SALES FORECASTING, BUDGET
AND COST CONTROL,
INDUSTRIAL AND PERSONAL
RELATIONSHIP
SUBMITTED TO, SUBMITTED BY,

GAURAV J KUMAR ZUFIKA QAMAR

SALE FORECASTING

DEFINITION :
“Prediction based on past sales
performance and an analysis of expected
market condition”

FACTORS
AFFECTING

SALE FORECASTING

EXTERNAL INTERNAL
FACTORS FACTORS

EXTERNAL FACTORS
Relative state of the economy

Direct and indirect competition

Styles or fashions

Consumer earnings

Population changes

Weather

INTERNAL FACTORS
Labour problems

 Inventory shortages

Working capital shortage

Price changes

Change in distribution method

Production capability shortage

New product lines

SALE FORECASTING
METHOD

QUALITATIVE QUANTITATIVE

QUALITATIVE QUANTITATIVE

Moving average
Executive opinion method

Decomposition

Delphi Method Regression Analysis

Ratio method

Sales force composite
method Economic analysis

Econometric analysis
Survey of Buyer’s intentions

Executive opinion method

 In this method of forecasting, the view of senior executives of
the company are obtained for forecasting sales.

 The oldest, simplest and the most widely used method.

ADVANTAGES DISADVANTAGES

• it can be done • Unspecific

easily and quickly. • subjective

• Less expensive

Delphi Method

 Process includes a coordinator getting forecasts separately from experts.

 Summarizing the forecasts giving the summary report to experts who are asked to make
another prediction.

 The process is repeated till some consensus is reached.

ADVANTAGES DISADVANTAGES

• Objective forecast is accurate. • Difficulty getting a panel experts.
• Useful for technology, new product, • Longer time for getting consensus.

and industry sales forecast. • Break-down of forecast into products
• Both long and short term forecasting or territories is not possible.

possible.

Sales force composite method
 Each salesperson estimates how much quantity or value

each existing and prospective consumer will buy of each
of the company’s product and services in his/her territory.

ADVANTAGES DISADVANTAGES
• Forecasting is don by a • Sales forecast are often

salespeople who are closest pessimistic or optimistic.

to the market. • If sales forecast are used to set

• Detailed sales estimate sales quotas, which are linked
to incentive schemes,

broke down by customer,
salespeople may deliberately

product and territory are under estimate the demand.
possible. • Many salespersons are not

• Involvement of salespeople. interested in sales forecasting,
and prefer to spend time in the
field meeting sustomers.

INDUSTRIAL
RELATIONSHIP

Industrial relationship is composed of two terms

INDUSTRY

RELATIONSHIP

“Industry” refers to “any productive activity in
which an individual (or a group of individuals) is
(are) engaged”.

“Relations” we mean “the relationships that exist
within the industry between the employer and his
workmen.”

 The term industrial relations explains the relationship between employees and
management which stem directly or indirectly from union-employer
relationship.

 Industrial relations are the relationships between employees and employers
within the organizational settings.

 The relationships which arise at and out of the workplace generally include

 the relationships between individual workers

 the relationships between workers and their employer

 the relationships between employers

 the relationships employers and workers have with the organizations formed to
promote their respective interests

 the relations between those organizations, at all levels .

 the processes through which these relationships are expressed (such as,
collective bargaining, workers‟ participation in decision-making, and
grievance and dispute settlement), and the management of conflict between
employers, workers and trade unions, when it arises.

DEFINITION:
The Industrial Relation relations also called as
labor – management, employee employers
relations.
1) “Employer-employee relationships that are

covered specifically under collective
bargaining and industrial relation laws”.

2) “Concerned with the systems, rules and
procedures used by unions & employers to
determine the reward for effort & other
conditions of employment.”

EMPLOYEES TRADE UNION

INDUSTRIAL
EMPLOYER

EMPLOYERS ASSOCIATIONS
RELATION

COURTS &
GOVERNMENT TRIBUNALS

OBJECTIVE
 To safeguard the interest of labor and management by securing the

highest level of mutual understanding and good-will among all those
sections in the industry which participate in the process of production.

 To avoid industrial conflict or strife and develop harmonious relations,.

 To raise productivity to a higher level in an aera of full employment by
lessening the tendency to high turnover and frequency absenteeism.

 To improve the economic conditions of workers in the existing state of
industrial managements and political government 5. To Protect
management and labor interests by securing mutual relations between
the two groups.

 To Avoid disputes between management and labor, and create a
harmonizing relationship between the groups so productivity can be
increased

IMPORTNACE

Uninterrupted production

Reduction in Industrial Disputes

High morale

Mental Revolution

Reduced Wastage

Foster Industrial Peace

Promote Industrial Democracy

ROLE OF THE EMPLOYEE TO IR

To redress the bargaining advantage on one-
on-on basis

To secure better terms and conditions for
their members

To obtain improved status for the worker in
his/her work

To increase implementation of democratic
way of decision making at various levels

CAUSES FOR POOR IR
The main reasons are as follows:

 An attitude of contempt towards the workers on the part of the
management.

 Inadequate fixation of wages or improper wage structure.

 Indiscipline

 Unhealthy working conditions at the workplace.

 Lack of human relations skills on the part of supervisors and managers.

 Desire of workers for higher bonus, wages or daily allowances.

 Desire of employers to pay as little as possible to its workers.

APPROACHES OF IR
 PLURALISM(CONFLICT APPROACH )

 PLURALISM(CONFLICT APPROACH )Pluralism is belief in the existence of more than one
ruling principle, giving rise to a conflict of interests.

 The pluralist approach to IR accepts conflict between management and workers as
inevitable but containable through various institutional arrangements ( like collective
bargaining, conciliation and arbitration etc) and is in fact considered essential for
innovation and growth.

 It perceives organizations as coalitions of competing interests , where the
management’s role is to mediate among the different interest groups.

MARXIST APPROACH
 MARXIST APPROACH Marxists like pluralists also regard conflict as inevitable but

see it as a product of capitalistic society where as pluralist believe that the
conflict is inevitable in all organizations

 For Marxists IR has wider meaning.

 For them conflict arises not because of rift between management and workers
but because of the division in the society between those who own resources
and those who have only labor to offer.

 Marxist approach thus focuses on the type of society in which an organization
functions.

THE SYSTEM APPROACH
 The system approach was developed by J. P. Dunlop of Harvard University in 1958.

 According to this approach, individuals are part of an ongoing but independent social
system.

 The behaviour, actions and role of the individuals are shaped by the cultures of the
society.

 The three elements of the system approach are input, process and output.

 Society provides the cue (signal) to the individuals about how one should act in a
situation.