Professional Documents
Culture Documents
SEC-I MARKETING
1) Marketing- According to American Marketing Association "Marketing is the process of
planning and executing the conception, pricing, promotion and distribution of ideas, goods
and services to create exchanges that satisfy individual and organisational objectives."
2) The Exchange Concept- According to this concept, exchange of a product between the
seller and the buyer is the central idea of marketing.
3) The Production Concept- According to this concept, consumers will prefer products that
are inexpensive and widely available.
4) The Product Concept- This concept states that the consumers will prefer products that
offer the best quality, performance or innovative features.
5) The Selling Concept- According to this concept, a company cannot expect its products to
be picked up automatically by the customers. It has to push its products in market by
undertaking selling efforts such as advertising, publicity, salesmanship, sales promotion etc.
6) The Marketing Concept- Marketing starts with determining consumer wants and ends
with the satisfaction of those wants. It sees all marketing activities from the point of view of
the consumer
7) The Societal Concept-Organisations who support this concept, work at a balance between
the three objectives of company profits, consumer satisfaction and public interest. They are
expected to produce goods that not only satisfy the consumers but are also environmental
friendly products
8) Test Marketing- Test marketing means introducing a product in a small segment of the
market. The purpose is to find out whether or not the consumers would accept such a
product.
9) Packaging- Packaging is the process of devising packages. The basic function of packages
is to protect the quality of the product. Now a days packaging has additional promotional
function.
10) Logistics - It relates to physical distribution of goods. Goods have to be transported to
the place of sale from the place of production.
36) Unsought goods-Unsought goods is a product that the consumer is not aware of or a
product that the consumer is aware of but does not want it right now. For example life
insurance, grave stones, cemetery plots etc.
37) Augmented product-Augmented product is a product where the product or the service
provided exceeds customer's expectation. In other words, it refers to additional benefits
offered by the marketer. Such benefits can be after sale service, installations, guarantees,
credit facilities etc.
38) Product Mix-Few firms rely on a single product; instead they sell many products. The
set of all products and items offered by a company for sale is called a 'product mix'.
39) Product Life Cycle-Each product passes through various stages during its life. This cycle
of stages is called the Product Life Cycle.
40) Brand-A brand is a name and/or mark intended to identify the product and differentiate
it from competing products.
41) Brand extension- Brand extension or brand stretching is a strategy in which firm uses an
existing brand name is used to introduce a product in a different product category. For
example manufacturers of Anchor switches have used Anchor name for introducing
toothpaste.
42) Brand Positioning-It is an act of designing the company's offering and image to occupy a
distinctive place in the minds of the people.
43) Brand equity-Brand equity is defined as The incremental value of a business above the
value of its physical assets due to the market position achieved by its brand and the
extension potential of the brand.
44) Price mix-Price is the exchange value of a product. It is the amount of money and/or
other items with utility needed to acquire a product.
45) Price -Price is the exchange value of a product. It is the amount of money and/or other
items with utility needed to acquire a product.
46) Market Skimming pricing strategy- Here the manufacturer charges a high price for his
product when it is introduced in the market. Price is set at the highest possible level.
47) Market Penetration pricing strategy-Here, the manufacturer charges low price for his
product when it is introduced in the market. The primary aim is to penetrate the mass
market immediately and in doing so generate substantial sales volume and a large market
share.
48) Cost plus pricing method/Mark up pricing method-This is the most elementary pricing
method. In this method, the selling price of the product is arrived at by adding a standard
mark-up i.e. margin to the product's cost.
49) Perceived Value Pricing -Nowadays, companies have started pricing their products on
the customers perceived value of the product. The perceived value depends on various
factors like goodwill of the firm, buyer's image of product performance, warranties
provided, trustworthiness and esteem of the firm.
50) Going-Rate pricing-Here the firm charges a price that is based on the price of the
competitors.
51) Marketing Channels-According to william stanton, "a channel of distribution is the route
taken by the title to the product as it moves from the producer to the ultimate consumer or
industrial user."
52) A zero level channel -A zero level channel is one in which there are no intermediaries. It
is also called the direct channel of distribution. Here, the manufacturer sells his product
directly to the consumers.
53) Promotion mix -Promotion mix can be defined as "the element in an organisation's
marketing mix that serves to inform, persuade and remind the market of a product and/or
the organisation selling it, in hope of influencing the recipients feelings, beliefs or
behaviour."
54) Advertising -The American Marketing Association defines Advertising as "Any paid
form of non-personal presentation and promotion of ideas, goods and services by an
identified sponsor".
55) Personal Selling -Personal Selling is the personal communication of information, to
persuade someone to buy something.
56) Sales Management -American Marketing Association defines sales management as the
planning, direction, and control of personal selling, including recruiting, selecting,
equipping, assigning, routing, supervising, paying, and motivating as these task apply to the
personal sales force.
57) Sales Promotions -Sales Promotions are short-term incentives like discounts, samples
etc. to stimulate demand for the product.
58) Consumer promotional tools -Consumer promotional tools are those tools which are
directed towards ultimate consumer.
59) Trade promotion tools -Trade promotion tools are promotional tools directed towards
the intermediaries like the wholesalers and retailers in order to motivate them to stock the
manufacturers brand and resell it to the consumers.
60) Sales Force Promotion Tools- These tools are useful in gathering business leads,
motivating sales force to greater effort and to aggressively push the product in the market to
increase sales.
61) Public Relations -Public relations involve a variety of programmes designed to promote
or protect the company's image or its individual products.
62) Direct Marketing -In direct marketing, companies sell their products directly to the
consumers by eliminating intermediaries from the channel of distribution.
63) Tele Marketing -Here the manufacturer directly reaches the consumer on telephone.
The intermediaries are eliminated from the distribution channels, which reduces the selling
cost tremendously.
64) Service -Philip Kotler defines a service as "A service is any act or performance that one
party can offer to another that is essentially intangible and does not result in the ownership
of anything. Its ownership may or may not be tied to a physical product."
65) Rural Marketing- C.G.S Krishanamacharyulu and Lalitha Ramkrishnan, in their book on
'Rural Marketing' have defined it as, "a function which manages all those activities involved
in assembling, stimulating and converting the purchasing power into an effective demand
for specific products and services, and moving them to the people in rural areas to create
satisfaction and a standard of living to them and thereby achieves the goal of the
organization."
66) Value-engineering- This is a technique to generate cheaper products by substituting
costly raw materials with cheaper ones.
67) Agricultural marketing -Agricultural marketing includes all activities in moving
agricultural products from the producer i.e. the farmer to the consumer.
68) Social Marketing - It refers to the application of basic marketing principles to the design
and implementation of programs and information campaigns that advance social causes.
69) Green marketing- Green marketing refers to the process of selling products or services
based on their environmental benefits. Such a product or service may be environmentally
friendly in it or produced and packaged in an environmentally friendly way.
70) Event Marketing- Event marketing involves designing or developing a 'live' themed
activity, occasion, display, or exhibit such as a sporting event, music festival, fair, or concert
to promote a product, cause, or organisation.
71) E-Commerce- Any form of business transaction in which the parties interact
electronically rather than by physical changes or direct physical contact.
72) Retailing -Retailing includes all the activities involved in selling goods or services to
final consumers for ultimate consumption.
14) Training is the act or process of teaching or learning skill, discipline etc. while
development is a stage of growth or advancement.
15) Coaching- Coaching is guidance and training provided generally by a senior to a new
recruit.
16) Understudy -An understudy is a person who studies another's role or duties in order to
act at short
notice in the absence of the other.
17) Job rotation- It involves shifting the employee from one job to another.
18) Apprentice- An apprentice is learning the trade by being employed in it for an agreed
period at low wages.
19) Vestibule training- Vestibule means a hall. Vestibule training therefore implies training
provided in a hall.
20) Role Playing -Role playing is an exercise or a game in which participants act the part of
another character.
21) Simulation- To simulate is to imitate. Simulation is the presentation of real situation of
organisations in the training session.
22) Brainstorming- Brainstorming is a sort of group discussion where there is free
discussion of ideas. The objective of such discussion is that one idea stimulates other ideas
and the group may be successful in developing a great idea.
23) Gaming- Gaming involves forming different teams and each team is told to prepare a
comprehensive plan for a year indicating the number of products to be produced, the
amount to be raised, the working capital needs, the level of inventory etc.
24) Sensitivity training -Many a times work pressure leads to lot of stress and tension.
People have different ways and means to respond to stress. It is necessary to be sensitive to
colleagues who are under stress. So sensitivity training is advocated.
25) Performance appraisal -Performance appraisal involves evaluation of employee's
performance at the work place.
26) 360-degree appraisal -360-degree appraisal is nothing but appraisal done by every one.
It can be the senior, juniors, customers, creditors and so on.
27) Employee retention -Employee retention is a process in which the employees are
encouraged to remain
with the organization for the maximum period of time or until the completion of the project.
28) Wage incentives -Wage incentives are performance related incentives offered to the
employees to excel in their work.
29) Performance-related pay- Performance-related pay is the money paid to someone
relating to how well he or she works at the workplace.
30) Human relations -Human relation is an area of management practice which is
concerned with the integration of people in to a work situation in a way that motivates them
to work productively, cooperatively and with economic, psychological and social
satisfaction.
31) Leadership- Leadership can be defined as the art or process of influencing people so that
they strive willingly and enthusiastically towards achievement of group goals.
32) Motivation -Motivation includes all internal and external factors which induces a person
to take a particular course of action.
33) Employee Morale-Morale is a mental condition which determines enthusiasm to work.
High employee morale is a state of mind where the employee has high enthusiasm to work.
34) Grievance -Grievance is a ground for complaint. Grievance is a feeling of injustice at the
work place whether actual or perceived.
35) Human resource accounting- Human resource accounting involves quantifying the
human resource in monetary terms and including it in the company's assets.
36) Human resource audit -Human resource audit involves verification of the various
human relation practices, policies and a programme adopted by the company.
37) Group dynamics -Group dynamics refer to the ways in which people interact and relate
to one-another in a group situation. Group dynamics are basically moral or physical forces
affecting behaviour of members in a group.
38) Team building -Team building refers to the process of establishing and developing a
greater sense of cooperation and trust between team members.
39) Emotional intelligence- Emotional intelligence is the ability to manage emotion at work
place.
40) Mentoring -Mentor is an experienced and trusted adviser. Therefore mentoring is
guidance given by a senior in the organisation to a new recruit.
41) Career planning -Career planning involves deciding on the career goals of the employees
and the route to achieve those career goals.
42) Career development- Career development is activities and actions undertaken primarily
SEC1
CHAPTER 1-INTRODUCTION TO MARKETING
Q1] DEFINE MARKETING.EXPLAIN ITS FEATURES
6. Selective
7. Inter-relationship between MIS and culture of the firm.
8. Future-oriented
9. Latest techniques
Q8] EXPLAIN THE STEPS INVOLVED IN DESIGNING OF A MIS
1. Defining the information needs .
2. Identifying the sources of information
3. Evaluating the cost of collecting and processing the information
4. Collection, storing and processing of information
5. Dissemination of information
6. Reviewing the system
Q9] EXPLAIN THE NEED AND IMPORTANCE OF MIS
1. Facilitates planning .
2. Spotting of trends
3. Tapping marketing opportunities
4. Correct decision making
5. Growing consumer expectations
6. Consumerism
7. Complexity
8. Increase in competition .
9. Information explosion
3. Not exact
4. Not a substitute to decision making .
5. Management attitude
6. Complex environment
7. Shortage of qualified staff .
8. Improper selection of sample
9. Research or respondent bias
10. Other limitations
CHAPTER 4
MARKET SEGMENTATION & CUSTOMER
RELATIONSHIP MANAGEMENT
Q13] DEFINE MARKET SEGMENTATION AND EXPLAIN ITS FEATURES
. William Stanton defines it as "the process of dividing the total heterogeneous market for a
product into several sub markets or segments, each of which tends to be homogeneous in all
significant aspects".
FEATURES OF MARKET SEGMENTATION
1. Heterogeneous market
2. Involves market division .
3. Different bases
4. Continuous process
5. Consumer centric
6. Involves research
7. Time consuming
Q14] EXPLAIN THE IMPORTANCE OF MARKET SEGMENTATION
1. Consumer oriented .
2. Optimum use of resources
3. Develops marketing plan
4. Designing products
5. Pricing the product
6. Effective advertising
7. Distribution strategies
8. Brings about progress and awareness
9. Achieving marketing objectives
Q15] WHAT ARE LIMITATIONS OF MARKET SEGMENTATION?
1. Unpredictable consumer behaviour
2. Fragmentation
3. Time consuming
4. Costly
5. Dynamic environment
6. Too complex
7. Lack of availability of data
8. Incorrect inferences
Q16] EXPLAIN THE VARIOUS BASES OF MARKET SEGMENTATION
:
A. Geographic segmentation
1. Region
2. Urban/Rural/Semi urban
B. Demographic segmentation
Demography is the study of the variables of population such as age composition, gender,
education and so on.
1. Age
2.
Gender
3. Family life cycle
4.
Family size
5. Income
6. Education .
7. Occupation
8. Race and religion
C. Psychological Segmentation
1. Personality characteristics
2. Life style
D. Behavioural Segmentation
Here, segmentation is done on the basis of product related behaviour such as product usage
rate, user status, loyalty pattern, buying motives, attitudes and responses etc.
1. Benefits sought
2. User status :
3. User rate
4. Readiness stage .
5. Buying motives
E. Sociographic segmentation
1. Culture
2. Social class
3. Reference groups
Q17] EXPLAIN THE REQUIREMENTS OF EFFECTIVE SEGMENTATION
1.Heterogeneous
2.Measurable
3.Availability of data
4.Substantial
5.Easily accessible
6.Responsive
7.Availability of resources
Q18] WHAT IS CUSTOMER RELATIONSHIP MARKETING?EXPLAIN ITS
VARIOUS TECHNIQUES
CRM recognises the importance of developing long term relationship with customers. The
objective of CRM is to find, attract and develop new customers and retain existing
customers.
TECHNIQUES OF CRM
1. Know Your Clients by Name
2. Make Conversation with Your Clients
3. Offer Incentives to Your Regular Customers
4. Always Offer best Service
5. Inquire About Customer Comments
6. Provide quality products and/or quality service
7. Offer warranties/guaranties and cash back for returns
8. Send thank you notes
9. Make a point to keep in touch with all of your customers and clients.
10. Make a point to remember any events that are significant,.
11. Smile, and strive to be friendly with your customers at all times
12. Offer a customer appreciation day once a year.
13. Offer a free gift with purchase..
14. Establish Feedback system.
15. Promise very little, and deliver a great deal more than what was expected.
16. Create a website.
17. Use the press.
18. List creatively and widely.
19. Create straightforward, easy-to-understand pricing
20. Encourage personal recommendations.
1. Combination of variables
2. Dynamic concept
3. All variables equally important
4. Applies to business as well as non-businesses
5. Fulfilling objectives
6. Co-related
7. Customer oriented concept
8. Proper integration of marketing mix variables requires special abilities
Q20]EXPLAIN THE VARIOUS COMPONENTS OF MARKETING MIX
1. Product
. It can be defined as anything that is offered for sale in the open market. It includes not only
tangible goods but also intangible goods like services and ideas.
2. Price
Price is the exchange value of a product i.e. the amount for which a thing is bought or sold.
3. Place
. Another important aspect of marketing is to make the product available at the right place,
for which various other activities have to be undertaken. It includes sub-variables such as
channels of distribution, place of distribution, transportation, warehousing and the
intermediaries involved in the process of distribution.
4. Promotion
Promotion mix includes all the activities undertaken by an organization to promote its
products in the target market. It includes sub-variables such as advertising, sales
promotion, personal selling, public relation, publicity, direct marketing etc.
Product Mix
Price Mix
Place Mix
Promotion Mix
Product Line
Pricing policies
Channel of distribution
Advertising
Product Shape
Discounts
Wholesalers
Sales Promotion
Product Size
Rebates
Retailers
Personal Selling
Brand Name
Installments
Place of distribution
Publicity
Product Colour
Level of margins
Transportation
Public relation
Trademark
Credit terms
Warehousing
Direct marketing
Product ingredients
Inventory levels
After Sale Service
B. PRICE MIX
Q27] WHAT IS PRICE?EXPLAIN VARIOUS PRICING METHODS
Price is the exchange value of a product. It is the amount of money and/or other items with
utility needed to acquire a product.
PRICING METHODS
1. Cost plus pricing method/Mark up pricing method
. In this method, the selling price of the product is arrived at by adding a standard mark-up
i.e. margin to the product's cost. For example, if the total cost of production and distribution
of product per unit is Rs. 75. and the firm wants to earn a profit of Rs. 25, the selling price
would be Rs. 100 (75 + 25).
2. Target-Return pricing
Here, the firm determines the price that would fetch its target rate of return on investment.
As per this method, the selling price can be determined by using the formula
= Unit cost +
For example, a manufacturer has invested Rs. 1,00,000 and is expecting a return of 20%.
The cost of the product is assumed to be Rs. 80 per unit. He expects to sell 1,000 units.
Here, the target return price can be calculated as :
Target return price = 80 +
= 80 +
= 80 + 20
= Rs. 100/- per unit
outlets.
Capital cost of distributing is less as distribution is delegated to intermediaries.
3)LESS DISTRIBUTION TIME
Direct marketing saves time as the intermediaries are eliminated from the distribution
process.
The time taken to distribute the goods to the ultimate customer is more due to the
intermediaries involved in the distribution process.
4)MARKETING TOOLS
There are various forms of direct marketing tools such as door to door
selling,internet,telemarketing,home shopping channel etc.
Indirect marketing is undertaken through wholesalers and retailers.
5)SUITABILITY
Direct marketing is suitable for product having specific market. For example resorts and
holiday homes are often promoted through internet.rr
Indirect marketing is suitable FOR products which have mass demand such as toothpaste,
soap etc.
6)CONTROL
Since the marketer is involved in the distribution process he has good control over the
distribution of his goods.
Here the manufacturer relies totally on the intermediaries for the distribution of his goods
so he loses control over the distribution process.
7)CONSUMER FEEDBACK
Since the organisation eliminates intermediaries the manufacturer is in direct contact with
the consumer. This helps them in getting quick feedback about the product from the
consumers.
Feedback about consumers opinion can be sought from intermediaries. It is quite possible
that the feedback may get distorted in the channel and the manufacturer may not get true
feedback.
8)ADVERTISING
More advertising is necessary for direct marketing as the support of intermediaries is not
available for promoting the product.
Intermediaries help to push the product forward. So dependence on advertising is relatively
less.
3. News
4. Speeches .
5. Public welfare Activities
5. DIRECT MARKETING
In direct marketing, companies sell their products directly to the consumers by eliminating
intermediaries from the channel of distribution.
Channels for direct marketing
1. Direct Mail
2. Tele marketing .
3. Television
4. Kiosk Marketing .
5. The Internet .
.
Q34] EXPLAIN THE VARIOUS SALES PROMOTION TOOLS USED BY INDIAN
COMPANIES
Recent Sales Promotions tools used by Indian companies can be categorised into:
1) Promotions aimed at Consumer consumers
2) Trade promotions directed towards the members of the distribution channels.
CLASSIFICATION OF SALES PROMOTION TOOLS
The major promotion tools are as under :
a) The consumer promotion tools
Consumer promotional tools are those tools which are directed towards ultimate consumer.
1. Samples
2. Coupons .
3. Cash refund offers (rebates)
4. Price Packs .
5. Premiums (Gifts)
6. Prizes .
7. Patronage awards
8. Free Trials
9. Warranties
10. Tie in Promotion
11. Point of Purchase Displays and Demonstration
b) Trade Promotion Tools
Trade promotion tools are promotional tools directed towards the intermediaries like the
wholesalers and retailers in order to motivate them to stock the manufacturers brand and
resell it to the consumers..
1. Discounts
2. Allowances .
3. Free Goods
.
c) Sales Force Promotion Tools
These are directed towards the sales force. These tools are useful in gathering business
leads, motivating sales force to greater effort and to aggressively push the product in the
market to increase sales. These tools are :
1. Trade Shows and Conventions
2. Sales Contests .
3. Specialty advertising
E] EVENT MARKETING
Q40] WHAT IS EVENT MARKETING?EXPLAIN THE GUIDELINES FOR
SUCCESSFUL EVENT MARKETING.
Event marketing involves designing or developing a 'live' themed activity, occasion, display,
or exhibit such as a sporting event, music festival, fair, or concert to promote a product,
cause, or organisation. In simple words it involves organising an event to build the brand.
Guidelines
1. Attendance of potential customer
2. Ensure value addition
3. Undertake cost benefit analysis
4. Relevant & viable freebies
5. Appropriate location
F] INTERNET MARKETING
Q41] WHAT IS INTERNET MARKETING? EXPLAIN ITS BENEFITS
E-commerce involves the exchange of products, services, information and payment through
the electronic medium of computers. It includes electronic data interchange, electronic
payment systems, order management, information exchange and other business
applications, with electronic/paperless documentation.
BENEFITS OF E-COMMERCE OR WEB MARKETING
a) TO THE SELLER
1. Global market
2. Economical
3. Customisation possible
4. Services
5. Quick and enhanced service.
6. Building long term relationship .
7. Proper co-ordination
8. Effective medium of communication
.
b) TO THE CONSUMER
1. Convenience
2. Product demonstration
3. Wide choice
4. Bargaining possible
5. Transparency
G] TELEMARKETING
SECTION - II
CHAPTER 9
HUMAN RESOURCE MANAGEMENT
Q43] DEFINE HUMAN RESIURCE MANAGEMENT? EXPLAIN ITS FEATURES..
According to Flippo, HRM is the planning, organising, directing and controlling of the
* Performance appraisal.
iii. Compensation FunctionThe compensation to be paid to the employees has to be finalised. .
iv. Reconciliation FunctionReconciliation function involves integrating individual goals with departmental and
organisational goals..
v. Maintenance Function-it is necessary to maintain physical and mental health of the
employees.
Q47] EXPLAIN THE ROLE OF HR MANAGERS IN THE CHANGING BUSINESS
ENVIRONMENT
CHAPTER 10
HUMAN RESOURCE PLANNING
Q48] WHAT IS HUMAN RESOURCEE PLANNING? EXPLAIN ITS
IMPORTANCE
"Human resource planning involves identifying, recruiting, training and placing people at
right time and place in order to maximise output".
IMPORTANCE OF HUMAN RESOURCE PLANNING
1. Determining future personnel needs
2. Helps strategy formulation
3. Attract and retain talented workforce
4. Select right personnel
5. Avoid surplus staff.
6. Optimum utilisation of labour.
7. Promotion, transfers
8. Increasing investment in human resource
Q49] EXPLAIN THE PROCESS OF HUMAN RESOURCE PLANNING/STEPS IN
HRP?
1. Environmental scanning.
2. Organisational objectives and policies.
3. Forecasting human resource demand.
4. Forecasting supply of human resource.
5. Reconciliation.
6. Implementing the plan.
7. Controlling and evaluating.
Q50] WHAT IS JOB ANALYSIS? WHAT ARE ITS USES?
MEANING
Job analysis enables the organisation to find out the peculiarities of the job, the qualities
and qualifications of the candidates that are necessary to fulfil the job requirements
properly and so on.
Thus Job analysis includes :
1. Job description
Job description gives details of the job to be performed.
2. Job specification
Job specification is the summary of the specific personal characteristics of the individual
that are needed to perform the job effectively.
USES OF JOB ANALYSIS
* Job analysis helps in knowing what the job involves.
* It helps in finalising the pay scale.
* Job analysis helps in knowing the relative worth of each job
* Job analysis helps in finalising the training program.
* It helps in performance appraisal..
* It avoids duplication of work.
* It helps in identifying the work which was unassigned.
* It helps in knowing whether legal requirements pertaining to a job have been complied
with.
1. Employment bureaus.
2. Campus recruitment.
3. Advertisements.
4. Working list.
5. Employee recommendations.
6. Gate hiring.
7. Deputation.
8. Social consideration.
Q52] WHAT IS SELECTION? EXPLAIN THE STEPS IN SELECTION OF A
CANDIDATE
To select is to choose the best or the most suitable candidate.
SELECTION PROCESS :
1. Screening applications .
2. Written test
3. Interview
4. Group discussion
5. Medical examination
6. Reference check
7. Selection/placement
7. Informal interview
Q55] EXPLAIN THE ROLE/ADVANTAGES OF INTERVIEW
a) To the company
1. Verify claims
2. Understand aptitude.
3. Additional information.
4. Promotion
5. Recruitment decision
b) To the candidates
1. Job opportunity
2. Display skills
3. Understand job specifications
4. Develops confidence
Gaming involves forming different teams and each team is told to prepare a comprehensive
plan for a year indicating the number of products to be produced, the amount to be raised,
the working capital needs, the level of inventory etc.
8. Sensitivity training
It is necessary to be sensitive to colleagues who are under stress. So sensitivity training is
advocated.
PERFORMANCE APPRAISAL
Q60] WHAT IS PERFORMANCE APPRAISAL? EXPLAIN ITS FEATURES.
Performance appraisal involves evaluation of employee's performance at the work place.
.
Features of performance appraisal
1. Systematic evaluation
2. Focus on result
3. Various techniques and methods
4. Evaluation by different people
5. Continuous process
6. Differs from job evaluation
7. Multiple use
8. Qualitative and quantitative analysis
Q61] EXPLAIN THE ADVANTAGES AND LIMITATIONS OF PERFORMANCE
APPRAISAL
Benefits/importance / purpose of performance appraisal
1. Maximise productivity
2. The managers can express their expectations.
3. Motivating employees.
4. Fixing salary
5. Understand the need and extent of training and developing.
6. Reduce wastage
7. Chance to find out the future managers
8. Merit gets its due importance.
9. The employees come to know their strengths and weakness
10. Decide on promotion
11. Finalise employee transfer
Limitations of performance appraisal
1. Biased Evaluation
2. Time Consuming
3. Costly
4. Lack of uniformity
5. Documentation
6. Evaluators may not be trained
7. Fear of superseding
8. Job description not proper
discussions with them, giving them a questionnaire to fill and so on. Here emotional
maturity, intellectual capacity, level of motivation etc. can be tested and then prediction can
be done about the persons capacity.
EMPLOYEE RETENTION
Employee retention is a process in which the employees are encouraged to remain with the
organization for the maximum period of time or until the completion of the project.
Retention involves five major things:
1.Compensation
Compensation includes salary and wages, bonuses, benefits, prerequisites, stock options,
bonuses, vacations, etc.
2organisation environment
Organization environment includes :
* Culture
* Values
* Company reputation
* Quality of people in the organization
* Employee development and career growth
* Risk taking
* Leading technologies
* Trust
3. Growth And CareerGrowth and development are the integral part of every individuals career. If an employee
can not foresee his path of career development in his current organization, there are chances
that hell leave the organization as soon as he gets an opportunity.
4.Relationship
To enhance good professional relationships at work, the management should keep the
following
* Respect for employees
* Proper relationship amongst colleagues
* Ensure individual development
* Reward employee
* promote employee based culture
* 5.SUPPORT
Supervisor should support his subordinates in a way so that each one of them is a success.
Management should try to focus on its employees and support them not only at work but
CHAPTER 12-
HUMAN RELATIONS
6. Tactful
7. Persistent
8. Interpersonal skills
9. Confident
10. Persuasive
11. Knowledgeable
12. Good communication skills
13. Willingness to accept responsibility
14. Intelligence
15. Decision making
Q69] EXPLAIN VARIOUS LEADERSHIP STYLES.
LEADERSHIP STYLES
One may come across following styles of leadership.
1. Autocratic style : An autocrat is a dictatorial person.
2. Democratic style : Democratic style involves practicing democracy or favouring social
equality.
3. Bureaucratic Style : A bureaucrat is an inflexible and an insensitive administrator.
4. Neurocratic Style : neurocratic style involves managing an organisation more by emotion
than by rational judgement.
5. Paternalistic style : Paternal means like a father. Paternalistic style of management means
to take responsibility of the welfare of the employees.
6. Laissez Faire Style : Laissez faire style involves minimum interference of the management
in the day to day functioning of the business
7. Situational leadership style : Here the leader does not follow any specific pattern. The
style is decided upon the situation.
MOTIVATION
Q70] WHAT IS MOTIVATION?EXPLAIN FACTORS AFFECTING MOTIVATION
Motivation includes all internal and external factors which induces a person to take a
particular course of action.
FACTORS AFFECTING MOTIVATION
1. Challenging jobs
2. Future prospects
3. Monetary rewards
4. Other incentives .
5. Healthy working environment
6. Scope for personal growth
7. Freedom
8. Recognition
aggrieved person can approach grievance committee which has to communicate its
recommendation within three days.
4. Appeal to Management- Aggrieved person when unsatisfied with the grievance
committees decision can file a revision petition to the management. The management is
expected to redress the issue within seven days.
5. Voluntary Arbitrator-The grievance may subsequently be referred to voluntary arbitrator
if the aggrieved party is not satisfied with the decision of the management.
CHAPTER 13
1. All levels
2. Policy formulation
3. Policy communication
4. Recruitment and selection
5. Human resource development
6. Motivation.
7. Research & innovation .
8. Performance evaluation9. Administrative issues.
10. Organisational structure and hierarchy
11. Finalising wage structure.
C. GROUP DYNAMICS
Q80] WHAT IS GROUP DYNAMICS?EXPLAIN ITS SIGNIFICANCE.
Group dynamics refer to the ways in which people interact and relate to one-another in a
group situation. Group dynamics are basically moral or physical forces affecting behaviour
of members in a group.
Significance of group dynamics1. Facilitate group survival.
2. Simplify role expectations
3. Protect self-images.
4. Express key group values.
5. Enhance the group's unique identity.
6. Increase productivity.
7. Emotional security-.
8. Improved coordination-.
6. Developing self-regulation.
7. Identifying latent talent.
8. Optimum utilisation of resources.
9. Improving team.
10. Practicing effective collaboration.
D. EMOTIONAL QUOTIENT OR EMOTIONAL INTELLIGENCE
Q82] WHAT IS EMOTIONAL INTELLIGENCE?STATE ITS DIMENSIONS AND
ITS IMPORTANCE
.
According to Daniel Goleman managers effectiveness in a corporation depends on his
ability to manage his emotions at the workplace and calmly deal with stressful situation at
the work place.
DIMENSIONS OF EQ* Self awareness- Developing self-awareness can help us to recognise when we are stressed
or under pressure.
* Self regulation- Emotional self-regulation, also known as Emotion Regulation or simply
ER, is being able to properly regulate one's emotions.
* Motivation-motivation includes all internal and external factors which induces a person to
take a particular course of action.
* Empathy-manager should sympathise and empathise with the employees..
* Social skills-Negotiating, inspiring, guiding, cooperating etc are the various social skills
that should be available with manager.
IMPORTANCE
1) Recruitment.
2) Act as mentor.
3) Empathise-.
4) Balanced decision-.
5) Increase effectiveness.
6) Flexibility
E. MENTORING
Q83] WHAT IS MENTORING? EXPLAIN ITS STEPS
Meaning
Mentor is an experienced and trusted adviser. Therefore mentoring is guidance given by a
senior in the organisation to a new recruit.
Steps in mentoring
1) InitiationInitiation means commencement. In this stage the mentor and the mentee meet. Here both
try to know and understand each other..
2) ProgressionProgression involves progress or development. In this stage the relation starts crystallising
weekly; monthly meetings are held between mentor and mentee. The actual issues faced by
the mentee in the organisation are discussed.
3) Integration/assimilation
There is close integration in the ties between the mentor and mentee. Along with the
professional issues personal issues may also be discussed between mentor and mentee. The
mentor tries to use his skill and experience to solve the issues between mentor and mentee.
4) Feedback
Feedback is then crystallised in to a plan of action. Various steps and measures can be
suggested for corrective action.
F. CAREER PLANNING
Q84] WHAT IS CAREER PLANNING?EXPLAIN ITS FEATURES.
Career planning involves deciding on the career goals of the employees and the route to
achieve those career goals.
Features
* Career planning of the employee is supplemented by the organisation.
* It is continuous and for long term, where goals of the individuals are harmonised with the
goals of the organisation.
* The objective of career planning is to ensure not only succession in the organisation but
also to ensure that the skills of all the employees are utilised to the optimum extent.
* Career planning is time consuming and needs lot of foresight and imagination.
* The goals, aptitude and the capacity of the individual are kept in mind before planning the
career.
* The organisation tries to create a conducive environment to help employees plan their
careers properly.
* Career planning is an integral part of human resource planning.
* There are certain steps that have to followed while planning the career .The steps would
generally involve the followingI. Identifying the aptitude and the career goals of the employees.
II. Finding out the career growth opportunities available to each and every employee in the
organisation.
III. Trying to match individual aspirations with career growth opportunities available with
the organisation.
IV. Monitoring the career growth plans implemented.
V. Modifying the career growth plans in case of mismatch.
CAREER DEVELOPMENT
Q85] WHAT IS CAREER DEVELOPMENT?EXPLAIN THE IMPORTANCE OF
CAREER PLANNING AND DEVELOPMENT
Career development is activities and actions undertaken primarily by an employee and
supported by management to achieve individual career goals.
H.EMPLOYEE PARTICIPATION
Q88] WHAT IS EMPLOYEE PATICIPATION?EXPLAIN ITS SIGNIFICANCE
Participation is contribution in the process of decision making and implementing. This
participation is emotional and physical in nature.
Significance/Importance of workers participation
1. Realistic suggestion.
2. Improves morale.
3. Facilitates monitoring.
4. Optimum utilisation of resources.
5. Accountability.
6. Less resistance.
G.EMERGING CHALLENGES IN HRM
Q89] WHAT ARE THE EMERGING CHALLENGES IN HRM?
1) HRM have to select people whom they think can be effectively trained to work under
different environment and culture as organisations nowadays have to operate in many
countries.
2) Attrition rate is on the rise with around 20-25% of the people leaving the job every
year.
3) Keeping the morale of the employees high is becoming a big challenge since the
companies keep on restructuring their operations which is likely to displace many people of
their jobs.
4) Labour laws of different countries vary. The HR department has to acquaint
themselves with these laws so that labour variation does not take place.
5) Many women are now joining the workforce. It is necessary to have a cell which will
look in to the issues pertaining to women..
6) Stress level is very high amongst the employees nowadays as they are often faced with
deadlines, targets etc.HR department has to undertake continuous counselling to reduce
this stress.
7) Technological changes are taking place very fast. The skills of the employees have to
be upgraded continuously.
8) People employed may be from different countries. It is necessary to create conditions
which are conducive for them to work.
9) Many organisations as a part of corporate social responsibility are employing people
having different abilities. .
10) It is necessary to look after the career development of employees..
11) Many companies in order to be lean and thin are retrenching people by offering them
golden hand shake.
12) Nowadays in order to retain talented employees many organisations are developing
flexi compensation plans where the employees are given an option to select any plan out of
the many plans offered.
13) Compensation to be offered to the CEOs is also an issue which can create
controversies..
14) Performance appraisal of the employees has to be undertaken continuously..
15) For recruitment, a transfer, promotions etc. criteria has to be laid down.HR
department has to ensure that these criteria are fair, transparent and easy to implement.
16) Handling layoffs due to outsourcing is not easy and needs proper counselling which
HR department has to undertake.
I.MANAGING DOWNSIZING
Q91] WHAT IS DOWNSIZING? EXPLAIN THE ROLE OF HUMAN RESOUCE IN
DOWNSIZING?
Downsizing involves reducing the size of the organisation. In order to survive in this
competitive environment the organisation is expected to reduce the cost of operations.
Role Of Human Resource In Downsizing
* Human relations should lay down guidelines for the employees to be retrenched.
* The retrenchment policy should properly be communicated to the employees who are to
be retrenched.
* Human resource is expected to give management inputs about severance package to the
employees who are to be retrenched after discussing with the trade union.
* The need for downsizing should be properly explained to the employees by the human
resource department as it is likely to have effect on the morale of the employees.
* The HR department should study the procedures followed, severance packages offered etc.
of other competing firms which have resorted to downsizing.
* HR department should ensure that severance package is immediately made available to
the retrenched employees so that they do not face financial problems post retirement.
* HR department should undertake training programs to harp on the skills of remaining
employees post downsizing as the responsibilities and the work is likely to change.
* HR department can have counselling sessions for those who are likely to be retrenched as
they are likely to be under tremendous stress..
J] OUTSOURCING
Q92] WHAT IS OUT SOURCING?EXPLAIN ITS BENEFITS AND LIMITATIONS.
Outsourcing refers to a company that contract with another company to provide services
that might otherwise be performed by in-house employees
Benefits of Outsourcing:
1. Cost savings
2. Focus on Core Business.
3. Improve quality.
4. Completion of work on time.
5. Access to talent.
6. Outsourcer acts as a catalyst for change in the concern country.
7. Enhance capacity for innovation.[
8. Standardisation.
9. Less Tax .
10. Manage short term increase.
Limitations of outsourcing
1]Quality risk
2] Lowers Productivity.
3] Security issues.
4] Labour turnover at outsourcers.
5] Less control.
6] Low motivation.
* Inferences
EVALUATING STUDENTS PERFORMANCE-CRITERIA
Check logical flow
Finding how content, language and presentation has been structured
Quality of analysis
Recommendations
SKILLS DEVELOPED BY CASE METHOD
* Qualitative and quantitative analytical skills* Problem identification
* Data handling
* Critical thinking
* Decision making skills
* Implementation skills
* Oral, debate skills
* Interpersonal skills
* Time management skills
* Creative skills
* Written communication skills
BENEFITS FROM CASE METHOD
Learn by doing
Increase ability to ask right questions
Identify and understand underlying problems
Expose students to wide range of industries, organisations, functions and responsibility
Strengthens students grasp of management theory
Learn to take decisions based on insufficient information
Learn to deal with different viewpoint
Posted by Akshay Padelkar at 1:46 pm
Email ThisBlogThis!Share to TwitterShare to Facebook