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

Positive Accounting Theory

The beginning of positive accounting theory is the Efficient Markets Hypothesis (EMH). The EMH is based on the assumption that capital markets react in an efficient and unbiased manner to publicly available information. The main strengths of Positive Accounting Theories over Normative Accounting Theories are the facts that hypothesis are framed in such a way that they are capable of falsification by empirical research. Also, these theories aim to provide an understanding of how the world works rather than stating how the world should work. Moreover, PAT tries to understand the relationship and connection between various accounting information, managers, firms, and markets; and also analyze these relationships within an economic framework. There are several assumptions made in development of positive accounting theory. The first is that the firm is a nexus of contracts. In relation to Positive Accounting Theory, because there is a need to be efficient, the firm will Continue reading

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Effects of Black Money on Economy

Black money is generated due to the following reasons: The people do not pay their taxes. Even if they pay taxes, they are not in correct proportions to their incomes. The tax evasions by corporate and industrial houses are to the tune of billions of rupees. These firms are able to make clever usage of the income tax rules and hence, they save taxes. This tax evasion leads to the generation of black money. The black money is earned by gifts, hawala transactions and illegal foreign exchange deals. These deals are not scrutinized by the government simply because these are without any documentary evidences. The procedures of over billing or under billing and exaggeration of expenses lead to the generation of black money. The sale and purchase of assets also lead to the generation of black money. The value of the property is shown to be very low in the Continue reading

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Team: Definition and Important Types

Definition of Team A team is defined as a group of people working together to achieve common objectives or goals. Teamwork is the cumulative actions of the team during which each member of the team subordinates his individual interests and opinions to fulfill the objectives or goals of the group. The objective or goal is a need to accomplish something, such as solve a problem and improve a process. Members of a team will need to focus on how they relate to each other, listen to the suggestions of others, build on previous information and use conflict creatively. They will need to set standards, maintain discipline, build team spirit and motivate each other. Each member of the team has their own history of experience to help achieve the objectives. They should have a need to see the task completed, but also the need of companionship, fulfillment of personal growth and Continue reading

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Tuckman’s Team-Building Model

Forming – Storming – Norming – Performing is a model of team development, first proposed by Bruce Tuckman in 1965, who maintained that these phases are all necessary and inevitable in order for the team to grow, to face up to challenges, to tackle problems, to find solutions, to plan work, and to deliver results. He added a fifth stage, Adjourning, in the 1970s. The Forming Storming Norming Performing theory is an elegant and helpful explanation of team development and behavior. Tuckman’s team-building model explains that as the team develops maturity and ability, relationships establish, and the leader changes leadership style. Beginning with a directing style, moving through coaching, then participating, finishing delegating and almost detached.  According to Tuckman, all of the phases are necessary and inevitable. In order for the team to grow they most face up to challenges, problems, find solutions to problems, planning as a team, and Continue reading

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Knowledge Management Value Chain

Knowledge management refers to the set of business processes developed in an organization to create, store, transfer, and apply knowledge. Knowledge management increases the ability of the organization to learn from its environment and to incorporate knowledge into its business processes. Following figure illustrates the five value-adding steps in the knowledge management value chain. Each stage in the value chain adds value to raw data and information as they are transformed into usable knowledge. In the figure, information systems activities are separated from related  management and organizational activities, with information systems activities on the top of the graphic and organizational and management activities below. One apt slogan of the knowledge management field is, “Effective knowledge management is 80 percent managerial and organizational, and 20 percent technology.”  In the case of knowledge management, as with other information systems investments, supportive values, structures, and behavior patterns must be built to maximize the Continue reading

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Two Basic Aspects of Financial Management

The general meaning of finance refers to the provision of funds, as and when needed. However, as management function, the term ‘Financial Management’ has a distinct meaning. Financial management deals with the study of procuring funds and its effective and judicious utilization, in terms of the overall objectives of the firm, and expectations of the providers of funds. The basic objective is to maximize the value of the firm. The purpose is to achieve maximization of share value to the owners, i.e. equity shareholders. There are two basic aspects of financial management : 1. Procurement of Funds   As funds can be obtained from different sources thus, their procurement is always considered as a complex problem by business concerns. These funds procured from different sources have different characteristics in terms of risk, cost and control that a manager must consider while procuring funds.   The funds should be procured at Continue reading

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