Human Resources/BUSINESS MATHEMATICS AND STATISTICS
1.Fix a Straight Line Trend equation by the method of Least Square Principle method. Assuming that the same rate of change continues what would be the predicted earnings for the year 1990?
Year 1981 1982 1983 1984 1985 1986 1987 1988
Earnings 38 40 65 72 69 60 87 95
2. A sample analysis of examination results of 500 students where made. It was found that 180 students have failed, 170 have secured a third class, 110 where placed in second class. Are these figure commensurate with the general examination result which is in ratio of 4:3:2:1 for the various categories respectively.
3. In a survey of 200 boys, 75 were intelligent,
40 had educated fathers. While 85 of unintelligent boys had uneducated father. Do these figures support the hypothesis that educated father have intelligent boys?
4. A and B play 12 games of chess, of which 6 are won by A, 4 by B and 2 end in a tie. They agree to play 3 more games. Find the probability that
a) A win all the three games
b) Two games end in a tie
c) A and B win alternatively and
d) B wins at least one game.
NO EXPERTISE IN THE ABOVE QUESTIONS.
1)a) "Management is a series of functions to be performed in a sequential order". Explain the statement describing Management Process in short.
The FOUR MAIN Functions OF A MANAGER:
Planning is the ongoing process of developing the business' mission and objectives and determining how they will be accomplished. Planning includes both the broadest view of the organization, e.g., its mission, and the narrowest, e.g., a tactic for accomplishing a specific goal.
Planning is the first tool of the four functions in the management process. The difference between a successful and unsuccessful manager lies within the planning procedure. Planning is the logical thinking through goals and making the decision as to what needs to be accomplished in order to reach the organizations’ objectives. Managers use this process to plan for the future, like a blueprint to foresee problems, decide on the actions to evade difficult issues and to beat the competition. Planning is the first step in management and is essential as it facilitates control, valuable in decision making and in the avoidance of business ruin.
Quality in the results that are achieved and how the results are reached doing what is right, respect for others, value those that lead and take pride in all they do, and the value of teamwork to reach common goals.
STEPS FOR EFFECTIVENESS/ EFFICIENCY
- review of the previous period.
-review of the current/ future environmental factors.
-conducting the internal SWOT analysis.
-setting up mission for guidelines.
-setting corporate objectives/ strategies
-cascading down to business units/ departments/ individuals.
ALL THESE HELP TO SET EVERYONE TO AN OBJECTIVE
WHOSE ACHIEVEMENT HELPS TO BUILD THE CORPORATE OBJECTIVES.
THE PLANS HELP TO
-achieve a purpose for all the employees.
-sets a direction.
-provides a set of business drivers.
-sets up issues to tackle to solve problems.
1. Effective managers understand clearly their job responsibilities and authority.
2. They utilize their resources productively.
3. They establish priorities for work to be done by themselves and their people.
4. They minimize the need for overtime.
5. They see to it that everyone understands his responsibilities and authority.
6. They show their people how each job fits into the total picture.
This measure of management effectiveness provides you with an idea of how well the company is being run relative to others in its sector and the market as a whole. Consistently low numbers are a red flag.
Unlike many comparisons, you can use these tools to compare companies in different industries. The tools are:
• Return on assets
• Return on investment
• Return on equity
Return on Assets
Return on assets tells you how well a company’s management uses its assets to make a profit.
You calculate the ROA by taking the net income and dividing it by the total assets.
The ROA comparison works better over time so you can see a trend in how well management uses assets to the advantage of the company.
The higher the ratio, the better and the continued high level over time is even better because it indicates management makes a habit of managing with efficiency.
Poorly managed companies, will consistently fall before industry averages in this area, while better run companies stay out in front of the averages.
Return on Investment
Return on investment measures not only the company’s contribution, but also the purposeful use of leverage or debt to extend company’s reach.
You calculate ROI by dividing net profits by (long-term debt plus other long-term liabilities plus equity).
Managers choose to combine the company’s equity with outside debt to extend programs quickly and efficiently.
Skillful use of debt can change a $50 million project into a $75 million project. If everyone has done their homework correctly, the company can see additional profit from a larger project than they could have afforded without the debt.
Return on Equity
Return on equity is music to stockholders ears if the numbers are good, because it measures how well management did in earning money for them.
Unlike return on assets and return on investment, this measure goes directly to the stockholders and their stake in the company.
Unfortunately, ROE is somewhat flawed. You calculate ROE by taking net income and dividing by shareholders equity. Missing from this equation is debt and that distorts the picture somewhat.
Although ROE is somewhat helpful in looking at companies, it doesn’t provide the guidance the ROA does.
Organizing is establishing the internal organizational structure of the organization. The focus is on division, coordination, and control of tasks and the flow of information within the organization. It is in this function that managers distribute authority to job holders.
Staffing is filling and keeping filled with qualified people all positions in the business. Recruiting, hiring, training, evaluating and compensating are the specific activities included in the function. In the family business, staffing includes all paid and unpaid positions held by family members including the owner/operators.
In order to reach the objective outlined in the planning process, structuring the work of the organization is a vital concern. Organization is a matter of appointing individuals to assignments or responsibilities that blend together to develop one purpose, to accomplish the goals. These goals will be reached in accordance with the company’s values and procedures. A manager must know their subordinates and what they are capable of in order to organize the most valuable resources a company has, its employees . This is achieved through management staffing the work division, setting up the training for the employees, acquiring resources, and organizing the work group into a productive team. The manager must then go over the plans with the team, break the assignments into units that one person can complete, link related jobs together in an understandable well-organized style and appoint the jobs to individuals.
STEPS FOR EFFECTIVENESS/ EFFICIENCY
-develop the effective organization process to achieve the objectives.
-develop the effective organization structure
-develop the appropriate business process.
-develop the most effective/ appropriate HR PLANNING
-FILL IN WITH THE best fit in THE RIGHT PLACE.
-develop / set up the most effective procurement system / process.
-develop / set up the most effective production system / process
-develop / set up the most effective warehousing system / process
-develop / set up the most effective marketing/sales system / process
-develop / set up the most effective distribution system / process
-develop / set up the most effective customer service system / process
etc etc etc
1. They recognize and correct situations that need improvement.
2. They originate new approaches to problems.
3. They make the most of a promising new idea.
4. They encourage their people to try new ideas.
5. They face up to situations.
1. They effectively delegate responsibility and authority.
2. They avoid trespassing on authority, once delegated.
3. They periodically check performance of delegated duties.
4. They encourage their people to make decisions.
5. They inspire their people to work toward goals.
6. They make full use of the skills and abilities of their people.
7. They generate a sense of belonging.
8. They go to bat for their people when necessary.
1. Their decisions are consistent with policies, procedures, and goals.
2. They keep within the bounds of their authority in making decisions.
3. They consider and interpret correctly the important facts in solving a problem.
4. They accept responsibility for their decisions, even when they've consulted others.
5. They make decisions promptly, but not hastily.
Directing is influencing people's behavior through motivation, communication, group dynamics, leadership and discipline. The purpose of directing is to channel the behavior of all personnel to accomplish the organization's mission and objectives while simultaneously helping them accomplish their own career objectives.
Organizational success is determined by the quality of leadership that is exhibited. "A leader can be a manager, but a manager is not necessarily a leader," . Leadership is the power of persuasion of one person over others to inspire actions towards achieving the goals of the company. Those in the leadership role must be able to influence/motivate workers to an elevated goal and direct themselves to the duties or responsibilities assigned during the planning process.. Leadership involves the interpersonal characteristic of a manager's position that includes communication and close contact with team members.
STEPS FOR EFFECTIVENESS/ EFFICIENCY
-set up a system to give direction to the staff.
-set up a system to provide feedback from the staff.
-should have a regular weekly review meetings [ 15 minutes]
-should have a regular monthly planning meetings.
-should have an annual strategic planning meetings.
-set up a motivational program for recognition/ rewards for staff.
-set up performance appraisal / performance improvement plan.
-annually review the staff potential assessment.
-provide regular training for staff.
1. They encourage their people to express their ideas and opinions.
2. They listen with understanding and purpose.
3. They respond intelligently to criticisms of their own actions.
4. They keep their people informed of changes in policies and procedures and all other matters affecting their work.
5. They recognize good work and express appreciation.
6. They express themselves clearly and effectively - in writing, speech, and manner.
1. They are fair and firm in dealing with people.
2. They show that they enjoy their work and their associates.
3. They can take it when the going gets rough.
4. They make it easy for people to talk to them.
5. They understand both on-the-job and off-the-job problems of their people.
Put Your Praise On Paper
Most managers would agree that a verbal pat on the back for a job well done is not only simple justice; it's good management.
Yet, such gestures are less frequent than they might be, probably because of the general pressure of work. But if the employee is to gain any real recognition, the words should be written, not verbal.
There is nothing wrong with calling somebody on the phone or thanking him or her during a chance meeting in the cafeteria. But why not go the extra distance and put it in writing?
It's most effective to send those words of praise not to the individual, but to his or her manager with a personal copy for the employee, if you are not the immediate manager. (If you are, a memo in his personnel file might be in order.) This eliminates the dilemma of the employee keeping the compliment to himself or personally bringing it to the attention of his manager. A modest person might well do the former and where is the recognition in that?
One of the toughest jobs managers face is getting across to their people that results - not only good intentions - are what really count. Many people never seem to absorb the fact that they should take responsibility not only for what they do, but for what happens as a result of what they do - or don't do.
Example: a manager tells one of his people to make sure that a particular job sent to another department for special coating is returned by the seventeenth of the month at the very latest.
The seventeenth comes and goes - but no sign of the job. The manager checks with his employee, who shrugs, "I told them we had to have it back no later than today."
The manager's first impulse may be to read the riot act to the offending department. But then he realizes that by doing so he is letting his employee off the hook. Instead, he says, "I'm sure you did tell them. But I told you to be sure the job came back on time. You didn't do that."
That's a different message from the one the employee obviously expected, which was, "Okay, you've done all you could." But next time he'll be more likely to remember that his boss wants both action and results.
Make it clear to your people, therefore, that when they are asked to do something, or have something done, they will be held accountable for the successful completion of the job, no matter who else is involved.
It could be one of the most important lessons of their lives.
Listening: Still Important
You've heard it before, certainly, but it can't be overemphasized: listening is an important management skill for at least three reasons.
First, no one knows the problems of a job as well as the person who is doing it.
Second, only by listening can a manager spot trouble before it develops.
Third, people want to feel that their bosses take an interest in them as in their ideas.
Listening enables a manager to respond to the needs of his people. Such responses are essential to good leadership because everyone is, at times, troubled. Everyone wants recognition, sympathy, praise, interest without intrusion. The good leader is liked because he really is interested. This can't be faked because people quickly see through a phony.
Keep Your Boss Informed
In the world of business, information is gold. No boss ever has enough. Most often, though, he hears from his people about problems or trouble. Most bosses would enjoy being on the receiving end of something positive, or at least neutral, for a change.
What kind of information can a boss use? Some examples:
* Copies of memos. Managers usually give some thought to whether the boss should view copies of memos sent to people outside the department. But they tend to overlook the possibility that he may be equally interested in memos to people within the department - if they are complimentary or discuss an unusual task or project. A copy of such a memo accomplishes two things: it gives the employee additional recognition and it links your name to successful, out-of-the-ordinary action.
* Employee comments, suggestions. Some managers relay complaints or suggestions from employees when they talk with the boss. Others, however, get better mileage by suggesting that the employee write a memo on the subject to be forwarded up the line. That way, they are able to offer solutions to problems raised or comment on the suggestion and sense of involvement in their departments.
* Articles. Usually it's the other way around: the boss sends articles from magazines and newspapers to subordinates. But there is no reason why a manager can't send to his boss something he has found helpful or informative. And the reading matter doesn't have to be work related - unless, of course, the boss plainly has no interests in outside issues. By the same token, mentioning an especially rewarding book can be a good idea.
A word of caution: with all the paper passing across his desk, no boss wants to be deluged with material that doesn't interest him. This, therefore, is a place to exercise discrimination - while incidentally enhancing your image as someone who is alert to his or her interests. However, unless your boss has unusually broad and varied tastes, material that is not work related should be kept to a minimum.
* Meetings. The boss should not become too familiar a fixture at department meetings. In fact, if you invite him too often, he may wonder what you do as a manager or how you perceive his schedule. Occasionally, though, when you anticipate an impressive show, tell your boss you think he'd find the time well spent and let him get direct exposure to what's going onControlling
Controlling is a four-step process of establishing performance standards based on the firm's objectives, measuring and reporting actual performance, comparing the two, and taking corrective or preventive action as necessary.
The process that guarantees plans are being implemented properly is the controlling process. ‘Controlling is the final link in the functional chain of management activities and brings the functions of management cycle full circle.’ This allows for the performance standard within the group to be set and communicated. Control allows for ease of delegating tasks to team members and as managers may be held accountable for the performance of subordinates, they may be wise to extend timely feedback of employee accomplishments.
STEPS FOR EFFECTIVENESS/ EFFICIENCY
THE CONTROLS FOR ANY ORGANIZATION ARE THE FOLLOWING
-EFFECTIVE ORGANIZATION STRUCTURE
-MANAGEMENT CONTROLS AT ALL LEVELS
*MARKETING MANAGEMENT CONTROL.
*SALES MANAGEMENT CONTROL
*SUPPLY MANAGEMENT CONTROL
*DISTRIBUTION MANAGEMENT CONTROL
-INVENTORY CONTROLS--RAW MATERIALS
-INVENTORY CONTROLS --FINISHED PRODUCTS
-SALES/ MARKETING EXPENSES CONTROL
-MONTHLY PERFORMANCE REVIEW AGAINST BUDGET
-HALF YEARLY BUSINESS AUDITING
IN ANY ORGANIZATION , WE SHOULD INTEGRATE THE CONTROL
SYSTEMS INTO PLANNING, SO THAT IT HELPS
-TO MEASURE THE DEVIATIONS
-TO STUDY THE VARIANCES
-TO TAKE APPROPRIATE ACTIONS.
Management planning and control process"
P .PLANNING-----------------C.CONTROL [ c1.establish standards]
p2.determine detailed activities.
p6.communication and coordination
c2.measure and compare.
c4.feedback and coach
c5.take corrective action.
The above schematic shows the important interrelationships between planning and control. As you can see, the control process does not begin after the entire planning process ends, as most managers believe.
After objectives are set in the first step of the planning process, appropriate standards should be developed for them. Standards are units of measurement established to serve as a reference base and are useful in determining time lines, sequences of activities, scheduling, and allocation of resources.
For example, if objectives are set and work is planned for 18 people on an assembly line, standards or reasonable expectations of performance from each person then need to be clearly established.
The second significant interaction between planning and control occurs with the final step of the control process-taking corrective action. This can take several forms, but two of the most effective are to change the objectives or alter the plan.
Managers dislike doing either; but if a positive motivational climate is to be established, these ought to be the first two corrective actions attempted. Objectives and standards are based on assumptions, but if these assumptions prove inaccurate, then objectives and standards require alteration. Thus sales quotas assigned on the premise of a booming economy can certainly be altered if, as is often the case, the economy turns sour.
Likewise, if the assumptions are accurate and objectives and standards have not been met, then it is possible that the plan developed was inadequate and needs to be changed.
Controls are to be an integral part of any organization's financial and business policies and procedures. Controls consists of all the measures taken by the organization for the purpose of; (1) protecting its resources against waste, fraud, and inefficiency; (2) ensuring accuracy and reliability in accounting and operating data; (3) securing compliance with the policies of the organization; and (4) evaluating the level of performance in all organizational units of the organization. Controls are simply good business practices.
Everyone within the COMPANY has some role in controls. The roles vary depending upon the level of responsibility and the nature of involvement by the individual. The Board of President and senior executives establish the presence of integrity, ethics, competence and a positive control environment. The department heads have oversight responsibility for controls within their units. Managers and supervisory personnel are responsible for executing control policies and procedures at the detail level within their specific unit. Each individual within a unit is to be cognizant of proper internal control procedures associated with their specific job responsibilities.
The Internal Audit role is to examine the adequacy and effectiveness of the company internal controls and make recommendations where control improvements are needed. Since Internal Auditing is to remain independent and objective, the Internal Audit Office does not have the primary responsibility for establishing or maintaining internal controls. However, the effectiveness of the internal controls are enhanced through the reviews performed and recommendations made by Internal Auditing.
2.Elements of Internal Control
Internal control systems operate at different levels of effectiveness. Determining whether a particular internal control system is effective is a judgement resulting from an assessment of whether the five components - Control Environment, Risk Assessment, Control Activities, Information and Communication, and Monitoring - are present and functioning. Effective controls provide reasonable assurance regarding the accomplishment of established objectives.
A. Control Environment
The control environment, as established by the organization's administration, sets the tone of THE COMPANY and influences the control consciousness of its people. MANAGERS of each department, area or activity establish a local control environment. This is the foundation for all other components of internal control, providing discipline and structure. Control environment factors include:
• Integrity and ethical values;
• The commitment to competence;
• Leadership philosophy and operating style;
• The way management assigns authority and responsibility, and organizes and develops its people;
• Policies and procedures.
B. Risk Assessment
Every entity faces a variety of risks from external and internal sources that must be assessed. A precondition to risk assessment is establishment of objectives, linked at different levels and internally consistent. Risk assessment is the identification and analysis of relevant risks to achievement of the objectives, forming a basis for determining how the risks should be managed. Because economics, regulatory and operating conditions will continue to change, mechanisms are needed to identify and deal with the special risks associated with change.
Objectives must be established before MANAGERS can identify and take necessary steps to manage risks. Operations objectives relate to effectiveness and efficiency of the operations, including performance and financial goals and safeguarding resources against loss. Financial reporting objectives pertain to the preparation of reliable published financial statements, including prevention of fraudulent financial reporting. Compliance objectives pertain to laws and regulations which establish minimum standards of behavior.
The process of identifying and analyzing risk is an ongoing process and is a critical component of an effective internal control system. Attention must be focused on risks at all levels and necessary actions must be taken to manage. Risks can pertain to internal and external factors. After risks have been identified they must be evaluated.
Managing change requires a constant assessment of risk and the impact on internal controls. Economic, industry and regulatory environments change and entities' activities evolve. Mechanisms are needed to identify and react to changing conditions.
C. Control Activities
Control activities are the policies and procedures that help ensure management directives are carried out. They help ensure that necessary actions are taken to address risks to achievement of the entity's objectives. Control activities occur throughout the organization, at all levels, and in all functions. They include a range of activities as diverse as approvals, authorizations, verifications, reconciliations, reviews of operating performance, security of assets and segregation of duties.
Control activities usually involve two elements: a policy establishing what should be done and procedures to effect the policy. All policies must be implemented thoughtfully, conscientiously and consistently.
D.Information and Communication
Pertinent information must be identified, captured and communicated in a form and time frame that enables people to carry out their responsibilities. Effective communication must occur in a broad sense, flowing down, across and up the organization. All personnel must receive a clear message from top management that control responsibilities must be taken seriously. They must understand their own role in the internal control system, as well as how individual activities relate to the work of others. They must have a means of communicating significant information upstream.
Control systems need to be monitored - a process that assesses the quality of the system's performance over time. Ongoing monitoring occurs in the ordinary course of operations, and includes regular management and supervisory activities, and other actions personnel take in performing their duties that assess the quality of internal control system performance.
The scope and frequency of separate evaluations depend primarily on an assessment of risks and the effectiveness of ongoing monitoring procedures. Internal control deficiencies should be reported upstream, with serious matters reported immediately to top administration and governing boards.
Control systems change over time. The way controls are applied may evolve. Once effective procedures can become less effective due to the arrival of new personnel, varying effectiveness of training and supervision, time and resources constraints, or additional pressures. Furthermore, circumstances for which the internal control system was originally designed also may change. Because of changing conditions, management needs to determine whether the internal control system continues to be relevant and able to address new risks.
Components of the Control Activity
1.Internal controls rely on the principle of checks and balances in the workplace. The following components focus on the control activity:
2.Personnel need to be competent and trustworthy, with clearly established lines of authority and responsibility documented in written job descriptions and procedures manuals. Organizational charts provide a visual presentation of lines of authority and periodic updates of job descriptions ensures that employees are aware of the duties they are expected to perform.
3.Authorization Procedures need to include a thorough review of supporting information to verify the propriety and validity of transactions. Approval authority is to be commensurate with the nature and significance of the transactions and in compliance with COMPANY policy.
4.Segregation of Duties reduce the likelihood of errors and irregularities. An individual is not to have responsibility for more than one of the three transaction components: authorization, custody, and record keeping. When the work of one employee is checked by another, and when the responsibility for custody for assets is separate from the responsibility for maintaining the records relating to those assets, there is appropriate segregation of duties. This helps detect errors in a timely manner and deter improper activities; and at the same time, it should be devised to prompt operational efficiency and allow for effective communications.
5.Physical Restrictions are the most important type of protective measures for safeguarding COMPANY assets, processes and data.
6.Documentation and Record Retention is to provide reasonable assurance that all information and transactions of value are accurately recorded and retained. Records are to be maintained and controlled in accordance with the established retention period and properly disposed of in accordance with established procedures.
7.Monitoring Operations is essential to verify that controls are operating properly. Reconciliations, confirmations, and exception reports can provide this type of information.
b) "Unplanned actions may lead to a mess". Elucidate the statement with the help of significance of planning.
WHAT IS THE CONTRIBUTION OF PLANNING TO THE BUSINESS.
1. Planning facilitates management by objectives.
a. Planning begins with determination of objectives.
b. It highlights the purposes for which various activities are to be undertaken.
c. In fact, it makes objectives more clear and specific.
d. Planning helps in focusing the attention of employees on the objectives or goals of enterprise.
e. Without planning an organization has no guide.
f. Planning compels manager to prepare a Blue-print of the courses of action to be followed for accomplishment of objectives.
g. Therefore, planning brings order and rationality into the organization.
2. Planning minimizes uncertainties.
a. Business is full of uncertainties.
b. There are risks of various types due to uncertainties.
c. Planning helps in reducing uncertainties of future as it involves anticipation of future events.
d. Although future cannot be predicted with cent percent accuracy but planning helps management to anticipate future and prepare for risks by necessary provisions to meet unexpected turn of events.
e. Therefore with the help of planning, uncertainties can be forecasted which helps in preparing standbys as a result, uncertainties are minimized to a great extent.
3. Planning facilitates co-ordination.
a. Planning revolves around organizational goals.
b. All activities are directed towards common goals.
c. There is an integrated effort throughout the enterprise in various departments and groups.
d. It avoids duplication of efforts. In other words, it leads to better co-ordination.
e. It helps in finding out problems of work performance and aims at rectifying the same.
4. Planning improves employee’s moral.
a. Planning creates an atmosphere of order and discipline in organization.
b. Employees know in advance what is expected of them and therefore conformity can be achieved easily.
c. This encourages employees to show their best and also earn reward for the same.
d. Planning creates a healthy attitude towards work environment which helps in boosting employees moral and efficiency.
5. Planning helps in achieving economies.
a. Effective planning secures economy since it leads to orderly allocation ofresources to various operations.
b. It also facilitates optimum utilization of resources which brings economy in operations.
c. It also avoids wastage of resources by selecting most appropriate use that will contribute to the objective of enterprise. For example, raw materials can be purchased in bulk and transportation cost can be minimized. At the same time it ensures regular supply for the production department, that is, overall efficiency.
6. Planning facilitates controlling.
a. Planning facilitates existence of certain planned goals and standard of performance.
b. It provides basis of controlling.
c. We cannot think of an effective system of controlling without existence of well thought out plans.
d. Planning provides pre-determined goals against which actual performance is compared.
e. In fact, planning and controlling are the two sides of a same coin. If planning is root, controlling is the fruit.
7. Planning provides competitive edge.
a. Planning provides competitive edge to the enterprise over the others which do not have effective planning. This is because of the fact that planning may involve changing in work methods, quality, quantity designs, extension of work, redefining of goals, etc.
b. With the help of forecasting not only the enterprise secures its future but at the same time it is able to estimate the future motives of it’s competitor which helps in facing future challenges.
c. Therefore, planning leads to best utilization of possible resources, improves quality of production and thus the competitive strength of the enterprise is improved.
8. Planning encourages innovations.
a. In the process of planning, managers have the opportunities of suggesting ways and means of improving performance.
b. Planning is basically a decision making function which involves creative thinking and imagination that ultimately leads to innovation of methods and operations for growth and prosperity of the enterprise.
2.manpower can be procured from with in the organisation as well as from outside the organisation? do u agree? write the sources of procuring manpower.
MANPOWER IS SOURCED FROM INSIDE THE ORGANIZATION AS WELL AS FROM OUTSIDE THE ORGANIZATION.
THE SOURCES OF MANPOWER SUPPLY.
1. Internal Sources of Recruitment
Internal sources of recruitment means promotion of workers from the lower rank to the upper rank. Majority of companies have established a policy of promotion from within, that is vacancies other than at the lowest level are filled up by promoting the personnel to the higher office. Thus it sets up a chain of promotions that can be filled from those lowest in ranks by giving them training to be eligible for higher position in the organisation.
2. External Sources of Recruitment
It is always not possible to recruit the workers form within. Especially vacancies at lowest level or recruitment at the time to expansion of t firm or where job specification cannot be met by the present employees, the employer ha to go to external sources of manpower supply. Amongst the most commonly used outside sources are s follows:
(i) Contacts through Present Employees. It is an excellent method of manpower supply. Sometimes, the present employees recommend their friends or relatives to t orgnaisation. Generally, it is expected from the present employees that they will recommend the candidate who will have the potential and qualifications to meet the company's standard of expectation but a great care should be taken in selecting a person among those recommended by the present staff.
(ii) Former Employees. Former employees mean persons who have ever worked in the enterprise and have laid off or have left the organisation for personal reasons and no eager to return. Former employees having g good record on their credit may be preferred. These will require less initial training to b ring them up to be standard of production than stranger to the enterprise.
(iii) Intermediaries. This system of recruitment is most current in Indian industries. Intermediaries are generally known as jobbers Mukaddaurs, choudary or contractors. Management generally consult these intermediaries at the time of workers because they have to get the work done by the new entrants. This system of recruitment ha led many abuses.
(iv) Recruitment at the gate. Sometimes, direct recruitment of workers is made at the gate of the factory. Generally, the number of vacancies, nature of work and time of interview are notified on the blackboard at the gate. Prospective candidates attend the interview at the appointment time and get the appointment . This system of recruitment is generally used to recruit the unskilled workers.
(v) Unsolicited Applications. An organisation of repute draws a steady stream of unsolicited applications at eh company's office. These applications should be examined to locate good candidates.
(vi) Advertisement. Advertisement in newspapers n journals is now an extremely popular source of recruiting staff. For types of vacancies, employers resort to advertising by it is the most suitable source for filling of the vacancies of technical and senior personnel. All particulars regarding the job an the qualifications of the prospect candidate are given in t advertisement. This system attracts the applicants requisite caliber.
(vii) Schools, Colleges, University and Technical Institutions. All these are a very useful source of recruitment for a full rang of jobs. The employment mangers of the enterprises martin a close liaison with the universities and schools of technology especially for recruiting officer Apprentices or Management Trainees. Universities an technical institutions keep on panel the proposing young talents for employment an refer their names to the prospective employers as and when asked for.
(viii) Employment Exchanges. Employment exchanges are regarded as good source of recruitment for unskilled, skilled, or semiskilled operative jobs. In some cases vacancies to the filled in by the employer is compulsory to be notified to the employment exchanges to obtain the suitable candidates.
(ix) Private Agencies. Private agencies are doing a great service in recruiting the technical and profession all personnel. They provide a nationwide service in attempting to match the demand and supply of personnel. Many private agencies tend to specialize in a particular type of job like sales, office, engineers etc.
(x) Professional Bodies. Some professional bodies maintain a register of qualified persons form which they recommend the names of the job seekers to the employers when asked for.
(xi) Personnel Consultants. Consultants who specialise in the recruitment of managers an other senior officials are now being called upon the assist the management in filling of these posts. Companies hire the services of these consultants at the time of recruitment of the senior officials. But this method is open to debate and personnel managers generally oppose to the services of an outsider who is no familiar with the personnel policy being adopted.