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Showing posts from August, 2015

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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Strategic Human Resource Management Tools

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Managers use several tools to translate the company s broad strategic goals into human resource management policies and activities. Three important tools include the strategy map, the HR Scorecard, and the digital dashboard. STRATEGY MAP  The strategy map provides an overview of how each department s performance contributes to achieving the company s overall strategic goals. It helps the manager understand the role his or her department plays in helping to execute the company s strategic plan. Figure below presents a strategy map example, in this case for Southwest Airlines. Recall that Southwest has a low-cost leader strategy. The strategy map for Southwest succinctly lays out the hierarchy of main activities required for Southwest Airlines to succeed. At the top is achieving company-wide, strategic financial goals. Then the strategy map shows the chain of activities that help Southwest Airlines achieve these goals. For example, as we saw earlier in this chapter, to boost rev
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Human Resource Strategies and Policies

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Managers call the specific human resource management policies and practices they use to support their strategic aims  human resource strategies. The Shanghai Portman's human resource strategy aimed to produce the service-oriented employee behaviors the hotel needed to improve significantly the hotel s level of service. Its HR policies included installing the Ritz-Carlton Company s human resource system, having top management personally interview each candidate, and selecting only employees who cared for and respected others. The accompanying HR as a Profit Center feature presents another example. HR AS A PROFIT CENTER Several years ago, Albertsons Markets had to improve performance, and fast. With 2,500 stores and 230,000 workers, it faced competition not only from grocery chains, but also from Walmart and online sites. Albertsons overall strategic aims included reducing costs, maximizing financial returns, becoming more customer-focused, and energizing employees. Albertsons
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STRATEGIC HUMAN RESOURCE MANAGEMENT

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Once a company decides how it will compete, it turns to formulating functional departmental strategies to support its competitive aims. One of those departments is human resource management. Its functional strategies are  human resource management strategies. Defining Strategic Human Resource Management Every company needs its human resource management policies and activities to make sense in terms of its broad strategic aims. Strategic human resource management means formulating and executing human resource policies and practices that produce the employee competencies and behaviors the company needs to achieve its strategic aims. Figure shows the link between human resource strategy and the company s strategic plans. The basic idea behind strategic human resource management is this: In formu-lating human resource management policies and activities, the aim must be to produce the employee skills and behaviors that the company needs to achieve its strategic goals. Figure belo
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Human Resource Management Strategy and Analysis

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THE STRATEGIC MANAGEMENT PROCESS Goal-Setting and the Planning Process Whether the manager is planning to boost a hotel s profitability or something more mundane, the basic planning process is the same. It involves setting objectives, making basic planning forecasts, reviewing alternative courses of action, evaluating which options are best, and then choosing and implementing your plan. A  plan shows the course of action for getting from where you are to where you want to go in other words, to the goal. Planning is always  goal-directed (in this case, to improve the hotel s level of service significantly). THE HIERARCHY OF GOALS In companies, it is traditional to view the goals from the top of the firm down to front-line employees as a chain or hierarchy of goals. At the top, the president sets long term or strategic goals (such as  Double sales revenue to $16 million in fiscal year 2011). His or her vice presidents then set goals, such as  add one production line at plan
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THE TRENDS SHAPING HUMAN RESOURCE MANAGEMENT

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Globalization and Competition Trends; Globalization refers to the tendency of firms to extend their sales, ownership, and/or manufacturing to new markets abroad. Examples surround us. Toyota produces the Camry in Kentucky, while Dell produces PCs in China. Free trade areas agreements that reduce tariffs and barriers among trading partners further encourage international trade. NAFTA (the North American Free Trade Agreement) and the EU (European Union) are examples. Companies expand abroad for several reasons. Sales expansion is one. Walmart is opening stores in South America. Dell, knowing that China will soon be the world's biggest market for PCs, is aggressively selling there. Firms go abroad for other reasons. Some manufacturers seek  new foreign prod-ucts and services to sell, and to  cut labor costs. Thus, some apparel manufacturers design and cut fabrics in Miami, and then assemble the actual products in Central America, where labor costs are relatively low. Someti
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Human Resource Manager s Duties

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In providing this specialized assistance, the  human resource manager carries out three distinct functions: 1. A line function.   The human resource manager directs the activities of the people in his or her own department, and perhaps in related areas (like the plant cafeteria). 2. A coordinative function.  The human resource manager also coordinates personnel activities, a duty often referred to as functional authority (or func-tional control). Here he or she ensures that line managers are implementing the firm s human resource policies and practices (for example, adhering to its sexual harassment policies). 3. Staff (assist and advise) functions. Assisting and advising line managers is the heart of the human resource manager s job. He or she advises the CEO so the CEO can better understand the personnel aspects of the company s strategic op-tions. HR assists in hiring, training, evaluating, rewarding, counseling, promoting, and firing employees. It administers the
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Line Managers Human Resource Duties

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However, line managers still have many human resource duties. This is because the direct handling of people has always been part of every line manager s duties, from president down to first-line supervisors. For example, one major company outlines its line supervisors respon-sibilities for effective human resource management under these general headings: 1. Placing the right person in the right job 2. Starting new employees in the organization         (orientation) 3. Training employees for jobs that are new to          them 4. Improving the job performance of each person 5. Gaining cooperation and developing smooth         working relationships 6. Interpreting the company s policies and                 procedures 7. Controlling labor costs 8. Developing the abilities of each person 9. Creating and maintaining department morale 10. Protecting employees health and physical             condition In small organizations, line managers may carry out all these p
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HR FOR ENTREPRENEURS

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Finally, another reason to study this course is that you might end up as your own human resource manager. More than half the people working in the United States about 68 million out of 118 million work for small firms. Small businesses as a group also account for most of the 600,000 or so new businesses created every year. Statistically speaking, therefore, most people graduating from college in the next few years either will work for small businesses or will create new small businesses of their own. Especially if you are managing your own small firm with no human resource manager, you ll have to understand the nuts and bolts of human resource management. We ll specifically address HR for entrepreneurs in upcoming posts.
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Why Is Human Resource Management Significant to All Managers?

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AVOID PERSONNEL MISTAKES; First, having a command of this knowledge will help you avoid the sorts of personnel mistakes you  don t want to make while managing. For example, no manager wants to: * Hire the wrong person for the job * Experience high turnover * Have your people not doing their best * Waste time with useless interviews * Have your company taken to court because of your discriminatory actions * Have your company cited under federal occupational safety laws for unsafe practices * Have some employees think their salaries are unfair relative to others in the organization * Allow a lack of training to undermine your department s effectiveness * Commit any unfair labor practices IMPROVE PROFITS AND PERFORMANCE Similarly, effective human resource management can help ensure that you get results through people. Remember that you can do everything else right as a manager lay brilliant plans, draw clear organization charts, set up world-class assembly lines, a
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Introduction to Human Resource Management

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An organization consists of people with formally assigned roles who work together to achieve the organization s goals. A  manager is the person responsible for accomplishing the organization s goals, who does so by managing the efforts of the organization s people. Managing involves five functions: planning, organizing, staffing, leading, and controlling. In total, these functions represent the management process. Some of the specific activities involved in each function include: *Planning. Establishing goals and standards; developing rules and procedures; developing plans and forecasting. * Organizing. Giving each subordinate a specific task; establishing departments; delegating authority to subordinates; establishing channels of authority and communication; coordinating subordinates work. * Staffing. Determining what type of people you should hire; recruiting prospective employees; selecting employees; training and developing employees; setting performance standards; evalua
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RECORD KEEPING AND SOME BASIC CONCEPTS

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We can maintain a diary of transactions and note the daily transactions like sale, purchase etc. in it. Problems Faced in Maintaining Diary of Transactions • How will we come to know the income and expenses from various sources? • We only have a sheet / page on which daily transactions are listed. • We do not know which product is selling better and which is not. Available Alternate One can go through all the transactions at the end of the month and note different types of transactions on different pages. So that every page gives complete detail for a different type of transaction like sales of different products and expenses of different types now try to go through these transactions and separate transactions of different types.   But what if the number of transactions is large? Is it really possible to go through hundreds or thousands of transactions at the month end and analyse them to obtain required results.  Sales and purchase are not always for cash. Some ti
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How Technology Affects Managerial Communication

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Two developments in information and communication technology seem to be having the most significant impact on current managerial communication: networked computer systems and wireless capabilities. Networked Systems 1. An electronic mail system is a mail system that allows high-speed exchange of written messages through the use of computerized text-processing and communication networks. a.  Electronic mail has advantages. 1)  It is a time-saver. 2)  It leads to exchanges of information among managers who previously did not communicate. 3)  Managers tend to receive new types of information through these systems. b.  Electronic mail has a couple of disadvantages. 1)  It eliminates the nonverbal cues that serve as aids in face-to-face communication. 2)  It is easy to vent anger and frustrations over email that would never be communicated through regular written communication channels. 3)  It leads to an excess of irrelevant mail. 2.  Voice mail is the recording systems which en
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BASIC CONCEPTS OF ACCOUNTING

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Financial accounting is the maintenance of daily record of All financial transactions in such a manner that it would help in the preparation of suitable information regarding the financial affairs of a business or an individual. The need for recording financial transactions arises because the individual or business wants to know the  performance of the business and to assist the person in making decisions related to the business. Transactions In accounting or business terms, any dealing between two persons involving money or a valuable thing is called transaction .   Human beings are social animals and are bound to adopt a community living style. Living in a community, essentially means that people interact with other people and are dependent on each other to fulfill their needs. Every person cannot fulfill all his needs like food, clothing, housing etc. on his own. He, therefore, depends on other people for his needs, in return to this providing others with some of theirs. It
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