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OBJECTIVES OF SALES PROMOTION

Sales promotion is a tool used to achieve most of the five major promotional objectives discussed
in the Promotion Decisions tutorial:
Building Product Awareness Several sales promotion techniques are highly effective in exposing
customers to products for the first time and can serve as key promotional components in the
early stages of new product introduction. Additionally, as part of the effort to build product
awareness, several sales promotion techniques possess the added advantage of capturing
customer information at the time of exposure to the promotion. In this way sales promotion can
act as an effective customer information gathering tool (i.e., sales lead generation), which can
then be used as part of follow-up marketing efforts.
Creating Interest Marketers find that sales promotions are very effective in creating interest in a
product. In fact, creating interest is often considered the most important use of sales promotion.
In the retail industry an appealing sales promotions can significantly increase customer traffic to
retail outlets. Internet marketers can use similar approaches to bolster the number of website
visitors. Another important way to create interest is to move customers to experience a product.
Several sales promotion techniques offer the opportunity for customers to try products for free or
at low cost.
Providing Information Generally sales promotion techniques are designed to move customers to
some action and are rarely simply informational in nature. However, some sales promotions do
offer customers access to product information. For instance, a promotion may allow customers to
try a fee-based online service for free for several days. This free access may include receiving
product information via email.
Stimulating Demand Next to building initial product awareness, the most important use of sales
promotion is to build demand by convincing customers to make a purchase. Special promotions,
especially those that lower the cost of ownership to the customer (e.g., price reduction), can be
employed to stimulate sales.
Reinforcing the Brand Once customers have made a purchase sales promotion can be used to
both encourage additional purchasing and also as a reward for purchase loyalty (see loyalty
programs below). Many companies, including airlines and retail stores, reward good or
preferred customers with special promotions, such as email special deals and surprise price
reductions at the cash register.
PROMOTIONS refer to the entire set of activities, which communicate the product, brand or
service to the user. The idea is to make people aware, attract and induce to buy the product, in
preference over others.
Description: There are several types of promotions. Above the line promotions include
advertising, press releases, consumer promotions (schemes, discounts, contests), while below
the line include trade discounts, freebies, incentive trips, awards and so on. Sales promotion is a
part of the overall promotion effort.
SALES PROMOTIONS are the set of marketing activities undertaken to boost sales of the
product or service.
Description: There are two basic types of sales promotions: trade and consumer sales
promotions. The schemes, discounts, freebies, commissions and incentives given to the trade

(retailers, wholesalers, distributors, C&Fs) to stock more, push more and hence sell more of a
product come under trade promotion. These are aimed at enticing the trade to stock up more
and hence reduce stock-outs, increase share of shelf space and drive sales through the channels.
However, trade schemes get limited by the cost incurred by the company as well as the
limitations of the trade in India to stock up free goods. Incentives can be overseas trips and gifts.
A typical trade scheme on soaps would be buy a case of 12 soaps, get 1 or 2 free - or a 8%
discount scheme (1/12=8%). Such schemes are common in FMCG and pharma industries.
But sales promotion activity aimed at the final consumer are called consumer schemes. These
are used to create a pull for the product and are advertised in public media to attract attention.
Maximum schemes are floated in festival times, like Diwali or Christmas. Examples are buy soap,
get diamond free; buy biscuits, collect runs; buy TV and get some discount or a free item with it
and so on. Consumer schemes become very prominent in the 'maturity or decline' stages of a
product life cycle, where companies vie to sell their own wares against severe competition.
The impact of sales promotions: Sales promotions typically increase the level of sales for the
duration they are floated. Usually, as soon as the schemes end, the sales fall, but hopefully,
settle at a higher level than they were before the sales promotion started. For the company, it
can be a means to gain market share, though an expensive way.
For consumers, these can offer great value for money. But sustained sales promotions can
seriously damage a brand and its sales, as consumers wait specifically for the sales promotion to
buy and not otherwise. Therefore, sales promotions are to be used as a tactical measure as part
of an overall plan, and not as an end itself.
In the big book of PRODUCT FAILURES, there are a few examples that stand out as so
colossal you have to wonder what the company was thinking. Still, others seem to have just been
a case of bad timing, bad marketing and bad luck. Below we'll look at six reasons why products
fail, and the products that prove it.
Timing - In some cases, a luxury product that's been in planning stages for years is set to launch
just as a major recession is starting. This was the case with the Ford Edsel. The Edsel has
become synonymous with failure, and it is well known as a marketing catastrophe, but the 1958
recession certainly played a large part in its undoing.
Sometimes a product is just "ahead of its time," and the market for it just doesn't exist, like the
precursor to popular PDA devices, the Apple Newton MessagePad. This kinda-clunky PDA had a
few shortcomings - most famously, its inability to live up to the claim of understanding
handwriting - but more than that was its release at a time when paying $700US for a PDA
seemed absurd.
Today, if there was a PDA that came out and revolutionized the industry, $700 would seem like a
bargain. (The time will come when you'll be the one explaining these obsolete technologies.
Learn more in Technology Your Kids (Or Grandkids) Will Laugh At.)
Not Living Up To The Hype - There's nothing worse than when the public feels like they're
being tricked. This happens when something has hyped-up marketing, but the product is pretty
ho-hum. It's another reason why the Edsel failed, as Ford had positioned it as a cutting-edge new
automobile, but the public saw it as more of the same for a higher cost. This poor positioning
cost Ford $350 million, a huge sum in 1959.

McDonald's also fell prey to this with the release of the Arch Deluxe menu in the '90s. No one
was fooled when Mickey-D's claimed to have moved into the fine dining racket just by slapping a
tomato on top of a burger. McDonald's reportedly spent $100 million on advertising the failed
line. For another example, don't forget the Windows Vista saga.
Prohibitively Strong Branding - A strong brand can be a blessing and a curse. Consumers
trusted Colgate for toothpaste, but it didn't make sense when that name was put on the Colgate
Kitchen Entrees. Connecting the taste of food and toothpaste was off-putting for the consumer.
With the McDonald's Arch Deluxe fiasco, McDonald's name was too strong as a value burger joint
for anyone to take the "dining for adults" line seriously.
Fixing What Ain't Broken - Companies that are already successful sometimes try to improve
themselves but end up scaring off their already loyal consumers. This is best illustrated in what is
known as one of the worst product failures in history: "New Coke." In 1985, Coca-Cola was doing
fairly well, but was worried about losing more market share to Pepsi. There was a $4 million
market research project stating that Coke drinkers would prefer the new taste, but when it came
down to it, they still wanted the original.
Crystal Pepsi is another good example. Making a clear cola did not entice non-cola drinkers - it
just confused Pepsi's branding.
Cross Contamination - Mixing Two Successful Products Into One Big Failure - It seems
counterintuitive that combining two successful products or companies can somehow bring about
disaster, but it happens. Just think of the combo of peanut butter and jam in one bottle or
Kellogg's disastrous milk-with-cereal packaging campaign Cereal Mates.
Another example is the recently failed merger: AOL Time Warner. Though the AOL Time Warner
debacle had a lot to do with management, timing and meshing of company culture, it goes to
show that taking two successful things and combining them can lead to unmitigated disaster.

Not Making The Right Business Partners - Sony's Betamax and Toshiba's HD DVD are perfect
examples of this. Betamax was widely regarded as being superior to VHS, but its higher cost
meant it wasn't picked up by the big distributors, which led to its downfall.
HD DVD was like the VHS of the DVD battle, because it cost less than Blu-Ray and held less
information, except that HD DVD lost. Certain studios (Fox, Sony, Walt Disney), Sony's Playstation
3 and retailers like Wal-Mart and Best Buy all sided with Blu-Ray, leaving Toshiba's HD DVD at a
disadvantage because it had less available titles and sales outlets. Like Betamax, this caused a
chain reaction where fewer films were released for the less-available format, and Toshiba
eventually stopped producing HD DVD players in mid-2008.
Toshiba's loss from HD DVD is thought to be near $1 billion. (As technology advances, some
industries become obsolete. Follow the trends that will affect jobs, investments and your
purchases in 4 Industry-Changing Tech Trends.)
FACTORS THAT CORRELATE WITH PRODUCT SUCCESS
In New Products, Key Factors in Success (1990)[1] Robert Cooper and Elko Kleinschmidt
(inventors of the now widely used Stage-Gate product development methodology) analyse over

two hundred product launches, and list the key factors they find to correlate statistically with
product success.
Although refined through numerous future studies by Cooper and others, opinion on success
factors remain broadly the same today. Again, none of these will make you jump out of your chair
in surprise:
A superior product that delivers benefit to its users
Products which deliver real and unique benefits to customers are far more likely to succeed in the
marketplace. Perhaps at first this seems glaringly obvious. It should actually come as a relief.
Quality and differentiation are indeed vital, in fact they are the single biggest determinant of
success products in the top 20% by this criterion have a success rate of 98%. Those in the
bottom 20% have a success rate of just 18.4%.
How is this judged? The criteria are relatively simple:
Does the product offer unique features not available on competitive products?
Does the product meet customer needs better than competitive products?
Does the product have a higher relative product quality?
Does the product solve a problem the customer had with a competitive product?
Does the product reduce the customers total costs (creating value)?
Is the product the first of its kind in the market?
The implication should be simple (albeit not easily done): learn about the customer, understand
and empathise with their world. Be creative in solutions, use a customer feedback cycle to refine
ideas and make something people want.
Planning before developing
How thoroughly and clearly have you understood the product before we begin development?
Weve often seen companies leap straight to development before a proper understanding of the
product has been created.
By deferring execution in favour of better definition (of the market and technical and business
characteristics of the product) we significantly increase the odds of success.
Cooper emphasises that this definition must be based on solid evidence, not speculation (p12):
In too many projects, we witnessed a product idea that moved directly into development with
very little in the way of homework to define the product and justify the project. More often than
not, the results were negative. (p16)

Even Coopers word of choice, homework is interesting in this context. Why homework?
Presumably because it is work that people avoid or put off, rather than something which people
need to do individually or at home.

All too often this work is indeed seen as an optional luxury which gets in the way of the real
work. Yet, failure rates rocket up to 69% when this work isnt done against 2532% when it is.
Those of us who have worked in strategy and planning will not be surprised by this finding,
although it is definitely reassuring to see that common sense is reflected by proper statistical
analysis. When projects start before the real thinking and evaluation is done, whether or not they
have been given a detailed list of requirements, features and functions, they will tend to fail, and
to do so at a significantly higher rate than other projects.
A later Cooper study goes further and suggests that having a well-defined product is a vital
determinant of timely product delivery, a key secondary factor.
Technological synergy and quality
Technological synergy is a measure of how far from their current technology a firm must stray to
build the product.
The further away they stray, the less likely the project will be successful. Again the spread is
broad: those in the top 20% had an 80% chance of success, those in the bottom 20% had a 29%
chance.
Beyond synergy itself, although clearly influenced by it, is the quality of technological activities
still a major challenge for many businesses and one which significantly impacts success.
Marketing synergy and quality
How well is the product matched with the existing marketing machinery of the business? Again a
poor match (the bottom 20% experienced a failure rate of 70%).
Market attractiveness
How big is the market and in what direction is it travelling? How important is the product to the
market? If the product is a first of its kind, will consumers even get it?
Of course, very few products will get top marks in all of these areas.
Where one or more of these factors is likely to be an issue for any reason for example, because
a company needs to work outside its technological comfort zone it will become even more
important that the other areas rank high.
How might we relate this analysis to the distinction between revolutionary and normal
innovation?
The key here is that at least two of the indicators of success market and technical synergy and
quality are likely to be low.
By definition, a revolutionary product will be outside of the core experience that a business has
in at least one of these areas.
Taking the synergy factors out of the equation for the time being and not thinking for the
moment about process and structure, we can now see that in fact there are only two things that
matter.

First, you must create a great product with a very clearly defined and large consumer market
where the product resolves a real consumer issue and offers superb differentiation over its
competitors.
Second, the product must be well-defined across consumer, technology and business prior to full
execution commencing.
So, for revolutionary products, to overcome an inherent weakness in technology and synergy, a
new approach is needed that learns through active engagement and experimenting both about
what will work technically and about how the market will respond to the product.
POPULAR SALES PROMOTION TOOLS
Free Samples - It often takes more than advertising to break consumers brand loyalty,
especially if they have been using a product or shopping at a particular store for years. One
reason is the worry that trying something new will result in a waste of money if they dont like
the new product. Offering customers a chance to try your product or service risk-free is a
common method of breaking brand loyalty and converting competitors customers into your
customers.
Rebates - Instead of offering consumers a discount on the price theyll pay for your product,
offer a rebate, which is a monetary amount consumers receive later, generally in the form of a
check you send via mail. This allows you to gather customer information and create a mailing
list, a benefit you can't get simply through a point-of-sale discount.
Buy One, Get On Free - Consumers love a good deal, and they love freebies even more.
Offering a free product if the consumer purchases one is a time-honored sales promotion that
works for several reasons. If your margins are high enough, you might be able to cover your
costs for both products at your selling price for one. This type of promotion allows you to double
the amount of time the consumer uses your product, potentially leading to a better experience
and an affinity for your product. This strategy also can help you decrease your dependence on
costly, free-sample giveaways.
Point-of-Purchase Displays - To stimulate impulse buys or to remind regular customers not to
leave the store without a specific product, marketers have used in-store displays for generations.
These are signs, racks or other physical promotional pieces that stand out from their
surroundings while touting a particular product or offer.
Loss Leaders and Discounts - As with free samples or buy-one-get-one-free promotions, loss
leaders make products or services available below the sellers cost. Some large retail chains use
loss leaders to lure consumers into their stores, hoping that they will buy other products while
they are in the store. Supermarkets are well known for marking down a staple, such as milk or
bread, to entice customers into the store, marking up the prices of other staples such as eggs or
orange juice to even out the promotion financially. Some restaurants offer entre or sandwiches
as loss leaders because they make enough profits on additional sales of soups, salads, fries,
drinks and desserts to turn a profit. Loss leaders often have a dual goal of generating a profit and
getting consumers into a store to stimulate future sales. Discounts are markdowns on products
or services that help reduce slow-moving product or temporarily spike sales.
Types of Sales Promotion Strategies
Push Marketing

In Push Marketing Strategy the Manufacturer or Business organizations endeavor to take there
manufactured products to the customers. As the word Push suggests the Businesses attempt to
PUSH the goods or products towards the customers.
In Push Sales Strategy the manufacture push the products from supply chain to the customers.
Incentives are given to the middle men to increase the motivation so that they recommend or
convince the final customer to buy the product. Push marketing incentives involves:
Sales premiums, Discount to Whole sellers, Buy Back Guaranty, Stock on Credit, Bonus to Sale
Team, Referral System, Allowances, Free trials, Contests, Specialty items, Discounts, Displays
The strategy not only benefits the small retailers but also ensure productive business for big
players in the market. The companies; in order to increase demand for a product in the consumer
market use Sales team and Trade promotions. The companies convince the Intermediate trade
channels and distribution channels to push the product to the final consumer through promotions
and personal selling. The companies promote the product to the middle men which then
promotes the product to the ultimate customer.
The PUSH sales promotion strategy can be divided into bits and pieces for a better
understanding.
Step 1: the manufacturer promotes the product to whole sellers
Step 2: the whole-seller promotes the product to retailers
Step 3: the retailer promotes the product to the end consumers
The objective of Sale Push Strategy is to convince the retailers and wholesalers to take a brand,
promote and display that brand. In simple words Push the Brand to the Final targeted Consumers
by giving incentives to the retailers and wholesalers is Push Marketing Strategy.
Pull Marketing
In Push marketing the company focuses its promotional efforts on the end consumer in order to
increase the market demand for the product. As the word Pull suggests the Businesses attempt
to PULL the goods or products from the manufacturer. A Pull Sales Strategy requires high
investment funds for advertising. The Marketer Spend a huge amount on promotion activities to
create Brand Awareness.
The Pull marketing Strategy is best when the distributors are not ready to promote or
recommend a product. The Company advertises the products to attract large number of
consumers and bring the consumers to the sale point of the products i. e. pulling the Consumers
from the Marketing Channels.
The objective of Pull Sale Strategy is to convince the customer to try out the new product, attract
the customers towards your product, forcing the consumers to reject the competing products,
creating customer loyalty and building strong customer relationships. The consumer will contact
the retailers for the product, the retailer then contact the whole sellers and whole sellers then
contact the Manufacturers for the products. Pull marketing incentives involves:
Free Samples, Sales Coupons, Refunds, Rebates, Sale Premiums, Advertising Specialties, Loyalty
Programs for Customers, Patronage Rewards for Consumers, Contests, Sweepstakes, Point of
purchase POP displays

Attracting the Customers and Consumers and creating consumer Interest in the product to
increase and generate market demand is the Pull Marketing Strategy. With increased product
demand, the manufacturers will pull from the supply chain, making retailers to contact the
suppliers and distributors, and the suppliers and distributors will contact the companies for the
product.
Combination of Pull and Push:
The Manufacturers now day use both Pull and push simultaneously in order to create increased
market demand, to capture large market share, to beat the market competition and to boost
sales.
Combination of the two systems: Offering customers coupons, Free gifts or free trails, Customer
loyalty incentives, Customer Referral Incentives to drive customer traffic
CASE STUDY
Coke Auction
Coke auction first took place in Aug-Dec 2000, in partnership with QXL, with the set up of
www.cokeauction.co.uk
It involved consumers (primarily teen targeted) bidding for items using credits. instead of credit
cards
Consumers got 500 free credits just by registering at the website and could accumulate further
credits by buying promotional cans of Coke and sending the ring-pulls and bottle labels from the
same to Coca-Cola GB. Coke tied up with brands like Nike and Sony to offer auction items
ranging from CDs and games software to WAP phones and MP3 players. Consumers could also
bid for Makeovers or tickets to England World Cup qualifiers.
The promotional was very successful with more than 100,000 registrations, more than 800,000
user impressions and the average user session lasting 12 minutes per visit. The campaigns
banner ad alone generated close to 10,000 participants
One consumer collected 16,800 ring-pulls and the highest number of items won by one individual
was 124.
The promotion positioned Coke as a progressive, exciting and relevant teenage brand and got
Coke the Revolution Award for Digital Economy in Great Britain. Definitely a successful Sales
promotion.
Case Study- Cadbury's Creme Eggs Treasure Hunt
As Cadburys Creme Eggs leave the factory in a van, in their excitement they jump around and
accidentally knock open the van door, falling out onto the grassy verge. They land on their heads
and suffer from amnesia, then wander off and forget that their destiny is to release their goo.
Creme Eggs are to be found roaming the internet on sites including MTV, Yahoo and Youtube.
Consumers are challenged to locate them and enter a special code into the Creme Egg website
for a chance to win a range of prizes including Creme Egg key rings, spoons, beach balls, Red
Letter Day experiences and a trip to New York.

This year the campaign had its own website and moved to the internet. It also extended to a quiz
on Facebook Goo am I? in which the eggs, still suffering from amnesia, post cryptic clues and
ask the 300,000-plus fans to help identify them.
The site http://www.cremeegg.co.uk also had Goo games for users.
When the campaign was launched in 2008, it garnered 82 ,million ad impressions, reached more
than 18 million users and drove 740,000 clicks, with an average click through rate of 0.99%
(FMCG average being 0.53%) The overall campaign recognition was 54% among adults. The
campaign received the Grand Prix at the AOL/Media Week Online Planning Awards.
Case Study - Adidas: Bonded by Blood
In 2006, Adidas launched a marketing campaign to bring fans closer to New Zealands hugely
popular All Blacks Rugby Team- a little too close!
All the 40 team members donated their blood, which was thereby mixed into the in used to make
a poster of the team. The poster was given to fans who bought a $70 All Blacks jersey made by
Adidas. Each of the 8000 posters came with a certificate of authenticity.
The promotion was promoted through advertising on radio, outdoor and online media.
The objective of the campaign was to create an emotional bond between the All Blacks Rugby
squad and their fans and grow sales of All Blacks apparel by 15%. It ended up with a total sell out
of all posters and a 24% increase in sales.
The campaign won the Grand Prix at the Cannes Lion Awards 2007.

THE HISTORICAL BACKGROUND OF HUMAN RESOURCE MANAGEMENT


Personnel administration, which emerged as a clearly defined field by the 1920s (at least in the
US), was largely concerned the technical aspects of hiring, evaluating, training, and
compensating employees and was very much of "staff" function in most organizations. The field
did not normally focus on the relationship of disparate employment practices on overall
organizational performance or on the systematic relationships among such practices. The field
also lacked a unifying paradigm.
HRM developed in response to the substantial increase in competitive pressures American
business organizations began experiencing by the late 1970s as a result of such factors as
globalization, deregulation, and rapid technological change. These pressures gave rise to an
enhanced concern on the part of firms to engage in strategic planning--a process of anticipating
future changes in the environment conditions (the nature as well as level of the market) and
aligning the various components of the organization in such a way as to promote organizational
effectiveness.
Human resource management (HRM), also called personnel management, consists of all the
activities undertaken by an enterprise to ensure the effective utilization of employees toward the
attainment of individual, group, and organizational goals.
An organization's HRM function focuses on the people side of management. It consists of
practices that help the organization to deal effectively with its people during the various phases
of the employment cycle, including pre-hire, staffing, and post-hire.The pre-hire phase involves
planning practices. The organization must decide what types of job openings will exist in the
upcoming period and determine the necessary qualifications for performing these jobs. During
the hire phase, the organization selects its employees. Selection practices include recruiting
applicants, assessing their qualifications, and ultimately selecting those who are deemed to be
the most qualified.
Facts
It's believed that the first personnel management department began at the National Cash
Register Co. in the early 1900s, according to an HR Magazine article. After several strikes and
employee lockouts, NCR leader John H. Patterson organized a personnel department to handle
grievances, discharges, and safety, as well as training for supervisors on new laws and practices
In the post-hire phase, the organization develops HRM practices for effectively managing people
once they have "come through the door." These practices are designed to maximize the
performance and satisfaction levels of employees by providing them with the necessary
knowledge and skills to perform their jobs and by creating conditions that will energize, direct,
and facilitate employees' efforts toward meeting the organization's objectives.
The Historical Background Of Human Resource Management
Human resource management has changed in name various times throughout history. The name
change was mainly due to the change in social and economic activities throughout history.
Industrial Welfare
Industrial welfare was the first form of human resource management (HRM). In 1833 the factories
act stated that there should be male factory inspectors. In 1878 legislation was passed to

regulate the hours of work for children and women by having a 60 hour week. During this time
trade unions started to be formed. In 1868 the 1st trade union conference was held. This was the
start of collective bargaining. In 1913 the number of industrial welfare workers had grown so a
conference organized by Seebohm Rowntree was held. The welfare workers association was
formed later changed to Chartered Institute of Personnel and Development.
Recruitment and Selection
It all started when Mary Wood was asked to start engaging girls during the 1st world war. In the
1st world war personnel development increased due to government initiatives to encourage the
best use of people. In 1916 it became compulsory to have a welfare worker in explosive factories
and was encouraged in munitions factories. A lot of work was done in this field by the army
forces. The armed forces focused on how to test abilities and IQ along with other research in
human factors at work. In 1921 the national institute of psychologists established and published
results of studies on selection tests, interviewing techniques and training methods.
Acquisition of other Personnel Activities
During the 2nd world war the focus was on recruitment and selection and later on training;
improving morale and motivation; discipline; health and safety; joint consultation and wage
policies. This meant that a personnel department had to be established with trained staff.
Industrial Relations
Consultation between management and the workforce spread during the war. This meant that
personnel departments became responsible for its organization and administration. Health and
safety and the need for specialists became the focus. The need for specialists to deal with
industrial relations was recognized so that the personnel manager became as spokesman for the
organization when discussions where held with trade unions/shop stewards. In the 1970's
industrial relations was very important. The heated climate during this period reinforced the
importance of a specialist role in industrial relations negotiation. The personnel manager had the
authority to negotiate deals about pay and other collective issues.
Legislation
In the 1970's employment legislation increased and the personnel function took the role of the
specialist advisor ensuring that managers do not violate the law and that cases did not end up in
industrial tribunals.
Flexibility and Diversity
In the 1990's a major trend emerged where employers were seeking increasing flexible
arrangements in the hours worked by employees due to an increase in number of part-time and
temporary contracts and the invention of distance working. The workforce and patterns of work
are becoming diverse in which traditional recruitment practices are useless. In the year 2000,
growth in the use of internet meant a move to a 24/7 society. This created new jobs in ecommerce while jobs were lost in traditional areas like shops. This meant an increased potential
for employees to work from home. Organizations need to think strategically about the issues
these developments raise. HRM managers role will change as changes occur.
Information Technology Some systems where IT helps HRM are: Systems for e-recruitment; Online short-listing of applicants; Developing training strategies on-line; Psychometric training;

Payroll systems; Employment data; Recruitment administration; References; Pre-employment


checks. IT helps HR managers offload routine tasks which will give them more time in solving
complex tasks. IT also ensures that a greater amount of information is available to make
decisions.

DIFFERENCE BETWEEN PERSONNEL MANAGEMENT AND HUMAN RESOURCE


MANAGEMENT
Human resource management is the new version of personnel management. There is no any
watertight difference between human resource management and personnel management.
However, there are some differences in the following matters.
1. Personnel management is a traditional approach of managing people in the organization.
Human resource management is a modern approach of managing people and their strengths in
the organization.
2. Personnel management focuses on personnel administration, employee welfare and labor
relation. Human resource management focuses on acquisition, development, motivation and
maintenance of human resources in the organization.
3. Personnel management assumes people as a input for achieving desired output. Human
resource management assumes people as an important and valuable resource for achieving
desired output.
4. Under personnel management, personnel function is undertaken for employee's satisfaction.
Under human resource management, administrative function is undertaken for goal
achievement.
5. Under personnel management, job design is done on the basis of division of labor. Under
human resource management, job design function is done on the basis of group work/team work.
6. Under personnel management, employees are provided with less training and development
opportunities. Under human resource management, employees are provided with more training
and development opportunities.
7. In personnel management, decisions are made by the top management as per the rules and
regulation of the organization. In human resource management, decisions are made collectively
after considering employee's participation, authority, decentralization, competitive environment
etc.
8. Personnel management focuses on increased production and satisfied employees. Human
resource management focuses on effectiveness, culture, productivity and employee's
participation.
9. Personnel management is concerned with personnel manager. Human resource management
is concerned with all level of managers from top to bottom.

10. Personnel management is a routine function. Human resource management is a strategic


function
HR MANAGER
Job description
Human resource (HR) managers are involved with recruitment, training, career development,
compensation and benefits, employee relations, industrial relations, employment law,
compliance, disciplinary and grievance issues, redundancies etc. The job involves keeping up to
date with areas such as employment law, which change often.
Generalist HR roles are usually found in small and medium sized companies, where the HR
manager will deal with the whole range of HR activities. In large multinationals you will often find
specialists, for example in learning and development, recruitment or employee relations.
Work activities
Developing HR planning strategies with line managers by considering immediate and long-term
staff requirements
Recruiting staff by preparing job descriptions and job adverts; deciding on how best to advertise
Shortlisting applicants for interview using a variety of selection techniques including
psychometric testing Interviewing shortlisted candidates
Advising on pay and other issues, including promotion and benefits; administer payroll and
maintain staff records
Interpreting and advising on employment legislation; develop and implement policies on a
variety of workplace issues eg disciplinary procedures, absence management, working
conditions, performance management and equal opportunities
Listening to grievances and implementing disciplinary procedures
Analysing training needs in conjunction with line managers; planning and delivering training,
including staff inductions.
Work conditions
Travel: not a normal part of the working day but attendance at off-site meetings possible.
Working hours: mainly office hours, with occasional extra hours. Location: opportunities exist
mainly in towns or cities throughout the country.
Opportunities for self-employment: unlikely (unless a specialist in training).
Typical employers
Any large organisation including banks, insurance companies, hospital, universities, institutes of
technology, etc.
Career development

Progression will very much depend on the size of the organisation. Relocation may be necessary.
It is possible to move from generalist HR roles into specialist areas such as industrial relations,
employment law, organisational development or training and development.
Salaries
Salary levels for HR officers vary considerably across sector. Salaries in large private companies
tend to be higher than those for workers in local authorities. Republic of Ireland: Graduate
entrants can start at 25,000. This can rise to 40,000 per year with experience. Senior
personnel officers, especially in large organisations, can earn considerably more: some in excess
of 100,000. Dublin-based jobs tend to pay higher. Northern Ireland: Graduate entrants can
expect 12,00015,000 with HR Directors earning anything from 50,00080,000.
Entry requirements
There are two main entry routes.
Graduate training programmes: while some HR graduate training programmes are available, they
are rare in Ireland.
Entry-level jobs: graduates can gain an entry-level role as a HR administrator, where they will
have responsibility for matters such as updating files, contracts, scheduling interviews, preparing
statistics etc.

Specific degree subjects required


While a HR degree is not necessary it is an advantage, as is the Chartered Institute of Personnel
& Development (CIPD) qualification. A list of CIPD accredited programmes in Ireland is available
on the CIPD website. Some degree courses (usually business studies) and postgraduate courses
may provide exemption from CIPD Professional Qualifications.
Other relevant degree subjects
Business
Economics
Law
Management
Psychology
Public administration
Social studies.
Postgraduate study

A pre-entry postgraduate qualification is not a requirement but a range of courses at


postgraduate certificate, diploma and masters level are available, some of which combine
business studies with HR.
Specific entry requirements
Although membership of the CIPD is not an absolute requirement for entry into this career,
employers generally look on membership as an asset.
Training
A few graduate training schemes are available.
Tips for applications
Develop appropriate skills while at college: get involved with student groups and organisations;
in particular take on positions of responsibility, whether in a voluntary or paid capacity.
Talk to staff working in HR, gain experience in a HR department and read relevant journals.
Skills and qualities
Good communication skills, Strong interpersonal skills, Business awareness and commercial
focus, Leadership and strong management skills, Technically competent, Strong interpersonal
skills, Ability to analyse, interpret and explain the legal framework regulating employment,
Influencing and negotiating skills, Personally credible, Integrity and approachability.