U

U18 OE 803 C Entrepreneurship Development

W13-L1-CDT28
Topic: Importance of financial
management
Mrs. N. Sree Laxmi Pavani
Assistant professor of CE
Department of CE
Kakatiya Institute of Technology and Science, Warangal, TS, India

ED 1
Unit-4 Course contents

Financial Management
➢ Introduction, Sources of finance-internal and external.
Human Resource Management
➢ Introduction,importance,selection,recruitment,training,place
ment,development,
Legal Issues in Entrepreneurship
➢ Mechanisms for resolving conflicts; Industrial laws Indian
Factories Act, Workmen Compensation Act;
➢ Intellectual Property Rights(IPR) patents, trademarks, and
copyrights

2
3
 Financial management
➢ Financial management refers to the diplomatic
planning, organizing, directing, and supervising
of financial undertakings in an organization.
➢ It also comprises applying management
principles to the financial resources of an
organization, while also playing a significant
part in economic or budgetary management.
➢ Financial Management refers to planning,
organizing, directing, and managing financial
activities, such as procurement and application
of funds for an organization. 4
 Financial management
• There are many options that everyone can
use for managing their finances
➢Manage them on your own.
➢Hire a full-time employee,
➢Hire a part-time accountant,
• A third party who deals with all finance
associated activities for you

5
Objectives of Financial
Management

6
 Objectives of Financial
Management
➢Maximizing profits by giving insights on,
for example, ascending costs of raw
materials that might trigger a hike in the
cost of goods sold.
➢To secure adequate returns to the
shareholders, which will depend upon the
earning capability, market value of the
share, expectations of the shareholders, etc.
7
 Objectives of Financial
Management
• Tracking liquidity and cash flow to assure the
organization has enough money on hand to meet
its requirements
• To assure best funds utilization. Once the funds
are bought, they should be used in the maximum
way at least cost.
• Developing financial premises based on the
organization’s current situation and forecasts that
assume a wide range of results based on market
conditions. 8
 Objectives of Financial Management
• To provide safety on investment, i.e., funds
should be invested in safe ventures so that
acceptable rate of return can be obtained.
• Dealing effectively with stakeholders, investors,
and the board of directors.
• Securing compliance with state, national, and
industry-specific laws.
• To design a sound capital structure-There
should be a fair composition of capital so that a
balance is maintained between debt and equity
capital.
9
 Functions of Financial Management
➢ Calculating the Required Capital
❖The financial manager has to calculate and
estimate the amount of funds an organization
requires. This depends upon the policies of the
firm regarding required expenses and profits.
❖The amount expected has to be determined in such
a way that the earning capability of the
organization increases.
❖The financial manager makes measurements of
funds needed for both short-term and long-term
10
 Functions of Financial Management
➢ Determining Capital Structure:
❖ Once the need for capital funds has been
decided, a decision respecting the kind and
proportion of various sources of funds has to be
taken.
❖ For this, the financial manager has to figure out
the proper mix of capital and debt and short-term
and long-term capital ratio.
❖ This is done to obtain the minimum cost of
capital and maximize shareholders’ wealth

11
 Functions of Financial Management
➢ Choice of Sources of Fund:
❖ Before the exact acquisition of funds, the finance
manager has to check the sources from where the
funds are to be collected.
❖ The management can raise finance from
different sources like equity investors, preference
shareholders, debenture- holders, banks and other
financial associations, public deposits, etc.

12
 Functions of Financial Management
➢ Investing the Capital:
❖ Every organization or business requires investing
money to raise more capital and earn regular
returns.
❖ Hence, the financial manager needs to invest the
organization’s funds in secure and effective
ventures.

13
 Functions of Financial Management
➢ procurement of Funds:
❖ The financial manager has to procure the funds
required for the organization. It might involve
consultation with creditors and financial
associations, issue of prospectus, etc.
❖ The procurement of funds is reliant not only on
the cost of raising funds but also on other aspects,
like the general market situations, decisions of
investors, government policy, etc.

14
 Functions of Financial Management

➢ Allocation of Profits:
❖ Once the organization has received a
decent amount of net profit, it is the
financial manager’s duty to allocate it
efficiently.
❖ This could require keeping a part of the
net profit for an emergency, innovation, or
expansion purposes, while another part of
the profit can provide rewards to the
shareholders. 15
 Functions of Financial Management
➢Management of Cash
❖This department is also responsible for taking care
of the organization’s money. Money is needed for
several purposes in the organization, such as
paying salaries and bills, managing stocks,
meeting liabilities, and the purchase of any
materials or machinery.
❖It also involves estimating the cash flows and
outflows to assure that there is neither shortage
nor surplus of cash with the organization.
16
 Functions of Financial Management
➢ Financial Control
❖ Not only does the financial managers have
to plan, organize, and get funds, but he also
has to manage and evaluate the firm’s
finances in the short-term and the long-term.
❖ This can be done using some
financial tools, such as financial
forecasting, ratio evaluation, risk control,
and profit and cost control.
17
Difference between Short Run and Long Run
Basis Short Run Long Run
Meaning Short Run Refers to a period in which Refers to a period in which output can be
output can be changed only variable changed by a changing all factors of
factors. Production.

Classification Factors are classified as variable and fixed All factors are variable in the long run.
factor in the short run
Price In the short run demand is more active in In the long run with demand and supply
determination price determination as supply cannot be play equal role in price determination as
increased immediately with increase in both can be increased.
demand.

18
 Advantages of Financial Management
1. Better Decision Making:
➢ Financial management promotes better decision making
it gathers and presents all financial information,
considering the organization.
➢ Easy availability of all information helps managers in
deciding efficiently based on facts and figures.

2. Transparency:
➢ Financial management provides transparency of all
information in the organization. It contains all
information regularly and made it available to all
business users.
➢ Better transparency helps in promoting proper
understanding within and outside the company and
avoids any complexity or errors 19
 Advantages of Financial Management
3. Finance Control:
➢ Dealing with the finance of an organization is one of the
crucial advantages of financial management. It conducts all
activities of the business to improve financial control.
➢ Finance managers assure that all activities of business go
under the estimated cost and should not go above the pre-set
budgets.
4. Maximization of Profit and Wealth:
➢ Financial management plans to raise the profit and wealth of
the organization and the shareholders. It focuses on earning
high profits by cutting down the cost of service and carefully
using all resources.
➢ The higher the profit, the higher would be the reward declared
by the organization for its shareholders. In this way, financial
management increases their wealth.
20
 Advantages of Financial Management
5.Avoids Debts:
➢Financial management helps to avoid and take any
extra debt by the company.
➢It focuses on the proper application of all funds and
aims to reduce the overall cost.
➢This leads to by passing any need for other funds
requirements by the company.

21
 Disadvantages
1.Cost Sufficient:
➢ Practicing Financial management is a cost sufficient
activity for any organization.
➢ For managing and controlling the cost, financial
management implies several financial control tools.
➢ These tools are very costly and also time-consuming.
2.Time Consuming:
➢ The making of the financial strategy for an organization
is not the task that can be done by a single department.
➢ The performances and purposes of the entire
organization need to be aligned in order for an effective
strategy.
➢ This means that implementing strategic finance takes
22
time from line managers.
 Disadvantages
3. Determination of Standards:
➢ Financial management involves the determination of
standards for measuring exact performance, which is a
hard task.
➢ There are no specific setup principles for setting up
standards and there may be chances to set inappropriate
standards.
4. Problems In Recognizing Deviation
➢ The recognition of actual reasons for irregularities in a
certain performance is not always possible.
➢ Financial management can work toward handling or
avoiding irregularities if and only proper reasons for
such irregularities are found out, otherwise, it is
23
worthless.
 Scope of Financial Management
1.Investment Decision:
➢ Financial management is needed for managing all
investment aspects of an entity. This includes risk
assessment, measuring the capital cost, and measuring
benefits out of a specific project.
➢ Managers decide how available funds should be
invested in fixed or current assets to get the best returns.

24
 Scope of Financial Management
2. Working Capital Decision:
➢ Working capital management is another convincing
subject of financial management. The various decisions
that are involved with an investment in current
responsibilities and current assets are involved in
working capital decision making.
➢ The working capital decision requires effective control of
current responsibilities and current assets, taking short-
term financing as and when needed, and managing
receivables.
➢ Current assets include cash, funds, receivables, short-
term insurances, etc. while current liabilities or
responsibilities include creditors, accounts payable.
25
 Scope of Financial Management
3. Financing Decision
➢ It involves determining what amount of funds require to
be raised for the short term and the long term.
➢ The finance manager is put in charge of studying the
specific finance mix or optimum capital system of the
company to increase its value.
➢ This means that the entity shall find a suitable mix of
equity and debt to give maximum profit to shareholders.

26
 Scope of Financial Management
4. Dividend Decision:
➢ In order to reach the revenue maximization aim, a proper
dividend policy must be developed.
➢ One aspect of dividend policy is to determine whether to
distribute all the profits as dividends or to give away a
part of the profits and keep the balance while determining
the optimum dividend payout ratio.
➢ The finance manager should analyze the investment
spaces available to the organization, plans for
development and growth, etc.
➢ Decisions must also be made regarding dividend stability,
form of dividends, i.e., stock dividends.

27
 Scope of Financial Management
5. Profit Management:
➢ Efficient application of funds helps to make good profits
in the company.
➢ The finance manager shall increase return on resources
and control it over the cost of capital, meaning choosing
debts wisely.
➢ Another way is to the reduction of costs and increases
income items.

28
 Types of Financial Management

• Capital Budgeting

• Capital Structure

• Working Capital Management

29
 Capital Budgeting
➢ It relates to determining what needs to happen
financially for the company to reach its short- and
long-term objectives. Where should capital funds
be spent to support growth.
➢ These management teams are likewise answerable
for raising funds and investing funds.
➢ If an organization merges with another
organization or expands, the team will aid
financial needs for merger or expansion

30
 Capital Structure
➢ Figuring out how to pay for operations and growth. If
interest rates are reasonable, taking on debt might be
the best response.
➢ A company might also seek funding from a private
investment company, consider selling assets like real
estate, or, where applicable, selling capital
➢ At the point when the team refers to capital structure,
they are apparently dealing with a company’s debt-to-
equity ratio, which gives an understanding of how
strong an organization is financially or how risky the
organization is financially.
31
 Working capital management
➢Working capital management of an organization
deals with managing bookkeeping methods and
accounting policies intended to keep track of current
assets, current debts, cash flow, inventory turnover
ratio, working capital ratio, and much more.
➢The basic task of working capital management is to
assure the organization dependably keeps up
adequate liquid cash to meet its short-term debts and
operational cost.
➢This is one type of financial management where the
team needs to maintain working capital management
to smoother the company’s operational cycle, and
32
also to increase the company’s earnings.
 U18 OE 803 C Entrepreneurship Development
W13-L1-CDT28
Topic: Sources of finance
Mrs. N. Sree Laxmi Pavani
Assistant professor of CE
Department of CE
Kakatiya Institute of Technology and Science, Warangal, TS, India

ED 33
34
 According to the time Period.
• Long term Source of Finance
➢ It means Financing for the capital requirements which are for
a period of more than 5 years say 5 to 10 years.
➢ It depends upon the type of business and various other
factors.it includes equity shares, loan from Financial
Institutions, venture Financing and International Financing.
• Medium term Source of Finance
➢ Medium tem source of finance are source of finance available for the
mid term of between 3-5 years.
➢ It includes business finance partnership, preference shares, medium
term loans from banks and Financial institutions.
• Short term Source of Finance
➢ Short term financing for a period of less than 1 year. The need for
short-term finance arises to finance the current assets of a business
like an inventory of raw materials and finished goods.
➢ It includes advances, build discounting etc.
35
On the basis of Ownership and control
• Owned Capital:
❖ Owned capital also refers to equity. It is sourced from promoters
of the company or from the general public by issuing new equity
shares. Includes, equity shares , preference shares, retained
earnings.
❖ Owned capital is a long term capital and the capital raised from
the same stage permanently in the business.
❖ There is no burden of paying interests like borrowed capital.
• Borrowed Capital:
❖ Borrowed or debt capital is the finance arranged from outside
sources. Loans from financial institutions, commercial banks,
public deposits,
❖ In this type of capital , the borrower has a charge on the assets of
the business which means the company will pay the borrower by
selling the assets in case of liquidation.
36
 On the basis of Sources of generation.
• Internal Sources
➢ The Internal source of finance is the source which is
generated internally by the business.
➢ In this the business grows itself and does not depend
upon the outside sources. It includes retail earnings,
sale of assets etc.
• External sources
➢ The external source of finance means generation of
capital from the sources which are outside the business.
➢ In this it is very important to select the right source of
finance and each source of finance needs to be properly
evaluated.
➢ It includes, raising the finance from equity shares, raising
the finance from preference shares, loan from financial
institutions or commercial banks. 37
 Equity Shares
➢Equity shares are also known as ordinary shares or
common shares, represent the owners capital in the
company. The holders of these shares are the real
owners of the company.
➢These are irredeemable. For an Investor, these shares
are a certificate of ownership In the company by
virtue of which investors are entitled to share the net
profits.
➢They may be paid a higher rate of dividend or they
may not get anything.

38
 Preference Shares
➢Preference shares have certain preference as compared
to pother shares. Equity shareholders will be paid only
when preference shareholders are paid dividend.
➢Generally, a fixed rate of dividend is payable to
preference shareholders and the share holders do not
have any voting rights in the company. There is no
dilution of control of the company.

39
 Bullet Loan or Balloon loan
❖A bullet loan is a short-term financing option with
a single lump sum payment at the end of the loans
maturity terms.
❖Example: Suppose you take a loan of Rs.95,000/-
on 18th April 2022 and repay it back in a year @
10% i.e. on 18th April 2023. and you decided the
repay the loan in monthly installments. So each
month you will pay Rs.8,708.
❖Incase of bullet loan, you take the loan on 18th
April 2022 and repay Rs.1,04,5000 (95,000
principal amount plus interest Rs.9,500) in a
single payment mode on 18th April 2023
40
 Angel Investors
❖It is one of the easiest source of finance for new
entrepreneurs. It is one of the long term financing
option.
❖These can be known or unknown people to the
entrepreneur but they are driven by the lure of
returns later which makes them invest in the early
stages of the business.
❖An angel investor is typically an individual or a high
worth individual investor who provides funding or
financial support for start-ups in lieu of a stake in
ownership in the company.
❖Apart from investing money, angel investors share
their knowledge at the critical stages. 41
 Lease Financing
❖In addition to debt and equity financing, lease
financing has also emerged as one of the
medium and long term financing for the
corporate enterprises.
❖In this the owner of the asset gives the right to
use the asset to another person against
periodical payments.
❖There are two parties involved in lease financing:
❖Lessor: Owner of the asset.
❖Lessee: who takes the asset on lease and does not
have the ownership of the asset. 42
 Financial Lease
❖Also known as Capital lease. A capital lease is a
long term arrangement which is non-cancellable.
❖The lessee is obligated to pay lease rent till the
expiry of lease period.
❖In this the lease period is more than the useful
life of the asset. It is for a longer period of time.

43
 Operating lease
➢ Contrary to capital lease, the period of
operating lease is shorter and it is often
cancellable at the option of lessee with prior
notice.
➢ Hence, operating lease is also called as open
end lease arrangement. The lease term is
shorter than the economic life of the asset.

44
 U18 OE 803 C Entrepreneurship Development
W13-L1-CDT30
Topic: Introduction of
HRM and recruitment procedure
Mrs. N. Sree Laxmi Pavani
Assistant professor of CE
Department of CE
Kakatiya Institute of Technology and Science, Warangal, TS, India

ED 45
 CONCEPT OF HRM
• HRM is concerned with the human beings in an
organization. ―The management of man.
• Though it is a very important and challenging job because
of the dynamic nature of the employees .
• As no two people are similar in nature – in every aspect of
mental abilities, tacticians, sentiments, and behaviors; they
differ widely not only individually but also as a group and
are subjected to many varied influences.
• People are responsive, they feel, think and act therefore
they cannot be handled like a machine or shifted and
altered like template in a room layout. They therefore need
a tactful handing by management personnel.
46
 Introduction.
➢ Human resource management/staffing is the
managerial function of recruitment, selection,
training, developing, promotion and compensation
of personnel.
➢ Staffing may be defined as the process of hiring
and developing the required personnel to fill in the
various positions in the organization. It involves
estimating the number and type of personnel
required.
➢ It involves estimating the number and type of
personnel required, recruiting and developing them,
maintaining and improving their competence and
performance.
➢ Staffing is the process of identifying, assessing,
placing, developing and evaluating individuals at 47
work.
 Definition
• In general Human Resource Management is
a management function concerned with
hiring, training, motivating, developing and
maintaining workforce in an organization.
• Human resource management ensures
satisfaction of employees so as to get
maximum contribution of employees for the
achievement of organizational objectives.
48
 Definition
• According to Armstrong (1997), Human
Resource Management can be defined as
―a strategic approach to acquiring,
developing, managing, motivating and
gaining the commitment of the
organization‘s key resource – the people
who work in and for it.

49
 Definition
• According to Koontz and O’Donnell:
❖ “The managerial function of staffing involves manuring the
organizational structure through proper and effective
selection, appraisal and development of personnel to fill the
roles designed into the structure.”
❖ Staffing is defined as, “Filling and keeping filled, positions
in the organizational structure. This is done by identifying
work-force requirements , inventorying the people available,
recruiting, selecting, placing, promotion, appraising,
planning the careers, compensating, training, developing
existing staff or new recruits, so that they can accomplish
their tasks effectively and efficiently.”

50
 IMPORTANCE
1. Staffing helps in discovering and obtaining
competent and personnel for various jobs.
2. It helps to improve the quantity and quality of the
output by putting the right person on the right job.
3. It helps to improve job satisfaction of employees.
4. It facilitates higher productive performance by
appointing right man for right job.
5. It reduces the cost of personnel by avoiding wastage
of human resources.
6. It facilitates growth and diversification of business.
7. It provides continuous survival and growth of the
business through development of employees. 51
52
 Objectives of HRM
1.To help the organization to attain its goals effectively and efficiently by
providing competent and motivated employees.
2. To utilize the available human resources effectively.
3. To increase to the fullest the employee‘s job satisfaction and self-
actualization.
4. To develop and maintain the quality of work life (QWL) which makes
employment in the organization a desirable personal and social situation.
5. To help maintain ethical policies and behavior inside and outside the
organization.
6. To establish and maintain cordial relations between employees and
management.
7. To reconcile individual/group goals with organizational goals.

W10-L3-CDT-HR 53
 Managerial Functions
a) Planning: Planning is to plan for future or predetermine the course of actions to be
taken in future. It is a process of identifying the organizational goals and
formulation of policies and programs for achieving those goals.
b) Organizing: Organizing is a process by which the structure and allocation of jobs
are determined. Thus organizing involves giving each employee a specific task
establishing departments, delegating authority to subordinates, establishing channels
of authority and communication, coordinating the work of subordinates, and so on.
c) Staffing: This is a process by which managers select, train, promote and remove
their employees This involves deciding what type of people should be hired,
recruiting, selecting employees, setting the performance standard, compensation of
employees, evaluation of performance of employees, counseling employees,
training and developing employees.
d) Directing/Leading: Directing is the process of initiating or activating group efforts
to achieve the desired organizational goals, which includes activities like getting
subordinates to get the job done, maintaining their morale, motivating subordinates
etc, for achieving the organizational goals.
e) Controlling: It is the process of setting the standards for performance, measuring the
actual performance of the employees and then comparing the actual performance
with the standards and there by taking corrective actions as needed.
54
Functions of HRM

W10-L3-CDT-HR 55
W10-L3-CDT-HR 56
 RECRUITMENT AND SELECTION
• Recruiting involves attracting candidate to
fill the positions in the organization
structure.
• Before recruiting, the requirement of
positions must be cleared identified.
• It makes easier to recruit the candidates
from the outside.
• Enterprises with a favourable public image
find it easier to attract qualified candidates.
57
 Definitions –
1. Mc Fariand, “The term recruitment applies to the
process of attracting potential employees of the
company.”

2. Flippo, “Recruitment is the process of searching

prospective employees and stimulating them to apply
for the jobs in the organization.”
• Thus recruitment may be considered as a positive
action as it involves attracting the people towards
organization
58
 Need of recruitment
• The need of recruitment may arise due to
following situations:
1. Vacancies due to transfer, promotion, retirement,
permanent disability or death of worker.
2. Creation of vacancies due to expansion,
diversification or growth.

59
 Methods and sources of recruitment:
• According to ‘Dunn and Stephens’ recruitment methods can
be classified into three categories :
1) Direct Methods
2) Indirect Methods
3) Third Party Methods
1) Direct Methods include travelling visitors to educational and
professional institutions, employee’s contacts with public and
manned exhibits and waiting lists.
2) Indirect Methods include advertising in newspaper radio, in
trade and Professional journals, technical journals, brochures
etc.
3) Third Party Methods includes the use of commercial and private
employment agencies, state agencies, placement offices of the
colleges and universities, and professional association recruiting
60
firms.
 Sources of Recruitment
• The various sources of recruitment may be
classified as
• A. Internal sources or from within the organisation
• B. External sources or recruitment from outside.
A. Internal sources – Many organisations in India
give preference to people within the company
because the best employees can be found from
within the organisation itself. Under this policy, if
there is any vacancy the persons already working in
the organisation are appointed to fill it. This method
is followed mostly in Government organisations.
61
 Sources of Recruitment
B. External sources or recruitment from outside –
Internal sources may not always fulfill the needs of an
organisation. Naturally, most of the concerns have to
look for the external sources for recruitment the required
number of employees with the requisite qualifications.

62
 The external sources of recruitment include.
1. Direct Recruitment – Many organizations
having one separate department called personnel
department to select right employees. For that
organisaton may receive direct applications from
the candidate. The technical and clerical staff is
appointed in this way.
2. Recruitment through the jobbers or
Intermediaries – In India mostly unskilled or
illiterate workers are recruited through this
method. Under this system the intermediary
keeps a vital link between workers and
employers. They are always willing to supply the
required number of workers. 63
 The external sources of recruitment include.
• Recruitment at the factory gate – Mostly unskilled
workers are appointed through this method. Under
this system, large number of unemployed workers
assemble at the factory gate for employment. The
factory manager, or labour superintendent or some
other official may select the necessary workers.
• Recruitment through advertisement – This is
most common method for recruiting skilled workers,
clerical staff, managerial personnel, technical
personnel. The vacancies are advertised in the
popular daily newspapers and applications are
invited from the persons having required
qualifications. 64
 The external sources of recruitment include.
• Recruitment through the recommendation of the
existing employees – The existing employees
recommend the suitable names for the employment.
• Recruitment from colleges or universities or
educational institutions – This method is used in
some enterprises or Government department, when
the recruitment of persons required for
administration and technical personnel.
• Recruitment through employment exchange –
The workers who want help in finding jobs make
their registration in the nearest employment office
where details are recorded. Employment exchanges
are the special offices for bringing together those
65
workers who are in need of employment.
 The external sources of recruitment include.
8. Other methods –
i) Badli Control system or Decasualisation of labour
– It means efforts taken for regularizing the system or
recruitment by means of controlling substitute of badli
labour. Under this system, on the first day of each
month, special badli cards are given to a selected
number of persons who are advised to present
themselves every morning at the factory when
temporary vacancies are filled up from amount them.
ii) Contract labour – Under this method contractor
supplies labours to the industrial enterprises according
to their requirement.
66
67
 U

U18 OE 803 C Entrepreneurship Development

W14-L1-CDT30
Topic: Selection procedure and training
of candidate
Mrs. N. Sree Laxmi Pavani
Assistant professor of CE
Department of CE
Kakatiya Institute of Technology and Science, Warangal, TS, India

ED 68
 PROCESS OF SELECTION
• Selection means the taking up the different workers
by various acts from the application forms invited
through different sources of internal and externals.
• According to Dale Yoder, “Selection is the process
in which candidates by employment are divided
into two classes those who are to be offered
employment and those who are not.”
• Selection Procedure :
• Selection of workers is regarded as a policy matter.
Every enterprise has its own policy for recruitment.
The following procedure is adopted.

69
 Selection Procedure
1. Receiving and screening the application :
After receiving the applications have to be screened.
In this process the applications of candidates without
the requisite qualification are rejected.
2. Sending the Blank application form :
After preparing the list of candidates suitable for job,
blank application forms will be sent to the candidates.
In this application form information should be given
about the name and address of the candidate,
educational qualification, experience, salary expected
etc.

70
 Selection Procedure
3. Preliminary Interview : The interviewer has to
decide whether the applicant is fit for job or not. By this
interview the appearance, attitudes, behaviour of the
candidate can be known easily.
4. Administering Tests : Different types of test may be
undertaken. Tests are conducted for the knowledge of
personal behaviour, efficiency of work and interest.
Generally, following types of tests are conducted.
i) Achievement Test
ii) Aptitude test
iii) Trade Test
iv) Interest Test
71
v) Intelligence Test etc.
 Selection Procedure
5. Checking References on Investigation of Previous
History : Applicants are generally asked to give names
of at least two persons to whom the firm may make a
reference.
6. Interviewing : Interview is the most important step in
the selection procedure. In interview, the intimation
given in the application form is checked. Interview helps
in finding out the physical appearance and mental
alertness of the candidate and whether he possesses the
required qualities.

72
 Selection Procedure

• Interviews may be of various kinds these

are
1) Direct Interview
2) Indirect Interview
3) Patterned Interview
4) Stress interview
5) Systematic in – depth interview
6) Board of panel interview
7) Group interview 73
 Selection Procedure
7) Final Selection : On the basic of results of
previous interview the candidate is informed whether
he/she is selected for the said post or not.

74
 TRAINING AND DEVELOPMENT
• Training is an instrument of developing the employees by
increasing their skills and improving their behavior.
• Technical, managerial skills are needed by the employees
for performing the jobs assigned to the. Training is
required to be given to new employees as well as existing
employees. The methods to be used for training and the
duration for which training should be given is decided by
the management according to the objectives of the
training, the number of persons to be trained and the
amount of training needed by the employees.
• Training leads to overall personal development. The
major outcome of training is learning. Trainees learn new
habits, new skills, useful information that helps 75
to
improve their performance.
 TRAINING AND DEVELOPMENT
• Definition: According to Flippo:
“Training is an act of increasing the knowledge and skill of an
employee for doing a particular job.”
Importance of training and development:
1. Reduction in learning time
2. Better performance
3. Reduced supervision
4. Increases Morale of the employees
5. Facilitates organizational stability and flexibility
6. Develops employees skills, talents, competency
7. Decreased accidents
8. Better use of raw material and other resources
9. Increase in production 76
TRAINING AND DEVELOPMENT

77
 Development
• Development is a continuous process.
• It is fox for refreshing information knowledge and
skills of the executives. In the case of development, off
the job
• methods are used. It provides wider them capable to
face organizational problems and challenges is a bold
manner.
• Management development is a planned systematic
process of learning. It is designed to induce behavioural
change in individuals by cultivating the mental abilities
and inherent qualities through the acquisition and
Understanding of use of new knowledge.
78
 Human Resource Management
• Today, those in senior management positions are focusing
more on employee-related issues and how they affect an
organization's long-term business success.

• They are realizing that the alignment of business goals and

strategies implemented by human resources can result in
better organizational performance.

• As part of a community of people obsessed with building

healthy company cultures, I wanted to explore some
examples of strategic HR at its finest.

W10-L3-CDT-HR 79
 U18ME803C:
U18OE803CENTREPRENEURSHI
P DEVELOPMENT
CDT:32: Legal issues in industry

Smt. N. Sree Laxmi Pavani

Assistant professor
Department of CE
Kakatiya Institute of Technology & Science Warangal, TS
 U18ME803C:
U18OE803CENTREPRENEURSHI
P DEVELOPMENT
CDT:33
Topic: Mechanisms of resolving conflicts
Mrs. N. Sree Laxmi Pavani
Assistant professor of CE
Department of CE
Kakatiya Institute of Technology and Science, Warangal, TS, India
 U18ME803C:
U18OE803CENTREPRENEURSHI
P DEVELOPMENT
CDT:33:
Industrial laws-
Indian Factories Act, Workmen
Compensation Act;
Mrs. N. Sree Laxmi Pavvani
Assistant professor
Department of CE
Kakatiya Institute of Technology & Science Warangal, TS
 U18ME803C:
U18OE803CENTREPRENEURSHI
P DEVELOPMENT
CDT:35:
Industrial laws-
Compensation Act

Mrs. N. Sree Laxmi Pavvani

Assistant professor
Department of CE
Kakatiya Institute of Technology & Science Warangal, TS
 U18ME803C:
U18OE803CENTREPRENEURSHIP
DEVELOPMENT
CDT:36: Intellectual Property Rights (IPR) –
patents, trademarks, and copyrights
Mrs. N. Sree Laxmi Pavvani
Assistant professor
Department of CE
Kakatiya Institute of Technology & Science Warangal, TS
Intellectual Property Rights (IPR)

215
Intellectual Property Rights (IPR)

216
Intellectual Property Rights (IPR)

W12-L1-Legal Issues in 217

Entrepreneurship
 National IPR Policy, 2016
• The Policy aims to push IPRs as a
marketable financial asset, promote
innovation & entrepreneurship, while
protecting public interest.
• The plan will be reviewed every five
years in consultation with stakeholders.
• To have strong & effective IPR laws,
steps would be taken — including review of
existing IP laws — to update & improve 218
Objectives under the policy are

219
What are Intellectual Properties?
• Industrial designs
• Scientific discoveries
• Protection against unfair competition
• Literary, artistic, and scientific works
• Inventions in all fields of human
endeavor
• Trademarks, service marks, commercial
names, and designations
W12-L1-Legal Issues in 220
Entrepreneurship
 Advantages of Intellectual
Property Rights
• IPR yields exclusive rights to the creators
or inventors.
• It encourages individuals to distribute and
share information and data instead of
keeping it confidential.
• It provides legal defense and offers the
creators the incentive of their work.
• It helps in social and financial
development. 221
222
Types of Intellectual Property
Rights

223
What Is a Patent?

224
 Patent
• A patent gives its owner the right to exclude
others from making, using, selling, and
importing an invention for a limited period
of time. The patent rights are granted in
exchange for enabling public disclosure of
the invention.
• A patent is an exclusive right given to the
inventor. Such a patent is a legal document
granted when the invention is novel, 225
 Benefits of Patent
• A patented Invention is tradable; the
Patentee has the right to sell his patent if he
feels that the patent can be commercialized.

226
 Patents
• It is a special right to the discoverer/inventor that has been granted by the government through legislation for trading
new articles.

• A patent is a personal property which can be licensed or sold by the person or organisation just like any other
property.

• Patent terms give the inventor the rights to exclude others from making, using or selling his invention.

• It is difficult to keep secret certain inventions and therefore, guidance should be obtained from a qualified patent
attorney.

• A patent consists of three parts: the grant, specifications and claims.

• The grant is filled at the patent office which is not published. It is a signed document, actually the agreement that
grants patent right to the inventor.

• The specification and claims are published as a single document which is made public from the patent office.
The specification part is narrative in which the subject matter of invention is described as how the invention was
carried out.

• The claim specifically defines the scope of the invention to be protected by the patent which the others may not
practice.

227
General Steps in Patenting

228
What Is a Trademark?

229
 What Is a Trademark?
• Unlike patents, a trademark protects words
and design elements that identify the source
of a product. Brand names and corporate
logos are primary examples. A service mark
is similar, except that it safeguards the
provider of a service instead of a tangible
good. The term “trademark” is often used in
reference to both designations.
• Some examples of trademark infringement 230
231
What Is a Copyright?

232