Chapter 5: Staffing

1Chapter 8: Introduction to the Different Areas of Management

Learning ObjectivesAt the end of the chapter, you are all expected to understand the following:

Marketing Management Production Management Materials and Procurement Management Financial Management Human Resource Management Office Management

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Marketing Management3 the process of planning, organizing, staffing, directing and controlling marketing activities. the term market connotes many things. Its scope includes wide range of activities: the farmers market trading place for fruits and vegetables. the stock market sales of corporation stocks in the stock exchange. therefore, a market must have a buyer and seller, a commodity or service, an exchange and an agreed selling price.

Nature and Scope of Marketing4 marketing is the performance of business activities that direct the flow of goods and services from the producers or users for the latters ultimate consumption. it refers to all activities involving the processing, sale and physical distribution of goods from the time they are produced up to the time they are delivered to their ultimate consumers. it also includes marketing research, transportation, product packaging, and the use of advertising and credits as the means of satisfying the needs and influencing consumers patronage. use of 7 Ps Product, Place, Promotion, Price, People, Process, Physical Environment

Production and Operations Management5 is the process of planning, organizing, staffing, directing and controlling the production activities. Production is the creation of anything of value such as goods, services, or ideas that people want and are wiling to pay for. Production is thus the operation stage of any business. with reference to manufacture, production is the processing of materials into a new expected form. Production includes manufacturing, which is the process of making finished goods.

Production and Operations Management6Industrial Research the most important function of research is product improvement a product can never be perfect , unless it is improved research always involves future development

Manufacturing Process refers to the method used to change the form of materials. a finished product follows after the raw materials have been produced. a finished product in one industry maybe considered a raw material in another industry.

Classes or Types Extractive Process means using methods such as mining, or quarrying in digging out these raw materials.Analytical Process raw material is broken down into its components. Ex. Refining petroleumSynthetic Process combines several different raw materials to form new productsFabricating Process shaping of materials into new forms as well as assembling of many parts into a integrated product.

Procurement Management7 the process of planning, organizing, staffing, directing and controlling the procurement activities. it is important to consider the procedure in the proper delivery of materials and supplies at the right place, at the right time and from the right place.

Purchasing process of buying, identifying the need, selecting supplies, negotiating prices, and following up to insure effective delivery.Procurement encompasses broader areas and covers the responsibilities performed by purchasing, such as inventory control, receiving, incoming inspection and salvage operations. Covers production control, traffic and shipping.

Importance of ProcurementProper utilization of money is extremely important to the survival of every individual and companyPurchased materials and services include the biggest part of expenditure in most companies.The investment in raw materials, parts, and supplies inventory in some companies is essential and the efficient management of such inventory can contribute to profit.

Financial Management8 the process of planning, organizing, staffing, directing and controlling the financial activities. this area is responsible for the liquidity, solvency profitability, and financial control of the business. use of income statement, balance sheet , gross sales, capital budget etc.

Financial Planning objective: is to appropriate the needs and capabilities of the business through projection of availability-funds for a short-term period and long-range period.

Acquisition of Funds

Two basic types of funds:Personal EquityBorrowed Funds

Human Resources Management9 the process of planning, organizing, directing and controlling of personnel activities.

has the main responsibility for personnel activities

work closely together with all other departments

concerned with selecting new employees, their job assignment, and their continuing development

Office Management10 the process of planning, organizing, staffing, directing, and controlling office activities and those performing them in order to achieve determined objectives. it covers managerial efforts over office work anywhere in the company,.

Activities in Office Management filing records and reports handling incoming and outgoing mail

Determination the action to accomplish the work selecting office methods and procedures selecting office location

Providing effective office organization delegating authority knowing individual jobs

Inspiring office personnel motivating office employees giving adequate supervision