The document discusses price elasticity of demand and its measurement. It provides the formula to calculate price elasticity of demand using percentage changes in quantity demanded and price. Factors that determine price elasticity are also explained such as nature of commodity, extent of use, availability of substitutes, income level, urgency of demand, and durability. The document also discusses cross elasticity of demand and income elasticity of demand, providing formulas to measure them.
Talent management is just another one of those pesky Human Resources terms. Right? Wrong. Talent management is an organization's commitment to recruit, retain, and develop the most talented and superior employees available in the job market.
So, talent management is a useful term when it describes an organization's commitment to hire, manage and retain talented employees. It comprises all of the work processes and systems that are related to retaining and developing a superior workforce.
What appears to differentiate talent management focused practitioners and organizations from organizations that use terminology such as human capital management or performance management, is their focus on the manager's role, as opposed to reliance on Human Resources, for the life cycle of an employee within an organization.
Practitioners of the other two employee development and retention strategies would argue that, for example, performance management has the same set of best practices. It is just called by a different name.
Talent management does give managers a significant role and responsibility in the recruitment process and in the ongoing development of and retention of superior employees. In some organizations, only top potential employees are included in the talent management system. In other companies, every employee is included in the process.
Talent management is a business strategy and must be fully integrated within all of the employee related processes of the organization. Attracting and retain talented employees, in a talent management system, is the job of every member of the organization, but especially managers who have reporting staff (talent).
An effective strategy also involves the sharing of information about talented employees and their potential career paths across the organization. This enables various departments to identify available talent when opportunities are made or arise.In larger organizations, talent management requires Human Resources Information Systems (HRIS) that track the career paths of employees and manage available opportunities for talented employees.
Managing human resources includes, but is not limited to:
planning and allocating resources,
providing direction, vision, and goals,
developing an environment in which employees choose motivation and contribution,
supplying or asking for the metrics that tell people how successfully they are performing,
offering opportunities for both formal and informal development,
coaching successful contribution and performance development,
setting an example in work ethics, treatment of people, and empowerment worthy of being emulated by others,
leading organization efforts to listen to and serve customers,
managing the performance management system,
challenging the employees to maintain momentum, and
removing obstacles that impede the employee's progress.
Talent management is just another one of those pesky Human Resources terms. Right? Wrong. Talent management is an organization's commitment to recruit, retain, and develop the most talented and superior employees available in the job market.
So, talent management is a useful term when it describes an organization's commitment to hire, manage and retain talented employees. It comprises all of the work processes and systems that are related to retaining and developing a superior workforce.
What appears to differentiate talent management focused practitioners and organizations from organizations that use terminology such as human capital management or performance management, is their focus on the manager's role, as opposed to reliance on Human Resources, for the life cycle of an employee within an organization.
Practitioners of the other two employee development and retention strategies would argue that, for example, performance management has the same set of best practices. It is just called by a different name.
Talent management does give managers a significant role and responsibility in the recruitment process and in the ongoing development of and retention of superior employees. In some organizations, only top potential employees are included in the talent management system. In other companies, every employee is included in the process.
Talent management is a business strategy and must be fully integrated within all of the employee related processes of the organization. Attracting and retain talented employees, in a talent management system, is the job of every member of the organization, but especially managers who have reporting staff (talent).
An effective strategy also involves the sharing of information about talented employees and their potential career paths across the organization. This enables various departments to identify available talent when opportunities are made or arise.In larger organizations, talent management requires Human Resources Information Systems (HRIS) that track the career paths of employees and manage available opportunities for talented employees.
Managing human resources includes, but is not limited to:
planning and allocating resources,
providing direction, vision, and goals,
developing an environment in which employees choose motivation and contribution,
supplying or asking for the metrics that tell people how successfully they are performing,
offering opportunities for both formal and informal development,
coaching successful contribution and performance development,
setting an example in work ethics, treatment of people, and empowerment worthy of being emulated by others,
leading organization efforts to listen to and serve customers,
managing the performance management system,
challenging the employees to maintain momentum, and
removing obstacles that impede the employee's progress.
The price elasticity of demand compares the percent change in quantity demanded to the percent change in price.
To calculate PED we first calculate percent change in quantity demanded and the corresponding percent change in price as we move along the demand curve.
Income Elasticity of Demand
Income is an important variable affecting the demand for a good.
When there is a change in the level of income of a consumer, there is a change in the quantity demanded of a good, other factors remaining the same.
Every organization needs inventory for smooth running of its activities. It serves as a link between production and distribution processes. The investment in inventories constitutes the most significant part of current assets/working capital in most of the undertakings. Thus, it is very essential to have proper control and management of inventories. The purpose of inventory management is to ensure availability of materials in sufficient quantity as and when required and also to minimize investment in inventories. Raw materials, goods in process and finished goods all represent various forms of inventory. Each type represents money tied up until the inventory leaves the company as purchased products. Because of the large size of the inventories maintained by firms, a considerable amount of funds is required to be committed to them.
It is therefore absolutely imperative to manage inventories efficiently and effectively in order to avoid unnecessary investments. A firm neglecting the management of inventories will be jeopardizing its long run profitability and may fail ultimately. The reduction in excessive inventories carries a favorable impact on the company’s profitability.
The study starts with an introduction to inventory management, Company’s profile, Achievements and also the need for study, review of literature and objectives are set out for the study. Research methodology, Data analysis & Interpretation, Findings and Suggestions of the study follow.
One of the main areas of the project is the analysis part, where the data are analyzed & interpreted, to find out how the inventories were managed. Some of the tools used in inventory are regarding to:
Economic Order Quantity
Safety Stock
FSN Analysis
Trend Analysis and
Inventory Turnover Ratio.
A system which seeks to merge the activities associated with human resource management (HRM) and information technology (IT) into one common database through the use of enterprise resource planning (ERP) software. The goal of HRIS is to merge the different parts of human resources, including payroll, labor productivity, and benefit management into a less capital-intensive system than the mainframes used to manage activities in the past. Also called Human Resource Management Systems (HRMS)
In this presentation, we will identify and pay tribute to several of the people who .... been having grand ideas but has never seen them through to completed projects. ... But possess the technical ... the first node on the ARPANET, and the first computer ever on the Internet.
Here is an overview of the most important elements which make a difference at “Top Companies for Leaders.”
Strategy - There is a clear link between the strategy of the company and the strategy of leadership development. Successful organizations closely examine which talent programs are needed and which interventions are necessary to realize their company strategy.
Involvement - The responsibility of talent development lies at the top of the organization, and top management is also actively involved in the development of future management. The top managers themselves are frequently active as mentors, coaches or trainers, and frequently share their experiences and insights. Often the CEO plays a prominent, active role in training or action learning, i.e., using high potentials coupled with experienced leaders on essential questions. Also, CEO’s are involved in the programs by means of internal communication.
Talent Pipeline – Talent development is considered as a “mission-critical” company process. The best performing companies see the filling of the talent pipeline organization-wide as a necessity. They use sharp definitions of talent (high potentials), measurable criteria and a rigorous process for to determine who belongs in the talent pool and who does not. The outcomes of this are measured with KPIs.
Ongoing Processes – The Top Companies for Leaders have incorporated management development in their business cycles. The companies think about ongoing, recurring development processes instead of one-time initiatives. Talent management has a high priority in these organizations. Much attention is given to identifying high potentials, determination of specific career paths for these high potentials, coaching and their active contribution to training and development programs. High potentials are assisted in their development by means of training, e-learning, coaching and job rotation, as well as action learning. Thanks to this approach, leadership and company development evolve continuously together.
Behavior – In these Top Companies, leaders are significantly more aware of which behavior is expected of them. This also becomes apparent in all aspects of the organization: performance management (leaders are rewarded for the degree desired behaviors are demonstrated), promotion decisions (people are only promoted when the desired behaviors are shown), recruitment and selection (leadership behavior is an essential selection criterion) and communication from the top of the organization.
Critical Objective - High potential talent is considered as a strategic advantage and the development of this talent is and the development of a robust talent pipeline is considered a critical objective for the organization’s top management.
Leadership Programs – Only leadership programs with high added value for talent development are organized.
HR Policies & Employment Legislation
Employment Legislation and Standards
Employment standards are the minimum standards of employment for workplaces required by law. Employment standards cover many aspects of employment including, but not limited to, the following topic areas:
Minimum wage
Minimum daily pay
Meal breaks
Payment of earnings (paydays)
Hours of work
Overtime
Statutory holidays
Annual vacation
Vacation pay
Employment of people under 18
Leave from work
Resolving disputes
Termination
Maternity leave
Weekly day of rest
Deductions
Keeping records
Sexual harassment
Probationary periods
Parental leave
Definition of "employee"
Any HR policies that you develop around the above topics, and any others covered by employment standards, must not provide less than what is offered in the legislation and/ or regulations. The employment standards legislation offers minimum standards; employers are free to develop policies or practices that enhance (provide better standards) than what is allowed for in the law.
HR Policies & Employment Legislation
Human Rights Legislation
Human rights legislation is put in place to protect people from discrimination. It seeks to guarantee people equal treatment regardless of certain identified characteristics (called “prohibited grounds of discrimination”) that have attracted historical stereotyping or bias in relation to employment.
Employers, including nonprofit organizations, need to be aware of human rights legislation as it applies to all practices of employment, including:
Recruitment ads
Application forms
Interviews
Hiring
Dismissal/termination
Promotion
Demotion
Benefits
Wages
Workplace harassment
As organizations strive to create a better world through their missions, it is important that they also work at creating inclusive workplaces that are respectful and welcoming of diversity. Most of the sites below have excellent resources and tools that your organization can use in creating policies, in the hiring process, and in building a more diverse and respectful workforce. We encourage you to explore several of the websites below as they offer a wealth of information that can often be applied across provincial/territorial lines. Particular attention should be paid to the employer’s duty to accommodate an employee in the workplace.
2. PRICE ELASTICITY OF DEMAND
• The Law of Demand tells us that as the price of a
commodity falls, the quantity demanded
increases, and vice versa.
• But, it does not state by how much the quantity
demanded increases as a result of a certain fall in
the price or by how much the quantity demanded
decreases as a result of a rise in price.
• In other words, the law of demand tells us only
the direction of change, but not the rate at which
the change takes place.
3. PRICE ELASTICITY OF DEMAND Contd..
• Price Elasticity of Demand (or Elasticity of
Demand, as it is customarily known) tells us
the extent of such change.
• Elasticity of demand can be defined as “the
degree of responsiveness of quantity
demanded to a change in price”
4. PRICE ELASTICITY OF DEMAND Contd..
The price elasticity of demand may be measured by the following formula:
Proportionate change in the quantity demanded
ep = _______________________________________ OR
Proportionate change in price
Change in quantity demanded
________________________
Quantity demanded
= _______________________________________
Change in price
_____________
Price
5. PRICE ELASTICITY OF DEMAND Contd..
• (Q2 - Q1)
• _________
• Q1
• ep = _____________________
• (P2 - P1)
• ________
• P1
•
• where Q1 stands for quantity demanded before price change
• Q2 stands for quantity demanded after price change
• P1 stands for price charged before price change
• P2 stands for price charged after price change
•
6. PRICE ELASTICITY OF DEMAND Contd..
• Illustration
• Quantity demanded before price change (Q1) = 4,000
• Quantity demanded after price change (Q2) = 5,000
• Price charged before price change (P1) = 20
• Price charged after price change (P2) = 18
• Find the price elasticity of demand.
7. PRICE ELASTICITY OF DEMAND Contd..
(5,000 – 4,000)
____________
4,000
ep = ___________________ = - 2.5
(18 – 20)
________
20
• The price elasticity is negative emphasizing the inverse relationship
between price and demand.
• However, the minus sign is omitted from the final result as the inverse
relationship is implied.
8. PRICE ELASTICITY OF DEMAND Contd..
• When the change in price is more, the following method of calculation of
elasticity of demand would be more appropriate:
Q2 – Q1
__________
Q2+Q1 Q2 – Q1
_____ _______
2 Q2 + Q1
ep = __________________ = _____________
P2 – P1 P2 – P1
___________ ______
P2+P1 P2 + P1
_____
2
9. PRICE ELASTICITY OF DEMAND Contd..
• Applying the above formula, the result of the problem given above
will be as under:
1,000
_____
9,000 1/9
ep = __________ = ______ = - 2.11
-2 - 1/19
___
38
• A one per cent reduction in price will result in a 2.5% increase in the
quantity demanded according to the first formula and 2.1%
increase according to the second formula.
10. Types of Price Elasticity
• Perfectly elastic demand
In this case, no reduction in price is needed to cause an increase in
demand.
The firm can sell the quantity it wants at the prevailing price but
none at all at even a slightly higher price.
• Perfectly inelastic demand
In this case, a change in price, howsoever large, causes no change in
quantity demanded.
11. Types of Price Elasticity Contd….
• Demand with unity elasticity
In this case, a given proportionate change in price causes an equal
proportionate change in the quantity demanded.
• Relatively elastic demand
In this case, a reduction in price leads to more than proportionate change
in demand.
• Relatively inelastic demand
In this case, a decline in price leads to less than proportionate increase in
demand.
13. Nature of the commodity
• The demand for necessities is generally
inelastic because the consumption of a
necessary article does not change much with
a change in price. Example: Salt.
• The demand for luxuries changes much due to
a price change and is therefore elastic.
Example: silk saree.
14. Extent of use
• A commodity having a variety of uses has a
comparatively elastic demand. Example – Steel.
Steel can be used for many purposes.
• A slight fall in steel price will bring forth demand
from many quarters and hence demand is elastic.
• A commodity having a limited use will have a
comparatively inelastic demand.
15. Range of substitutes
• A commodity having a number of substitutes
has relatively elastic demand because if its
price rises, its consumption can be curtailed in
favor of the substitutes.
• For example, if city bus fare rises, people will
use electric train.
16. Income level
• People with high incomes are less affected by
price changes than people with low incomes.
• A rich man will not curtail consumption of
fruits and or milk even if their price rises
significantly. But, poor man will curtail the
extent of consumption.
• Hence, demand for fruits and milk is inelastic
for the rich but elastic for the poor.
17. Proportion of income spent on the
commodity
• Where an individual spends only a small part
of his income on the commodity, the price
change does not materially affect his demand
for the commodity. e.g. salt, match box, etc.
and the demand is inelastic .
18. Urgency of demand
• The urgency of demand tends to cause
inelastic demand. e.g. cigarette, liquor, etc.
19. Durability of a commodity
• The more durable and repairable a
commodity, the higher is its elasticity of
demand. e.g. shoes.
20. Purchase frequency of demand
• If the frequency of purchase of a product is
very high, its demand is likely to be more price
elastic than in the case of a product which is
purchased less often.
21. CROSS ELASTICITY OF DEMAND
• Cross elasticity of demand may be defined as ‘the
proportionate change in the quantity demanded
of a particular commodity in response to a
change in the price of another related
commodity’.
• The effect of a change in the prices of related
goods upon the demand for a particular
commodity may be determined by measuring the
‘cross elasticity of demand’.
22. CROSS ELASTICITY OF DEMAND Contd.
• Let u suppose, the price of one commodity, say Z is the
independent variable whereas the quantity of another commodity,
say X, is the dependent variable. The cross elasticity of demand can
be measured by the following formula:
Proportionate change in the quantity purchased of X
ec = __________________________________________
Proportionate change in the price charged for Z
• If cross elasticity is positive, the goods are said to be substitutes; if
negative, the goods are complements.
23. INCOME ELASTICITY OF DEMAND Contd.
• Income elasticity of demand may be defined
as the degree of responsiveness of quantities
demanded to a given change in income.
• Income elasticity of demand can be measured
by the following formula:
24. INCOME ELASTICITY OF DEMAND
Contd….
Proportionate change in quantities demanded
ey = ______________________________________ or
Proportionate change in income
Q2 – Q1
_______
Q1
= ______________________
Y2 – Y1
______
Y1
where Q1 stands for quantities demanded before the change in income
Q2 stands for quantities demanded after the change in income
Y1 stands for the income before change
Y2 stands for the income after change
25. INCOME ELASTICITY OF DEMAND
Contd….
• Illustration:
• Suppose a consumer, when his income is
Rs.10,000, purchases 10 Kgs of sugar. If his
income goes up to Rs.11,000, he is prepared
to purchase 12 Kgs. of sugar.
Find out the income elasticity of demand.
26. INCOME ELASTICITY OF DEMAND
Contd….
Q2 – Q1 12 - 10
_______ ______
Q1 10
ey = ________________ = ______________
Y2 – Y1 11,000 – 10,000
______ _____________
Y1 10,000
2/10
= ___________ = 2
1,000/10,000
The demand for sugar is quite elastic.
27. Types of income elasticity
• Zero income elasticity
A change in income will have no effect on the quantity
demanded. e.g. Salt.
• Negative income elasticity
An increase in income may lead to a reduction in the
quantities demanded. Such goods are called inferior goods.
e.g. An increase in income might lead to shift is demand
from beedis to cigarettes.
28. Types of income elasticity Contd…
• Positive income elasticity
An increase in income may lead to an increase
in the quantity demanded. Such goods are
called superior goods.
• Positive income elasticity can be of three
types
29. Types of income elasticity Contd…
• Unity elasticity
The elasticity is unity when an increase in income leads to a proportionate
change in the quantity demanded.
• More than unity elasticity
The elasticity is more than unity when an increase in income leads to a
more than proportionate change in quantity demanded. Articles of luxury
fall in this category.
• Less than unity elasticity
Elasticity is less than unity when the increase in income leads to a less
than proportionate change in the quantity demanded. Articles of
necessities characterize this category. e.g. Wheat and rice.
30. PROMOTIONAL ELASTICITY OF DEMAND
• The expansion of demand by means of
advertisement and other promotional efforts
may be measured by advertising elasticity of
demand (also called promotional elasticity).
• The promotional elasticity measures the
responsiveness of demand to changes in
advertising or other promotional expenses.
31. PROMOTIONAL ELASTICITY OF
DEMAND Contd…….
• The formula for measurement of Advertising
elasticity of demand is given below:
Proportionate change in sales
ea = ______________________________
Proportionate change in
advertisement expenditure
32. FACTORS DETERMINING ADVERTISING ELASTICITY OF DEMAND
• Type of commodity
Advertising elasticity will tend to be higher for
luxuries than for necessities; also higher for new
products than for old ones.
• Market share
The larger the firm’s market share, the lower the
advertising elasticity of demand and vice versa.
33. FACTORS DETERMINING ADVERTISING
ELASTICITY OF DEMAND Contd…..
• Rivals’ reactions
If rivals react by increasing their promotional spending,
the expenditure will tend to cancel each other out,
reducing advertising elasticity of demand.
• State of economy
If economic conditions are good and households have a
high degree of discretionary income, they are more
likely to respond to advertising.