Outsourcing of Training and Development

Organizations now are using a unique approach to provide training internally by outsourcing their training departments. This they have found is a way that reduces costs improves productivity and relives them from the need of constant upgradation. Handing over the organizations training function over to “experts” in many ways also improves the quality of training. These experts have a lot of advantages; they are constantly upgrading themselves to differentiate themselves from the competition and add value to their clients, by virtue of the multiple clients they serve – they have an upfront feel of the best industry practices; training costs can be tracked more objectively and can help align your training’s with your strategic objectives in a far better manner.

Outsourcing of training and development activities means comprehensive, end-to-end outsourcing—from the management of the training function to the design, delivery and reporting. Training BPO refers to the transfer of management and execution of one or more complete ongoing training and development processes or the entire training function to an external services provider. For many companies, outsourcing employee training and development makes financial as well as business sense.

Outsourcing of training and development functions makes a lot of sense for most organizations. The training function is often a decentralized operation. Most companies are unsure of how much they spend on training across the enterprise, and don’t really know what or how much they need. Of course the process of identification, analysis, design, development, deployment and evaluation varies from group to group, department to department and division to division, even within an organization.… Read the rest

Foreign Currency Swap or Foreign Exchange Swap

Each entity has a different access and different needs in the international financial markets. Companies receive more favorable credit ratings in their country of domicile than in the country in which they need to raise capital. Investors are likely to demand a lower return from a domestic company, which they are more familiar with than from a foreign company. In some cases a company may be unable to raise capital in a certain currency. Currency swaps are also used to lower the risk of currency exposure or to change returns on investment into another, more favorable currency. Therefore, currency swaps are used to exchange assets or capital in one currency for another for the purpose of financial management.

A currency swap transaction involves an exchange of a major currency against the U.S. dollar. In order to swap two other non- U.S. currencies, a dealer may need to arrange two separate swaps. Although, any currency can be used in swaps, many counter-parties are unable to exchange their currencies due to a lack of demand. Since currency swaps involve die exchange of two or more types of currencies, the actual exchange of principals takes place at the commencement and the termination of the swaps. On certain occasions, the exchange occurs only at the inception of the swap depending on the nature of the swap. The exchange of principals is necessary because of the fluctuation of currencies. Also, counter parties may need to utilize the respective exchanged currencies. Principals and interest payments are exchanged based on the spot rate agreed at the inception of the swaps.… Read the rest

Top Ten Advertising Mantras For Small Business

What will be the best resort for advertising and marketing especially for small scale companies needs to be identified. Here there are the top ten low-cost advertising methods which managers will find very useful.

  1. Creating your own Website: Today, when more and more people are turning internet savvy; for any company to come into the public eye having a company’s website is a must. A research has put forth that seventy percent of potential buyers’ first research about the product or service on the internet before walking to a mall or showroom to buy the product or service. If companies cannot invest money, then there are also free blogs and websites which offer domain names as preferred. Also, remember to market your website or blog by employing means of social media. Social media culture is on a rise, and publicizing about your presence on such platforms can result in potential success.
  2. Brand Tie-ups and Cross Promotions: Hunt for companies that pitch to similar customer base and their product or service could compliment with that of yours. This will result in sharing the customer base thus widening the number of potential customers. Also, creating a marketing campaign on a share basis could be mutually beneficial to both the companies.
  3. Conduct Seminars over different Mediums: Yes, seminars no longer connote that meetings have to take place in person. There are different mediums over which such seminars can be held. Those which take place over the internet are referred to as Webinars. This is a much cost effective way as all the participants are attending the seminar from the convenience of their homes or offices.
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Design and Placement of the Corporate Communication Function

The need to centralize or decentralize usually comes down to weighing the considerations of company size, product, or service diversity, and geographic spread. For a company as diverse and large as General Electric, for example, the question was moot. Such a huge, diverse organization involved in activities as different as aerospace and network television cannot possibly remain completely centralized in all of its communication activities. Perhaps then, the best structure for large companies is some combination of a strong, centralized, functional area plus a network of decentralized operatives helping to keep communications consistent throughout the organization while adapting the function to the special needs of the independent business unit.

Despite its advantages, the mix of centralized and decentralized activities presents problems for organizations in terms of reporting relationships. If the communications operatives report to their local managers, as they inevitably would, they will run into problems when the manager from headquarters disagrees with an action taken at the local level. On the other hand, if they report to headquarters, the operatives may not fit in with the rest of the organization at the local level.

These problems can often be handled creatively using some combination of both a strong centralized control for all affairs related to communications through out the company and the participation of the local operatives who, as in the case of General Electric, act as “reporters” back at headquarters. The problem of centralization versus decentralization across business units will be more or less important depending on company size, geographic dispersion, and the diversity of the company’s products and services.… Read the rest

Role of Case Studies in Employee Training and Development

One way to help trainees learn analytical and problem solving skills is by presenting a story (called a case) about people in an organization who are facing a problem or decision. Cases may be faced on actual events involving real people in an organization, or they can be fictional. Business case studies are included in college text books and courses in management, public administration, law, sociology, and similar subjects. They are increasingly available using video and other media. While cases vary in complexity and detail, trainees should be given enough information to analyze the situation and recommend their own solutions. In solving the problem, the trainees are generally required to use a rational problem-solving process that includes the following steps:

  1. Restating important facts.
  2. Drawing inferences from the facts.
  3. Stating the problem or problems.
  4. Developing alternative solutions and then stating consequences of each.
  5. Determining and supporting a course of action.

Proponents of the case study method argue that this form of problem solving within a management setting offers illustrations of the concepts employees are respected to learn and use, improves communications skills, and facilities the linking between theory and practice. Proponents also claim that cases allow participants discuss, share, and debate the merits of different inferences, problems, and alternative courses of action. Such insight can help employees to develop better analytical skills and improve their ability to integrate new information.

A business case study can present a real-life situation, which lets trainees to consider what they would do. It can present a wide variety of skills in which applying knowledge is important.… Read the rest

Welfare Economics

“The greatest meliorator of the world is selfish, huckstering trade.” (R.W. Emerson, Work and Days)

Welfare Economics is a normative branch of economics that is concerned with the way economic activity ought to be arranged so as to maximize economic welfare. The hallmark of welfare economics is that policies are assessed exclusively in terms of their effects on the well-being of individuals. Accordingly, whatever is relevant to individuals well-being is relevant under welfare economics, and whatever is unrelated to individuals well-being is excluded from consideration under welfare economics. Economists often use the term utility to refer to the well-being of an individual, and, when there is uncertainty about outcomes, economists use an ex ante measurement of well-being, so-called expected  utility. Welfare economics employs value judgement s about what ought to be produced, how production should be organized, the way income and wealth ought to be distributed, both now and in the future. Unfortunately, each individual in a community has a unique set of value judgements, which are dependent upon his or her attitudes, religion, philosophy and politics, and the economist has difficulty in aggregating these value judgement s in advising policy makers about decisions that affect the allocation of resources (which involves making interpersonal comparisons of utility).

The branch of economics called welfare economics is an outgrowth of the fundamental debate that can be traced back to Adam Smith, if not before. It is the economic theory of measuring and promoting social welfare. In The Wealth of Nations, Book IV, Smith wrote: “Every individual necessarily labors to render the annual revenue of the society as great as he can.… Read the rest