Single Entry and Double Entry Accounting

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Single entry accounting/Cash accounting. This system records only cash movement of transactions and that too up to the extent of recording one aspect of the transactions. This means that only receipt or payment of cash is recorded and no separate record is maintained (about the source of receipt and payment) as to from whom the cash was received or to whom it was paid. Double entry book keeping/Commercial accounting. Double entry or commercial accounting system records both aspects of transaction i.e. receipt or payment and source of receipt or payment. It also records credit transactions i.e. recording of Electricity Bill or accruals of Salary payment etc. This concept will be explained in detail in the next lectures but for the time being it should be noted that in cash accounting date of receipt / payment of actual cash is important while in commercial accounting the date on which the expense is caused (whether paid or not) as well as the spreading of the cost of c
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BEHAVIORAL THEORIES OF MANAGEMENT II

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Human Relations Movement: 
This movement was an attempt to equip managers with the social skills they need.
 
Abraham Maslow (1908-1970)developed a theory of motivation that was based on three assumptions about human nature.

a.  Human beings have needs that are never completely satisfied.
b.  Human behavior is aimed at satisfying the needs that are yet unsatisfied at a given point in time.
c. Needs fit into a somewhat predictable hierarchy ranging from basic, lower-level needs to higher level needs:
1)  Physiological (lowest)
2)  Safety
3)  Belongingness or social
4)  Esteem
5)  Self-actualization (highest and NOT achieved by everyone)

Douglas McGregor (1906-1964) developed the Theory X and Theory Y dichotomy about the assumptions managers make about workers and how these assumptions affect behavior.
 
a.  Theory X, managers tend to assume that workers are lazy, need to be coerced, have little ambition, and are focused on security needs. These managers then treat their subordinates as if these assumptions were true.
b.  Theory Y managers tend to assume that workers do not inherently dislike work, are capable of self-control, have the capacity to be creative and innovative, and generally have higher-level needs that are often not met on the job. These managers then treat their subordinates as if these assumptions were true.
c.  Workers, like all of us, tend to work up or down to expectations.

The Behavioral Science Approach:
It emphasizes scientific research as the basis for developing theories about human behavior in organizations that can be used to develop practical guidelines for managers.

1.  The emphasis is upon developing useful tools for managers. Unlike Scientific Management from the Classical Era, the findings in behavioral studies are often somewhat difficult to find with mathematical certainty. That does not mean however,that the scientific approach should not be attempted nor that the findings of such an approach are any less useful.
2.  An example is the idea of improving performance by setting goals the individual finds to be attainable yet not too easy.

Contributions of the Behavioral Viewpoint:
1.  Spotlight the managerial importance of such factors as communication, group dynamics, motivation, and leaders.
2.  Articulates practical applications of behavioral studies.
3.  Draws on the findings of a number of disciplines such as management, psychology, sociology, anthropology, and economics.
4.  Highlights the importance of an organization’s members as active human resources rather than passive tools.

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