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

Activity Based Costing (ABC) – Definition, Benefits and Weakness

Traditional or Absorption Costing System reflects full cost pertaining to a product. It is easy to use and, therefore, is practiced widely. The allocation of overhead costs under the system is based on a rate determined by either a percentage of direct labor cost or number of labor hours worked or another. Therefore, the reported allocation of overheads for a given product may be incorrect. It is the main defect of absorption costing. During 1980’s, the limitations of absorption costing system were felt with severity. Companies were looking for a system that could reflect true product cost in order to fight competition. The absorption costing system was designed decades ago, when most companies produced narrow range of products. Further, overhead costs were small enough to make a big difference in the identification of cost of a product. This criticism of absorption costing led to generation of the idea of ABC Continue reading

Abey Francis

Steps in Rational Decision Making

Effective decision-making process requires a rational choice of a course of action. There is a need to define the term rational here. Rationality is the ability to follow systematically, logical, thorough approach in decision making. Thus, if a decision is taken after thorough analysis and reasoning and weighing the consequences of various alternatives, such a decision will be called an objective or rational decision. Therefore rationality is the ability to follow a systematic, logical and thorough approach in decision-making process. Gross suggested three dimensions to determine rationality: (i) the extent to which a given action satisfies human interests; (ii) feasibility of means to the given end; (iii) consistency. Steps of decision-making process are given below: Diagnosing and defining the problem: the first step in decision-making is to find out the correct problem. It is not easy to define the problem. It should be seen what is causing the trouble and Continue reading

Abey Francis

What is a Business Plan?

“If you don’t have the road map, you really are putting yourself at a serious disadvantage.”–   James A. Lowery Business planning tends to get treated as an academic exercise by many writers and consultants. They talk about such things as ”the planning process,” ”deriving a strategy,’’ ‘‘the organizational hierarchy,” and ”modeling approaches.” However, planning should not be viewed as an academic exercise. Entrepreneurs can enhance their chance of success by taking time to write a business plan. The process of thinking about your business venture and then articulating it on paper will assist you in thinking through how you are going to accomplish your goal. What is a Business Plan? Every business operates under a plan: the absence of a plan is itself a kind of plan. In the small business environment plans tend to be informal: they arise from periodic discussions between the principals and are understood as Continue reading

Abey Francis

Emergence/History of Derivatives

The history of derivatives is so vast and is interesting to know that derivatives dated back to 16th century. Like forward delivery contracts, where the asset is to be delivered on specific date and time for an agreed fixed rate existed in the ancient Greek and Rome times, where the emperors of that time entered into these kind of contracts to overcome the foreseen problems, like falling short of grains required at the times of masses. Interestingly they worked out and thus gave a pavement to the new way of trading between farmers and merchants. Due to the uncertainty of prices and supply merchants started entering into the futures contracts with the farmers which was termed as “to-arrive” contract which allowed trader and farmer to trade with lock – in price. This made sense as it was safe for both the farmers and traders, from the farmer’s point of view Continue reading

Abey Francis

Features of Forward Exchange Contract

The following are the features of a forward exchange contract. FEDAI has also laid down certain guidelines defining certain aspects of forward exchange contract. a) Parties: There are two parties in a forward exchange contract. They can be, A bank and a customer. Two banks in the same country. Two banks in different countries. b) Amount: forward exchange contracts are entered into for a definite sum expressed in foreign currency. c) Rate: the rate at which the conversion of foreign exchange is to take place at a future date is agreed upon at the time of signing the forward contract which is known as the contracted rate and is to be mentioned in the contract. d) Date of Delivery: Date of delivery in a forward contract means the future date on which the delivery of foreign exchange is to take place and is computed from the spot date or date of Continue reading

Abey Francis

Visionary Leadership Style – Meaning, Benefits and Challenges

Visionary Leadership is defined as an operation to influence others in order to create a better future and solve problems in an innovative way. Visionary leaders are those which have the ability to see the capabilities in others have the tendency to lead them. This type of leadership style creates a positive momentum and endurance in an organization. However, the visionary leadership style is most effective when an organization needs a new and clear direction to follow. Employees or people who performed under visionary leaders always enjoy working with them and truly want themselves to reach their full potential and find meaning in their work. Visionary leaders are somewhere different from other leaders as they always inspire, encourage, empower and equip their team members for a better outcome. Therefore, if businesses is looking for moving to a next high level and takes on new initiatives or re-evaluate their vision, then Continue reading

Abey Francis