Impacts of Rewards on Employee Turnover Intentions

Employee Turnover Intentions can be defined as a measurement of whether a business or organisation’s employees plan to leave their positions or whether that organisation plans to remove employees from positions. The pay level has an enormous impact on turnover intentions considering that people start seeking new job opportunities with higher salaries to satisfy their life needs. The pay level is more influential for employees than pay raises. Therefore, those workers content with their salary amount are less likely to search for a new workplace. When the payment decreases, the turnover intention increases vice-versa. As for the financial incentives, they are crucial for employees of the young age groups more than for older staff. Therefore, it is vital to cater to workers needs in the incentives scheme according to their age groups as this factor is not the most influential for the turnover intentions. As stated previously, the turnover rates rise Continue reading

External Prospects of Business Growth

The analysis of the internal perspective of the growth of the business reflects on the operations that the organization must undertake to stimulate productivity and the quality of employees. In addition to the internal factors that influence the organization, external factors affect the performance of the business. The external factors include political, economic, socio-cultural, technological, legal, and environmental issues. The political environment involves the political stability of the country in which the business is operating. In this case, the additional factors that the political factors would influence include the regulation policies formulated by the government. If the government formulates stern policies based on its doctoral nature, the business operations will suffer leading to poor performance and reduction in quality provision. On the other hand, if the government adopts democratic leadership, business issues will be considered during policy development leading to business growth in the whole industry. Economic factors are crucial Continue reading

An overview of Foreign Direct Investment (FDI) in India

About foreign direct investment. Foreign Direct Investment or FDI is the process whereby residents of one country (the source country) acquire ownership of assets for the purpose of controlling the production, distribution, and other activities of a firm in another country (the host country). The international monetary fund’s balance of payment manual defines FDI as an investment that is made to acquire a lasting interest in an enterprise operating in an economy other than that of the investor. The investors’ purpose being to have an effective voice in the management of the enterprise’. The united nations 1999 world investment report defines FDI as ‘an investment involving a long term relationship and reflecting a lasting interest and control of a resident entity in one economy (foreign direct investor or parent enterprise) in an enterprise resident in an economy other than that of the foreign direct investor ( FDI enterprise, affiliate enterprise Continue reading

McKinsey Model of Value Based Management

The McKinsey model, developed by leading management consultants McKinsey & Company, is a comprehensive approach to value-based management.  This approach is based on the discounted cash flow principle, which is a direct measure of value creation.   McKinsey Model of Value Based Management  focuses on the identification of key value drivers at various levels of the organization, and places emphasis on these value drivers in all the areas, i.e. in setting up of targets, in the various management processes, in performance measurement, etc. Value based management is a model that allow managers to run a business focusing on the creation, improvement, and delivery of value.  According to Copeland, Roller and Murrin, value-based management is “an approach to management whereby the company’s overall aspirations, analytical techniques, and management processes are all aligned to help the company maximize its value by focusing management decision-making on the key drivers of value”. According to Continue reading

Green and Sustainable Supply Chain Management

Environmental changes across the world have generated a movement to identify the causes of global warming and develop solutions to end it before it is too late. In an effort to achive this, many countries are creating laws and regulations with the specific aim to reduce carbon emissions and greenhouse gas effect. The truth is that environmental change is upon us. Not only do we have climate problems but we are also dealing with a resource depletion issue. With economies like India and China growing at near double digit rates, the population of the world continues to grow creating shortages of many resources that we use to take for granted. Many consumers, stakeholders and businesses are becoming more involved in the growing green movement. Influenced by customer loyalty shifting towards environmentally friendly products, businesses are trying more and more to make their supply chains greener by introducing sustainability strategies throughout Continue reading

Alcar Model of Value Based Management

The Alcar model, developed by the Alcar Group Inc., a company into management education and software development, uses the discounted cash flow analysis to identify value adding strategies. According to Alcar Model  of Value Based Management, there are seven ‘value drivers’ that affect a firm’s value. These are The growth rate of sales Operating profit margin Income tax rate Incremental investment in working capital Incremental investment in fixed assets Value growth duration Cost of capital. Value growth duration refers to the time period for which a strategy is expected to result in a higher than normal growth rate for the firm. The first six factors affect the value of the strategy for the firm by determining the cash flows generated by a strategy. The last term, i.e. the cost of capital, affects the value of the strategy by determining the present value of these cash flows. The following figure represents Continue reading