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Personnel Power

Personnel Power
Personnel or Human Resource Management: is the strategic approach to the management of an organization’s most valued assets – the people. Human resource is always in great demand as competent or skilled labor is in short supply. It is important to remember that no one is born with the value of excellence, as the acquisition is gradual in nature and only possible through proper training and one’s own cognitive perception. It is not that people have to belong to the elite group to make their mark in the respective fields. The best leaders and managers often are ordinary people creating amazing results and astounding success. Try some of these golden etiquettes for achieving excellence in the management of human resource: Clear objectives have to be set with the consensus of the employees Recognize the progress Confront problems Manage with flexibility Understand the value of quality Manage time for better results Enhance decision-making skills by delegating authority Master stress Motivate people Think like a winner Pursue a participative style of leadership To achieve the goals of the organization, the HR department will have to reorient itself on the following lines. It is very important that ‘Right people are chosen for the Right job’. During the induction stage, employee attitudes must be shaped in harmony with the culture of the organization. Dynamic training system should be introduced which is supposed to be a continuous process rather than a sporadic exercise. Quality of Work Life: Organization should ensure satisfactory quality of work life in order to minimize the sense of alienation, found in the workplace. It should contribute to an atmosphere to improve self-discipline, self-motivation and self realization for the purpose of production optimization in terms of both quantity and quality. The presence of a fair performance appraisal system will facilitate the growth prospects of employees in terms of career advancement and development. Fair Compensation: Institutions must work out a fair compensation package for all categories of workmen so that they may be able to receive the living wages instead of subsistence-level wages. The accent should be on production and productivity, without any compromise. Opportunities are aplenty, particularly for experienced personnel as the industries offer wide job prospects for the prospective candidates. Now-a-days job hopping is rampant which is a serious issue to be managed. A number of organizations offer bonus in the form of stock that interjects a feeling of oneness, which ensures alignment of interest between employees and the management. Favored position in terms of enhanced performance from the work force is possible only if the management comes down to embrace and lend their ears to certain rational demands form the other end. Security of Employment Increased wages Employee ownership Participation and employment Internal promotions Information sharing Incentives etc., The personnel function can 1) Attract attention to indicate the importance attached to management’s process and the various policies, practices and systems that support the process. 2) Provide necessary information and expertise on best practices in rival companies to benchmark the process and provide with analytical support for diagnosing and recounting solutions to problems arising in the employee management relation. 3) Engage in business decisions and accelerate change that is consistent with the underlying values of the company. Note: The laws and matters relating to wages and bonus come under the purview of the Ministry of Labor and Employment. The Minimum Wages Bill was passed by the Indian Dominion Legislature and came into force on 15th March,...
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Factors of External Environment of Business

Factors of External Environment of Business
Factors of External Environment of Business What do you mean by Business Environment: The sum total of all things external to firms and industries that affect the functioning of the organization is called Business Environment. Elements of Business Environment 1.       ECONOMIC 2.       SOCIAL 3.       CULTURAL 4.       POLITICAL 5.       LEGAL 6.       TECHNOLOGICAL 7.       DEMOGRAPHIC 8.       GEOGRAPHICAL 9.       ECOLOGICAL 1. Economic Environment This refers to all economic factors that influence and affects the very survival of an organization. Can be classified into ·         Economic factors affecting demand ·         Competitive forces Economic factors affecting demand The existence of an organization depends on the demand for its products or services. The customers’ ability to buy and willingness to pay determine the demand factor. The buying power is determined again by ·         Employment ·         Income taxes ·         Saving and ·         Prices The money acquired by an individual through employment is utilized for paying taxes which is the first priority and then comes saving or spending. In developing countries like India, much importance is attached to the habit of saving in the form of insurance policies or mutual fund deposits or investment on immovable assets. This makes the economy strong and stable even during times of recession, whereas we witness the economy of some developed countries entirely shaken when there is an economic depression. Sub Prime Lending Sub prime lending may prove to be disastrous for a growing or grown nation when the money is lent by the banks to third parties without proper securities or collaterals. While the initiative is intended to increase the growth rate or GDP, the end result may not live up to the expectations when the money is parted to individuals or firms with poor financial credentials. Disposable Income Disposable income also decreases when the tax rate increases and his/her ability to buy is reduced. Equally important is the willingness to by because the fact that an individual has the ability does not mean that he or she will buy. Willingness is affected by the preferences for products and the expectation about future factors like the price fluctuation, increase in one’s own income, general economic trend and so on. Competitive forces Firms have to first survive in order to succeed in the market. To accomplish this they exert competitive force on each other through one or the other following methods. ·         Price cutting ·         Promotion-advertising, personal selling ·         Design, feature and packing ·         Number and type of customer services offered give a cutting edge to firms competing in the race. 2. Social and Cultural Environment The social environment depends upon the ·         The class structure ·         Mobility ·         Nature of the social organization and ·         Development of social institutions People always have the unending desire to move from one occupational category to another and this is the main reason for high job turn over in IT industries for various reasons like pay, promotions, job satisfaction etc., This is the same reason which can be attributed to the failure of many good projects that go underway due to lack of continuation of the same initiative with which it was started. The above said process is more prevalent in urban societies than rural where scope of mobility is much the less among farmers, artisans and those engaged in traditional crafts and cottage industries. 3. Political Environment A smart manager has to be on tenter hooks to gauge the trends in political scenario that directly or indirectly affect the functioning of the firm. The political weather is highly unpredictable and may be classified into ·         Long-term changes ·         Quick changes ·         Cyclical changes ·         Regional changes Now-a-days we see that the economic depression in...
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Monetary and Fiscal Policy

Monetary and Fiscal Policy
Monetary and Fiscal Policy Countries worldwide are concerned about the following issues while setting up monetary and fiscal policies; namely, the appropriate level of aggregate demand and the best blend of monetary and fiscal mix. Monetary policy focuses on the movement of money within the country, the inflow of foreign exchange and varying interest rates fixed by the Reserve Bank. Fiscal policies are concerned about stabilizing the economy and handle public revenue, expenditure and debts. The pattern of resource allocation and distribution of income affect the drafting of fiscal policies. Monetary policy is very well restricted by the government’s decision on public expenditure and taxation. The tactical combination of both will help determine the composition of GDP. The purpose of monetary policy: The purpose of monetary policy is to ensure availability of credit to the productive sectors of the economy and also regulation of money supply. Econometric models, which use statistical techniques to assess the impact of monetary policy changes on the macro economy, usually find that changes in money supply have a major impact on production in the short term, with greater impact on the proportion of nominal GDP in terms of wage and price inertia as time progresses. Annual budgets are always a nightmare for the common people as tax imposed on commodities has a say on their disposable income. For example, if the price of crude oil is on the rise, the government can do nothing but to increase the fuel prices. Inflation leads to an increase in interest rates charged by banks nationalized or private, affecting small-and medium-scale business firms. Some terminologies related to monetary policy: Let us get ourselves familiar with some of the terminologies in connection with monetary policy. This may help you to understand the subject in a better way. Repo rate: Rate at which RBI lends to other banks against securities Reverse Repo Rate: Rate at which RBI borrows from other banks Cash Reserve Ratio (CRR): Amount of money to be set aside by the banks with RBI against their deposits Statutory Liquidity Ratio (SLR): Percentage of bank funds to be maintained in government securities Capital Adequacy Ratio: Capacity of banks to work within the time line and risks. Bank Rate: Minimum interest rate at which the Central Bank offers commercial loans to other banks Inflation: Steady rise in prices of commodities Money Supply: Sum total of money circulating in the economy Money flow, policy variables and liquidity conditions have a direct bearing on savings, investment, consumption, inflation, employment and GDP.The ability of a country to improve its standard of living over time depends almost entirely on its ability to improve technology and capital used by the workforce. In short, the budget deficit should be reduced, which guarantees the rate of national savings and increased purchasing power parity (PPP). Main objectives of monetary policy: There have been changes in the objectives of monetary policy from time to time and vary from country to country. Sometimes the monetary policy adopted by a country may have different objectives, which are contradictory. In such cases, the country may have to compromise by setting the priorities. Some of the main objectives of monetary policy: • Price stability • Exchange rate stability • Full employment • High rate of economic growth • Equitable distribution of income Main objectives of Fiscal Policy: Post the Great Depression of the 1930s, it was well realized that governments should actively participate in economic activities to achieve economic growth and equity, through sound fiscal policies. The purpose of fiscal policy lies in: • Achieving full employment • The maintenance of stability • Increasing the rate of capital formation • Development of a model of...
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