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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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COMMON ORGANIZATIONAL DESIGNS

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A.  Traditional organizational designs. We now need to look at various organizational designs that you might see in today’s organizations. 1. A simple structure is an organizational design with low departmentalization, wide spans of control, authority centralized in a single person, and little formalization. a.  Its strengths are its flexibility,speed and low cost to maintain. b.  Its major drawback is that it’s most effective in small organizations. As an organization grows, the structure tends to become more specialized and formalized. When contingency factors favor a bureaucratic or mechanistic design, one of two options is likely to be used. 2.   One option expands functional departmentalization into the functional structure,which is an organizational design that groups similar or related occupational specialties together. 3.  The other option is the divisional structure,which is an organizational structure made up of autonomous, self-contained ...
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ORGANIZATIONAL DESIGN DECISIONS

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Organizations aren’t structured the same way. Top managers put a lot of thought into how best to design the organization’s structure. That “best” design depends on four contingency variables: the organization’s strategy, size, technology, and degree of environmental uncertainty.   There are two generic models of organizational design. 1. A mechanistic organization is an organizational structure that is characterized by high specialization, rigid departmentalization, narrow spans of control, high formalization, a limited information network, and little participation in decision making by low-level employees. 2. An organic organization is a structure that is highly adaptive and flexible with little work specialization, minimal formalization and little direct supervision of employees. 3.  When is each design favored? It “depends” on the contingency variables. Contingency factors —appropriate structure depends on four contingency variables: 1. Strategy and structure One o...
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ORGANIZATIONAL DESIGN AND ORGANIC VS. MECHANISTIC VS. VIRTUAL STRUCTURES

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1.  Job rotation is the practice of periodically shifting workers through a set of jobs in a planned sequence. a.  One purpose of job rotation is to combat boredom, but its success is short-lived if tasks are too simple. b.  Another purpose of job rotation is cross training so that there is maximum flexibility in job assignments. c.  A related purpose is employee development so that employees increase their capabilities and understanding of various aspects of the organization. d.  A potential problem is that rotating individuals may be treated as temporary helps and their loyalty perceived as questionable. 2.  Job enlargement is the allocation of a wider variety of similar tasks to a job in order to make it more challenging. a.  Job enlargement broadens job scope, the number of different tasks an employee performs in a particular job. b.  The problem is that if additional simple tasks are added, worker boredom may persist. Too, lower efficiency...
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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 t...
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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...
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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 ...
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