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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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Barter Trading and Barter Transactions

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Trading one commodity or service for another commodity or service is called ‘ Barter trading’ . Since every person cannot produce every thing that he needs. Therefore, he needs to give / sell what he produces in order to get / buy what he wants? In early days when ‘money’ was not introduced, people used to exchange goods for goods. This kind of trade, where goods are exchanged for goods, is called barter trade . In fact, in barter trade, value of one commodity is quoted in terms of other commodity, for example the price of 10 kg of wheat may be equal to 2 meters of cloth or 5 liters of milk. Although, there is no involvement of money but still every commodity has a value, which means that you have to give a specific quantity of one commodity to buy a specific quantity of another commodity.
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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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Types of Strategies

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CORPORATE STRATEGY  The corporate strategy question is, How many and what kind of businesses should we be in? For example, PepsiCo doesn t just make Pepsi-Cola. Instead, PepsiCo is comprised of four main businesses: Frito-Lay North America, PepsiCo Beverages North America, PepsiCo International, and Quaker Oats North America.    PepsiCo therefore needs a  corporate-level strategy. A company s  corporate-level strategy identifies the portfolio of businesses that, in total, comprise the company and how these businesses relate to each other. * For example, with a  concentration (single business) corporate strategy, the company offers one product or product line, usually in one market. WD-40 Company (which makes a spray hardware lubricant) is one example. * A  diversification corporate strategy implies that the firm will expand by adding new product lines. PepsiCo is diversified. Over the years, PepsiCo added chips and Quaker Oats. Such  ...
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Human Resource Management Strategy and Analysis

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Strategic Planning A strategic plan is the company s plan for how it will match its internal strengths and weaknesses with external opportunities and threats in order to maintain a competitive advantage. The essence of strategic planning is to ask, "Where are we now as a business, where do we want to be, and how should we get there?"  The manager then formulates specific (human resources and other) plans to take the company from where it is now to where he or she wants it to be. When Yahoo! tries to figure out whether to sell its search business to Microsoft, it s engaged in strategic planning. A  strategy is a course of action. If Yahoo! decides it must raise money and focus more on applications like Yahoo! Finance, one strategy might be to sell Yahoo! Search. Strategic management is the process of identifying and executing the organization s strategic plan, by matching the company s capabilities with the demands of its environment. Figure below sums up the strategi...
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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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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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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.  V...
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