Assignment

What is Organization Management?
 Organization management refers to the art of getting people
together on a common platform to make them work towards a
common predefined goal.
 Organization management enables the optimum use of
resources through meticulous planning and control at the
workplace.
 Organization management gives a sense of direction to the
employees. The individuals are well aware of their roles and
responsibilities and know what they are supposed to do in the
organization.
 Organizational management is a common management style
for modern small businesses. The organizational method allows
managers to break down the entire operation of a department
into several phases. Dividing operational functions into sections
allows management to obtain a clear picture of what the goals
of a department are and how to implement the goals most
effectively. It also allows managers to respond rapidly to factors
that affect the internal or external expectations of company.
An effective management ensures profitability for the organization. In
a layman’s language organization management refers to efficient
handling of the organization as well as its employees.

Need for Organization Management
 Organization management gives a sense of security and
oneness to the employees.
 An effective management is required for better coordination
among various departments.
 Employees accomplish tasks within the stipulated time frame as
a result of effective organization management.
 Employees stay loyal towards their job and do not treat work as
a burden.
 Effective organization management leads to a peaceful and
positive ambience at the workplace.
Essential Features of Organization Management:
1. Planning

 Prepare an effective business plan. It is essential to
decide on the future course of action to avoid confusions
later on.
 Plan out how you intend to do things.
2. Organizing
 Organizing refers to the judicious use of resources to
achieve the best out of the employees.
 Prepare a monthly budget for smooth cash flow.
3. Staffing
 Poor organization management leads to unhappy
employees who eventually create problems for
themselves as well as the organization.
 Recruit the right talent for the organization.
4. Leading
 The managers or superiors must set clear targets for the
team members.
 A leader must make sure his team members work in
unison towards a common objective. He is the one who
decides what would be right in a particular situation.
5. Control
 The superiors must be aware of what is happening
around them.
 Hierarchies should be well defined for an effective
management.
 The reporting bosses must review the performance and
progress of their subordinates and guide them whenever
required.
6. Time Management
 An effective time management helps the employees to do
the right thing at the right time.
 Managing time effectively always pays in the long run.
7. Motivation
 Motivation goes a long way in binding the employees
together.
 Appreciating the employees for their good work or
lucrative incentive schemes go a long way in motivating

the employees and make them work for a longer span of
time.
8. Resource Control
 The control process is the final stage of the organizational
management system. In this step, managers set controls to
analyze the progress and effectiveness of each plan made
during the planning phase.
 A control is a system that uses data compilations to determine if
goals are met. If results are inefficient or show over-
achievement based on initial plans, adjustments can be made
to the organization process to ensure resources are used in
the most effective manner. Data for the control process may
be delivered in company financial statements, labor reports,
internal and external complaint systems or regulatory
agencies.
The importance of a good organization and management team:
One of the most important parts of running a successful business is
that you have to have a good management team. Not only that but
you have to have your business organized in a way that your
management team can be most effective. Making sure of this can be
tricky but it has to happen if your business is going to be successful.
The reason that you need to make sure that you have a good
organization and management team for your business is that it will
keep things running smoothly. It will ensure that everybody knows
what they are supposed to be doing and what the goals of the
business are. This will keep everyone on the same page and working
towards the same goals. Most companies know that they have to
have a good management team and organization, the problem is that
they don't know how to create it.

Creating the organizational structure of your company should be fairly
straightforward. What you need to make sure of is that you have clear
lines of both communication and responsibility.
Everybody has to know who is responsible for what, this is the only
way to ensure that things get done properly. It is also important that
information get passed in an efficient manner which is why you need
to have a clear line of communication. This has to be a two way
street, it can't just be about management telling employees what to
do, there has to be a way for employees to bring issues to the
attention of management.
There are all kinds of ways that a business can be organized but
most of them use a pyramid structure with senior management on top
each supervising a group of middle managers and each of these
managers leading a group of employees. Of course for larger
companies the pyramid will be much larger. This is the way that most
companies do things but it can be altered to meet your needs and
there are many examples of successful companies that have used
different approaches
Creating a good management team can be a bit more of a challenge,
there is no doubt that good managers are critical to your business.
They are the ones who will make the important decisions so they
have to have the experience and the judgement to make good ones.
Determining whether they do or not can be a challenge and the truth
is that you may find that you do hire managers who are not up to the
job. If that is the case you have to get rid of them, bad managers can
do an enormous amount of damage to your business. A bad manager
will make bad decisions, will hurt the morale of the employees and
your relationship with customers, you can't afford to keep them
around.

Personnel Administration
 Though relevant information can be found throughout the human
resources site, the following links will guide you directly to
that which is geared toward personnel administrators.
 Administration, better known as human resources (HR) management,
is the coordination and regulation of employees in a company. It
involves organizing, recruiting, hiring, training, and assessing
workers.
 Conflict resolution and legal compliance also are important aspects.
With a good HR team doing their jobs well, a company will often be
ultimately more efficient and competitive, generating additional
revenue.
 Organization
 In most businesses, a well-organized workforce translates to greater
efficiency, productivity, and revenue. The first goal of personnel
administration, therefore, is to organize all employees in such a way
that allows them to cooperate and complete tasks in the best way
possible.
Examples of issues in this area include how many departments are
necessary, how many individuals should be in each department, what
the manager to employee ratio should be, and what alternate chains
of command should be used when managers cannot be contacted.
Organization also deals with how to assign individuals to specific
projects, as well as keeping the employees healthy and safe in the
work environment.
 Recruitment and Hiring
 Once those in a company’s personnel administration team
know how to organize workers and their projects, they begin to
recruit and hire employees actively.
 They post notices about positions available, organize or take
part in events such as job fairs, and conduct initial interviews to
find the most qualified and experienced candidates.
 They then pass on information about the final candidates to
department managers, who often conduct the last interviews
and make the call about whom to hire.

 Social equity guarantees that groups that can not compete fairly
are given preferences in job selection and promotion decisions.
 Public personnel administration consists of three general
systems.
 The first, civil service, helps to protect employee rights and
safeguard efficiency.
 What is personnel administration?
 Personnel administration is that part of administration which is
concerned with people at work and with an organization.
 It refers to the entire spectrum of an organization's interaction
with its human resources from recruitment activity to retirement
process.
 It involves personnel planning and forecasting, appraising
human performance, selection and staffing, training and
development and maintenance and improvement of
performance and productivity.
 personnel administration is closely related to an organization's
overall effectiveness.
 personnel administration aims at:
 effective utilization of human resources.
 desirable working relations among all members of the
organization
 Maximum development
 Meeting the organization's social and legal responsibilities.
 Personnel function is concerned with the procurement,
development, compensation,
integration and maintenance of the personnel of an organization for
the purpose of contributing towards the accomplishment of that
organization's major goals and objectives.
Recruitment

Job analysis
In situations such as where one or more new jobs are to be created
and recruited to for the first time, a job analysis and/or in some cases
a task analysis might be undertaken to document the actual or
intended requirements of the job. From these the relevant information
is captured in such documents as job descriptions and job
specifications. Often a company will already have job descriptions
that represent a historical collection of tasks performed. Where
already drawn up, these documents need to be reviewed or updated
to reflect present day requirements. Prior to initiating the recruitment
stages a person specification should be finalised to provide the
recruiters commissioned with the requirements and objectives of the
project.[1]
Sourcing:-
Sourcing is the use of one or more strategies to attract or identify
candidates to fill job vacancies. It may involve internal and/or external
advertising, using appropriate media, such as local or national
newspapers, specialist recruitment media, professional publications,
window advertisements, job centers, or in a variety of ways via the
internet. Alternatively, employers may use recruitment consultancies
or agencies to find otherwise scarce candidates who may be content
in their current positions and are not actively looking to move
companies may be proactively identified. This initial research for so-
called passive candidates, also called name generation, results in a
contact information of potential candidates who can then be
contacted discreetly to be screened and approached.
Screening and selection:-
Suitability for a job is typically assessed by looking for relevant skills,
knowledge, aptitude, qualifications and educational or job related

experience. These can be determined via: screening résumés (also
known as CVs); job applications; interviews. More proactive
identification methods include performance assessments,
psychological, aptitude, numeracy, physical and literacy testing. Many
recruiters and agencies use applicant tracking systems to perform the
filtering process, along with software tools for psychometric testing
and performance based assessment. [2] Performance based
assessment is a process to find out if job applicants perform the
responsibilities for which they are applying. [3] In many countries,
employers are legally mandated to ensure their screening and
selection processes meet equal opportunity and ethical standards.
In addition to the above selection assessment criteria, employers are
likely to recognize the value of candidates who also have the so-
called 'soft skills', such as interpersonal or team leadership and have
the ability to reinforce the company brand through their behavior in
front of customers and suppliers. Multinational organizations and
those that recruit from a range of nationalities are also concerned
candidates will fit into the prevailing company 'culture'.[4]
A British Armed Forces recruitment centre in Oxford.
Lateral hiring:-
"Lateral hiring" refers to a form of recruiting; the term is used with two
different, almost opposite meanings. In one meaning, the hiring
organization targets employees of another, similar organization,
possibly luring them with a better salary and the promise of better
career opportunities. An example is the recruiting of a partner of a law
firm by another law firm. The new lateral hire then has specific
applicable expertise and can make a running start in the new job. In
some professional branches such lateral hiring was traditionally
frowned upon, but the practice has become increasingly more

common. An employee's contract may have a non-compete clause
preventing such lateral hiring.
In another meaning, a lateral hire is a newly hired employee who has
no prior specific applicable expertise for the new job, and for whom
this job move is a radical change of career. An example is the
recruiting of a university professor to become chairman of the board
of a company.
On boarding
For more details on this topic, see on boarding."On boarding" is a
term which describes the process of helping new employees become
productive members of an organization. A well-planned introduction
helps new employees become fully operational quickly and is often
integrated with a new company and environment. On-boarding is
included in the recruitment process for retention purposes. Many
companies have on boarding campaigns in hopes to retain top talent
that is new to the company; campaigns may last anywhere from 1
week to 6 months.
Recruitment approaches
There are a variety of recruitment approaches and most
organizations will utilize a combination of two or more of these as part
of a recruitment exercise or to deliver their overall recruitment
strategy. In summary five basic models more commonly found are:-
An in-house personnel or human resources function may in some
case still conduct all stages of the recruitment process. In the
smallest organizations recruitment may be left to individual
managers. More frequently whilst managing the overall recruitment
exercise and the decision-making at the final stages of the selection

process external service providers may undertake the more
specialized aspects of the recruitment process.
Outsourcing of recruitment to an external provider may be the
solution for some small businesses and at the other extreme very
large organizations.
Employment agencies are established as both publicly funded
services and as commercial private sector operations. Services may
support permanent, temporary, or casual worker recruitment. They
may be generic agencies that deal with providing unskilled workers
through to highly skilled managerial or technical staff or so-called
niche agencies that specialize in a particular industrial sector or
professional group.
Executive search firms for executive and professional positions.
These firms operate across a range of models such as contingency
or retained approaches and also hybrid models where advertising is
also used to ensure a flow of candidates alongside relying on
networking as their main source of candidates.
Internet recruitment services including recruitment websites and job
search engines used to gather as many candidates as possible by
advertising a position over a wide geographic area. In addition social
network sourced recruitment has emerged as a major method of
sourcing candidates.
Recruitment:
Recruitment refers to the process of attracting, screening, selecting,
and on boarding a qualified person for a job. At the strategic level it
may involve the development of an employer brand which includes an
'employee offering'.

Recruitment process
Job analysis
In situations such as where one or more new jobs are to be created
and recruited to for the first time, a job analysis and/or in some cases

a task analysis might be undertaken to document the actual or
intended requirements of the job. From these the relevant information
is captured in such documents as job descriptions and
job specifications. Often a company will already have job descriptions
that represent a historical collection of tasks performed. Where
already drawn up, these documents need to be reviewed or updated
to reflect present day requirements. Prior to initiating the recruitment
stages a person specification should be finalized to provide the
recruiters commissioned with the requirements and objectives of the
project.
Sourcing
Sourcing is the use of one or more strategies to attract or identify
candidates to fill job vacancies. It may involve internal and/or
external advertising, using appropriate media, such as local or
national newspapers, specialist recruitment media, professional
publications, window advertisements, job centres, or in a variety of
ways via the internet. Alternatively, employers may use recruitment
consultancies or agencies to find otherwise scarce candidates who
may be content in their current positions and are not actively looking
to move companies may be proactively identified. This initial research
for so-called passive candidates, also called name generation, results
in a contact information of potential candidates who can then
be contacted discreetly to be screened and approached.
Screening and selection
Suitability for a job is typically assessed by looking for
relevant skills, knowledge, aptitude, qualifications and educational or
job related experience. These can be determined
via: screening résumés (also known as CVs); job
applications; interviews. More proactive identification methods include
performance
assessments, psychological, aptitude, numeracy, physical and literac
y testing. Many recruiters and agencies use applicant tracking
systems to perform the filtering process, along with software tools
for psychometric testing and performance based

assessment. [2]
Performance based assessment is a process to find
out if job applicants perform the responsibilities for which they are
applying. In many countries, employers are legally mandated to
ensure their screening and selection processes meet equal
opportunity and ethical standards.
In addition to the above selection assessment criteria, employers are
likely to recognize the value of candidates who also have the so-
called 'soft skills', such as interpersonal or team leadership and have
the ability to reinforce the company brand through their behavior in
front of customers and suppliers. Multinational organizations and
those that recruit from a range of nationalities are also concerned
candidates will fit into the prevailing company 'culture'.
Lateral hiring
"Lateral hiring" refers to a form of recruiting; the term is used with two
different, almost opposite meanings. In one meaning, the hiring
organization targets employees of another, similar organization,
possibly luring them with a better salary and the promise of better
career opportunities. An example is the recruiting of a partner of a law
firmly another law firm. The new lateral hire then has specific
applicable expertise and can make a running start in the new job. In
some professional branches such lateral hiring was traditionally
frowned upon, but the practice has become increasingly more
common. An employee's contract may have a non-compete
clause preventing such lateral hiring.
In another meaning, a lateral hire is a newly hired employee who has
no prior specific applicable expertise for the new job, and for whom
this job move is a radical change of career. An example is the
recruiting of a university professor to become chairman of the board
of a company.
On boarding
"On boarding" is a term which describes the process of helping new
employees become productive members of an organization. A well-

planned introduction helps new employees become fully operational
quickly and is often integrated with a new company and environment.
On-boarding is included in the recruitment process for retention
purposes. Many companies have on boarding campaigns in hopes to
retain top talent that is new to the company; campaigns may last
anywhere from 1 week to 6 months.
METHODS OF RECRUITMENT:
The following are the mostcommonly used methods ofrecruiting people.
INTERNAL METHODS:
1. Promotions and Transfers
This is a method of filling vacancies from within through transfers and
Promotions.
A transfer is a lateral movement within the same grade, from one job
to another. It may lead to changes in duties and responsibilities,
working conditions, etc., but not necessarily salary. Promotion, on the
other hand, involves movement of employee from a lower level
position to a higher level position accompanied by (usually) changes
in duties, responsibilities, status and value. Organizations
generally prepare badly lists or a central pool of persons
from which v acancies can be filled for manual jobs.
Such persons ar e usually passed on to v arious
departments, depending on internal requirements. If a person
remains on such rolls for 240days or more, he gets the status of a
permanent employee as per the Industrial Disputes act
and is ther efore entitled to all relev ant benefits, inclu
ding provident fund, gratuity, retrenchment compensation.
2. Job Posting:
Job posting is another way of hiring people from within. In
this method, the organization publicizes job opening on bulletin
boards, electronic method and similar outlets. One of the important
advantages of this method is that it offers a chance to highly qualified
applicants working within the company to look for growth

opportunities within the company to look for growth opportunities within
the company withoutlooking for greener pastures outside.
3. Employee Referrals:
Emp loyee referral means using personal contacts to l
ocate job opportunities. It is ar ecommendation from a
current employee regar ding a job applicant. The logic
behindemployee referral is that “it takes one to know one”.
Employees working in the organization, in this case, are
encouraged to recommend the names of their friends,
working in other organizations for a possible vacancy in the near
future. In fact, this has become a popular way of recruiting people in
the highly competitive Information Technology industry nowadays.
Companies offer rich rewards also to employees whose
recommendations are accepted –
after the routine screening and examining process is o
v er andjob offers extended to thes u g g e s t e d c a n d i d a
t e s . A s a g o o d w i l l g e s t u r e s , c o m p a n i e s a l s o c o n
s i d e r t h e n a m e s recommended byunions fromtime to time.
External Methods:
Direct methods:
1. Campus Recruitment
It is a method of recruiting by visiting and participating in college
campuses and their placement centers. Here the recruiters
visit reputed educational institutions such as IITs, IIMs, colleges and
universities with a view to pick up job aspirants having requisite
technical or professional skills. Job seekers are provided information
about the jobs and the recruiters,in turn, get asnapshot ofjob seekers
throughconstantinterchange ofinformation with respective institutions.A
preliminaryscreeningis done within thecampus and theshort listed students
are then subjected to the remainder of the selection process. In view
of the growing demand for young managers,most reputed organizations (such
as Hindustan Lever Ltd., Proctor &Cable, Citibank, State Bank ofIndia, Tata and
Birla groupcompanies)visit IIMs and IITs regularly andeven sponsor certain
popular campus activities with a viewtoearn goodwillin the job market.

Advantages ofthis method include:the placement centre helps locate
applicants and provides resumes to organizations; applicants can be
prescreened; applicants willnothave tobe lured away from a currentjob and
lower salaryexpectations.On the negativefront,campusrecruitingmeans hiring
people with little orno work experience.The organizations will have to offer some
kind of training to theapplicants, almost immediately after hiring. It
demands careful advance planning, looking into the placement weeks of
variousinstitutionsin different parts ofthe country. Further, campusrecruiting can
be costly for organizations situated in another city(airfare,boardingand lodging
expenses of recruiters, site visit of applicants if allowed, etc.). If
campus recruitmentis used,steps shouldbe taken byhumanresource
departmentto ensure thatrecruiters are knowledgeable concerning thejobs that
are to befilled and the organizations and understandand employ effective
interviewing skills.
Guidelines for campus recruiting: companies using college campuses
as recruitment source should considerthe following guidelines: Identifythe
potential candidates early:The earlier thatcandidate with top potential can be
 Identified,the more likely the organization willbein a position to attract
them. Employvarious meansto attractcandidates:These may include
providingresearch grants;
 Consulting opportunities to faculty members,funding university
infrastructuralrequirementsinternships to students, etc. in the long
run these will enhance the prestige of the company in the eyes of
potentialjob seekers.
 Use effective recruitment material: Attractive brochures,films, computer
diskettes,
Followed byenthusiastic and effective presentations by company officials,
correspondence with placement offices inrespectivecampusin a friendly way –
willhelp booting thecompanyimage in the eyes ofthe applicants.The company
must providedetailed information about the characteristics of entry –
level positions, especially those thathave hada major positive impact on
prior applicants’decisions to join the company.

 Offer training to campus interviews: It’s betterto devotemore time and
resources to trainon campus interviewers to answer specificjobrelated
questions of applicants.
 Come out with a competitive offer: Keep the keyjob attributes that
influence the decisions
of applicants such as promotional avenues, challenging
assignments, long term income potential, etc., while talking
to candidates.
Indirect methods:
1. Advertisements:
These include advertisements in newspapers;trade, professionalandtechnical
journals;radio and television; etc. in recent times, this medium has
become just as colorful, lively andimaginative as consumer advertising.The
adsgenerally give a briefoutline ofthe jobresponsibilities, compensation
package, prospects in organizations, etc. this method is appropriate
when (a) the organization intends to reach a largetarget group and(b) the
organizations wants a fairly good number oftalented people– who are
geographicallyspread out.To apply for advertisedvacancies let’s brieflyexamine
the wide variety ofalternatives availableto a company- as far as ads are
concerned:
 Newspaper Ads:
Here it is easy to place job ads without much of a lead time. It
has flexibility in terms of information and can conveniently
target a specific geographic location. On the negative side,
newspaper ads tend to attract only those who are actively
seeking employment at that point of time, while some of the
best candidates who are well paid and challenged by their
currentjobs maynot be aware ofsuch openings.As aresult, the
company may be bombarded with applicationsfroma large number of
candidates who are marginally qualified forthejob-adding to
its administrative burden.
 Television and radio ads:
These ads are more likely to each individual who are not
actively seeking employment;theyare morelikely to stand out
distinctly, theyhelp the organizationto targettheaudience more
selectively and they offer considerable scope for designing ads

creatively .However, these ads are expensive. Also, because
the television or radio is simply seen or heard, potential
candidates mayhave atough time rememberingthe details, making
application difficult.
2. Third Party Methods:
 Private Employment Search Firms:
Assearchfirmis a private employment agencythatmaintains computerized lists
of qualified applicants and supplies these to employers willing to hire
people from the list for a fee. Firms like Arthur Anderson,Boble and Hewitt,
ABC consultants, SB Billimoria, KPMG;Ferguson Associates offersspecialized
employment-related services to corporatehouses for a fee, especially for
top and middle level executive vacancies. AT the lower end,a number
of search firms operate– providing multifariousservices to both recruiters and the
recruitees.
 Employment Exchanges:
ASa statutoryrequirement,companies are alsoexpectedto notify(wherever the
EmploymentExchanges Act,1959, applies) theirvacancies throughthe
respective Employment Exchanges,created allover Indiafor helping
unemployed youth,displaced persons, ex-military personnel, physically
handicapped, etc. AS per the Act all employers are supposedto notify
thevacancies arisingin their establishmentsform time totime – with certain
exemptions– tothe prescribedemployment exchanges beforethey are filled.
The Act covers all establishments in public sector and nonagricultural
establishments employing25 or more workersinthe privatesector. However,
inviewofthe practicaldifficultiesinvolvedin implementingthe provisionsofthe
Act(such as filinga quarterlyreturn in respectof their staffstrength,vacancies
andshortages, returns showingoccupationaldistributionoftheir employees,etc.)
many organizationshave successfully fought court battles when they
were asked to pick up candidates from amongthose sponsoredby the
employmentexchanges.
Factors affectingrecruitment---

1. Internal Factors
For the internal mechanism of the organization, some of internal
factors that affect recruitment are as follows:
i. Size of the organization
Recruitment process is affected by the size of the organization to a
large extent. Experience suggests that larger organizations recruit
more candidates than small ones. Large organizations find
recruitment less problematic than small organizations.
ii. Recruiting Policy
The recruitment policy of the firm also affects the recruitment
process. This policy is concerned with candidates from outside the
organization, whereas others want to recruit from internal sources.
iii. Image of the organization
Image or goodwill of the organization also affects the recruitment.
Organizations having good image can attract potential and competent
candidates to a large extent. Good public relation, rendering public
services, etc. help to enhance the image and reputation of the
organization.
iv. Image of job
Jobs having good image in terms of better remuneration, working
condition, promotion, career development opportunities etc can
attract the potential and qualified candidates to a large extent.
2. External Factors
External factors are concerned with the environmental changes that
will take place in the external environment of organization. Some of
the external factors that affect recruitment policy are as follows:

i. Demographic factors
Demography is the study of human population in terms of age, sex,
occupation, religion, composition, ethnicity etc. The demographic
factors have profound influence on recruitment process.
ii. Labor market
Labor market constitutes the force of demand and supply of labor of
particular importance. For instance, if demand for a particular skill is
high relative to its supply, the recruitment process evolves more
efforts. Contrary to it, if supply is more than demand, the recruitment
process will be easier.
iii. Unemployment situations
Unemployment rate of particular area is yet another influencing factor
of recruitment process. If the unemployment rate is high, the
recruitment process will be simpler and vice versa.
iv. Social and political environment
The forces of social and political environment also influence
recruitment policy. For instance, the change in government can have
a direct impact upon recruitment policy of the company due to change
in government rules and regulations.
vi. Legal considerations
Legal considerations with regard to employment provision for under-
privileged castes etc. will have a positive impact on recruitment policy
of the organization.
Purpose & Importance of Recruitment

Attract and encourage more and more candidates to apply in
the organization.
Create a talent pool of candidates to enable the selection of
best candidates for the organization.
Determine present and future requirements of the organization
in conjunction with its personnel planning and job analysis
activities.
Recruitment is the process which links the employers with the
employees.
Increase the pool of job candidates at minimum cost.
Help increase the success rate of selection process by
decreasing number of visibly under qualified or overqualified job
applicants.
Help reduce the probability that job applicants once recruited
and selected will leave the organization only after a short period of
time.
Meet the organizations legal and social obligations regarding the
composition of its workforce.
Begin identifying and preparing potential job applicants who will
be appropriate candidates.
Increase organization and individual effectiveness of various
recruiting techniques and sources for all types of job applicants.
PERSONAL DEVLOPEMENT :
" it is the method of developing potentialities of employees so that
they can max satisfaction out of their work and give their best
efforts "

* it is an extension of general management, that of prompting and
simulating every employee to make his fullest contribution to the
purpose of a business.
* it is a function concerned with developing and utilizing the
manpower resources of the business to the optimum extent in
achieving the objectives of that business.
* first, personnel management is connected with managing people
to rank and the file employees at work. Such people or personnel do
not simply refer to rank of the file employees. The shape and form
that personnel administrative activity takes , however may differ
greatly from company and to be effective, it is tailored to fit the
individual needs of each organization.
* second, it is concerned with employees , both as individuals as
well as a group, the aim being to get better result with their
collaboration and active involvement in the organizations activities.
e.x. : it is a function or process or activity adding and
directing individual in maximizing their personal contribution.
* third, personnel management is connected with helping the
employees to develop their potentialities and capacities to the max
possible extent, so that they may derive great satisfaction from their
job. this task takes into contribution four basics element namely ,
* personality
* opportunities
* interests
* capacities

* personality : the sum total of workers reaction to his experience
and environment, personality is manifest by an individual reception by
others.
* opportunities : not only opportunities for advancement, but
opportunities to exercise his capacities and safely his interests.
* interests : not only an individual desire and ambitions but also his
instinctive impulsive tendencies, vague earning and ill defined
cravings that may or not stir him to his fullest action in performing his
duties.
* capacities : referring to those abilities or attainments, inherited or
acquired, that a worker has, is capable of and must to an certain
degree at lease exercise in his work
Since the employee is both the social and economy entity,
processing different type of various work situation; there can be
perfect adjustment of the workers in this work unit if the workers
process the exact capacity require for the work. The best or ideal
personnel management therefore recognize the individual difference
involving this element and tries to eliminate. Or reduce them. Forth,
since recruitment, selection development and utilization of and
accomodation to people are an integral [art of any organize effort,
personnel management is inherent in all organize.
Therefore it is rightly the centre pervassive system of all organization
. these point has been summerized by pigors and myers in this world:
“ personnel administration permits all types of function management ,

such as production management, financial management sales
management research management in short every member of the
management group from the top to bottom , must be effective
personnel administrator because he depends on co operative effort of
his subordinates”
Fifth, personnel management is a continuous nature in the words of
george r terry “it cannot be turned on and off water from the faucet ”it
cannot be practiced only one hour each day or one day of week.
personnel management are requires a constant alertness and
awareness of human relation and their importance in everyday
operations.
Finally, personnel management attempts at getting the willing co
operations of the people for the attainment of the device goals , for
work cannot be effective performed in isolation without promotion and
development of an a spirit de crops. Personnel management can be
of full valve to an organized only when it is consistency throughout
and applied at all levels and to all management functions in corporate
policy in the system procedures and in employment practice, etc.
this integrative aspect of personnel management is , therefore of vital
importance.
Time Management
Definition : Time management is the act or process of planning and
exercising conscious control over the amount of time spent on
specific activities, especially to increase effectiveness, efficiency or
productivity. Time management may be aided by a range of skills,

tools, and techniques used to manage time when accomplishing
specific tasks, projects and goals complying with a due date.
Main themes of time management :
The major themes arising from the literature on time management
include the following:
 Creating an environment conducive to effectiveness
 Setting of priorities
 Carrying out activity around those priorities
The related process of reduction of time spent on non-priorities.
More about time management:
Time management is the art of arranging, organizing, scheduling,
and budgeting one’s time for the purpose of generating more effective
work and productivity. There are an abundance of books, classes,
workshops, day-planners, and seminars on time management, which
teach individuals and corporations how to be more organized and
more productive. Time management has become crucial in recent
years thanks to the 24/7, busy world in which we live.
Time management is important for everyone. While time
management books and seminars often place their focus on business
leaders and corporations, time management is also crucial for
students, teachers, factory workers, professionals, and home makers.
Time management is perhaps most essential for the person who
owns his or her own business or who runs a business out of the
home. Managing work and home responsibilities under the same
roof takes a special type of time management.

An important aspect of time management is planning ahead.
Sometimes, successful time management involves putting in more
time at the outset in order to reorganize one’s life. Though many time
management books and teachings differ in their suggestions, most
agree that the first step in efficient time management is to organize
the workspace or home. Even if one's schedule is well-ordered, but
the office and filing system are a disaster, time will be wasted trying
to work efficiently in a disorderly place.
After cleaning, purging, and reorganizing the home or office, the next
step in time management is to look at all the activities one
participates in during a week. Every last detail should be written
down, including the time it takes to shower, dress, commute, attend
meetings, make phone calls, clean the house, cook dinner, pick up
the children from school, take them to after-school activities, and eat
meals. Also include time for entertainment or exercise, such as
driving to the gym, going for a walk, watching television, or surfing the
Internet.
Often, when individuals write down every last activity, they find that
there is very little time left for sleeping. The end result is that many
activities must be pared down, eliminated, consolidated, or delegated.
Prioritizing activities on a scale of one to three – one being the most
important and three being the least – can help with this task.
Lastly, good time management involves keeping a schedule of the
tasks and activities that have been deemed important. Keeping a
calendar or daily planner is helpful to stay on task, but self-discipline
is also required. The most efficient to-do list in the world will not help
someone who does not look at or follow his own daily planner.

Of course, the other side of the argument is to remember to live Get
on top of your time management, get organized, and stay on task, but
live your life. Schedule some time off every day and at least one day
off each week. Be organized, but do not be a slave to time
management.
Training and Event Management
:::: Training Management
“Training is a temporary endeavor to create unique service in relation
to capacity building.”
Training shares two critical features with a project. Training has a
definite beginning and end and the service created by training is
distinguishable from other activities. Of course, this definition does
not necessarily apply to some training programs.
For example, in on-the-job training (OJT), the period of the training is
unclear and created service is not necessary distinguishable from
other activities. Thus this definition has limits in applicability.
Nevertheless, it is still useful for examining the meaning of training in
view of management.
When do we start considering training?
When we must solve a difficult situation in the organization, we may
start considering training as a countermeasure. Before concluding
that training is the best or most practical solution, it is
recommendable to examine whether training is a solution for the
difficult situation we face.
The point of this examination is to measure the possible impact of the
training on the situation. In other words, is training able to contribute
to improving the present difficult situation?
A simple exercise is to identify five major causes of the present
difficult situation. If the person in charge is not sure whether he or she
knows the causes well, it is better to hold a meeting with people who

are familiar with the present situation.
Here are the steps in this exercise:
First, try identifying more than five causes that bring about the
present difficult situation.
Second, once you cannot find any more causes, choose the most
influential five causes.
Third, rank the selected five causes from more influential to less. If
possible, give the percentage to show the degree of influence of each
cause. The total percentage is to be adjusted to 100%.
Fourth, check whether there are any causes closely related to the
quality of human resources. Any cause related to quantitative issues
such as inadequate manpower is not relevant.
When the most influential cause is closely related to the quality of
human resources, we can go to the next step. If none of the causes
are related to the quality of human resources, it would be
recommendable to reconsider the training. In practice, however, the
result is not always clear. Sometimes the third or fourth cause may be
related to the quality of human resources but the relationship is not
very clear. In another instance, the fifth cause is closely related but
the influence from it seems very limited.
Unfortunately, there is no general rule on when you can go to the
next step in practice. If the causes are ranked as third or fourth, it
would be better to inquire the degree of the impact from the training
to the improvement of the situation. If the cause is fifth, you are
recommended to consider whether there is an alternative
countermeasure besides the training before going to the next steps.
Training Preparation
Training preparation is often not seen as substantial because it is
considered the accumulation of various tiresome tasks. However, it is
one of the crucial pitfalls that may lead to a poor result. It is fair to say

that a well-organized work plan is indispensible. Thus useful tools
such as Work Breakdown Structure
(WBS) and the Gantt chart are available. The knowledge on how to
use those tools is very important to make a well-organized work plan.
Human Capital Management
Human capital management is an approach to employee staffing that
perceives people as assets whose current value can be measured
and whose future value can be enhanced through investment.
An organization that supports human capital management provides
employees with clearly defined and consistently communicated
performance expectations. Managers are responsible for rating,
rewarding, and holding employees accountable for achieving specific
business goals, creating innovation and supporting.
In the back office, human capital management is the part of
enterprise resource planning that deals with employee records. The
records provide managers with the information they need to make
decisions that are based on data. Human capital management
software streamlines and automates many of the day-to-day record-
keeping processes and provides a framework for HR staff to manage
benefits administration and payroll, create map out succession
planning and document such things as personnel actions
and compliance with industry and government regulations.
Importance of Human Capital Management
The concept of Human capital has relatively more importance in
labor-surplus countries. These countries are naturally endowed with
more of labor due to high birth rate under the given climatic
conditions. The surplus labor in these countries is the human

resource available in more abundance than the tangible capital
resource. This human resource can be transformed into Human
capital with effective inputs of education, health and moral values.
The transformation of raw human resource into highly productive
human resource with these inputs is the process of human capital
formation. The problem of scarcity of tangible capital in the labor
surplus countries can be resolved by accelerating the rate of human
capital formation with both private and public investment in education
and health sectors of their National economies. The tangible financial
capital is an effective instrument of promoting economic growth of the
nation. The intangible human capital, on the other hand, is an
instrument of promoting comprehensive development of the nation
because human capital is directly related to human development, and
when there is human development, the qualitative and quantitative
progress of the nation is inevitable.
Services definition
• Reflecting the physical nature of their activities, manufacturing,
mining and agriculture are easier to describe and define then
are services ,which embrace a huge diversity of activities and
involve many intangible inputs and outputs.
• Consider the following attempts to define services:-
A service is an act or performance offered by one party to another.
Although the process may be tied to a physical
II. A service is an economical activity that creates value and
provides benefits for customers at specific times and places by
bringing about a desired change in, or on behalf of, the
recipient of the service.
III. .A service is consumed at the point of sale. Services are one of
the two key components of economics, the other being goods.
Examples of services include the transfer of goods, such as the

postal service delivering mail, and the use of expertise or
experience, such as a person visiting a doctor.
IV. .In marketing, Services is a sub field of marketing, which can be
split into the two main areas of goods marketing (which
includes the marketing of fast moving consumer goods (FMCG)
and durables) and the marketing of services.
V. .Services are economic activities offered by one party to
another. Often time-based, performances bring about desired
results to recipients, objects, or other assets for which
purchasers have responsibility.
VI. .Service is a valuable action, deed, or effort performed to satisfy
a need or to full-fill a demand.
VII. More amusingly services have also been described as
something that can be bought and sold, but which cannot be
dropped on your foot.
TYPES OF SERVICES
• A service type is a category of related services that share the
same schemas.
• It defines the schema attributes that are common across a set
of similar managed resources.
• Service types are used to create services for specific instances
of managed resources. For example, you might have several
Lotus Domino servers that users need access to; you might
create one service for each Lotus Domino server using the
Lotus Domino service type.

That is, service types are created from adapters that define how Tivoli
Identity Manager Express communicates with the managed
resources.
A service type is defined in the service definition file of an adapter,
which is a file that contains the profile. For example, a service type is
defined in the WinLocalProfile.jar file.
• Types of service-learning activities include direct service,
indirect service, advocacy, and how they are served,
distinguishes the different types.
• community-based research. Who is served, and Direct Service
Direct service activities are those that require personal contact with
people in need. This type of service is generally the most rewarding
for students because they receive immediate positive feedback
during the process of helping others.
Different types of services that are offered in the community:
• Household services include the services such as household
repairs or maintenance. These include the services offered by
the electricians, carpenters, masons, plumber, house painters,
appliance repair shops, and several others.
• There are many types of services that are offered in the
community by different organizations either by companies,
private agencies or by the government sector. Some of these
services are;
• Education
• Communication
• Transportation

• Trade
• Healthcare
• Real State
• Food Service
• Utilities
• Legal Services,
• Beauty Care
• Household Services
• Professional Services
• Medical Care.
• Education is among of the basic needs of society; the reason why
there are lots and growing numbers of schools that offer educational
services in pre-school, in elementary, in secondary and in college
levels. They all serve the needs of our community in the field of
education.
* Communication services are very much evident in our community
today. These services includes the use of telephones, cell phones,
computers and the internet, fax machines, telegrams, post office,
post office, news papers, radio, magazines, televisions and other
communication media.
* Transportation is among the basic needs of the people in the
community. These services include the transportation by the land, by
the air and by the sea. Transportation by lands includes the services
of public utility vehicles, taxi’s and buses. Transportation by air
includes the services offered by several air lines.

* Trade services are very much evident; the establishments that offer
these services are the malls, department stores, shopping stores,
groceries stores as well as others.
* Healthcare and medical are a service which is concerned for the
public’s health. These are the services that are offered by the
hospitals, the clinics, nursing homes, maternity homes, health
insurance companies and the like.
* Real State involves the services that are related to the sale of
property such as lots, houses, and many else.
* Utility services include the services that are needed inside the
house. These services include the electricity, the water, garbage
collections and several others.
SSeerrvviiccee PPrroocceesssseess::
Numerous proposals have been made for services. A particularly
significant classification is based on the nature of the processes by
which services are created and delivered. Marketers don’t usually
need to know the Specifics of how physical goods are manufactured;
that’s the responsibility of the people who run the factory. However,
the situation is different in services. Because customers are often
involved in service production, marketers do need to understand the
nature of the processes to which their customers may be exposed;
process is a particular method of operation or a series of actions,
typically involving multiple steps that often need to take place in
adefi.ied sequence. Service processes range from relatively simple
procedures involving only a few steps, such as filling a car's tank with
fuel, to highly complex activities, such as transporting passengers on
an international flight. Later, we show how these processes can be
represented in flowcharts, diagrams that help us to understand what
is going on and perhaps how a specific process might be improved.

A process implies taking an input and transforming it into output, but if
that's the case. What is each service organization .actually
processing, and how does it perform this task? Two broad categories
of things get processed in services: people and objects. In many
cases, ranging from passenger transportation to education,
customers themselves are the principal input to the service process.
In other instances, the key input is an object, such as a
malfunctioning computer that needs repair or a piece of financial data
that needs to be associated with a particular account. In some
services, the process is physical and something tangible takes place.
In information-based services, however, the process can be
intangible.
By looking at service processes from a purely operational
perspective, we see that they can be categorized into four broad
groups. Figure shows a four-way classification scheme based on
tangible actions to either people's bodies or customers-physical
possessions and intangible actions to either people's minds or their
intangible assets.
Each category involves fundamentally different processes, with vital
implications for marketing, operations, and human resource
managers. We refer to the categories as people processing,
possession processing, mental stimulus- processing and information
processing. Although the industries within each category may appear
to be very different, analysis will show that they do, in fact, share
important process-related characteristics. As a result, managers from
different industries within the same category may obtain useful
insights from studying one another and then create valued
innovations for their own organization.
Let's examine why these four different types of processes often have
distinctive implications for marketing, operations and human resource
strategies.

People Processing:
People Processing Since ancient times, people have sought out
services directed at themselves; being transported, fed, lodged,
restored to health, or made to look more beautiful. To receive these
types of services, customers must physically enter the service
system. Because they are an integral part of the process, they cannot
obtain the benefits they desire by dealing at arm’s length with service
suppliers; instead, they must be prepared to spend time interacting
and actively cooperating with service providers. The level of
involvement required of customers may entail anything from boarding
a city bus for a five-minute ride to undergoing a lengthy course of
treatments at a hospital. The output from these services is a
customer who has reached his or her destination or is now sporting
clean and stylishly cut hair or is now in physically better health.
It's important for managers to think about process and output in
terms of what happens to the customer because it helps them to
identify what benefits are being created. Reflecting on the service
process itself helps to identify some of the nonfinancial costs, such as
time and mental and physical effort that customers incur in obtaining
these benefits.
Possession Processing:
Possession Processing Often customers ask a service organization
to provide treatment to a physical possession, which could be
anything from a house to a computer or even a dog.
Customers are less physically involved with this type of service
than with people-processing services. Consider the differences in
your role between using passenger and freight transportation. In the
first instance, you have 10 go along for the ride in order to obtain the
benefit of getting from one location to another. With freight service,

however, you can request that the firm go to your home or office to
pick up the shipment and then wait for confirmation that it has been
delivered.
In most possession -processing services, the customer's
involvement is usually limited to dropping off the item that needs
treatment, requesting the service, explaining the problem, and later
returning to pick up the item and pay the bill. If the object to be
processed is something that is difficult or impossible to move, such as
landscaping, heavy equipment, or part of a building, the "service
factory" must come to the customer, with service personnel bringing
the tools and materials necessary to complete the job on site. In all
instances, the output should be a satisfactory solution to a customer's
problem or some tangible enhancement of the item ill question.

Mental Stimulus Processing:
Mental Stimulus Processing Services that interact with people’s
minds include education, news and information, professional advice,
psychotherapy, entertainment, and certain religious practices.
Anything touching people's minds has the power to shape attitudes
and influence behaviour. Thus, if customers are in a position of
dependency or if there is potential for manipulation, strong ethical
standards and careful monitoring are required. Receiving these
services requires an investment of time on the customer's part.
However, recipients do not necessarily have to be physically present
in a service factory. They simply have to be mentally in
communication with the information being presented. There is an
interesting contrast here with people-processing services. Although
passengers can sleep through a flight and still obtain the benefit of
arriving at their desired destination a student who falls asleep in class
will not be any wiser at the end than at the beginning!
Services such as entertainment and education are often
created in one place and transmitted by TV or radio to individual
customers in distant locations. However, these services can also be
delivered "live and in person" to groups of customers from such
locations as theatres or lecture halls. We need to recognize mat
watching a live concert on TV in one's home is not the same
experience us watching the concert in a concert hall in the company
of hundreds or even thousands of other people. In the latter instance,
managers of concert halls find themselves facing many of the same
challenges as their colleagues in people-processing services.
The core content of all services in this category is information
based-whether it's music, voice, or visual images. Therefore, such
services can easily be converted to digital format, recorded, and
made available for subsequent replay through electronic channels or
transformed into a manufactured product, such as a disk or a tape.

Information Processing:
Information Processing Information is the most intangible form
of service output, but it may be transformed into the more enduring,
tangible forms, represented by letters, reports, boots, tapes, or disks.
Among the services that are highly dependent on effective collection
and processing of information are financial and professional services,
such as accounting, law, Market -research, management consulting,
and medical diagnosis.
The extent of customer" involvement in both information and
mental stimulus- processing services is often determined more by
tradition and a personal desire to .meet the supplier face-to-face than
by the needs of the operational process, Strictly speaking, personal
contact is quite unnecessary
in such industries as banking or insurance. Why should managers
subject their firms to all the complexities of managing a people-
processing service when they could deliver the same core product at
arm's length? As a customer, why go to the service factory when
there's no compelling need to do so?
Habit and tradition often lie at the root of existing service
delivery systems and service use patterns. Professionals and their
clients may, say they prefer to meet face to face because they feel
they learn more about each other's needs, capabilities and
personalities that way. However, experience shows that successful
personal relationships, built on trust, can be created and maintained
purely through telephone, Web sites, or e-mail contact. As technology
improves and people continue to become more comfortable with
videophones or the Internet, we can expect to see a continuing shift
to arm's-length transactions.

Effects of Services
Service is the provision of service to customers before, during and
after a purchase. Service is a series of activities designed to enhance
the level of customer satisfaction – that is, the feeling that a product
or service has met the customer expectation.
7 Rules for Good Service:
Good customer service is the lifeblood of any business. You can offer
promotions and slash prices to bring in as many new customers as
you want, but unless you can get some of those customers to come
back, your business won't be profitable for long.
Good customer service is all about bringing customers back. And
about sending them away happy - happy enough to pass positive
feedback about your business along to others, who may then try the
product or service you offer for themselves and in their turn become
repeat customers.
I know this verge on the kind of statement that's often seen on a
sampler, but providing good customer service IS a simple thing. If you
truly want to have good customer service, all you have to do is
ensure that your business consistently does these things:
1) Answer your phone.
Get call forwarding. Or an answering service. Hire staff if you need to.
But make sure that someone is picking up the phone when someone
calls your business.
2) Don't make promises unless you will keep them.
Not plan to keep them. Will keep them. Reliability is one of the keys
to any good relationship, and good customer service is no exception.

If you say, “Your new bedroom furniture will be delivered on
Tuesday”, make sure it is delivered on Tuesday. Otherwise, don't say
it. The same rule applies to client appointments, deadlines, etc..
Think before you give any promise - because nothing annoys
customers more than a broken one.
3) Listen to your customers.
Is there anything more exasperating than telling someone what you
want or what your problem is and then discovering that that person
hasn't been paying attention and needs to have it explained again?
From a customer's point of view, I doubt it. Can the sales pitches and
the product babble. Let your customer talk and show him that you are
listening by making the appropriate responses, such as suggesting
how to solve the problem.
4) Deal with complaints.
No one likes hearing complaints, and many of us have developed a
reflex shrug, saying, "You can't please all the people all the time".
Maybe not, but if you give the complaint your attention, you may be
able to please this one person this one time - and position your
business to reap the benefits of good customer service.
5) Be helpful - even if there's no immediate profit in it.
The other day I popped into a local watch shop because I had lost the
small piece that clips the pieces of my watch band together. When I
explained the problem, the proprietor said that he thought he might
have one lying around. He found it, attached it to my watch band –
and charged me nothing! Where do you think I'll go when I need a
new watch band or even a new watch? And how many people do you
think I've told this story to?
6) Train your staff (if you have any) to be always helpful, courteous,
and knowledgeable.
Do it yourself or hire someone to train them. Talk to them about good
customer service and what it is (and isn't) regularly. Most importantly,

give every member of your staff enough information and power to
make those small customer-pleasing decisions, so he never has to
say, "I don't know, but so-and-so will be back at..."
7) Throw in something extra.
Whether it's a coupon for a future discount, additional information on
how to use the product, or a genuine smile, people love to get more
than they thought they were getting. And don’t think that a gesture
has to be large to be effective. The local art framer that we use
attaches a package of picture hangers to every picture he frames. A
small thing, but so appreciated.
Effects of Good Service:
The customer service has a huge impact on your overall business.
This is the only way through which you can keep in touch with your
clients and make sure that they are happy with your services and
products. Dubai Customer Service has evolved in the past decade
and it is still showing great progress. However, the small companies
and organizations got more benefits from better customer service
than any international or large scale company.
1) Client Loyalty and Retention:
Retaining clients is the biggest challenge in the online business
world. A company must have some loyal and trustworthy clients who
will keep coming back for more. Attracting customer is easier than
retaining them. That is why, most of the small businesses in the UAE
are spending more money on their current clients rather than on
advertisements to get new clients. More than that, these companies
are investing their time and marketing budget on their existing clients.
This simple process helps these companies to manage their clients
and make them loyal with their company.
2) New Business and Referrals:
This is actually an understood effect. If you keep your existing
customers happy then they will bring their business to you. These
small-scale companies show that you need not to spend thousands of

dollars on advertisement to keep your business going. If your
customer care system is good then your retained clients will do
enough advertisement for you. You should believe in word of mouth
advertisement. Several small-scale companies have become brands
in their respective fields because of their clients.
3) Sales Increase:
This is perhaps the best and most important benefit of customer
care systems. Every company wants to succeed and make more
money; and a good service to the customers can do that for you. If
you can amaze your clients and visitors with efficient and organized
services then they will definitely do business with you. If your
operators can handle the service then your prospective clients can
become your regular clients. All you have to do is make your clients
feel good and they will spend their money on your products and
services.
Effects of Poor Service:
If a company provides poor customer service, it will have many
disgruntled customers. Many companies have gone out of business
because of poor customer service. More than ever, customers want
to be treated with respect.
1) Lost Market Share
When you provide poor customer service, you will lose market share.
Your competitors will begin to take over your customers. A
disgruntled customer will quickly spread the word about the poor
service he received from your company.
2) Decreased Profits
Bad customer service can lead to decreased company profits. When
profits tumble, stock value can decrease as well. This will adversely
affect shareholders.
3) Low Morale

Your customer service department will become inefficient and
ineffective. They will spend the majority of their time on the phone
arguing with customers. This can lead to low morale and high
turnover. No one wants to work for a company that is not top-notch.
4) Change in Management
Poor customer service can lead to a change in management.
Sometimes a new leader can exercise a certain amount of discipline,
which will turn things around.
5) Increased Training Expenses
If a company provides poor customer service, it will incur expenses to
train employees on new techniques and procedures for customer
service. The company will also have to train new employees as a
result of the turnover. Expenses will increase, and sales will
decrease.
Software As a Service: -
What is SaaS?
Software as a service (or SaaS) is a way of delivering applications
over the Internet—as a service. Instead of installing and maintaining
software, you simply access it via the Internet, freeing yourself from
complex software and hardware management. SaaS is a new model
of how software is delivered. SaaS refers to software that is accessed
via a web browser and is paid on a subscription basis (monthly or
yearly). Different from the traditional model where a customer buys a
license to software and assumes ownership for its maintenance and
installation, SaaS presents significant advantages to the customer.
SaaS is faster and a cost effective way to getting implemented. There
are no hardware, implementation or acquisition costs involved to run
the application from the customer's side. It's the responsibility of the
SaaS vendor (us) to manage and run the application with utmost
security, performance and reliability.

Since customers pay a subscription, they have immediate access to
the new features and functionality. Unlike traditional software where
upgrades would happen once a year or once in 6 months (with the
vendor coming to your office with a CD), the SaaS vendor
continuously pushes new updates, fixes to the application, which is
immediately accessible by the customer. This reduces the length of
time it takes a customer to recognize value from the software.
Since the software application is delivered as a service, its important
for the vendor to focus on customer service and experience. Since
this is on a subscription model, the vendor is judged on a month-
month basis and the pressure to innovate or risk losing business is
greater. SaaS can be used by Windows, Linux, or Mac users,
providing true platform independence over the Internet.
SaaS applications are sometimes called Web-based software, on-
demand software, or hosted software. Whatever the name, SaaS
applications run on a SaaS provider’s servers. The provider manages
access to the application, including security, availability, and
performance.
SaaS: The Payoff
SaaS customers have no hardware or software to buy, install,
maintain, or update. Access to applications is easy: You just need an
Internet connection.
New to SaaS? Welcome!
If you’re just starting to explore the concept of SaaS, this is the place
to find out what SaaS can do for you, see how SaaS is different,
identify questions about SaaS, and learn more about developing
SaaS applications.

SaaS Characteristics : A good way to understand the SaaS model is
by thinking of a bank, which protects the privacy of each customer
while providing service that is reliable and secure—on a massive
scale. A bank’s customers all use the same financial systems and
technology without worrying about anyone accessing their personal
information without authorization.
A “bank” meets the key characteristics of the SaaS model:
Multitenant Architecture
A multitenant architecture, in which all users and applications share a
single, common infrastructure and code base that is centrally
maintained. Because SaaS vendor clients are all on the same
infrastructure and code base, vendors can innovate more quickly and
save the valuable development time previously spent on maintaining
numerous versions of outdated code.
Easy Customization
The ability for each user to easily customize applications to fit their
business processes without affecting the common infrastructure.
Because of the way SaaS is architected, these customizations are
unique to each company or user and are always preserved through
upgrades. That means SaaS providers can make upgrades more
often, with less customer risk and much lower adoption cost.
Better Access
Improved access to data from any networked device while making it
easier to manage privileges, monitor data use, and ensure everyone
sees the same information at the same time.
SOFTWARE AS A SERVICE
 INTRODUCTION

 Software as a service is a model of software delivery where the
software company provides maintenance, daily technical operation,
and support for the software provided to their client.
Software delivered to home consumers, small business, medium and
large business. It assumes the software is delivered over the internet.
The SaaS vendor assumes all the support, training, infrastructure and
security risks in exchange for the recurring subscription fees. The
SaaS service model is designed to deliver business applications
anywhere, anytime which in turn requires the SaaS vendor to employ
dedicated support teams and staff that make themselves available to
customers on short notice.
Along with the personnel comes reserve capacity to handle any
spikes in usage, outages or network mishaps and to do this
continuously, globally and securely.
A typical SaaS deployment does not require any hardware and can
run over the existing Internet access infrastructure. Sometimes,
changes to firewall rules and settings may be required to allow the
SOFTWARE
INTERNET
SERVICE
SERVICE

SaaS application to run smoothly. A SaaS application can be
configured using APIs but multi-tenant SaaS applications cannot be
completely customized.
Architecturally, the preferred SaaS model is multi-tenant.
 What Are the Requirements that Drive the Acquisition of a New
Software Application?
i. End-User Requirements
ii. Business Requirements
iii. Company/Corporate Requirements
iv. Operational and IT Requirements
 In summary the key characteristics of a SaaS application are:
1. No difference between the license fee and the hosting fee.
2. The application is delivered over a web browser or other thin client.
3. The application is configurable, but not customizable.
 What are the cost drivers companies need to look at when
completing a TCO analysis?
1. Capital Expenses
With SaaS, there are no perpetual software licenses to buy.
The nature of SaaS is that you pay for what you use. Most SaaS
models have a recurring cost structure. You pay a monthly or annual
service fee for as long as you use the service. This service fee
typically includes maintenance, support, training and upgrades and is

inclusive of all hardware, networking, storage, database,
administration and other costs associated with SaaS delivery.
2. Design and Deployment Costs
Most SaaS applications can be deployed and put into
production much faster and for a fraction of the cost compared to a
traditional software solution. This is very important when the
opportunity costs of getting the application out are high. On the flip
side, because a SaaS application is a multi-tenant application, there
are less ways to customize the application to fit the business process.
3. Ongoing Infrastructure Costs
Other than additional Internet bandwidth needs, there are
almost no incremental infrastructure costs to handle the growth of a
SaaS application. Depending on the SaaS application, the IT
organization may also have to deploy a desktop application to allow
the end-user to communicate with the application.
4. Ongoing Operations, Training and Support Costs
SaaS vendors are responsible for the end-to-end delivery of the
application. The only responsibility of the IT organization is to make
sure that the necessary ports on the firewall are open and that there
is enough Internet access capacity available to allow the end-user
base to communicate with the application.
SaaS is a recurring service, so for a SaaS vendor the sale does
not end when the initial contract is signed. If a customer does not use
the application, they can simply choose not to renew the contract at
the end of the contract term. This is called churn.
A traditional software vendor does not have to worry about
churn, since customers buy upfront perpetual user licenses. As a
result, SaaS vendors have a vested interest in seeing customers
widely adopt and use the application. It is for this reason that almost
all SaaS vendors focus on making their products easy to use and
offer initial and ongoing end-user training, and this training is in most

cases included in the service fees. This is for the same reasons they
offer ongoing 19training services; if customers churn because of
training or support issues, it will have an immediate impact to the
SaaS vendor’s bottom line.
PAYROLL SYSTEM
Payroll Definition:
Payroll is defined as a method of administrating employees’ salaries in the
organizations. The process consists of calculation of salaries and tax
deductions of the employees, administrating the retirement benefits and
disbursements(payment) of salaries to employees. It can also be called as an
accounts activity which undertakes the salary administration of employees in
the organization.
Administrating the employees’ salaries is not an easy task, the HR and
accounts department work together to calculate and disburse the salary to the
employees. Thus, payroll management can be further subdivided into two
sub processes, i.e. Payroll accounting and payroll administration.
Payroll accounting calculates the payment of work done by an employee.
Payroll function does the following:
1. Compute employees gross salary
2. Make necessary deductions
3. Calculate Net salary
4. Generate Cheques or direct deposits.
Payroll Accounting:
Payroll accounting involves calculations of employees’ salaries and tax
deductions. It also undertakes the activities such as preparation of tax
returns, maintaining the payroll records, etc.
Payroll Administration:
Payroll Administration involves managerial activities such as maintaining
employees’ records, referring employment laws. Here, the HR comes into

picture which maintains the daily record if employees attendance.
Database of employees is maintained. Employee’s details such as name,
employee ID, basic salary, daily attendance, etc are recorded. Gross Salary is
calculated after adding the allowances and incentives to the basic salary of
the employees. Net salary is calculated by deducting the tax and other
calculated deductions (loan installments, etc).
Payroll refers to the administration of employees' salaries, wages, bonuses,
net pay, and deductions. It consist of the employee ID, employee name, date
of joining, daily attendance record, basic salary, allowances, overtime pay,
bonus, commissions, incentives, pay for holidays, vacations and sickness,
value of meals and lodging etc. There are some deductions such as PF, taxes,
loan installments or advances taken by employee.
Payroll is administered on monthly basis and annual basis.
While administrating the monthly payroll basic salary, HRA, conveyance,
and other special allowances such mobile, etc are considered. There are
some deductions
which are provident fund (12%) of the salary, taxes and other deductions.
Deductions such as tax and loan/advances taken by the employee from
organizations are deducted only where applicable. Dearness Allowance and
House rent allowance is provided at a fixed rate stated by the employment
law. Provident fund is deducted from the gross salary of employee on the
monthly basis as per the employment law, which is provided later to the
employee. Organizations also contribute the same amount to the provident
fund of the employee.
Annual payroll consists of leave travel allowances, incentives, annual

bonuses, meal vouchers/reimbursements, and medical
reimbursements(compensations for loss).
Allowances, incentives, bonuses and reimbursements are based on
organizational policies. Some organizations provided the allowances on a
fixed rate say 10% or 12% of the basic salary. Some organizations go for
performance based incentives.
Calculation of gross salaries and deductible amounts is a tedious task which
involves risk. Some of the organizations use the traditional manual method
of payroll processing and some go for the advanced payroll processing
software. An organization opts for any of the following payroll processing
methods available::
Manual System:
Manual payroll system is the traditional payroll system which involves pen
and ink, adding machine, spreadsheet, etc instead of computers, software
and other computerized aids. The process was very popular when there were
no computerized means for payroll processing.
Now-a-days it is only few small scale organizations in the remote(far) areas
that use the manual payroll. Sometimes the construction industry and
manufacturing industry also use the manual payroll systems for the
contractual labour, as theses contracts are on daily/weekly basis.
There is full control in the hands of owner. But the process is tedious, time
consuming and risky as it is more prone to errors.
Accountant:
Accountant is a professional having a degree/diploma course in
finance/accountancy. He/she is responsible for all the activities related to
payroll accounting. He/she has the sound knowledge of accounting
principles and globally accepted standards.
The process adds costs to the organization. It involves paying someone who
is responsible for calculating the salaries of others. The financial control
regarding salary goes in the hand of accountant.

Payroll Software:
In today’s computerized environment, payroll system has also developed
itself into automated software that performs every action needed by the
payroll process. It helps in calculating the payable amounts and deductions
very easily. It also helps in generating the pay slips in lesser time.
Automated calculations result in no errors. Data is validated automatically
by the software.
It needs professionals to make use of the software for its efficient working.
Payroll Outsourcing:
Payroll outsourcing involves a third party (an outsourcing company) in the
calculations of salaries and deductions. The outsourcing organization is
responsible for all the activities of the payroll accounting. It saves time and
cost for the organization. If there is more number of employees (say more
than 900-1000) in the organization, payroll outsourcing would be very much
beneficial.
The data is provided to the consultants/outsourcing firms. The various
payroll functions undertaken by the outsourcing organizations are as
follows:
1. Analysis of Payroll records, payroll taxes
2. Medical claim processing
3. Employee Insurance & Provident fund processing
4. Quality Audit procedures & planning
Introduction to logistics
The key components of distribution have been an important feature of
industrial and economic life for countless years, but it is only in the
relatively recent past that distribution has been recognized as a major
function in its own right. The main reason for this has probably been

the nature of distribution itself. If is a function made up of many sub-
system, each of which has been, and may still be, treated as a
distinct management operation.
Both the academic and the business world now accept that there is a
need to adopt a more holistic view of these different operations in
order to take into account how they interrelate and interact with one
another.
The appreciation of the scope and important of distribution and
logistics has led to a more scientific approach being adopted towards
the subject. This approach has been aimed at the overall concept of
the logistics function as a whole and also at the individual sub-
system. Much of this approach had addressed the need for, and
means of, planning distribution and logistics, but has also considered
some of the major operational issues.
This first chapter of the book provides an introduction of some of the
very basic aspects of distribution and logistics. It begins with a
consideration of the scope and definition of distribution and logistics,
and then looks at some of the main elements that are keys to the
function itself. A review of the historical growth of distribution and
logistics is followed by an assessment of its importance throughout
the world. Finally, a typical distribution and logistics structure is
described and discussed.
Scope and definition
Parallel to the growth in the importance of distribution and logistics
has been the growth in the number of associated names and different
definitions that are used. Some of the different names that have been
applied to distribution and logistics include:
 Physical distribution;
 Logistics;
 Business logistics;

 Materials management;
 Procurement and supply;
 Product flow;
 Marketing logistics;
 Supply chain management;
 Demand chain management;
And there are several more.
There is, realistically, no “true” name or “true” definition that should
be pedantically applied, because products differ, companies differ
system differ. Logistics is a diverse and dynamic function that has to
be flexible and has to change according to the various constraints
and demand imposed upon it and with respect to the environment in
which it works.
So these many terms are used, often interchangeably, in literature
and in literature and in the business world. One quite widely
accepted view shows the relationship as follows:
Logistics = Supply + Materials management + Distribution
As well as this, logistics is concerned with physical and information
flow and storage from raw material through to the final distribution of
the finished product. Thus, supply and materials management
represents the storage and flows into and through the production
process, while distribution represents the storage and flows from the
final production point through to the customer or end user. Major
emphasis is now placed on the importance of information as well as
physical flows and storage and an additional and very relevant factor
is that of reverse logistics –the flow of used products and returnable
packaging back through the system.

Importance of logistics and distribution
It is useful at this point to consider logistics in the context of
business and the economy as a whole. Logistics is an important
activity making extensive use of the human and material resources
that affect a national economy. Several investigations have been
undertaken to try to estimate the extent of the impact o logistics on
the economy.
One such study indicated that about 30 per cent of the working
population in the UK are associated with work that is related to
logistics. A recent study undertaken in the USA indicated that
logistics alone represented between 10 and 15 per cent of the gross
domestic product of most major. North American, European and
Asia/Pacific economics. The two lowest-cost countries are the UK
and the United states, probably because there has been a greater
recognition of the importance of logistics in these two particular
countries for many years now. The average for all countries is only
about 2.5 percentage point higher, relatively low, because in recent
years the importance of logistics has been recognized in many more
countries.
LOGISTIC PROCESSES
INTRODUCTION:
These processes are the methods used to ensure that the business
operates effectively so that all the major objectives are achieved. The
aim is for a streamlined operation that works across the various
functional boundaries existing within any company. Thus, processes
need to be supply-chain oriented. One of the main problems with

logistic processes is that they are very often tied in with a number of
different functional elements of the business and so it is difficult for
them to operate efficiently.
THE IMPORTANCE OF LOGISTIC PROCESSES:
The reason that the concept of logistics process has been highlighted
in recent years is a development of the move away from the
functional view of logistics. The chief beneficiary of this has been the
final customer.The aim of any supply-chain is to ensure that cross-
company and cross-supply-chain activities are directed at achieving
customer satisfaction for the end user.
Processes have generally been derived to enable each separate
function within an organization to undertake its particular role, but
they are not streamlined to act across all company functions as a
united whole. The aim of order fulfillment should be to ensure that a
customer’s order is received, checked, selected and delivered
according to the customer’s requirements, with no disruption and with
complete accuracy.
Typical functional errors might be:
Incorrect transcription of the original order requirements;
Incorrect notification of availability;
Damage to the goods;
Late delivery;
Delivery to an incorrect address;
Invoicing to the incorrect address;
To avoid problems such as these, some companies now seek
to redesign their key logistics processes. There are three
essential elements. Properly designed processes should be

customer-facing, that is, they should aim specifically to satisfy
customer demands and expectations. They should also be
cross-functional or indeed where possible they should be
supply-chain-oriented in that they cross not just company
functions but also the boundary between companies. Finally,
they should be time-based in that they need to reflect the
importance of time as a key element in the logistics offering.
KEY LOGISTICS PROCESSES:
Typical examples are:

Order fulfillment: It is concerned with the ability to turn a customer’s
specified requirements into an actual delivered order. Thus, it
embraces many of the traditional functions usually recognized as
being a part of the logistics operation. It will involve the information
elements of receiving and documenting an order through to the
physical means of selecting and delivering the goods. This is
reasonable first step in process redesign, but ultimately there should
ideally be a seamless process for the operation as a whole.
New product introduction: This is an area where many companies
find they have problems. There are many logistics issues related to
the introduction of new products into the marketplace. The
consequence of introducing new products using existing processes
is usually existing processes is usually one of two possibilities.
New product development: In this example, the idea is to design the
product so that it can reach the market as quickly as possible from
the initial design plan through to availability. The aim is to link the
development of the product with the logistical requirements so that all
secondary developments can be identified and re-engineered in the
shortest possible time.

Product returns: There is a growing requirement in many businesses
to provide an effective process for the return of products. This may be
for returns that come back through the existing distribution network or
through a new one that is specifically set up. It may also be for
product returns that will be reworked or repackaged to go into stock,
product returns for subsequent disposal or packaging returns that
may be reused or scrapped.
Provision of spaces: For many companies the supply of a product or
series of products is inextricably linked to the subsequent provision of
space parts to support the continuous use of the initial products .For
many logistic operations, neither the physical structure nor the
associated processes are really capable of providing a suitable
support mechanism for space parts as well as for original equipment.
Information management: Advances in information technology have
enabled a vast amount of detailed data and manipulated very easily.
This has led some companies to recognize the need to devise
suitable processes to ensure that data are collected and used in a
positive and organized way. This enables a much more positive,
proactive approach to be adopted when considering particular
customer relationship.
There are other associated processes that could also be relevant,
such as:
Supplier integration;
Quality;
Strategic management;
Maintenance
Human resource management
Environmental management
A number of different concepts have been proposed to try to help
differentiate the type and importance of the various processed that
might be relevant to any given company as it tries to position itself
with its customers. Perhaps the most useful of these is known as the

process triangle. The process triangle is based on three different
process categories are as follows:
Basic processes: Those processes that are not really recognized as
essential to a business but are nevertheless a prerequisite.
Benchmark processes: Those processes that are seen to be
important to the customer and must be of at least an acceptable
standard even to begin to complete satisfactorily in a given market.
Procurement
Definition:
In this narrow sense the term ‘Purchasing’ refers merely to
the act of buying an item at a price. This very narrow conception of
purchasing has been gradually widened during the last 70 years.

A broader meaning of purchasing makes it a managerial
activity, which goes beyond the simple act of buying and includes the
planning and policy activities covering a wide range of related and
complementary activities. included in such activities are the research
and development strategies required for the proper selection of
materials and sources from which those materials may be bought, the
follow-up to insure proper delivery, the development of proper
procedures, methods, and forms to enable the purchasing
department to carry out the established policies; the co-ordination of
activities of the purchasing department with such other internal
division of the concern as traffic, receiving, store-keeping, and
accounting, so as to facilitate smooth operations; and the
development of a technique of effective communication with the top
management of the company so that, a true picture of the
performance of the purchasing function is presented.
Some writers use the term ‘Procurement’ instead of
purchasing. The term procurement is broad in its meaning and covers
the duties performed by purchasing as well as such additional
function of materials supervision and management as inventory
control, receiving, incoming inspection and salvage operations.
The term procurement is too broad and hence is not used
by many writers on the subject and by people who practice the
profession. The term purchasing is most appropriate and hence in
popular usage.
The buyer or purchasing officers are the people responsible
for discharging purchasing functions. They are the full time staff of the
company. The head of the section or the department is purchasing
agent also variously known as the purchasing officer, purchasing
manager or simply buyer. The department where all the purchases
operate is called the purchasing department.

The purchasing department is often called the supply
department when the former is also responsible for storing things
bought and stock control of what is stored.
We prefer to use the term purchasing department to supply
department. For us, storing and stock or inventory control is
independent functions to be handled by separate staff. They cannot,
be attached to purchasing department.
Importance of Purchasing:
1. Purchasing function provide materials to the factory without
which wheels of machines cannot move.
2. A one percent saving in materials cost is equivalent to a 10
percent increase in turnover. Efficient buying can archive this.
3. Purchasing manager is the custodian of his/her firm’s purse
as he/she spends more than 50 per cent of his/her company’s
earning on purchases.
4. Increasing proportion of one’s requirements is now bought
instead of being made as was the practice in the earlier days.
Buying, therefore, assumes significance.
5. Purchasing can contribute to import substitution and save
foreign exchange.
6. Purchasing is the main factor in timely execution of industrial
projects.
7. Materials management organizations that exist now have
evolved out of purchasing departments.
8. The stream of salesmen and direct mail advertisement
entering the purchasing department day-in and day-out brings

information about new products, materials and new ways of
doing old jobs.
9. Other factors like : (i) Post-war shortages,(ii) cyclical
swimming of surpluses and shortages and the first rising
materials costs,(iii) heavy competition, and
(iv) Growing world- wide markets have contributed to the
importance of purchasing.
Setting the Procurement objectives:
When using Procurement objectives, consideration should be
given to the following:
- Ensuring the supply of raw materials and other supplies.
- Vendors- managed inventory (VMI)
- The quality of supplies
- Product specification
- The price
- The origin of the supplies
- The method of supply, e.g. IIT-style deliveries
- The method of transport used
- A hierarchy of importance, e.g. Key raw materials would have
precedence over office stationary
- Whether to make yourself or buy from a supplier
Functions of purchasing department:

The definition given for purchasing at the beginning of this
topic should give us an idea about the function of purchasing
department. For greater clarity we list the functions below. It may be
emphasized that some of the functions are sole responsibility of the
purchasing department, some are shard with other departments, and
the remaining are the responsibilities in which the purchasing
department has considerable interest.
1. Responsibilities often fully delegated to the purchasing function
:
(a) Obtaining prices
(b) Selecting vendors.
(c) Awarding purchase orders.
(d) Following up on delivery promises.
(e) Adjusting and settling complaints.
(f) Selecting and training of purchasing personnel.
(g) Vendor relations.
Supply Chain Management
The term Supply Chain Managementis now commonly used. The
total logistics concept advocates the benefits of viewing the various
elements of logistics as an integrated whole.Supply chain
management is similar, but also includes the supplier and the end
user in the process, the upstream (supply side) and downstream
(demand side) partners in the supply chain. This is the major
difference between supply chain management and traditional
logistics.
There are four distinct differences claimed for supply chain
management over the more classic view of logistics, although some

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