D UC T IO N T O T H E V A R I OU S

INTRO
FUNCTIO N A L A RE A S O F
M A N A G E M E N T
KENNETH Z. NAVALUNA
Human Resource Management (HRM)

Human resource management has been defined as the methods of

integrating and maintaining workers in an organization so that the
organization can achieve the purposes and meet the goals for which it was
established. In other words human resource management is the process of
motivating workers in the organization so as to obtain maximum output from
them.

Human resource management (HRM) is the practice of recruiting, hiring,

deploying and managing an organization's employees. HRM is often referred
to simply as human resources (HR).
Functions of Human Resource Management

 Staffing - deals with obtaining people with appropriate skills, ability, knowledge and
experience to fill jobs in the work organization. Pertinent practices are human
resource planning, job analysis, recruitment and selection.

 Rewards - involve the design and administration of reward system. Practice include
job evaluation, performance appraisal and benefits.

 Employee Development-is analyzing training requirement to ensure that employees

possess the knowledge and skills to perform satisfactory in their jobs or to advance
in the organization. performance appraisal can identify employee key skills and
competence.
 Employee Maintenance- is the administration and monitoring of workplace
safety, health and welfare policies to retain a competent workforce and
comply with statutory standards and regulations.

 Employee Relations- may be a range of employee involvement/participation

schemes in union or non- union workplace. In a union environment, it also
includes negotiations between management and union representatives over
decisions affecting the employment contract.

ACTIVITIES OF HUMAN RESOURCE MANAGEMENT

HRM activities motivate the workforce by providing employees with satisfactory

pay, benefits and working conditions.
 The Recruitment Process - Preliminary the recruitment process begins with
consideration of the number and types of vacant posts needed to be filled in
the sources of personnel or skills needed for filling them. for internal
sources ,postings or transfers or promotion can thus be effected. In the case of
external sources there may be the need to start with advertisement of a kind
as the first step. The advertisement itself should contain adequate information
about job content, qualifications and experience, compensations and other
conditions of service, as earlier indicated.

 Selection Process - The final selection is done after the evaluation. The best
thing is to make the final selection immediately after the evaluation stage.
Some organization's especially large ones, may choose to take the results of
the interview program for further scrutiny by a committee for selection and
placement. At any rate, the candidates should be selected and placed
according to the number of vacancies existing in the various sections of the
organization and in accordance with their qualifications and experience.
 Induction of Personnel - Induction (orientation or socialization may be defined
as a systematic organizational effort to minimize problems confronting new
personnel so that they can contribute maximally to the work of the
organization while realizing personal and position satisfaction. A department
can recruit and select personnel but until these individuals become fully
adjusted to the work to be performed the environment in which it is performed
and the colleagues with whom it is performed, they cannot be expected to give
their best effort towards attainment of the goals of the organization.

 Job Performance Appraisal - This is a system of measuring a workers output or

productivity of efficiency either quantitatively. Through this technique the
activities of workers are monitored and measured with the aim of according
reward or some form of motivation. It is a tool (technique or approach) through
which the activities of units sections and workers are monitored and measured
possibly with the aim of according reward or some form of motivation.
 Reward System - Having the right people in the right jobs at the right time is
only one part of management's responsibility to develop and maintain effective
personnel policies. Employees and the managers and the organization in which
they work are also vitally interested in the conditions of the employment. Each
organization must make a number of interrelated decisions concerning the
relative magnitude of its wages and salaries (as compared with those in other
organizations) and the relative rates of different jobs within the organization.

 Staff Development - the terms training and development have different

meanings but are used synonymously by some writers. However the two terms
are different on two fold counts. In both staff training and staff development
the aim is to improve the skills and performance of the subordinates. Staff
development is itself a training process and best view in two dimensions.
 Transfer and Promotion - The department may initiate the transfer
as a disciplinary actions following a behavior problem or because
of weakening personal relationship among co-employees, changes
in the organization work, promotion, or the need to maintain well
balanced staff in every department.

 Safety, Security, and Health Services - We have seen the need for
safety, security, and health services. There is the need for
members of staff to be promptly paid, have housing
accommodations arrangements made for them by way of
providing and were not possible, assisting them to get in order to
make them feel their families and belongings are safe and secure.
Health Services are very important but because of poor financial
situations, large number of organization and the government
cannot meet up with the requirements of staff health services.
Marketing Management - Marketing consist of the performance
of business activities that directs the flow of good's and
services from producer to consumer or user (American
Marketing Association). Marketing is the management
functions that organizes and directs all business activities
involves in assessing and converting consumer purchasing
power into effective demand for a specific product or services,
and in moving it to the final consumer or user so as to achieve
the profit target or the other objectives set by the company
(British Institute of Marketing). Marketing is a social process
by which individuals and groups obtain what they need and
want through creating and exchanging products and value with
others (Kotler, 1984).
Basic Concepts Underlying Marketing

 Needs - The most basic concept underlying marketing is that of human needs. Human
needs are states of felt deprivation. These needs include basic physical needs for food,
clothing, shelter and safety; social needs for belonging and affection; and individual
needs for knowledge and self expression.

 Wants - Humans wants are desires for specific satisfaction of deeper needs. For example,
a man in the village needs rain and food and wants fertilizer. Also a man may want yam,
rice, body cream, a bag, a wrist watch, etc. but needs money.

 Demands - People have almost unlimited wants but limited resources. They want to
choose products that provides the most value and satisfaction for their money. When.
backed by purchasing power, wants become demand. That is, demands want specific
products bucked up by an ability and willingness to buy them.
 Products - People normally satisfy their wants and needs with
products offered in the market. Broadly, a product can be defined
as anything that can be offered to someone to satisfy a need or
wants.

 Exchange - Marketing takes place when people decide to satisfy

needs and wants through exchange. Exchange is therefore the act
of obtaining a desired object from someone by offering something
in return.
Function of Marketing

Merchandising Function

1. Product, Planning and Development - Product planning starts with

idea generation, idea screening and development of a prototype
product. It also takes into consideration the purchasing power of the
consumers, taste and market segmentation.

2. Standardization and Grading - The concerned with setting certain

standards/levels to accomplish the produced goods.
3. Buying and Assembling - Here, we are concerned with the
marketing institution that purchase goods or services at cheaper
prices in order to resell at minimum prices to the end-users.

4. Selling – This is concerned with selling of the finished goods to the

end-users either through the manufacturers or the marketing
channels. In order to get the attention of their target consumers, they
embark on various promotional strategies, such as discounts, promo
tools, bundle sales, bonuses, etc.
Physical Distribution

1. Storage – storing of good to meet future demands and for time and other
utilities.

2. Transportation – the movement of goods from the manufacturer down to

the target consumers. This includes material handling, warehousing, etc.

Auxiliary Function

3. Marketing Finance – That is, allowing credits to customer and as well as

obtaining credit from customers, such as Banks, individuals, etc.
2. Risk – Bearing – Risk means ‘uncertainty’. Entering into a business
entails risks, such as loss of items, road attack, weather risk, etc.

3. Market Information – Gathering necessary information about the

markets, the target consumers in terms of their purchasing
power, taste, color, choices, competition, and their products.
Operation Management

Operation management is a concerned essentially with the

utilization of resources, to include, obtaining maximum effect
from resources or minimizing their loss, under utilization or
waste. Managing operations can be enclosed in a frame of
general management functions. Operation managers are
concerned with planning, organizing, and controlling the
activities which affect human behavior through models.
 Planning – Activities that establish a course of action and guide
future decision-making is planning. The operations manager
defines the objectives for the operations subsystems of the
organization, and the policies, and procedures for achieving the
objectives.

 Organizing – Activities that establish a structure of tasks and

authority. Operation managers establish a structure of roles and
the flow of information with in the operations subsystems.
 Controlling – Activities that assure the actual performance in
accordance with planned performance. To ensure that the plans
for the operations subsystem are accomplished, the operations
manager must exercise control by measuring actual outputs and
comparing them to planned operations management. Controlling
costs, quality, and schedules are the important functions here.

 Behavior Management – Operation Managers are concerned with

how their efforts to plan, organize, and control affect human
behavior.
 Models – As operation managers plan, organize, and
control the conversion process, they encounter many
problems and must take many decisions. They can simplify
their difficulties using models like aggregate planning
models for examining how best to use existing capacity in
short-term, break even analysis to identify break even
volumes, linear programming and computer simulation for
capacity utilization, decision tree analysis for long-term
capacity problem of facility expansion, simple median
model for determining best location of facilities etc.
Objectives of Operation Management

Customer Service – the first objective of operating systems is

the customer service to the satisfaction of customer wants.
Therefore, customer service is a key objective of operations
management. The operating systems must provide
something to specification which can satisfy the customer in
terms of cost and timing. Thus, primary objective can be
satisfied by providing the right thing at a right price at the
right time.
Resource Allocation – Another major objective of
operating systems is to utilize resources for the
satisfaction of customer wants effectively, for example,
customer service must be provided with the
achievement of effective operations through efficient
use of resources. Inefficient us of resources or
inadequate customer service leads to commercial
failure of an operating system.
Managing Global Operations

The term ‘globalization’ describes business’ deployment of facilities and operations around
the world. Globalization can be defined as a process in which geographic distance becomes
a factor of diminishing importance in the establishment and maintenance of cross border
economic, political and socio-cultural relations.

There are 4 developments, which have spurred the trend toward globalization:

1. Improved transportation and communication technologies.

2. Opened financial systems.
3. Increased demand for imports.
4. Reduced import quotas and other trade barrier.
Managing global operations would focus on the following key issues:

 To acquire and properly utilized the following concepts and those related to global
operations, supply chain, logistics, etc.

 To associate global historical events to key drivers in global operations from different
perspectives.

 To develop criteria for conceptualization and evaluation of different global operations.

 To associate success and failure cases of global operations to political, social,

economical and technological environments.

 To envision trends in global operations.

 To develop an understanding of the world vision regardless of their country of origin,
residence or studies in a respectful way of perspectives of people from different races,
studies, preference, religion, politic affiliation, place of origin, etc.

Maintenance Management – In modern industry, equipment and machinery are a very

important part of the total productive effort. Therefore, their idleness or downtime become
very expensive. Hence, it is very important that the plant machinery should be properly
maintained.

The main objectives of maintenance management are:

 To achieve minimum breakdown and to keep the plant in good working condition at the
lowest possible cost.
 To keep the machines and other facilities in such a condition that permits
them to be used at their optimal capacity without interruption.

 To ensure the availability of the machines, buildings and services required

by other sections of the factory for the performance of their functions at
optimal return on investment.

Financial Management (FM)

FM is the management of financial resources – how to best find and use

investments and financing opportunities in an ever-charging and increasingly
complex environment.
Why should CS majors study FM?

First of all, financial management is a core life skill, almost everyone

needs to understand some concepts of finance to manage his/her
business & personal finances. It is generally and quite rightful said,
“Money makes the world go round”. Finance is like a life-blood for a
company. Even the best of the companies and CEOs go out of the
business because of poor financial management policies.
Management Information Systems (MIS) and Information Technology
(IT) are just a part of the overall corporate strategy which runs on
finances, the major resource.
Finance – is the science of managing financial in an optimal pattern i.e. the
best use of available financial sources. Finance consist of three interrelated
areas:

1. Money & Capital markets, which deals with securities markets & financial
institutions.

2. Investments, which focuses on the decisions of both individual and

institutional investors as they choose assets for their investment portfolios.

3. Financial Management, or business finance which involves the actual

management of firms.
Major Areas & Concepts of Financial Management – following are some of the important
areas and concepts of financial management:

Analysis Of Financial Statements: Analysis of financial statement is one of the most common
techniques of financial analysis, in which the financial performance and financial health of
a company are analyzed based on its past performance.

The following financial statements are used in the analysis process.

 Profit & Loss Statement or Income Statement – income statement reflects the operating
efficiency or profitability of a company as a result of its operations along with the net
profit available to the shareholders for a given year (usually one accounting period). This
statement provides the analyst with some insight into the financial performance of the
company.
 Balance Sheet – is a snap-shot of an organization’s financial health at a particular
time. It shows what assets are owned by the business and the sources of acquiring
these assets.

 Statement of Shareholder’s equity – Statement of shareholders’ equity provides

the share of the owners in the business.

 Statement of Cash Flows – Statement of cash flows explicitly reflects the cash
movement (inflows and outflows) during the operation in an accounting period.

 Investment Decisions & Capital Budgeting: Investments decisions are the most
critical as they usually involve huge sums of money and these decisions are likely
to bring prosperity or doom to a business.
 Risk & Return: Investors, individual or institutional, invest their money with the
expectations of earning a return on their investment. While investors wish and attempts
to earn maximum return, they are constrained by risk.

 Corporate Financing & Capital Structure: When a firm plans to expand, it needs capital or
funds. Acquisition of funds is considered to be a primary responsibility of a finance
department in an organization. There are numerous ways to acquire funds, i.e., finances
can be raised in the form of debt or equity.

 Valuation: Asset or company valuation is important not only for financial managers, but
also for creditors and investors. It is important to know the value of the company or its
assets to make important financing and investments choices.
 Working Capital & Inventory Management: working capital and inventory
management pertains to the effective management of current assets. As we will
see, an optimal and effective utilization of working capital and inventory increase
the operating efficiency of the firm.

 International Finance & Foreign Exchange: with the increasing importance of

international trade and global markets, the role of international finance has
increased manifold. In global environment, the finance managers have more
choices pertaining to investing and financing than ever before. However, it is
important to understand the implications of working in a global environment,
since fluctuations in the currency rates can convert a good financing or
investment decision into a bad one. It will include the international financial
environment and the financial implications of working in a global environment.
Information and Communication Technology Management

Information and Communication Technology (ICT) is a wide term that refers to all computer-based advanced
technologies for managing and communicating information. It is the broader than Information Technology (IT)
which is defined as the “study, design, development, implementations, support or management of computer-
based-information systems, particularly software applications and computer hardware” (Information
Technology Association of America, 2008).

With in the ICT domain, what is typically stressed by the users’ communities is the great potential tools
regardless of their ultimate goals. Usually, ICT is employed for three majors actions:

1. To record data and information: To summarize, records are made up of information, and information is
made up of data. Conversely, data can be manipulated to create meaningful information, which can then
be used to create records.
2. To transform the data and information into knowledge which can be shared.
3. Communicate the data, information and knowledge.
Impact of ICT

What is the information society? There is no single definitions of the Information Society.
The Information Society Forum (1996) in its First Annual Report defines the scope of the
Information Society by stating that, “The Information Society is already part of many lives
and at the heart of many economic activities. If we use fax/e-mail we have a toe in the
information society.

The main concern of the Information Society is the welfare of people from all nations, not
just the digital technology. Globalization of the world economy and access to information
offers a chance for poorer countries to keep pace with richer countries through information,
yet at the same time there is the risk that the gap between rich and poor will increase even
further. In general, the Information Society is characterized by the use of information for a
competitive advantage. During the agricultural age and the industrial revolution
employment opportunities were found on farms or in factories.
Response of Industry and Government to the Information Society

The computing and telecommunications industries have responded

enthusiastically to the demands of society. In fact, industry has pushed these
changes and been continuously working and introducing products into the
market that are more powerful than the previous ones. More innovative and
useful applications of technology have found their way both into the corporate
world and as consumer products. The Information Society has created
employment opportunities for the creation, organization, communication, and
acquisition of information in multimedia formats, as well as the necessary
hardware, software and communications facilities to meet consumer demand
for this information.
What are the Effects of these Developments on the User Community?

Organizations use information as an economic resource. The proper

management of information can lead to increased levels of productivity,
standards of quality, and marketability, therefore raising the level of
competitiveness of the organization.

In the manufacturing industry, information is used extensively in research and

development, management of the production process, marketing of the
product, and management of administrative functions. Extensive research can
lead to good products. Yet, product development entails not only activities in
the laboratory but also market research to determine the demand.
What are the Effects of these Developments on the User Community?

Organizations use information as an economic resource. The proper

management of information can lead to increased levels of productivity,
standards of quality, and marketability, therefore raising the level of
competitiveness of the organization.

In the manufacturing industry, information is used extensively in research and

development, management of the production process, marketing of the
product, and management of administrative functions. Extensive research can
lead to good products. Yet, product development entails not only activities in
the laboratory but also market research to determine the demand.
Communication-based Technologies

The application of communication-based technologies in the climate change

field is specific to information and knowledge transfer, as well as to raising
awareness. The outbreak of the World Wide Web (www) and the birth of the so-
called Information Society gave pervasive and capillary tools for networking to
the communities, to which it is now possible to link villages once isolated. For
these remote communities it has become finally possible, at least in theory, to
access technical progress, which improves their living conditions. Through
Communication systems, which should complementarily be employed with
traditional media, it is possible to create groups of various persons
interested ,to specific topics, offering them tools of memorization and
management of data.