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

Case Study on Apple: Understanding the Real Innovation Behind the iPhone

Innovation is a field of study that is simply just a new method, idea or device. However, it is also often regarded as the application of better answers that are meeting unarticulated needs, new requirements or any already existing market needs. Inside the information and communication technology sector, the mobile phone industry has become a very innovative segment. Technical advancements and new product proliferation have molded this industry into an extremely dynamic one. This has happened even after the market shares are extremely concentrated in the hands of a few giants in the industry. Innovation is the core of every successful product, organization or new venture. Apple Inc. is no exception to that. From their iPod to their Apple Newton to iPhone, Apple, Inc. from the beginning itself have provided the pomp and performance. The iPhone has transformed the mobile phone business completely, along with the internet economy and society Continue reading

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Co-ordination – Types,Techniques and Principles

In the words of Haimann, “Co-ordination is the orderly synchronization of efforts of the subordinates to provide the proper amount, timing and quality of execution so that their unified efforts lead to the stated objective, namely the common purpose of the enterprise.” Read More: Coordination in Business Management Types of Co-ordination The co-ordination may be divided on different bases, namely; 1. Scope – on the basis of scope or coverage, co-ordination can be. Internal — refers to co-ordination between the different units of an organisation within and is achieved by integrating the goals and activities of different departments of the enterprise. External — refers to co-ordination between an organisation and its external environment comprising government, community, customers, investors, suppliers, competitors, research institutions, etc.  It requires proper match between policies and activities of the enterprise and the outside world. 2. Flow – on the basis of flow, co-ordination can classified into: Continue reading

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The Objective of Shareholder Wealth Maximization

In old times, the traditional approach of companies was to maximize the owner’s profit. Modern approach puts more emphasis on Shareholder Wealth Maximization rather than owner profit maximization. This includes increasing the earnings per share (EPS) of every shareholder so that their net worth is maximized. Wealth increase is equal to what gross present worth in needed for raising profits in the future. This value needs to be discounted as per the time frame to found out the annualized rate of return for the shareholder. In Shareholder Wealth Maximization, it places priority before any other objective for the organization. Any action which has positive effective on Shareholder Wealth Maximization needs to be given priority. In any capitalistic society, the goal of business should be Shareholder Wealth Maximization as mostly the ownership of goods and services is by individuals, since, they own all the means so that they can make money. Continue reading

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Internal Recruitment

The internal recruitment is popular among organizations as well among employees. It benefits both employer as well as employees. Typically, companies post job positions on their intranet portal, establishing direct communication between hiring manager and candidate looking for change in job position. Internal recruitment (also known as internal transfer) offers many advantages to both employee as well as employer with some disadvantages. For employer, internal recruitment offers direct savings over cost of external recruitment. It also saves time, efforts and resources needed to do search for external candidate. Internal sources of recruitment facilitates direct communication happens between hiring manager and candidate on open position and avoids other formalities involved otherwise. Since internal recruits are familiar with overall operations of organization it benefits for hiring manager to minimize learning curve and hence increase in productivity. Some organizations offer specialize training courses to enhance skills so that internal human resources can be internally Continue reading

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Employee Empowerment – Meaning and Its Effectiveness

In such a competitive environment, the organizations have to continuously provide quality products, better services and need to bring innovation to stay in the business and generate profits. To conduct such activities, efficient and empowered employees are essential. In the past, the authority was not delegated to the employees and it centered on the managers who were responsible for making all the decisions in the interest of the organizations. This had limited the creativity to show up since the employees were not able to express or share their ideas. Empowerment in the recent years has been considered as the most important factor that contributes to the success of the organization. The creative energy and potentials of employees benefits the shareholders, suppliers and customers as well. Empowerment means delegation of decision making authority when there is a need to take action which is important for both the managers and employees. Following Continue reading

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Swaps Risk and Exposure

The great bulk of swap activity of date has concentrated on currencies and interest rates, yet these do not exhaust the swap concept’s applicability. As one moves out the yield curve, the primary interest rate swap market becomes dominated by securities transactions and in particular the Eurodollar bond market. The advent of the swap market has meant that the Eurodollar bond market now never closes due to interest rate levels: issuers who would not come to market because of high interest rates now do so to the extent that a swap is available. Indeed, the Eurodollar bond market owes much of its spectacular growth to the parallel growth of its swap market. The firms that now dominate lead management roles in the Eurodollar bond market all have substantial swap capabilities and this trend will continue. One extension is seen in the beginning of the market for equity swaps- an exchange Continue reading

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