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

Purchasing Management – Meaning and Functions

The purchasing department in any organization acts as an interface between suppliers of materials and the production function.   Since materials comprise one of the largest sources of cash outlay in any manufacturing firm, their acquisition requires careful management. The responsibilities of a purchasing department include learning the material needs of the organization, selecting suppliers and negotiating price, ensuring delivery, and monitoring cost, quality, and delivery performance. Occasionally the term procurement is used to describe the acquisition of goods and services.   This is a broader term and includes purchasing, stores, traffic, receiving, and inspection. The principal goals of purchasing are related to quality, service, price, and vendor relations.   In addition to the obvious necessity of quality purchased parts, the purchasing department must consider vendor reliability, maintenance and return policies, and other aspects of customer service.   Moreover, they must continually seek new vendors and products and be able Continue reading

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Financing of Mergers and Acquisitions

Mergers are generally differentiated from acquisitions partly by the way in which they are financed and partly by the relative size of the companies. Various methods of financing an Mergers & Acquisitions deal exist: a) Payment by cash Such transactions are usually termed acquisitions rather than mergers because the shareholders of the target company are removed from the picture and the target comes under the (indirect) control of the bidder’s shareholders alone. A cash deal would make more sense during a downward trend in the interest rates. Another advantage of using cash for an acquisition is that there tends to lesser chances of EPS dilution for the acquiring company. But a caveat in using cash is that it places constraints on the cash flow of the company. b) Equity share Financing or exchange of shares It is one of the most commonly used methods of financing mergers. Under this method Continue reading

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Levels and Stages of Planning

Levels of Planning In management theory, it is usual to consider that there are three basic levels of planning, though in practice there may be more than three levels of management and to an extent, there will be some overlapping of planning operations. The three levels of planning are discussed below: Top level planning: also known as overall or strategic planning, top level planning is done by the top management, i.e., board of directors or governing body. It encompasses the long-range objectives and policies or organisation and is concerned with corporate results rather than sectional objectives. Top level planning is entirely long-range and inextricably linked with long-term objectives. It might be called the ‘what’ of planning. Second level planning: also known as tactical planning, it is done by middle level managers or departmental heads. It is concerned with ‘how’ of planning. It deals with development of resources to the best Continue reading

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Debt Instruments – Meaning, Objectives and Features

The debt markets today are a major source of financing than the banking system. It is any market situation where debt instruments are traded. It establishes a planned environment where the debts are traded amongst the interested parties. The debt markets are known by other names based on the types of instruments are traded. For example when municipal or corporate bond are traded, debt market is called bond market whereas if notes or securities or mortgages are traded market is called credit market. The debt market is three times larger than stock/equity market. The debt markets are categorized into two other markets called money market and capital market. Money market is a subsection of the fixed income market. It specializes in short-term debts with the maturity of one-year. Capital markets specialize in long-term debts. It is a market in which financial instruments are traded by the institutions and individuals. Institutions Continue reading

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Most Important Types of Budgets in Managerial Accounting

Definitively, a budget refers to forecast of company’s incomes and expenses anticipated for a given period of time. With a budget, an organization is able to analyze how much money they are making and spending, and they are able to figure the best way to channel it among various categories and departments. Budgeting depicts the entire process of analyzing and planning using a budget. Since budgets are vital tools for management and planning, the process of budgeting generally affects all types of organizations regardless of their size and composition. Many organizations participate in budgeting process with the view of determining the most cost effective and efficient strategies of making profits and intensifying its capital and asset base. In management, budgeting guides an organization to use its scarce resources in a way that exploits the existing business opportunities well. Good budgeting concepts integrate efficient business judgment and help the management to Continue reading

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Model of Quantitative Analysis

Quantitative analysis is a scientific approach to decision making.   As a first step to decision making, decision model has to be evolved.   The decision model depends on two factors, namely the problem and the problem environment. Defining the Problem The first step in decisions making is defining the problem.   The problem (i.e. the threat, opportunity, etc.) must be fully understood as to its nature, dimensions, intensity and so on.   Take labor absenteeism.   It becomes a problem when it is rampant affecting work schedules.   (one or two absentees, here and there is no problem).   What is its nature? Deliberate absenteeism, absenteeism due to unavoidable causes, absenteeism as a mark of protest to certain managements attitudes/actions, absenteeism due to healthy/family/social reasons, etc. are indicative of the nature of the problem of absenteeism.   Specific nature must be understood, since each type of absenteeism needs a Continue reading

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