Man Power and Raw Materials

Lesson 5 : Process of Initiating an Enterprise

Man Power and Raw Materials

In case the business is not so small as to be run single handed, the owner will have to employ persons to help him. These workers may be unskilled, semi–skilled and skilled. To run an enterprise smoothly it has to be ensured that sufficient manpower is available at the right time and at competitive rate. The whole process which ensures a regular supply of required manpower of right type is called recruitment. The various sources for skilled workers recruitment are:

  1. Employment Exchange
  2. Technical institutions and institutes of education and training like ITIs, and
  3. Through news paper advertisement.

For unskilled labour, sources of recruitment are

  1. those available at factory gate,
  2. through contractors,
  3. Reference by the existing employees.

The owner should find out the prevailing rate of wages and decide about the wages, particularly for the skilled workers.

Raw material is also very important for producing goods. To maintain continuity of production, raw materials must be available in adequate quantity and at regular intervals. Quantity and quality of materials to purchased and sources of supply should be decided in advance. Suppliers should be identified and enquiries made regarding price, transport cost and terms of payment. Keeping in view the time taken by the suppliers to supply raw material, adequate stock has to be maintained. If there is apprehension of rise in price of raw materials, quantity of purchase may be increased.
Last modified: Friday, 6 January 2012, 5:21 AM