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

Factors Affecting / Limiting Consumption

As the demand for a good depends upon its price, similarly consumption of a community depends upon the level of income. In other words, consumption is a function of income. The consumption function relates the amount of consumption to the level of income. When the income of a community rises, consumption also rises. How much consumption rises in response to a given increase in income depends upon the propensity to consume or consumption function. It should be borne in mind that the consumption function or the propensity to consume is the whole schedule which describes the amounts of consumption at various levels of income. Consumption is the sole end and purpose of all production. What restricts consumption? The factors which limit consumption are: The product and its limitations: This is a part of market research which is of great importance to product development and design.   Solution may be obtained Continue reading

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Importance of Aligning Human Resource Processes with Business strategy

Strategic alignment these terms are some of the phrases which are being used to explain the latest, evolving function of human resources process. The aligning human resource processes with business strategy about the growth of the business, increasing the performance of the employees and keeping the costs under a control. Which means the employee satisfaction and benefits provide to the population as they are not the strategic goals, but they are tools to reach the goals important for the whole organization. The importance of the alignment of the human resource process with business strategy is about going deeper and finding the real root components of the successful human capital management in the organization. The HR Managers have to identify the real goals of the business, the business way how to reach the goals and the real needs of the business from Human Resources. The HR tends to take care of Continue reading

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Asset and Liability Management (ALM)

In banking, asset and liability management (ALM) is used to manage the risks that arise due to mismatches between the assets and liabilities (debts and assets) of the bank. Banks face several risks like liquidity risk, market risk, interest rate risk, credit risk, and operational risk. Asset Liability Management (ALM) is a strategic management tool to manage interest rate risk and liquidity risk faced by banks, other financial services companies, and corporations. Banks manage the risks of Asset liability mismatch by matching the assets and liabilities according to the maturity pattern or matching the duration, by hedging and by securitization. Asset and liability management remain high-priority areas for bank regulators, with an emphasis on the management of market risk, liquidity risk, and credit risk. Asset/liability managers face the challenge of keeping pace with industry changes as new areas of risk are identified and new tools and models are developed to Continue reading

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Common Mistakes in Performance Appraisal

Where performance appraisal fails to work as well as it should, lack of support from the top levels of management is often cited as a major contributing reason. Opposition may be based on political motives, or more simply, on ignorance or disbelief in the effectiveness of the performance appraisal process. It is crucial that top management believe in the value of appraisal and expresses their visible commitment to it. Top managers are powerful role models for other managers and employees. As a manager, it’s essential to be aware of the following  common errors  when rating your staff as part of their  performance appraisal. Six common mistakes in performance appraisal are: 1. Fear of Failure There is a stubborn suspicion among many appraisers that a poor appraisal result tends to reflect badly upon them also, since they are usually the employee’s supervisor. Many appraisers have a vested interest in making their Continue reading

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Comprehensive Human Resource Strategy

Human Resource Management plays an important role in the enhancing the performance of employees in the organization. The efficient HRM policies are being designed in an organization to enhance the performance level to its maximum. Human resource management (HRM) is the process of linking the human resource functions with the strategic objectives of the organization in order to improve performance. We may call in the way that human resource management holds the central live blood role in any organization. An important aspect of an organization’s business focus and direction towards achieving high levels of competency and competitiveness would depend very much upon their human resource management practices to contribute effectively towards profitability, quality, and other goals in line with the mission and vision of the company. A comprehensive Human Resource Strategy plays a vital role in the achievement of an organization’s overall strategic objectives and visibly illustrates that the human Continue reading

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Steps Involved in Advertisement Planning

Advertisers and advertising agencies believe that customers have needs and desires, which can be fulfilled through the purchase and use of products and services. Advertising works largely through appeal of emotions of envy, fear, anxiety, about one’s appearance and lack of status. It is widely assumed that advertising works if the AIDCA formulas are followed. The formula sums up the principles of advertising. The name of the formula is derived from the initial letters of the words: Attention, Interest, Desire, Conviction and Action. The formula suggests that the attention and interests of the customers must be gained first before the process of stimulating desire, imparting conviction and urging action in advertisements can bring about a change in the buying behaviors. Steps Involved in Advertisement Planning The Attention part is the banner or headline that makes an impressive benefit promise. Interest builds information in an interesting way, usually meaning that this Continue reading

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