07Oct 2018 by Reese Bannister

8 Major Rating Plans are utilized for Vendor Rating

Accounting
After the trial orders are executed, it becomes necessary for the buyer to rate the vendors to enable him to determine how he should apportion his requirements among the vendors.In other words, the basic responsibility of the materials manager is not only to locate the sources but also to preserve them through continuous rating. A vendor’s performance in meeting the quality, delivery and price standards set by the buyer has to be assessed in a systematic manner. Techniques of Vendor Rating: The purchase organizations watch his enlisted suppliers continuously and take requisite corrective action. Following rating plans are utilized for vendor rating: ADVERTISEMENTS: (a) Categorical plan(b) Weighted point plan(c) Cost ratio method(d) Eavaston’s vendor selection ADVERTISEMENTS: (e) Forced decision matrix(f) Service cost ratio(g) Bell quality rating system ADVERTISEMENTS: (h) IBM…
Read More
07Oct 2018 by Reese Bannister

What is the Role of ‘De Facto Guardian’ under Hindu Law?

Management
A minor child when he has no legal guardian, some nearer relation takes the responsibility of the management of his property and on his application to the court as guardian, if the court appoints him, he becomes the court guardian. Image Source: thompsonfamilyalbum.comHowever, such person, if he does not make application to the court, but manages the property of minor, he is referred to as de facto guardian. He is also referred to as de facto manager of the property, because a de facto guardian of a minor, is neither a legal guardian nor a testamentary guardian and nor a guardian appointed by the court, but he is a person, who himself, has taken over the management of the affairs of the minor, as if he were a natural guardian.…
Read More
07Oct 2018 by Reese Bannister

14 Advantages of Store Management and Codification

Accounting
14 Advantages of Store Management and Codification are explained below:1. Rational codification is of utmost importance in order to locate incoming and outgoing materials quickly and accurately, to provide necessary information concerning the exact whereabouts of the materials and to supply correct and timely data to the concerned departments. It is, therefore, clearly desirable that the goods in the store house should be arranged in the sequence of the stores’ coding system, as far as practicable. image source: i.ytimg.com ADVERTISEMENTS: 2. By codification long description of materials is avoided. Names of materials are simplified by choosing symbols which are simple, clear and free from duplication. Moreover, by it secrecy can be maintained which is the essential part for the smooth functioning of the business.3. Coding system also simplifies mechanical recording…
Read More
07Oct 2018 by Reese Bannister

13 Important Function of Purchasing Department of an Organisation

Accounting
The purchasing department is an organisational unit of a firm whose duties include some part or all of the purchasing function. This disconnection between function and, department is not always appreciated or understood by top management. image source: i.ytimg.comThe purchasing function is usually performed most economically and efficiently by a specialised, centralised purchasing department, directed by a skilled purchasing manager. ADVERTISEMENTS: However, the purchasing function does not have to be performed in such a manner. In theory, it can be performed, and in practice, it sometimes is performed by any number of different company officers or departments.The functions of purchasing department are varied and wide which are based upon different approaches. The purchasing activities may be divided into those that are always assigned to the purchasing department and those that…
Read More
07Oct 2018 by Reese Bannister

The Non-Conventional Sources of Energy present in India – Essay

Marketing
India’s renewable energy installed capacity has grown at annual rate of 23% rising from about 3.9 GW in 2002-03 to about 24 GW in January 2012. The need for developing renewable and non-conventional energy was recognised in India, as in all industrialized countries, in the early 1970’s just after the first oil or energy crisis. Image Source: eco.on.caThe oil crisis was the sudden increase in oil prices by the petroleum-exporting countries of the Middle East which led to world-wide inflation. This caused a panic situation since petroleum had to be purchased at any price to keep the wheels of transport and industries moving. Concern over disruption has continued to be a major focus of energy policy in the industrialized countries. ADVERTISEMENTS: The energy crisis along with the realisation that petroleum…
Read More
07Oct 2018 by Reese Bannister

10 Important Objectives of Inventory Management

Accounting
The investment in inventory is very high in most of the organisations engaged in manufacturing, wholesale and retail trade. The amount of investment is sometimes more in inventory than in other assets. image source: boardroommetrics.comAbout 90% part of working capital is invested in inventories. It is necessary for every management to give proper attention to inventory management. A proper planning of purchasing, handling, storing and accounting should form a part of inventory management. An efficient system of inventory management will determine (a) what to purchase (b) how much to purchase (c) from where to purchase (d) where to store, etc. ADVERTISEMENTS: The purpose of inventory management is to keep the stock in such a way that neither there is overstocking nor understocking. The overstocking will mean a reduction of liquidity…
Read More
07Oct 2018 by Reese Bannister

Essay on Important Theories of Motivation

Decision Making
Essay on Important Theories of Motivation!Motivations can be studied through several broad approaches. There are “Content theories” which focus on the internal needs that motivate people. The “Process theories” of motivation focus on how people choose certain behaviours to satisfy their needs and how they judge their satisfaction. Image Source: davidcbetts.files.wordpress.com/2012/04/hierarchy-of-needs.jpg ADVERTISEMENTS: The “Reinforcement theory” focuses on the relationship between behaviour and its consequences. The interest here is to manipulate consequences in order to change any undesirable behaviours into desirable ones. These theories are described in greater detail. The Content Theories of Work Motivation: The content theories have been developed to explain the nature of motivation in terms of types of needs that people experience. They attempt to focus on factors within a person that initiate and direct a certain…
Read More
07Oct 2018 by Reese Bannister

Essay on the Basic Principles of Organization

Management
Every enterprise sets its own goals and people working in the enterprise are in pursuit of these goals. In order to make it possible for people to work effectively towards accomplishing goals, an internal structure or roles or positions must be designed. image source: c14608526.r26.cf2.rackcdn.comThis managerial function is called organising. Thus, organising is a basic process a manager uses to unite the work of different people towards a common objective. Irrespective of the number of people large and small their effective co-operation is possible through organisation. ADVERTISEMENTS: According to Peter F. Drucker, “A good organisation structure does not by itself produce good performance just as a good constitution does not guarantee great Presidents, or good laws of a moral society. But a poor organisation structure makes good performance impossible, no…
Read More
06Oct 2018 by Reese Bannister

Short Essay on the Exchange Risk Management in the International Business

Management
During the halcyon days of fixed exchange rates the period between World War II to 1971 when major currencies were pegged to each other, occasional changes in the external values of currencies were made only under extreme circumstances that too through devaluation in neat steps against the dollar Furthermore, indications of likely rate changes were normally available to the market well in advance. image source: oswaldcompanies.comManagement of foreign exchange risk, therefore, was not really one of the crucial inputs of an organisation with international operations in those days. The priorities have, however, changed dramatically in the present era of floating exchange rates, when management of foreign exchange risk has become very important and simultaneously also very complex. ADVERTISEMENTS: External values of currencies are affected by a variety of causes such…
Read More
06Oct 2018 by Reese Bannister

6 Important Features of Exchange Rate Management for Indian Companies

Management
The important features of exchange rate management for Indian companies are listed below:1. Managing the exchange risk arising out of import/export transactions is possibly the most relevant for Indian Companies. There is a forward market in India where forward cover for normally upto 6 months can be obtained by the companies. image source: blog.orbitremit.com ADVERTISEMENTS: While taking decisions in this regard, they have to consider the Exchange Control Regulations in India, currency price movements in the international markets and the trends in rupee exchange rates.2. The simplest objective of an active exchange risk management system would be to obtain the most favourable exchange rate for all the foreign currency transactions of the company.The really effective method of managing currency exposure is to budget for specific rate of exchange for the…
Read More