Jun 9, 2011

HR notes- Job Design

Job design is the process of:
a)  The decision as to the contents of the contract.
b)  Decision methods for carrying out the work.
c)  The decision as to the relationship that exists within the organization.

Job analysis helps to develop the design of design tasks and employment conditions for employment with human qualities to do the job.
Factors affecting the design of tasks: - There are several factors that influence the design of work in the company.

Organizational factors: -
Organizational factors to factors within the organization, job design is related to their influence

Job characteristics: -
job characteristics refer to characteristics of the work, which involved the type of work and tasks because the organization decides how the design work must be done ever. Incase the company was not able to name many people, one job can have many tasks and vice versa.

Process or workflow within the organization: -
There is a certain order, to perform in jobs within the company. Incase the company wishes it could combine similar job and give it to someone what happened, if all jobs can come one after another in a sequence.

Ergonomics 
Ergonomics refers to good work, skills and personal qualities of the individual and providing a desktop environment that the person to complete the work faster and to help in a proper manner.

Working methods: -
Each organization has its own ways of working. Although the work is the same method to do the work differs from company to company. This is called an internship and it affects the design of tasks.

Environmental factors: -
Environmental factors that influence job design are:

Staff availability and capacity: -
Some countries face the problem of shortage of skilled workers. You are not able to staff some level of education for employment and must travel to other countries through the design of jobs are obtained affected.

Social and cultural expectations: -
The social and cultural conditions of each country is different, so if a multinational appoint an Indian, he is taken into account, such as festivals, to take the good times, the time of loss, adjust, etc in Indian conditions. This applies to all countries and therefore did design work accordingly.

Behavioral factors: -
Job design is affected by behavioral factors as well. These factors are:

Rating: -
Job design is generally prepared on the basis of job analysis and job analysis requires the employee feedback employee feedback on this place any other activity is based. Many people are not interested in a true return because of fear and uncertainty. This in turn paid tribute to employment.

Autonomy: -
Each employee and indeed a measure of freedom, its work. This is called self. So if we design a work we need to ensure that autonomy of the worker that he wear his work is actually provided, see prepare.

Variety: -
If the same job, she repeats again and again leads to stress and monotony. This leads to apathy and negligence at work. Therefore, during the preparatory work to ensure some diversity of design, the person to keep the work interesting.

HR notes-Job analysis

A job is defined as a series of duties and responsibilities that are given together with a specific employee. Job analysis is the process of investigation and recording of information on the operations and responsibilities of a particular task.
Job analysis is divided into 2 parts.
a) a job description
if the employment details are given.
b) specification of employment
where we explain the qualities of people seeking work required.
Methods of work analysis
There are various methods used by the organization to gather information and job analysis. These methods are

Personal Note: -
In this method, the viewer is actually watching the worker concerned. He made a list of tasks that the worker and the qualities needed to perform these functions on the basis of information gathered, the job analysis is ready, has carried out.

The actual performance of employment: -
In this method, the observer who is actually preparing the job analysis, the work itself. This gives him an idea of ​​the skill required, level of task difficulty, effort required, etc.

Interview: -
In this procedure, an interview is conducted with the employee. A group of experts to answer the call. They ask questions about employment, qualified and levels of difficulty. They question and cons of the issue and gather information on the basis of this analysis of employment is available.

Critical Incident Method: -
In this process, the employee is asked to write one or more critical incident occurred in the labor market. The incident gives an idea about the problem, as, skills and levels of difficulty has been treated, is so critical incident method, an idea about the work and its importance. (An important and critical incident means that anything that is in employment)

Questionnaire Method: -
In this method, a spokesman for the worker is given, and they are asked to answer the questions in it. Questions to multiple-choice questions or open questions. The questions to decide exactly how the job analysis should be performed. The method is effective because people would think twice before writing anything.

Log records: -
Companies can ask staff to ensure that the log records and job analysis can be done on the basis of information collected from the log record. A log entry is a book to include in the staff write all the activities they performed at work. The files are many and run in nature and have a good idea of ​​the tasks and duties in each job.

HRD issues: -
Records are kept of each employee from the personnel department. The file contains details of education, the name of employment, the number of years of experience, rights-managed, received in the past errors and the measures the number of promotions that work area, the area of ​​basic skills, etc. based on the analysis of employment records can be done.

Jun 8, 2011

Source of Finance for business organization



Sources of funding in the short term and long term
The activity requires two types of financing, namely:
1. Short-term financing
2. Long-term financing
Funding decisions in the short term with regard to the long-term assets and affected Liabilities and is also known as working capital financing.

In the short term financial decisions are generally the cash flow next year or in the duty cycle of the company. Normally, the short-term financing for a maximum period of 3 years.

The main sources of short-term financing are:

1. Cash Advance
2. Short-term bank loan
3. Bill discounting
4. Credit
5. Inter-corporate deposits
6. Commercial Papers
7. Factoring
8. advance of working capital from commercial banks

1. Cash Advance:
cash credit facility is generally taken to fund working capital needs of the organization. Interest is charged at the moment for the Cash Advance Bank A / C, regardless of credit through the use of the advance.

2. Short-term bank loans: bank overdraft
 

3. Update of the bill:
The bill discount is a source of short-term financing, ownership change was settled by the borrowers of the bank at a reduced rate.

4. Credit
Credit is an indirect form of financing working capital and banks than take the risk, the credit by the supplier itself provided.

A letter of credit by a bank on behalf of their clients issued to the seller. According to this document, the bank drafts drawn on them for deliveries to the customer's credit. I f the vendor complies with the conditions of the letter of credit established.

5. Inter Corporate Deposits
A deposit of one company to another, usually for a period of six months, that is, as described ICD. The short-term deposits with other firms as a relatively attractive form of money in the short term regarding the return.
These deposits are generally three types:
a. Call deposits: withdraw terminate a money market account is the lender on a given date can.
b. three-month deposits: These deposits must be taken by the borrower
commitments over a lack of short-term cash
c. Six-month deposits: Normally, businesses do not make loans to deposits that time. These deposits are usually made with high quality borrowers.

6. Commercial Papers
A business can commercial paper to raise funds. This is a promissory note. The implementation of the company to the amount and / or reimburse a specific date.
7. Factoring
One factor is a financial institution that services related to the management and financing of receivables offers credit sales. Factoring provides the resources to finance receivables, and facilitates the recovery of debts.
There are 2 banks, sponsored organizations that provide services such.

a. SBI Factors and Commercial Services Ltd.
b. CANBANK factors LTD, operated since early 1997.

8. advance of working capital from commercial banks
Since not allow the above sources, the use of funds over a longer period, the business climate to seek other sources when the need for a longer period, ie up 3 years and older.

If a company wants to invest in long-term assets, it must find to fund the needs. The Company may, to some extent rely on internally generated funds. But it is sufficient in most cases, internal resources, not to support investment projects. When this happens, the company plans to reduce their investments or seek external funding. Most companies choose to take outside funding. They supplement internal financing to external financing has risen from a variety of sources.
The main sources of long-term financing can be divided roughly into:
Internal sources include:

a. Share (equity shares and preference) in capital
b. Reserves and surplus
c. Personal loans are called by the owner as a "quasi-Capital"
External sources include:

a. loan from banks, financial institutions and international organizations like the International Monetary Fund, World Bank, Asian Development Bank.
b. Notes
c. The demands of family and friends
d. Deposits Inter-enterprise
e. Asian Depository Receipts / Global Depository Receipts
f.  Commercial documents.

Funding in the short term or long term is a function of financial management. The sound and efficient management that is to raise funds and, if necessary, at very attractive prices. Fundraising either internally or externally requires professional behavior, including compliance with both legal requirements, technical and legal Companies Act, the Securities Exchange Board of India, stock exchange authorities and other tax laws imposed as Income Act, the Foreign Exchange Management Regulations, the banking law, etc.

Jun 3, 2011

What is Trend Analysis

Trend analysis is used when it is necessary to analyze the trend data presented in a series of statements from several consecutive years. The tendency of such an analysis is obtained as a percentage. Trend analysis of percentage movements in a sense, the progress up or down or regression. This method involves calculating the percentage ratio that any statement on the same point in the door in the base year.
The base year is one of the periods involved in the analysis, but as soon as is usually taken as the base year. The trend of the percentage declaration is a "tool of analysis to condense the data rupee absolute" in the comparative statements.

Merits of trend analysis:
• Trend percentages show the increase or decrease in a recognized position with the magnitude of change in percent, which is more effective than the absolute data.
• The percentages tend to facilitate effective comparative study on the financial performance of an enterprise over a period of time.

The drawbacks of the trend analysis:
• Any trend itself is not very analytical and informative.
• If the interpretation must be based on percentages and ratios are carried out in isolation and not with the absolute data from which the percentages were obtained, the findings tend to be absurd and baseless.
• The comparability of trend percentages will be affected if the accounts are prepared on a consistent basis year after year and if the price level is not constant.
• During periods of inflation, data over a longer period of time is unprecedented, if enabled, data rupeee absolute.
• There is always the danger of choosing the base year, which may not be representative of normal and typical.
• Although the percentages tend to give important information, too much importance and weight should not be placed on the percentages when a small number in the base year. In such cases, even a slight variation will be increased by the percentage change.

Used
• There is an increase or decrease a recognized position with the magnitude of percentage changes is more effective than absolute data.
• The trend rate facilitates effective comparative study on the financial performance of a company over time.

Jun 2, 2011

What is Fund Flow Statement


Fund flow statement also referred to as statement of “source and application of funds” provides insight into the movement of funds and helps to understand the changes in the structure of assets, liabilities and equity capital. The information required for the preparation of funds flow statement is drawn from the basic financial statements such as the Balance Sheet and Profit and loss account. “Funds Flow Statement” can be prepared on total resource basis, working capital basis and cash basis. The most commonly accepted form of fund flow is the one prepared on working capital basis.

CASH FLOW VS FUND FLOW:
CASH FLOW - A Cash Flow Statement is a statement which shows inflows and outflows of cash and cash equivalents of an enterprise during a particular period. It provides information about cash flows, associated with the period’s operations and also about the entity’s investing and financing activities during the period.

FUND FLOW – Fund Flow Statement also referred to as the statement of “Source and Application of Funds” provides insight into the movement of funds and helps to understand the changes in the structure of assets, liabilities and equity capital., A fund flow statement is different from cash flow statement in the following ways:
i). Funds flow statement is based on the concept of working capital while cash flow statement is based on cash which is only one of the element of working capital. Thus cash flow statement provides the details of funds movements.

ii). Funds flow statement tallies the funds generated from various sources with various uses to which they are put. Cash flow statement records inflows or outflows of cash, the difference of total inflows and outflows is the net increase or decrease in cash and cash equivalents.

iii). Funds Flow statement does not contain any opening and closing balance whereas in cash flow statement opening as well as closing balances of cash and cash equivalents are given.

iv). Funds Flow statement is more relevant in estimating the firm’s ability to meet its long-term liabilities, however, cash flow statement is more relevant in estimating the firms short-term phenomena affecting the liquidity of the business.

v). The Cash Flow statement considers only the actual movement of cash whereas the funds flow statement considers the movement of funds on accrual basis.

vi). In cash flow statement cash from the operations are calculated after adjusting the increases and decreases in current assets and liabilities. In funds flow statement such changes in current items are adjusted in the changes of working capital.

vii). Cash flow statement is generally used as a tool of financial analysis which is utilized by the management for short- term financial analysis and cash planning purposes, whereas funds flow statement is useful in planning intermediate and long-term financing.

Advantages of fund flow are as follows:
  • management of various companies are able to review their cash budget with the aid of fund flow statements
  • Helps in the evaluation of alternative finance and investments plan
  • Investors are able to measure as to how the company has utilized the funds supplied by them and its financial strengths with the aid of funds statements.
  • It serves as an effective tool to the management of economic analysis.
  • It explains the relationship between the changes in the working capital and net profits.
  • Help in the planning process of a company
  • It is an effective tool in the allocation of resources
  • Helps provide explicit answers to the questions regarding liquid and solvency position of the company, distribution of dividend and whether the working capital is effectively used or not.
  • Helps the management of companies to forecast in advance the requirements of additional capital and plan its capital issue accordingly.
  • Helps in determining how the profits of a company have been invested: whether invested in fixed assets or in inventories or ploughed back.
Source:scribd.com/doc/15880531/FINANCIAL-MANAGEMENT-Notes

Debentures-Kinds of Debentures

The issue of debentures by public limited companies is regulated by Companies Act 1956. Debenture is a document, which either creates a debt or acknowledges it. Debentures are issued through a prospectus. A debenture is issued by a company and is usually in the form of a certificate, which is an acknowledgement of indebtedness. They are issued under the company's seal. Debentures are one of a series issued to a number of lenders.
The date of repayment is invariably specified in the debenture. Generally debentures are issued against a charge on the assets of the company. Debentures may, however, be issued without any such charge. Debenture holders have no right to vote in the meetings of the company.
Bearer Debentures: They are registered and are payable to its bearer

Kind of Debentures:
1.Bearer Debentures: They are negotiable instruments and are transferable by delivery.
2.Registered Debentures: They are payable to the registered holder whose name appears both on debenture and in the register of debenture holders maintained by the company. Registered debentures can be transferred but have to be registered again. Registered debentures are not negotiable instruments. PI registered debenture contains a commitment to pay the principal sum and interest. It also has a description of the charge and a statement that it is issued subject to the conditions endorsed therein
.
3.Secured Debentures: Debentures which create a charge on the assets of the company, which may be fixed or floating, are known as secured debentures.

4.Unsecured or Naked Debentures: Debentures, which are issued without any charge on assets, are unsecured or naked debentures, The holders are like unsecured creditors and may sue the company for recovery of debt.

5.Redeemable Debentures: Normally debentures are issued on the condition that they shall be redeemed after a certain period. They can, however, be reissued after redemption under Section 121 of Companies Act 1956.

6.Perpetual Debentures: When debentures are irredeemable they are called Perpetual.

7.Convertible Debentures: If an option is given to convert debentures into equity shares at stated rate of exchange after a specified period they are called convertible debentures. In our country the convertible debentures are very popular. On conversion, the holders cease to be lenders and become owners. Debentures are usually issued in a series with a pari passu (at the same rate) clause which entitles them to be discharged rate ably though issued at different times. New series of debentures cannot rank pari passu with old series unless the old series provides so

8.New debt instruments issued by public limited companies are participating debentures, convertible debentures with options, third party convertible debentures, and convertible debentures redeemable at premium, debt equity swaps and zero coupon convertible notes.

9.Participating Debentures: They are unsecured corporate debt securities,which participate in the profits of the company. They might find investors if issued by existing dividend paying companies.

10.Convertible Debentures with Options: They are a derivative of convertible debentures with an embedded option, providing flexibility to the issuer as well as the investor to exit from the terms of the issue. The coupon rate is specified at the time of issue.

11.Third Party convertible Debentures: They are debt with a warranty allowing the investor to subscribe to the equity of a third firm at a preferential vis-à-vis the market price. Interest rate on third party convertible debentures is lower than pure debt on account of the conversion option.

12.Convertible Debentures Redeemable at a premium: Convertible debentures are issued at face value with an option entitling investors to later sell the bond to the issuer at a premium. They are basically similar to convertible debentures but embody less risk.

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