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

By-Product – Meaning and Accounting Treatment

Salable or usable products having a relatively low value incidentally realized in the course of manufacturing the main product is called by-product. In many instances, there may be several joint products and several by-products depending upon the nature of the input raw materials being processed. A by-product is an outcome that does not make tangible contribution to the sales revenue. The economic value of by-product, comparing it with the main product, is comparatively low. By-product in the course of sugar production are Bagasse of solid waste and molasses of sweet semi-liquid product. Poultry farm in delivering chicken meat to the market gets poultry leftover parts such as poultry fathers, bones, beaks, feet and poultry fat as by-product. The fibers and outer shell of coconut are the by-products residue of coconut oil and product. Accounting Treatment of By-Product By-product accounting depends on the circumstances under which it is realized. The following could be Continue reading

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Characteristics of Effective Teams

Many authors have written various features that they believe are essential for team effectiveness. Having read them it can be suggested that the following are the features of an effective team: Clear Understanding of the Goals/Objectives:  Perfect understanding of what the goals of the team are, is very important. Every member of the team should be able to talk for the team on the progress of their project when called upon. However, this happens when every member of the team understands the team’s goal and can tell if they are making progress or not. Shared Values:  Effective teams share desires to succeed at whatever they do. They have a common sense of purpose. The team must agree that the work they are doing is worthwhile and that their goals are worth making the effort to achieve. Members interact and work independently to achieve team objectives. They take collective responsibility for Continue reading

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Point Rating Method of Job Evaluation

Point Rating technique  is the most widely used system of job evaluation. The  method evaluates the compensable factors of each job. It involves a more  detailed, quantitative and analytical approach to the measurement of job work.  Under this method of job evaluation, jobs are broke down based on various identifiable factors  such as skill, effort, training, knowledge, hazards, responsibilities and so on.  Thereafter, points are allocated to each of these factors. Weights are given to  factors depending on their importance to perform the job. Points so allocated to  various factors of a job are then summed. Then, the jobs with similar total of  points are placed in similar pay grades. The sum of points gives an index of the  relative significance of the jobs that are rated. Point Rating System requires six steps and is usually implemented by a job evaluation  committee or by an individual analyst. Determine critical factors Continue reading

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Case Study on Business Ethics: Holiday Cheer or Ethical Dilemma?

Williams had joined Star Corporation, one of the leading consumer electronics company, only a few days back as the Purchase Manager and he was going through the employees conduct manual. He was attracted by the clause, prohibiting acceptance of gifts by the employees of the purchase department. It read as follows: “Purchase department employees shall not accept gifts from vendors. This is to ensure that no vendor is given any special treatment and the employees work only in the best interest of the firm at all times. Any deviation from the above would be dealt with severely and could mean dismissal from the firm.” Williams remembered his experience with his previous firm, Maple Corporation, where he had worked from 2000 for six years as purchase head prior to joining the Star Corporation. It was only six months since he was with the Maples when it was New Year. With the Continue reading

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ERP Process

Enterprise Resource Planning software offers you many modules which are tightly integrated with each other. The modules handle all functions related to engineering, Sales, planning, materials, manufacturing, finance, HR etc. Multiple locations can be seamlessly integrated into a single ERP System. Process is nothing but a systematic flow of work done. Process management is defined as the collection of activities corresponding to the planning and observing the effectiveness of a certain business process. This is true to ERP process too. ERP implementation some times calls for cultural changes in the enterprise. Typically ERP process has the following stages. Strategic planning, Readiness assessment, Vendor assessment and selection, Plan for Implementation, Implementation and post Implementation Assessment. Strategic Plan is to define the need and to provide the rationale for the implementation of Enterprise Resource Planning systems. This first step of ERP process some times is the most difficult and may take few Continue reading

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Assuring Quality in the Product Development Process

A venture isn’t fruitful in light of the fact that it has been finished on schedule and inside a spending plan. There is one other factor that is basic to progress: quality. Regardless of how rapidly and inexpensively a task is finished, partners won’t be upbeat if the nature of the item or administration doesn’t live up to their desires. Along these lines, one significant technique to follow and examine the nature of the task and ensure it meets the necessities of the clients is Quality affirmation. QA according to ISO 9000 is characterized as “a component of value the executives concentrated on giving certainty that quality prerequisites will be satisfied”. This deformity counteractive action in quality confirmation contrasts unpretentiously from imperfection recognition and dismissal in quality control and has been alluded to as a move left since it centers around quality prior all the while. The expressions “quality affirmation” Continue reading

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