MULT/FACETED PROCESS OF RUNNING A BUSINESS

A variety of operations keep businesses, especially large corporations, running efficiently and effectively. Common business operation divisions include production, marketing, finances, and human resource management.

Production includes those activities involved in conceptu­alizing, designing, and creating products and services. Marketing research is conducted to study consumer behaviour. Changing attitudes and modes of living directly affect the sale ability of products. The purchase of durable or long-lived goods, such as refrigerators, cars, and houses, or luxury products may be deferred when the economy is declining and may increase rapidly in periods of prosperity. Staple products, such as food and clothing, tend not to be seriously affected by the business cycle. Consumers today expect product innovations. Compe­tition between manufacturers of similar products naturally accelerates the speed of changes made in those products.

The two basic components that affect product pricing are costs of manufacture and competition in selling. It is unprofit­able to sell a product below the manufacturer's production costs and unfeasible to sell it at a price higher than that at which comparable merchandise is being ottered. Other variables also affect pricing. Company policy may require a minimum profit on new product lines or a specified return on investments, or discounts may be offered on purchases in quantity.

Marketing concentrates primarily on the buyers, or con­sumers, determining their needs and desires, developing stra­tegies to persuade them to buy. Marketing management in­cludes planning, organizing, directing, and controlling deci­sion making regarding product lines, pricing, promotion, and servicing. In addition, the marketing department of a busi ness firm is responsible for the physical distribution of the products, determining the channels of distribution that will be used and supervising the transportation of goods from the factory or warehouse. Marketing and sales departments pre pare documentation, handle cargo, do packing for clients, advise on insurance and the best means of transport, handle customs procedures.

Finance involves the management of money, controlling capital on hand to pay their bills, seek extra capital to expand their operations. Other common financial activities include granting, monitoring, and collecting on credit or loans, and ensuring that customers pay bills on time. The financial divi­sion of any business must also establish a good working rela­tionship with a bank. This is particularly important when a business wants to obtain a loan.

Businesses rely on effective human resource management (HRM) to ensure that they hire and keep good employees, and that they are able to respond to conflicts between work­ers and management. HRM specialists are responsible for recruiting new employees to replace those who leave and for filling newly created positions. A business's HRM division also trains or arranges for the training of its staff. Human resource managers create workers' compensation plans and benefit packages for employees.

10. JOB TITLES & PERSONNEL FUNCTIONS

Названия должностей и функции персонала

MAKING APPOINTMENTS

Making appointments is one of the main personnel func­tions. Advertisements are placed in newspapers and in trade journals. Applicants who reply to these, or who are found in other ways, are sent application forms. From these best can­didates are chosen and a short list is drawn up. The short­listed applicants are called for an interview. During this, the employment package is explained: this includes the annual holiday entitlement, the rates of pay, and the opportunities for promotion. When the successful candidate is decided on, there is one last step: references are taken up before the ap­pointment is finally confirmed.