Steps of planning1. Estimating the Manpower Requirements It is process of determining the Elements of communication1.

nts of communication1.Sender: Sender means person who conveys his thoughts or ideas
number and types of staff required by an organisation.2. Recruitment Recruitment is the process of
searching for prospective employees and stimulating them to apply for jobs in the organisation. 3.
Selection Selection is the process of choosing the best person for a particular job.4. Placement and
orientation Placement refers to the posting of the selected employees in the post for which he is
selected.5. Training and Development Training means giving expertise. It is the art of increasing the
knowledge and technical skills of an employee for doing a particular job efficiently. Development is a
much wider concept compared to training. Where training aims increasing one’s skills and abilities to do
a particular job,6. Performance Appraisal Performance appraisal means evaluating an employee’s
current/past performance as against certain pre-determined standards.7. Promotion and career
planning Promotion refers to the shifting of an employee from a lower position to a higher position with
higher status, greater responsibilities, better facilities and better pay.8. Compensation Compensation
refers to all forms of pay or reward given to the employees.
External recruitment1. Direct Recruitment-Sometimes, the organizations paste notice at the gate
of their office or factories stating the vacant job positions2. Casual Callers-Qualified candidates send
their bio-data to the institutions even when applications are not called for.3. Media advertising-The
most common and popular method of external recruitment is advertising about the vacant job
position.4. Employment Exchange-Employment exchanges run by government helps to match personnel
demand and supply by serving as link between job seekers and employers. It is suitable for unskilled and
skilled jobs. 5. Placement Agencies-Placement agencies provide nation-wide service of matching
demand and supply of work force. 6. Management Consultants-Management consultants help the
organizations to recruit technical, professional and managerial personnel . 7. Campus Recruitment-
Sometimes the senior managers of the organizations visit various professional collages, technical
institutions to get fresh graduates or the people with the latest technological know-how.8.
Recommendations by the Existing Employees-Many firm encourage their employees to recommend the
names of their relatives and friends to fill the vacant job position.
to the receiver. The sender represents source of communication. (ii) Message: It is the content of ideas,
feelings, suggestions, order etc., intended to be communicated. It is the subject matter of
communication. (iii) Encoding: It is the process of converting the message into communication symbols
such as words, pictures, gestures etc. (iv) Media: It is the path through which encoded message is
transmitted to receiver. The channel may be in written form, face to face, phone call, Internet etc. (v)
Decoding It is the process of converting encoded message into readable language to understand the
message to the receiver. (vi) Receiver: The person who receives communication of the sender and
understands the message. (vii) Feedback: It includes all those actions of receiver indicating that he has
received and understood message of sender. (viii) Noise: Noise means some obstruction or hindrance to
communication. This hindrance may be caused to sender, message or receiver.
1. Financial Incentives: Financial incentives are those incentives which are offered in terms of cash.
The financial incentives generally used in organisations are listed below: (i) Pay and allowances: For
every employee, salary is the basic monetary incentive. It includes basic pay, dearness allowance and
other allowances. (ii) Productivity linked wage incentives: In this scheme, wages of employees are linked
with their productivity (Piece wage system) (iii) Bonus: It is a kind of yearly payment to employees over
and above normal salary.(iv) Profit Sharing: In this scheme a part of the profit of a company is shared
among the workers in addition to their regular wages
2. Non-Financial Incentives: The incentives which cannot be calculated in terms of money are
called non-financial incentives. 1. Status:. Social and esteem needs of an individual are satisfied by status
given to their job. 2. Organisational Climate: Organisational climate indicates the characteristics which
describe an organization. It refers to the relation between the superiors and subordinates.3. Career
Advancement Opportunity: Every individual wants to grow to the higher level in the organisation. 4. Job
Enrichment Job enrichment is concerned with offering challenging jobs, autonomy to perform job and
provide the opportunity for personal growth and a meaningful work experience.

Steps of selection1. Preliminary Screening or screening through bio-data:Preliminary screening
helps the manager to eliminate unqualified or unfit candidates based on the information furnished in
the application forms. 2. Selection Tests-Selection test have been developed as an objective means of
measuring the qualities, abilities and the skills of the candidates in terms of job specifications. 3.
Employment Interview- The candidates who qualify the test are called for interviews.4. Reference and
background checks: Many employers request names, addresses, and telephone numbers of references
for the purpose of verifying information and, gaining additional information on an applicant.5. Selection
decision-The candidate who pass the test, interview and reference check are included in the selection
list and the managers select the most suitable candidates from the list. 6. Medical examination-After the
selection decision and before the job offer is made, the candidate is required to undergo a medical
fitness test. 7. Job offer- After a candidate has cleared all the hurdles in the selection procedure, he is
formally appointed.8. Contract of employment-After the job offer has been made and the candidate
accepts the offer, it refers to signing of contract of employment between employer and employee.
Marketing mix-It is the correct combination of various elements of marketing.elements- 1.Product
Mix: Product means goods or services or anything of value, which is offered to the market for sale. 2.
Price mix: Price refers to the value that is put for a product. Price of a product depends on costs of
production, ability of the market to pay, competition etc. 3.Place mix Place mix constitutes taking
decisions regarding how the product will be available for the customers for the actual sale. There are
two important decisions relating to this aspect. a. Decision regarding channel of distribution- It decides
whether goods are to be marketed through wholesalers, retailers, own branches or any other way b.
Decision regarding physical movement of goods.4. Promotion mix: It involves all activities concerned
with informing the consumers about a product and persuading them to buy the product. Such activities
include (1) Advertising (2) Personal selling (3) Sales promotion (4) Publicity.

Factors affecting capital structure1. Cash Flow Position Cash flow position of a company is a
very important factor that determines the capital structure of a business. A company uses more debt if it
can generate enough cash inflows to pay interest on debts. 2. Cost of capital Generally debt is a cheaper
source of finance as compared to shares because interest is a deductible expense. Cost of capital is an
important factor that determines the capital structure of a company. 3. Control Further issue of equity
share may dilute the control of existing equity share holders. It may also consider while designing capital
structure. 4. Floatation Cost Floatation cost is the cost incurred by the company to issue different
securities. Floatation cost is an influencing factor that determines the capital structure. 5. Flexibility
Issuing debenture and preference shares introduce flexibility. A good financial structure is flexible.6.
Stock Market Conditions Conditions of the stock market also influence design of the capital structure.
During the boom, investors are ready to take a risk and invest in equity shares.

Sales promotion Sales promotion refers to short term use of incentives or other sales promotional
activities that stimulate the customer to buy the product 1. Sampling – It means offering free sample of
product to potential customers at the time of launch of a new product.2. Rebate – It means offering
product at special prices, to clear off excess inventory. 3. Discount – It is a practice of offering products
at a price less than the list price.4. Refund – It means refunding a part of price paid by customer on
presenting some proof of purchase5. Contests – some firms hold contests for consumers .Consumers
who buy the firm’ s product are given an opportunity to participate in the contest .

Marketing Marketing management is a functional area of management concerned with planning,

organizing, directing and controlling the activities related to the marketing of goods and services to
satisfy the customers’ wants.Functions of Marketing 1. Identify Consumer Needs -Most important
function of marketer is to gather and analyse market information. This will help to identify the needs of
customers. 2. Marketing Planning -Another important activity or area of work of a marketer is to
develop appropriate marketing plans so that the marketing objectives of the organization can be
achieved. 3. Product designing and Development- The next target is to develop products according to
the needs of the consumer. 4. Standardisation and Grading -Standardisation refers to producing goods
of predetermined specifications such as quality, price, packaging etc., which ensures uniformity in
products.5. Packing and Labeling -Packaging and labeling are considered as the pillars of marketing.6.
Branding- Branding is the process of giving a name, sign, symbol or design used to identify the products
of one firm and to differentiate them from those of the competitors.