should not be just hearsay evidence. There must be proof in support of records.
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3. Required information should be available when required The records should be kept in such a manner that the required information is reading available. 4. Cost of keeping must be reasonable The cost of collection and maintenance of records should not be ignored. The cost of keeping records should not outweigh the benefits to be derived from them. 5. Must be properly classified Records should be kept in such a manner if they have been classified on some basis like the subjects or geographical are etc. If they are kept in chronological order it will becomes impossible to find the wanted information from them. 6. Should be kept safe The records should be kept in such a manner that they remain safe from weather insects theft and misplacement. 7. Should not be kept for longer period Keeping records after a period when they will never be required is waste of 'space efforts and money. On the basis of period the record the records should be classified as i] permanent records ii] Records required to be kept for specific period iii] routine records. OFFICE SYSTEMS AND PROCEDURES SYSTEM Office work is composed of many system procedures and methods. For carrying out the functions of office, detailed procedure of doing different activities is generally laid down beforehand. For example when ever vacancies are to be filled in a definite system has to be followed i.e. applications are invited, then scrutinised interview letters are issued, personal interview is taken and finally appointment letter are issued. Thus system and procedures are concerned with how where and when various operation will be performed. Definition of system According to Littlefield and Rachel " A system may be regarded as a planned approach of activities necessary to attain desired objectives." According to Nuener and Keding, The term system refers to a complete picture of personnel forms records machines and equipment involved in completing a major phase of office work. Procedure The predetermined activities required to be done whenever any office work is to be performed is called procedure. For example when the application of student seeking admission in an Engineering college have to be sorted out the applications will have to be arranged on the basis of percentage of marks obtained by students in PCM. This is called the procedure of selecting students for admission. Definition of Procedure According to Lefingwell and Robinson," an office procedure may be defined as," a series of steps in the performance of the office work, each step in the series being performed in the same order and in the same way every time." According to Neuter and keeping, "a procedure is a planned sequence of operations for handling recurring business transactions uniformly and consistently." In short procedure are related clerical steps usually performed by more than one person which constitute an established and accepted way of carrying on an entire major phase of office activity.
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ADVANTAGES OF SYSTEM AND PROCEDURES Following are some of the main advantages of adopting systems and procedures 1] Helps in smooth running of office If system and procedures are in use every employee knows what is to be clone and how is be done. It reduces delays and bottlenecks in work. If simplifies execution. Carrying of usual and frequent task is taken care of by systems and procedures. 2] Leads to standardisation of work System and procedures give uniformity to action and formalise work. They encourage use of well designed forms, work habits and controls. It facilitates checking and eliminate waste. 3] Scope for improvement Through constant analysis of systems and procedures improvement in performance can constantly be made. 4] Problems areas can be isolated and identified Study of systems and procedures of an office makes it possible to spot problem areas quickly and accurately. 5] Fixing Responsibility It becomes easy to fix responsibility for unsatisfactory performance. Guilty ones can be singled out. 6] Prevention of Fraud Since systems and procedures are based on principles of internal cheek, they assist in the prevention of fraud. 7] Training of staff is simplified Because of clearly laid down principles it becomes easier to train staff. Even new comers can be trained to do the work after little training. 8] Improves the services of the office System and procedures help in getting the work done in time and in acceptable form. This helps in elimination of waste and errors and ensure smooth flow of work. 9] Overall coordination System and procedure help in harmonious functioning of different, departments and effect overall coordination in the enterprise. PRINCIPLES OF OFFICE SYSTEM While planning the office system and procedures certain general principles have to be followed. 1. There should be smooth flow of work without any bottlenecks. 2. There should be no duplication of work. 3. There should be minimum paper work. 4. The movement of the staff to do the job should be minimum. 5. The work should be suitable divided so that the best use of specialisation can be made. 6. The system and procedures once laid down should be strictly followed. 7. Unnecessary checking or counter checking should be avoided.
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8. The best use of machines should be made. 9. The system and procedures should be so simple that the works should be liable to understand the completed system.
PERSONAL MANAGEMENT Meaning For doing the office work there is a ne6d of staff which may consist of peons, daftaries, clerks, typists, supervisors accountants etc. and at the top there may be office manager. There must be a proper recruitment they must be properly trained. Personal management is that field of management which has to do with the planning, or organising, co-coordinating and controlling various operative activities of procuring, developing, maintaining and utilising a labour force in order that the objectives and interests for which a company is established are attained as effectively and economically as possible. Personal management has been defined by various experts as follows; 1. Dale Yoder defines personal management as ,' Personal management is that phase of management which deals with the effective control and use of manpower as distinguished from other sources of power. 2. Indian Institute of personal management defines as," Personal management is that part of management function; which is primarily concerned with human relationship in an organisation, its objective is the maintenance of those relationships which enable all those engaged in the undertaking to make their maximum contribution to the effective working of the undertaking." From the above definitions personal management involves the following, 1. It is management of human resources. 2. It is concerned with effective utilisation of human resources. 3. It is a staff activity requiring special knowledge and skills in human psychology. 4. It is concerned with the achievement of common goals. Functions Of Personal Manager The functions of personal manager are very wide. Broadly speaking the functions can be divided in to two parts, 1] Managerial Functions and 2] Operative functions. {A} Managerial Functions The basic managerial functions are i] Planning ii] Organising iii] Directing and iv] Controlling 1] Planning Planning is the main function of personal management. It is concerned with man power planning studying labour turnover rate, forecasting, the future requirements of personnel and planning for selection and training programs etc. 2] Organising Organising involves the establishment of inter relationship within organisation. It refers to grouping of personnel activities, assignment of duties to different workers delegation and coordination of authority.
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3] Directing Directing involves guiding and supervising the personnel. It includes issuing instructions to the workers, developing communication network. Personal manager has to guide his men towards improved performances. He has to motivate them to work with zeal and confidence. 4] Controlling Control involves comparing performance of employee with the plan and taking corrective action if required. It provides basic data for establishing standards, market job analysis and performance appraisal etc. All these techniques assist in effective control of qualities, time and efforts of workers. {B} Operative Functions These are routine or serve functions of personnel management. They are as under, 1] Procurement Procurement or selection is the most important function of personal management. It is concerned with hiring of personnel i.e. recruiting the right people in the right place at right time. It deals specification of manpower requirements and training etc. 2] Development After selection of personnel, they have to be trained before going to work. Development has to do with the increase of skill through training various techniques are used to train the workers. 3] Compensation Compensation means determination of adequate and equitable remuneration of personnel. It deals with methods and standards of remuneration, wages system and salary administration and job evaluation. 4] Integration Integration means to create the harmonious relations between management and labour negotiations with staff unions collective bargaining, consultation settlement of disputes is the part of integration process. It is the duty of personnel manager to make harmonious relation with the help of sufficient communication system and co-partnership. 5] Record keeping Record keeping is also an important function of personnel manager. A personnel manager collects and maintains information, maintains records and statistics regarding employees seniority, progress, reports, absenteeism, turnover and other details. All these assists the management in decision making such as promotion. 6] Maintenance It means maintaining good working conditions and high morale i.e. health, safety and welfare measures and favorable altitude towards the organisation. This includes, canteen, recreational facilities, medical benefits etc. RECRUITMENT Recruitment is the process of searching for prospective employees and stimulating them to apply for jobs organisation, it is a process of finding future employees. The term recruitment applies to the process of attracting potential employees to the company. Recruitment refers to the attempt of
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getting interested applicants and providing a pool of prospective employees so that a right person is to be selected to a right job.
Sources of Recruitment The sources of recruitment can be divided in to two categories i.e. internal and external: A] Internal Sources One of the important internal source of recruitment is promotion from within." It is the best method of recruitment of high strata and medium strata managers. Filling vacancies from within are also positive morale builders. One vacancy filled within results in up grading several employees. B] External sources The external sources of recruitment are former employees, friends and relatives of present employees, through intermediaries, technical institutions and school, through advertising employment exchanges, contract with other concern, casual application, recruitment through trade unions, applications pre-applied and not direct recruitment. Recruitment of personnel depends on the size of the concern, nature of work and qualifications and efficiency of labour required. Recruitment at gates could be useful for inefficient labour requirement or the present workers relatives and friends. While for efficient and technical qualified personnel advertisement, educational institute or employment exchanges could be better. SELECTION Selection is the second step in the process of procurement of personnel. It is the process of choosing the individuals who possess the necessary skill, abilities and personality. In other words, it is a problem of matching a man to the job. Selection procedure Selection procedure in any business concern is a matter of choice. In some concerns it may be very simple while in some concerns it may be quite complicated however a proper and through selection policy must be followed. The selection procedure involves a series of personal studies to discover the qualifications and characteristics of an applicant for the job. The candidate is subject to a series of serving tests and if he is successful he may be finally selected and appointed by the organisation. The following are the important steps which must be passed satisfactory by an applicant to be selected. 1] Inviting Applications First step in the selection process is inviting applications from prospective candidates. The main purpose of application is to obtain information in the applicants own handwriting regarding his suitability for employment. Application form should be as simple as possible. 2] Reception of Applicants At the fixed date of selection, the applicants are required to present themselves in the office of the company. There they should be given proper reception. 3] Preliminary Interview Preliminary interview is usually quite short and is taken to eliminate obviously unfit or unqualified applicants. This is the first screening test for undesirable candidates. This may not be required if vacancies are advertised.
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4] Application Blank The candidates who go through the preliminary interview with success. are given printed standardized application forms. These forms can give more factual information about the applicant. A photograph may be required to be pasted on the letter of application. The applicant is asked to attach character certificate and other testimonials. 5] Checking References This provides experience of others about the applicant. References may be made to the previous employer or to the college authorities or the references mentioned for securing information relating to character. References may be made also to secure credit report about the reputation or honesty of the applicant. The present employer may be contacted to secure necessary information. 6] Selection Test Industrial psychologists have introduced a number of psychologists tests, such as intelligent test, aptitude test, achievement test etc. Use of these tests in selection is now well established in practice. 7] Final Interview After going through tests, the successful candidates are interviewed. Interview constitutes a very important step in the decision making process in the selection of the staff. It is the most favored technique of the personnel department in fitting the workers to the job. A carefully planned or "Patterned interview" should be conducted. 8] Medical Exam Once the interview committee arrives at a decision regarding selection, the candidate is required to under go medical examination, to match the applicants physical capabilities with the specific job requirements. 9] Orientation Training This is the final step in selection procedure. It helps the new employee to adjust to the new environment. He is made familiar with company's policy, objectives, rules and regulations, payday house of work etc. After selecting compatible personnel the organisation must communicate to the new employee its philosophies, policies and customs of doing the business. INDUCTION OR ORIENTATION TRAINING As the name suggests, it is the method of introducing a new employee in to the organisation with a view to gaining his confidence and developing in him a sense of cooperation. Induction training is the final step in selection. It helps the new employee to adjust to the new environment. He is made familiar with the company's policy, objectives, rules and regulations, pay day hours of work etc. Actually induction training is concerned with the problems of introducing or orienting a new employee to his work group, supervisor and the organisation. Time spent in induction training proves beneficial in the long run. New entrants may be made to spend some time where practicable in an improvised training center where they are made familiar with the machines and equipment and working conditions on the shop floor. This gives the trainees a sense of self confidence before they take up their job. A planned induction welcomes a new employee creates a good attitude, reduces labour turnover and the worker feels at home right from the beginning. The period, of induction training need not be long; but enough information should be given about the company and its product, standing orders and working Conditions, organisational structure, amenities and services, personnel policies, sources of information, safety and accident prevention and employee's own department.
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Before the new entrant starts on his job he should be introduced to his supervisors, follow workers, and employee responsibilities. The trainer should watch periodically now he adapts to the new job and clear the doubts in the mind of the trainee. The object is to see whether the right man has been placed on the right job or there has been a mistake. It provides an opportunity for the supervisor to assess the contribution of the employee and make suggestions. If necessary for the improvement of his performance.
PROMOTION Internal administration of the man power involves a number of considerations, such as systematic promotion of deserving employees, well planned interdepartmental transfers, demotions of the in efficient employees, suspension or discharge of workers promotions and transfers are essential features of any personnel program designed to maintain a labour force at high level of efficiency. In cases of promotions transfer and lay off questions of interest, skill, ability and experienced are involved. Promotion is usually as a movement to a position in which the responsibilities are increased. It is an increase in rank. Ordinarily promotion is an regarded as a change that results in higher earnings, but increased earnings are not essential in a promotion. Apparently, promotion places employees in positions which carry greater as well as increased responsibilities. Generally promotions are associated with an increase in earnings as well as responsibilities and rank. Reasons for Promotion These can be several reasons for promoting an employee promotion rewords employees for faithful service, meritorious performance, out standing ability on the job accomplishment in accidents advance and such other indications of desirable service. In many cases it appears to be a reword for longevity of service, for staying with the firm, as is particularly true in some seniority arrangements. Sometimes it is reward for personal loyalty although such a system tends to put promotion on a basis of favoritism and preference. However promotion is not only a means for rewarding the employees, it is at the some time a means of placing the employees in those positions where they can be more valuable for the concern. Promotions reduces labour turnover and in many instances it solves the problems of training by providing instructions on the jobs for high positions to which workers may be promoted. CRITERIA OF PROMOTION In the matter of promotion two important criteria are seniority and merit. Seniority may at times be given weight but seniority alone is as bad as favoritism. Therefore it may be suggested that a promotion program must be kept alive by promoting a man for merit. Promotions based on merit awaken and each promoted person becomes a symbol of what may be attained by another. In such a system each subordinate is a sort of standing challenge to his superior. The best promotion criteria must necessarily be complete combination of objective efficiency, professional competence and human qualities. The best scheme should be one which does not ignore either of the two criteria. Appropriate weight age be given to both the criteria. TRAINING After the employee has been selected, placed and induced he must next be trained. Training is the organised procedure by which people acquire knowledge and skill for a definite purpose. It is the act of increasing the knowledge and skill of worker for doing a certain job. At present training is necessary because many jobs have assumed a highly technical character and under automation we require highly skilled operators.
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Methods of Training Broadly speaking there are four methods of training i.e. on job training, vestibule school, apprenticeship and special courses. 1] On job Training This method of training is more widely used, provided the number of employees to be trained is limited at the sometime for the same job. Under this method the worker works on the actual equipment. It is useful for unskilled, semi-skilled and manual jobs as welt as clerical jobs. The aim of this training is to give the employee the necessary skill required for a specific job. 2] Vestibule Training This is one of the job training method. Actually vestibule means a place from where one has to pass before entering the main building. It is special training school. An attempt is made to duplicate the actual equipment material and conditions found in the real work place. New workers are trained for specific jobs on special machines and equipment in a separate training center within the plant itself. This method is very useful when a large number of employees demand training at the same time for the same work. 3] Apprenticeship This is one of the oldest method of training. It is popular in specific trades and crafts. This type of training is imparted to train learners who are not regular employees of the enterprise. The object of this training is to ensures regular supply of trained workers the enterprise. The learner is given wage rate or stipend. After completion of training the trainees might be required to serve the enterprise for a specified period. This method of training is of course ideal but it is relatively costly. 4] Special courses Some complicated jobs require much detailed theoretical practical or technical knowledge under different work conditions. In such a situation intensive training courses in institutions outside the organisation have to be arranged. Under this type of training we have class room method lectures, seminars, conferences etc. class room instructions are very useful where concepts, attitudes, theories and problems solving abilities must be learned and where considerable depth and knowledge must be acquired. Class room methods are usually employed for supervisory and middle management training. INDUSTRIAL AND LABOUR LEGISLATION The important acts which govern the labour conditions and relations in our county are the factory act, Minimum wage Act, Worker's compensation Act, Indian Trade Union Act, Industrial Disputes Act, Employees state Insurance Act and Employees Provident Fund Act. The state government makes rules regarding issue of licenses. At least 15 days before he begins to occupy any premises as a factory, the occupier should inform in writing to the chief inspector the name and situation of the factory name and address of the occupier the nature of manufacturing process nature and quality of power the number of workers to be employed etc. The state government appoints the chief inspector and inspectors to exercise the provision of the act. The inspector can enter and examine the premises at any reasonable time. The state govt. authorises a certified surgeon for the examination of the workers for their health. 1] Factory Act Every factory is to be kept clean and free from gases arising from any drain or other nuisance. The dirt and refuse should be swept- from floor and benches. Proper drainage is to be maintained, while washing once in a year and painting once in five years are to be done. There should be adequate ventilation by circulation of fresh air there should be a space of 500 ft. for worker. There should not
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be any direct glare. Shadows should be avoided. Sufficient lighting should there. Sufficient drinking water should be provided separate enclosed accommodation for men and women for latrines; urinals should be provided spittoons should be provided. Every moving part of the machinery should be securely fenced by safeguards white the machinery is in use. Adjusting lubricating, shifting of belts should be done by trained adult male workers wearing tight fit closes. All the machinery driven by power, all gear wheels should be completely enclosed. Every hoist and lift should be of good mechanical construction and thoroughly inspected every 6 months. The eyes should be properly protected from particles thrown off during the process and from excessive light. Proper fire escapes should be provided all door should be kept open and unclosed. Fire fighting equipment should be' provided in every room. The factory building should be constructed in sound and safe manner clock rooms are to be provided first aid appliances should be provided. If there are more than 250 workers a canteen should be provided. Suitable shelter for rest, taking lunch etc. are to be maintained. If 500 workers are there a welfare officer is to be employed. No worker should be allowed to work more than 48 hours in a week. A worker should not work more than 9 hours a day and should not work for more than 5 hours without a rest of at least half an hours. If a workers works more than 9 hours in any day or 48 hours in a week, he is entitled for over time wages at twice his ordinary rate of wages. A worker should not be employed in other factory after he has finished his work in one factory. A register of workers is to be kept showing name nature of work, shift and other particulars. The total number of overtime hours should not exceed 15 hours in a quarter. No woman should be employed between 7 p.m. and 6 p.m. no child should be allowed to work in a factory. Every worker who has worked for a period of 240 day or more in a factory during a calendar year shall be allowed during the subsequent year leave with wages for a number of days calculated as for adult one day for every 20 days. The leave not utilised will be added in succeeding calendar year provided the total does not exceed 30 days. When an accident occurs, the matter should be reported within 48 hours the proper authority. If any disease occurs due to the operations in the factory, the medical officer has to inform the chief inspector immediately.
2] Minimum Wage Act The state govt. can fix the minimum rates of wages payable to employees in different establishments. The govt. can fix wages for time work piece work or overtime. Different employments different locality and different groups by hour day month or any other period as prescribed. The government will take the variation in the cost of living index, either as base rate or as base rate plus an allowance. The wages are to be paid in cash. The employer should not pay less than the minimum rate. The govt. can appoint inspectors to exercise the implementation these provision. If an employer violates the provision of the act can be punished with an imprisonment of 6 months or with a fine of Rs 500/-. 3] Compensation Act If a worker receives an en jury by accident arising out of his employment the employer is liable to pay compensation. The employer is not liable to pay compensation in respect of en jury which disables the worker for three days only. When the en jury caused while the worker is drunk, willful disobedience to an order express given for the purpose of securing safety of worker- willful removed or disregard of any safety guard. The amount of compensation is decided in the cases, where the death, result the en jury, where permanent total or partial results from the en jury where temporary disablement whether total or partial results from the en jury. If the disablement is to last for a period of 28 days or more after the expiry of a waiting period of 3 days and not exceeding a period of 5 years, the monthly compensation is to be paid. If the employer is in default of paying the compensation an, interest of 10 % per annum
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and a penalty of 50 % of the amount may be recovered. The compensation in case of death should be done through the commissioner. If the worker refuses to attend medical examination the right for the compensation shall be suspended. The state government may make rules to carry out the purpose of this act.
4] Trade Union Act This act provides compulsory recognition of the representatives of the union by the employers. The trade union must submit their constitution audited accounts and it should properly run the members of the executive must be from the actual workers up to 50% meetings should be held at least once in every six months and a proper procedure is to be adopted for declaring a strike. A trade union may collect funds from its members on a voluntary basis for the promotion of any civil or political interest of its members. Recognised trade unions are entitled to negotiate with employers with regard to employment, terms of employment condition of work, the employers are bound to grant interview to the union executives and reply to its letters. Trade unions should not use unfair practices by majority members taking part in irregular strike, the executives supporting an illegal strike and submitting a false statement. 5] Industrial Dispute Act Any industrial establishment having 100 or more workers committee consisting of representatives of employer and workers in equal number. This committee has to promote measures for getting good relations between the employer and the. employees. An Industrial tribunal may be formed to adjudicate any dispute covered above and wages compensation. A state government can refer any industrial dispute to a board, to a court of inquiry, to a labour court or to a tribunal for adjudication. NO worker of public utility service should participate in the strike without giving notice to the employer or giving notice of strike within 6 weeks before striking or within 14 days of giving such notice before the expiry of the date of strike. No employer carrying on any public utility service shall lock out any of his workers within 6 weeks before expiry of the date or during the tendency of any conciliation producing. The notices should be given in a prescribed form. The party who receives it should immediately inform the government. In case of retirement a compensation of 50% of the total basic wages and dearness allowance shall be paid to the laid off worker who has completed one year of service. A worker cannot be retrenched without a period of one month's notice in writing indicating the reason. 6] Employees state Insurance Act This act applies to all the factories and covers the employees receiving wages up to Rs 400/per month. This scheme is contributory both for employers, employees and state. Center government finances the scheme. Generally 1/3 is contributed by the employee and 2/3 by the employer. The scheme covers sickness, maternity, disablement, dependents, medical benefits. If the insured .person is under sickness for a period of 3 to 56 days in a continuous period out of 365 days, he get 50% average daily wages and he must be under their medical institution. 7] Employees provident fund act This act applies to persons earning up to Rs 500/- per month and for factories employing more than 50 persons. The workers are allowed to contribute from 6 to 8,33% of wages and the employer contributes 6.25% when the worker retires or leaves the service the total amount is given to the worker. PARTICIPATION IN MANAGEMENT The employees think that their interests are in conflict with management and management is at the root of all evils. On the other hand, the management complaint that employees are
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impracticable, they do not understand their limitations. The only answer to this and many other problems of industrial relations is that the workers or the employees should also be asked to participate in management. For higher productivity and industrial peace the workers are now increasing by associated with the process of management. If brings employees closer to the management promotes their interest in the enterprise, and bridges the gap between the management and workers.
Methods of Participation in Management Several schemes involving employees participation in management have been tried in the past few years but non has been found satisfactory and self-sufficient. Following are the most important methods of involving employees participation in management. 1. Suggestion Schemes According to this scheme employees are encouraged to give suggestions regarding improvement in the existing methods and procedures of work. A suggestion scheme will be successful only when all the suggestions are considered fairly and promptly. 2. Joint Consultations This involves the setting up of joint committee comprising of employees and the management. Usual matters relating to welfare activities, such as first aid, absenteeism, punctuality, waste of time and material, training, removal of grievances facilities for drinking water, rest rooms, canteen etc. Joint consultation committee is of advisory nature only. The decisions are not binding on the management. The committee do not deal with subjects like wages, hours of work, bonus etc. 3. Employees Representation on board of Directors Suggestion schemes and joint consultation can be effective only at the mercy of the management. Full fledged effective participation by the workers can be ensured if they have their representative on the board of directors, where they can not only suggest but influence matters. 4. Co-partnership Under this scheme employees also become shareholders of the company. As shareholders workers become part-owners of the concern and can have some say in its internal management. If the number of shareholders are sufficient they can get their representatives elected to the board of directors. 5. Auto-management This method involves complete control of workers on the enterprise workers are the managers, they have the sole right of management. The workers manage the enterprise through worker's council and management boards. This method exists in socialist countries like Yugoslavia and Poland. Workers Participation in management in India: A number of progressive trends have been taking place in the field of labour policy since the inception of first five year plan among the more important of these is the principle of worker's participation in management. In India it was felt that the greater association of workers with management is necessary for the successful implementation of five year plans. It is so because realisation of the socialistic pattern of society is based up on the existence of industrial democracy. Such a industrial democracy is built up not solely on monetary incentives but on ideas of service of society and the willingness on the part of the workers to recognise such service. In this context the workers should be made to feel in his own way that he is helping to built a progressive state.
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In view of the some the second plan recommended the provision of councils of management consisting of management, technicians, and workers in large establishments in organised industries. As a preliminary step, the Ministry of Labour and Employment set up a tripartite study group consisting of representatives of employers, workers and government in October 1956. The study group visited a number of European countries to study the various schemes of workers participation. The group submitted a report to the Government in which a scheme of "Joint Management Councils" was suggested. The recommendations of the study group were accepted by the Indian labour conference in 1957. It was a voluntary scheme and the measure would help in increasing productivity, give employees a better understanding of their rote in the working of industry and of the process of production and satisfying the workers urge for self expression, leading to industrial peace better relations and increased cooperation. In march, 1960 a seminar was held to review the progress made in regard to the formation of J MC's. A target of 60 was fixed but only 24 J M C's were formed. As the progress was unsatisfactory. A new scheme was suggested i.e. the 'scheme for workers participation in industry at shop floor and plant level' the scheme goes by the name of "Shop Councils" The functions of 'shop councils relate to production, productivity, absenteeism, general discipline, health safety, welfare and working conditions. The decisions of the council would be implemented within due month. The scheme was implemented by 1249 unions out of 1795 up to the end of October 1966. The National commission on labour (N C L) 1969 did not favor the idea of the joint management councils. In its view J M C's were redundant in view of the works committees and recommended and recognised unions. The scheme for workers participation in industry at shop floor and plant levels in industry at shop floor and plant levels applicable to manufacturing and mining units employing 500 or more workers was introduced in October 1975. Another scheme for workers participation in management in commercial and service organisation in public sector having large scale public dealings and employing at least 100 persons was announced in January 1977.
TRADE UNION Objectives and Function The most Important development in the industrial field is the evolution of the Institution of trade unions. The industrial revolution gave birth to the factory system, large scale production under the factory system, increased labour problems and workers are exploited by capitalists. To protect the interest of the workers and to save from exploitation trade unions were formed and developed. Today there is hardly any industry or firm which has no trade union. In modern times the trade unions have widened their scope of activities and contributed a lot to improve the fate of the workers. Definition A trade union is a voluntary organisation of workers formed to protect and promote their interest through collective bargaining. Sidney & Webbs defines trade union as. A continuous association of wage earners for the purpose of maintaining and improving the conditions of their working lines. From the above definition of trade union it is clear that trade union is a voluntary association of workers formed primarily for the purpose of pursuit of the interest of workers. Objectives The main object of trade union is to protect the interest of its members against exploitation by employers. Following are the objectives of trade union.
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1. Better wages The main aim of trade union is to secure better wages for the workers, keeping in view the prevailing standard of living and the cost of living. 2. Better working conditions Trade unions strive for better working conditions for the workers in the form of shorter hours of work, leave with pay, social security benefits, and other welfare facilities. 3. Protection against victimization Trade unions not only minimize the helplessness of the workers by making them stand collectively and increasing their resistance power through collective bargaining but also protect their members against victimisation of the employers. 4. Self Confidence Trade union provides self confidence in workers and a feeling that he is not simply a log in the machine. 5. Labour Welfare The main function of trade union is the welfare of workers, such as guiding, counseling and helping in difficulties moreover providing welfare facilities such as housing, medical etc. 6. Industrial Peace Trade unions remove the sense of insecurity among workers and seek cooperation of -each and every member. It promotes industrial peace in the industry. 7. Collective bargaining Industrial workers are too weak in bargaining. Trade unions through collective bargaining protect the interest of the workers. Functions of Trade Union Trade union perform certain functions as to justify their existence. Mr. Broughton was classified the functions of trade unions in to three categories 1. Intra-mural 2. Extra-mural and 3. Political. 1. Intra-mural Function Intra-mural activities include those activities which are carried on within the four walls of the organisation for the welfare of the members such as bargaining with employer, for better wages and working conditions and for workers participation in management, providing labour welfare activities, getting share in profit, group discussion, Gherao and strikes are some of the tools which help the trade unions in getting their demands. 2. Extra mural functions Extra mural activities are those activities which are performed outside the compound of the organisation for the general welfare of their members. The main object of such activities is to seek their cooperation and help them in times of crises. Such activities include the provision of sanitary house fair price shops, library, and reading room, entertainment programs, Bal Wadies etc. These activities much depend upon the availability of funds.
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3. Political Functions In the modern democratic world trade union play a very important role in the politics of the country. They send their representatives to the legislative assembly and to the parliament through general election so that they may safeguard their own interest in the assembly and parliament. Some trade unions are so strong that they have formed their own political party and fight elections. COLLECTIVE BARGAINING Industrial harmony is essential for economic progress and the concept of industrial harmony postulates the existence of understanding, cooperation and a sense of partnership between employers and employees. Unnecessary strikes and lock outs go against the interest of the community. Whatever labour laws may lay down, it is the approach of employers and trade union leaders which matters and unless both are enlightened, industrial harmony is not possible. Industrial peace can be better maintained if the bargaining parties are strong and develop the habit of planned collective bargaining. Definition Collective bargaining is a two party procedure for arriving at a commonly agreed solution. Data yoder defines collective bargaining as, "Collective bargaining is essentially a process in which employees act as a group in seeking to shape conditions and relationships in their employment." Thus collective bargaining is used to describe the procedure whereby employers must reach agreement about wage rates and basic condition of labour with the trade unions instead of with individual workers. It is the process of discussion and negotiation between an employer and a union eliminating in a written agreement or contract and the adjustment of problems arising under the agreement. Trade unions try to advance the interests of their members mainly by negotiating agreements usually termed as union contract with employers. The process by which these agreements are negotiated, administered and enforced are included in the term collective bargaining. Collective bargaining as a technique for the fulfillment of the needs and objectives of workers and employers is an integral part of industrial society. Collective bargaining is a powerful instrument for either good or evil. Its results, depend on wisdom and foresight Ness with which the bargains are made. Conditions for Success of Collective Bargains Collective bargaining can be an effective instrument in the settlement of disputes and advancement of the cause of labour if certain basic conditions are fulfilled. 1. The primary condition for the successful process of collective bargaining is the existence of well organised and fully recognised trade unions with well defined policies. It follows that collective bargaining is not very useful in the early stages of development when unions are not wellorganised. 2. Collective bargaining can be an effective technique of setting industrial disputes when there is a spirit of give and take between the employers and workers. 3. There is no legal sanction behind the terms and conditions voluntarily agreed upon, the parties concerned must do things and act in good faith on the basis of mutual agreement. 4. The success of collective bargaining much depends on the moral fiber of the labour leaders as well as the employers. There should be a complete and true under standing and appreciation of each other's viewpoints. Face to face meetings between the representatives of workers and employers can serve an useful purpose only when the traditional prejudices are kept aside by both the parties. 5. There should be no uncertainly about the fields in which the parties are legally required to bargain collectively.
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PRODUCTION PLANNING AND CONTROL Rs 50/ADVANCE PRODUCTIVITY TECH RS-40/coming soon - process engineering
4. MATERIAL MANAGEMENT
MEANING There are two fundamental inputs in which management is primarily interested i.e. men and materials management is equally interested in optimising the use of both. However from management point of view material management offers greater promise as a cost reducing device. Better and scientific management of material cannot only bring about substantial cost saving but also results in improved production capacity of plant, saving of labour, time, reduction in inventories, reduction in store space, reduction in damages to materials, smooth flow of production, easy production control reduces employees fatigue etc. In recent years materials management has gained increasing recognition as management function comprising all aspects of industrial handling, storage warehousing, stock control and transport. According to Prof. A. K. Shah the science of material management includes (i) purchasing (ii) store keeping and (iii) inventory control. According to Bethel, " Materials management is concerned with planning, directing and controlling the kind, amount location, movement and timing of the various flows of commodities used in and produced by business enterprises ". Material management is a running partner of production control department till the product is manufacturer to the ultimate consumers becomes an integral part of materials management. In a sense-entire marketing is basically materials management. Materials management end when the correct, finished product in proper condition, quality and quantity is in the hands of ultimate consumer. CLASSES OF MATERIALS In the materials flow system we have raw materials, parts, In-process-materials, supplies equipment 'items etc. These are demanded by manufacturers and processors. Finished goods are demanded by customers in the market to satisfy their needs and desires. Following are the different classes of materials used in the process of production. 1.RawMaterials These are the Materials which are used in the product, which are in an unprocessed condition e.g. cotton jute, iron and steel, chemicals etc. 2. Purchased Parts These are the items used in the assembly of the product e.g. bolts, nuts. screws etc. 3. In process materials These are called works-in-process inventories. These are semi-manufactured goods demanding further processing e.g. shoe upper cut from leather. 4. Finished product These are goods fully manufactured inspected and ready for dispatch to a customer e.g. finished pair of shoes, decorated flower pot, ready made garments.
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5. Supplies These are consumable goods used in the process of manufacturing e.g. stationary, pencil, oil, flies, grinding wheel etc. 6. Equipment items These are physical facilities and fixtures, fittings and such other expendable parts of machines. MATERIALS CONTROL Materials are one of the important elements of production as they form a high production, the wastage should be kept at the lowest possible level To avoid this wastage, some type of control is exercised which is known as materials control. Materials controls means steps taken to reduce the amount of loss of materials at the time of receiving, storing and issuing the raw materials. The objectives of material control are as follows 1. To ensure requisite quality of materials 2. To ensure regular supply of materials 3. To ensure proper storage of materials 4. To ensure minimum wastage of materials during storage and use. Need of Material Control In an industrial concern the system of materials control is very significant because of the following reasons. 1. Materials control system would ensure the availability of different kinds of materials. 2. As materials form a high proportion of total cost, wastage can be reduced if materials purchased are of proper quality. This can be ensured by the materials control system only. 3. Under the system of materials control the management may evolve some techniques which will get the optimum use of materials from the workers. 4. Materials control reduces the chances of understocking and overstocking by determining the time when the order is to be placed. 5. Efficient handling of materials and storage lowers the acquisition and possession costs and thereby real cost is reduced. PURCHASING Meaning Generally speaking, the term " purchasing " or " buying " means going to the open market finding the lowest price at which a standard item is offered and selecting a supplier who offers it at that price. But purchasing is much more than buying. It is an executive job involving cooperation with other functions. It is managerial activity and it includes planning, organisation and control of wide range of' interrelated activities. Purchasing is very closely related to production as well as marketing. Purchasing is indeed an art and we need experts make scientific purchases in modern market. Purchasing at present has assumed a technical aspect and needs the services of professionals and competent buyers. According to Alford and Beatty "Purchasing is the procuring of materials supplies machines, tools and services required for the equipment, maintenance and operation of a manufacturing plant. Purchasing Policy Purchasing policy means purchasing sufficient for all the anticipated needs but neither overstocking nor carrying stocks at low levels. A sound purchasing policy adopts the golden mean
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and avoids either excessive speculation or over conservative buying. Economical, efficient and timely purchases can appreciably reduce the cost of procurement and consequently the cost of production. Type of Purchasing Policy The manufacturer may adopt the following purchasing policies according to specific requirements and prevalent market conditions.
1. Speculative V/S Conservative Buying Under the speculative buying bulk purchases are made through large orders at a time and at a bargain price with the object of reselling the stock at a higher price in the near future. If price change is favorable you make good profit and if the price change is adverse you incur a heavy loss. It is a game of risk. Merits 1. The businessmen get attractive quantity discount 2. The cost of transport is low 3. No uncertainty regarding the future stock supply 4. Possibility of bumper profit if prices do rise as per forecast Demerits 1. This type of purchasing policy demands considerable locking up-of capital 2. There is risk of loss due to deterioration, fire, theft etc. 3. It creates a danger of over trading and over stocking 4. This policy is a curse when the supply exceeds demand in the market Conservative Buying Under conservative buying purchase are made strictly on the basis of current needs. There is small lot purchase through small and frequent orders. This policy is suitable and always preferable when plenty of goods and prices are falling. Merits 1. There is a minimum risk of loss 2. The buyer can have fresh stock from time to time. 3. Limited capital is locked up at a time. 4. The cost of warehousing and insurance is low. 5. The selling plans will be elastic or flexible. Demerits 1. This policy of buying is un-suitable in a rising market 2. The buyer has to enter the frequently and each time fresh purchases will have to be made at higher prices and costs. 3. This policy of purchasing Involves current orders, receipts, payments, repeat checking expenses and cost of purchasing. 4. This policy leads to higher purchase cost per unit. 5. Profit margin of dealers is reduced. 6. This policy created a constant danger of getting out of stock. 2. Concentrated V/S Diversified Purchasing Concentrated Purchasing The number of sources on which a wholesaler or a retailer may depend for his supplies may be very few or limited is called concentrated buying policy.
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Merits 1. The patronage is given to a limited no. of suppliers. The buyers can get better services special treatment, prompt delivery reasonable prices etc. 2. Large orders on a few suppliers gives benefits of lower price and quantity discount. 3. Bulk purchase from a few suppliers may reduce the cost of handling and transport. Demerits We should have at least two or three alternative sources of suppliers for alt important items. This will reduce the danger of extreme concentration. It is very risky to depend on one source only. If it fails our business will be paralysed. The choice will be limited if you rely-on one source only. Diversified Purchasing If purchase are made from a large no. of sources It is called as scattered or diversified buying policy. Merits 1. Buying plan inflexible. 2. When there is a healthy competition among many suppliers lower prices are expected 3. It reduces risk arising out of extreme concentration 4. Diversification makes selection easy and gives a wider choice to the buyer. Demerits 1. The buyer has to sacrifice quantity discount. 2. There is an increase in transport and handling cost. 3. Absence of special privileges and lack of better services. PURCHASING PROCEDURE Every business unit acting as a merchant middleman has a set procedure to effect purchases from suitable sources of supplies. A procedure is the specific manner in which a certain activity is to be carried on. They set out definite task with their time sequence to be undertaken by assigned employees within the limit laid down by the policy. Steps in purchase procedure The usual steps in purchase procedure are as follows 1. Purchase Requisition A properly signed and approved purchase requisition authorised the purchase department to order the materials, specifies what kind is desired, how much and when as well as where it is to be delivered in the plant. 2. Obtaining Quotations The purchase manager on the basis of requisitions wilt send out inquiries to the probable suppliers asking for quotations and samples. Inquiries can be made through public notice in news papers. Inquiries must specify demands and requirements in detail. 3. Placing of Orders On the basis of most favorable quotations orders will be sent to the selected suppliers. The order must be on a printed form. It must be made in four copies. It gives the following information. a. Serial no. and date of order
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b. c. d. e. f.
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Name, address etc. of the safer Pull particulars of goods quality, quantity, description etc. Prices and terms of discount Manner, mode and date of delivery Special instruction relating to billing, packaging, labeling, insurance and mode of transport etc.
4. Follow up-order It may be necessary to follow up an order to ensure prompt execution of order by the supplier. It expedites the dispatch of goods and assures supply of material for production in time. 5.Comparison of Invoice & Goods received As soon as the invoice is received it will be carefully tallied with the order. A similar comparison will be made when the goods actually arrive. Errors and omissions if any will be rectified by the usual device of exchanging debit of credit notes. 6. Entries in Books of Accounts When the receiving department makes a favorable report on the receipt of goods as per order, the purchase department will forward the invoice with necessary endorsement to the account department which will enter the invoice in the books of accounts or ledgers. 7. Payments If cash discount is to be secured, the bill will be passed for making payments by cheque immediately if purchases are on credit, payment orders will be issued after receiving and verifying the statements of accounts. INVENTORY CONTROL Meaning All goods between the receipt of raw materials and the dispatch of final product to customers are termed as inventory. Inventory control means control over materials lying in store. Inventory control keeps continuous track of inventories. It is not only record keeping. It aims at the following triple objectives 1. Never run out of any thing i.e. out of stock. 2. Never build up a very large inventory i.e. having much of any thing on hand (un-wanted stock). 3. Never send out too many small costly orders for more i.e. never pay high prices. Too many small orders also involve current clerical work. We lose quantity discount also. We must avoid hand-to-mount buying. Effective inventory control call assure at least 10 percent saving in our total investment. Objectives Following are some of the objective of inventory control. 1. It reduces the minimum idle time due to shortage of materials and spare parts. Neither man or machine have idle time due to lack of materials. 2. It offers maximum service and satisfaction to customers with regard to fulfilling the due dates strictly as per orders. The main of business is to create and retain customers. 3. It is interested in minimising capital investment and cost of storage Thus better sales through improved service to customers, lower cost through smoother production operations and tower investment through reduced inventories. Importance of Inventory Control Following are some of the important points of inventory control.
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1. A good inventory control minimises the possibility of delay in production. There is no danger of closure (lockout) of plant, un-employment, lower dividend and replacement of management. 2. Inventory control system helps to secure many economics i.e. no duplication in ordering, better use of available material, low freight charges, higher discount, lower price and less clerical works. 3. Inventory control discourages dishonesty i.e. stealing material from plant. 4. Inventory control system expedites (helps in) preparation of financial statements. 5. Due to inventory control losses, damages, deterioration of materials can be minimised. 6. There is a careful material handling.
Functions of Inventory Control With particular reference to commercial concern i.e. big wholesaler or larger retail establishment the following are the typical functions of inventory control. 1. Inventory control keeps the stock of goods at the most appropriate level at all times so that the requirements of sales department can be always fulfilled. 2. It maintains capital investment in stocks at a minimum desirable level, 3. Inventory control protects the stocks from losses and damages due to improper handling, pilferage, unauthorised removal from the store. 4. Inventory control receives and records of all goods souted in the store and keeps up to date watch on every out going item. 5. Inventory control indexes of all items of stock for their quick location. This is done trough identifying marks, labels and bin cards. 6. It keep up to date records to show quantity and value of all goods in the warehouse. All receipts and deliveries made from the warehouse and the point at which replacement of stocks become necessary by ordering new stocks. Standards in Inventory Control There are four important quality standards in-inventory control. 1. The Maximum It indicates the upper limit of the level of stocks or inventory. It points out the largest quality to the normally kept in store in the interest of economy. 2. The minimum It indicates the lower limit of the level of stocks or inventory, which is rely a maximum reserve or margin of safety. This level of safety is used only in an emergency. It is the level acting as safe valve. It is the minimum level of stocks which must be always on hand. It is the minimum reserve of the dealer. 3. The Standard order It is the quantity of stock to be order for purchase at any one time. A repeat order for a commodity is always of the same quantity until conditions change, necessitating a revision of standard order. The purchase requisition gives this quantity for replenishment of stocks. 4. The Ordering Point It is the quantity of stock necessary to protect against the exhaustion of the stock during the gap between the date of order and the date of actual receipt when the level of stock or the balance in hand reaches this level it is or indication that a new order must be placed at once. Thus maximum indicates the upper limit of the stocks the minimum indicates the lower limit, the ordering point indicates when to order and the standard order indicates how much to order.
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ABC Analysis Method ABC Analysis is one of the techniques to exercise control by exception. It classifies the items in the stores in to three categories namely. A includes costly items representing about 50% to 60% of the value of stores but constitute only 10% to 20% of the store items. In category B are put such items which constitute about 20% to 30% of the stores item and represent about a similar percentage of the value of stores Category C comprises 50% to 70% of the stores items in no. but represent only 105 to 20% of the stores items in value. Items A category strictly supervised where as less control may be exercised over C category items. Items of B category requires only moderate control such a control known as ABC analysis i.e. always better control. Costly items are often checked and thus chance magnitude of discrepancies between the stock records and the actual inventories will be minimised. Physical Inventory Physical inventory is a control procedure to assure that book balanced and actual physical balance are in agreement. It is taken periodically or once a week each group of stores. Accuracy of records is more important than the system of control. Routine for Physical Inventory The routine for physical inventory is as follows a. Incoming and Outgoing flow of materials in stopped. b. Scrap material is collected at one place for removal. c. Good material is arranged in tots ready for checking. d. Stocktaking card is made out for each tot. Quantity is counted, entered on the card and the card is left on the material. e. Senior executive checks that there are cards on each file of material. f. He rechecks samples of quantities and then supervises the collection of the cards. g. All cards are sent to the account department for valuation analysis and totaling. STOREROOM Meaning Store keeping is that aspect of material control which is directly concerned with the physical storage of goods. The store of goods is a connecting link between the shop or work place and production control department. Material, parts, work-in-process etc. move through the store, just as money move in to and out of a commercial bank. The principle function of store room is to act as a clearing house for goods i.e. receipts of goods bought and issue of needed materials in the plant.
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Store keeping is primarily a service function in which storekeeper acts as a custodian of the items kept in the store. There are three objective of store keeping. 1. To safeguard all goods in store against losses. 2. To have available all such goods ready for prompt delivery when properly authorised. 3. To provide maximum store keeping service to the manufacturing and sale department.
Location of storeroom The determination of storeroom location will depend on the needs of the plant and will depend on the needs of the plant and will vary greatly from plant to plant. Certain basic factors should be taken into account while following factors determining the location of the storeroom in a manufacturing plant. 1. The flow of materials The ideal location of storeroom should be where the movement of the materials from the receiving department to the storeroom and from the storeroom to the processing department is the minimum possible, and where the most efficient transportation and material handling equipment can be utilised. 2. The character of the materials The character of the materials to be stored affects considerably the location of storage area. Materials that is not damaged by weather can either be stored out of doors, in a shed or merely protected by a roof un-machined iron castings, lumber, sand and similar items fall in this Category. Materials that is hydroscopic such as cement plaster and the like must be not only protected from weather, but must also be stored in a place that is dry. Machines, casting, forging, and other materials subject to corrosion must be stored in dry places and be coated to prevent rusting, liquid or materials whose character is changed by low temperatures must be stored in heated storerooms. Finished textile goods which may be damaged by dirt must be stored away from dust proof bins. 3. The quantity, weight etc of materials The quantity of each of the goods to be stored must be carefully considered in determining the location of storerooms. When these quantities are known, the weight and bulk of each material can be determined and the space requirements calculated so that adequate provision may be made of immediate and future storage needs. 4. Layout of storeroom Storage location depend on place of receipt, place of use type of material, climatic conditions, anticipated period of storage, cost of materials, volume to be handled etc. Planning of storeroom space is essential to efficient operation and reduction materials handling cost etc. 5. Factor determining layout of storeroom Certain factors of layout of storeroom may be mentioned below 1. Similarly Items are store by class e.g. small tools, hardware, tubulars etc. 2. Popularity Turnover should be considered so that fast moving items should be stored near the point of issue. Retail stocks also should be kept handy. 3. Size of item
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Large items should be stored near the point of use e.g. Drum, steel coils at the drum plant.
4. Capacity of storage facilities Location of doors, size and availability of cranes, size of platforms and ramps, allowable floor load etc. 5. Character of materials Hazardous, sensitive and perishable materials like cement, welding electrodes, acid, inflammable oils. 6. Turnover The first in the first out principle whereby rotation of stocks is ensured especially of perishable goods. PRODUCTION PLANNING AND CONTROL Production planning and control is a managerial function which plans, directs and controls a material flow system in the plant, to achieve target set by the marketing department with at most economy and efficiency. Production Planning Production planning is concern with managerial planning of production of goods and services. Production planning has been defined as, " the means by which a manufacturing plan is determined information is issued for its execution and data 'collected and recorded which will enable the plant to be controlled through all its stages. Production planning answers two main questions (i) What work is to be done (ii) What time wilt be taken to perform the work as per plan. Sales forecast constitute the base of production planning. On the basis of accurate and up to date sales records we can forecast the sales potentials of a company for future the coming three, six months or even for next year. Production planning prepares estimates of materials, personals and equipments required to achieve the objectives. It also prepares and keeps ready, alternative plans for action to face emergencies or any unfair seen circumstances. Objectives Production planning is the powerful instruments in industrial management. Some of the important objective of production planning are as under; 1. It prescribe desirable level of stocks of raw materials as well as stocks of finished product so that the enterprise can meet in time the requirement of the market. 2. It aims to ensure steady flow of production activities. 3. It tries to secure balance of all activities. 4. It tries to reduce the minimum the operating cost. 5. It tries to honor the delivery dates. 6. It tries to achieve target in sales and profits. 7. It tries to creates specified number of fobs. 8. It tries to utilise available plant facilities. This in production planning we have to decide process route or sequence of operation. Then we have to con side and decide a plan of sequence of operations to complete each process and finally we decide a plan of sequences of work element to complete each operation. PRODUCTION CONTROL Production control is a dynamic managerial function comprising four elements i.e. Action Feedback, Evaluation and adjustment. It regulates and stimulates the orderly flow of materials in the
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manufacturing process from the beginning to the end i.e. the finished product. Production control receives sales orders and converts them into production orders, feeds these orders to the plant in a desirable sequence so that there is no internal disorder. Production control is a function of directing and regulating the orderly movement of goods through the entire production cycle from the raw material to finished product.
Objectives Following are some of the important objectives of production control 1. It facilitates and coordinates activities concerned with the kind amount, location, movement and timing of the various commodities used and produced by a various commodities unit. 2. It aims to produce a right product in a right quality and at a right time. 3. It aims to secure optimum combination of resources and methods so that the average cost of production is the lowest. 4. It want minimum inventories of raw material and finished product more rapid turnover so that the capital investment can be reduced and company can secure higher return on investment. STEPS IN PRODUCTION PLANNING & CONTROL When the customers order is received, the firm has to decide whether the order can be executed from the inventory (stock) of finished product or whether the product demanded is to be produced specially. When the customer's purchase becomes production requirement the production planning and control department will start its activities. These activities are divided in to four stages i.e. Routing. Scheduling, Dispatching and Executing. 1. Routing It is planning stage, it determines where the work is to be done. It is the determination of manufacturing path when and where work will be done on a product and which specific machines are to be used. 2. Scheduling It is also a planning stage. It is the establishment of time sequence. It provides the time table of manufacturing indicating the sequence when the work is to be done. It sets the timing of production control. Time table of all activities can assure delivery of goods in time. 3. Dispatching It is the stage of action. It is the issue of orders and assignment of offers at the correct time a function similar to dispatching of trains in rail road industry. It deals with decision about who will do the work. 4. Executing It is the compliance stage. It is also called follow up or stock chasing. It is the function of determining whether or not the work progressing as per plan. The expediter serves as feedback link between the work performance and scheduling. It is control unit to ensure smooth flow of work and to expedite the flow of work. The following table shows the functions of production planning and control.
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5. MARKETING AND SALES MANAGEMENT

DEFINITION OF MARKETING The emergence of marketing as a business discipline is of relatively recent origin, through it has been practiced in one form or the another since the days of Adam and Eve. The ideas associated with marketing have undergone a great deal of change over the centuries. Marketing has been defined by various peoples in various ways. The American Marketing Association has defined marketing as " The performance of business activities that direct the flow of goods and services from producer to consumer". Hansen defines marketing as, "The process of discovering and translating consumer needs and wants in to product and service specifications, creating demand for these products and services and them in turn expending this demand." The Institute of Marketing defines marketing as, "Marketing is the management function which organises and directs alt those business activities involved in assessing and converting customer purchasing power in to effective demand for a specific product or service to the final consumer." Edword Condiff defines marketing as," The managerial process by which products are matched with markets and through which transfers of ownership is affected." In all these definitions emphasis has been given on the consumer and his needs and wants. Marketing is essentially a bridge between production and consumption and therefore must be consumer oriented and hence must have a part in decision making in all phases of management. The very objective of marketing is to influence the buying decisions of the people. The job of marketing is creating a customer and also recreating a customer and holding and attracting the customer. THE MARKETING MIX We have seen that the marketing job essentially consists of making a composite after acceptable to the consumer and of being capable of fulfilling his needs. How dose any-organisation make a composite offer to the consumer? In the first place, it chooses the product that would meet the identified needs of the chosen consumer group. Secondly it performs various distribution functions like transport, warehousing, choice of channels etc. So that the chosen product can conveniently reach the consumer. Thirdly the firm carries out a number of promotions measures to communicate with the consumer and to promote the product. These includes advertising, personal selling and various sales promotion measures that attracts the consumers. Lastly the firm six to achieve the consummation of the exchange process to the pricing mechanism, sticking the level of price i.e. acceptable to both the firm and the consumer. Elements Of Marketing Mix An American marketing expert Jerom McCarthy explain the marketing mix in terms of four P's. These four P's are product, price, promotion and placement. These four P's are intimately connected with each other. Each influencing the others in a complex and variety of ways. These four P's put together form the marketing mix. In each of the four P's, there are several important sub variables which are as follows : 1) Product Variables Under product variables following sub variables are included, these are product line and range, design, quality, features, models, styles, appearance, size and warranty, new product policy, packing type, materials, label, branding and tread mark, merchandising and pre sale and after sale service etc.
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2) Price Variables Under price variable following sub-variables are included. These are pricing policies, level of prices, discounts, rebates and level of margins, terms of delivery, credit terms, payment terms and installment facilities, resale price maintenance etc. 3) Promotion Variables Under promotion variable following sub-variables are included. These are: Personal selling, advertising, sales promotional efforts like display, contests, trade promotions, publicity etc. 4) Place Variables Under placement variable, following sub-variables are included. These are Channels of distribution like remuneration, dealer principal relations, physical distribution like- transportation, warehousing, inventory levels, order processing etc. MARKETING STRATEGY Marketing problems are quite different from the problems of production or finance. Marketing bears the brunt of the goals of entire enterprise. It is "a difficult task of predicting what the customers will desire in the near and distant future. Buyers behavior and motives vary frequently. It is not easy to predict with precision how a given quantum of money wilt be spent by the buyers. Their whims and fancies enter the picture and many sensitives are involved in the process No wonder, marketing described as a strategic function. Marketing strategy can be explained as the complete and un-beatable plan for the attainment of the marketing objectives. The marketing objecting, will tell us where the firm wants to go. The marketing strategy will provide the design for getting there. The strategy is essentially a battle plan. It is no exaggeration to say that the marketing strategy in several of its features resembles military strategy. In both, decisive action and foresight are supreme, intelligence and experience count a lot timing and resources deployment influence success. The marketing man is like the army man. His strategy is to fight to competitors so that the his business marches on. Marketing strategy is the sum total of several strategies i.e. marketing .mix strategy, timing strategy, communication strategy and strategy of offense. Let us discuss these strategies one by one. l. Marketing Mix Strategy Marketing Mix Strategy requires an intimate understanding of control lable or marketing mix variables and uncontrollable or behaviourable variables relating to consumer, competition, trade and environment that continuously influence the marketing system It would be no exaggeration to say that the juggling of marketing mix is the essence of Marketing strategy. Marketing efficiency could be improved considerably by withdrawing funds from one element of the marketing mix and giving it to another. Again, it may be possible to improve Marketing efficiency by pumping in more funds in some markets and reducing the commitment to another. 2. Timing Strategy It is an important and integral part of the marketing strategy because even the most carefully planned strategy will become a flop if its implementation is not appropriately timed. When the marketing man introduces a new product, or launches a new advertising program or announces the price change, it has to be at appropriate time. If he delays it, it may misfire. If it is too early, it may be equally unproductive. 3. Communication Strategy For a creative marketing strategy to work the firm will made an effective Communication Strategy. A creative marketing strategy can not operate with out a smooth and effective flow of
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information. It should clearly spell out the nature, type and sources of information that should flow from the field to the firm. It should also ensure that the information is accurate, timely and relevant. Simultaneously there should be an equally effective flow of information from the "brain cell" to the "field". Such a flow will include instructions and commands, tips and suggestions and factual information and detailed action plan. The success of marketing strategy depends on effective Communication Strategy. An imperfect Communication a vague explanation or an incomplete massage may create problems. Any weakness in the two way communication will adversely affect marketing strategy.
4. The Strategy of Offense For any firm operating in a competitive environment, the marketing strategy should involve a strategy reacting the development. Many firms prefer to wait and see what their competitors are going to do whenever they are confronted with a marketing problem. Such firms usually get only the left overs in the market. Because the best marketing opportunities have already been captured by the more offensive and far-sighted competitors. Careful analysis of the pros and cons of a situation is very essential. To wait and merely react to the other peoples action is not an adequate strategy. Nor is it wise to feel safe and protected in the midst of crisis situation in the, market. Creative marketing has to have as its essential ingredient, a strategy of offense a strategy of attack and action. MARKET RESEARCH Market research is the tool available to the firm to spot customer needs and to find out how to satisfy those needs. It helps the firm in the implementation of its marketing programs. With the increasing complexity of marketing and business activity, the collection and study of information relating to customers products and market also becomes equally complex necessitating specialised skills and sophisticated techniques. We find people using the two terms ' Market Research and marketing research " interchangeably. Actually market research is a part of marketing research. Marketing research is a comprehensive term which means a scientific study of all problems related to the transfer and sale of goods and services from producers to the consumers. It consists in finding out to who will buy, why they will buy, when they will buy, how much they will buy and so on. It aims at locating lithe most fertile markets which may be certain geographical areas or segments of population. Some typical subject for research in Marketing are location of market, quality of market, improved methods of distribution, analysis of products, analysis of sales, time of advertising place at advertising, improved copy of layout, sales training, salesman's quotas and territories, his remuneration etc. Marketing research enables the producer to determine, through the application of scientific methods. 1. What to produce 2. Who the potential buyers are and where are they located. 3. What and when & how much the consumers want. 4. How much to produce and 5. How to sell and when to sell in order to maximize the services rendered and the net profit earned. Definition of Marketing research Let us consider a few definitions of Marketing research. American marketing association defines Marketing research as ,"A systematic gathering, recording and analysing of data about problems relating to the marketing of goods and services from producer to consumer". Green and Tull defines Marketing research as, "It is the systematic and objective search for and analysis of information relevant to identification and solution of any problem in the field of marketing.
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Marketing research is a broad term which includes ail research activities m all Marketing aspects. It includes demand analysis, sales analysis, motivation research, price studies, new product studies, product testing, packaging, performance analysis, advertising and distribution analysis.
Aims and Objectives of Marketing research Generally speaking any performance of Market research aims at finding out four things i.e. (i) What to sell (ii) When to sell (iii) Where to sell (iv) how to sell. So as to get better prices. Market research can be conducted on different occasion and with different objectives The objectives of Market research are as follow : Objectives of Market Research Research in marketing must have certain objectives. Some of the common objectives are as follows: 1. To know about the buyer One objective of market research is to know about the person who buy the company's product. This includes the number of persons who buy, frequency of their buying, sources of their buying, their general location and social category. Given the details of the basic data regarding the above the factors, useful information may be gathered. 2. To find out impact of Promotional efforts Another objective of market research is to find out the impact of promotional efforts. The company may adopt different strategies to promoted product. There are possibilities that some aspects of the promotional strategy are effective than the rest. Research in these areas will enable the researcher to find out the strength and weakness of the promotional mix. 3. To Know Consumer Response Another objective of market research is to know consumer response to the product as to what the consumers fell about the product. The company may want to know consumer opinion about the satisfaction given by the product. So that the company may reveal the improvement in quality, design, size, packing, distribution methods etc. This information is essential for product planning. 4. To Know Marketing Cost and Profit Research relating to marketing cost (selling cost) may provide valuable information about distribution of total marketing costs. The difference between cost of production and the final purchased price is the marketing cost. Marketing research has the objective of minimizing such cost. 5. To Study External Forces The company may need reliable information about competitor's move, the share of the market, conditions developing in foreign market, government's k policies, consumer income and spending habits, new product and substitutes entering the market and their impact over the company's products. 6. Sale's Fore-cost and market planning Both sales forecasting and market planning logically helps to design marketing control which refers to same technique i.e. making sure that "every thing is being carried out in accordance with the plan which has been adopted, the orders which have been given, and the principles which have been laid down. The object is to find out mistakes in execution of the plan so that the mistakes may be rectified at the earliest and preventing from occurring again.
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Consumer Characteristics Consumer characteristics such as their number, geographical dispersion. frequency and regularity of purchase, average quantities bought and their susceptibility of different selling methods greatly influence the channel selection. Conditions conductive to direct sale or through short channel are small number of consumers, their geographical concentration, large units of purchase and infrequent and regular purchases. Where the consumers are large in number geographically dispread and purchase small quantity frequently and irregularly, lengthier marketing channels are indicated. Buying Motives Why does a buyer buy certain things? What motivates his purchase? It is said that the dissatisfaction of human beings create new markets. Why does an individual buy a product, a specific brand? Why does he switch over from one brand to another? Buying motives can be defined as all the impulses, desires and considerations of the buyer which induce the purchase of certain products. Product Motive and Patronage Motive. Product Motives:- Consumers impulses, desires and considerations explaining why they buy certain products are called product buying motives or product motives. Product motives may be classified as Emotional and rational product motives. Emotional product motives are those impulses which persuade a consumer to buy a certain product without evaluating the plus and minus points of the action. Emotional product motives normally appeal to the customer's pride or sense of ego, his urge to imitate others. Rational product motives, on the other hand involve a logical analysis of the intended purchase-what purpose is expected to be served by the product, the various alternatives available to the buyer etc. Patronage Motives Those influences explaining why consumers buy from particular firms are called patronage motives. Why does the customer patronize specific shops? What are the considerations or impulses that persuade him to do so? Patronage motives can also be grouped into emotional and rational categories. Emotional patronage motives are those that persuade a customer to buy from specific shops, without any logical reason behind that action. He may like the place for purely subjective reasons. On the other hand, if the customer selects a shop because he knows that it offers a wide selection, or the least models or good after sales services, or the services of competent salesmen. The knowledge of patronage motives of customers is important to marketers because the intention and need of marketers is to attract patronage, from as many customers as possible and to retain it. Types of Market In the ultimate analysis market is people and marketing is influencing the buying decisions of people. The distinction between sellers market and buyers market is commonly used to indicate the degree of control an enterprise exercises over the market place in general and customers in particular. Sellers Market and Buyers Market In setters market situations an enterprise can have substantial control over the market. Economists call this as a state of monopoly. Whereas in buyers market situations an enterprise can hardly exercise any control over the market. Economists call this as a state of perfect competition. Consumers and Producers Market A consumers market refers to the market of the ultimate consumers who buy products for direct consumption. Such products may be durable or perishable. In consumer market the buying
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decisions are influenced by personality intelligence, culture and the socio-economic group he belongs to i.e. heredity, wealth, occupation, life style, education etc. In consumer market buying is guided by more or less by need in case of essentials and by impulse in case on non-essentials. In consumer market buying is mostly individual buying. A producers market refers to a situation where the products are brought not for direct consumption but for some intermediate uses. i.e. installation of capital goods like plant, machinery etc., accessories, equipments, operating supplies, fabricating materials and parts and industrial raw materials. Industrial buying behavior is influenced by both organisational and psychological factors. Some of these are, the company's policies and systems, value analysis, feeling of safety and security while buying from a reputable supplier, status and recognition of the purchasing manager among other managers and such other factors like quantity, quality, service, delivery, regular availability and credit. In case of producers market the mode of buying is more or less a case of committee buying. Another important factor which is relevant in a producers market is service after sales.
Product Presentation and its effect A product will fail if it is offered to the wrong market. Matching the right product with the right market is the essence of marketing. In matching products and markets, several companies have flopped. The process calls for a comprehensive knowledge about the profile of a given market and the profile of given customer segment. Which market can absorb a given product, which group of customers can patronize the product, what are the buying habits and buying motives of these customers all these aspects will influence the acceptance of a product. To understand these dimensions marketers have to undertake detailed market studies and customer studies only with the strength of such studies can a marketer presents his products appropriately. Product presentation refers to the manner in which a product is offered to a particular customer segment or aimed at meeting a particular customer need. Sometimes a product is presented against a similar competing product. In several of the consumer product. The presentation is brought about through advertising. By exploiting the distinctive product characteristics, the product is advertised and made to appeal to the target customer segment. Some times a product a product presented initially for a particular market segment is represented to appeal to a wider market. The success of marketing depends heavily on an effective communication flow between the company and the consumer. Manufacturing a product and making it available on the market is only a part of the company job. Perhaps it is more important to make it known to the consumer that the product is available in the market. It is also essential to propagate the distinctive features of the product. Product presentation takes place through various cues and media with the intention of creating a favorable response. While presenting the product in the market, its colour, shape and size its labels and lettering, the brand name the material used all carry some communication cues. The right colour scheme communicates the nature of the contents. It captures the attention of consumers. It reflects the neatness and elegance of the product inside. It facilitates easy reading of the instructions. Just as the colour of the package its size, shape and design plays a very important role in presenting the product A good package design is eye catching and is not a strain for the consumer who looks at it and examines it. A bad package design can harm the total product massage. The product may be a quality product, but it may not be accepted in the market if the package design does not succeed in evoking a favorable response. Brand name also plays a very important role in product presentation. The buyers identify the products and distinguish one from another through the brand name. A good brand names should be able to suggest to the buyer what type of distinctiveness it claims. Physical features also play a very important role in presenting a product. Just like the package, its colour, design shape and odour. Pink colour oval shape, jasmine scent, silky feel, pocket
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size, feathery touch, all are product attributes. Price of the product also plays a very important role. When several brands of the same product are available consumers tend to use price as a cue to quality. The higher priced brand succeeds in giving greater quality assurance to the buyer. Similarly with product that normally fall under the category of gift products, when a person selecting a gift item, he normally likes to avoid a cheap brand. He may select the higher priced rod the market he producer should taken in to consideration the psychology of the consumer.
Definition & Importance of Advertising Advertisement has been defined as, " Any paid form of non-personal presentation or promotion of ideas, goods or services by an identified sponsor." In other words, 'it is a form of paid publicity. It has a strong persuasion power. It is a component, of company's promotional mix. The sales representatives, middlemen and advertising form an integrated communication network for sending messages about a product to prospective consumers. Advertising can be successful, depends on the objectives of advertising and the effectiveness with which the advertising program is carried out. Importance Advertising involves expenses but when the cost of advertising is compared with the cost of other ways of approaching a mass of prospective consumers, advertising is a relatively less expensive method. When the company does not know the names and addresses of potential customers, there is no other way except to advertise through a mass media. Following are some of the advantages of advertisement. 1. Advertisement makes the prospects aware of the product and its brand. 2. Advertisement helps selling on mass scale both by persuading new buyers in a given region and by extending the persuasion to new regions. 3. Advertising helps the retailers to stock goods which are better known and therefore have better sales possibilities. 4. Advertisement promotes competition, and therefore, many advantages to competition may follow. 5. Advertising is a peculiarly attractive alternative to price competition. 6. Advertising helps salesmen while making personal calls. Since the audience are already familiar about the advertised product, the salesman's task becomes easier and his appeal effective for price changes. 7. Advertisement encourage the creative arts and the artists. In the process it even develops an aesthetic sense in the society. Objectives of Advertise Some common objectives of advertisement are as follows : 1. Advertising may be used for introducing a new product. When the potential consumers have never used such a product before and as such the product itself needs an introduction. 2. Advertising induces the middlemen to store and handle the product. A well advertised product is likely to create curiosity to by among the customers and this possibility encourages the middlemen to store the product. 3. Advertising creates a favorable climate for maintaining or improving sales customers are to be commonly reminded about the product and the brand. 4. Advertising may be necessary to publicise some changes in the marketing strategy, when changes are introduced in the prices, improvement in quality, size, weight, packing etc. the changes must be informed by advertisement to customers. 5. Advertising is unavoidable to complete with or to neutralize competitor's advertising. Advertising basically helps to create product differentiation. 6. A strong built image through long advertising helps to keep new entrants away. It helps to built up certain monopoly area and the new entrants hesitate to make the particular type of investment.
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Thus a successful advertisement campaign ends when the buyers themselves have begun to advertise the product and its brand. It must be remembered that advertising is only a component of a broad marketing strategy. It must be cautioned here that advertising will not solve all marketing problems. Public cannot be fooled by advertising. Advertising can only give information about the new product. If can develop inquiries, create demand stimulate trade, help to determine buyer preference, support and supplement sales programs, reduce selling expenses and build customer relations. The images created by advertisement must be kept intact in reality. For example if the advertiser promise to give a VIP treatment to the customer when he visits the advertisers business place, the promise must be fulfilled.
Media of Advertising The major mass media available for advertisement are newspapers magazines, business journals, radio, film, television, direct mail and out door (bill board) or at fairs and exhibitions. In addition to these, there are several other minor media of which transport cards, posters, advertising on match boxes postal stationary etc. Newspapers are a strong media with a high readership. It is ideal for selling at a national level as well as to those products whose customers belong to all kinds of social status advertising is one of the best read features both in newspapers and magazines. Advertisement over radio and television has gained considerable importance in India. It's messages are sent to millions but no discrimination can be made. In newspapers and magazines the advertiser spends money to buy space whereas on radio and television the' advertiser spends for buying time. Outdoor advertising has the advantage of impressive size at a comparative low cost, with a suitable location it can be highly successful in its impact. Direct mail is the most selective medium. It is send to the most probable prospect and can carry the maximum information that the advertiser wants to give combined with combined with conversional offers gifts, it can have a direct impact on prospect. Fairs and exhibitions have assumed an increasingly importance in recent times. Methods of Selling A number of leading marketers and advertising agencies have taken up several sales promotion methods in their bid to capture as much sales as possible. Sales promotion activities are essentially aimed at demand creation. Methods of selling includes all those marketing activities, other than personal selling, advertising and publicity that stimulate consumer purchasing arid dealer effectiveness. It includes trade shows, exhibitions, couponing, sampling, premium, trade allowances, dealer incentives consumer education, demonstration activities, rebates, bonus pack and direct mail. (A)Sampling:This includes distribution of free samples. This is an expensive but powerful method. The samples might be delivered door-to-door, offered in retail shop or at fair. This method is useful for introducing new products such as soaps, detergents, cigarettes, bidies, toothpastes etc. (B)Couponing A coupon is a certificate that entitles the consumer to a specified saving on the purchase of a specified product. These coupons are issued either by the manufacturer or by the retailers. The retailers are reimbursed by the manufacturers for the value of coupons redeemed. This is a less expensive method. (C) Premium or Bonus
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An offer of a certain amount of product at no cost to consumers who buy a stated, amount of a product or a special pack there of is called premium offer or bonus offer. Premium offer is popular now a days.
(D) Money refund order This offer is usually stated in media advertising that the manufacturer will return within a stated period all the purchaser's money if he is not satisfied completely. (E) Contest An opportunity is provided for consumers to participate is a contest or game. With the chances of winning cash prices, free air trips, or goods. This form of selling is very effective. A contest calls for the consumers to submit an entry to be examined by a panel of judges who will select the best entries. (F) Demonstration A new brand is promoted this way. The demonstrations are staged at exhibition or fairs or even at door to door basis. This method is employed for cosmetics, household appliances etc. (G) Price off This involves an offer to consumers of a certain amount of money off to regular prices of a product prominently printed on the label. (H) Buying allowance A buying allowance is offered to dealer to induce him to by a new product introduced by the manufacturer. It involves an offer to dealers of a percentage off on cash minimum quantity purchased. The buying allowance is deducted from the face value of the invoice. (I) Count and Recount allowance This method is particularly useful t6 clear the distribution channels of an old product. This involves an offer of certain amount of money off. (J) Free Goods
Under this method an offer is made of a certain amount of product to wholesalers and retailers at no cost on every purchase of a stated amount of the same product i.e. 1 free item with every 10. (K) Dealer Listed Promotion Under this method advertising of other publicity materials like calendars issued by manufacturer carries the name and addresses of retailers who stock the product.
(L) Push Money This is an incentive payment is cash or a gift to retailers to push the manufacturer brand at so many rupees per article sold. This is an expensive method. (M) Sales Contest It is devise used to stimulate and motivate distributors, dealers an their sales staff. Each seller is made to feet that he has some chance of winning and thus participates in promoting the sales. (N) Sales Force Promotions Personal selling is the most important method of sales promotion. To make if effective sales force promotion is felt necessary. The tools are bonus sales force contest, sales meetings, salesmen's conferences etc.
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(O) Bonus to Sales Force A quota is set for a shorter period. Bonus is offered on sales in excess of the quota. It is an established fact that salesmen sell more when they are given a target. (P) Sales Force Contest Sales force contest are announced to stimulate company salesmen to redouble their selling interest with prizes going to the top performers. The competitive sprit in men usually responds to this method. (Q) Sales Meetings and Conferences These are conducted for the purpose of educating, inspiring and, rewarding the salesman. New product and new selling techniques are also described and discussed. Sales Performance Objectives When a salesman has been selected, hired, placed, inducted and trained for his job, he is entitled to know from time to time how he is measuring up to expected standard of job performance. Systematic performance appraisal serves also an check on the success of recruitment, selection, training and placement procedures, The performance of a salesman affects the success of personal selling efforts and net profit of the company. Therefore evaluation of performance of the salesman becomes necessary. It should cover the evaluation of salesman's personality, knowledge and motivation. The performance of the salesman can be judged from the following: The salesmen's reports such as call reports, expenses reports, report on new business, report on lost business, a periodic report on local business and the sales managers personal observations. For evaluation of salesman the following methods are adopted. 1. Salesman to salesman comparison. 2. Current to past sales comparison. 3. Sales territory potential comparison. 4. Sales quotas. Objectives The main objective of sales performance is to facilitate the planning and control of sates operations. Other objectives of sales performance are as follows: 1. To improve market coverage and avoid losing order to competitors. 2. To reduce selling expenses ratio. 3. To coordinate personal selling and advertising efforts more effectively. 4. To built salesmen's interest and morale. 5. To improve salesmen performance evaluation. 6. To allow salesmen to spend more time with customers and less time on the roads. 7. To ensure greater regularity of calls upon customers and prospects. 8. To improve customer service in general.
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6. INDUSTRIAL PSYCHOLOGY
MEANING Industrial psychology is of recent origin and it tries to apply psychology to industrial problems. It is said that industrial conflicts are essentially economic involving questions of wages, hours of work promotion etc. and psychology has very little to do with economic problems. Industrial psychology means application of psychology to industry. It is primarily interested in human happiness and welfare and secondarily in human efficiency. It ultimately recognises the association the association between human happiness and human efficiency. It seeks to make industry more efficient but it firmly believes that industrial efficiency can be achieved only by considering the maximum well-being of human element in industry and never by sacrifice of human value in industry. It is closely connected with human factor throughout industry. It deals with worker as a living mental organism having flesh and blood and not as a blind lifeless machine. Some of the main definitions of industrial psychology are as follows. Blum defines industrial psychology as, "Industrial psychology is simply the application of psychological facts and principles to the problems concerning human relations in industry". Harrel defines industrial psychology as, "It is the study of people at work in industry and business". From the above definitions it is clear that industrial psychology is the branch of psychology which studies human behavior in industrial circumstances. It studies physical as well as mental aspect of work, behavior of the people and the relationship of work and job satisfaction. SCOPE Industrial psychology includes almost the entire working population. The subject has a wide application. It is concerned with the physical aspect or the environment of work. It is primarily a study of principles and behavior of human relationship. The relationship between worker and his work, the worker and his boss, the worker and his follow workers and the worker and the management. Industrial psychology wants to acquire better understanding of individual and group behavior at work and better control of the relationship between worker and worker, worker and management, worker and boss, worker and his work. If these relations are good workers are satisfied and we have a high employee morale. OBJECTIVES OF INDUSTRIAL PSYCHOLOGY The ultimate objective of industrial psychology is, of course, high productivity or industrial efficacy. But the primary aim of industrial psychology is not merely to obtain greater output but to give the worker greater ease or comfort at work i.e. mental and physical which means job satisfaction. Industrial psychology has the following objectives. 1. Personal Selection Industrial psychology tries to find out how a suitable individual can be sheeted to perform a particular task. If this is done the work gets a correct worker and the worker himself gets the work done he can do the best. 2. Care of Workers Health The objective of industrial psychology is to discover the ideal conditions in which the best mental and physical health of the worker can be maintained. If the worker does not have good mental and physical health, the worker cannot work satisfactory.
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3. Protect Economic Interest Mental and physical health can not be maintained unless a workers economic interest is secured. If he is un-certain about his income he cannot be encouraged to give his best. Industrial psychology evaluates the efficiency of the worker and determines adequate salary. 4. Search for Proper Method of Work One of the important cause of accident in factories is the improper method of work, which creates fatigue and boredom. Industrial psychology finds out proper methods of work so that causes of accident are reduced and fatigue and boredom is reduced to the minimum. 5. Reform of working conditions It is the task of industrial psychologist to find out the ideal conditions in which the highest efficiency can be attained. The important working conditions are adequate and proper lighting, proper ventilation, absence of noise, periodical rest, canteen arrangement etc. 6. Reform in Machine The worker and the machine are equally responsible for number of accident and amount of fatigue. Prevention of accidents and reduction in fatigue can be achieved by proper designing of machine. The industrial psychologists can give useful suggestions in the improvement of machine and tools. 7. Humanistic Approach Psychological studies have established that human relations in industry cannot be good unless a humanistic approach is adopted, industrial psychology tries to improve the relations between the management and various levels of workers giving humanistic approach. 8. Reform in Human Relations Industrial psychology tries to suggest proper and cordial human relations between workers and management. UTILITY OF INDUSTRIAL PSYCHOLOGY Progress in the field of industry depends not only on advances in technology but also upon the friendly and pleasantness of human relations. Industrial psychology is the study of people at work and is concerned with the entire spectrum of human behavior its' people is the entire process of managements dealing with people at work. There is hardly an area in which can not play its role. It is said that the management of personal now a days is more a problem of psychology than of economic. Industrial psychology is a useful aid to the efficient management of people at work. Industrial psychology is useful in the following areas of management. 1. Recruitment of personal The importance of psychological factors for proper recruitment selection and placement can not be over emphasised because appropriate metaling of job requirement with the employee's abilities lead to reduction in the cost of hiring, supervision and production. The industrial psychologists makes an important contribution in the field of job analysis standardised application from scientific serrening of applications, use of psychological tests for vocational fitness etc. Thus psychology helps in recruiting the right man to the right job. 2. Selection & Placement Right man should be selected for the right job and industrial psychology helps in this efforts. It develops various devices such as interviews and psychological tests in order to achieve the
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objective of the selection. It also helps the placement of workers at different jobs. Proper placement reduces the problem of in discipline and inefficiency. This is possible only with the help of psychology.
3. Promotional Schemes Why should a worker be promoted or transferred of discharged? These employment situations should be based on abilities usefulness and seniority. Performances appraisal is one of the psychological techniques to recognise the people's ability. Psychology helps in this regard. 4. Motivation Psychology assumes that the causes of different types of human behaving in industry and business are the needs or motives that drive an individual to behave in a particular way. Industrial psychology problems into behavior of people at work to determine the conditions in which and individual feels motivated and within to work whole heatedly to maximise the productivity. Industrial psychology identifies the financial and non financial incentives to motivate the workers. 5. Prevention of Accident Psychology has provided valuable suggestions not only in the solution of conflicts but also in the prevention of accident. Psychologists have now discovered the kinds of machine that should be designed, the manner in which they should be operated and the plan according to which they should be arranged in a factory. The purpose of this study is to find means of preventing accidents. 6. Maintaining Morale In order to maintain a certain level of production & to improve the quality of product it is necessary to maintain a high level of morale among the workers. Morale is influenced by a large no of psychological factors, i.e. affection, freedom, desire to make sacrifice, proper leadership. The psychologist can give suggestions for maintaining morale. 7. Study of Efficiency In an industry the workers do not have the same degree of efficiency. The psychologists find out which person has the requisite efficiency to perform a particular job. He can be also give suggestions for improving efficiency by removing those obstacles which hinder efficiency working. 8. Creating Proper Leadership The study of leadership is the responsibility of social psychology. In the field of industry the supervisor must not only be an official but also a capable leader so that he can guide the workers properly and encourage them to work hard. Industrial psychologist can tell the industrialist about the person who has such qualities or who Is capable of developing theme. 9. Wages & Salary Determination Industrial psychology helps in determination of wages and salaries of workers. By studying the techniques of job evaluation and merit rating a national wage and salary structure is determine. 10. Solutions to Fatigue & Monotony The most important obstacle in the way of increasing production is fatigue & monotony. Industrial psychology finds out way & means of eliminating them. These suggestions can be of great help in removing fatigue and monotony of industrial workers. TYPES OF FACTORY ENVIRONMENT Factors determining conditions of factory environment can be divided in to two classes.
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1. Physical conditions. 2. Psychological conditions.
Physical Conditions Under physical environment the following factors are very important. They are as follows 1. Lighting The ideal lighting is the day light. But day light changes according to the seasons. Defective light leads to fatigue strain & haddock. In lowers the rate of output and increases spoiled work. In modern factories, natural day light may not be possible. Therefore artificial lighting is to be provided in the factory such as tube light. In lighting two points must be remembered, i.e. there must be sufficient tight to make everything to be seen quickly and dearly and there must be controlled distribution of light which must be pleasant to the eye. 2. Temperature And Humidity Temperature has a great effect on work. Too high or too low temperature may be injurious to the workers and may affect their health adversely. In such as iron-steel where temperature is high, production goes down in summer. In textile industry, on production adequate cooling, heating arrangements should be provided in the factories. It reduces the discomfort. 3. Ventilation Ventilation is an important factor in industrial efficiency. Air stagnation is an important cause of fatigue and in efficiency of labour. The rate of output, sickness, labour turnover and the accident rate are important criteria, reflecting the effect of ventilation. If there is no free movement of air in a well ventilated industry should be call rather than hot. Air should be moving and circulating. Adequate arrangements must be made for free air movement. Fresh air should be injected by mechanical devices. 4. Noise Noise has been defined as unpleasant sound. Continuous noise and vibration constitute important cause of discomfort in the factory. It is true that continuous loud noise has a bad effect on the nerves of man and causes strain. When noise is made by the workers themselves it may not be unpleasant to them. But when noise is made by other people we get irritated. However noise must be reduced. Music does influence efficiency of workers and low background music in the factory can create pleasant atmosphere conductive of efficiency. 5. Other Physical Conditions In addition to these above conditions there are other physical and material conditions which influence ant worker and his work. For example, if there is a good and clear provision of urinals, latrines, bathrooms, refreshment rooms, canteen etc. The workers time in the factory becomes more pleasant. The work place should not be foul smelling, dirty or dusty. PSYCHO-SOCIAL ENVIRONMENT Physical and mental case of work generally go hand in hand and they are closely interdependent. Best atmosphere & conditions of work reach down to the springs of willingness & cooperation which are vital to the employee moral and labour efficiency. Bad working conditions create discomfort and lead to mental reaction in the form of disharmony, disaffection, conflict and frustration. As a result workers develop grudging and non cooperative attitude. If factory atmosphere is bad, we have low employee morale. The result is friction between worker and management. Disaffection may have many causes but the result is only one and that is unhappy workers and poor work. Mental health is the state of mind where in a person is well adapted. He possess
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emotional stability, sound nerves and sound mind. Mental attitude of the worker towards the working conditions and the supervisor is probably the biggest factor governing employees efficiency. Efficiency engineers should translate these conclusions of industrial psychology in to practice and the psychologists and engineers must complement each other and ensure maximum cooperation while devising man-machine organisation. Social environment is also an important factor influencing labour efficiency. In every organisation we have side by side with formal organisation and informal organisation also in the form of a workgroup haying unwritten rules, conventions, understanding etc. Workers develop a sense of belonging to their group, they have common ideas, they adopt common purposes, they choose common leaders. Thus we have group psychology and efforts of group should be diverted in right direction and management should secure maximum group cooperation as well as teamwork by correct motivation. In short man is the creature of environment of the product of environment and therefore influence of environment can determine the productivity and efficiency of the employees. Of course management is responsible for creating physical mental psychological and social environment.
PSYCHOLOGICAL ENVIRONMENT 1. Behavior of Boss A Workers mind is very susceptible to the behavior office boss. If the behavior of the boss is desirable and good the worker enthusiasm and interest in his work is maintained but 'if his behavior is bad and in considerable, it can lead to conflict and unnecessary tension that has the worst effect upon the production. Senior officials and employees who are in the habit of constantly haranguing and bickering with their staff are very often faced with continuous conflict and non-cooperation. Employees are not inclined to respect work for people who are irritable, highly inflammable, working under a considerate individual not only keeps the worker happy but also inspires him to work more and more better. 2. Mutual Relations of Workers One of psychology conditions of working is the nature of the relations that exists between the workers themselves. Better results are obtained if the workers have happy relations. If the relations of the worker are not alt that can be desired, work suffers. 3. Security in Profession If the workers is confident that he is secure in his job, then his work shows definite improvement. In a profession that offers no security of employment a worker cannot work with enthusiasm or with his mind in the work. Hence a profession must offer security of future employment. After a certain pre-determined period of service has been completed, the worker should be made permanent. Besides, the security of profession, insurance, old age pension, accident benefit makes the worker to more. 4. Incentives Motives have an important place in the life of man. In the absence of motive no individual can either work hard to anything to better his lot in life. Inspiration is necessary in the form of various kinds of incentives such as increase in wages, promotion, bonus etc. Incentives are now an important part of any industry. In most professions an individual is promoted to a senior position if he shows satisfactory work. 5. Satisfaction of Needs Every worker has some personal and family requirement such as adequate food and housing for his family and money to satisfy his other reasonable needs. Besides this, there are certain needs
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that faster self respect and these, too cannot be neglected. The management has to initiate and finance certain scheme of labour welfare that involve some expenditure, but which provide many direct and indirect benefit to the worker. The needs being fulfilled, the workers inclined to respect and obey their employers. They have confidence in their employers and thus there are never induced to work contrary to the interests of their employers.
Importance All the above mentioned physical and psychological conditions of work in factory have considerable importance for commerce and industry psychologist have now seriously drawn the attention of the industrialist to this aspect. It is necessary not only with regard to economy gain but also with regards to humanity that the worker should have opportunity to work in beneficial conditions, both physical and psychological workers being part and partial of the future of the nation, the govt. should also take steps to have such conditions created. When pleasant atmosphere is in existence in the industry, the conflicts are materially reduced and the production materially increased with the result that the employer, the employee and the state all benefits. MOTIVATION IN INDUSTRY The primary task of a manager is that of maintaining an organisation that functions effectively. He must see that subordinates work efficiently and produce results that are beneficial to the organisation. The organisational goals can never be achieved without subordinate's willingness to put their best efforts. Here arises a problem of motivation. Motivating a worker is to create a need and a desire on the part of the worker to better his present performance. Meaning Motivation makes a person active in a particular way. It is an inner impulse causing man to action. A person works to satisfy his needs. His needs are the cause of action and motivation is a process of causing to realise these needs. Motivation is defined as, " A process of stimulating people to action to accomplish desired goals", by W.G. Scot. Motivation can be defined as, " A willingness to expend energy to achieve a goal or rewards", by Dale Beach. From the above definitions it is clear that, motivation is an internal feeling. In motivation a person is totally motivated and motivation causes good directed behavior. TYPES OF MOTIVATION Motivation is concerned with insuring the man to work to get the best possible results. It may be done by two ways. 1. By positive motivation and 2. By negative motivation. 1. Positive Motivation Positive motivation makes the workers induce to do their work in the best possible manner, 'they can and improve their performance. Some thing valuable is offered to a person. Better facilities and rewards are provided. These facilities and rewards may be financial and non-financial such as pay-rise, bonus scheme, praise, appreciation promotion, participation in management etc. Monetary incentives provide the worker a better standard of living while non financial incentives satisfies the ego of the worker. 2. Negative Motivation Negative motivation aims at controlling the negative efforts of the workers and so inducing the man to work positively in the interest of the organisation. It is based on the concept that If the man fails in achieving the desired results he should be punished. .Punishment, fear
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of loss of job are some of the methods which directs the man in the desired results he should be punished. Punishment, fear of loss of job are some of the methods which directs the man in the desired direction, under this method man works in fact and tend to produce minimum enough to get by safety.
Importance Motivation is an important function of management. Motivation is getting the members of the team to pull weight effectively, to give their royalty to the group and organisation to carry out properly the activities allotted. Motivated employees are the real assets of any organisation. All administrative action loses its point unless the members of the enterprises are willing to contribute their efforts for the fulfillment of their assigned task. The important of motivation in an organisation can be summarised as follows 1. High Performance Motivated employees put higher performance as compared to other employees. The high performance is a must for an organisation and motivation is a vital requirement for high performance. 2. Low Employee Turnover And Absenteeism A motivated employee stays in the organisation more and their absenteeism is quite low, high turnover and absenteeism is reduced considerably. 3 Acceptance of Changes The changes in an organisation are an usual phenomenon. When changes in an organisation are introduced, there is a tendency to resist them by the employees. If workers are properly motivated they accept those changes with rear and enthusiasm and support their proper implementation. Methods for Motivation Management can employ a variety of techniques to motivate his staff. Some important techniques are as follows 1. Monitory techniques This technique is based on the popular belief that a man works for money, incentives like more pay, benefits, security of job, condition of service etc. are some examples of monetary technique. 2. Job-Based Techniques These techniques are bases on social, human and psychological beliefs. Job simplification, job rotation, job enlargement, job enrichment, freedom in planning for work. sense of recognition etc. are some of the examples. 3. Leadership Styles Leadership styles or supervisory techniques have also a great rote in motivation of employees. Authocrativ, democratic and free-rein techniques of management must try different supervisory styles in different circumstances for different employees. 4. Group-Based Techniques According to Herber Bonner Motivation is not wholly nor even primarily an individual variable certainly its force and direction are functions of the social situation in which a worker works. Management should foster group consciousness and cohesiveness among employees by laying down general norms and guidelines of work for the group as a whole.
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5. Sensitivity Training This is a technique training given to group of managers so that they behave with and motivate their subordinates better sensitivity training makes the manager to understand themselves better, becoming more open minded and cultivate a systematic approach towards the problem of motivation. Thus a trained manger is supposed to be more consistently able and willing to communicate with his subordinates and inspire them to contribute their best. Motives and Incentives All human activities are motivated by certain instinct and desires. In simple work-a-day life of ordinary industrial employees motives plays a very impart. The most ordinary motive for any employee is to earn money in order to support himself and his family. Ordinarily monetary gain is a powerful motive for any worker. Prestige and social status are also powerful motives and a worker will accept even a low paid job if it brings prestige and honor to him. It is commonly believed by the employers that the only motive for workers is the monetary motive. They believe that anything can be achieved by giving more money to workers. There are some instinct such as fear, anger, hate, love, pride etc. Which are equally powerful in motivating the workers. The management should remove the conditions which may give rise to such feelings and create the feelings of love and pride. Incentives just like motives play a very important part in workers relation to management. They too have a direct influence on production. Increased wages do serve as an incentive to increased production. Incentives by way of payment according to results, sliding scale of piece rate, extra bonus payment for extra work. double wage rate for overtime work etc. may increase production in long period. Any incentive to be fruitful should be of real advantage to the workers. Any scheme of incentives which secures voluntary cooperation of workers will be the most effective increased production cannot be achieved by making the workers work above their normal working capacity or over straining the workers: It is bound to be harmful to the workers and the organisation. It is a fact that monetary incentives do not lead to increased production in every case. The best method of increased production is by approaching the workers with a broad-mind; discussing with them freely and asking them to express their options on production. HUMAN BEHAVIOUR The quantity and quality of human resources are modified by such environmental factors as education, training and development. Well educated, well trained and highly developed personnel are more important than capital, national resources foreign aid, through whose creative efforts the goals of an organisation my be achieved. The handling of physical, material and financial resources is quite different from that of human beings because the tatter are not standardised interchangeable or passive. Human beings differ from one another in their basic mental abilities, personality, motor, abilities, interests, skills, intelligence attitudes, aspirations, energy, education, qualification, training experience and behaviour. "The wonder of wonders is man" says Sophocles. Man has infinite capacity to think, to develop, to create, to invent, to feel, to love, to give, to kill, to respect, to hate, to analyse or to destroy. Because of these trails and qualities human beings are complex in their behavior and in their psychological make-up and when they interact with one another in a group or an organisation, this complexity is multiplied. The performance of human beings and their behavior when engaged on a particular job in influenced by intangible psychological and social factors such as family breeding, education personal likes and dislikes emotions, job conditions, the welfare facilities and privileges available to them while at work, recognition of they receive and above all job satisfaction and the material rewards or punishments they receive. To deal with them effectively, it is quite difficult and challenging job for the personnel manager Human beings have to be handled with great care.
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Modern management has been increasingly aware of the fact that human factor is the most important of all factors of production. The management should have the pertinent and basic knowledge about human behavior. The knowledge is the first step in developing relatives.
INDIVIDUAL DIFFERENCES Individual differ from each other no individual is never like another in each and over, respect. Each one has his own peculiarities which present him as a separate individual from the others. The history of individual differences is quite an old one. The ancient people used to distinguish heroes and ordinary men. But the ideas of individual differences in the present form came to us when the new type of tests were developed through these tests light was thrown on individual differences in various fields. The major areas in which individuals differ from each other are as follows 1. Differences in Intelligences Level Individuals differ in intelligence test. Some individuals are super normal (I.Q. above 120) some are idiots and imbeciles (I.Q. from 0 to 50). The fact is that individuals differ in their mental capacities and hence there are remarkable differences in their behavior. 2. Differences in Physical Development Individuals also differ in their physical development some individuals are short, some are fat, some are lean and thin. Even the heights of all individuals of the same age is measured, then it will be only a few individuals who will be either too short or too tall. 3. Differences in Achievement There are differences in individuals regarding their achievement abilities. This is on accounting of the difference in the various factors of intelligence and the differences in previous experiences or interests. 4. Differences in Attitude Individual differ in their attitudes towards different people or institutions. Some individuals consider the laws of society as good and some feel that they are bad. Different individuals have different attitudes towards their authority. 5. Differences in Personality Individuals differ in personality also. The differences in personality are dependent on personality traits. 6. Differences in Motor Ability 'Individuals also differ in motor ability. At every age level differences in motor ability are visible. Some individuals can perform mechanical task with ease and comfort while others, even though they are at the same level, feel much difficult in performing these tasks. 7. Differences on Account of Sex Individual differences are also found in men and women. Women are more delicate while men are more sturdy. 8. Racial and National Differences Individuals differ from each other on racial and national ground. Some belong to Dravidian an race some belong to Aryan race. Differences are also found in various types of activities among individuals belongings to different nations.
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9. Social Differences Among different individuals we find social differences as well. There are some children who are timid and shy as soon as a member of some other family comes to their home they hide themselves while there are other children who become friendly with stranger without any hesitation. Children coming from higher social level families are not only superior in health but also in intelligence and achievement. Children of such families are in general more health and developed. 10. Differences in Economic Status Individuals coming from high income group are more intelligent and their I.Q. is more than 120 while the I.Q. of low income group individuals is near about 95. 11. Emotional Differences Individual differ in their emotional reactions to a particular situation. Some individual are irritable by temperament and they get angry very soon. There are other who are of peaceful nature and do not become angry easily. 12. Differences in Education Some individuals are educated while some individuals are uneducated. Educated individuals have more reasoning power than uneducated individuals. 13. Differences in Qualifications Some individuals are highly technically qualified while some individuals are not technically qualified. 14. Differences in Experiences Some individuals are experienced while some are inexperienced. Experienced individuals can pickup easily for jobs. INDUSTRIAL FATIGUE Meaning Fatigue is one of the most significant problems before industrial engineers because it affects the workers muscles, nerves and mind. It is a reduced capacity for further work as a consequence of previous continuous activity. It is the natural outcome of continuous work reaction on body mind and nerves. It is negative appetite for work. Fatigue is synonymous for tiredness. It does not arise solely from excessive physical and mental efforts on the job. It will be greater with greater expenditure of effort, either physical or mental. Types of Fatigue Fatigue in industry refers to four related factors i.e. muscular nervous. mental and boredom. These can be grouped under two head i.e. physical fatigue and mental fatigue. 1. Physical fatigue In physical fatigue Physical capacity and efficiency fall down and physical coordination becomes difficult. It is of two types. a) Muscular fatigue It leads to tired muscles. It is purely a physiological strain on muscles which may be due to continuous non-stop physical labour for certain period. b) Nervous Fatigue
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It leads to tired nerves. It is due to emotional conflict and repression of negative feelings about the job or management. It may be due to heavy physical exertion also i.e. mechanical life, noise, vibrations, daily routine etc.
2. Mental Fatigue Mental fatigue is normally apparent after excessive physical fatigue. It leads to tired mind it is of two types. a) Monotony It is a state of mind or an attitude of workers towards his Job. Which is caused by performing repetitive task. The symptoms are absence of desire to work, lack of interest, and concentration desire to rest etc. It results in worry, tension, irritation and memory falling. b) Boredom It leads to emotional dislike of work. It denotes a lack of interest in the task assigned to a worker. Workers become dull and inactive. If a job is of routine character boredom is created. Boredom can be removed allowing the worker to change from one operation to another. Cause of Fatigue Industrial fatigue may be due to several causes. The important reason of industrial fatigue are as follows 1. Long working hours or long working week without suitable rest pauses. 2. Bad plant layout such as lighting, ventilation etc. 3. Faulty layout and design of machines & equipment. 4. Inconvenient and bad posture at work i.e. bench standing, bending position etc. 5. Meaningless, monotonous or tedious job. 6. Repetitive or routine work. 7. Unfavorable personal factors i.e. bad nutrition, bad health, poor family life. 8. Lack of adequate space for the worker to move freely. 9. Environmental factors such as excessive noise, poor lighting (illumination) improper ventilation. 10. Lack of proper training leading to unnecessary movement. Effects Of Fatigue Any type of fatigue causes physical, mental or nervous tiresomeness. It is nature's device signaling rest. All work requires rest. If rest is denied tiresomeness occurs. It represents a decline of output for a given level of effort. Following are the consequences or indicators of fatigue. 1. It leads to increased number of accidents which may cause partial or total disability or loss of human life also. 2. It leads to low rate of output i.e. diminishing return. 3. It increases wastage and spoilage because when a worker is tired he cannot give proper attention and concentration to his job. 4. It also reduces quality of output. 5. Fatigue leads to higher rate of absenteeism. 6. Fatigue can create damages to machinery and equipment or machine breakdown creating further loss in production. Methods to Reduce Fatigue The management must adopt concrete measures to eliminate or minimise the adverse effects of industrial fatigue on the business enterprise. By adopting the following methods industrial fatigue can be reduced.
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1. Ideal length of working hours and working week must be established. In this connection ideal working day is of 8 hours and ideal working week of 5 days must be established. 2. Rest pauses within working day is necessary. It helps the worker to regain the lost energy. After every 40 minutes work, we should a rest pause of at least 2 to 5 minutes. There should be a lunch break of one hour and a tea or coffee break of 15 minutes. Rest pauses should be neither too short nor too long. 3. Comfortable work environment and working conditions can be created in the industry i.e. Arrangement for maintaining the correct temperature, proper ventilation, proper lighting, control over noise, proper seating arrangement be provided. 4. Healthy working conditions can be created in the industry. Proper ventilation, sufficient light, proper room temperature, medical facilities, adequate rest, food, canteen, latrine, music, garden etc. All these things help to fresh the worker. 5. Work study and particularly motion study can be carried out which can help the management to reduce stress and strain. 6. Proper plant layout, material handling designing of machine, equipment, be done to suit the workers need. 7. Job enlargement and job rotation in the industry may be followed which can reduce boredom. 8. The management must keep good relations with the workers and at the same time the workers attitude must be favorable to management i.e. respect for and confidence in the management. 9. There should be arrangements for counseling the workers who are upset over certain personal matters. They should be helped to solve their problems. 10. Workers should be given proper training to reduce unnecessary fatigue. In short, any measure to provide case of work physical or mental car, ensure reduction of fatigue. If the management adopts the above methods to reduce industrial fatigue, it will increase output, profit, wages etc. At the same time decrease in sickness, absenteeism, labour turnover and spoiled work.
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LIST OF SEMINARS
UPTO JUNE 2002
CHEMICAL TECHNOLOGY 1. Emerging role of the paint industry in improving human health 2. Role of software in Chemical Engg. 3. Xylitol Technology CIVIL ENGINEERING 1. Advanced composite materials an alternative to reinforcement, tendons and cables 2. Drainage problems related to irrigation in Maharashtra 3. Fly ash sand lime brick - an alternative walling material 4. Latex modified SFRC beam-column joints subjected to cyclic loading 5. Reinforced earthwork approach embankment using kologrid for rob at Murtijapur 6. Reinforcement detailing in non engineering and engineering earthquake resistant structures 7. Simplified CPM/PERT simulation model 8. Vaastu-shastra & its importance in residential building COMPUTER ENGINEERING 1. Groupware technology 2. Parallel processing in LINUX ELECTRICAL ENGINEERING 1. Application of superconductivity in electric power system 2. Cardiac pace-maker 3. Design of voltage regulator 4. Eco-friendly energy sources for rural development 5. Electric earthing and shock 6. Emission levels of a two-stroke S.I. Engine with in-cylinder fuel injection 7. Energy conservation in industry 8. Energy saving in home lighting 9. Future trends in technology for locomotive traction 10. HVDC transmission lines 11. Hydrostatic transmission for shunting locomotives 12. Internet & netsurfing 13. MHD-power generation 14. Mini Romag generator 15. Recycling of plastics 16. Selecting transformers for hydro power plants 17. Solar energetics in space 18. Substation ELECTRONICS ENGINEERING 1. Computer numerical control 2. Electronic multipoint fuel injection system 3. Fibre optical sources & detectors 4. Logic analyzer 5. Operation & temperature maintenance of Xerox Machine
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6. 7. 8. 9. 10. 11. 12. 13. Programmable logic controller Radar system Remote control system Satellite tracking system Smartcard ASIC Surface mount tech. Wireless app protocol Wireless network communication
POLYMER TECHNOLOGY 1. Du pont fibre 2. Effect of electric field on structure property of polymers 3. Fluidized bed for catalytic polymerization 4. Manufacturing of PU foams 5. Polymers used in artificial joints 6. Reactive extrusion 7. Self healing plastic 8. Shoe sole manufacturing tech 9. Thermoplastic composites TEXTILE ENGINEERING 1. Application of it in textile 2. Bale management 3. Energy saving through spindle oil in ring frame 4. Fabric quality inspection 5. Furnishing & industrial application 6. The ABC of denim production PRODUCTION, MECHANICAL & AUTOMOBILE ENGINEERING 1. A solar chimney power plant 2. Air car 3. Air caster-a new approach in material handling 4. Aluminium space frame 5. Automated hydraulic control systems 6. Automatically guided vehicle system 7. Automobile air conditioning 8. Basic technology & drive system of industrial robots 9. Benchmarking 10. Buffering of serial production line 11. CADCAM-Revolutionising the aircraft industry 12. Caged ball technology 13. Catalytic converter in diesel engine 14. Components of missile 15. Computational fluid dynamics 16. Crash safety 17. Cryogenic treatments of different metals 18. Cybernetics in industry 19. D.M.D. Technique 20. Design innovation through digitalisation 21. Droplet welding 22. Electro-hydraulic proportional control valve
Other Publications 79
23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. 41. 42. 43. 44. 45. 46. 47. 48. 49. 50. 51. 52. 53. 54. 55. 56. 57. 58. 59. 60. 61. 62. 63. 64. 65. 66. 67.
Emission levels of two stroke S.I. Engine Energy conservation in industries ERP - An Indian case study Experimental setup & assembling of car for lab. Development Flying train Flywheel spin in electric vehicle Future trends in technology for locomotive traction Green refrigeration Helical gear manufacturing by extrusion Holography How to achieve fuel economy in automobile How to run a small scale industry Human factor in product design Hybrid electric vehicle Indian industry in a liberal market Industrial corrosion & its prevention Industrial research & development Internal controls Internet and netsurfing Job analysis Liquid-fuel rocket engine LPG as alternative fuel for two wheelers Machine vision system Maintenance management Motivation Networking technologies Occupant safety restraint devices in automobile Physical facilities Poka Yoke Productivity improvement Rapid prototyping Recycling of plastic Risk and forecasting Robotization of forging industries Round printing machine Sensotronic brake control Solar power vehicle Sophisticated programmable industrial robotic arm Statistical process control Strategic about manufacturing Study of pull boring machine Supply chain management & its implementation by ethics value system Technological options for future manufacturing The global positioning system Waterjet cutting
Printed Format 68. Re- Engineering A Potent Tool in Managing Change 69. Challenges to industrial organisation & management 70. Pattern making
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80 Unit 6 71. Vehicular pollution poisoning air in cities 72. Use of plastic as a tooling material 73. Use of robot in automobile manufacture 74. The engine of a sport car 75. Total productivity maintenance (TPM) 76. Screw Compressor bearing failure on process plant 77. Advanced control techniques for automobile exhaust pollution 78. On development of an electronically controlled copying lathe 79. Hydrostatic transmission for shunting locomotive 80. Environmental awareness and aluminium industry 81. Management information system 82. Cooling fans of air cooled DEUTZ diesel engines and their noise generation 83. Automotive emission control 84. Automation of injection moulding machine used hydraulic systems 85. Air oil cooling method for hard turning process 86. Packaging Technology 87. Investigation of factors affecting wear characteristics in rubber - metal sliding contact 88. Industrial psychology 89. Management of change and taskforce approach 90. Managerial effectiveness - key to productivity 91. New turns in thread cutting 92. Precision hole making by deep hole drilling method 93. Pricing Strategy - An introduction 94. Rotary ultrasonic machine 95. Ways towards the heavy duty diesel 96. Industrial problems solving through Japanese techniques 97. Robotisation of forging industry
OTHER PUBLICATIONS
1) MANUFACTURING PROCESS - I Second Year B.E. Production, Mechanical 2) ADVANCE PRODUCTIVITY TECHNIQUES Final Year B.E. Production 3) PRODUCTION PLANNING & CONTROL Final Year B.E. Production / Mechanical 4) INDUSTRIAL ORAGANISATION & MANAGEMENT Final Year B.E. Production/ Mechanical 5) DESIGN OF MATERIAL HANDLING SYSTEM 6) MEASUREMENT SYSTEM T.Y.B.E. Production Rs. 60 /Rs. 40 /Rs. 50 /Rs. 30/Rs. 50 /Rs. 50 /-

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Unit 1

1. MEANING OF ECONOMIC POLICY

1 < E.D. 1=1 1 > E.D.

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