CHAPTER 9 – ORGANIZATION OF PERSONNEL
Giving of tests
People – most complicated problem of business
Factors in successful personnel organization and administration
1. Analysis of the job
2. Selection and testing of applicants
3. Induction and training
4. Supervision and personnel actions in the work process
5. Providing an incentive, together with wage administration
6. Cooperation between the labor and management
Analysis of the Job (several facts)
1. The light may be inadequate or may come from the wrong
direction
2. The machine may be in poor condition o may be obsolete
3. The materials may not come in proper shape to work on
4. The tools may be dull, not appropriate, or even lacking
5. The worker may make many unnecessary motions which not only
spend time unprofitably but likewise tire him quickly.
6. The work may not be arranged to the best advantage.
Selection and Testing of Applicants (Sources of Applicants)
1. New openings, Promotions, other Vacancies
2. Former employees with satisfactory records
3. Friends or relatives of present employees
4. Newspapers advertisement
5. School, Colleges, and Training Agencies
6. Department of Labor
7. Letters of applications
8. Companies with labor unions
Major Steps in Hiring Procedure
1. Requirements of the job to be filled have been specified
2. Qualifications workers must possess have been specified
3. Candidates for screening have been recruited
Personnel Administration Tests
1. Intelligence Test
2. Aptitude Test
3. Vocational Interest Test
4. Proficiency Test
5. Personality Test
Process of employing personnel
1. Filling up of application forms or contacting of sources of
applicants
2.
3. Interview of the selected applicants
4. Medical or physical examination
5. Investigation as to background, interview of references, and the
like, if deemed necessary.
6. Induction of new employee
Induction and Training (Stages of Induction)
1. Acquainting the new employee with his new surroundings and its
rules and regulations
2. Indoctrinating him in the “philosophy” of the company and its
reason for existence.
Steps in Training
1. Be sure that the new employee understands what you have in
mind
2. Show him carefully what you want to be done, using patience,
going into details, and explaining the importance of each step.
3. Have him watch someone perform the work and let him ask
questions
4. Review the instructions
5. Let him practice the work under direct supervision
6. Review the instruction again
7. Let him get more practice, gaining proficiency constantly, until his
output approaches the standard set for the work
Seed for Training
1. Normal growth or expansion
2. Labor turnover caused by transfers, resignations, retirements,
marriages, and deaths.
3. New processes or technologies
4. Its usefulness as a tool of control
5. Advantage in giving information, improving morale, or
developing skills
Supervision (Function/Responsibilities)
1. Gives help and encouragement to any worker
2. Teaches the worker the correct way to do the work and patiently
watches him until he has mastered it
3. Sees that the work is supplied to the worker when and as it is
needed
4. Sees that the work is turned out according to schedules.
5. Settle differences as they arise and thus keep order within the unit,
in addition to cooperative responsibilities
Requirements in Supervisor’s Group
 1. He must know how to get work done, and when it is being done  Economic reason
correctly  Disciplinary reason
2. He must know how to give orders and instructions so that they will  Incompetence
be understood and followed.  Retirement
3. The supervisor himself must be carefully and thoroughly trained for
his job CHAPTER 10: ORGANIZATION FOR SALES AND ADVERTISING

Providing an Incentive Sales – Lifeblood of a business

Incentive – stimulus to action Marketing – business activities involved in the flow of goods and services
Wage Administration – an integral part of the work of personnel from the point of production to the point of consumption
administration
Satisfactory Wage Marketing Functions:
1. It should be such as to maintain the standard of living 1. Buying
2. It should be within the capacity of the company to pay 2. Selling
3. It must be comparable to prevailing wage rates in the community  Personal selling
4. Wages should be related to output  Advertising
5. Wage plans should be readily understood by employees  Sales Promotion
6. The wage system should facilitate the collection of cost data 3. Transportation
Other Incentives 4. Storage
1. Extra payments for time worked 5. Standardization
2. Payments for time not worked 6. Market Finance
3. Payments for employee security 7. Market Risk
4. Non-production awards and bonuses  The goods may be damaged
5. Employee services  They may deteriorate
 They may be stolen
Cooperation between Labor and Management  The price may move unfavorably
Steps in Disciplinary Action  The goods may be obsolete
1. Accurate statements of the disciplinary problem 8. Market Information
2. Collection of full information on the case
3. Selection of tentative penalties to be applied The Sales Organization
4. Choosing among the alternative penalties 1. Nature of the product
5. Application of the penalty 2. Nature of the market sought
6. Follow-up of the case 3. Marketing plan
Various modes in Disciplinary Action 4. Outgrowth of custom or tradition
1. Oral Reprimand 5. Size of the company and volume of sales
2. Written Reprimand 6. Organizational philosophy of top management
3. Fine
4. Suspension Marketing Plan (Methods)
5. Demotion 1. Direct to consumer, either through personal selling or mail orders
6. Dismissal 2. Through wholesalers or retailers to the consumer
Separations 3. Through selling agents
1. Involuntary 4. Through company branches to the retailers
2. Involuntary 5. Any combination
 4. Terms
Essential Functions of Selling Effort 5. Product
1. Finding out what people want or need
2. Finding people who want and need it Sales planning and sales promotion
3. Getting orders from them 1. Qualified personnel force
2. Special Approach
Further Selling Functions 3. Study of Markets and Territories
1. Product Planning and Development
2. Contactual Function Advertising – any paid form of non-personal presentation and promotion
3. Demand Creation of ideas, or services by an identified sponsor.
4. Negotiation (4 key elements): Paid form; non-personal presentation; ideas and
5. Contractual services as well as goods; an identified sponsor

Channels of Distribution Purpose of Advertising

1. Manufacturer to consumer 1. Bringing customers to the place where goods are sold
2. Manufacturer to retailers to consumer 2. Persuading customer to ask for specific product
3. Manufacturer to wholesaler to retailer to consumer 3. To assist salesman in making sales upon calling on the customer
4. Manufacturer to sales agent to wholesaler to retailer to consumer 4. Building institutional goodwill

Various Channels Other Purposes

1. Through jobbers 1. Prices are kept within reasonable limits
2. Direct retailers 2. Advertising facilitates and utilizes the advantages of
3. Direct to consumer standardization
4. Through brokers or agents 3. Advertising enables customers to save time and effort
4. Advertising results in goodwill which leads to repeat sales
Kinds of Goods 5. Advertising stabilizes production by encouraging buying when
1. Producers Goods – called industrial goods, are those goods used normal buying is low
in the further production of other goods 6. The use of ethical advertising benefits the whole industry
 Raw Materials
 Fabricating Parts Classification of Media
 Equipment 1. Periodical media
 Supplies 2. Broadcast media
2. Consumers Goods – are sold to ultimate consumers for their own 3. Mass media
use 4. Direct-Mail media
 Convenience Goods
 Shopping Goods
 Specialty Goods
 Unsought Goods

5 Directions to meet Competition

1. Price
2. Quality
3. Service