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

Offer and Acceptance

One of the early steps in the formation of contract lies in arriving at an  agreement between the contracting parties by means of offer and acceptance.  One party makes a definite proposal to the other, and that other accepts it in its  entirety. Offer An offer is also called a proposal. Sec.2 (a) of the Indian Contract Act  defines a proposal as, “When one person signifies to another his willingness to  do or to abstain from doing anything, with a view to obtaining the assent of that  other to such act or abstinence, he is said to make a proposal”. The person  making the proposal is called the “proposer”, or “offeror” and the person to  whom the proposal is made is called the “offeree”. Essentials of Valid Offer It must contain definite, unambiguous and certain and not loose and vague  terms. It must intend to give rise to legal relationship. Continue reading

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The Baumol Model of Innovation

The main idea behind Baumols model is that Innovation is the motivating force behind the growth miracle of capitalism. In the neoclassical theory of the firm, firms compete based on price, but William Baumol argues that in a Capitalist economy innovation rather than price is the main competitive dimension and less innovative firms will find their markets shrinking as they lose business to their more innovative competitors. Thus, innovation is essential to the survival of firms in a capitalist economy. Baumol argues that innovation has replaced price as the most important factor that lies behind economic growth. He suggests that even though it has been recognized that important innovations stem from small firms, individuals or entrepreneurs, the bulk of innovative activity however is carried out by large oligopolistic firms. Baumol’s argument supports Schumpeter’s distinction between entrepreneurs led and routinized innovation. Schumpeter held that technological competition was the form of competition Continue reading

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Enron Scandal – The Evolution of Business Ethics

Aristotle said, “The end and purpose of the polis is the good life”. Adam Smith categorized the good life in terms of material goods and intellectual and moral excellence’s of character. Smith in his The Wealth of Nations commented, “All for ourselves, and nothing for other people, seems, in every age of the world, to have been the vile maxim of the masters of mankind.” Ethical misconduct has become a key concern in business today. Ethics is the main area of corporate governance, and management must take responsibility for their actions on global community scale. Ethics in business and shareholders desires for profitability are not always put on the same pedestal, and it is the responsibility of the executive management to ensure ethics surpass profitability. The 2008 financial crisis initiated critics to inquire about the ethics of the executives who were put in charge of large financial institutions around the Continue reading

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Distribution Objectives

Interrelated objectives: A firm’s distribution objectives will ultimately be highly related–some will enhance each other while others will compete. For example, as we have discussed, more exclusive and higher service distribution will generally entail less intensity and lesser reach. Cost has to be traded off against speed of delivery and intensity (it is much more expensive to have a product available in convenience stores than in supermarkets, for example). Narrow vs. Wide reach: The extent to which a firm should seek narrow (exclusive) vs. wide (intense) distribution depends on a number of factors. One issue is the consumer’s likelihood of switching and willingness to search. For example, most consumers will switch soft drink brands rather than walking from a vending machine to a convenience store several blocks away, so intensity of distribution is essential here. However, for sewing machines, consumers will expect to travel at least to a department or Continue reading

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Rights Offering (Issue)

Whenever an existing company wants to issue new equity shares, the existing shareholders will be potential buyers of these shares. Generally the Articles or Memorandum of Association of the Company gives the right to existing shareholders to participate in the new equity issues of the company. This right is known as ‘pre-emptive right’ and such offered shares are called ‘Right shares‘ or ‘Rights issue‘. A rights issue involves selling securities in the primary market by issuing rights to the existing shareholders. When a company issues additional share capital, it has to be offered in the first instance to the existing shareholders on a pro-rata basis. This is required in India under section 81 of the Companies Act, 1956. However, the shareholders may by a special resolution forfeit this right, partially or fully, to enable the company to issue additional capital to public. Under section 81 of the Companies Act 1956, Continue reading

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Total Quality Management (TQM) Implementation

Total Quality Management (TQM) is a method by which management and employees can become involved in the continuous improvement of the production of goods and services. It is a combination of quality and management tools aimed at increasing business and reducing losses due to wasteful practices. Total Quality Management (TQM)    views an organization as a collection of processes. It maintains that organizations must strive to continuously improve these processes by incorporating the knowledge and experiences of workers. The simple objective of TQM is “Do the right things, right the first time, every time.” TQM is infinitely variable and adaptable. Although originally applied to manufacturing operations, and for a number of years only used in that area, TQM is now becoming recognized as a generic management tool, just as applicable in service and public sector organizations. A preliminary step in Total Quality Management (TQM) implementation  is to assess the organization’s Continue reading

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