Organizational Health – Concept, Dimensions, and Characteristics

Management Concepts

Organizational Health Approach – Building a Strong Workplace

Modern Management Concepts

Participative Management – Workers Participation in Management

Human Resource Management

Case Study on Entrepreneurship: Larry Page

Business Analysis

The Boundaryless Career: Modern Contemperory Perspective on Career

Human Resource Management

Reserves – Meaning, Objectives and Types

A reserve is a part of the profit set aside to meet future contingencies and losses. Usually, the whole amount of profit earned by the business is not distributed to the owners or shareholders. A part of the profit is retained in the business either for meeting its unexpected future liabilities and losses or for strengthening financial position. It can be created for redeeming liabilities or replacing  depreciable assets or declaring uniform rate of dividend over years. It is created out of the profit only. If there is no profit in a particular year, no reserve can be created in that year. It is created by debiting the profit and loss appropriation account. It does not reduce the figure of net profit because it is created after determining profit. The reserve, therefore, reduces only the figure of divisible profit. It belongs to the owners and shareholders. It can be distributed Continue reading

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Evolution and Development of Life Insurance in India

Life insurance in the modern form was first set up in India through a British company called the Oriental Life Insurance Company in 1818 followed by the Bombay Assurance Company in 1823 and the Madras Equitable Life Insurance Society in 1829. All these companies operated in India but did not insure the lives of Indians. They insured the lives of Europeans living in India. Some of the companies that started later did provide insurance for Indians, as they were treated as “substandard”. Substandard in insurance parlance refers to lives with physical disability. Pioneering efforts of reformers and social workers like Raja Rammohan Ray, Dwarakanath Tagore, Ramatam Lahiri, Rustomji Cowasji and others led to entry of Indians in insurance business. The first Indian insurance company under the name “Bombay Life Insurance Society” started its operation in 1870, and started covering Indian lives at standard rates. Later “Oriental Government Security Life Insurance Continue reading

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Unit Planning and Merchandise Lists

Unit planning is an operational management tool to plan the merchandise assortment and support. It is directed at determining the amount of inventory the retailer should carry by items and by units and answers the inventory questions of how many product items or assortment and how many units of each items or support to stock. The process of unit planning involves the use of several merchandise lists which constitute a set of operational plans for   managing the total selection of merchandise. Based on the type of merchandise, the retailer carries, one or more of the following three merchandise lists namely, Basic Stock list, Model stock list and Never-out list.  These merchandise lists represent essentially the ‘ideal’ stock for meeting the consumer’s merchandise needs in terms of assortment and support. 1. Basic Stock List The “basic stock list” is a planning instrument retailers use to determine the assortment and support Continue reading

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Greiner’s Model of Organizational Growth – Phases of Organizational Growth and Crisis

All organizations pass through various stages of growth and at each stage the  organization is required to solve some specific problems. A very useful model of organizational growth has been developed by Larry E. Greiner.  In his 1998 Harvard Business Review article entitled “Evolution and Revolution as Organizations Grow,” Greiner outlined five phases of growth punctuated by what he termed “revolutions” that shook up the status quo and ushered in the successive stage. Greiner’s Model of organizational growth  is based on certain assumptions about the organization which are as under: First assumption is organisations are rigid, bureaucratic, control-centric, and centralized entities. Second, organisations fail to see that the future success of an organisation lie within their own organisation, and also fail to assess their evolving states of development. Therefore inability of a management to understand its organisation development problems can result in organisation becoming frozen in its present stage of Continue reading

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How Interest Rates Can Influence Financial Decisions?

Interest rates exert the following economic influences. Interest rates in a country influence the foreign exchange value of the country’s currency. Interest rates act as a guide to the return that a company’s shareholders might want, and changes in market interest rates will affect share prices. A positive real rate of interest enhances an investor’s real wealth to the income he earns from his investments. However, when interest rates go up or down, perhaps due to a rise or fall in the rate of inflation, there will also be a potential capital loss or gain for the investor. In other words, the market value of interest-bearing securities will alter. Market values will fall when interest rates go up and vice versa. Interest Rates are Important for Financial Decisions by Companies Interest rate is important for financial decisions by companies. The incidence of the interest rates can have the following effects. Continue reading

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Desirable Conditions for the Success of an Incentive Scheme

A good wage incentive plan should have the following characteristics. Administrative simplicity: The incentive system should be simple and must be easily understood by the workers and their representatives.   An incentives scheme, which can be understood, only by engineers and mathematicians or a scheme which involves the use of complex formulate or references and cross-references is sure to fail.   The incentive scheme should be such that workmen can calculate their own earnings easily and quickly. Minimum clerical work: The system should fit into existing system of production and cost control.   It should not involve any significant addition to the clerical work. Maximum coverage: The system should cover as many workmen as possible.   A scheme if applied to a few workmen creates a demoralizing effect on the morale of those not covered by the scheme. Direct: Incentive payments should increase at least in direct proportion to the Continue reading

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