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

Risk Management in Banks: Regulatory Issues and Capital Adequacy

Individual banks risks create Systematic risk, i.e., the risk that the whole banking system fails. Systematic risk results from the high interrelations between banks through mutual lending and borrowing commitments. The failure of single institution generates a risk of failure for all banks that have ongoing commitments with the defaulting bank. Systematic Risk is a major challenge for the regulator. A number of rules, aimed at limiting risks in a simple manner, have been in force for a long time. For instance, certain ratios are subject to minimum values, say Capital Adequacy Ratio, certain caps are placed viz., Single Borrowers etc., so as to limit the risks. The main enforcement of such regulations is Capital Adequacy. That is by enforcing a capital level in a level in a line with risks, regulators focus on pre-emptive (in-anticipation) actions limiting the risk of failure. Guidelines are defined by a group of regulators Continue reading

Abey Francis

How do Banks Increase their Liquidity?

Firstly it is necessary to define liquidity and explain the reason that liquidity is so important for banks. Liquidity is essentially immediately spendable funds or the ability to convert assets into spendable funds, quickly and easily without a significant loss. Banks need liquidity because of demands for spendable funds. These demands mainly come from customers wishing to withdraw money from their accounts and from customers with credit requests, either in the form of new loans or drawings upon existing credit lines. However, banks will also have a demand for liquidity for other reasons including paying off liabilities that they have for example loans from other banks, or the central bank, payment of income taxes, and the paying of cash dividends to their shareholders. Sources of liquidity that banks have available to them fall into two categories; asset liquidity and borrowed liquidity, with most banks tending to use a mix between Continue reading

Abey Francis

Factors Influencing Wage and Salary Administration

The wage payment is an important factor affecting the labor management relations. Workers are very much concerned with the rates of wages as their standard of living is linked to the amount of remuneration they get. Managements, however, do not come forward to pay higher wages because cost of production goes up and profits decrease to that extent. A number of factors, thus, influence the remuneration payable to the employees. The factors influencing Wage and Salary Administration  can be categorized into (i) External Factors and (ii) Internal Factors. 1. External factors influencing Wage and Salary Administration Demand and supply : The labor market conditions or demand and supply forces operate at the national and local levels and determine organizational wage structure. When the demand of a particular type of labor is more and supply is less then the wages will be more. On the other hand, if supply of labor Continue reading

Abey Francis

By-Product – Meaning and Accounting Treatment

Salable or usable products having a relatively low value incidentally realized in the course of manufacturing the main product is called by-product. In many instances, there may be several joint products and several by-products depending upon the nature of the input raw materials being processed. A by-product is an outcome that does not make tangible contribution to the sales revenue. The economic value of by-product, comparing it with the main product, is comparatively low. By-product in the course of sugar production are Bagasse of solid waste and molasses of sweet semi-liquid product. Poultry farm in delivering chicken meat to the market gets poultry leftover parts such as poultry fathers, bones, beaks, feet and poultry fat as by-product. The fibers and outer shell of coconut are the by-products residue of coconut oil and product. Accounting Treatment of By-Product By-product accounting depends on the circumstances under which it is realized. The following could be Continue reading

Abey Francis

Characteristics of Effective Teams

Many authors have written various features that they believe are essential for team effectiveness. Having read them it can be suggested that the following are the features of an effective team: Clear Understanding of the Goals/Objectives:  Perfect understanding of what the goals of the team are, is very important. Every member of the team should be able to talk for the team on the progress of their project when called upon. However, this happens when every member of the team understands the team’s goal and can tell if they are making progress or not. Shared Values:  Effective teams share desires to succeed at whatever they do. They have a common sense of purpose. The team must agree that the work they are doing is worthwhile and that their goals are worth making the effort to achieve. Members interact and work independently to achieve team objectives. They take collective responsibility for Continue reading

Abey Francis

Point Rating Method of Job Evaluation

Point Rating technique  is the most widely used system of job evaluation. The  method evaluates the compensable factors of each job. It involves a more  detailed, quantitative and analytical approach to the measurement of job work.  Under this method of job evaluation, jobs are broke down based on various identifiable factors  such as skill, effort, training, knowledge, hazards, responsibilities and so on.  Thereafter, points are allocated to each of these factors. Weights are given to  factors depending on their importance to perform the job. Points so allocated to  various factors of a job are then summed. Then, the jobs with similar total of  points are placed in similar pay grades. The sum of points gives an index of the  relative significance of the jobs that are rated. Point Rating System requires six steps and is usually implemented by a job evaluation  committee or by an individual analyst. Determine critical factors Continue reading

Abey Francis