Functional Areas of Management BY : SAMIR KUMAR PANDA ( DEPT. OF ELECTRICAL ENGINEERING ) Production Management Production management refers to the process of managing the activities of a business to furnish desired outputs of products and services. It involves planning, executing, and directing operations to convert raw materials into finished goods and services . Production management helps to minimize the cost of production. It tries to maximize the output and minimize the inputs. This helps the firm to achieve its cost reduction and efficiency objectives . Functions Selection of product and designing. Selection of production process. Estimation of right production capacity. Production planning. Production control. Quality and cost control. Inventory Control. Maintenance and replacement of Machines Activities Commencing with the selection of location, production management covers such activities as acquisition of land, constructing building, procuring and installing machinery, purchasing and storing raw materials and converting them into saleable products. The four basic activities in the production cycle are: (1) product design; (2) planning and scheduling; (3) production operations; and (4) cost accounting Productivity the average measure for the efficiency of a production process – would just be the ratio between process output units and process input units. The labor productivity might, for example, be four output units (such as car or netbook parts) per labor hour. Quality control Quality control is a process through which a business seeks to ensure that product quality is maintained or improved and manufacturing errors are reduced or eliminated. It requires the business to create an environment in which both management and employees strive for perfection. Production Planning and control Production planning is required for scheduling, dispatch, inspection, quality management, inventory management, supply management and equipment management. Production planning and control (or PPC) is defined as a work process which seeks to allocate human resources, raw materials, and equipment/machines in a way that optimizes efficiency. ... It enables efficiency, coordination, and the leveraging of production-related data to drive improvement Inventory Management Need for Inventory management Inventory management helps companies identify which and how much stock to order at what time. It tracks inventory from purchase to the sale of goods. The practice identifies and responds to trends to ensure there's always enough stock to fulfill customer orders and proper warning of a shortage. Inventory Management Techniques Minimum Order Quantity. Minimum order quantity (MOQ) is the lowest set amount of stock that suppliers are willing to sell. ... Just in Time Inventory Management. ... FIFO and LIFO. ... Reorder Point Formula. ... ABC Analysis. ... Lean Manufacturing System. ... Batch Tracking. ... 6 Sigma. Financial Management Financial Management means planning, organizing, directing and controlling the financial activities such as procurement and utilization of funds of the enterprise. It means applying general management principles to financial resources of the enterprise. Functions Of Financial Management Decisions And Control. Financial managers shoulder the primary responsibility of making decisions and controlling the finances. ... Financial Planning. ... Resource Allocation. ... Cash Flow Management. ... Disposal Of Surplus. ... Acquisitions And Mergers. ... Capital Budgeting. Working capital Working capital management is a business strategy designed to ensure that a company operates efficiently by monitoring and using its current assets and liabilities to their most effective use. The efficiency of working capital management can be quantified using ratio analysis. Costing Costing is any system for assigning costs to an element of a business. Costing is typically used to develop costs for customers, distribution channels, employees, geographic regions, products, product lines, processes, subsidiaries, and entire companies. Break even Analysis A break-even analysis is a financial calculation that weighs the costs of a new business, service or product against the unit sell price to determine the point at which you will break even. In other words, it reveals the point at which you will have sold enough units to cover all of your costs. Accounting Accounting keeps track of the financial records of a business. In addition to recording financial transactions, it involves reporting, analyzing and summarizing information. Accounts Payable – Accounts Payable are liabilities of a business and represent money owed to others Book Keeping Bookkeeping is the process of recording your company's financial transactions into organized accounts on a daily basis. It can also refer to the different recording techniques businesses can use. Bookkeeping is an essential part of your accounting process for a few reasons Journal entry journal entry contains the data significant to a single business transaction, including the date, the amount to be credited and debited, a brief description of the transaction and the accounts affected. Depending on the company, it may list affected subsidiaries, tax details and other information. It's crucial to accurately enter complete journal data so that the general ledger and financial reports based on this information are also accurate and complete Petty Cash book The petty cash book is a recordation of petty cash expenditures, sorted by date. In most cases, the petty cash book is an actual ledger book, rather than a computer record. Thus, the book is part of a manual record-keeping system. P&L Accounts The term profit and loss (P&L) statement refers to a financial statement that summarizes the revenues, costs, and expenses incurred during a specified period, usually a quarter or fiscal year. These records provide information about a company's ability or inability to generate profit by increasing revenue, reducing costs, or both. These statements are often presented on a cash or accrual basis. Balance Sheets A balance sheet is a statement of a business's assets, liabilities, and owner's equity as of any given date. Typically, a balance sheet is prepared at the end of set periods (e.g., every quarter; annually). A balance sheet is comprised of two columns. The column on the left lists the assets of the company. Example : Marketing Management Concept of Marketing The marketing concept is oriented toward pleasing customers (be those customers organizations or consumers) by offering value. Specifically, the marketing concept involves the following: Focusing on the needs and wants of the customers so the organization can distinguish its product(s) from competitors' offerings Marketing Management Marketing management is the organizational discipline which focuses on the practical application of marketing orientation, techniques and methods inside enterprises and organizations and on the management of a firm's marketing resources and activities Marketing Techniques Brand Storytelling. Digital PR. The Surround Sound Method. Brand Extensions. Podcasting. Video Marketing. Community Building. Contextual Marketing Concept of 4P s The 4 Ps of marketing are place, price, product, and promotion. By carefully integrating all of these marketing strategies into a marketing mix, companies can ensure they have a visible, indemand product or service that is competitively priced and promoted to their customers Human Resource Management Functions of Personnel Management Recruiting. Hiring. Determining wages and salaries. Administering benefits. Providing employee incentives. New employee orientation. Training and development. Performance appraisals Manpower Planning Manpower Planning is essentially the process of getting the number of qualified employees and seek to place the right employees in the right job at the right time, so that an organisation can meet its objectives. Manpower Planning or Human Resource Planning is a forward looking function. Recruitment Recruitment refers to the process of identifying, attracting, interviewing, selecting, hiring and on boarding employees. In other words, it involves everything from the identification of a staffing need to filling it. Depending on the size of an organization, recruitment is the responsibility of a range of workers Sources of Recruitment in HRM Internal and External Sources Promotion: ... Merits of Promotion Based on Seniority: ... Merits of Promotion Based on Merit: ... Transfer: ... External sources consist of: ... Advertising in Newspapers and Journals: ... Employment Exchanges: ... Internet (E-Recruitment) Selection Process Step 1: Job Design. ... Step 2: Position Description. ... Step 3: Forming a Selection Committee. ... Step 4: Recruiting. ... Step 5: Initial Screening of Candidates. ... Step 6: Phone, Video or other Pre-Interview Options. ... Step 7: Campus Visits and In-Person Interviews. ... Step 8: Recommendation for Hire. Method of Testing Types of Employment Tests Cognitive Aptitude Tests. Psychomotor Abilities Tests (Test of motor and physical abilities). Personality Tests. Achievement Tests. The miniature Job Training and Evaluation. Work Sampling Tests (Simulations). Performance Tests. Polygraph Tests (Honesty Test). Training and Development Methods Classroom Lecture Method: ... Group Discussion Method: ... Simulation Exercises Method: ... Role Playing Method: ... Case Study Method: ... Sensitivity Training or T Group Training or Laboratory training Method: ... Management Games Method: ... Outward Bound Training (OBT) Method: Payment of Wages Develop pay scale and structure. Keep competitive pay rates current. Ensure that payroll complies with state laws and federal regulations. Oversee pay distribution to employees.
