Case Study on Entrepreneurship: Larry Page

Business Analysis

The Boundaryless Career: Modern Contemperory Perspective on Career

Human Resource Management

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

What is Departmentalization?

Departmentalization is the grouping of activities and responsibilities by  sub-units  of the organization. These  sub-units  are called departments. The division of labor or degree of departmentalization is driven by the need for specialization whether by process or purpose within an organization. The most common way of process departmentalization is the division of the firm into business functions, such as purchasing, manufacturing, sales, accounting, etc. Departmentalization specifies how employees and their activities are grouped together. It is a fundamental strategy for coordinating organizational activities, because it influences organizational behavior in the following ways: Departmentalization establishes the chain of command – the system of common supervision among positions and units within the organization. It frames the membership of formal work teams and typically determines which positions and units must share resources. Thus, departmentalization establishes interdependencies among employees and subunits. Departmentalization focuses people around common mental models or ways of thinking, such as Continue reading

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The Role of the Management Accountant in Organizations

A management accountant’s duty is to provide information to users who are part of the organization from various levels. However, different levels of management has different information needs. Thus, a management accountant has to tailor the information for them. The first step that should be taken before the management accountant provides any type of information is that he should be clear and understand the company vision as the top, middle and bottom management of an organization. The top-level management is responsible for the long term strategic plan with strategic decisions for about 5 to 10 years time. Therefore the top management will create a mission, which will consist of a more specific goal that unifies company’s efforts. So, the management accountant should prepare budgets for top management accountant to decide which projects have to undertaken to achieve the company’s goals. Budget is a strategic plan that details the action that Continue reading

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Accounting Rate of Return (ARR) Method of Capital Budgeting

Accounting Rate of Return (ARR) Method Various proposals are ranked in order to rate of earnings on the investment in the projects concerned. The project which shows highest rate of return is selected and others are ruled out. The Accounting Rate of Return is found out by dividing the average income after taxed by the average investment, i.e., average net value after depreciation. The accounting rate of return, thus, is an average rate and can be determined by the following equation. Accounting Rate of Return (ARR) = Average income / Average investment There are two variants of the accounting rate of return; Original Investment Method, and Average Investment Method. 1. Original Investment Method. Under this method average annual earnings or profits over the life of the project are divided by the total outlay of capital project, i.e., the original investment. Thus ARR under this method is the ratio between average Continue reading

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About United Nations Global Compact (UNGC) – 10 Principles of UNGC

The United Nations Global Compact (UNGC) is a tactical strategy scheme for companies who commit to align their operational strategies to the principles outlined by the UNGC whose main purpose for existence is to assist businesses in managing risks and opportunities presented to them in certain areas such as the environment, society and authorities like government divisions and laws. This initiative also aims to integrate their ten principles as universal to businesses and societies for mutual benefits. It is independent of the government which entails that their rules and regulations is not government mandated law though it does support and is in-line with certain government policies that mainly focuses on the social responsibilities of a corporation. Commerce, as the main factor influencing globalization, plays a major role in societies and economies anywhere in the world. UNGC requires participating businesses to submit a Communication in Progress (COP) report once a year, Continue reading

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Asset Securitization – Meaning, Process, Parties Involved and Benefits

Asset securitization is way of financing for lenders to obtain funds in the capital markets for the origination of consumer and business loans. It is different from the traditional way of financing, where lenders finance loan origination’s with deposits. Started in 1970, the asset securitization market had a remarkable history of growth and development. By 2000, it became the largest sector of the U.S fixed income securities market. In matured capital market, asset securitization has proven to be an efficient way of financing in that it reduces the ultimate funding cost for the borrower, improves the financial operation for the lender and provides diversified investment products for the investor. The Process of Asset Securitization In today’s world, asset securitization means a process by which one entity pools its interest in a series of identifiable future cash flows and then transfers the claims on those future cash flows to another entity Continue reading

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Compare and Contrast Herzberg’s Two Factor Theory with Vroom’s Expectancy Theory of Motivation

Herzberg’s Theory of motivation suggests that there are two factors that affect human behavior and motivation at work; these are called hygiene and motivating factors. Hygiene factors are those that de-motivate staff if they are not in place, whereas motivators are those that are used to motivate staff. The five main attributes that Herzberg suggested were motivators are, recognition, achievement, responsibility, advancement and the nature of work itself. Hygiene factors include, supervision, salary, the work environment, company policies and relationships with colleagues. Vroom’s theory of motivation suggests that there is a link between effort and reward. His theory is based on an employee’s perception of their job, underlined against valence, instrumentality and expectancy. There are two types of theories concerning motivation of employees. There are content theories which assume that people have the same needs and process theories which suggest people are motivated by different things. Herzberg’s two factor theory Continue reading

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