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Operative Functions of HRM

Operative Functions of HRM
Operative Functions of HRM Staffing Staffing is one of the managerial functions. But this function is normally performed by the HR managers for all the departments of the firm. In most organizations, the HR department establishes personnel policies and coordinates the HR functions of all the departments. This function is also called the operative function or HRM function. It includes, amongst others, the processes of hiring, training, compensating, appraising and retaining employees, and attending to their labour relations, health and safety, and equality concerns. Procurement  Procurement refers to a string of activities undertaken by the HR managers for filling the present and future vacancies of the organization. The activities include job analysis and designing, HR planning, recruitment and, finally, the selection of suitable employees. Here, job analysis refers to both the determination of specific tasks and responsibilities connected to a job and identifying the skills, knowledge and abilities required for the job holder. HR planning involves choosing and placing the right person at the right job and at the right time. Recruitment involves gathering a pool of applicants from which suitable employees may be selected.  Lastly, selection involves screening, testing, interviewing and hiring the most suitable employees for the organization. SCOPE AND CHARACTERISTICS OF HRM Development  Development here refers to both employees’ training and management development. HR managers are accountable for conducting and supervising training and development programmes for employees. The very purpose of a training and development programme is to increase the employees’ competencies in their job by improving their knowledge, skills and abilities.  Training and development is widely accepted as a method for enhancing the employee skills, increasing the individual and organizational performance, improving the employee morale, and achieving the business growth and success. Loading… Compensation  Compensation refers to the determination of the pay scale and other benefits for the employees. Establishing and maintaining the pay system of an organization is one of the principal jobs of the HR managers. They must devise ways to ensure fair and equitable pay rates. In addition, HR managers should regularly manage the performance evaluation system of the organization, and continuously design reward systems such as performance-linked incentive plans and bonus and flexible work schedules. Maintenance  The maintenance function aims at retaining efficient and experienced employees in the organization. This calls for creativeHR practices. In this regard, HR managers are responsible for offering a wide range of HR programmes covering occupational safety, health promotion and physical fitness, canteen facilities, recreation activities, transportation programmes, employee suggestion schemes, career counselling and growth for creating a positive work environment. OBJECTIVES AND FUNCTIONS OF HRM Integration  It consists mainly of industrial relations and aims at ensuring good relations between the management and the employees. HR managers have to implement industrial relations programmes that would ensure ethical and fair treatment in disciplinary action, grievance redressal, and career management processes. They should also counsel the employees and the management to prevent and, when necessary, resolve disputes over labour agreements or other labour relation issues. It is to be understood here that the functions of HRM can vary widely from one organization to another, depending upon its nature, size, and objectives.  For instance, a smaller organization may follow a shorter HRM process with a greater emphasis on functions like procurement and compensation and little or no priority for activities like training and development and industrial relations maintenance. On the contrary, large organizations may pursue a longer and more comprehensive HRM process to meet the requirements of both the management and the workforce. WANNA TAKE A HR QUIZ N CHECK YOUR HR IQ? 1. The development and application of employees’ skills and energies to accomplish the goals and objectives of...
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International Trade and Finance

International Trade and Finance
International Trade and Finance What is Trade? Trade is the exchange of commodity and services. International trade represents business transactions taking place at the global level, and it is fundamentally different from domestic trade. Trade at international level demands huge investments, network of franchisees and proficient people to run the show. Many corporate giants are trying to capture Asian markets, especially Indian market, which has become the industrial hub for such economic activities. Economic liberalization has been the focus of many developing countries for the past two decades and this has allowed multinational companies with huge investment potential to enrich the weaker economies. What is International Trade? International trade tries to generate more foreign exchange, which is always good for the economy. Say, if a country has rich resources of petroleum, naturally it will try to sell the surplus to countries not endowed with such natural resources. Because of #demonetisation move, the focus is all the more high on #digital payments as the way forward. https://t.co/V80587CvS4 — EconomicTimes (@EconomicTimes) November 27, 2016 That is why Middle East nations are prosperous and economically independent. The diversity in productive possibilities in different countries is due to the presence of limited natural resources. When a country gets a head start in a particular product, it can become the high volume, low cost producer. The economies of scale give it a significant advantage over other countries, which find it cheaper to buy from the leading producers than to manufacture the product themselves. Barriers for Effective Trade: Every nation must try to specialize in the production and export of those commodities, which are available in plenty and must import such products in the production of which they have a resource deficiency. It should be remembered that there are severe man made barriers in international trade such as, export duties, quotas, exchange restrictions etc.,that hinder the free movement of products. UPI to create a boom in cashless economy. Giving way to the revolution of Digital Payments. Go Cashless Go Digital pic.twitter.com/0ODTrJbSqP — Ravi Shankar Prasad (@rsprasad) November 27, 2016 Nevertheless, it is not also possible for a country to produce domestically every kind of product. In spite of all these restraining factors, global trade is thriving, thanks to the advanced technological aspects introduced in communication and faster means of transportation. Distance is no more a constraint and the world has become one small global village. Foreign Exchange Issues: All domestic transactions, say in a country like India take place in rupees, which is the legal tender in the country. However, in its trade with other countries like USA, Germany, Japan, France and Britain, the payments have to be made in terms of dollars, marks, yens, francs and pound sterling respectively. #Rupee hits record low of 68.86 against dollar – Click to see also ☛ https://t.co/r0M91S8Du8 … #rupeeVSdollar pic.twitter.com/gufuzwlDp3 — Newser.in (@newserindia) November 25, 2016 The mechanism through which payments are effected between two countries having different currency systems is called foreign exchange. It may be also defined as the exchange of money or credit in one country for money or credit in another. Foreign exchange rates can affect relative prices and net exports. A rise in the a nation’s foreign exchange will depress that nation’s net exports and output, while a fall in the foreign exchange rate will increase net exports and output. Because of the significant impact of exchange rates on national economies, countries have entered into agreements on international monetary...
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Export is the Key to Growth

Export is the Key to Growth
Export is the key to growth Export can be in the form of merchandise (goods) or services (invisibles). When an entrepreneur wants to spread out his scope of business activity beyond the territory of his nation it is called export, whence he has to prepare himself to confront the challenges prevailing in the global market. How to go about Export? Business by itself calls for discipline whether you talk about your credit policy, quality of your product or services, on time delivery, payments, fund rotation, human resources management and the like. The taste of success in the domestic market gives you the necessary confidence to spread your wings far and wide. To be a part of the global market, you are expected to imbibe not only more discipline and order but you should be very thorough about the procedures and policies of the country, to which you are planning to export and the various legal formalities pertaining to your business activity. What will be your plan of action if your merchandise is disapproved of its quality after reaching the destination or the shipment gets destroyed due to some eventuality? To combat contingencies we have to have a representative working for us in the chosen place of activity who would report and handle the proceedings. Pre-Requisites for Exporting Goods: How many people do you think who have acquired the desire to export their products have a clear idea about the steps involved in starting an export business, First you have to secure the IEC CODE (import export code) from the DGFT (Director General of Foreign Trade) that comes under THE MINISTRY OF COMMERCE AND INDUSTRY. While exporting you get the following edge over others: Exposure to forex market Exposure to diversified culture Exposure to varied laws and legal formalities Exposure to business risks which you must take up as a challenge Having businesses in various countries is better than having all businesses in one country. It saves you during periods of economic recession. You experience market growth by entering into different and new markets; Asian and European markets are flooded with traders from all around the world since these regions enjoy a locational advantage in the world map and well connected through the sea and land. RBI Policies: Exporters must be aware of the fact that RBI policies are very severe when it comes to foreign exchange. So you should have proper informational inputs from the correct source and your capital has to be invested accordingly. Exploring unfamiliar and exotic markets is very difficult as they are always dynamic. You should see to it that you keep yourself posted with updates on INTERNATIONAL FINANCE, LENDING RATES etc. You can make a small business big and beautiful by adding some flavor to it like, right time to launch your product in the global scenario, people’s preference being given priority by doing some demographic survey, attractive campaigns and of course your unendurable passion for business will do the rest to make your venture a successful...
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The E-Commerce Model

The E-Commerce Model
E-Commerce Business Models – Highly Recommended Internet User Statistics in India: 100 Million unique internet users 25 Million Facebook users 20 Million Youtube users 10 Million tweeters Ecommerce market size: 46520 Crores Role of Trade and Commerce: Trade and commerce play a decisive role in boosting up a country’s economy. An economy is said to expand only when a country concentrates on bringing a radical change in its commercial activities. Needless to say, the invention of computers and computer based services, has revolutionized the industry of commerce, where trading is done online. The emergence of “E-Commerce” is a real benefit bestowed on the traders to sell their merchandise in a popular platform called internet. E-commerce has overturned the history of retail selling market, due to the unanimous support of the consumers. Lifestyle Changes: The changing life styles of consumers have led to the evolution of e-commerce as an appealing alternative to terrestrial retail network. Everything has been made simple and easy. All kinds of services are available for the consumer at a mouse click’s distance. Internet gives him the privilege and liberty to happily surf through the net, from the cool confines of his house, to finalize and order a product or service of his choice. Payment systems are again made easy, through PayPal or credit or debit cards, electronically verified and authorized. So, why would consumers wait in a long queue to avail a specific service or drive down to the market place for purchasing their merchandise anymore, when e-commerce presents them all in a platter at their door steps? The Internet – Virtual Market Place: Internet serves as the virtual market place, where exchange of goods and services are quick and convenient. Many big corporate companies have started selling their products online, to manage the stiff competition posed by other competitors and small online vendors. Online presence is necessary to accelerate your profits and retain your market share. Through e-commerce, you also stand a chance to win over the interests of various sections of a society because of global internet penetration. The following list would give you a fair idea about the extensive penetration of e-commerce cutting through various economic layers. You can compete globally with other big merchants, as this is a virtual market arena, devoid of any geographical boundaries. Your prerequisite would be a computer terminal with high speed internet connection and a valid bank account. Electronic fund transfer through Real Time Gross Settlement and Net Banking, through which you are able to receive and transfer funds immediately. Online business works round the clock, so you are accessible 24/7, that really helps you to increase your sales and thus your profit margins. There is no need for credit sales, until and unless you have a dealer network to which you have to extend credit facilities. Payment of tax, electricity bills, telephone bills are now made online through the internet. Firms are able to cut down their costs, in terms of infrastructure, marketing, holding inventory, customer relationship management, information processing etc. , The highlight is, you also get instant feedback on the price and other features of your product or service, that helps you to employ pricing and promotional strategies. Travel industry, consumer electronics, shipping industry, Companies producing fast moving consumer goods, car rentals and so many other industries are thriving in the web market, thanks to e-commerce. Talking about the shortcomings, I must say that internet has not touched millions of people yet across the globe, to enable them to enjoy the benefits and privilege of this new economic system-commerce may not suit certain sectors of business like perishable food items, where time is an...
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Corporate Philosophy of Management

Corporate Philosophy of Management
Corporate Philosophy of Management CORPORATE PHILOSOPHY OF MANAGEMENT calls for creating a framework of values, beliefs and ethical standards which are considered to be vital for an effective management. They must be embedded in formal and informal philosophical statements which are then communicated to the fraternity of that organization. From a broader perspective, the LEADER has to have a VISION as to where he is heading his company in the next three to four years. Corporate Objectives provide vision as well as direction and map for bold decisions to be taken regarding NEW MARKETS MARKET SHARE PRODUCTS SERVICES etc. , Now the organization is in a position to decide and prioritise the VALUES AND COMPETENCIES it expects from its managers. For example, if the situation favors the business expansion to new markets, say, European or Asian, then an organization has to develop competence in areas like LANGUAGE AND CULTURE, besides marketing and business skills. Different Philosophies of Management: Well, you might have been inspired with JAPANESE PHILOSOPHY OF MANAGEMENT, EASTERN OR WESTERN PHILOSOPHY OF MANAGEMENT t. But what is the fun? If you don’t have A SOUND MANAGEMENT PHILOSOPHY of your own, to simply put it, you don’t have a broad set of principles to back up your management development process which is a generic one. Ideally speaking, you should be able to develop a concrete SYSTEM that is made up of FOOL PROOF policies and procedures; try to develop a professional team of executives who can take up your vision to the next level; these measures will prove worthwhile in the long run. You are left without any choice but to develop “truly” INTERNATIONAL MANAGERS who could transcend nationally and the location of any specific job consideration. This is what Ideal management philosophy means to me, A holistic vision of the future A solid set of principles(values, beliefs) Sound policy definition Management development programmes Autonomy to my work force Always “yes “to new technology Development of women managers Flexible leadership Social responsibility Contribution to the growth of my Country’s economy Strategic Perspective: Major environmental shifts now demand a more strategic perspective from those who manage and lead in organizations; “GLOBALISING” in the quest for major market share brings in new opportunities for growth and prosperity. Organizations are now espousing values that regard people, not as costs to be minimized, but AS “ASSETS TO BE MAINTAINED AND DEVELOPED.” An open systems approach of management is likely to overcome many of the problems created by the piecemeal approach. Instead of looking at management development in isolation, see it as an integral part of a wider organizational system that takes care of the processes through which people working for the firm take care of themselves leading to self...
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