Define Exchange Rate System - What is Recruiting and Selecting Employees?

Exchange Rate System:

There are three types or sorts of exchange rate systems:
1. Freely Floating exchange rate system
2. Fixed exchange rate system
3. Managed exchange rate system
Currency Risk: 
• Risk; volatility in return is called risk, Flactuation outcome (profit/loss).
• Risk is when you invest in that assets, whoes price Flactuates (up and down).
• As much volatility, as much is risk.
For example: If value of dollar increase, then holders of dollars are in profit but if payment is made by some one in dollar, then a person in loss.
• Risk could be in term of profit and loss.
Interaction of demand and supply of currency determines the value of currency.

1.Free Floating exchange rate system:

It is also called as clean exchange Rate system. No interaction of government in deciding Exchange rate. Purely depends upon market in determining rate.
• As demand of currency high, value of currency high.
• As demand of currency low, value of currency low.
• As supply of currency high, value of currency low.
• As supply of currency low, value of currency high.
Disadvantage: Capital flight to outward investment (outflow).
As market decides the exchange rate flactuation is to much in currency causing high risk for importer, exporter and investor. Foreign direct investment decreases in country.

2. Fixed Exchange Rate system:

• Government intervene in the market and fixed the exchange rate by the way of sale and purchase of foreign exchanges.
• Exchange rate is also fixed by joining the value of currency with any other commodity price, like gold price or by joining with any other currency.
• In Musharraf Regions, Dollar maintained with Rupees at Rs 60, as dollar increases; Rs increase and vice versa.
Advantage: Due to the constant value of currency, confidence of importer, exporter and investor boots up and investment starts took place in the country.

3. Manage Float Exchange Rate:

• Combination of Free floating exchange rate system and Fixed Exchange Rate system.
• Government has decided a range/band in which currency freely floats but if value of currency crosses the range, Government intervenes and get back the price of currency under the range.

Recruiting and Selecting Employees:

Recruitment:

Reaching out to attract application from which to choose one to fill a job vacancy.
Networking: Process of establishing and maintaining contacts with key persons in ones own or another organization as informal development or promotion system.

Method for selecting the right persons for the job:

Selection: Involves choosing the applicant who has the qualification to perform the job.
Validity: Making sure that the test given actually corespond to job performance.
• Preliminary Screening.
• Getting biographical information.
• Interviewing applicants in Depth.
• Checking reference.
• Getting physical examination.
• Making a Job offer.
• Orienting a new employee.

Training and developing Employees:

• The effectiveness of small business results from:
1. Inherent ability of the employees.
2. Their development through training and experience.
3. Their motivation.
• Some of the results of Training and developing workers include:
1. Increase productivity.
2. Reduce Turnover.
3. Increase earning for employees.
4. Decrease cost of materials and equipments due to errors.
5. Less super vision requires.
6. Improve employee satisfaction.

Ways of Training Non - Managerial Employees:

1. On the job Training:
On the job Training has the worker actually performing the work under the supervision of competent trainer.
2. Internship training:
It joins on the job training with learning at a coordinating school or college.
3. E-Training (electronic):
It involves computer interaction with eithier specific software or specific online sides.

Selecting and Developing Managers:

1. Coaching:

Managers provide direction to representatives while the workers perform their regular job.

2. Job rotation:

Manager learn barriers operating procedures by performing many job in different areas temporary.

3. Executive development program:

This program to develop manager is perform outside the company.

4. Planned progression:

The company outlines the path of promotion that lies a head of a new manager.
Q: How to maintain relationships with your employees?
Setting up the organization structure: Organization structure of a business governs relationships between the owners, Managers and employees.
Organizing: Organizing is determining those activities that are necessary to achieve firm objectives and assigning them to responsible person.

Some Basic Organization Concepts:

1. Delegation:

Delegation means assigning responsibility to sub-ordinates for doing certain activities and giving them authority to perform those activities.

2. Span of Management (Span of control):

The number of employees that reports directly to Manager.

3. Specialization:

Utilizing employees to do the work that they are best appropriate for.
Some Organizational problems in small Firms:
1. The owner holds to many meeting attended by to many people resulting in wasted hours.
2. Administrative expenses grow more rapidly their sales.
3. The attention of key people risk not directed towards key activities of the firm and their performance.