What You Need to Master SEO in 2024

General Business Articles

6 Secrets to Successful Franchise Leadership

General Business Articles

8 Side Hustles You Can Start Today

General Business Articles

How To Improve Your Finances in 2024

General Business Articles

Sustainable Strategies for Modern Workplaces: A Practical Guide

General Business Articles

Team Based Compensation System

Teams have become a popular way to organize business because they offer companies the flexibility needed to meet the demands of the changing business environment. While many companies have been quick to organize their workforce into teams, they have not been as eager to implement team-based compensation systems. However, if team-based organizations continue to utilize old, individually-oriented pay systems, they will not fully realize the benefit of highly cooperative and motivated work teams.

Team compensation is a way of rewarding performance in team settings. That is, individuals are rewarded based on the performance of the team as opposed to individual performance.… Read the rest

Abey Francis

Competency Based Compensation System

In the 1990s, a new idea gained acceptance in a number of organizations that more closely aligned human resource practices with organizational strategies, missions and cultures. A number of organizations switched from a traditional job-based structure to a competency-based structure that emphasized the development and attainment of behaviors, knowledge and skills compatible with and aligned to the organization’s mission and business strategies.

The focus of competencies is centered on characteristics of the employee, including behaviors, skills and knowledge that can be demonstrated and positively affect the organization. Competencies emphasize the attributes and activities that are required for an organization to be successful.… Read the rest

Abey Francis

Investment Diversification

Diversification is the strategy of combining distinct asset classes in an investment portfolio in order to reduce overall portfolio risk. In other words, investment  diversification is the process of selecting the asset mix so as to reduce the uncertainty in the return of an investment portfolio. Diversification helps to reduce investment risks because different investments may rise and fall independent of each other. The combinations of these assets will nullify the impact of fluctuation, thereby, reducing risk.

Most financial assets are not held in isolation, rather they are held as parts of portfolios. Banks, pension funds, insurance companies, mutual funds, and other financial institutions are required to hold diversified portfolios.… Read the rest

Abey Francis

Risks Associated With Investments

In the context of an investment, a situation of certainty is one in which the return from the investment is known for sure. Let us say, an individual invests in government securities and holds them to maturity. The individual can be sure about the redemption of the amount invested on maturity and payment of interest. Therefore, his/her rate of return is known for sure.

The term risk, in the context of investments, refers to the variability of the expected returns. It is an attempt to quantify the probability of the actual return being different from the expected return. Though there is a subtle distinction between uncertainty and risk, it is common to find the use of both the terms interchangeably.… Read the rest

Abey Francis

What is Investment ? – Concept, Definition and Features

Concept of  Investment  

Man, it is said, lives on hope. But, hope is only a necessary condition for life, but not sufficient. There are many other materialistic things that he needs – food, clothing, shelter, etc. And, like his hope, his needs too keep changing through his life. To make things more uncertain, his ability to fulfill the needs too changes significantly. When his current ability (current income) to fulfill his needs exceeds his current needs (current expenditure), he saves the excess. The savings may be buried in the backyard, or hidden under a mattress. Or, he may feel that it is better to give up the current possession of these savings for a future larger amount of money that can be used for consumption in future.… Read the rest

Abey Francis

Adjusted Book Value Method of Corporate Valuation

In recent years, management consulting firms have started offering companies advice on how to increase value. This has been possible because of the fear of hostile takeovers. Companies have increasingly turned to “value consultants” to tell them how to restructure, increase value, and avoid being taken over. The consultants suggestions have often provided the basis for the restructuring of these firms. The value of a firm can be directly related to decisions that it makes: on which projects it takes, on how it finances them, and on its dividend policy. Understanding this relationship is key to making value increasing decisions and to sensible financial restructuring.… Read the rest

Abey Francis