Demand

Demand
JULY 16, 2010 NO COMMENT

Demand

The Theory of Demand | The Meaning of Demand

Demand in economics means a desire to possess a good supported by willingness and ability to pay for it. like for example if we have a desire to certain commodity, but we do not have the adequate means to pay for it, it will simply be a wish, a desire or a want and not demand.

Demand is effective desire which is backed by willingness and ability to pay for a commodity in order to obtain it.

Characteristics of Demand in economics.

1. Willingness and ability to pay.
2. Demand is always at a price.
3. Demand is always per unit of time.

The Law of Demand

The law of demand states that people will buy more at lower prices and by less at higher price, other thing meaning the same.

When a price of a commodity increase quantity demanded is decreases and as the price decreases quantity demanded increases keeping other things constant.

Functionally Demand is defined as
Qd(x) = F(Px, M, Po, T, ….)
Px = Price of commodity
M = Money Income of the household
Po = Price of other commodities
T = Taste of household

Assumption of the Law

There are three main assumption of the law.
1. No change in the taste of Consumer (T)
2. Purchasing power must remain constant (M)
3. Price of all commodities remain constant (Po)

Exceptions to the Law of Demand

This law may be not valid for few cases like

1. Prestige Goods Some luxuries items are purchases as a mark of destination in Society. If the Price of these goods rises, the demand for them increases instead of falling.

2. Price Expectation If peoples expect rise in the price in future they may be violet this law.

3. Giffen Goods If the price of Giffen goods falls its demand also falls. There is the price effect in case of giffen goods.

The Individual’s Demand For A Commodity

The individuals demand for a commodity is the amount of commodity which the consumer is willing to purchase at any given price over a specified period of time.

Demand Schedule

The Demand Schedule of a individual for a commodity is list or table of the different amounts of the commodity that are purchased in the market at different price per unit time.

Individual Demand Schedule for Trouser

Price per Trouser (P) | 800 | 600 | 500 | 450 | 400
Quantity Demand (Q) | 006 | 010 | 016 | 020 | 030

‘Demand Curve
Demand Curve shows the relation between the price of a commodity and the amount of that commodity that consumer wishes to purchase.

The Market Demand For A Commodity

The Market demand for a Commodity is obtained by adding up the total quantity demanded at various prices by the entire individual over a specified period of time in the Market.

Market Demand Schedule

Price Per (KG) …..Demand of the Buyers
RS. ………………. A | B | C | D | Total
20 ………………… 3 | 4 | 5 | 6 | 18
18 ………………… 4 | 5 | 6 | 7 | 22
16 ………………… 5 | 6 | 7 | 8 | 26
14 ………………… 6 | 7 | 8 | 9 | 30
12 ………………… 7 | 8 | 9 | 10 | 34
10 ……………….. 6 | 7 | 10 | 11 | 38

Market Demand Curve
Market demand Curve is also = very sloped like individual demand curve.
By analyzing the demand curve we note that when price fall the demand for the goods increase therefore the demand curve slopes from left to right
1. Law of diminishing marginal utility.
2. New Buyers.
3. Increase in Real Income.
4. Substitution Set.

1. Law of Diminishing Marginal Utility
The Law of demand is bases on the law of diminishing marginal utility. According to which, when a consumer purchase more units of a commodity, its marginal utility decline. The consumer, therefore will purchase more units of that commodity only if its price falls.

2. New Buyers
When the prices of a commodity falls those peoples also become capable to purchase who were not able before. The Demand increase due to entry of new buyers in the market and so demand curve slopes from left to right.

3. Increase in Real Income
Due to fall in price people purching power increases for that good so due to which demand curve is slopes rightward.

4. Substitution Set
Suppose two substitutes commodity like tea and coffee and if the price of one commodity is decrease then people felt that other is expensive so they bye cheapest one.

If price of coffee decrease than tea seems to be expensive so people go for coffee.

Movement of Shifting Of Demand Curve

There are two ways to show demand curve
1. Movement along the demand curve.
2. Shifting of demand curve.

1. Movement along the Demand Curve
If only change in price of commodity and keeping other factors remain constant (Income etc) than we more along demand curve it is technically called extension and constraction in demand.
Extension ====> Increase in Demand
Constraction ====> Decrease in Demand

2. Shifting of Demand Curve
Demand Curve shift upward or downward due to change in demand, due to change in one or more factors other than price.

If there is increase in demand than curve moves upward.

If there is decrease in demand curve moves downward.

Definition of Economics

Definition of Economics
JULY 16, 2010 NO COMMENT

MICRO ECONOMICS

ECONOMICS

Uses of scare resources in order to get maximum satisfaction is said to be Economics.

OR

An Economics is a mechanism that allocates scare resources among competing uses.

SCARCITY

Scarcity is defined as we looking for more as the resources available now.
Economics is arise when we have following things.
1. What
2. How
3. Whom

What goods and services will produce and what quantity to produce.
How will be various good and services be produce.
for Whom will the various goods and services be produce.

Distribution of Economics benefit depends on the distribution of income and wealth.
Economics has two type.
A. Decision Maker.
B. Coordination Mechanism.
Any Person or organization of person that make choices are deals in decision market.
Decision Maker fall in to three group.
i. House
ii. Firms
iii. Government
Economy is change country to country. Advance countries go for capital but some have limitation of qualified labour.

OPPORTUNITY COST

Economist use the term opportunity cost of emphasis that making choice in the fact of Scarcity implies a cost OR We go for best in order to forgone other upon them.

Economics other divided into two parts.
1. Micro Economics
2. Macro Economics

Micro Economics
Micro Economics deals with single, individual or a particular firm, consumer or producer.

Macro Economics
Macro Economics deals as whole or over all performance of economy like national income.

According to the Adam Smith

Economics is the study of wealth and according to him wealth is for man but not man is for wealth.

According to Robbins

Economics is the study of human behaviors as a relation between ends and scare moons which have alternate uses.

CONSUMER
1. To get the maximum satisfaction from producer (House Hold Sector) supplier of loan.
2. They are lender of loan. They purchases their bonds.

PRODUCER
1. To get profit from consumer pockets. (Business Sector) Desire the borrowed the loan.
2. Demand the loan. They print new loan to borrow the loan

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Types of Interviews

Types of Interviews

In general, there are several types of interview’s, which may be briefly discussed as follows:

1. Unstructured Or Non-Directive Or Informal Or Traditional Interview
In an unstructured interview, there are no predetermined questions or prearranged sequence of topics for discussion. Consequently, by design unstructured interviews are highly flexible and informal – no fixed questions format or systematic scoring procedure. Interviewers are free to probe into those areas seeming to deserve further investigation and to adapt (alter) their approach to the prevailing situation, as well as to changing stream of job applicants. Spontaneity characterizes this type of interview. Its direction is large determined by a job applicant’s answers. To be effective, an unstructured interview requires highly skilled and trained interviewers. Experience shows that, if properly conducted, an unstructured interview can lend to significant job-related insights. However, such interview is highly susceptible to distortion, bias, inconsistency and difficult verification of its results.

2. Structured Or Patterned Interview
Structured interviews are recommended as alternative to traditional unstructured or informal interview. A structured interview may be defined as a series of job-related questions with standardized answers that are consistently applied across all interviews for a particular job. In this interview standardized questions are asked from all applicants for certain jobs and a standard form is used for recording responses. Standardization permits easy comparison of candidates. It also helps in achieving and proving validity. Of Course, no interview can be completely unstructured or nondirective and it is hard to conceive of an interview that is totally structured or patterned.

Generally, structured interviews are constructed, conducted and scored by a committee of three to six members so as to try to eliminate bias. The structured interviews are more likely to provide consistent and reliable information from the various interviewers. Furthermore, if the specific interview questions in a format are drawn from an accurate job analysis, then structured interviews are also more likely to be valid. However, such interviewers have limited flexibility. The unstructured interview format (form) restricts adaptation (alteration) to unusual circumstances or unusual interviews. Such interviews do not afford the opportunity to the applicants to demonstrate their job knowledge, communication skills, etc.

3. Stress Interview
Most interviews try to place interviewees at ease. However, the opposite is true in the stress interview. It is specifically intended to determine a job applicant’s interviewer purposefully attempts to create a climate of intimidation (threat), criticism and ridicule (mockery or making some one appear foolish or worthless). The purpose is to deserve the interviewee’s reaction to stress and tension. This approach is based on the theory that certain personal traits, for example, emotional stability, can be deserved only when an individual is placed in stressful surroundings. Thus, an interviewer may deliberately interrupt an applicant in his mindsentence, cast aspersions on an applicant’s character, remain silent for protracted (longer) periods of time and adopt a hostile posture in an attempt to create a pressurized situation.

The extent which stress interviews are useful is debatable. Some justify its use when the concerned job position is particularly stressful, for example, law enforcement officer, airline pilot, sales representative, or fire fighter. However, some critics contend that the kind of stress created in an interview is rarely similar to that found on a job. Moreover, there are not very many positions in which the ability to cope with stress in a primary characteristics.

4. Group Interview
Interview also differs according to how many interviewers and applicants are involved. Normally, job applicants meet with interviewers one-on-one, i.e., individually. However, in the group interview, several applicants questioned together by one or more interviewers. A small group of fine or six candidates is observed and evaluated in group discussions and interactions, by the selectors.

5. Series Interview
For certain types of jobs, especially managerial jobs candidates may be required to go through a series of interviews of a progressively rigorous nature.

6. Board Interview
For important jobs, especially those of a political nature the board interview may be used. Here several interviewers, often members of a government board or committee, quiz one or more candidates.

Selection Process

Selection Process Or Elements of Selection Process

The major steps involved in the selection process may be discussed as follows:

1. Filling in Application Form
This may be regarded as the first step of selection process. Candidates are supposed to provide complete information about them in a prescribed printed form. It may require information regarding a candidate’s name, father’s name, address, nationality, sex, marital status, religion, education qualifications, work experience, fields of extra-curriculum activities, references of two eminent persons and so on. The application of the candidates provides the basis for further analysis of the candidature and examination of his suitability for employment. The specific type of information required in an application blank may vary from firm to firm any by positions within the organisation. However, there is high degree of similarity with regard to general information sought in the application blanks of various organisations. If properly used application blanks can be an effective aid in selection. However, their usefulness is largely dependent on the accuracy of data and information furnished by the candidates. In their eagerness to obtain work, some applicants may be tempted to stretch the truth concerning matters such as past experience, responsibilities, salary and reasons for bearing the previous job. For this reason, many human resource managers make it a point to query applicants further regarding these matters during the employment interview.

2. Preliminary Screening
This refers to initial assessment of basic suitability of candidates for the job positions. The human resource manage sees whether the applicants meet the basic academic and other minimum requirements as to age, work experience, etc. Such screening may be done by going through the data and information supplied in the application blanks or by holding preliminary screening interviews. The basic objectives of preliminary screening are (i) to eliminate the unsuitable candidates at an early stage, (ii) to reduce the overall cost of selection.

3. Employment Tests
Candidates, who are filtered through the initial screening, submit themselves to certain tests, formal or informal. Test is a means of evaluating candidates knowledge, skills, experience, attitudes, aptitudes, personality, interest, capacity, physical characteristics, level of mental ability, likes and dislikes and soon. In some cases, such as typing and shorthand, computer knowledge and efficiency, etc., tests are the only way to determine the suitability of candidates for the job.

There are several types of tests, which are widely used for selection purposes. They include; intelligence tests, aptitude tests, personality tests, performance tests and so on. Written tests are found to be most popular in many cases.
Tests provide a more objective, authentic and consistent basis for selection of right candidates. They help the organisation in arriving at a judgement on the likely work behaviour and performance of candidates. However, certain conditions should be met if tests are to be used for employee selection. First, the tests should be reliable. In other words, they should provide consistent results. Secondly, tests should be valid. In other words, they should measure what they are designed to measure. If a test is designed to predict job performance, prospective employees who score well on the test, should prove to be objective when different scorers interpreting the results of the same test, arrive at similar interpretations. Finally, tests should be standardized. This requires them to be administered under standard conditions to a large group of persons. The purpose of standardization is to obtain norms; therefore specific test scores will be meaningful when compared to other scores in the group. If a test cannot indicate the ability to perform the job, it must not be used.

Testing helps in achieving the most efficient matching of applicants with jobs. From a social standpoint, testing that is job-related, serves the objective of equal employment opportunity, to which modern societies are increasingly committed. Thus, it is vital that organisations have a thoughtful process for validating any selection tests they use. No doubt, testing is a complex, time consuming and expensive process.

4. Employment Interview
Although employment tests provide a lot of valuation information and insight about the candidate, they do not provide a complete set of information and knowledge required about a candidate. The interview helps in evaluating information obtained from the application blank and tests. It provides an opportunity to the interviewer to integrate different pieces of information through his personal impressions and observations of the interviewee so as to such a decision regarding the suitability of the applicant for employment. Thus, the combination of tests and in view provides better results in selection. It allows applicants to obtain additional information about the prospective employer.

An employment interview is part of almost every selection process. It is the most important step in selection. This is because an interview enables the selectors to get a first hand idea of the personality of the candidate, their gestures, communication skills, general skills, mannerisms, reactions, presence of mind and confidence. Further more an interview presents an opportunity for both the organisation and the job applicant to “sell” themselves to one another and to establish their mutual expectations. However, for such expectations to be accurately established, it is essential that employment interview he as realistic as possible. In order to prevent unrealistic expectations, disillusionment and feelings of being misled in new employees, which may result in lack of job commitment and early turnover (leaving the organisation), interviewees should be told negative as well as positive aspects of a position, so that the applicants who view such negative aspects as unacceptable, can remove themselves from further consideration. Those who remain will represent a recruitment pool with accurate job expectations. Research by John P. Wanous (1980) suggests that such “realistic recruitment” contributes significantly to reducing employee turnover

Principles of Staffing

Principles

Staffing not only helps in acquiring right talent, but also strives for nurturing. There are no universally accepted staffing principles. However, Heinz Weihrich and Harold Koontz have identified certain useful major principles or guidelines for understanding and performing more effective staffing function.

1. Principle of the Objective of Staffing
The objective of managerial staffing is to ensure that those qualified personnel who are able and wiling to occupy them fill organisation roles. There is considerable evidence of failure to achieve results when these qualities are lacking.

2. Principle of Staffing
The clearer the definition of organisation roles and their human requirements and the better the techniques of manager appraisal and training employed, the higher the managerial quality. Those organisations that have no established job definitions, no effective appraisals and no system for training and development, will have to rely on coincidence or outside sources to fill positions with able managers. On the other hand organizations applying the systems approach to staffing and human resource management, will utilize the potentials of individuals in the enterprise more effectively and efficiently.

3. Principle of Job Definition
The more precisely the results expected of managers are identified, the more the dimensions of their positions can be defined. Since organizational roles occupied by people with different needs, these roles must have many dimensions – such as pay, status, power, direction and possibility of accomplishment – that induce managers to perform.

4. Principles of Managerial Appraisal
The more clearly variable objectives and required managerial activities are identified, the more precise can be the appraisal of managers against these criteria. This principle suggests that performance should be measured both against verifiable objectives (as in an appraisal approach based on management by objectives) and against standards of performance as managers. The appraisal of managers as manager considers how well the key managerial activities within the functions of planning; organizing, staffing, directing and controlling are carried out.

5. Principle of Open Competition
The more an enterprise is committed to the assurance of quality management, the more it will encourage open competition among all candidates for management positions. Violation of this principles has led many firms to appoint managers with inadequate abilities. Although social pressures strongly favour promotion from within the enterprise, these forces should be resisted whenever better candidates can be brought in from the outside. At the same time, the application of this principle obligates the enterprise to appraise its people accurately and to provide them with opportunities for development.

6. Principle of Management Training and Development
The more management training and development are integrated with the management process and enterprise objectives, the more effective the development programmes and activities will be. This principle suggests that in the systems approach, training and development efforts are related to the managerial functions, the goals of the enterprise and the professional needs of managers.

7. Principle of Training Objectives
The more precisely the training objectives are stated; the more likely are the chances of achieving them. The analysis of training needs is the basis for training objectives that give direction to development and facilitate the measurement of the effectiveness of training efforts. This principle brings into focus the contribution that training makes to the purpose of the enterprise and the development of individuals.

8. Principles of Continuing Development
The more an enterprise is committed to managerial excellence, the more it requires that manager practice continuing self-development. This principle suggests in a fast-changing and competitive environment, that managers cannot stop learning. Instead, they have to update their managerial knowledge continuously, revaluate their approaches to managing and improve their managerial skills and performance to achieve enterprise results

Importance of Staffing

Need and Importance of Staffing

Progressive and successful organizations treat all employees as valuable human resources. Productivity and the resultant financial reward are dependent solely on the quality and skill of people. Some organizations make up for their lack of natural resources by their dedication to the maximum possible development of their human resources. If employees are put first, they help the enterprise to prosper. Staffing function provides proper mechanisms for efficient handling of personnel matters, including workers, grievances. Filed research indicates that employees tend to return the favour when they are treated with dignity and respect. Specially, it is reported that professional employees kept higher organizational commitment when their employer’s human resource practice were perceived to be fair and just. Staffing is responsible for creating such practices.

Activities

Staffing activities, though all derived from organisation strategy and structure, in turn activate the strategic management and the structure. Strategic orientation in staffing function increases the chances of organizational success.

Process

Staffing process and policies play a considerable role in acquiring right people at right time on right positions. Effective staffing function strives to establish cost-benefit relationship while manning the positions in the organisation structure – people are acquired at lower outflows for providing greater efforts, optimal contribution and higher commitment.

Relationship

Staffing is important in its relationship with other managerial functions, because without their human resources, organizations would remain empty skeletons that cannot move to achieve their goals. The functions of planning, organizing, directing and controlling become nonstarters without people n the organisation. It is clear that the effectiveness of other managerial functions depends on the degree of efficiency with which the staffing function is done. An organisation is healthy, strong and successful to the extent that its people are capable, skillful and committed. Further, the attitudes, orientations and performance of people partly depend on how efficiently the staffing function is handled by the enterprise and how much attention top management gives to it.

Need

Staffing function takes care of the need for building a sound organisation. In a sense, organisation widely differs in their quality and competence due to large variations in their human resources.