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

The Customer Satisfaction Model – Based on American Customer Satisfaction Index (ACSI)

Marketing Management

Rule of Caveat Emptor

Rule of Caveat Emptor Caveat emptor is a Latin term meaning “let the buyer beware”. It is a general rule of law that a purchaser assumes the risk of his/her purchase. The intent of the rule is to place a duty of care on the buyer in selecting an item and putting forth appropriate inquiry before completing the sale. In this way, a seller is also protected from liability for buyer’s remorse. A seller is under no duty to reveal unflattered truths about the goods sold and therefore, whenever the buyer buys goods, he must exercise necessary care in his own interest. A buyer, in contract of sale of specific goods, purchases the goods at his own risk as regard as the quality, price of the goods except on the case of fraud or when any condition to that effect is laid down in the contract. A buyer cannot hold Continue reading

Abey Francis

Indian Banking Sector Reforms: Licensing of New Banks in the Private Sector

Entry of New Banks in the Private Sector As per the guidelines for licensing of new banks in the private sector issued in January 1993, RBI had granted licenses to 10 banks. Based on a review of experience gained on the functioning of new private sector banks, revised guidelines were issued in January 2001. The main provisions/requirements are listed below: Initial minimum paid-up capital shall be Rs. 200 crore; this will be raised to Rs. 300 crore within three years of commencement of business. Promoters’ contribution shall be a minimum of 40 per cent of the paid-up capital of the bank at any point of time; their contribution of 40 per cent shall be locked in for 5 years from the date of licensing of the bank and excess stake above 40 per cent shall be diluted after one year of bank’s operations. Initial capital other than promoters’ contribution could Continue reading

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Growth Potential of Retail Trading Areas

Every retailer must answer one more question before completing the trading area evaluation process. That is what holds for the future for the retail trading area ? In other words he is to foresee the growth potentials of trading areas. It is because, the marketing opportunities can change quickly or dynamically growing trading areas might turn either static or decline. The retailer either must fight to maintain present market share or be willing to survive on a smaller share without future growth. However, with the growth, the retailer has an opportunity to expand sales and market share at a reasonable amount of cost and effort. Therefore, the final step in evaluating a retail trading area is to determine the areas future growth. The retailer can very often learn what to expect by examining future conditions because, the future of a retail trading area is an outgrowth of past and present Continue reading

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Supportive Communication – Meaning and Attributes

Communication is an everyday activity. It is the ordinary interaction that occurs between coworkers, friends, acquaintances, or intimates on daily bases. Communication comes in different forms. Verbal communication which includes sounds, words, language and speaking whiles non-verbal communication involves physical ways of communication like, tone of voice, touch, smell and body language. The quality of communication and how communications are evolves and is maintained are the basis of whether a relationship amongst individuals are stable, become more intimate when appropriate and if additional information is shared between individual reflecting trust between the both parties in every facet of human life. Ineffective communication may lead individual to dislike each other, be offended by each other, lose confidence, refuse to listen and disagree to each other as well as causing a host of other interpersonal problem. Normally positive interpersonal relationships results when always things are going on well and people do what Continue reading

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Steps Involved in Designing a Remuneration Plan

Designing a remuneration plan involves the followings: 1. Job Analysis The main purpose of conducting job analysis is to prepare job description and job specification which in turn helps to hire the right quality of workforce into the organization. It helps to understand the qualities needed by employees,defined through behavioral descriptors, to provide optimum work performance. It obtains answers to such questions such as: Why does job exists? What physical and mental activities does the worker undertake? What is the job to be performed? Where is the job to be performed? How does the worker do the job? What qualifications are needed to perform the job? What are the working conditions (such as levels of temperature, noise, offensive fumes, light) What machinery or equipment is used in the job? What constitutes successful performance? There are several ways to conduct a job analysis, including: interviews with incumbents and supervisors, questionnaires (structured, Continue reading

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Method Study Procedure

Method study is the systematic recording and critical examination of existing and proposed ways of doing work, as a means of developing and applying easier and more effective methods and reducing costs. So it is the process of analyzing the methods involved in work flow to increase productivity. It deals with doing the work in a better way, with less time and effort. That is why it is also termed as work simplification. Method study procedure  is an organized approach and its investigation rests on the following six basic steps: Select the work to be analyzed. Record all facts relating to the existing method. Examine the recorded facts critically but impartially. Develop the most economical method commensurate with plant requirements Install the new method as standard practice. Maintain the new method. The above basic method study procedure was first developed and articulated by  Russell Currie  at Imperial Chemical Industries (ICI). Continue reading

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