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

10 Important Types of Innovation with Examples

Innovation is a very diverse term. In general, innovation means exploiting new ideas or change existing ones for the betterment. Innovation focuses on being creative at work. It can be technological, which includes product innovation or process innovation. Also, it can be related to changing business model, exploiting new markets, and developing new processes. The main aim of innovation it so make the business more successful. This can be done by increasing market share of an existing product or introducing a new product or reducing the cost of production. Innovation is important for both employees and the owner of the business. For the owner of the business, innovation helps to keep up with the competition. With the fast growing pace of competition, the organizations have to be on toes to keep an eye on the work of their competitors. The new processes or technologies developed by the competitors can be Continue reading

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Exit Value Accounting

Exit value accounting is a form of current cost accounting which is based on valuing assets at their net selling prices (exit prices) at the balance sheet date and on the basis of orderly sales. An exit value is the maximum price a currently held asset could be sold for in the market less the transactions costs of the sale (the net realizable value for the asset). This normative accounting theory was developed by Raymond Chambers and labeled as Continuously Contemporary Accounting (CoCoA). The theory relies on assessments of the exit or selling price of an entity’s liabilities and assets. The exit value accounting theory was developed under the following key assumptions. Firstly, firms exist to increase the owners’ wealth. Secondly, the organization’s ability to adapt to changing circumstances is the basis of successful operations and Finally, the capacity to adapt will be best reflected by the monetary value of Continue reading

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Bank Draft – Meaning and Definition

A bank draft is an order from one branch to another branch of the same bank  to pay a specified sum of money to a person named therein or to his order. A draft is always payable on demand. Banks issue drafts at the request of the customers on their branches at the place of destination for remitting money from one place to another place. Any person who wants to remit money has to purchase a draft from the bank by paying the amount in advance to the bank. The purchaser of the draft then sends the draft to the payee’s place of  residence by post or courier for the purpose of encashment at the drawee branch of the bank. The bank issuing the draft charges some commission depends upon the amount of the draft. The purchaser need not be a customer  of the bank. The bank draft is like Continue reading

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Organization Structure to Control Systems Design

A major factor differentiates the automatic control system from the management control system, is the exercise of control by human beings in the latter case. In automatic control systems, the human element is missing. It is for this reason that an understanding of organization behavior is important for the proper perception of management control systems and processes. Further, as the major focus of the control system is on the performance evaluation of the organizational sub-units, the control system designer should also have an undemanding of the organization structure. Structure refers to the way the enterprise’s organized so as to enable the total task of the organization to be performed in an efficient and effective way. The organizational structure is essentially the arrangement of its sub-systems with authority and responsibility relations. Thus, it refers to whether the organization is centralized or decentralized or whether it emphasizes line or staff or how Continue reading

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Understanding Cross-Cultural Communication in International Business

Cross-cultural communication exists when people from differing cultures have reached a certain degree of understanding regarding their differences. For understanding to take place, both people must have some form of knowledge or awareness regarding the norms or customs that exist in each other’s culture. Verbal and nonverbal communications can contain implied meanings, as well as certain degrees of symbolism. For successful communication to take place, background knowledge concerning values, norms and perceptions is necessary in order for clear, effective communication to take place. The key to effective cross-cultural communication is knowledge. It is essential that people understand the potential problems of cross-cultural communication, and make a conscious effort to overcome these problems and important to assume that one’s efforts will not always be successful, and adjust one’s behavior appropriately. For example, one should always assume that there is a significant possibility that cultural differences are causing communication problems, and be Continue reading

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Measurement Scales in Research Methodology

Certain research data are qualitative in nature. Data on attitude, opinion or behavior of employees, customers, and sales persons etc., are qualitative. The terms “attitude” and “opinion” have frequently been differentiated in psychological and sociological investigations. A commonly drawn distinction has been to view an attitude as a predisposition to act in a certain way and an opinion as a verbalization of the attitude. Thus, a statement by a respondent that he prefers viewing color to black-and-white television programs would be an opinion expressing one aspect of the respondent’s attitude toward color television. Motivation, commitment, satisfaction, leadership effectiveness, etc involve attitude measurement based on revealed opinions. These qualitative data require measurement scales for being measured. Types of Measurement Scales used in Research There are four different scales of measurement used in research; nominal, ordinal, interval and ratio. The rules used to assign numerals objects define the kind of scale and Continue reading

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