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

How to Meet Costa Rica’s 2026 VASP Requirements Without Expanding Headcount

General Business Articles

Concepts of Throughput Accounting and Theory of Constraints

Financial Management

Dynamic Provisioning in Indian Banking

Dynamic Provisioning:  The Basel II Framework is approaching dynamic provisioning by clearly requiring banks to separately measure EL(Expected Loss) and UL(Unexpected Loss). EL-based provisioning has forward-looking element as it is capable of incorporating through the cycle view of probability of default. The recent financial crisis has provided a still further fillip to the search for a forward-looking provisioning approach due to pro-cyclical considerations. Inadequacy of the Current Provisioning Policy in India:  In normal provisioning policies, specific provisions are made ex-post based on some estimation of the level of impairment. The general provisions are normally made ex-ante as determined by regulatory authorities or bank management based on their subjective judgment. While such a policy for making specific provisions is pro-cyclical, that for general provisions does not lay down objective rules for utilization thereof. Indian banks make the following types of loan loss provisions at present: General provisions for standard assets, Specific Continue reading

Abey Francis

Case Study: Effect of Poor Leadership Decisions on Organization Outcomes

Case Study The subject matter is reminiscent of the personal experience of a man named Jason D (the name has been changed for anonymity). In 2018, Mister D. was a regional manager in a company that provided telecommunications equipment. His particular unit operated in a middle-sized City X covered by three offices that reported directly to Jason. Following the examination of the 2017 statements, the headquarters decided that the combined performance of the City X unit had been sub-optimal. Therefore, the regional manager was assigned the priority task of improving the net revenues of his area by 20% in 2018 with an additional 10% increase in 2019. Jason D. and his deputies spent a month in intense consultations, attempting to determine the most fitting strategy for this objective. Several options were proposed, including hiring additional sales managers and reworking the monetary motivation system. Ultimately, Mr. D. relied on his vision Continue reading

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Importance of Planning in Management

One of the first and most important functions of management is planning. Planning consists of the process of evaluating the goals of an organization and creating a plan to meet these goals. Both Koontz and O’Donnell state that “planning is deciding in advance on what to do, when and how it will be done, and who will be doing it”. Therefore, planning is the foundation of the management role, and plays a critical part to the success of an organization by determining the means and the methods in order to achieve the objective. A key element and starting point of this process should include the development of a Mission and Vision Statement to which aids in the way an organization functions. The mission statement is the explanation of the organization’s existence, while the vision statement is the motivator in which defines the purpose and direction of the organization for not Continue reading

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Hostile Takeovers – Definition, Strategies, Examples and Defenses

The replacement of poor management is a potential source of gain from acquisition/takeover. Changing technological and competitive factors may lead to a need for corporate restructuring. If incumbent management is unable to adapt, then a hostile takeover is one method for accomplishing change. The primary reasons for a hostile takeovers can be the analysis that the target company is undervalued or has few strategic assets that directly complement the business of the acquiring company. The synergy of the resources can boost the growth trajectory of the acquiring company and can also increase its overall market share. Hostile takeovers generally involve poorly performing firms in mature industries, and occur when the board of directors of the target is opposed to the sale of the company. In this case, the acquiring firm has two options to proceed with the acquisition tender offer or a proxy fight. A tender offer represents an offer Continue reading

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Case Study: Social Anxiety Disorder Campaign by SmithKline Beecham

In 1987 Eli Lilly and Company won U.S. approval to sell Prozac, the first among a class of drugs called Selective Serotonin Reuptake Inhibitors (SSRIs) that treated clinical depression by elevating levels of serotonin–a chemical believed crucial to regulating mood–in the brain. Prozac’s effectiveness and lack of side effects compared to existing medications for depression revolutionized not only the way mental illness was treated by psychiatrists but also the way it was perceived by the public. By 1992, when Pfizer and SmithKline Beecham introduced their own SSRIs, Zoloft and Paxil, respectively, depression had lost much of its stigma in the United States. In the following years SSRIs became one of the best-selling prescription drug categories. For its first several years on the market, Paxil remained in third place among SSRIs, and SmithKline Beecham set its sights on new markets for the drug. In the mid-1990s Paxil won FDA approval for Continue reading

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Bettman Information Processing Model of Consumer Choice

Bettman (1979) in his model describes the consumer as possessing a limited capacity for processing information. He implicate that the consumers rarely analyze the complex alternatives in decision making and apply very simple strategy. In Bettman Information Processing Model, the consumer is portrayed as possessing a limited capacity for processing information. When faced with a choice, the consumer rarely undertakes very complex analyses of available alternatives. Instead, the consumer typically employs simple decision strategies or heuristics. These simplifying decision rules assist the consumer in arriving at a choice by providing a means for sidestepping the overly overburden task of assessing all the information available about all the alternatives. In Bettman Information Processing Model,  there are seven major stages. Processing Capacity:  In this step he assumes that the consumer has limited capacity for processing information, consumers are not interested in complex computations and extensive information processing. To deal with this problem, Continue reading

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