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

Objectives of Compensation Management

The basic objective of compensation management can be briefly termed  as meeting the needs of both employees and the organisation. Since both these  needs emerge from different sources, often, there is a conflict between the two.  This conflict can be understood by agency theory which explains relationship  between employees and employers. The theory suggests that employers and  employees are two main stakeholders in a business unit, the former assuming the  role of principals and the latter assuming the role of agents. Objectives of Compensation Management The compensation  paid to employees is agency consideration. Each party to agency tries to fix this  consideration in its own favor. The employers want to pay as little as possible  to keep their costs low. Employees want to get as high as possible. The  compensation management tries to strike a balance between these two with  following specific objectives: 1. Attracting and Retaining Personnel From organisation’s Continue reading

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Modes of Transferring Capital or Funds from Savers to Borrowers

In economics, a financial market refers to a media that allows people to buy, sell, create and exchange financial securities such as share and bonds, commodities such as basic agricultural goods and precious metals, and other fungible items of value at low transaction costs and at prices that reflect the efficient-market. Both general markets where many commodities are traded and specialized markets where only one commodity is traded exist in financial market. Markets work by placing many interested buyers and sellers in one media, thus making it easier for them to find each other. The financial markets can be divided into different types such as capital markets, commodity markets, money markets, insurance market and foreign exchange market. A saver refers to the one who deposit their money in bank, invest in company share and pays premium to an insurance company with objective to earn interest, dividend and profit. They aim Continue reading

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Why is Big Data so Important in Today’s World?

In the ever-changing, globalized economy, companies have started depending on assessments advanced by their internal processes, business operations, and customers to explore new opportunities for advancement and growth. Such insights present a massive intricate set of data that are produced then managed, analyzed, as well as manipulated by experts. The collation of such a large amount of data is collectively referred to as big data. The numerous peta and terabytes are presently considered as the big data benchmark. The main characteristics which describe big data include; volume which refers to the amount of produced and stored data that determines the potential and the value of the insight and if it can truly be assumed as big data or not. Secondly, the variety referring to the nature and type of the data to assist the data analyst to successfully use the subsequent insights; Velocity refers to the speed that determines how Continue reading

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Methods of Job Evaluation

For fixing compensation to different jobs, it is essential that there is  internal equity and consistency among different job holders. Job evaluation is the process of determining the relative  worth of different categories of jobs by analyzing their responsibilities and,  consequently, fixation of their remuneration.  The basic objective of job evaluation is to determine the relative  contributions that the performance of different jobs makes towards the  realization of organisational objectives. There are four basic methods of job evaluation: ranking method, job  grading method, point method and factor comparison method. Out of these, first  two methods are non-quantitative and also known as traditional, non-analytical  or summary methods. The last two methods of job evaluation are quantitative, also known as  analytical methods, and use various  quantitative techniques in evaluating a job. The basic difference between qualitative and quantitative methods of job evaluation is in terms of; Consideration of the job as a Continue reading

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Free Trade Zones – Definition and Meaning

In simple words, free trade means free international trade. The classical economists like Adam Smith, Ricardo and others strongly  favored  free trade and this doctrine held the field for nearly one hundred years. How ever later, the countries all over the world began to adhere to the policy of imposing restrictions in one form or other. History and Development of Free Trade Zones During the last 20 years, the labor charges in developed countries have increased substantially. According to a recent estimate, the labor cost is nearly 1 USD per hour for semi-skilled workers in most European Countries, U.S and Japan. This high labor cost was due to the acute shortage of both skilled and unskilled labor in most of these countries. Countries like Germany, France, Switzerland, Sweden, Austria, Belgium and England even imported laborers from other countries. Therefore, the cost of production involving a considerable  labor  content has become Continue reading

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Female or Women Entrepreneurship – Definition, Advantages and Disadvantages

Women constitute around half of the total world population. They are therefore regarded as the better half of the society. In traditional societies, they were confined to the four walls of houses performing household activities. In modern societies they have come out of the four walls to participate in all sorts of activities. The global evidences prove that women have been performing exceedingly well in different spheres of activities like academics, politics, administration, social work and so on. Now they have started plunging into industry also and running their enterprises successfully. Although small businesses owned by women have traditionally focused on fashion, food and other services sector, but recently women entrepreneurs have been moving rapidly into manufacturing, construction and other industrial filed. Women owned business are lightly increasing in the economics of almost all countries. The hidden entrepreneurial potential of women have gradually been changing with the growing sensitivity to Continue reading

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