Accounting-Finance

Concept Of Elasticity Of Demand The concept of elasticity of demand was first introduced by the classical economists Cournot and J.S Mill. Later on, new classical economist Alfred marshal developed it in the scientific way. The elasticity of demand is the measurement of responsiveness of demand for a commodity to...

Concept And Meaning Of Economics Economics is a social science which studies and explains human behavior. But economics is a new social science as compared to other social sciences. Before 18th century economics was treated as part of Political Science, Ethics and Religion. The 18th century classical economists developed...

Unit banking has one office. Generally, limited banking services are offered to customers by unit banking organization. Although unit banking organization has one banking office, it can spread cash counters in market place such as walk-in windows, automated teller machines, retail store point-of-sale terminals that are...

Generally, modern commercial banks offer following services to customers or public: 1. Accepting Deposit Accepting deposit from savers or account holders is the primary function of bank. Banks accept deposit from those who can save money, but cannot utilize in profitable sectors. People prefer to deposit their savings...

A bank is financial institution, which deals with money and credit. Bank accepts deposits from the public and mobilizes the fund to productive sectors. Bank also provides remittance facility to transfer money from one place to another. Generally, bank accepts deposits from business institutions and individuals , which...

Decentralization has the following drawbacks or disadvantages: 1. Decentralization Increases Expenditure Decentralization needs qualified, competent and skilled managers at the middle and lower levels. They are to be paid remuneration on the basis of their qualification and experience. Besides, there is the possibility...

Decentralization has the following advantages: 1. Decentralization Facilitates Managers' Development In decentralization, appropriate responsibility and authority is delegated to subordinate level managers. It gives them an opportunity to hone their skills and efficiency so as to get promotions. Therefore, decentralization...

Decentralization is the systematic delegation of managerial authority to middle and lower level management according to their weightage of responsibility. In practical, it is not possible to delegate absolute authority to the lower level management. Top level management can delegate only substantial power to the lower...

The following are the main drawbacks or disadvantages of centralization: 1. Centralization Is Unsuitable For Large Organization Centralization is impractical in large business organization having various branches in different locations. It is difficult to communicate managerial decisions to different operating levels...

The following are the main benefits or advantages of centralization: 1. Centralization Facilitates Unified Decision Top level managers take all decisions in centralization. It is not necessary to consult and take consent of subordinates while taking a decision. The subordinates perform activities on the basis of...

Centralization Centralization is known as the systematic reservation of decision making authority at the top level management. Centralization reduces the roles of subordinates and the top level assumes full authority of running business activities. Top managers have direct control over each and every activity of the...

There are different conditions in which decisions are made. Managers sometimes have an almost perfect understanding of conditions surrounding a decision, but in other situations they may have little information about those conditions. So, the decision maker must know the conditions under which decisions are to be made....

The following are the common barriers in delegation of authority: 1. Reluctant To Delegate Some managers are reluctant to delegate authority to subordinates. They believe that they can take a better decision than their subordinates. This belief is often found among those managers who have been recently promoted and...

The process of assignment of specific work to individuals within the organization and giving them the right to perform those works is delegation. Delegation of authority is one of the most significant concepts in management practice, which affects managerial functions. Management is the art of getting things done through...

Delegation of authority possesses the following features: 1. No Delegation Of  Total Authority A manager cannot delegate his/her total authority to the subordinates.He/she can delegate only a portion of it. A supervisor's status would be affected if he/she delegates total authority to the subordinates. It is...

The following are the major advantages of delegation of authority: 1. Minimize Work Load Of Managers Delegation of authority minimizes the workload of managers.They can assign regular and routine nature of work to their subordinates while they concentrate more effectively in managerial and creative functions. In...

The main approaches to decision making are as follows: 1. Classical Approach To Decision Making Classical approach is also known as prescriptive, rational or normative model. It specifies how decision should be made to achieve the desired outcome. Under classical approach, decisions are made rationally and directed...

Decision making style basically depends on managers' approach to decision making. Decision making style propose that people differ in two dimensions when they approach decision making. The first is an individual's way of thinking and second is individual's tolerance for ambiguity. On the basis of the way of thinking...

Decision making is a process of selecting the best course of action from among many alternatives. It is useful for the successful operation of organizational activities.All the managerial functions such as planning, organizing, directing and controlling are determined by the decision. The following points describes the...

Main features/nature of decision making are as follows: 1. Decision Making Is A Selective Process Decision making is the process of selecting a course of action from among many alternatives to solve problems. Managers have to consider the various factors before selecting a course of action. These factors involve...

Career planning is the process of predetermining career goals and the paths to those goals. It matches individual's career needs with the career opportunities provided by the organization.The steps involved in the process of career planning are as follows: 1. Employee self assessment of career needs Career planning...

Concept And Meaning Of Mentoring Mentoring is a process whereby more experienced managers actively guide less experienced managers. The mentor provides guidance through direction, advice, criticism, and suggestions. This wisdom and guidance helps the less experienced manager to obtain necessary skills and socialization...

Concept Of Career Counselling Career counselling is a process whereby an employee is guided by a manager in performance-related behavior. The employee is unable to perform the job satisfactorily. His work behavior is inconsistent with the work environment and organizational culture. It is manifested in fighting, stealing,...

The overall purpose of career planning is predetermine the desired career paths of an employee to achieve career goals. It provides continuity, order and meaning to the life of an employee. It integrates the needs of individual and the organization. The specific objectives of career planning are as follows: 1. Meet...