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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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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...
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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 ...
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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 prod...
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HISTORICAL OVERVIEW OF MANAGEMENT

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Major objective of treating “Principles of Management” in a concise, interesting, and understandable manner will be to present management history and theory with an emphasis on the future. Most students will be applying the concepts learned here over a period of next many years. Another objective shall be to identify several areas where management concepts are applicable to the personal and professional goal setting and also to apply the management skills to the challenge of managing the most difficult peer or subordinate – the one that may confront you in the mirror each morning in your professional career. In any treatment of a basic subject like this, there is little that the resource/anchor person can claim to be uniquely his own except his/her tacit knowledge and the presentation style. The write-ups from chapters of recommended text books for this course have also been included and are highly acknowledged. The Intellectual Heritage of Management Organized endeavors dir...
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UNDERSTANDING GROUP DYNAMICS IN ORGANIZATIONS

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INTRODUCTION Work groups are a common arrangement within today’s business organizations. Work is being restructured around groups of all kinds and in all sizes of organizations. Managers need an understanding of group behavior and the concept of teams in order to appreciate what groups can and cannot do within organizations and how groups function. Any one member in group can influence the behavior of the individuals in the group and teamwork. We will examine some basic characteristics of groups including the types of work groups, the development of informal groups, and the manner in which groups operate. UNDERSTANDING GROUP BEHAVIOR Groups exhibit different behavior—more than just the sum total of each group member’s individual behavior. In this section, we’re going to look at various aspects of group behavior. What is a Group? A group is defined as two or more interacting and interdependent individuals who come together to achieve particular objectives. 1.  Groups diffe...
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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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