Responsibility accounting is a system under which managers are given decision-making authority and responsibility for each activity occurring within a specific area of the company. Under this system managers are made responsible for the activities of segments. These segments may be called departments or divisions. Responsibility accounting is a system of control where responsibility is assigned for the control of costs. The persons are made responsible for the control of costs. Responsibility accounting implies a system of accounting whereby the performance of various people is judged by assessing how far they have achieved the predetermined targets set for the divisions, departments or sections for which they are responsible. Each person is responsible for his area of operation. Responsibility accounting is similar to any other system of cost such as standard costing or budgetary control but with greater emphasis towards fixing of the responsibility of the persons entrusted with the execution Continue reading
Modern Management Concepts
Concept of Organizational Climate
Organizations are social systems. Organizations combine science and people, technology and humanity. It is not possible for every organization to have the same type of technology and people and so the organizations differ in their characteristics and internal environment. The internal environment of an organization may be called the organizational climate. Organizational climate, a guide for dealing with people serves as a major influence on motivation and productivity of individuals and total work force. Organizational climate may be noted as the ‘personality’ of an organization as conceived by its employees. The organizational climate usually has a major influence on motivation, productivity and job satisfaction. The organizational climate is the major motivating factor responsible for satisfaction and dissatisfaction of employees in an organization and affects the quantum of employees’ turnover and satisfaction. It refers to the entire social system of a working group. Campbell defines organizational climate as a “set of Continue reading
Risk Management in Business
Kaplan and Garrick (1981, p. 12) provide a simple equation for risk, which is “risk = uncertainty + damage”. They believe that it is irrelevant as to what context risk exists in, and that the same equation can always be used to identify and manage risk. However, risk can still be categorized differently depending on what facet of the organization it is affecting. Before a risk management strategy can be decided upon, the risk event must first be identified. An organization should conduct three steps before deciding on the best risk management strategy to use. As risk management can use a substantial amount of resources, clarification and direction should be decided upon before conducting risk management. The three factors are; Identification of the risk: The organization should first review all of the possible risk sources. Furthermore, they could use a risk assessment tool to identify the risk event that may Continue reading
Knowledge – Definition and Types
Knowledge is a very slippery concept with many different variations and definitions, each of which is valid in its own right. The nature of knowledge and what it means to know something are epistemological questions that have perplexed philosophers for centuries and no resolution looms on the horizon. According to Webster’s Dictionary, knowledge is “the fact or condition of knowing something with familiarity gained through experience or association”. In practice, though, there are many possible, equally plausible definitions of knowledge. A frequently used definition of knowledge is “the ideas or understandings which an entity possesses that are used to take effective action to achieve the entity’s goal(s). This knowledge is specific to the entity which created it.” There are two basic kinds of knowledge in an Organization: Explicit and Tacit. Explicit knowledge is knowledge that has been articulated and, more often than not, captured in the form of text, tables, Continue reading
What Is a Chief Learning Officer (CLO)?
A Chief Learning Officer’s main job is to grow an organization by developing a process of learning. This role continues to change, morph, and evolve as things change such as the overall econonmy, increase in globalization, and growth of technology. This evolution requires organizations to learn faster or face the reality of not being able to survive. Companies that implement ongoing learning objectives are able to reinvent themselves and adapt to change proactively, while stagnant organizations are often reactive in strategy and are unable to catch up or adjust to the changing environment. Learning needs to happen quickly, affordable, and clearly in order for a company to get a competitive advantage over others. Companies need to be able to learn from success and failures in order to manage change and turn these oppurtunities into improvement. Some common themes of learning companies include knowledge or data being continuously transferred, stored, and Continue reading
Concept of Green Marketing
In today’s business world, environmental issues plays an important role in marketing. All most all the governments around the world have concerned about green marketing activities that they have attempted to regulate them. Many people believe that green marketing refers solely to the promotion or advertising of products with environmental characteristics. Generally terms like Phosphate Free, Recyclable, Refillable, Ozone Friendly, and Environmentally Friendly are some of the things consumers most often associate with green marketing. In general green marketing is a much broader concept, one that can be applied to consumer goods, industrial goods and even services. For example, around the world there are resorts that are beginning to promote themselves as “ecotourism” facilities, i.e., facilities that specialize in experiencing nature or operating in a fashion that minimizes their environmental impact. Thus green marketing incorporates a broad range of activities, including product modification, changes to the production process, packaging changes, Continue reading