Concepts of Throughput Accounting and Theory of Constraints

Financial Management

Kaizen – Understanding the Japanese Business Philosophy of Continuous Improvement

Operations Management

Role of Leaders in Shaping Organizational Culture

Management Principles

Organizational Culture – Development and Importance

Management Principles

Five Important Organizational Cultural Models

Management Principles

Financial derivative types: Forward Contracts

Forward contracts: Forwards are the oldest of all the derivatives. Forwards are contracts to buy or sell an asset on or before a future date at a price specified today or an agreement between two parties to exchange an agreed quantity of an asset for cash at a certain date in future at a predetermined price specified in that agreement. The promised asset may be currency, commodity, instrument etc. Eg: On January 1, Mr. X enters into an agreement to buy 5 sacks of basmati rice on June 1 at Rs. 3000/- per sack from Mr. Y, a wholesaler. It is a case of a forward contract where Mr. X has to pay Rs. 15,000/- on June 1 to Mr. Y and Mr. Y has to supply 5 sacks of basmati rice. In a forward contract, a user (holder) who promises to buy the specified asset at an agreed price Continue reading

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Four Components of Emotional Intelligence

Emotional Intelligence was first described by Daniel Goleman, PhD, in the Harvard Business Review.  Dr. Goleman has described many important scientific discoveries about emotions and human behavior in his book, “Emotional Intelligence.” The book organizes the information into a description of how emotion drives behavior, and describes intelligent ways of managing both. According to Goleman, people who know and monitor their own feelings and recognize and deal with the feelings of others, have advantages in all areas of life, but those who cannot get a control over their emotional lives battle constantly and this prevent them to produce continued work and clear thoughts. He has  identified a set of competencies that differentiate individuals with Emotional Intelligence. Goleman’s Model:  Four Components of Emotional Intelligence Emotional Intelligence consists of two kinds of abilities. The vertical axis describes awareness vs. behavior. “What You See” (left column) is the ability to recognize and understand Continue reading

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Technology Risk in Business – Challenges of Changing Technology in Business

The changing technology environment has and still become one of the biggest challenges in international business management.  Technological changes can wreak havoc on industries. In making decisions regarding technological changes, companies err in two ways. They either commit themselves to a new technology too fast and burn their fingers or wait and watch while another company comes up with a new technology that puts them out of business. The issue of when and how to react to the emergence of a new technology is a matter of judgment. However, this judgment need not be based purely on intuition. By doing a systematic structured analysis of developments in the technological environment and putting in place the necessary organizational mechanisms, technology risk in  business  can be considerably reduced. How can managers identify the emergence of a disruptive technology? Clayton Christensen’s research reveals that disruptive technologies are often developed privately by engineers working Continue reading

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A Good Leader is a Good Follower

To differentiate leader from follower is difficult; they have several similarities as well as also have some differences. In leadership, one should have to take risk and lead the team; have ability to see opportunity that other cannot see. Both should be able to learn from someone or something. Leaders must be independent and isolated and should not rely on anyone but himself and have to be entrepreneurial and make workplace culture better by working with generous purpose. Good leadership is needed to solve problems and to navigate unexpected circumstances Followers only need to be competent during the battle and must be able to carry out orders by their leader, with their own ability while at other times; they have no need to be that competent. They could ask for help from their friends but in contrast, Leader cannot ask for help from his followers or else his followers would Continue reading

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Objectives of Budgetary Control

Budgetary Control is the process of establishing of departmental budgets relating the responsibilities of executives to the requirements of a policy, and the continuous comparison of actual with budgeted results, either to secure by individual action the objectives of that policy, or to provide a firm basis for its revision. The primary objective of budgetary control is to help the management in systematic planning and in controlling the operations of the enterprise. The primary objective can be met only if there is proper communication and coordination amongst different within the organization. Thus the objectives of budgetary control can be stated as: Planning: Business requires planning to ensure efficient and maximum use of their resources. The first step in planning is to define the broad aims and objectives of the businesses. Then, strategies to achieve the e desired goals are formulated and tentative schedule of the proposed combinations of the various Continue reading

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External Recruitment

The sources of recruitment can be classified into two types, internal and external. Filling a job opening from within the firm has the advantages of stimulating preparation for possible transfer of promotion, increasing the general level of morale, and providing more information about job candidates through analysis of work histories within the organization. A job posting has a number of advantages. From the view point of the employee, it provides flexibility and greater control over career progress. For the employer, it should result in better matches of employee and job. In most instances, the jobs are posted on notice boards, though some carry listings in the company newspapers. The posting period is commonly one week, with the final decision for hiring being completed within four weeks. Internal applications are often restricted to certain employees, the guidelines for one company including (1) “good” or “better” on most recent performance review; (2) Continue reading

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