Planning Of Short Term Activities

Published Date: 02 Nov 2017

ABP level 7

Lecturer: Mr. Munnian

This proposal is submitted as the partial fulfilment of Post-Graduate Diploma in Marketing Management from ABP via London Academy of Management Sciences.

Contents

Student details

Surname Majid Forename Abdul

Student ID abdu/m8670

The programme of research

Strategic Resource Management

Task 1

1.1 Investigate how human resource management contributes to the achievement of organisational objectives.

According to Ivancevich and Glueck, Human resource management is the function performed in organizations that facilitates the most effective use of people to achieve organizational and individual goals.

There are three types of organisational objectives,

Strategic objectives are those objectives which are long term, administration and top management set these objectives for example if an organisation want to be a market leader it is not possible in one night, employees of that organisation has to work hard for several years to get that position in the market.

The second type of objectives are tactical objectives which are short term objectives, departmental management set these objectives and the period of time of tactical objectives is less than strategic objectives but greater than operational objectives for example if an organisation want to increase its sales by 5% in one year then it is a tactical objective.

Operational objectives are like day to day objectives for example daily reports of any organisation and these objectives can be set by individuals of that organisation.

Strategic human resource management deals with

Organisations to meet the needs of their employees while promoting organisational goals.

Any aspects of a business that affects employees, such as hiring and firing, pay, benefits, training, experience and knowledge sharing.

Strategic Human resources may also provide work incentives, safety procedure information, and sick or vacation days.

Organisations who work hard to meet the needs of their employees can cultivate a work atmosphere which increases productivity and Strategic Human resource management is the best way to achieve this.

Organisations which utilise the skills of employees to promote core competence and development.

Operational cost that how employees of any organisation can cut down this cost.

Organisational technology, knowledge and raw material to build competitive capabilities.

How an organisation can get a state of optimum utilisation of resources by using all available skills of employees.

1.2 Critically evaluate the role of human resource management within a business organisation.

Adi Godrej et al are of the view that all corporate strengths are dependent on people. As human resources have become viewed as more critical to organizational success, many organizations have realized that it is the people in an organization that can provide a competitive advantage.

In an organisation the role of Human resource management is

To plan for the needs of employees by planning and thinking ahead can help to improve the rate of skilled employees who chose to remain working for an organisation.

To improve the employee retention rate which can reduce the money spend on finding and training of new employees.

To create a human resources plan which is important to consider, what employees may want or need and what the company can reasonably supply. A larger company can usually afford training and benefit programs but smaller companies cannot afford to offer.

To engage smaller organisations in strategic human resource management to provide specialized on-site training, even if provided by senior members of the organisation, and offering one-on-one assessment and coaching sessions which can help employees to reach their peak of performance.

To develop a justifiable equality based reward system where each employee gets what he deserves.

The most important aspect of strategic human resource management is employee development. This begins when a company is recruiting and interviewing and then training of potential candidates who fulfil the criteria or requirement of the job vacant.

To discuss and negotiate internal as well as external maters on table between management and trade union to promote the employee relations and minimise the risk of strikes and bans.

To deal with conflicts among administration, management and employees and to solve individual disputes at the work place.

However different scholars for example DAVID ULRICH challenge this theory, they argue on the basis that, Human Resource should be defined not by what it does, but by what it delivers.

There are many examples in the developing countries where business organizations had to face loss because of the unskilled labour or the corrupt employees. So where human resource generates several benefit to an organisation, there are equally chances of decline because of the conflicts with labour unions and the management.

1.3 Evaluate the processes that an organisation uses to plan its human resource requirements.

Human resource planning is about Process of anticipating and making provision for the movement of people into, within, and out of an organization. The purpose of human resource planning is to maintain right time, to forecast right number, to optimize right skills and to utilize the right cost for the organisation.

Human resource process has different planning levels

Corporate level planning

Intermediate level planning

Operational planning

Planning of short-term activities

Forecasting

A planning tool that helps management in its attempts to cope with the uncertainty of the future, relying mainly on data from the past and present and analysis of trends.

Trend analysis

An aspect of technical analysis that tries to predict the future movement of a stock based on past data. Trend analysis is based on the idea that what has happened in the past gives traders an idea of what will happen in the future.

Ratio analysis

A tool used by individuals to conduct a quantitative analysis of information in a company's financial statements. Ratios are calculated from current year numbers and are then compared to previous years, other companies, the industry, or even the economy to judge the performance of the company. Ratio analysis is predominately used by proponents of fundamental analysis.

Scatter plot

A scatterplot is a useful summary of a set of bivariate data (two variables), usually drawn before working out a linear correlation coefficient or fitting a regression line. It gives a good visual picture of the relationship between the two variables, and aids the interpretation of the correlation coefficient or regression model.

All though there are many different types of organisations there are common factors in every organisation. It's the interaction of people to achieve objectives which form an organisation. Structure is needed to ensure that people interactions and efforts or co-ordinated. This is why human resource management is required so that the activities of the organisation and the efforts of its members are directed and controlled towards achieving objectives.

HRM management is a shared responsibility. There's the line management who have the authority and control over staff in their departments. The top management take an active part in ensuring there are harmonious working relationships among departments.

If the HRM function is to be effective there has to be good team work, and co-operation and consultation between line managers and HR manager. The range of HRM responsibilities within an organisation is very wide which includes Human Resource Planning, Recruitment, Selection and Induction, Education, Training and Development, Employee relations, employee services, welfare, and health and safety.

Task : 2

2.1 Evaluate the recruitment and retention strategies used in an organisation.

Employers recruiting staff can make simple but very expensive mistakes in all sorts of ways when trying to take on new staff. Sound recruitment procedures help avoid mistakes, as well as ensure that your recruitment process improves and you take on better staff as well.

Recruitment from labout market

Many organisations recruit employees from the labour market because its not cheap as compared to the other alternatives.

Agencies

There are many agencies available which do the recruitments for the big organizations and these agencies make sure that the candidate is qualified and experienced enough to do the job.

Educational institutes

Some organisations focus on the fresh candidates to employ to do that they offer jobs to the freshly graduates or master degree holders of renowned educational institutes.

Job centres

Job centres are also available to select the right candidate for the job. Companies give recruitment criteria to job centres and then however fulfil the criteria can apply for the vacant position

Internet recruitment

Now a days most of the companies select candidates from the internet because it is very cheap process and lot of money can be saved by not employing recruiters.

Advertising

Some organisations search for the candidates by advertising different places where they advertise for their goods and services.

Retention

Employee Retention Strategy is about how an organisation can attract and retain their top Performers. Talent is a driving force behind Human Resource contributions to organizational success. The ability to attract and retain such talent is rapidly becoming one of the key issues for human resource managers and their organizations across the globe.

High performance organizations are consistently outperforming their competitors on a number of human resource factors, including the level of teamwork and openness between co-workers, the training and development opportunities they offer to employees and the degree of pro activity in HR planning. Developing this capability begins with the realization that effective human resource management enhances the competitiveness of organizations.

Different organisations use different strategies for the retention of employees, some of the strategies are given below

Reward system

Career development

Training

Profit sharing scheme

Bonus

Welfare

Housing

Company car

The companies now offer various attractive compensation packages to the employees and other good features to attract and retain the work force. The other developments like business process outsourcing, knowledge process outsourcing, virtual organizations also provide more opportunities to the employees for switching into more jobs.

Talent management is an approach undertaken to attract, develop and retain people with the aptitude and abilities to meet current and future organisational needs. Talent management involves individual and organisational development in response to a changing and complex operating environment. It includes the creation and maintenance of a supportive, people oriented organisation culture.

Importance of talent management like human capital, talent management is gaining increased attention. Talent management brings together a number of important human resources and management initiatives.

Organisations that formally decide to manage their talent undertake a strategic human resource management.

2.2 Critically assess the techniques that are used for employee development in an organisation.

Employee development is a joint, on-going effort on the part of an employee and the organization for which he or she works to upgrade the employee's knowledge, skills, and abilities. Successful employee development requires a balance between an individual's career needs and goals and the organization's need to get work done.

Training

Training is crucial for organizational development and success. It is fruitful to both employers and employees of an organization. An employee will become more efficient and productive if he is trained well.

Training is given on basic grounds:

New candidates who join an organization are given training. This training familiarize them with the organizational mission, vision, rules and regulations and the working conditions.

The existing employees are trained to refresh and enhance their knowledge.

When promotion and career growth becomes important, Training is given so that employees are prepared to share the responsibilities of the higher level job.

E-learning

Many organisations increase the knowledge of their employees by e-learning. E-learning is basically the knowledge about the modern technologies like internet.

Certification

Certification is another way of employee development. By certifying only the capable and rational employees can be employ which can help in increasing the productivity of that organisation.

Job knowledge

In depth knowledge of all requirements of the job. How well does the employee understand all phases of the job as defined by the performance standards set for the position?

Quality of work

Accuracy and neatness. Does the employee produce a high quality work product? Is quality work apriority for the employee?

Productivity

Consider employee’s ability to prioritize and organize work effectively to meet assigned deadlines. Were assignments timely completed and appropriate follow-up implemented? Is the employee a self starter?

Dependability

Employee needs little or no direction. To what extent can the employee be relied upon to carry out instructions; and the degree to which the employee can work with limited supervision?

Attendance

Attendance and punctuality are very important in maintaining a normal work load and efficient schedule. Employees are expected to report to work regularly and be ready to perform their assigned duties at the beginning of their assigned work shift. Is the employee absent frequently? Are the absences affecting his/her performance? Does this pattern constitute a hardship on the work environment?

Relation with other

Consider employee’s abilities to maintain a positive and harmonious attitude in the work environment. How well does the employee relate to the supervisors, co-workers and the broader University community.

Commitment to safety

To what extent has the employee adhered to the recommended safe work practices, participated in safety training programs; and contributes to the recognition and control of hazard in his/her work area.

Mentoring

Mentoring enables an individual to follow in the path of a more experienced colleague who can pass on knowledge and open doors to otherwise out-of-reach opportunities. The mentoring relationship is therefore not generally a line management role but usually involves someone with more experience than the mentee in the role of the mentor and can be particularly effective in times of transition (e.g. as a new staff member, during a programme of study or when taking on additional roles and responsibilities). It is also a useful career development tool.

Coaching

Coaching can be a short-term arrangement until the original reason for the partnership is fulfilled (or ceases), or it can last many years. In the case of a new staff member, it is recommended that he/she be appointed a coach for the duration of the probationary period to enable them to settle into the organisation.

2.3 Evaluate the contribution of human resource development techniques in ensuring employee engagement.

Employee engagement means many things to many people. Without a clear definition it is hard to know what to focus on, how to measure it, and what drives it – essential features that shape improvement strategies.

Employee engagement can be measured in many differing ways like

Employee satisfaction

Loyalty

Management by objectives

Participation in decision making

Consultation upon major issues

performance

Morale

Commitment

Productivity

Pride

passion

Based on this, a definition of employee engagement was developed:

Employee Engagement has two distinct yet related main factors,

Employee Satisfaction

The level of contentment or happiness a person assigns to attributes of their job their organization, and the general or overall way they feel about their employment.

Employee Commitment

The pride people feel for their organization as well as the degree to which they, intend to remain with the organization, desire to serve or to perform at high levels, positively recommend their organization to others, and strive to improve the organization’s results.

The multi-dimensional nature of this definition reflects the complexities of organizational life and of careers – neither satisfaction nor commitment on their own capture the full scope of employee engagement. Happy employees who are about to leave and unhappy employees who are determined to stay are both common but neither can support high levels of organizational performance.

Given that this definition embraces two distinct but related constructs it is interesting to consider how they might interact. Schmidt’s literature review for TBS suggested that satisfaction and commitment be mapped jointly to identify the different kinds of engagement situations found in many workplaces.

What drives employee engagement?

When the employee engagement literature review was completed in 2004 there were a few surveys that reported satisfaction and commitment as the main variables. However, at that time the definition and model (discussed above) that emerged from the review were still largely conceptually based. Since then several public jurisdictions have started to do more robust employee engagement surveys based on this definition of engagement.

The research also identified the drivers of employee engagement. Their model starts with a leadership foundation where both the executive and immediate supervisory levels are identified as important drivers. From this foundation several workplace drivers operate: pay and benefits; staffing practices; respectful environment; recognition; professional development; vision/mission/goals; teamwork; physical environment and tools; empowerment; stress and workload. All of these drive the three organizational outcomes of commitment, job satisfaction and organization satisfaction.

Common findings emerged from these studies even though each used a unique employee engagement survey tool. First, the outcome variables found in each study were satisfaction and commitment. And, while there were differences in the labels used, the most common drivers of employee engagement were:

management effectiveness

colleagues/work unit

understanding of and support for the organization’s vision, goals, mandate

career progress and development

quality of supervision

autonomy: having the authority to make needed work-related decisions

workload

2.4. Critically analyse the effectiveness of human resource management strategies in supporting organisational strategy.

Hr and strategic objectives

Strategic human resources objectives are goals aligned with the organization's goals. In fact, in Human Resource Management Theory and Practice, John Bratton and Jeffrey Gold identify strategic human resource management as the managerial process requiring human resource (HR) policies and practices to be linked with the strategic objectives of the organization. A number of human resources objectives support organizational goals, such as profitability, business reputation, ethics and principles.

Succession Planning

For many employers, a common human resource strategic objective is to ensure the organization’s workforce is capable of meeting future staffing needs. To achieve this goal, human resources staff and line managers generally work together in assessing current workforce skills and qualifications. This helps determine the best course of action for human resources activities such as succession planning. Succession planning identifies employees who show promise and aptitude. It then provides them with the training and development they need for transitioning into higher-level positions or more responsible roles within the company.

Workforce Mobility

Another form of workforce development that supports human resources strategic objectives and long-range planning is cross-training. Cross-training -- training employees to perform job duties in other departments or areas of the business -- improves workforce mobility and expertise through broadening employee skills and expertise. Increasing the number of different job roles employees can perform strengthens an organization’s business continuity plan in the event employees are unable to fulfil their responsibilities due to illness, termination or retirement. Workforce mobility increases profitability; companies that are able to fill positions with existing resources can minimize hiring costs for new employees.

Assessment of strengths and weakness

Strengths and weaknesses are the internal side of a SWOT analysis. SWOT is a tool for auditing an organization and its environment. It is the first stage of planning and helps managers focus on key issues. Once key issues have been identified, they feed into objectives. It can be used in conjunction with other tools for audit and analysis, such Porter's Five-Forces analysis.

SWOT stands for strengths, weaknesses, opportunities, and threats. Strengths and weaknesses are internal factors. For example, a strength could be their specialist expertise. A weakness could be the lack of good genetics. Opportunities and threats are external factors. For example, an opportunity could be a developing market such as the Internet. A threat could be a new competitor in their home market.

Business process reengineering (BRP)

Business process reengineering (BPR) is the analysis and redesign of workflow within and between enterprises.

BPR reached its heyday in the early 1990's when Michael Hammer and James Champy published their best-selling book, "Reengineering the Corporation". The authors promoted the idea that sometimes radical redesign and reorganization of an enterprise (wiping the slate clean) was necessary to lower costs and increase quality of service and that information technology was the key enabler for that radical change.

Hammer and Champy felt that the design of workflow in most large corporations was based on assumptions about technology, people, and organizational goals that were no longer valid. They suggested seven principles of reengineering to streamline the work process and thereby achieve significant levels of improvement in quality, time management, and cost:

Organize around outcomes, not tasks

Identify all the processes in an organization and prioritize them in order of redesign urgency

Integrate information processing work into the real work that produces the information

Treat geographically dispersed resources as though they were centralized

Link parallel activities in the workflow instead of just integrating their results

Put the decision point where the work is performed, and build control into the process

Capture information once and at the source

Benchmarking

Benchmarking is the process of identifying "best practice" in relation to both products and the processes by which those products are created and delivered. The search for best practice can take place both inside a particular industry, and also in other industries.

The objective of benchmarking is to understand and evaluate the current position of a business or organisation in relation to "best practice" and to identify areas and means of performance improvement.

The Benchmarking Process

Benchmarking involves looking outward (outside a particular business, organisation, industry, region or country) to examine how others achieve their performance levels and to understand the processes they use. In this way benchmarking helps explain the processes behind excellent performance. When the lessons learnt from a benchmarking exercise are applied appropriately, they facilitate improved performance in critical roles within an organisation or in key areas of the business environment.

Task : 3

3.1 Investigate how physical resource management contributes to the achievement of organisational objectives

According to Scott, Clothier and Spriegal, The objectives of Human Resource Management, in an organisation, is to obtain maximum individual development, desirable working relationships between employers and employees, and to affect the moulding of human resources as contrasted with physical resources‖. The basic objective of human resource management is to contribute to the realisation of the organisational goals. However, the specific objectives of human resource management are as follows

To ensure effective utilisation of human resources, all other organisational resources will be efficiently utilised by the human resources

To establish and maintain an adequate organisational structure of relationship among all the members of an organisation by dividing of organisation tasks into roles, positions and jobs, and by defining clearly the responsibility, accountability, authority for each job and its relation with other jobs in the organisation

To generate maximum development of human resources within the organisation by offering opportunities for advancement to employees through training and education

To ensure respect for human beings by providing various services and welfare facilities to the personnel

To ensure reconciliation of individual/group goals with those of the organisation in such a manner that the personnel feel a sense of commitment and loyalty towards it

To identify and satisfy the needs of individuals by offering various monetary and non-monetary rewards. In order to achieve the above objectives, human resource management undertakes the following activities

Human Resource Planning

determining the number and kinds of personnel required to fill various positions in the organisation

Recruitment, selection and placement of personnel, i.e., employment function

Training and development of employees for their efficient performance and growth

Appraisal of performance of employees and taking corrective steps such as transfer from one job to another

Motivation of workforce by providing financial incentives and avenues of promotion

Remuneration of employees. The employees must be given sufficient wages and fringe benefits to achieve higher standard of living and to motivate them to show higher productivity

Social security and welfare of employees

3.2 Critically evaluate the role of physical resource management within an organisation.

ROLE OF HUMAN RESOURCE MANAGEMENT

The main roles of human resource management are classified into two categories:

(a) Managerial Roles

(b) Operative Roles

Managerial Roles

Following are the managerial roles of Human Resources Management

Planning

The planning function of human resource department pertains to the steps taken in determining in advance personnel requirements, personnel programmes, policies etc. After determining how many and what type of people are required, a personnel manager has to devise ways and means to motivate them.

Organisation

Under organisation, the human resource manager has to organise the operative roles by designing structure of relationship among jobs, personnel and physical factors in such a way so as to have maximum contribution towards organisational objectives. In this way a personnel manager performs following roles

preparation of task force

allocation of work to individuals

integration of the efforts of the task force

coordination of work of individual with that of the department

Directing

Directing is concerned with initiation of organised action and stimulating the people to work. The personnel manager directs the activities of people of the organisation to get its function performed properly. A personnel manager guides and motivates the staff of the organisation to follow the path laid down in advance.

Controlling

It provides basic data for establishing standards, makes job analysis and performance appraisal, etc. All these techniques assist in effective control of the qualities, time and efforts of workers.

Operative Roles

The following are the Operative Roles of Human Resource Management

Procurement of Personnel

It is concerned with the obtaining of the proper kind and number of personnel necessary to accomplish organisation goals. It deals specifically with such subjects as the determination of manpower requirements, their recruitment, selecting, placement and orientation, etc.

Development of Personnel

Development has to do with the increase through training, skill that is necessary for proper job performance. In this process various techniques of training are used to develop the employees. Framing a sound promotion policy, determination of the basis of promotion and making performance appraisal are the elements of personnel development function.

Compensation to Personnel

Compensation means determination of adequate and equitable remuneration of personnel for their contribution to organisation objectives. To determine the monetary compensation for various jobs is one of the most difficult and important function of the personnel management. A number of decisions are taken into the function, viz., job-evaluation, remuneration, policy, inventive and premium plans, bonus policy and co-partnership, etc. It also assists the organisation for adopting the suitable wages and salaries, policy and payment of wages and salaries in right time.

Maintaining Good Industrial Relation

Human Resource Management covers a wide field. It is intended to reduce strifies, promote industrial peace, provide fair deal to workers and establish industrial democracy. It the personnel manager is unable to make harmonious relations between management and labour industrial unrest will take place and millions of man-days will be lost. If labour management relations are not good the moral and physical condition of the employee will suffer, and it will be a loss to an organisation vis-a-visa nation. Hence, the personnel manager must create harmonious relations with the help of sufficient communication system and co-partnership.

Record Keeping

In record-keeping the personnel manager collects and maintains information concerned with the staff of the organisation. It is essential for every organisation because it assists the management in decision making such as in promotions.

Personnel Planning and Evaluation

Under this system different type of activities are evaluated such as evaluation of performance, personnel policy of an organisation and its practices, personnel audit, morale, survey and performance appraisal, etc.

3.3 Systematically appraise the processes that an organisation uses to plan its physical requirements.

Organisational plan is about efficiently managing the physical resources for which managers are responsible. It covers planning to use the resources managers and their team need, obtaining those resources, ensuring the availability of suitable supplies, and monitoring the use of resources.

In every organisation manager has following responsibilities

allocating work to others

achieving specific results by using resources effectively

carrying out policy in their defined area of authority

controlling limited financial budgets, and

contributing to broader activities such as change programmes and recruitment

There are four elements

Plan the use of physical resources

Obtain physical resources

Ensure availability of supplies

Monitor the use of physical resources.

In order to plan the use of physical resources, managers need to identify the resources their team needs. Managers need to look at past resource usage and at trends and developments which may affect their choice of resources. Finally, their plans should be in line with organisational objectives, policies and procedures and with legal requirements.

In order to obtain physical resources, managers need to estimate costs and potential benefits and make requests to the relevant people. Managers need to ensure that the physical resources managers request are sufficient to support all the activities managers are responsible for, and make amendments to their plans should the necessary resources not be forthcoming.

In order to ensure the availability of supplies, managers need to identify what is required and ensure that suppliers provide equipment and materials of the right quality. Managers have to negotiate with suppliers and reach agreements which provide good value and meet organisational and legal requirements. Managers also need to ensure that supplies meet agreed standards. Managers must keep accurate records of supplies and take appropriate action in the event of problems with supplies.

In order to monitor the use of physical resources, managers need to encourage members of their team to take responsibility for how they use resources. Managers must make sure resources are used efficiently with minimum adverse impact on the environment. Managers need to monitor the

quality of resources continuously and make sure standards of service and product delivery are maintained. Where problems with the use of resources occur, managers need to take prompt and effective corrective action. Finally, managers must keep accurate and complete records.

Task : 4

4.1 Investigate how marketing activities contribute to the achievement of organisational objectives

Human Resource Management plays a major role in the organization to perform maximum capability in a highly fulfilling manner. Human Resource Management is the main approach for the organizations. The people working individually and collectively together contribute for the achievement of the objectives in the business. It is also termed as personnel management as the process is involved in managing people. Human Resource Management employee's people, develop their resources, utilize, maintain, and compensate their services in relation to the organizational requirements. Before an organization is setup it needs to examine all the aspects of business equation to reach organizational objectives.

The features of Human Resource Management include:

Organizational management

Personal administration

Manpower management

Industrial management / Employee Relations.

Innovation and Product development

The positive view of the employees virtually contributes to the enterprise productively for the achievement of organizational goals. Human Resource Management is more innovative at work place than the traditional approach. It's unique to express the goals with specificity and provide the resources needed to accomplish the task. Activities take priority in setting the communication of objectives and targets wherein the guidelines and boundaries play a important role. The constraint of an organization requires tradeoffs and evaluation options to determine the capabilities to achieve the specified outcomes.

Product distribute logistics and Product pricing

The Human Resource Management should function in every activity and should play a key role in deciding the product distribute logistics and product pricing to fulfil the basic needs ensuring they are on high performance. Dealing with performance issues, independent contractors, hiring employees, are also a part of the above. The activities also include approach to the employee benefits and compensation, employee records and personnel policies.

Sales promotion and Customer services

The different modules in Human Resource Management refer to the system and process at an intersection between Human Resource Management and customers.HRM also helps to increase the sales promotions and The betterment of customer services. The functions of HRM are generally administrative and common in all organizations. Organizations having formalized selection, evaluation, and payroll process build the company. Efficient and effective management of human capital is a successful way to imperative and complex process.

4.2 Critically evaluate the role of marketing operations within an organisation.

Market research

Market research provides relevant data to help solve marketing challenges that a business will most likely face--an integral part of the business planning process. In fact, strategies such as market segmentation (identifying specific groups within a market) and product differentiation (creating an identity for a product or service that separates it from those of the competitors) are impossible to develop without market research.

Market research involves two types of data:

Primary information. This is research you compile yourself or hire someone to gather for you.

Secondary information. This type of research is already compiled and organized for you. Examples of secondary information include reports and studies by government agencies, trade associations or other businesses within your industry.

Market segmentation

Marketing segmentation refer to the aggregating of prospective buyers into groups (segments) that have common needs and will respond similarly to a marketing action. Market segmentation enables companies to target different categories of consumers who perceive the full value of certain products and services differently from one another. Generally three criteria can be used to identify different market segments:

Homogeneity (common needs within segment)

Distinction (unique from other groups)

Reaction (similar response to market)

Market targeting

The process of evaluating segments and focusing marketing efforts on a country, region, or group of people that has significant potential to respond Focus on the segments that can be reached most effectively, efficiently, and profitably.

Market Positioning

Positioning is required to differentiate the product or brand in the minds of the target market.

Market planning

Marketing is the process of developing and implementing a plan to identify, anticipate and satisfy consumer demand, in such a way as to make a profit. The two main elements of this plan are market research to identify and anticipate customer requirements and the planning of an appropriate marketing mix to meet these requirements. Market research involves gathering and recording information about consumers, market, product, and the competition in an organised way. The information is then analysed and used to inform marketing decisions.

4.3 Systematically appraise the processes that an organisation uses to develop its markets.

Market penetration

It is a growth strategy where an organization focuses on selling existing products to existing markets. Growing an organization by penetrating its market more thoroughly is typically the first growth strategy most organizations pursue. Market penetration is the least risky growth strategy as the organization's experience with its existing markets increases the odds of success. However, an organization should only pursue a market penetration growth strategy if at least one of the following conditions exists:

Unsaturated market

Increasing industry growth rate, but decreasing competitive market share

Current customers are likely to purchase higher quantities of existing products or services

Economies of scale provide a competitive edge

If at least one of these conditions exists in your market, growth opportunities via market penetration can be employed. Common market penetration strategies include offering sales/coupons for products or services, increasing an organization's sales force, increasing distribution and promotion of products or services and increasing marketing and advertising expenditures. However, implementing any one of these new marketing strategies may require considerable investments of both time and money, and may not be translated into profits for a reasonable time period. As a result, your organization should give consideration to the following four factors prior to market penetration strategy implementation:

Market size and growth potential

Monetary investments such as price offers, marketing communications, etc.

Product positioning monitoring--both positive and negative

Organization-wide benefits including public relations, promotions and competitive responses

Market penetration is a valuable growth strategy to many organizations because retaining existing customers is cheaper than attracting new ones. However, this strategy is not appropriate for all organizations.

Product development

product development refers to brand new product or service ideas or concepts. In other words, consumers have no prior knowledge or experience with the new product or service. Only about 10 percent of product development is considered revolutionary, but this type of product development is the most risky. As a result, many organizations rely heavily upon disciplined market research as a means of reducing risk.

Market development

In market development strategy an organization seeks to sell its existing products into new markets. In other words, you grow by leveraging your product or service knowledge to reach new customers. However, there are a few considerations to make before employing this strategy.

How attractive is the new market?

Market research is needed to confirm market attractiveness.

Does your organization have the necessary resources, and is the organization willing to commit them?

Some market development strategies may require a substantial investment of money for infrastructure building, advertising and promotions, etc.

Does your organization need to adapt to the new market? Are there any obstacles that must be overcome to enter this market? Do you have the time and resources to overcome them? How can your organization maintain competitive advantage?

You will need to consider existing competitors, pricing issues, distribution, etc. before moving forward.

Once these questions have been satisfactorily explored and answered, your organization is ready to pursue a market development strategy. There are many possible ways of approaching this strategy utilizing internal or external resources. Below are the most often utilized approaches for market development.

New geographical markets

New product/service utilization to create new segments

New distribution channels

Different pricing policies to attract customers or create new segments

Diversification

Product diversification involves modifying a product or service to expand into new markets by leveraging your organization's existing product/service experience and reputation. This strategy is especially attractive for organizations operating in a saturated market. The product diversification strategy calls for an organization to go outside its existing business and develop a new product/service for a new market. Diversification could be based on appealing to new customer demographics or price points.

Task : 5

5.1 Investigate how information systems management contributes to the achievement of organisational objectives

Sales and marketing system

Processes associated with collecting, analyzing, and reporting marketing research information. The system used may be as simple as a manually tabulated consumer survey or as complex as a computer system for tracking the distribution and redemption of cents-off coupons in terms of where the consumer got the coupon, where he redeemed it, what he purchased with it and in what size or quantity he purchased it, and how the sales volume for each product was affected in each area or store where coupons were available.

Manufacturing and production system

It is a planning that either creates goods or provides services or both. Manufacturing and production systems produce output that ranges from highly standardized to highly customized. Depending on the type of system used, an appropriate cost accounting system can be designed. For example, a job order costing system is used by custom manufacturers such as shipbuilders, aircraft manufacturers, and printers, whereas a process costing system is used by processing industries such as refineries and chemical manufacturers.

Finance and accounting system

It is an information system, comprised of one or more applications, that is used for any of the following: collecting, processing, maintaining, transmitting, and reporting data about financial events; supporting financial planning or budgeting activities; accumulating and reporting cost information; or supporting the preparation of financial statements.

Transaction Processing Systems

A Transaction Processing System (TPS) is a type of information system that collects, stores, modifies and retrieves the data transactions of an enterprise.

A transaction is any event that passes the ACID test in which data is generated or modified before storage in an information system.

Features of Transaction Processing Systems

The success of commercial enterprises depends on the reliable processing of transactions to ensure that customer orders are met on time, and that partners and suppliers are paid and can make payment. The field of transaction processing, therefore, has become a vital part of effective business management, led by such organisations as the Association for Work Process Improvement and the Transaction Processing Performance Council.

Transaction processing systems offer enterprises the means to rapidly process transactions to ensure the smooth flow of data and the progression of processes throughout the enterprise. Typically, a TPS will exhibit the following characteristics:

Rapid Processing

Reliability

Standardisation

Controlled Access

Transactions Processing Qualifiers

Atomicity

Consistency

Isolation

Durability

Batch Processing

Real Time Processing

Decision support systems

A decision support system (DSS) is a computer-based application that collects, organizes and analyzes business data to facilitate quality business decision-making for management, operations and planning. A well-designed DSS aids decision makers in compiling a variety of data from many sources: raw data, documents, personal knowledge from employees, management, executives and business models. DSS analysis helps companies to identify and solve problems, and make decisions.

Typical information gathered by a DSS may include:

Projected revenue and sales figures, some based on new product sales projections

Comparative sales figures between selected time periods

Inventory data organized into relational databases for timely analysis

5.2 Critically evaluate the role of information systems management within an organisation.

Management information system, or MIS, is a managerial decision-making tool. A company uses it in all of its business operations and processes. As the management is in complete know of everything transpiring in the company, it leverages on this advantageous position. Using it, a company is able to record and document all facts pertaining to its procedures and methodologies.

Significance

Using an MIS, an organization is able to establish its hierarchical structure and work-flow charts. Every employee in the organization knows the employees he has authority over and to whom he is responsible for work. The work then progresses without glitches. The company’s operating and procedures are listed by an MIS.

Types

Organizations use different types of MIS for different needs and scenarios. At a given point of time an organization might be using several types in isolation and in combination. Organizations essentially use the TPS. TPS is the acronym for transaction processing system. The business tabulates all its recurring transactions like inventory and customer orders using TPS. The operations information system, or OIS, is used by managers to plan out their production and scheduling activities.

Benefits

There are numerous pluses in using an MIS. The organization records and tabulates all its key strategic functions. As and when deviations from the planned course happen, the organization is able to take corrective action at once. Communication channels are enforced. As the authority-responsibility diagrams are well established, the superiors delegate work to their subordinates and the subordinates turn to them for guidance and suggestions. The MIS mechanism enables the organization to weigh the pros and cons of several methods of accomplishing a task and choosing the most practical one.

History

Management information systems and computing systems were both built in the 1960s. Companies all over the world use them both for efficient and effective business operations.

Considerations

With an MIS, company leaders must be mindful of two things. First, as very often it is consultants who develop the MIS for the company, they must be knowledgeable of all of the company's prevalent policies and practices. Secondly, a company must every year allocate funds for maintaining and sustaining the MIS.

5.3 Systematically appraise the processes that an organisation uses to plan its information systems requirements.

The process has following stages

Understanding the Organisation - therefore the activities must be carried out by experienced people

Identifying what it should be doing with information

Matching what it is doing with what is should be (appraisal)

Producing Information Policies

Developing an Information Strategy

Appraisal

Appraisal is the phase of the process in which information about how the organisation functions and how it uses information is collected and compared with how it should be done.

Information an organisation uses and hold (on paper, machine readable and in people’s heads)

The resources for making information accessible to those who need it

The ways in which people use information to further the organisation’s objectives

The people who are using the information.

The benefits of doing this in the short term are:-

Attention to the immediate threats and risk avoidance.

Cost savings from more rational management.

Quick gains from making information more accessible or usable for those who need it.

and in the longer term:-

Enriched understanding of the importance of information in the organisation.

Interaction and negotiation among guardians of information resources and the stakeholders in them.

Development of a strategy for managing knowledge and information.

Better use of information in support of business processes and in initiating and responding to change.

Integrated management of the organisation’s complete range of information (wherever it is kept and whoever manages it), supported by appropriate systems and technology.

Reliable assessment of the cost-effectiveness of information and its use, and of the proportion of the organisation’s total valuable assets which is contributed by the use and knowledge and information.