Definition

Meaning of personality

Meaning of personality – Personality is a patterned body of habits, traits, attitudes and ideas of an individual as these are organized externally into roles and statuses and as they relate internally to motivation, goals and various aspects of self hood.

According to Linton, personality embraces the total organized aggregate of psychological processes and status pertaining to the individual. Personality says Maclver is all that an individual is and has experienced so far as this all can be comprehended as unity. According to Lundberg the term personality refers to the habits, attitudes and other social traits that are characteristic of a given individual’s behavior.

Meaning of Attitude – A predisposition or a tendency to respond positively or negatively towards a certain idea, object, person, or situation. Attitude influences an individual's choice of action, and responses to challenges, incentives, and rewards (together called stimuli).

Development of Personality –

1. Personality development plays a crucial role in success of an organization

2. Personality development sessions go a long way in grooming individuals for them to deliver their level best and eventually contribute towards the success of an organization.

3. Employees need to work in unison for their organization to grow and yield higher profits

4. Personality development enhances one’s personality and makes an individual a mature professional who can contribute effectively towards the success of an organization.


Personality Traits
–
Enduring characteristics that describe an individuals behaviour.•

The Myers -Briggs Type Indicator (MBTI)•
The Big Five Model

 Myers Briggs Type Indicator

•

Personality test to determine how people usually act or
feel in particular situations.

Classifications:
–
Extroverted (E) or Introverted (I)
Sensing (S) or Intuitive (I)
Thinking (T) or Feeling (F)
Perceiving (P) or Judging (J)

Combined to form types, for example:

ESTJ
INTJ
ENTP

The Big Five Model

Classifications

Extra version
Agreeableness
Conscientiousness
Emotional Stability
Openness to Experience

Transactional Analysis -- Transactional Analysis is one of the most accessible theories of modern psychology. Transactional Analysis was founded by Eric Berne, and the famous 'parent adult child' theory is still being developed today. Transactional Analysis has wide applications in clinical, therapeutic, organizational and personal development, encompassing communications, management, personality, relationships and behaviour. Whether you're in business, a parent, a social worker or interested in personal development, Eric Berne's Transactional Analysis theories, and those of his followers, will enrich your dealings with people, and your understanding of yourself. This section covers the background to Transactional Analysis, and Transactional Analysis underpinning theory.

EGO STATES

According to Berne, we all have three major ego states that affect our behavior or the way we transact. The three ego states are the parent, child, and adult. We change ego states throughout the day, and even during a single discussion a series of transactions can take place between different ego states. Your parent, child, and adult ego states interact with other people's parent, child, and adult ego states. Understanding the ego state of the person
you are interacting with can help you to understand his or her behavior and how to transact in an effective way.
Parent Ego State

When the parent ego is in control, people behave from one of two perspectives:

1. Critical Parent. When you behave and respond with evaluative responses that are critical, judgmental, opinionated, demanding, disapproving, disciplining, and so on, you are in critical parent ego state. People in the critical parent ego use a lot of do's and don'ts. Managers using the autocratic style tend to be in critical parent ego state because they use high task/directive behavior.

2. Sympathetic Parent. On the other hand, you can also be a different type of parent. When you behave and respond with reassuring response that are protecting, permitting, consoling, caring, nurturing, and so on, you are in sympathetic parent ego state. Managers using the consultative and participative styles tend to be in sympathetic parent ego state because they are using high supportive/relationship behavior.

3. Child Ego State
When the child ego state is in control, people behave from one of two perspectives:

1. Natural Child. When you behave and respond with probing responses that shows curiosity, intimacy, fun,
joyfulness, fantasy, impulsiveness, and so on, you are in natural child ego state. Successful managers do not
tend to continuously operate from the natural child ego state.

2. Adapted Child. When you behave with confronting responses that express rebelliousness, pouting, anger, fear, anxiety, inadequacy, procrastination, blaming others, and so on, you are in adapted child ego state.

Identifying their ego state will help you understand why they are behaving the way they are and help you to determine which ego state you should use during the interaction

this slide is the easiest and fastest explanation for Johari Window i can find ..

Johari Window 


1. Nature of Attitude --  Attitude  “is a learned predisposition to respond in a consistently favorable or unfavorable manner with respect to a given object.”That is, attitudes affect behavior at a different level than do values ..

\Attitudes are positive, negative or neutral views of an "attitude object": i.e. a person, behaviour or event. They reflect how one feels about something.

The Nature and Dimensions of Attitudes

“Attitudes” 

 Persistent tendency to feel and behave in a particular way towards some object ..

 Characteristics of Attitudes ..

 They tend to persist unless something is done to change them.

 They can fall anywhere along a continuum from very favorable to very unfavorable. 

  They are directed toward some object about which a person has feelings and beliefs.

Attitude Components 

Cognitive component The opinion or belief segment of an attitude.

Affective Component The emotional or feeling segment of an attitude. 

Behavioral Component An intention to behave in a certain way toward someone or something. 

Developing and Maintaining a Positive Attitude

1.     Self talk
2.     Changing negative self talk into positive self talk
3.     Visualize the positives
4.     Look on the bright side
5.     Attack problems head on
6.     Avoid procrastination
7.     Smile
8.     Make work fun
9.     Be open minded

 Tips: Developing and Maintaining a Positive Attitude

1.     Identify roadblocks
2.     Identify the worst case scenario
3.     Avoid negative thoughts
4.     Dress the part
5.     Maintain a well balanced life
6.     Don’t dwell on the past or worry about the future
7.     Don’t take rejection personally
8.     Avoid mind reading
9.     Show interest in others

.
Keeping Your Attitude at Peak Power
.
Actions Flow From Your Attitude

    Once you develop a positive attitude, it makes sense to take steps to safeguard it – and every now and then, to also give it a tune-up.



 Safeguarding Your Attitude

        What are some of your most important assets?

        When you think of your positive attitude as an asset, does it occur to you that your attitude can be stolen?

. #1 Solve Personal Conflicts Quickly

        The tension that accompanies an unresolved conflict can eat away at your positive attitude, and the longer it eats away, the more you stand to lose.

. #2 Take the High Road

        When people behave unreasonably or unfairly, take the high road; don’t drop to their level.

        When someone behaves unreasonably or unfairly, stop for a moment and remember: you have a choice.

. #3 Insulate or Distance Yourself

        When you have repeated conflicts with someone, insulate or distance yourself.

        Focus on the work.

        Change your traffic pattern.

 Putting a Twist on a Negative Attitude

1.     Take a time out
2.     Determine what is making you feel negative
3.     Develop a plan
4.     Focus on the existing positives
5.     Look ahead
6.     Develop relationships with positive individuals
7.     Surround yourself with things that make you smile

 In a Rut?

1.     Isolate the problem
2.     View options and solutions
3.     Keep things in perspective
4.     Be flexible
5.     Consider a change
6.     Seek new friends
7.     Join an organization
8.     Change your appearance
9.     Get involved in activities

. Your Attitude Belongs to You

        Remember that your attitude belongs to you and to you alone.

        No one can steal your positive attitude unless you are an accomplice.


 

Introduction to Organisational Behaviour: Definition, Importance, Scope, Fundamental Concepts of OB, Different models of OB - autocratic, custodial, supportive, collegial and SOBC

Meaning  of organizational behavior – 

Organizational behavior is the study of the way people interact within the organization and groups. Normally this study is applied in an attempt to create more efficient business organization .
In other words Organizational behavior can be defined as the understanding, prediction and management of the human behavior
affect the performance of the organizations .

Definition of organizational behavior –-

Effective organizational behavior is the bedrock on which effective organizational action rests . Long term competitive advantage comes from the rich portfolio of  individual and team based competencies of an organization’s employees , managers and leaders .

By Hellriegal and Slocum

"Organizational behavior is a field of study that investigates the impact that individuals, groups and structure have on behavior within organization for the purpose of applying such knowledge toward improving an organization's effectiveness."

By  Stephen P. Robbins

Organizational behavior is the study and application at knowledge about the how people - as individuals and a groups - act within organization. It strives to identify ways in which people can act more effectively."

By Keith Davis

Importance of organizational behavior –

1. Organizational behavior gives map for the peoples in the organization
2. Organizational behavior help in predicting and understanding the peoples behavior in organization
3. Organizational behavior  help to influence organizational events
4. Organizational behavior help to understand the organization’s approach to the people
5. Organizational behavior  is the base for the motivation
6. Organizational behavior is useful in maintaining custodial industrial relations
7. Organizational behavior is useful in field in marketing 

The scope of Organizational behavior

It involves three levels of behavior in organizations: individuals, groups and structure.

1. Individual Behavior

• Personality
• Perception
• Values and Attitudes
• Learning
• Motivation

2. Group Behavior

• Work groups and group dynamics
• Dynamics of conflict
• Communication
• Leadership
• Morale

3. Organization: Structure, Process and Application

• Organizational Climate
• Organizational Culture
• Organizational Change
• Organizational Effectiveness
• Organizational Development

Fundamental Concepts of Organizational Behavior 

Nature of people

Individual differences

Nature vs. nurture

Perception

 The unique way in which each person sees, organizes and interprets things.

Selective perception cause misinterpretation

A whole person
 We employ the whole person not just their brains or skills 

Ergonomics is the science of fitting workplace conditions and job demands to the capabilities of the working population

Motivated behavior
 A path towards increased need fulfillment is a better approach

Desire for involvement

Hunger for a change to care what they know and to learn from the experience.

Organizations need to provide opportunities for meaningful involvement – employee empowerment

Value of the person

Worth before the word
meal before the message
they want to be treated differently from other factors of production

Nature of organization 

Social systems or social structure

In general refer to entities or groups in definite relation to each other, to relatively enduring patterns of behavior and relationship within social systems, or to social institutions and norms becoming embedded into social systems in such a way that they shape the behavior of actors within those social systems. Social systems can be said to be the patterns of behavior of a group of people possessing similar characteristics due to their existence in same society. 

Formal and informal social systems 

The idea of a social system provides a framework for analyzing organizational behavior issues. It helps make OB problems understandable and manageable

Mutual interest

Symbiotic relationship between organizations and people 

Provides a superordinate goal – one that can attained only through the integral effort of individuals and their employers.

 Ethics

 Treatment of employees in an ethical fashion

 Establish code of ethics, publicized statements of ethical values, provide ethics trainings, reward employees for notable ethical behaviors, set up internal procedure to handle misconduct.

Different models of OB - autocratic, custodial, supportive, collegial and SOBC

 

SOBC MODEL --

• SOBC MODEL --  STIMULUS-ORGANISM-BEHAVIOR-CONSEQUENCES
• SOBC MODEL Organism Behavior Stimulus Consequences {individual } {action} {Cause} { result}
• SOBC The Stimulus Is the cause that may be overt or covert, physical,social, psychological, technological, environmental etc.The Organism Can be individual or a group. They have cognitive mediators with physiological existence.The Consequences Are expressed as the results that may be overt or covert.Positive or negative and can have effects on environmental dynamics and applications.
• SOBC model is based on the very practical philosophy of human behavior that: every behavior is caused & follows the Cause- Effect relationship.

Alternative forms of investment

1. Non-marketable financial assets 

• bank deposits 
• post office deposits
• company deposits
• provident fund deposits 

2. Equity shares 

• blue chip shares 
• growth shares 
• income shares
• cyclical shares
• speculative shares 

 3. Bonds

• Government securities
• Government of India relief bonds
• Government agency securities
• PSU bonds
• Debentures of private sector companies
• Preference shares  

4. Money market instruments

• Treasury bills
• Commercial paper
• Certificates of deposit 

5. Mutual funds

• Equity schemes
• Debt schemes
• Balanced schemes

6. Life insurance

• Endowment assurance policy
• Money life policy
• Whole life policy
• Term assurance policy

7. Real estate

• Agricultural land
• Semi-urban land
• Time share in a holiday resort

8. Precious objects

• Gold and silver
• Precious stones
• Art objects

9. Financial derivatives

• Options
• Futures   

Fundamental analysis and technical analysis in investment management

Fundamental analysis -  To determine the intrinsic value of the equity stock, the security analyst must forecast the earning and dividends expected from the stock and choose the discount rate which reflects the riskiness of the stock .  this is  what is involved in  fundamental analysis perhaps the most popular method used by investment managers

Types of fundamental analysis

Macroeconomic analysis

1. Growth rate of gross domestic product
2. industrial growth rate
3. agriculture and monsoon
4. savings and investment
5. government budget deficits
6. price level and inflation
7. interest rates
8. balance of payment, forex reserves and exchange rate
9. infrastructural facilities and arrangements
10. sentiments

Industry analysis

1. Industry life cycle analysis
2. Study of the structure and characteristics of an industry
3. profit potential of industries (porter model)

Company analysis ( financials)

1. Earning and dividend level
2. Growth performance
3. Risk exposure
4. Valuation multiples 

Technical analysis - technical analysis of security analysis methodology for forecasting the direction of prices today study all the parts market data, primary price and volume .

Types of technical analysis

Chart analysis

1.  the Dow theory
2. bar and line charts
3. point and figure chart
4. relative strength analysis

Meaning of sales analysis ,Sales forecasting,Categories of sales forecasting method , Sales analysis process,Advertising research,Types,Product research,process

Meaning of sales analysis – A careful examination of a company’s sales records that is done to measure the company’s performance and to try and improve it ..

Sales forecasting is a process of estimating what your business’s sales going to be the future ..

 Categories of sales forecasting method

Qualitative vs quantitative
Native approach
Time series method
Casual / econometric model
Judgmental method
Artificial intelligence method

detailed chart of sales forecasting ... 

 Sales analysis process --

1. Get the bearings
2. Create a framework
3. Scale bright spots

Advertising research – advertising research is a specialized form of marketing research conducted to improve the efficiency of marketing .

Types of advertising research ==

1. Pre–testing
2. Campaign pre-testing
3. Post-testing

Product research – product research is a component of market research where by the characteristic of a goods or service , that will satisfy a recognized need or wants are identified ..

Process of product research –

1. Market research
2. Concept testing
3. Prototype development
4. Market testing
5. Product launch 

Marketing research process

Marketing research process

1. Identify and formulate the problem
2. Choose the research design
3. Determine the information needs
4. Design data collection forms
5. Determine sample design and sample size
6. Organize and conduct the field survey
7. Analyze and interpret the collected data
8. Prepare the research report

Data collection

1. Primary data

2. Secondary data

Scaling techniques --

• Nominal scale
• ordinal scale/ranking scale
• interval scale
• ratio scale 

Sampling design - In the theory of finite population sampling ,a sampling design specifics for every possible sample its probability of being down ..

Scientific method of attitude measurement 

Disguised and structured --

1. Guessing errors 

2. Reveal attitude

Disguised and non structured 

A. word association 

1. sentence completion 

2. pictorial techniques 

Non-disguised and structured 

A. scales 

1. ordinal 

2. interval 

non disguised and non structured  

A. interviews 

1. focus group

2. in-depth interviews 

types of  scales -

A- Self rating scale 

1. graphic rating scales 

2. semantic differential scale 

B. ranking 

C. Multiple item scale 

1. Thurstone scale 

2. likert scale 

Interviewing -

Types of interviews

1. Screening interviews
2. Hiring interviews
3. One on One interview
4. Panel interviews
5. Group interviews
6. Sequential interviews
7. Stress interviews

Nature/ Meaning,scope,objectives of Investment management

Nature/ Meaning of Investment management – investment management is the professional asset management of various securities ( shares , bonds and other securities ) and other assets ( eg. Real estate in order to meet specified goals for the benefit of the investors may be institutions ( insurance company , pension funds , corporations , charities , educational institutions etc .) or private investors ( both directly via investment contracts and more commonly via collectively investment schemes eg. Mutual funds or exchange traded funds ..

Scope of investment management –

Understanding the various investment decision rule .

To know what are the good investment decision rules

Knowing the categories of investment decision rule .

You can take investment decision only after analyzing entire process of investment that stats with funds contribution and ends with getting expectations fulfilled .

The investment decision rule allow you to formalize the process and specify what  condition or conditions need to be meet to accept the project..

you will take the decision on lifting showing that the required expectation in terms of returns and insurance at any cost ..

objectives of investment management

Primary objective

safety

 income 

growth of capital 

secondary objectives 

text maximization 

marketability / liquidity

forms of investment - cash, bonds, shares, property, mutual funds

alternative forms of investment - futures, forex, gold, bitcoins etc ..

fundamental analysis,technical analysis

Fundamental analysis – A method of evaluation a securities that entails attempting to measure its intrinsic value by examining related economic , financial and other quantitative and qualitative factors ..

Fundamental analysis includes –

Economic analysis
Industry analysis
Company analysis

Technical analysis – technical analysis is a securities analysis methodology for forecasting the direction of prices through the study of past market data ,primary price and volume ..

In this analysis charts and patterns are being studied

Characteristics

1. Visual nature of  charting – like chart , patterns , candlesticks etc
2. This type of analysis revolves around actual movement of market ..
3. It search for the patterns or trends that can recur in the future with relative consistency .

Fundamental analysis – report which share are undervalued by the investor community and which are overvalued , then trust the market to make corrections .. 

Meaning of portfolio,portfolio analysis,sharp index,markowitz theory,steps of portfolio construction

Portfolio analysis – it is a systematic way to analyze the products and services that make up an association’s business portfolio . All associations (expect the simplest and smallest ) are involved in more than one business .

Meaning of portfolio – A grouping of financial assets such as stocks , bonds , and cash equivalents as well as their mutual , exchange , traded and closed fund counter parts ..

Sharp Index – sharp index in financial is also known as sharp ratio or sharp measure and the reward – to– variability ratio is a way to examine the performance of an investment by adjusting for its risk ..


The sharp ratio characteristic how well the return of an asset components the investor for the risk taken , comparing 2 assets with common benchmark ..


Markowitz Theory – This theory is known as modern portfolio theory ( MPT) . A theory on how risk–averse investors can  construct portfolios to optimize or maximize expected return based on a given level of market risk, emphasizing that risk is an inherent part of higher reward ..

Also called portfolio management theory …

Found by Harry Markowitz in 1952

Steps of portfolio construction –

Security valuation
Assets Allocation
Portfolio optimization
Performance measurement  

 

Primary and secondary market

New issue market = it is also called primary market . this market in which a new issue of security in first sold to investors . this is not a separate market ..

Primary market is the part of the capital market ..

The process of selling new issues to investors is called as underwriting .. It is initial public offering ( IPO)

Features of primary market ÷

In this market the securities issued by the company directly to investors .

Secondary market operations - it is also called after market is a financial market in which previously issued financial instruments list of bonds options and features are bought and sold ..
And other users refer to loans which are sold by mortgage bank to investors .

Data processing , analysis of data , steps of hypothesis testing , Meaning of experimental design,Interpretation of data,Report writing

Data processing – data processing is broadly “ the collection and manipulation of items of data to produce meaningful information . In this sense it can be considered a subset of information processing . “The change (processing) of information in any manner detectable  by an observer .

Analysis of data – in this process of inspecting cleaning , transforming and modeling data with the goal of discovering useful information suggesting conclusions and supporting decision making .

Steps of hypothesis testing –

State the hypothesis h0 , h1
Set the criteria for the decision
Compute the test statistic
Make a decision

Meaning of experimental design – experimental design is the process of planning a study to meet specified objectives . Planning an experiment properly is very important in order to ensure that the right type of data and a sufficient sample size and power are available to answer the research questions of interest as clearly and efficiently a possible .

Interpretation of data – interpretation of data is the process of assigning meaning to the collected information and determining the conclusions significance and implications of the findings .

Report writing – A report is an informational work usually of writing , speech , television or film  made with the specific intention of relying information or recounting certain events in a widely presentable . Written report are documents which present focused salient content to a specific audience .

Information value , characteristics of information ,characteristics of value of information ,calculation of value of information, scientific method of marketing

Information value or value of information - value of information is the amount a decision maker would be willing to pay for information prior to making decisions .

Characteristics of good information

Accurate
adequate
relevant
availability
current

Characteristics of value of information --

Value of information can never be zero
no other information gathering / sharing activity can be more valuable than that qualified by the value of clairvoyance

Computation of value of information

Value of decision situation with perfect information where is equals to value of current decision situation

A special case in which the decision maker is risk neutral where VOC can be computed as --

VOC = value of decision situation with perfect information - value of current decision situation

Scientific method of marketing --

Identify & formulate research problem

Determine information needs

Determine the method of data collection

Meaning , application , limitation and threats to marketing research

Meaning of marketing research - marketing research is the systematic and objective search for and analysis of information relating to the identification and solution of any problem in the field of marketing the keyword in this definition of a systematic objective and analysis ..

Application of marketing research

Defining market demand

Describing a market

Approaches to sales forecasting

Forecasting sales of established
products / services

Limitations of marketing research

Marketing research the costly affair

it is lengthy and time consuming
it has limited scope
limited practical value
it can't predict consumer behaviour Not 100% accurate results
it provide only suggestions
non availability of reliable data

Threats of marketing research ÷

Excessive interview
lack of consideration and abuse by the respondents
the use of marketing research is sales ploy.

Meaning, principles, benefits of ISO 9000

Meaning, principles, benefits of ISO 9000

ISO 9000 -  ISO 9000 standards represents an international consensus on good management practices with the aim of insuring organization and time and again deliver the product and services that meet the clients quality requirements these goods practices have this turned into a set of system regardless of what the organization does, its size, or weather it is private or public sector .

Principle concepts

1. Demonstrate ability to provide quality

2. enhance customer satisfaction

3. improve the quality of its own products

4. provide confidence on the firm

Benefits of ISO 9000 -

1. Minimum requirement for entering in global market

2. increase the quality of product

3. increase performance of process

watch this video  for video notes --

Capital investment decision , techniques of capital investment , purpose of capital equipment ,meaning of capital investment

Capital investment decision - the project selected to maximize shareholders wealth consider all cash flow, discounted cash flow at appropriate market determined opportunity cost of capital will allow managers to consider is project independently from all others .

Techniques of capital investment decision -

1. Payback method
2. accounting rate of return
3. internal rate of return
4. net present value

Purchase of capital equipment - equipment that is used to manufacture a product, provider service or used to sell store and deliver merchandise . this equipment has an extended life so that it is properly regarded as a fixed assets .

Meaning of capital investment - funds invested in a firm or enterprise for a purpose of furthering its business objectives  . capital investment me also refer to a farms acquisition of capital assets for fixed assets such as plants and machinery that is expected to be productive for many years .

watch the video ..

Cost reduction techniques

Cost reduction techniques

 

1. JIT (just in time) system
2. Target costing
3. activity based management
4. life cycle costing
5. kaizen costing
6. business process reengineering
7. total quality management
8. value chain
9. bench marketing
10. management audits

Value analysis - the systematic and critical assessment by an organisation of everyone future of a project to ensure that its cost is no greater than is necessary to carry out the function

Value engineering = the modification of design and system according to value analysis of the product ..

Simplification = the concept of simplification is closely related to standardization
 

Simplification is the process of producing the variety of products manufactured . simplification is concerned with the reduction of the product range, assemblies, parts, materials and design .

Standardization - formulation, publication and implementation guidelines, rules and simplification for common and repeated use at achieving optimus degree of order or uniformity in a given context, discipline or field ..

Application of linear programming - 

1. allocation of scarce resource
2. Scheduling production facilities and resources
3. optimizing capital investment decision
4. inventory control
5. allocation of maintenance

Transportation model - it deals with problems concerning as to what happens to the effectiveness of function when we associate each of the number of origins with each of the possibility of different numbers of destination ..

Application of transportation model ÷

1. Minimise shipping costs

2.  determine low cost location

3. find minimum cost production schedule

4.  military distribution system

Process of transportation model

1. Standardization of problem

2. Check nature of  problem

3. check balance problem

Quality control

System of maintaining standards in manufacture products by testing a sample of output against the specification ..

Quality control techniques

1. Just in time
2. quality at source
3. inspection
4. standard quality control
5. quality circle
6. total quality control

Types of inspection

1. Pre production inspection
2. during production inspection
3. final random inspection

Principles of inventory management

Principles of inventory management

1. Demand forecasting

2. warehouse flow

3. inventory turn / stock rotation

4. cycle counting

5. process auditing

Types of inventory

1. Raw material
2. work in progress
3. finished goods
4. transit inventory
5. buffer inventory
6. anticipation inventory
7. decoupling inventory
8. cycle inventory
9. MRO ( maintenance, repair and operations ) inventory
10. theoretical inventory

ABC analysis - ABC analysis in inventory categorization technique often used in material management. It is also known as selective inventory control . Policies based on ABC analysis A items are very tight control and accurate records , B items are little less and C has the least ..

10 to 20 % item A account for 70 to 80 % of the consumption ..

The next 15 to 25 % B account for 10 to 20 % of the consumption .

The balance of 65 to 75 % C account for 5 to 10 % of consumption .

Basic inventory models

1. Basic EOQ model
2. Dynamic economic lot size model
3. Periodic review stochastic model

EOQ meaning - the economic order quantity is the number of units that a company should add to inventory with order to minimize the total cost of inventory such as holding cost, order cost and storage cost .

Total inventory cost = ordering costs + holding costs

EOQ = √ 2x quantity per order ÷ carrying cost per order

Safety stock= safety stock is also called buffer stock is a term used by logistician to describe a level of extra stock that is maintained to migrate risk of stock outs ( shortfall in raw material or packaging ) due to uncertainties in supply and demand ..

Functions of inventory control -

1. meet anticipated demand

2. smooth production requirements
decouple operations

3. protect against stock outs

4. take advantage of quantity discounts

5. permit operations

6. help hedge  price increases

7. take advantage of order cycles

Objectives of inventory control

1) level of consumer service

2) costs of ordering and carrying inventory .

Symptoms of poor inventory management

1. Increase back order status

2.  high customer turnover rate

3. increase dollar investment in inventory with back order remaining

4. periodic lack of sufficient space

5. increase number of order being cancelled

6. inventory rising faster than sales .

Meaning of Material planning factors affecting material planning , techniques of material planning ..

Meaning/ nature of material planning - in any integrated material management environment planning forgetting the material is the starting point for whole material management function . Material planning sets the procurement process process and subsequent material functions rolling .

Factors affecting material planning -

Macro factors - these factors condition the rapid changes in global environment, such as global price trends, business cycles, import / export policies of the government etc ... Which can influence the material planning . The governments credit policy plays a critical role in bank following the guidelines mentioned therein, during the course of extending financial support to the business enterprise .

Micro factors - these factors can sign changes that take place within organization, such a plant capacity utilization, production plan, acceptable inventory holding, early times, rejection rate, working capital, delegation of power,communication, sensitivity etc that can affect the material planning .

Techniques of material planning -

1. Direct materials

High value 

(a) BOM  ( bill of materials )/ explosion chart

(b) MRP
 

Low value

 (a)  inventory control

2. Indirect material

(a) past consumption analysis technique

(b) exponential smoothing

(c) inventory control

Capacity requirement planning - capacity requirement planning is an accurate method used to determine the available production capacity of the company . Requirement planning first assess schedule of production that has been planned upon by the company .

Strategy of capacity requirement planning
 

1. Lead strategy
2. Lag strategy
3. Match strategy
4. Adjustment strategy

Meaning of Manpower planning , definition ,importance ,scope, objective , process of man power planning ..

Human resource planning and manpower planning is considered as same term for these notes

Manpower planning is an ongoing process of systematic planning to achieve optimum use of organisations most valuable asset its human resources .

It can also be expressed as a process in which the management measures the right number of people and the right kind at the right place at the right time doing the right things they are recruited for and to achieve the organizational goals .

Definition of manpower planning

Manpower planning is the process of determining manpower requirements and the means of meeting the requirements in order to carry the integrated plan of organization. By - Colman 

Human resource planning is the process for determining and sharing that organization will have an adequate number of qualified persons, available at proper times, performing job which meet the needs of enterprise and which provides satisfaction for individuals involved . By- Dale S. Beach 

 Objectives of manpower planning 

1. Ensure optimum use of human resource currently employed

2. Avoid imbalances in the distribution and allocation of human resources

3. assess forecast future is skill requirements of organization overall objective

4.  provide measure control to ensure your availability of necessary resources when required

5. control the aspect of human resources

6. formulate transfer and promotion policies

Scope of human resource planning or manpower planning

1. Listing of current human resources

2. Accessing the contest to which the current manpower is utilized to the advantage of the organization

3. Planning out for surplus human resources

4. Analyzing the requirement of manpower in future in the light of the expansion plans, retirement of personnel etc.

5. Making human resource forecast

6. Designing training program for different categories of human resource

Importance / need for human resource planning

1. Manpower planning helps in proper recruitment and selection so that right type of people are available for various positions of organization

2. Manpower planning also facilitates designing of training programs for employees to develop the required skills for them .

3. Manpower planning provides lead time for preparing personnel as it is time consuming process .

Process of manpower planning

1. Determination of manpower planning objectives

2. Current status of human resource inventory

3. HR Demand forecasting

4. Job requirements

5. employment plan

6. training and development program

Meaning , importance , objectives and scope of material management

Meaning / nature of material management - material management is the combination of all organisational functions responsible for the planning , collecting, stocking , manufacturing, control and all distribution activities of materials used in fulfillment of demand. 

Importance / functions of material management -

1. For purchasing good quality material at min cost ..

2. Exercising control over materials .

3. For maintaining the continuity of production and sales by regular supply of material .

4. To maintain good standard of quality .

5. To establish good relationship with supplier ..

6 . maintaining the efficiency of material department ..

Scope of material management ..

A. Purchasing of material

1. Good quality of materials

2 . Purchasing at proper time

3. purchasing at right place .

4. purchasing from right source of supply

B. Storage

1. Weight and quality are inspected

2. Classification as raw material, semi finished goods, finished goods etc .

3. proper storage and quality is maintain , proper safeguard

C. Inventory control

1. For maintaining this cycle of production and sale

2. Controlling stock out cost

D. Clearing and forwarding

1. Import and export is a lengthy and complicated procedure must be done expert forwarding agents.

2. Transport facility .

Objectives of material management

1. Low prices

2. low inventory rate

3. reduction of real cost

4. regular supply

5. Procurement of good quality
material

6. efficient handling of material

7. enhancement of firm,s goodwill

8. locating and developing future executives