Author: Shreya Maurya

  • Systematic Investment Plan (SIP)

    Systematic Investment Plan (SIP)

    Do you know what is sip or Systematic Investment Plan Is? Nowadays, every person wants to earn money through savings. There are also many options available to earn as interest with savings in the market, such as depositing money in a bank, fixed deposits, etc.

    Today we will tell you about another such option “SIP i.e. Systematic Investment Plan“.

    If you are an investor, then you will definitely have basic information about SIP. But, there are many people who do not know about SIP i.e. Systematic Investment Plan. Through this article we will share all the information related to systematic investment plans to you.

    In this article, you will understand about SIP, How to Invest in SIP along with Advantages and Disadvantages etc.

    Let’s understand SIP (Systematic investment plan) from the beginning.

    What is Systematic Investment Plan (SIP)?

    Often you get nervous thinking about investing that you will have to invest a large amount of money. But that’s not the case with SIP, it’s not necessarily the case with SIP to burden your economic situation in the process of investing.

    Investing in SIP with less risk is a good option to get better returns. This means that you have to invest at a certain amount of money every month or at regular intervals. Through SIP you have to invest a certain amount of money in the stock market or mutual fund over a certain period of time.

    In SIP investment plan, instead of investing a large amount at a time, a small amount is invested, the result of which is high returns.

    Usually, this is for equity mutual funds. However, investing in SIP has to pay special attention to discipline. You have to maintain the investment at fixed intervals as opposed to a slump or boom in the stock market.

    How does SIP work?

    Once you apply for one or more SIP plans, that amount is automatically debited from your bank account. After this, you invest in mutual funds you have purchased at a pre-decided time interval. At the end of the day, you will be allotted units of mutual funds based on the net assets value (NAV) of the mutual fund. With every investment in SIP plan in India, additional units are added to your account based on the market rate.

    With every investment, the amount that is reinvested becomes higher than before and therefore the return on those investments is also higher. Finally, it is at the discretion of the investor whether he wants to take the return from the SIP in the middle or at the end of the SIP period.

    Let’s understand this with an example.

    Let’s say you have to invest in mutual funds. You have saved ₹1 lakh separately for investment. Now you will have two options to invest. First, you will invest ₹1 lakh in a mutual fund at a time. Or else, you will opt for a Systematic Investment Plan or SIP.

    You need to set an amount to start investing in SIP. Let’s say you want to invest ₹500. Then, on a certain date every month, ₹500 will be debited from your account for the mutual fund you want to invest in. This will continue throughout the SIP period.

    When should I invest in SIP?

    An investor can start investing with the minimum risk and the best SIP plan ever. It is very important for the investor to choose the scheme that suits his long-term goal well. Therefore, there is no suitable time frame to start a SIP investment plan. An investor should start investing as soon as he can.

    Types of Systematic Investment Plan (SIP)

    The following are the types of SIPs

    1. Top-up SIP

    This SIP allows you to increase your investment amount from time to time. Thus, when you have more amount available, you can also increase your investment amount accordingly.

    It provides the opportunity to invest in the best and high performing fund at regular intervals.

    1. Flexible SIP

    As the name suggests, in this plan, the investor gets the flexibility to invest.

    An investor can increase or decrease the amount of investment, according to his investment capacity.

    1. Perpetual SIP

    This SIP plan allows you to invest without a mandated date.

    Generally, a SIP plan lasts for 1 year, 3 years or 5 years.

    Therefore, the investor can withdraw the amount invested as per his wish or according to his financial goals.

    Benefits of SIP

    There are many benefits to investing in SIP. Some of them are as follows

    • It’s makes you a disciplined investor

    If you don’t have good financial information like when the market is up and down, then sip investment plan can prove to be a better option for you.

    You won’t need to analyze to find out the time to invest at the right time.

    Since, in SIP, the money from the account is automatically debited and goes to mutual funds, then you do not need to worry.

    • Rupee Cost Increasing Factor

    With SIP comes the benefit of rupee cost averaging.

    Since, your investment amount is stable for a long period of time, you can take advantage of the volatility of the market with the average cost of rupees since SIP.

    The fixed amount you invest through SIP averages the value of each unit.

    Thus, when the market goes down you can buy more units and when the market is high then buy fewer units, which will reduce the unit at average cost.

    • Power of Compounding

    It is important to stay in discipline to invest in SIP which helps you to make continuous investment growth.

    Its automatic process ensures that your investment also grows as opposed to a lump sum investment where you may sometimes forget to invest.

    Disadvantages of SIP

    There are some drawbacks as well as the advantages of investing in SIP, which are as follows

    • The long-term return from SIP is less than the return from a lump sum investment in the long run.
    • After this, you should have a certain amount in your bank.
    • Its biggest disadvantage is that if your bank does not have enough amount, the bank can also charge a penalty.
    • Apart from this, if you do not fill the installation 3 times, your SIP will be cancelled.

    Important points related to SIP

    • SIP investment through mutual funds has grown rapidly. It has emerged as a popular segment for investors.
    • It is a systematic plan through which investors invest a fixed amount every month in a mutual fund of their choice.
    • The advantage of investing in SIP is that you don’t have to be afraid of the ups and downs in the stock market.
    • The biggest advantage of this is the compounding return where you get the return on the return you get above it.
    • You can also start investing with a minimum amount of ₹500 for SIP.

    If you are thinking of investing in SIP then it is mandatory that you have a Demat account. So Open a Demat account now, to invest in SIP.

  • Nithin Kamath: Indian Stock Trading with Zerodha

    Nithin Kamath: Indian Stock Trading with Zerodha

    Nithin Kamath is one of the distinguished entrepreneurs from India. Besides being an entrepreneur, he is also a columnist for The Financial Express and a stockbroker. He is a founder of Zerodha. This ranks as India’s largest stock brokerage firm with headquarters in Bangalore, Karnataka.

    Nithin Kamath, a well-known personality in the Indian business mainstream, has received much attention toward his steps in this field. The Economic Times also listed him as one of the Top 10 Businessmen to Watch Out for in India in 2016 because of his excellent contribution toward discount broking. He was also presented with the Forbes India Leadership Award in 2019 and thus given the title Conscious Capitalist of the Year. Nithin’s net worth, to boot is an amazing $1.5 billion, through all his entrepreneurial feats.

    Many crowning moments have not passed Zerodha by either. The company topped IIFL Wealth Hurun India 40 and Under Self-Made Rich List in 2020-an effort that once again speaks about Nithin Kamath’s entrepreneurial brilliance and places Zerodha in good stead as one of the most prominent Indian brokerage firms.

    Nithin Kamath- Biography

    NameNithin Kamath
    Born5 October, 1979
    Age43 (2023)
    BirthplaceShivamogga, Karnataka, India
    NationalityIndian
    Zodiac SignLibra
    Educational QualificationBachelor’s in Engineering
    ProfessionEntrepreneur, Stockbroker, Columnist
    PositionFounder & CEO, Zerodha
    Net worth270 crores USD (2023)
    FatherU.R Kamath
    MotherRevati
    BrotherNikhil Kamath
    SpouseSeema Patil

    Nithin Kamath – Personal Life

    Nithin Kamath is a Konkani born in Shivamogga, Karnataka, India. His father U.R. Kamath worked at Canara Bank as an executive, and his mother, Revathi, taught him to play the veena. He also has a young brother Nikhil Kamath, with whom he co-started Zerodha. In 2008, Nithin married Seema Patil, and they have a son named Kiaan. In addition to business, Nithin Kamath also enjoys playing basketball.

    Nithin Kamath – Education

    Nithin Kamath’s educational life started as a child when he would travel with his father who was working for Canara Bank to different parts of India. Nithin finally settled in Bangalore in 1996 where he finished his secondary education and further pursued his college education. He completed his Bachelor’s degree from Bangalore Institute of Technology in the field of specialization: Electronics and Telecommunications. His background in this field most likely gave him technical expertise and familiarity with the rapidly changing financial technology landscape.

    Nithin Kamath – Professional Life

    He had a special attraction to trading and entrepreneurship from when he was in school. Here’s his rewritten profile:

    He started managing his father’s account in trading when he was just 17 years old. Nithin could still go to school and get practical experience in the markets from early age.

    Self-employment as a proprietary trader: Nithin became a self-employed proprietary trader during college, from January 1997 to January 2004. These years helped him hone his trading abilities and understand market dynamics better.

    Work in the Call Center Since he had very little trading capital, Nithin was forced to work for a call center for three years. He traded during the day while working as a Senior Telesales Executive for an organization that specializes in operating call centers from January 2001 to June 2004.

    Sub-broker and portfolio advisory service Nithin started his professional career as a sub-broker with Kamath Associates-a Reliance Money franchise. He provided portfolio advisory services and proprietary trading between January 2004 to January 2010.

    In late 2010, Nithin Kamath, along with his younger brother Nikhil, founded Zerodha, his own stock brokerage firm. This became the start of a new entrepreneurial venture, as he will change the status quo of the Indian brokerage industry with discount broking and innovative trading technologies.

    Nithin Kamath worked as a trader, spent some time in a call center, and served as a sub-broker, which gave him a deep understanding of things, paving the path for Zerodha, one of the largest retail stock brokerage firms in India today.

    Nithin Kamath’s success story is beyond his story of formation and phenomenal growth of Zerodha, and in itself is a huge disruption of the brokerage business in significant ways. It was NSE’s free trading platform ‘NOW’ that inspired Nithin and directed him toward what was needed for the industry.

    With a decade of trading in the stock markets, he keenly witnessed the challenges and limitations faced by traders, and so he founded Zerodha. His vision was to eliminate the complications associated with trading in the stock markets and create a brokerage firm that would address the barriers faced by traders. The name itself of Zerodha combines “Zero” with “Rodha,” the Sanskrit word for barrier.

    Nithin took the entrepreneurial journey along with his brother and a team of five in the year 2010. Zerodha initially catered for the day traders and has experienced spectacular growth over time. Disruptive pricing models and proprietary technology have pushed the company to the top ranks as the largest stockbroker in India, based on active retail clients.

    Zerodha has revolutionized the landscape of broking, enabling millions of retail investors to trade with ease, saving money while gaining efficiency. The very success of Zerodha is an outcome of visionary leadership with commitment toward change-thus, Nithin Kamath. Founded in August 2010, Zerodha is India’s largest brokerage firm, which has opened a physical presence in almost all major cities of the country; though, in June 2020, it became the official unicorn which self-valued at $1 billion. Today more than 2.2 million users are using Zerodha that allows it to make three million trades daily through online stock brokerage.

    Contributions to the Fintech Ecosystem

    Nithin Kamath’s effort is not just limited to Zerodha. Through Rainmatter, he has also looked at innovation in the fintech ecosystem through funding and mentoring of startups, making them available to Zerodha’s technological infrastructure for building solutions that enhance the financial services space.

    Kamath seems hopeful to be able to derive an energized ecosystem of cooperative fintech thereby bringing in innovative ideas that will help the industry along with the consumers.

    Conclusion

    Nithin Kamath’s journey from a small-time trader to being one of the founders and CEO of Zerodha is epitomized with innovation, resilience, and vision. Zerodha has transformed stock trading in India by empowering millions to trade with far greater access, affordability, and transparency. The focus on financial education, technological advancement, and customer-centricity remains paramount for its continued success and transformation of the Indian financial landscape.

    Nithin Kamath left behind not just a great brokerage firm but the story of making people manage their own financial lives. It is a story of inspiring entrepreneurship and an anecdote to the power of vision and grit in making a fantastic impact.

  • What is Human Resource Planning?

    What is Human Resource Planning?

    In this article, you’ll learn about What is Human Resource Planning, Key Steps in Human Resource Planning, Importance of Human Resource Planning and more.

    Human Resource Planning (HRP) is a crucial process that helps organizations align their human resources with their strategic goals and objectives. It involves analyzing the future workforce needs and developing effective strategies to ensure the right people with the right skills are available at the right time. In this tutorial, we will explore the key concepts and steps involved in Human Resource Planning.

    Understanding Human Resource Planning

    Human Resource Planning involves forecasting demand and supply of manpower, identifying gaps, and implementing strategies to bridge those gaps. It plays a vital role in efficient workforce management and helps organizations make informed decisions regarding recruitment, training, development, and retention of employees.

    Key Steps in Human Resource Planning

    1. Analyzing Organizational Strategy: The first step in HRP is to align the workforce planning with the organization’s strategic goals. This includes understanding the overall business objectives, identifying the skills and competencies required to achieve them, and assessing the impact of external factors like market trends and technological advancements.
    2. Forecasting Future Workforce Needs: Once the organizational strategy is clear, the next step is to forecast the future demand for human resources. This can be done by analyzing historical data, considering projected business growth, turnover rates, and conducting workforce trend analysis. It helps organizations estimate the number and types of employees they will need in the future.
    3. Analyzing Current Workforce: Evaluating the existing workforce is crucial to identify any skill gaps or surplus. This involves assessing the skills, knowledge, and capabilities of current employees, as well as their potential for growth and development. It helps organizations understand the strengths and weaknesses of their workforce and determine if additional hiring or training is required.
    4. Developing HR Strategies: Based on the demand and supply analysis, HR strategies are developed to bridge the gaps identified in the previous steps. This may involve implementing recruitment plans to attract and select suitable candidates, designing training and development programs to enhance employee skills, or implementing retention strategies to retain high-performing employees.
    5. Implementing and Monitoring: Once the HR strategies are developed, they need to be implemented and monitored to ensure their effectiveness. This includes executing the recruitment, training, and retention plans, as well as measuring their impact on the workforce. Regular monitoring and evaluation help organizations identify any deviations from the planned strategies and make necessary adjustments.

    Importance of Human Resource Planning

    Human Resource Planning provides several benefits to organizations, including:

    • Optimal Staffing: HRP ensures that organizations have the right number of employees with the right skills at the right time. It helps prevent overstaffing or understaffing situations that can hamper productivity and efficiency.
    • Cost Efficiency: By identifying skill gaps and addressing them through training or recruitment, HRP helps organizations optimize their human resource investments. It reduces unnecessary recruitment costs, turnover, and retraining expenses.
    • Talent Development: HRP facilitates the development of employees’ skills and competencies through targeted training and development programs. It enhances the overall talent pool of the organization and enables employees to contribute effectively to organizational goals.
    • Succession Planning: By forecasting future workforce needs, HRP enables organizations to identify potential successors for critical positions. It ensures a smooth transition of leadership and minimizes disruptions in key roles.
    • Adaptability: HRP allows organizations to be proactive and adapt to changing business environments. By anticipating future workforce requirements, organizations can align their human resources with evolving market conditions and technological advancements.

    In conclusion, Human Resource Planning is a strategic process that helps organizations effectively manage their human resources. By aligning workforce needs with business goals, organizations can ensure they have the right talent in place to drive success and remain competitive in the dynamic marketplace.

    Remember, continuous evaluation and adjustment of HR strategies is essential as businesses evolve over time.

  • Processes in Human Resource Management

    In this article, you’ll learn about Processes in Human Resource Management such as Recruitment and Selection Process, Training and Development Process, Performance Appraisal Process and Compensation and Benefits Process.

    Human Resource Management (HRM) is a crucial function in any organization. It involves managing the organization’s most valuable asset – its people. One of the key components of HRM is the implementation of various processes to ensure the effective management of human resources. In this tutorial, we will explore some essential processes in Human Resource Management and their significance.

    1. Recruitment and Selection Process

    The recruitment and selection process is vital for bringing in qualified and competent individuals into the organization. This process includes job analysis, creating job descriptions, advertising vacancies, screening applications, conducting interviews, and making the final selection. An effective recruitment process ensures that the organization hires the right candidates who possess the required skills and qualifications.

    2. Training and Development Process

    The training and development process aims to equip employees with the necessary skills and knowledge to perform their job effectively. It includes identifying training needs, designing training programs, delivering the training, assessing performance, and providing feedback. This process helps enhance employee expertise, productivity, and overall organizational success.

    3. Performance Appraisal Process

    Performance appraisal is a systematic evaluation of an employee’s performance against predetermined objectives and standards. It involves setting performance expectations, conducting periodic performance reviews, providing feedback, and recognizing achievements. The performance appraisal process helps identify areas of improvement, reward high performers, and provide developmental opportunities for employees.

    4. Compensation and Benefits Process

    The compensation and benefits process encompasses the design and implementation of fair and competitive compensation packages for employees. It includes determining salary structures, administering benefits programs, conducting salary reviews, and addressing employee compensation-related queries. This process ensures that employees are appropriately rewarded for their contributions and helps attract and retain top talent.

    5. Employee Relations Process

    The employee relations process focuses on establishing and maintaining positive relationships between the organization and its employees. It includes managing employee grievances, resolving conflicts, promoting a healthy work environment, and ensuring compliance with labor laws and regulations. Effective employee relations contribute to higher employee morale, job satisfaction, and overall organizational harmony.

    6. Succession Planning Process

    Succession planning involves identifying and developing potential future leaders within the organization. This process includes assessing employees’ potential, creating development plans, providing mentoring and coaching, and monitoring progress. Succession planning ensures a smooth transition of key roles and minimizes disruptions when employees leave or retire.

    Conclusion

    Implementing effective processes in Human Resource Management is vital for ensuring the organization has the right people with the right skills in the right positions. By understanding and implementing these processes, organizations can enhance employee performance, engagement, and overall organizational success. Remember, each organization may have its unique variations and approaches to these processes, so it’s essential to tailor them to fit specific organizational needs and goals.

    Happy HRM implementation!

  • Scope of Human Resource Management

    Human Resource Management (HRM) is a crucial function in any organization, as it focuses on managing and developing the most important asset – the people. The scope of HRM is comprehensive and encompasses various functions and activities that contribute to the overall success of an organization. In this tutorial, we will explore the scope of Human Resource Management and gain a deeper understanding of its key components.

    1. Human Resource Planning

    HR planning involves determining the human resource needs of an organization and strategizing to fulfill those needs effectively. It includes forecasting future staffing requirements, analyzing existing workforce capabilities, and identifying the gaps to be filled. HR planning ensures that the right talent is available at the right time, ensuring organizational productivity and growth.

    2. Recruitment and Selection

    Recruitment and selection form an integral part of HRM. This function focuses on attracting, evaluating, and selecting the most suitable candidates to fill vacant positions within the organization. It includes sourcing candidates, screening resumes, conducting interviews, checking references, and making job offers. Effective recruitment and selection practices ensure that the organization hires the best talent to meet its business objectives.

    3. Training and Development

    HRM is responsible for identifying training and development needs within the organization and designing programs to enhance employee skills and capabilities. This includes both technical and soft skills training, leadership development, performance management, and career progression. Training and development initiatives help improve employee performance, motivate them to achieve their full potential, and foster a learning culture within the organization.

    4. Compensation and Benefits

    HRM plays a crucial role in designing and managing compensation and benefits programs that attract, motivate, and retain talented employees. This involves developing competitive salary structures, implementing performance-based incentives, designing employee benefit plans, and ensuring compliance with legal and regulatory requirements. Effective compensation and benefits strategies help the organization reward and retain top performers.

    5. Employee Relations

    Employee relations focus on maintaining a positive and productive work environment by fostering healthy relationships between employees and management. HRM is responsible for developing and implementing policies and procedures that ensure fair treatment, grievance handling, conflict resolution, and promoting employee engagement and well-being. Strong employee relations contribute to higher employee satisfaction, productivity, and overall organizational performance.

    6. Performance Management

    Performance management involves setting clear expectations, providing regular feedback, and evaluating employee performance. HRM designs performance management systems and processes that align individual goals with organizational objectives, measure performance objectively, and reward high performers. Effective performance management enables continuous improvement, identifies training and development needs, and supports the growth and development of employees.

    7. HR Analytics

    With the advent of technology, HRM has increasingly started leveraging data and analytics to make data-driven decisions. HR analytics involves collecting, analyzing, and interpreting data related to HR activities and metrics, such as employee turnover, recruitment effectiveness, training effectiveness, and workforce diversity. HR analytics provides valuable insights that aid in better decision-making, talent management, and improving overall HR strategies.

    In conclusion, the scope of Human Resource Management is vast and covers various functions such as human resource planning, recruitment and selection, training and development, compensation and benefits, employee relations, performance management, and HR analytics. By effectively managing these functions, HRM contributes to the success of an organization by ensuring the right people are in the right positions and creating a conducive work environment for employee productivity and growth.

  • Importance of HRM for Organizational Success

    Importance of HRM for Organizational Success

    Human Resource Management (HRM) plays a vital role in the success of any organization. Successful businesses understand that their employees are their most valuable asset, and HRM is the function responsible for managing this precious resource. In this tutorial, we will explore the significance of HRM for organizational success.

    1. Recruitment and Selection

    The HRM department is responsible for attracting, recruiting, and selecting the right individuals for various positions within an organization. By employing efficient recruitment strategies, HRM ensures that the organization hires competent and qualified individuals who can contribute to its success. A strong recruitment process helps in building a talented workforce, which is crucial for achieving organizational goals.

    2. Employee Development and Training

    HRM plays a significant role in enhancing the skills and capabilities of employees through training and development programs. By identifying training needs, organizing workshops, and supporting professional development, HRM ensures that employees have the necessary knowledge and skills to perform their jobs effectively. This focus on employee development leads to increased productivity and improved performance across the organization.

    3. Performance Management

    An effective HRM system incorporates performance management practices that provide feedback, recognition, and accountability. HRM sets performance objectives, conducts regular evaluations, and provides constructive feedback to employees. By aligning individual and organizational goals, HRM fosters a culture of performance excellence, resulting in improved productivity and overall success.

    4. Employee Engagement and Retention

    HRM plays a crucial role in fostering employee engagement and retention. It implements strategies that help create a positive work environment, promote work-life balance, and ensure employee satisfaction. Engaged and satisfied employees are more likely to be committed to the organization and its values, leading to increased retention rates and a stronger organizational culture.

    5. Conflict Resolution and Employee Relations

    Conflict is inevitable in any workplace. HRM handles employee grievances, mediates disputes, and ensures fair and ethical treatment of employees. By promoting effective communication and resolving conflicts promptly and fairly, HRM helps maintain a harmonious work environment where employees can focus on their work and contribute to the organization’s success.

    6. Compliance with Legal and Ethical Standards

    HRM is responsible for ensuring compliance with all legal and ethical standards in the workplace. It keeps track of labor laws, employment regulations, and industry standards, ensuring that the organization operates within the legal framework. This commitment to compliance protects the organization from legal issues and promotes a culture of ethical behavior.

    Conclusion

    In conclusion, HRM is essential for the success of any organization. It not only manages the workforce effectively but also contributes to creating a positive work environment, nurturing employee talent, and aligning individual and organizational goals. By investing in HRM practices, organizations can enhance their chances of achieving long-term success and sustainable growth.

    Remember, a dedicated HRM department or professional is key to implementing effective HRM strategies. If you want your organization to thrive, prioritize the importance of HRM for your organizational success.

    Note: This tutorial provides a general overview of the importance of HRM for organizational success. For a more detailed understanding, it is recommended to consult HRM experts and professionals.

  • Evolution of Management

    Evolution of Management

    In this article, you’ll learn about Evolution of Management like Classical theory of management, Neoclassical theory of management, Modern theory of management and more.

    Peter Ferdinand Drucker, one of the leading management gurus, said it best—“Management is doing things right; leadership is doing the right things

    Management theories help you study an organization, its corporate designs, structures and behavior of individuals or groups. By studying the impact of internal and external business environments, these theories provide a lens to address critical questions about how a business works or operates. Management theories can be grouped under three categories—classical theory, neoclassical theory and modern management theory. Let’s take a look at the individual theories in detail:

    1. Classical theory of management

    The theories that emerged under the classical evolution of management thought are:

    • Scientific Management

    Fredrick Winslow Taylor, an engineer, proposed and developed the Scientific Management Theory. He is also known as the Father of Scientific Management and his school of thought came to be known as Taylorism. He introduced a scientific approach to productivity, which meant that an increase in efficiency can lead to higher productivity and profits. He believed that research-backed and standardized procedures were necessary for effective management.

    • Administrative Management

    Henry Fayol, a French mining engineer, laid down five functions and 14 principles of management under the theory of Fayolism. This gave way to the school of administrative management. He believed that these functions and principles can guide managers to fulfill their responsibilities effectively and they should have the liberty to determine how to use them.

    2. Neoclassical theory of management

    The theories that emerged under the neoclassical evolution of management practices are:

    • Human Relations Management

    Developed by Elton Mayo, an Australian psychologist, the Human Relations Theory of Management was proposed after a series of experiments, also known as Hawthorne Studies or Hawthorne Experiments. This theory emerged as a response to the criticism faced by the classical management theories, where social factors such as human behavior and attitudes weren’t considered important.

    • Behavioral Management

    Behavioral approaches to management set the pace for how modern workplaces build an employee-friendly culture. Abraham Maslow, an American psychologist, proposed the hierarchy of need, where employee need and expectations were prioritized. The theory suggests that human relations and behavior are essential in driving efficiency in teams and managing the workforce successfully.

    3. Modern theory of management

    The theories that emerged with the modern evolution of management needs are:

    • Systems Approach

    The Systems Theory of organization has its roots in biology and systems science. This concept broke away from classical management theory that viewed organizations as machines and moved toward a more holistic view that sees them as networks of people, procedures, and activities. Systems Theory allows for an understanding of the connections between various parts of the organization and how they interact with one another.

    • Contingency Approach

    The Contingency Management Theory suggests that there isn’t any perfect way to organize a business or corporation. The optimal solution lies in the situation that an organization operates in. A business is a contingent (depends) upon internal or external environments.

    Administrative Management

    Father of Management — Henry Fayol (1841 — 1925)

    Henry Fayol contributed 14 principles to Management which is widely applied in all the Organization

    1. Division of Work
    2. Authority and Responsibility
    3. Discipline
    4. Unity of Command
    5. Unity of Direction
    6. Subordination of individual interest to general interest
    7. Remuneration of personnel
    8. Centralization
    9. Scalar Chain
    10. Order
    11. Equity
    12. Stability of Tenure of Personnel
    13. Initiative
    14. Esprit-de-corps

    Critical Evaluation

    • Too formal
    • Not pay adequate attention to workers
    • Vagueness
    • His principle hinted but did not elaborate that mgt can and should be taught.

    – Despite these limitations, Fayol made a unique and outstanding contribution to Mgt theory.

    Scientific Management

    Father of Scientific Management F. W. Taylor (1856 —1915)

    “The art of knowing exactly what you want men to do and see that they do it in the best and cheapest way.”

    Management is Science-based upon certain clearly defined principles.

    Principles of Scientific Management

    • Science not the rule of thumb
    • Harmony not discord
    • Corporation, not individualism
    • Maximum output in place of restricted output
    • Development of each individual to his greatest efficiency and prosperity

    Mental Revolution — Workers and Management, Workmen towards their work, their fellowmen, and towards their employees. The mental attitude of the two parties.

    Techniques of Scientific Management

    1. Time Study
    2. Motion Study
    3. Scientific task Planning
    4. Standardization and simplification
    5. Differential piece rate system
    6. Functional foremanship

    According to Taylor, one supervisor cannot be an expert in all aspects of work supervision. In the system of Functional Foremanship in which eight supervisors supervise a worker’s job.

    1. Route Clerk
    2. instruction card clerk
    3. Time and cost clerk
    4. Shop disciplinarian
    5. Gang boss
    6. Speed boss
    7. Repair boss
    8. Inspector

    Critical Evaluation

    • Mechanistic Approach
    • Umealistic Assumptions
    • Narrow View
    • Impracticable
    • Exploitation of Labour

    Human Relations Management

    George Elton Mayo (1880— 1949) Hawthrone Experiments

    1. Illumination Experiments ( illumination affected Productivity)
    2. Relay assembly Test room Experiments ( Working conditions and Productivity). piece work, rest pauses, shorter working hours,
    3. Mass interviewing Programme ( Direct Questions), Grievances, deep rooted disturbance, satifactory level

    Outcomes

    • Workers working in a group develop bond of relationships
    • Behaviour at workplace depens on their mental state, emotions and prejudices
    • Emotional factors play an important role in determining
    • Human and liberal attitude of supervisor helps in improving performance.
    • Managerial skills and technical skills are not necessary to be a successful leader.

    HENRY LAURENCE GANTT (1861 -1919)

    • Contribution was famous, Gantt Chart, used for scheduling and control of work.
    • Task and Bonus plan ( Minimum wages is guaranteed to all workers irrespective of output, Extra wages are paid for extra work)

    FRANK BUNKER G1LBRETH (1868 —1924)

    • Motion study, time study
    • Fatigue Study
    • Work Simplification — 3 positional promotion plan ( present position, the position to be held before promotion to his present position and the next higher position)
  • Human Resource Management (HRM) – Definition and Concept

    Human Resource Management (HRM) is an integral part of any organization, encompassing the management of employees and their relationship with the organization. It involves the recruitment, selection, training, and maintenance of a productive workforce, ensuring that they are motivated and aligned with the organization’s goals.

    Definition

    HRM can be defined as the strategic approach to managing human resources that aims to maximize employee performance, competency, and well-being within the organization. It involves designing and implementing policies, procedures, and programs to efficiently manage employees and their work environment.

    Key Concepts

    1. Recruitment and Selection

    Recruitment and selection are vital components of HRM. The process involves attracting qualified candidates through various channels, such as online job portals, social media, and professional networks. Once candidates are identified, HR managers conduct interviews, assessments, and background checks to select the most suitable candidates for the organization.

    2. Training and Development

    To enhance employee skills and knowledge, organizations invest in training and development programs. These programs may include on-the-job training, workshops, seminars, and online courses. By providing employees with opportunities to grow and develop professionally, HRM ensures that the organization stays competitive and employees remain engaged and motivated.

    3. Performance Management

    HRM oversees the process of measuring, evaluating, and managing employee performance. This includes setting performance goals, conducting performance reviews, and providing feedback. Performance management aims to improve individual and organizational performance and identify areas for development and improvement.

    4. Employee Compensation and Benefits

    HRM ensures that employees are fairly compensated for their contributions to the organization. This includes salary and benefits administration, such as healthcare plans, retirement packages, and performance-based incentives. The goal is to create a competitive compensation structure that attracts and retains talented employees.

    5. Employee Relations

    Maintaining positive relationships between employees and the organization is a key aspect of HRM. This involves addressing employee concerns, managing conflicts, and fostering a healthy work environment. Good employee relations contribute to increased productivity, job satisfaction, and overall organizational success.

    6. Compliance with Employment Laws

    HRM ensures that the organization complies with relevant employment laws and regulations. This includes adhering to labor standards, promoting equal employment opportunities, preventing discrimination, and maintaining a safe and inclusive work environment.

    Conclusion

    Human Resource Management plays a vital role in any organization, managing the most valuable asset – its employees. By effectively recruiting, training, and retaining a skilled workforce, HRM contributes to the organization’s success and helps create a positive work culture. Understanding the definition and concepts of HRM is essential for organizations to optimize their human resources and achieve their strategic objectives.

  • The Roles of a Managers

    The Roles of a Managers

    Managers are the people in the organization responsible for developing and carrying out this management process. The four primary functions of managers are planning, organizing, leading, and controlling. By using the four functions, managers work to increase the efficiency and effectiveness of their employees, processes, projects, and organizations as a whole.

    The roles played by the managers are as follows

    1. Interpersonal Role

    Interacting with people inside and outside the Organisation.

    • Figurehead — as a symbolic head of an organisation, the manager performs routine duties of a legal nature
    • Leader — Hiring, Training, motivating and guiding subordinates
    • Mason – Interacting with other managers outside the orgn to obtain favours and information

    2. Informational Role

    Serving as a focal point for the exchange of Information

    • Monitor — Seeks and receive information concerning internal and external events so as to gain understanding of the Orgn and its environment.
    • Disseminator — Transmits information to subordinates, peers and superiors within the Organisation
    • Spokesperson — Speaking on behalf of the Orgn and transmitting information on Orgn plans, policies and actions to outsiders.

    3. Decisional Role

    Makes important decision

    • Entrepreneur — Initiating changes or improvements in the activities of the Orgn
    • Disturbance handler- Taking charge and corrective action when Orgn faces unexpected crises
    • Resource allocator — Distributing Orgn’s resources like money, time, equipment and labour
    • Negotiator — Representing the Orgn in bargaining and negotiations with outsiders and insiders
  • Management as an Art, Science, and Profession

    Management as an Art, Science, and Profession

    Management as an Art

    The main elements of art are —

    • Personal Skills
    • Practical know-how
    • Application of knowledge
    • Result orientation
    • Creativity
    • Constant practice aimed at perfection

    Management is basically an art because of the following reasons —

    • A manager applies his knowledge and skills to coordinate the efforts of his people
    • Mgt seeks to achieve concrete practical results
    • Mgt is creative. It brings out new situation and converts into output
    • Effective Management lead to realization of Organizational and other goals.
    • Mastery in Management requires a sufficiently long period of experience in, managing.

    Management as Science

    The essential elements of Science

    • Systematised body of Knowledge
    • Underlying principles and theories developed through continuous observation, inquiry,  experimentation and research.
    • Universal truth and applicability.
    • Organised body of knowledge can be taught and learnt in class room and outside.
    • Mgt is a social science. It contains all the essentials of science. It is an inexact science.
    • PERT, CPM, Cost MC, Finance, MB O etc

    Thus, the theory (Science) and practice (art) of Mgt go side by side for the efficient functioning of an organization.

    Management as a Profession

    The essential attribute of a profession

    • A well-defined and organised body of knowledge
    • Learning and Experience
    • Entry restricted by qualification
    • Recognised national body
    • Ethical code of conduct
    • Dominance of service motive

    Management is not a full-fledged profession now due to the following shortcomings.

    • Skills not fully developed
    • No uniform method of entry and Objective is monetary rather than service.
    • Ethical code is not strict
    • Associations are not statutory bodies

    But in India, it is developing into a profession and it will be achieved in due course.