CHAPTER - II

THEORETICAL PERSPECTIVES

Every business concern comprises of varied interlinked functions. Each department

contributes valuable information that is used to prepare effective strategies and to ensure
efficient running of the business concern. Some of the influential department have been
explained in detail.

2.1 HUMAN RESOURCES DEPARTMENT

Human recourses management is really employee management with an

emphasis on those employees as assets of the business. In this context, employees are
sometimes referred to as human capital.

“Human resource management refers to the policies one needs to carry out the people or
human resource aspects management position including recruiting, screening, training,
rewarding and appraising “Gary Dessler.g

Human Resource Management includes conducting job analyses, planning personal

needs, recruiting the right people for the job, orienting and training, managing wages salaries,
providing benefits and incentives, evaluating performance, resolving disputes and
communication with all employees at all levels.

2.1.1 Responsibilities of a HR manager

The major duties and responsibilities of a HR manager is to be actively

involved on company’s strategy formulations, to forge a two –way communication between
top management and employees, facilitate the development of organization teams and
explore their interpersonal relationship. Furthermore, to diagnose problem within the
organization teams and explore their interpersonal relationship to act as an internal change
agent, expert, consultant and facilitator. Finally the manager must evaluate the impact of
HRD interventions, to conduct resource and test how HRD has improved individual or
organizational performance.

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2.1.2 Objectives of HRM

The main objectives of HRM involve effective utilization of human resources. Forge
desirable working relationship among all employees and to promote and obtain maximum
individual development.

2.1.3 FUNCTIONS OF HRM

a. Human Resource Planning

In HRP, the number and type of employees needed to organizational

goals are determined. Hence, resource is an important part of this function because planning
requires the collection and analysis of information in order to forecast human resources
supplies and to predict future human resources supplies and to predict future human resources

needs. The basic resources planning strategy is staffing and employee development.

b. Training and Development:

The training and development function gives employees the skills and
knowledge to perform their jobs effectively, In addition to providing training for new or
inexperienced employees, organization often provide training programmer for experienced
employees whose jobs are understand change. Large organizations often have development
programmers which prepare employees for higher level responsibilities within the
organization. Training and development programmers provided useful means of assuring that
employees and capable of performing their jobs at acceptable levels.

c. Performance Appraisal

Performance appraisal function monitors employee performance to

ensure that it is at accepted levels. Human resources professional are usually responsible for
developing and administering performance appraisal systems, although the actual appraised
of employees performance is the responsibility of supervision and mangers. Besides
providing a basis for pay, promotion and disciplinary action, performance appraise;
information is essential for development since knowledge of results ( Feedback) is necessary
and guide performance improvements.

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 d. Staffing:

Staffing emphasizes the recruitment and selection of the human resources for
an organization. Human resources planning and recruiting precede the actual selection of
people for positions are organizations. Recruiting is the function, the selections functions the
most qualified applicants to fill job vacancies. In the selection function, the ,or qualified
applicants are selected for hiring from among those attracted to the organization by the
recruiting functions. On selection human resource attracted to the organization by the
recruiting functions are invalid or development and administering methods that enable
managers to decide which applicants to select and which to reject for the given jobs.

e. Compensation:

Human resource personal provide a rational method for determine how

much employees should be paid for performing certain jobs. Compensation affects staffing in
that people are generally attracted to organization . Recurring is the personal function that
attracts qualified applicants to till job hiring from among those attracted to the organization
by the recruiting functions. On selection, human resource functionaries are involved in
developing and administering methods that enable managers to decide which applicants to
select and which reject for the given jobs.

2.2 FINANCE DEPARTMENT

Finance is the life-blood of business. Without finance, no business can started nor
successfully run. Finance is needed to establish business, acquire fixed assets, to promotion
new development, encourage management to make progress and create values.

“Finance management is the application of planning and control function” – Howard and
upon. The activities expected from a finance department cover a wide tine film basic book
keeping to providing information to assisting managers in making strategic decisions.

Financial Management means planning, organizing, directing and controlling the financial
activities such as procurement and utilization of funds enterprise. It means applying general
management principles to financial resources of the enterprise.

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2.2.1 Objectives of Financial Management

The financial management is generally concerned with procurement, allocation

and control of financial resources of a concern. The objectives can be to ensure regular and
adequate supply of funds to the concern, to ensure adequate returns to the shareholders which
will depend upon the coming capacity, market price of the share, expectations of the
shareholders, to ensure optimum funds utilization. Ones the funds ate procured, they should
be utilized in maximum possible way at least cost, to ensure safety on investment.

2.2.2 FUNCTIONS OF FINANCIAL MANAGEMENT

a. Estimation of capital requirements:

A finance manager has to make estimation with regards to capital

requirements of the company. This will depend upon expected coast ad profits and future
programmers and policies of a concern.

b. Determinations of capital compositions:

Once the estimation has been made, the capital structure has to be decided.
This involves short- term debt equality analysis. This will depend upon the proportion of
equality capital a company is possessing and additional funds which have to be raised from
outside parties.

c. Investment of funds:

The finance manger has to decide to allocate funds into profitable ventures
so that there is safety on investment and regular returns is possible.

d. Management of cash:

Finance manager has to make dictions with regards management. Cash is

required for many purpose like payment of wages and salaries, payment of electricity and
water bills, payment to creditors, meeting current liabilities, maintenance of enough stock,
purpose of way materials , etc.,

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2.3 PRODUCTION DEPARTMENT

Production management deals with decisions making related to production processes

so that the resulting goods or service is produced accepting to specification, in the amount
and by the schedule demanded and at minimum cost, - Elwood Spencer

Production management means planning, organization, directing and controlling of

productions activities. Production management deals with converting raw material into
finished goods or products. It bring together deals with concerning raw material into fixed
goods or products. It bring together the 6 M’s : material manpower, machinery, market

money and management.

2.3.1 FUNCTIONS OF PRODUCTIONS MANAGEMENT

a. Production and Planning:

It is necessary to set standards and targets for each section of the production
process. The quantity and quality of products coming off a production line will be closely
monitored. In business focusing on lean production, quality will be monitored by all
employees at every stage of productions, rather than at the end as is the case for business
using a quality control approach.

b. Purchase Department:

This department will be responsible for providing the materials, components and
equipment required to keep the production process running smoothly. A vital aspect of this
role is ensuring stocks arrive on time and to the right quality.

c. Stores Department :

This department will be responsible for attacking all the necessary tools, spares, raw
materials and equipment required to service the manufacturing process. Where souring is
unreliable, buffer stocks will need to kept and these of computerized stoke control systems
helps keeps stoke at a minimal but necessary level for production to continue unhindered.

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2.4 MARKETING DEPARTMENT

“The science and art of exploring, creating and delivering value to satisfy the needs
of a target market at a profit, Marketing identifies unfulfilled needs and desires. It defines
measure and quantifies the size of the identified market and the profit potential. It pinpoints
which segments the company is capable of serving best and it designs and promotes the
appropriate products and services,”- Phillip Kotler

The actives of a company associated with buying and selling a product pt service. It
include advertising, selling and delivering products to people. Marketing is every thing a
company does to acquire customers and maintain a relationship with them.

2.4.1 Responsibilities of Marketing Department

The marketing department has overall responsibility to growing revenue. Increasing

market share and contributing to company growth and profitability.

a. Strategy

The senior member of the marketing department takes responsibility

for setting marketing strategy in line with overall company storage and objectives. The
strategy may be to increase share in a specific market sector. For example to enter a new
sector or to open a new channel of distributes such that the internet to reach a wider
geographical market.

b. Market Research:

Market research is a key responsibility for the marketing

department. Research market opportunities and gain a better understand of helps the
company identify market opportunities and gain a better understand of customer needs. It
also helps them understand competitor’s strength and weakness so they can take action to
protect business with existing customers or win business from weaker competitors.

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 c. Product Development:

The marketing department works with internal or external product

development teams to develop new products pr improve existing ones. The department
analyzes sales of existing products or improve gaps in the product range where be may
opportunities for the company. Marketing employees provided development teams with
information on customer needs and preference to help them identify the features or
improvements to incorporate in new products. Later in the product development process, the
marketing department sets prices and prepare plans to lunch the product.

d. Communication:

Marketing departments plan campaigns and develop communication

material to promote and services to customers and prospects. Depending on their available
budgets, one can plan advertising campaigns, develop e-mail marketing programs, create
promotional content for the company website write press releases or product publications,
such as product leaflets, company brochures, product data sheet or customer newsletters.

2.5 QUALITY CONTROL DEPARTMENT

Quality is an important factor when it comes to any product or services. With

the high competitions, quality has became the marker differentiator for almost all products
and services. Therefore all manufactures and service providers out there constantly look for
enhances the quality of the offering, manufacturers use techniques, quality control and quality
assurance. These two practices make sure that the end product or the service meets the
quality requirements and standards defined for the product or the service.

There are many methods followed in organization to achieve and maintain s required
level of quality. Some organization believe in the concept of the Total Quality Management
(TQM) and some others believe in internal and external standards. The standards usually
define the processes and procedures for organizational activates and assists to maintain the
quality in every aspect of organizational functioning.

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2.5.1 FUNCTIONS OF QUALITY CONTROL DEPARTMENT

a. Testing:

Quality control specialists test the manufacturing process at the beginning , middle
and end to ensure that the productions quality remains the same throughout. If the specialist
discovers an is sue.

b. Monitoring:

Monitoring consists of ongoing testing that the quality control specialist performs
on a regular basis. The specialist repeats the testing and records of each test. After the
specialist has performed several tests, they review the result and looks for any trends in
quality. The quality control specialist continues the trending of the result.

c. Auditing:

Quality control specialists also spend time auditing the quality a process which
the specialist does not work with. The quality control specialist may be auditing the work of
the regular quality control work performed auditing the quality of a process without any
current quality control work. When performing the audit, the quality control specialist
reviews the results reported by the regular quality control workers to determine if they

performed the original tests correctly.

d. Reporting:

Periodically the quality control specialist reports the quality results to management.
A high number of quality problems something is wrong with the process and there may be
many happy customers for the company. Management reviews the numbers of quality
problems and where they occur in the process and take action to address the issue.

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