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

The Concept of Financial Research

Here, there are several distinctions between types of research–breaking it down by style, capital structure and firm. While the main focus will be on fundamental equity and fixed income research, it will also discuss the other types of research as well as the functional roles analysts play at different types of firms. 1. Research Styles Fundamental Research:  Fundamental research takes a deep dive into a company’s financial statement as well as industry trends in order to extrapolate buy and sell investment decisions. There is no clear cut way in conducting fundamental research but it normally includes building detailed financial models, which project items such as revenue, earnings, cash flows and debt balances. Some asset   managers may focus solely on earnings growth while others may focus on returns on invested capital (ROIC). It is important for the candidate to understand the firm’s investment philosophy. This can usually be achieved by Continue reading

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Pricing of Futures Contracts Using Interest Rate Parity in Forex Trading

According to the interest rate parity theory, the currency margin is dependent mainly on the prevailing interest rate (for investment for the given time period) in the two currencies. The forward rate can be calculated by the following formula: F/S = (1+Rh)/ (1+Rf) Where, F and S are future and spot currency rate. Rh and Rf are simple interest rate in the home and foreign currency respectively. Alternatively, if we consider continuously compounded interest rate then forward rate can be calculated by using the following formula: F = S*e (rh- rf)*t Where, rh and rf are the continuously compounded interest rate for the home currency and foreign currency respectively, T is the time to maturity and e = 2.71828 (exponential). If the following relationship between the futures rate and the spot rate does not hold, then there will be an arbitrage opportunity in the market. This will force the futures Continue reading

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Basic Concepts of Organizational Change

The change means the alteration of status quo or making things different.  It may refer to any alteration which occurs in the overall work environment of  an organization. When an organizational system is disturbed by some internal or  external force, the change may occur. The change is modification of the  structure or process of a system, that may be good or even bad. It disturbs the  existing equilibrium or status quo in an organization. The change in any part of  the organization may affect the whole of the organization, or various other parts  of organization in varying degrees of speed and significance. It may affect  people, structure, technology, and other elements of an organization. It may be  reactive or proactive in nature. When change takes place due to external forces,  it is called reactive change. However, proactive change is initiated by the  management on its own to enhance the organizational Continue reading

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Cloud Computing – Models, Architecture and Characteristics

Cloud Computing, often referred to as simply “the cloud”, is a distributed architecture that centralizes server resources on a scalable platform, enabling ubiquitous access to configurable resources and services. It provides storage and access for data over the internet instead of our computer’s hard drive. Leveraging the Internet, it provides unparalleled and distributed services based on virtualization and service-oriented architecture. Cloud is not another recent technology, but rather it can be described as a delivery model for information services using existing technologies. It does an excellent job of reducing the time spent on IT infrastructure and maintenance. Cloud presents itself as a ubiquitous, dynamically scalable, and on-demand model, that can be purchased on a ‘pay-as-you-go’ basis without any prior subscription or under/overprovisioning. Cloud Computing Models 1. Service-Based Models There are three delivery models that the cloud utilizes to provide different types of services are delivered to the end-user. All the Continue reading

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Compensation Concept in HRM

The literal meaning of compensation is to counter—balance. In the case of human resource management, compensation is referred to as money and other benefits received by an employee for providing services to his employer. Money and benefits received may be in different forms — base compensation in money form and various benefits, which may be associated with employees services to the to the employer like provident fund, gratuity insurance scheme and any other payment which the employee receives or benefits he enjoys in lieu of such payment. Cascio has defined compensation as follows; “compensation includes direct cash payments, indirect payments in the form of employees to strive for higher levels of productivity.” Compensation Policy Compensation policy is derived from organizational strategy and its policy on overall human resource management. In order to make compensation management to work effectively, the organization should clearly specify its compensation policy, which must include the Continue reading

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Law of Returns to Scale

The law of returns to scale examines the relationship between output and the scale of inputs in the long-run when all the inputs are increased in the same proportion. This law  of returns to scale in economics is based on the following assumptions; All factors are variable but the enterprise is fixed. There is no change in technology. Perfect competition prevails in the market. Returns are measured in physical terms. Three Phases of the Law of Returns to Scale Depending on whether the proportionate change in output exceeds, equals or decrease in proportionate to the change in both the inputs, the production is classified as increasing returns to scale, constant returns to scale and decreasing returns to scale. 1. Increasing Returns to Scale Increasing returns to scale arises due to the following reasons. Dimensional economies, Economies flowing from indivisibility, Economies of specialization, Technical economies, Managerial economies, Marketing economies. Alfred Marshall Continue reading

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