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HRM Unit 1 PDF
HRM Unit 1 PDF
"You must treat your employees with respect and dignity because in the most automated factory in the world,
you need the power of human mind. That is what brings in innovation. If you want high quality minds to work
for you, then you must protect the respect and dignity. " ---Mr N.R. Narayana Murthy, Chairman Emeritus,
Infosys Ltd .
I - MEANING OF HRM
Human Resource Management is the process of recruiting, selecting, inducting employees, providing
orientation, imparting training and development, appraising the performance of employees, deciding
compensation and providing benefits, motivating employees, maintaining proper relations with employees and
their trade unions, ensuring employees safety, welfare and healthy measures in compliance with labour laws of
the land.
Therefore, human resource management is meant for proper utilisation of available skilled workforce and also
to make efficient use of existing human resource in the organization.
Men,
Money,
1. People :- core strength of an organization which cannot be replaced by any other resources.
2. Process :- IT enabled process or digitalization of HR activities makes the work easier.
3. Performance :- pillars of performance are people and process which turns into value creation and return
on investment.
cost effectiveness
competitive
coherence
credibility
communication
creativity
competitive advantage
competence
change
commitment.
II - DEFINITIONS OF HRM
Many great scholars had defined human resource management in different ways and with different words, but
the core meaning of the human resource management deals with how to manage people or employees in the
organization.
Edwin Flippo defines- Human Resource Management as “planning, organizing, directing, controlling of
procurement, development, compensation, integration , maintenance and separation of human resources to the
end that individual, organizational and social objectives are achieved.”
According to Decenzo and Robbins, “Human Resource Management is concerned with the people dimension”
in management. Since every organization is made up of people, acquiring their services, developing their skills,
motivating them to higher levels of performance and ensuring that they continue to maintain their commitment
to the organization is essential to achieve organsational objectives. This is true, regardless of the type of
organization – government, business, education, health or social action”.
It helps an organization meet its goals in the future by providing for competent and well-motivated
employees.
It tries to build and maintain cordial relations between people working at various levels in the organization.
It is a multi-disciplinary activity, utilizing knowledge and inputs drawn from psychology, economics, etc.
2. Individuality Oriented: It tries to help employees develop their potential fully. It encourages them to
give out their best to the organization. It motivates employees through a systematic process of
recruitment, selection, training and development coupled with fair wage and policies.
3. Integrating Mechanism: Human Resource Management tries to build and maintain cordial relations
between people working at various levels in the organization. In short, it tries to integrate human
aspects assets in the best possible manner in the service of an organization.
5. Auxiliary Service: Personnel departments exist to assist and advise the line or operating managers to
do their personnel work most effectively. Human Resource manager is a special advisor.
2. Welfare Aspect:It deals with working conditions, and amenities such as canteen, creches, rest and
lunch rooms, housing, transport, medical assistance, education, health and safety, recreation facilities, etc.
1. Societal objectives: Measures put into place that respond to the ethical and social needs or challenges of
the company and its employees. This includes legal issues such as equal opportunity and equal pay for equal
work.
.Legal compliance
Benefits
Union Management relations
3. Functional objectives: Guidelines used to keep the HR functioning properly within the organization as
a whole. This includes making sure that all of HR’s resources are being allocated to its full potential.
Appraisal
Placement
Assessment
4. Personal objectives: Resources used to support the personal goals of each employee. This includes
offering the opportunity for education or career development as well as maintaining employee satisfaction.
Training
Appraisal
Placement
Compensation
Assessment
maintaining a balance between the jobs available and the job seekers according to the qualification and
needs.
Providing suitable and mist productive employment, which might bring them psychological satisfaction.
making maximum utilization of the resource in an effective manner and paying the employee a
reasonable compensation in proportion to the contribution made by him.
eliminating waste or improper use of human resource, through conversation of their normal energy and
health.
by helping people make their own decisions, that are in their interests.
(b) Professional Significance :- By providing healthy working environment, it promotes team work among the
employees. This is done by-
(c) Significance for Individual Enterprise:- It can help the organization in accomplishing its goals by-
1. Change Management: Today, terms such as Learning Organization, Managing Organizational Change,
Change Agents and the like are being increasingly encountered. It is now an accepted fact that any organization
can survive in today‘s socio-economic environment only if it is proactive to environment changes. Advances in
information technology too are focusing organizations to change their very way of thinking.
2. Competence: It is often said, “Give a man a job that he excels at and he would not have to work.” In the
organizational context, it may not be always feasible to allocate tasks to individuals at which each one excels,
but surely we can enhance competence of individuals for specific tasks through well-designed training
programmes. It is equally important to take note of the interests of the individual. It is much easier to train him
in tasks closer to his inherent liking.
3. Commitment: Commitment levels can be assessed in a number of ways. One can make use of informal
interviews and questionnaires, statistics on absenteeism, grievances, and voluntary separations. Transparency in
organizational functioning, employees‘ perception of various HRM policies, channels of communication, and
role models played by superiors strongly influence employee commitment.
5. Motivation: Another aspect of human behavior is the employee‘s willingness to work and the desire to
constantly improve his performance. People want to contribute to meaningful goals, particularly, those they
have in setting. It is necessary to create an environment in which all members can contribute to the limits of
their ability. Subordinates must be encouraged to participate in the process of decision-making, continually
broadening their self-direction and self control as this will improve operating efficiency.
Establishing goals and objectives to be achieved :- through the employees so as to achieve the
organizational mission set by the top-level management.
Developing rules and procedures :- which has to be followed by the employees in order to avoid any
sort of discrimination among the employees in any of their functions, to enable fair and transparent
treatment among employees, to avoid conflict starting from recruitment to the separation of employees,
inculcate discipline among the employees, to drive performance of employees and ultimately to avoid
conflict and contravenes with statutes and employment laws of the land, ultimately for smooth running
of the organization.
Determining plans and forecasting techniques as a part of Human resource planning:- to avoid any
shortfall of workforce so as to avoid impact on the output of the organisation, to draw the estimation of
workforce exactly needed for the organisation and to plan for attracting talented candidates.
HR outsourcing:-as that of make or buy decision in operations management, human resource manager
should be able to make decisions with regard to HR activities which are to be executed by the
management itself or to be outsourced when there is advantage of expertise to bring in and cost-saving
for organization. The following are the most outsourced HR activities; legal advice and support,
employee payroll, pensions, training and development, recruitment, employee assistance, compensation
and benefits, outplacement is, human resource information systems, employee relations, policy-making,
strategic partnerships, appraisal of employees and resource planning.
2. ORGANIZING
Giving each member a specific tasks :-to finish overall objectives of the job given to an employee
is the duty of the Human Resource Manager, besides it also to the duty of Human resource manager
to define task clearly before entrusting job to an employee. HR managers should keep in mind that
task entrusted to employees should be matched with their skill set and abilities and It is also lookout
of HR managers to give training to employees in the area or subject which is going to be entrusted to
employees, otherwise the task entrusted to employees gets failed and defeated.
Establishing departments and divisions:- according to the nature of jobs and works in order to
improve the efficiency, expertise and speedup the work. Establishment of separate divisions and
departments would give easy and effective control over employees by the management which
would give better results and improve overall performance of the organisation.
Delegating authority to the members:- for a good cause and to make employees more responsible
towards their job . Delegating authority to employees makes them to be more responsible towards
organisation as there is a principle called authority equals to responsibility,vice versa when you load
an employee with responsibilities, he should be given authority so as to fulfill the responsibilities
casted upon employee. Authority without responsibility and responsibility without authority defeats its
purpose. Therefore when employees feels responsible and accepts responsibilities, it is a good sign as it
makes employees to be engaged in the job.
Establishing channels of authority and communication :-is the primary responsibility of any human
resource manager which would enable managers to effectively communicate desired goals and
objectives of the organisation. Having effective communication will avoid conflicts, make staff to
understand what exactly they are expected to and also enable the manager to get the things done in
time.
3. STAFFING
Staffing is one of the key functions of human resource management as staffing is the process of
employing right people, providing suitable training and placing them in the right job by paying them
accordingly and satisfactorily.
Determining the type of people to be hired :- should be emphasised as they are the fundamental
resource and investment for any organisation. Every organisation wants right people with them but they
come at a price. Employee compensation is a key factor in primary motivating factor to attract talented
and retain them in the organisation for a long period of time.
Compensating the employees :- is one of the core functions of the human resource management.
Among all the motivating factors money is the very important primary motivating factor for any
employee. Providing right compensation for the work done by the employee will not only make
employee feel happy, it will also make the organisation in complainance with employment laws of the
land, if not it is unjustified and amounts to exploitation of employees which is against law.
Setting performance standards, measuring and evaluating the employees: A performance
appraisal is meant to help employees realise their strengths and shortcomings and receive a
compensation accordingly. The very purpose of appraising the performance of employees is to evaluate
and compensate accordingly. Unless organisation sets performance standards to its employees, it cannot
compare and measure employees actual performance with the standard performance.
Counselling the employees :-as a Human Resource manager, for understanding and helping people who
have technical, personal and emotional or adjustment problems with an objective to reduce them, so that
performance of employees are maintained at expected level or even improved upon.
Recruiting prospective employees and selecting the best ones :- is one of the primary functions of
GIMT – Dr. Vinita Dawer 15
human resource management. Recruiting is the process of inviting the people who were willing to join
HR Metrics: Application of formulas for measuring and calculating core HR issues so as to draw exact
HR results and current scenario of organisation. The very purpose of HR metrics is to indicate current
position and performance of the organisation. Core HR issues where HR metrics can be applied are
Time to fill an employee, Cost per hire of an employee, Employee absenteeism rate, Employee training
others, Turnover cost, Turnover rate, annual Turnover of an employee, Workers compensation cost for
an employee, Revenue per employee, Return on Investment (ROI) and Yield ratio.
4. DIRECTING
Directing is a knowledge, discipline and formal way of communicating to others that what you are expecting
from them to do for you or to an organization. Unless a HR manager has capability of directing, he / she can't be
said as full-fledged HR manager. when a HR manager has right directing capabilities, it is gives clarity for
employees what they are expected to perform, removes confusion in employees and gives clarity of what results
are expected by the management from employees.
Getting work done through subordinates so as to meet the organisation's goals and objectives. Indeed
getting work done to others is an art which every Human resource manager should possess, for which
employee motivation by the Human Resource Management influences and matters a lot.
Ensuring effective two-way communication for the exchange of information with the
subordinates in order to effectively communicate the goals and objectives of the organisation as it plays
GIMT – Dr. Vinita Dawer 17
key role in understanding what the Human Resource manager or organisation is expecting from
employees to perform. Miscommunication between employees block the progress and even would lead
to conflicts which eventually affects the overall performance of the organisation.
Motivating subordinates to strive for better performance by way of providing employee recognition,
rewards, intrinsic benefits, paid vacations, increments in salary, gifts, any social security benefits to
employees and their family members is one of the functions of Human Resource Management.
Maintaining the group morale by way of fair treatment among employees, being ethical and generous
towards employees, management being loyal to its employees and giving priority to employee concerns.
5.CONTROLLING
HR managers should have the knowledge of controlling all HR related matters, as they should be able to
think and decide what should be done and what should not be done and which should be done and which
should not be done while dealing with employees.
Measurement of actual performance with the established performance standards of employees for
finding out gaps in employee performance.
Comparison of actual performance with the standard one to find the deviation for initiation of corrective
actions, if there are any deviations.
Corrective actions include giving proper and suitable training to such employees or withholding of
increments in payments until performance gaps are none.
Demotion of employee, suspension and discharge from job is initiated when serious deviations are
identified
1. PROCUREMENT
Job analysis is a systematic process of gathering all the data & information pertaining to the job for
preparing of job specification which determine the skills, qualifications & traits for job and preparation
of job description which describes the duties and responsibilities so as to recruitment and selection of
employee, give satisfaction on the job, and feel motivation while doing the job.
Job design is the process of deciding on the content of a job in terms of its duties and responsibilities;
on the methods to be used in carrying out the job, in terms of techniques, systems and procedures and on
the relationships that should exist between the job holder and the superiors, subordinates and colleagues.
Job enlargement, job enrichment, job rotation, and job simplification are the various techniques used in
a job design exercise.
HRP may be defined as strategy for acquisition, utilization, improvement and preservation of the human
resources of an enterprise. The objective is to place right personnel for the right work and optimum
utilization of the existing human resources. HRP exists as a part of the planning process of business.
2. DEVELOPMENT
Career planning and Career development; process of establishing personal career objectives by
employees and acting in a manner intended to bring them about. HR managers should help their
employees in knowing their strengths for placing them in suitable job, guide employees what skills and
knowledge should be acquired for attaining higher positions, planning for suitable training for
polishing existing skill set and providing good work-life-balance to make balance between career and
personal life.
Executive development ; developing the skills and competencies of those that (will) have executive
positions in organisations.
Employee training and development . It ensures continuous skill development of employees working
in organisation and habituates process of learning for developing knowledge to work.
Imparting Training and Development to employees through various methods is the foundation for
obtaining quality output from employees. Employee training methods or categorised into on-the-job
training methods and off the job training methods.
Overall development of organisation: Though human resource department is one of the departments in
organization, but it is linked to overall development of organisation as employees are center for final
output and organisation's performance.
3. COMPENSATION
This is done by:
Job evaluation :- it is process of analyzing and assessing various jobs systematically to ascertain their
relative worth in an organization.
Salary nomenclature is used in the context of employees. Generally salary of employees is paid monthly
and it consist of various components like basic pay, dearness allowance and house rent allowance especially in
the case of government employees. Whereas private employees' salary normally doesn't consist of said
components as it is paid under single head that is salary and benefits of employees doesn't come under salary
head, therefore employee benefits could be monetory or nonmonetary cannot be counted with salaries of
employees, they are specifically provided for providing social security and motivating employees. Especially
government employee salary format will be
Employee rewards, perks and benefits payments according to the employment and labour laws.
4. MAINTENANCE / MOTIVATION
Employee well-being; Providing good working conditions at workplace is the fundamental duty of
Human Resource Management department.
Social security for employees through :-
a. Payment of Gratuity Act, 1972
b. Workmen's Compensation Act, 1923
c. Employee State Insurance Act, [ESI] 1948
d. Payment of Bonus Act, 1965
e. The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952
f. Maternity Benefit Act,1961 (Maternity Benefit (Amendment) Act, 2017)
g. Maternity leave laws
Worker's participation in management
Providing Good work-life balance
Motivating employees
Job rotation
Maintaining HR records in accordance with employment laws and oranisational needs is the
basic function of Human Resource Management.
Human Resource information system
5. INTEGRATION
Industrial relations :- Maintaining proper industrial relationships is the core activity of
Human Resource Management so as to avoid industrial disputes.
Employee Discipline
GIMT – Dr. Vinita Dawer 23
Dispute settlement by
a. Collective bargaining
b. Being a spokesman of employees and organization
c. Resolving conflicts among employees
d. Prevention and dealing with sexual harassment at work place
Correlating and planning to make the best use of the employee talents and skills
Administer the work of support staff and specialists of their team
Building a relationship between employee and organization management
Guide in helping their team in recruiting and hiring employee workforce
Moderate and act on employee benefit programs
Avoiding and solving different types of conflicts arising in an organization
Consulting with department managers over important organizational issues
Decision-making skills
Teamwork and collaboration
Interpersonal skills
Performance management
Leadership skills
Onboarding
Organizational skills
Employee relations.
Speaking skills
Human Resources Information Software (HRIS)
Worker’s compensation
Scheduling and managing
Customer service
Project management
1. The Conscience Role: Under this role, the HR Manager reminds the management of their moral and ethical
obligations towards employees.
2. The Counsellor Role: Under this role he encourages the employees to meet him frequently for consultation
and discussion of their mental, physical and career problems and at times even their family problems.
3. The Mediator Role: Under this role, he tries to settle disputes between labour and management as also those
between an individual and a group. He is not only a peace maker but also serves as a liaison and communicating
link.
4. The Spokesman Role: under this role, he works as a spokesman for or as a representative of his
organization. This he is able to do as he deals intimately with many key organizational activities and functions
and has a better overall picture of his company‘s operations.
6. The Change- Agent Role: He serves as a change agent in respect of introduction and implementation of
major institutional changes.
MEANING OF HRP
The Human Resource Planning is the process of finding the right number of people for the right kind of a job,
at a right time and the right place, by forecasting the organization’s demand for and supply of human resources
in the near future.
In other words, Human Resource Planning is responsible for arranging the right people for the right job from all
the available sources. And not only this, it also anticipates the vacancy arising due to the promotion, transfer,
retirement, termination, of an employee and thus, plans for the manpower accordingly. This planning is
generally done to enable an organization to move from the current manpower position to the desired manpower
position. The human resource planning begins with the enterprise’s estimation for the manpower requirement
and then sources are found from where this need can be fulfilled. The Human Resource Planning should not
focus only on filling the vacant positions, but should emphasize on hiring the right person for the right job. It
also focuses on developing the skills of an existing employee through an interactive training program, with the
intention to make them well equipped with the skills required in the future, for the attainment of the
organization’s objectives.
According to Leon C. Megginson human resource planning is “an integrated approach to performing the
planning aspects of the personnel function in order to have a sufficient supply of adequately developed and
motivated people to perform the duties and tasks required to meet organisational objectives and satisfy the
individual needs and goals of organisational members.”
Thus Human resource planning may be viewed as foreseeing the human resource requirements of an
organisation and the future supply of human resources and-
making necessary adjustments between these two and organisational plans; and
foreseeing the possibility of developing the supply of human resources in order to match it with
requirements by introducing necessary changes in the functions of human resource management.
In this definition, human resource means skill, knowledge, values, ability, commitment, motivation, etc.,
in addition to the number/of employees.
Internal Factors:
Company policies and strategies – Company policies and strategies relating to expansion,
diversification, alliances, etc. determines the human resource demand in terms of quality and quantity.
Human resource policies – Human resources policies of the company regarding quality of human
resource, compensation level, quality of work-life, etc., influences human resource plan.
Job analysis – Fundamentally, human resource plan is based on job analysis. Job description and job
specification determines the kind of employees required.
Time horizons – Companies with stable competitive environment can plan for the long run whereas the
firms with unstable competitive environment can plan for only short- term range.
Type and quality of information – Any planning process needs qualitative and accurate information.
This is more so with human resource plan; strategic, organisational and specific information.
Company’s production operations policy – Company’s policy regarding how much to produce and how
much to buy from outside to prepare a final product influence the number and kind of people required.
Trade unions – Influence of trade unions regarding number of working hours per week, recruitment
sources, etc., affect the HRP.
The human resources required at different positions according to their job profile are to be estimated.
The available internal and external sources to fulfill those requirements are also measured. There
should be proper matching of job description and job specification of one particular work, and the pro-
file of the person should be suitable to it
4. Estimating Manpower Gaps:
Comparison of human resource demand and human resource supply will provide with the surplus or
deficit of human resource. Deficit represents the number of people to be employed, whereas surplus
represents termination. Extensive use of proper training and development programme can be done to
upgrade the skills of employees.
5. Formulating the Human Resource Action Plan:
GIMT – Dr. Vinita Dawer 33
The human resource plan depends on whether there is deficit or surplus in the organization. Accord-
ingly, the plan may be finalized either for new recruitment, training, interdepartmental transfer in case
of deficit of termination, or voluntary retirement schemes and redeployment in case of surplus.
6. Monitoring, Control and Feedback:
It mainly involves implementation of the human resource action plan. Human resources are allocated
according to the requirements, and inventories are updated over a period. The plan is monitored strictly
to identify the deficiencies and remove it. Comparison between the human resource plan and its actual
implementation is done to ensure the appropriate action and the availability of the required number of
employees for various jobs.
Before we proceed to explain the concept of job analysis, let us first understand the meaning of the term ‘job’
itself
Job
In simple words, a job may be understood as a division of total work into packages/positions. According to Dale
Yoder ‘, “A job is a collection or aggregation of tasks, duties and responsibilities which as a whole, is regarded
as a regular assignment to individual employees and which is different from other assignments”. Thus, a job
may be defined as a group of positions involving some duties, responsibilities, knowledge and skills.
He must possess relevant skills to put the knowledge into practice quickly and effectively. He should have the
ability to understand how the tools, equipment, materials, resources, machines need to be deployed in order to
produce results. Only after a careful examination of the requirements of job, the job incumbent’s qualifications
are generally determined.
In other words, job analysis refers to the anatomy of the job. It is a complete study of job, embodying every
known and determinable factor, including the duties and responsibilities involved in its performance, the
conditions under which the performance is carried on, the nature of the task, the qualities required in the
According to Edwin B. Flippo – “Job analysis is the process of studying and collecting information relating to
the operations and responsibilities of a specific job. The immediate products of this analysis are job descriptions
and job specifications.”
According to David A. De Cenzo and Stephen P. Robbins “job analysis is a systematic exploration of the
activities within a job. It is a basic technical procedure, one that is used to define the duties, responsibilities and
accountabilities of a job.”
Therefore, it can be said safely that “job analysis can be described as a process of collecting information about a
job.”
Work Simplification:
Job analysis provides the information related to job and this data can be used to make process or job
simple. Work simplification means dividing the job into small parts i.e. different operations in a product
line or process which can improve the production or job performance.
Setting Up of Standards:
Standard means minimum acceptable qualities or results or performance or rewards regarding a
particular job. Job analysis provides the information about the job and standard of each can be
established using this information.
Support to Personnel Activities:
Job analysis provides support to various personnel activities like recruitment, selection, training and
development, wage administration, performance appraisal, etc.
PURPOSE OF JOB ANALYSIS
Job Content
Job Context
Job Requirements
1. Job Content: It contains information about various job activities included in a specific job. It is
a detailed account of actions which an employee needs to perform during his tenure. The
following information needs to be collected by a job analyst:
Duties of an employee
The content depends upon the type of job in a particular division or department. For example, job
content of a factory-line worker would be entirely different from that of a marketing executive or HR
personnel.
2. Job Context: Job context refers to the situation or condition under which an employee performs a
particular job. The information collection will include:
Working Conditions
Risks involved
Whom to report
Who all will report to him or her
Hazards
Physical and mental demands
Judgment
Well like job content, data collected under this category are also subject to change according to the type
of job in a specific division or department.
3. Job Requirements: These include basic but specific requirements which make a candidate eligible for a
particular job. The collected data includes:
Knowledge or basic information required to perform a job successfully
Both job description and job specification are essential parts of job analysis information. Writing them clearly
and accurately helps organization and workers cope with many challenges while onboard.
Job Description
Job description includes basic job-related data that is useful to advertise a specific job and attract a pool of
talent. It includes information such as job title, job location, reporting to and of employees, job summary, nature
and objectives of a job, tasks and duties to be performed, working conditions, machines, tools and equipments
to be used by a prospective worker and hazards involved in it.
Job Specification
Also known as employee specifications, a job specification is a written statement of educational qualifications,
specific qualities, level of experience, physical, emotional, technical and communication skills required to
perform a job, responsibilities involved in a job and other unusual sensory demands. It also includes general
health, mental health, intelligence, aptitude, memory, judgment, leadership skills, emotional ability,
adaptability, flexibility, values and ethics, manners and creativity, etc.
Described on the basis of job description, job specification helps candidates analyze whether are eligible
to apply for a particular job vacancy or not.
It helps recruiting team of an organization understand what level of qualifications, qualities and set of
characteristics should be present in a candidate to make him or her eligible for the job opening.
Job Specification gives detailed information about any job including job responsibilities, desired
technical and physical skills, conversational ability and much more.
It helps in selecting the most appropriate candidate for a particular job.
Job description and job specification are two integral parts of job analysis. They define a job fully and guide
both employer and employee on how to go about the whole process of recruitment and selection. Both data
sets are extremely relevant for creating a right fit between job and talent, evaluate performance and analyze
training needs and measuring the worth of a particular job.
1. Observation Method: A job analyst observes an employee and records all his performed and non-
performed task, fulfilled and un-fulfilled responsibilities and duties, methods, ways and skills used by
him or her to perform various duties and his or her mental or emotional ability to handle challenges and
risks. However, it seems one of the easiest methods to analyze a specific job but truth is that it is the
most difficult one.
This method helps interviewer know what exactly an employee thinks about his or her own job and
responsibilities involved in it. It involves analysis of job by employee himself. In order to generate
honest and true feedback or collect genuine data, questions asked during the interview should be
carefully decided. And to avoid errors, it is always good to interview more than one individual to get a
pool of responses. Then it can be generalized and used for the whole group.
3. Questionnaire Method: Another commonly used job analysis method is getting the questionnaires
filled from employees, their superiors and managers. However, this method also suffers from personal
Identification of Job Analysis Purpose: Well any process is futile until its purpose is not identified and
defined. Therefore, the first step in the process is to determine its need and desired output. Spending