Personnel Management

Personnel management is an administrative function within an organization that oversees the hiring,
organization and support of employee positions. A branch of human resources, personnel management
focuses on recruiting the right individuals to fit a position and supporting those already working for the
company. This area also functions as a tool for evaluating the hiring process and gaining insight into
employee satisfaction. Personnel management professionals work to provide the resources and tools
staff members need to thrive in their work environment every day.

Types of personnel management

Here is an overview of the main types of personnel management used in staffing decisions and
employee support operations:

Strategic

Strategic personnel management focuses on planning how to best support staff members. This includes
current and future strategies such as managing turnover rates, determining recruitment policies and
maintaining employee satisfaction. Strategic personnel management also aims to provide ongoing
training to help employees grow within the organization to encourage longevity and satisfaction in
workplace positions.Related: Identifying the Key Personnel at Your Company

Tactical

Tactical personnel management involves administrative planning. This includes determining how to
schedule current staff members. It also includes predicting the amount of staff necessary to fill positions
in the short and long term. Tactical personnel management focuses on recruiting the most qualified
candidates through a specific selection process. This type of management also handles training and
onboarding for new employees. It is sometimes organized into three parts of staff resources, including
technical, functional and organic.

Operational

Operational personnel management refers to the daily functions of human resources in employee
relations. Support personnel in HR use operational personnel management to handle the basic needs of
new employees like providing equipment and passwords to company technology platforms. This area of
personnel management is also involved in organizing how employees receive benefits and ongoing
support.Related: How To Organize Personnel Files (Plus Who Uses Them)

Elements of personnel management

Personnel management can be broken down into several elements as listed below:

 Job analysis: This function of personnel management determines how a position fits into the
overall company framework. It's a measure of the role and not the employee.
  Strategic personnel planning: Also called strategic workforce planning, this element involves
hiring the most qualified individual to fit a necessary role in an organization. It ensures that
hiring processes are consistent, fair and effective.

 Performance appraisals: Identifying how employees are evaluated is the function of this
element of personnel management. Using this element, professionals in personnel management
decide how often employees are assessed and the methods used to rate employee
performance.

 Benefit coordination: Determining the type of benefits employees receive and planning for their
distribution is an essential part of personnel management. This element also involves choosing
plans such as personal health care benefits.

 Continuing education: To keep staff involved in growing their career and investing in their
workplace, personnel management oversees employee development through continuing
education. This may include offering seminars, learning lunches or arranging for staff to attend
professional conferences.

 Pay and salary distribution: Another part of the operational activities of personnel management
staff is to ensure employee payroll functions correctly. It may also involve setting pay scales or
job levels.

 Attendance and leave: Managing personnel also means overseeing time off for sick and
personal days. This function also involves leaves of absence or short-term disability.

Financial Management
In simple terms, financial management is the business function that deals with investing the available
financial resources in a way that greater business success and return-on-investment (ROI) is achieved.
Financial management professionals plan, organize, and control all transactions in a business. They focus
on sourcing the capital whether it is from the initial investment by the entrepreneur, debt financing,
venture funding, public issue, or any other sources. Financial management professionals are also
responsible for fund allocation in an optimized way to ensure greater financial stability and growth for
the organization.

Importance of Financial Management

The financial management of an organization determines the objectives, formulates the policies, lays
out the procedures, implements the programmes, and allocates the budgets related to all financial
activities of a business. Through a streamlined financial management practice, it is possible to ensure
that there are sufficient funds available for the company at any stage of its operations. The importance
of financial management can be assessed by taking a look at its core mandate:

 Availability of sufficient funds

  Maintaining a balance between income and expenses to ensure financial stability

 Ensuring efficient and high ROI

 Creating and executing business growth and expansion plans

 Safeguarding the organization against market uncertainties through ensuring buffer funds

Let’s take a deeper look at the scope of financial management to gain a greater understanding of its
importance.

Financial Management Scope

Financial management in a company is governed by the principle that it must protect the financial
interests of the investors, shareholders, and ensure business growth. Apart from securing their interests,
the financial managers are also expected to ensure greater ROI that generates more wealth for all
shareholders. There are certain objectives of financial management which are universally accepted by
experts and business leaders, and these clearly outline the financial management scope and functions.

Objectives of Financial Management

Certain specific and highly impactful objectives that financial managers aim to attain are:

Assessing capital needs – Financial managers need to evaluate factors such as cost of current and fixed
assets, cost of marketing, need for buffer capital, long-term operation and human resources cost etc.
Successful businesses have clearly defined short-term and long-term financial requirement projections
in place.

Determination of capital structure – A company’s capital structure is the framework that determines
decisions such as debt-equity ratio in the short as well as long term.

Creation of effective financial policies – There is a need to frame efficient financial policies that govern
cash control, the lending and borrowing processes and so on.

Resource optimization – Great financial managers are able to navigate through different scenarios by
making optimum use of the available financial resources. This would reduce the cash burn and increase
the cash churn to generate maximum ROI.

Production Management
Production management is the process of controlling a company’s operations to provide the services
and products it wants to produce. It comprises organizing, carrying out, and managing processes that
transform raw resources into completed products and services.

The company’s production strategy, which calls for the use of certain technologies and the
accomplishment of pre-established goals relating to manufacturing mixes, unit costs, quality, and
production capabilities, should be successfully implemented, according to the production management.
It usually coordinates, supervises, and regulates the individuals or teams in charge of the manufacturing
process itself, equipment maintenance, quality control, and inventory control.

As a result, it is possible to state that product management is concerned with acquiring resources, such
as management inputs, natural resources, manpower, capital, machinery, and so on, in order to create
or produce completed goods.

Production management is the process between these two checkpoints. Production management is the
control and execution of the process that converts raw resources into finished goods.

Importance of Production Management

 Reduces the possibility of product failure

o In order to appraise the market and lower the likelihood of failure, a clear roadmap
should be prepared along with data and assumptions.

o A product will be less likely to fail if its designers are aware of the demands and wants of
the market.

o Product management reduces failure but it can’t guarantee success like anything else.

Optimal use of resources and funds

 Production management maximizes resource use while reducing production costs to the
absolute minimum.

 Utilizing time and resources efficiently is made possible by a clear blueprint, reducing the gap
between input and output.

 It will be possible to manage processes effectively and maximize workforce efficiency by

evaluating production processes and maintenance downtime.

 High-quality goods, a quicker rate of manufacturing, and a lower cost per unit are the outcomes
of a well-designed production function.

Production management must be implemented effectively. You won’t be able to fulfill deadlines or hit
your sales goals if you don’t. There are several advantages to using a well-planned production
management solution.

Raw Materials Management

Raw material inventory management is the process of managing the material goods used to create a
product. It aims to ensure you always have enough raw materials available to meet demand and
maintain production levels while avoiding operational lost time.
By accurately controlling the inventory levels of raw materials, manufacturers can achieve two goals at
once:

 Bring costs down (by limiting the required storage space for raw materials to a minimum)

 Complete production jobs and fulfil orders faster (by reducing the risk of understocked items)

Raw materials inventory management deals with raw materials stock throughout the entire supply
chain. It encompasses the processes involved in purchasing, tracking, consuming, and relocating raw
materials.

Without an effective system in placing for managing raw materials inventory, there’s a good chance you
will end up overstocked – and pay extra in storage costs – or understocked and unable to produce goods
when you need them.

Definition of raw material

Raw material can be defined as any unprocessed materials or ingredients used to create a product. It
refers to commodities bought and sold by businesses for the purpose of manufacturing goods to be sold
or used in the production of products. For example, the raw materials used to produce a child’s toy may
include plastic, wood, paint, and glue.

Marketing Management
Marketing management refers to the strategies, tools and analyses used in promoting a business.
Businesses use marketing management techniques to identify opportunities for growth and connect
effectively with new target markets. It coordinates advertising efforts across platforms to promote a
brand’s image and capture as many potential customers as possible.

Marketing management also involves reflecting on the impact of past marketing campaigns and
customer outreach efforts, using customer feedback and sales trends to adjust a company’s overall
marketing plan. It seeks to streamline the way a business builds relationships with customers and
connects their products and services with people who could benefit from them.

Good marketing management drives business success by finding the best ways to reach out to
customers and grow sales. Businesses need strong marketing strategies to stay competitive within their
industry, find new customers and retain current clients.

Marketing management helps new businesses find a niche or expand into multiple segments based on
past experience selling to different audiences. Advertising and customer engagement connect with
those audiences to build a company reputation. As your marketing strategy develops, you can analyze
customer interactions and buying patterns to learn more about your ideal customer and how to pique
their interest in your products or services.

Elements of marketing management

Goal-setting

The basis of marketing management is setting achievable goals and creating a timeline to meet
benchmarks towards success. Managing marketing at your business involves understanding the different
factors that influence customers in your ideal market to make a purchase, then making goals based on
targeting those factors. When setting goals to facilitate marketing management, include sales goals,
budgeting expectations and brand development plans.

Coordination

Carrying out marketing campaigns requires collaboration between company leaders, creative teams and
front-facing staff. A strong marketing management plan aligns company messaging across different
marketing channels such as digital marketing, social media marketing and print advertising. To
effectively coordinate marketing efforts, business owners develop a central vision for their brand to
guide how marketing materials look and how brand ambassadors interact with their audience.

Market research

Marketing management is based on thorough market research. Gather customer data and assess
economic patterns to see trends in what consumers want to buy and why they make those purchases.
Market research identifies areas where your business could succeed and highlights potential challenges
that your business needs to address. Use market research to develop a marketing plan centered on the
consumer experience.

Relationship-building

Effective marketing management strategy brings in new customers and builds sustained relationships
with old customers to encourage repeat purchases and word-of-mouth marketing. When the public is
aware of your product, engaging with them through digital content, social media and professional
networking can make them feel invested in your company. Marketing management guides a company’s
values to align with consumers, providing shared goals to strengthen their relationship with a base of
dedicated customers.

Idea generation

Great marketing is agile and can adapt to changing market trends. Ongoing market research and analysis
helps businesses generate ideas to stay relevant to their audience or re-brand their business to reach a
new niche. Once you understand why your company appeals to consumers, you can focus on creating
new products and services that build on that appeal.

Service Sector
The service sector or tertiary sector refers to one of the portions forming the three-sector model of the
economic sector. The businesses in the service industry produce intangible goods in the form of service as
output delivering to other businesses or consumers.
The tertiary sector producing intangible economic goods doesn’t hold inventory, unlike the primary
economic sector producing raw materials and the secondary sector representing the manufacturing
entities producing finished goods. Examples of the tertiary sector include private entities providing
services like retail sales to government entities providing public protection.

The service sector is significant to world economic growth. It is prospering and generating employment
opportunities, specifically in the countries open to trade contributing to GDP. Per capita income exhibits
a positive association with service industry output. In the United States, the service industry accounts
for a major share of employment output and national economic output.

The quality of service is a valuable measure of productivity. It comes to fruition when companies
endeavor to provide higher quality service to the customers to gain fine customer satisfaction. Another
important element is the labor force since the tertiary sector is personnel intensive to a great extent.
Therefore, the labor or technical professional elements have great importance in the tertiary sector,
similar to the importance of raw materials and machinery in the manufacturing industry.

There are different types of tertiary sectors and classifications. Moreover, their proportion varies with
countries. One of the classifications is organizing them into consumer, business, and public services.

 Consumer Services: Target market will be the individual consumers. Examples include
hospitality and retail.

 Business Services: Target market will be the organizations or other businesses. Examples include
information technology and marketing services.

 Public Services: Deliver services to the general public. Examples include healthcare and
education.

Creating a distinctive service

A distinctive service can be created by using the following steps:

1 Understand your customers

2 Define your value proposition

3 Design your service

4 Implement your service

5 Innovate your service

MIS Applications in Airlines

Airlines exist to connect people to distant locations very efficiently and safely while making profit for the
shareholders. There has to be a trade-off between the three aspects. Thus, the designing of information
system is very essential and its management helps them reach the organization’s purpose.
The 4 basic factors that the airline industry has to carefully tackle are: Safety, Comfort, Speed,
Efficiency. Hence, the
importance of the technology of integrated systems has become clearer and unavoidable in the airlines
for the future
as well.

Airline companies use cutting edge IT Infrastructure and application to support services
including employee transition, data centre operations, help desk support and storage operations,
internet security services, network management, airport operations, direct distribution and frequent
flier programs and various other operating systems.

A good information system in practice can ensure that the operation is able to run efficiently with clear
focus on
customers. By incorporating better and better technology systems, airline companies can reach out to
demands of
more customers and also strengthen vital features like security, avoiding delays, reducing the cost of
travel.

Role of MIS in the Airline Industry

 To store basic data like passenger information, flight details, traffic flow between towns and
cities, record of add-on services and fares, flight schedules etc. (Flight Operation System)

 To maintain and interpret important data like market share and profit margins to make
decision making process easier. (Pricing and Revenue Management System)

 To have records of revenues and cost to compare performance with the competitors or with
past years performance and find deviations. (Pricing and Revenue Management System)

 To have records of all flights and their schedules for effective air traffic controlling. (Flight
Communication System)

 To have a record of all the employees (pilots, air hostesses, transport and luggage, security
guards etc). (HR management System)

 To keep track of luggage and belongings of the customers flying with the airline. (Baggage
Handling Systems)

 To keep track of boarding, check ins and landing of each customer in each flight and
coordinating the same to give maximum customer satisfaction. (Airport Management System)
  To maintain all records of recent fares and discounts allowed to come up with marketing and
pricing strategies to survive in the competitive industry with strong competitors. (CRM System)

 To keep a record of all the funds and their sources and their allocation and ensure optimum
utilization. (Finance System)

 To keep a track of expenses and ensure availability of resources like fuel, food, water, life
jackets etc whenever needed. (Flight Operation System).

MIS Applications in Hotel

People generally take the service of the hotels when they are visiting some other place and don't have a
place to stay there. It is considered to be a place where a person can stay conveniently. However, in the
recent times there have been a number of changes in the concept of hotel due to a number of causes.
People always search for differentiated services in a hotel.

There has been a remarkable transition from convenience to comfort, from comfort to enjoyment and
finally from enjoyment to total service. This has happened because a large number of people are taking
the service of the hotels. The profile of the customers has also undergone drastic changes. Initially the
hotels were designed to suit the individuals. Later they had to carry out modifications to accommodate
tourist groups, family and business executives. Each time changes must be carried out in the design of
the hotel to accommodate the changes in the customer demands. Depending on the budget of the
customers the concept of star hotels has come up so that various segments of customers can be served.

One of the common problems that are faced by the managers of hotels is regarding differentiated
service to the customers. The prime objective of any hotel is to offer a room with the basic facilities and
amenities to the customer and ensure that the stay is comfortable. The hotel gets a successful business
if the most of the rooms are occupied and the visitors take those services that can be billed separately.
The hotel business is said to perform well if its occupancy and turnover is high.

The MIS that is used in the hotels helps in understanding the expectations and perceptions of the
customers. The hotel is then able to fulfill these expectations in the best way.

MIS Applications in Hospital

Hospital's management has to provide distinctive services to a wide variety of customers having
different perceptions and expectations regarding the services. Discrimination can be easily carried out
by the customers regarding various aspects such as personal and medical treatment (quality of caring
and quality of care), effective and efficient service and service provided at minimum cost. Customer
mainly focuses on the end result of the service and appraises the management on the performance of
service process.

So we can say that, "Hospital Information System (HIS) is a computerized system that regulates all the
medical and administrative information processing activities in order to achieve an efficient and
effective work performance by health professionals of a hospital."

The hospital information system is also known as Integrated Hospital Information Processing System
(IHIPS) because it integrates various components like Clinical Information System (CIS), Financial
Information System (FIS), Laboratory Information System (LIS), Nursing Information System (NIS),
Pharmacy Information System (PIS), etc.