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

Stress – Causes, Challenges and Prevention Measures

Stress is a natural reaction generated within the body of a person to tackle a particular situation or event with focus, toughness and strength. The stress allows people to find out the unknown and hidden areas within them to face a situation. The stress mainly happens in two steps. One is the external stimulus referred to as the stressor that arises in an environment and the second is the response generated by the body to tackle that particular external stimulus. Stress could be basically categorised into different types. Eustress is the term that was coined to explain positive gains due to stress whereas distress is the stress that causes painfulness and negative fall backs. Hyper stress is the overreaction of a body due to the difficulties of worry or trauma and hypo stress is the under reaction or instability of a body due to an external circumstance. Chronic stress on Continue reading

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The Other Side of Entrepreneurship

People who have opposite opinions against entrepreneurship point out ten potential risks. First is management mistake that is the primary cause of business failure. Sometimes the owner of a small business lacks the leadership ability, sound judgment, and knowledge necessary to make the business work. Second is lack of business experience which indicates that most entrepreneurs tend to be beginners to be easy to make management mistakes in their own businesses. Third one is poor financial control. Effective managers realize that any successful business venture requires proper financial control. Business success also requires having a sufficient amount of capital on hand at start-up. Under-capitalization is a common cause of business failure because companies run out of capital before they are able to generate positive cash flow. Entrepreneurs tend to be overly optimistic and often misjudge the financial requirements of going into business. Fourth one is weak marketing efforts that means Continue reading

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Disequilibrium in Balance of Payments

We have noted above that the balance of payments is always in balances from accounting point of view. Besides, in the accounting procedure, a deficit in the current account is offset by a surplus in capital account resulting from either borrowing from abroad or running down the gold and foreign exchange reserves.  Similarly, a surplus in the current account is offset by a corresponding deficit in capital account resulting from loans and bills to debtor country or by  decline  of  its gold and foreign exchange reserves. However, disequilibrium in the balance of payments does arise because total receipts during the reference period need not be necessarily equal to the total payments. When total receipts do not match with total payment of the accounting period, this is a position of disequilibrium in the balance of payments. The final balance of payments position is obtained in the manner described below. For assessing Continue reading

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Different Types of Investment Portfolios

The set of all securities held by an investor is called his investment portfolio. The investment portfolio may contain just one security. However, since in general no one puts all one’s eggs in one basket, it will contain several securities. Such an investment portfolio is knows as a diversified portfolio. An investment portfolio can be classified in the light of following factors such as objectives, risk levels and the level of diversification. Investment Portfolios based on Objectives On the basis of objectives sought, a portfolio can be income portfolio, growth portfolio, mixed portfolio, tax savings portfolio or liquidity portfolio. In income portfolio, the objective is maximum current income. Small investors, investors whose current income needs are high like pensioners and unemployed persons, persons with lower tax brackets prefer income portfolios. Here the portfolio generally consist of fixed income securities like debenture/bonds/income mutual fund/equity with continuous dividend-record. Growth portfolio stress on Continue reading

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Classical Theories of Organization

Classical theories of organization are based on traditional thinking.   These theories were first propounded in the beginning of 19th century and incorporated original and initial ideas of management.   The classical theories of organization were devoted mainly to the superior’s authority, objectives, rules and economic activities.   The classical organization theories are broadly divided into Bureaucracy, Scientific management and Process management. 1. Bureaucracy The bureaucratic model developed because some people wanted to dominate others in business and other activities.   They organized men and materials for achieving objectives for their personal benefits.   This theory was given a formal shape by a German Sociologist, Max Weber, who believed that bureaucracy was an ideal weapon to harness human and physical resources.   It is a formative model of organization characterized by a large and complex atmosphere with impersonal detachment from human resources.   Rules, regulations, rigid hierarchy and specialized functions Continue reading

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Primary Stages of Research Process

Research is a source which can be draw upon to make a substantial contribution to the body of the knowledge; research should be followed by some sort of original contribution. The primary stages of any research process includes: Observation: Research start with observation, which leads to curiosity to learn more about what has been observed. Observation can either be unaided visual observation or guided and controlled observation. Sometimes a casual or associated observation leading to substantial research and a great invention. Deliberate and guided observation can also form the basis for research. While observation leads to research, research results in elaborate observation and convulsions; or even further research observation can either be subjective or objective. These are participant observation, on —participant observation, controlled observation and non-controlled observation. Interest: The observation of certain occurrences creates an interest and inquisitiveness in the mind of the researcher to study it further. This is Continue reading

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