Responsibilities Of Purchasing

1.Studying the market and keeping itself abreast of condition supplies,prices,price trends and deliveries.

2. Maintaining a complete record of sources of supply of materials supplies,components,equipments,parts,tools,etc.

3.Advising management on the effectiveness of purchasing policies ,and development of new policies.

4. Developing and maintaining an effective buying service.

Purchasing policies1.Hand-to-mouth Buying.

2.Market Purchasing.

3.Purchasing on Long-rouge Contract

4. Hedging

5.Speculative Buying

6.Upstream Buying

Purchasing Practices• Steady-use Items

• Big One-shot Items

• Middle-sized Purchases

• Small Items

• Selection of Vendors

• Purchase Price

• Fair Dealings

• Discounts

• Value Analysis • Gifts

Major Function & Sub Function Of Personnel Management

Operating Training

Executive Development

DeterminingOrganisational needs

Planning & DesigningOrganisational Structure

Designing Interpersonal Relationship

Seperation

Promotion

Manpower Planning

Recruitment

Selection

Placement

Induction & Orientation

Transfer

Chief Personnel Executive

OrganisationalPlanning

& DevelopmentStaffing Training Development

Part I

Chief Personnel Executive

Wage & SalaryAdministration

Employee ServicesMotivation

Job Evaluation

Wage & Salary Administration

Incentive Compensation

Performance appraisal

Non-FinancialIncentives

Satisfaction of Social& psychological

needs

Safety

Counseling

Medical

Recreation

Leave, PensionProvident

Fund & Gratuity

Part II

Chief Personnel Executive

Employee Records Labour Relation Personnel Research

CollectionOf data

Analysis of data

Developing Information

For decisions

Grievance Handling

Implementing Labour Laws

Discipline

CollectiveBargaining

Survey

Data Collection

Development ofMore Appropriate

Programmers &policies

Evolution of PersonnelProgrammers

Identification OfNeed & areas of change

Part III

Functions of Personnel management

1.Organizational Planning and Development :

I. Determining Organizational Need.

II. Designing Organizational Structure

III. Designing Interpersonal Relationships.

2.Staffing:

I. Manpower Planning

II. Recruitment

III. Selection

IV. Placement

V. Induction and Orientation.

VI. Transfer

VII. Promotion.

VIII. Separation

3.Training and Executive Development : I. Operative Training

II. Executive Development.

4.Wage and Salary Administration :

I. Job Evolution

II. Wage and Salary Programme.

III. Incentive Compensation.

IV. Performance Appraisal.

.

5.Motivation :

I. Non-Financial Incentives

6. Employee Services :I. Safety

II. Employee Counseling

III. Medical Services

IV. Recreation Canteen and other Welfare Programmes

V. Leave , Provident Fund ,Pension and Gratuity Programmes

7. Employee Record :

8.Labour Relations :

I. Grievance Handling

II. Discipline

III.Compliance with Labour Laws

IV.Collective Bargaining

9.Personnel Research :

MARKETING – Definition - 1948

• The performance of Business activities that direct the flow of goods & services from Producer to the Consumer or User--- American Marketing Association

• It ignores important aspect of marketing ie. To Plan & Produce the goods that Customer wants.

MARKETING - Definition

• Marketing is a Total System of business activities designed to plan,price,promote & distribute want – satisfying goods & services to Present & Potential Customers.

• It has many important implications…

EVOLUTION of MODREN MARKETING

• Evolved over a period of century

• Primitive Society– Based on agriculture & handicrafts– Exchange is very limited– Marketing non-existant

EVOLUTION of MODREN MARKETING

• Early stages of industrialization– Excess of demand over supply– Main function is to move goods from the point of

production to p[oint of consumption– Marketing does not pose a serious problem

• Production takes place on Mass Scale– Production exceeds demand– Mass production needs mass distribution– Marketing assumes important role– Main focus of marketing remains on selling &

distribution

MARKETING EVOLUTION

• Affluent economy– Customer highly sophisticated

– His wants take a specific shape– Customer wants not “a thing” but “ the thing”

• Production Orientation changes to

Sales Orientation changes to

Marketing Orientation

Organisational Structure Of Sales-Oriented Company

General Manager

Finance Personnel Administration

Research Development

Manufacturing Sales

Production Purchasing Product Design Industrial Engineering Advertising

Sales Supervisor

Marketing Research

Salesman Training

Oraganisational Structure Of a Marketing –Oriented Company

General manager

FinancePersonal

Administration Marketing ManufacturingResearch &

Development

ProductionIndustrial

Engineering

Sales:Field Sales

Customer Services,Sales TrainingWareHousing

& Transportation

ServicesMarketing research

Product Planning and Development,

Sales Budgeting,Sales Forecasting,

Advertising Channel,Establishment,

Sales Promotion

MARKETING - IMPORTANCE

• Major revenue earning of organization• Perceptual difference between a Producer

& Customer wrt functional utility, features, service, price etc.

• Communication gap between producer & customer is bridged by Marketing

• Marketing creates place, time & ownership utility

• Very large employment generation

FUNCTIONS OF MARKETING

• Setting Objectives– These objectives are to be driven from overall

Corporate objectives.– Sales target vs Market share– Building a strong Brand Image– Carving a niche in the market– A set of objectives as against one & hence

need for priority

MARKETING MIX

• It is marketing manager’s instrument for attaining his objectives.

• Comprises of – The Product– Product Pricing– Distribution Channels– Promotional Activities

PRODUCT PLANNING & DEVELOPMENT

• Ford’s Model T automobile policy “You can have any colour you want so long as it is black”

IS NO LONGER TRUE

PRODUCT PRICING

• Purpose– Achieve targeted market share

– Prevent Competition– Stabilize market price of Product– Maximize profits– Obtain desired ROI

BUT he has to consider many factors

FACTORS FOR PRICING

• Cost of production• Margins of wholesalers & Retailers• Cost of physical distribution• Other selling expenses• Price of competing brands & substitute products

• Estimated demand & alternative prices• Targeted market share & sales volume• Single pricing policy or variable / Discounts

DISTRIBUTION CHANNELS & PHYSICAL DISTRIBUTION

• Institutional structure for making the product available to the customer at the right place & the right time

• Consists of own company, wholesalers, retailers . Ware housing, transporters. Other Intermediaries

• Selected distribution vs All outlets

PROMOTION

• The old saying “ If a man can write a better book, Preach a better sermon’ Or make a better mouse trap than his

neighbour, though he builds a house in the

woods…The world will make a beaten path to his door”

IS NO LONGER TRUE