Showing posts with label Business management. Show all posts
Showing posts with label Business management. Show all posts

Make Or Buy Decisions

Make Or Buy Decisions

A Company may be producing a product by itself or receive an offer from an outside supplier to supply that product. Similarly, a firm may be buy a product from outside or may make/produced/manufacture that product in the firm itself.

Difference Between Internal And External Recruitment

INTRODUCTION

 











Internal recruitment is concerned with recruiting people internally through transfer and promotion and external recruitment is associated with recruiting people externally through advertisement, employees referrals and other external sources.

A comparison between internal recruitment and external recruitment is as follows:

1. Internal recruitment: It is a quick process that involves the search of candidates internally.
External recruitment: It is a lengthier process that involves finding potential candidates externally or outside the organization.

2. Internal recruitment: This process is cheaper one as it does not involve any cost of contracting external sources.
External recruitment: This process is costly one as it bears extra cost for searching out the potential candidates.

3. Internal recruitment: Under it, there will be limited choice of candidates.
External recruitment: A wider choice of candidates is possible if external recruitment is used to get the people at work.




4. Internal recruitment: It motivates the existing staffs to improve their performance.
External recruitment: The existing staffs may feel dissatisfied if external recruitment is used to get the people at work.

5. Internal recruitment: The infusion of fresh talent is impossible in internal recruitment.
External recruitment: The infusion of fresh talent is possible in external recruitment.

External Recruitment: Sources, Methods, Advantages And Disadvantages

INTRODUCTION

 













External sources refer to recruiting employees from outside the organization. In fact, a pool of  qualified candidates lie outside the organization. Firms cannot always get all required members from their current staff. In such a situation, an arrangement is made to attract qualified candidates from other sources.

An organization recruits employees from outside in order to fill the vacant position whose specification cannot be met by the present employees.

The following external sources of recruitment are used by most of the organizations:
1. Walk-ins
It is one of the most common and least expensive approaches of recruitment from outside the organization. Under it, the potential candidates visit office of the company and apply for jobs. Usually unskilled and semiskilled workers/supervisors are the candidates for walk-ins. It is relatively informal and less expensive method of external recruitment. It is concerned with direct recruitment and also known as factory gate recruitment.

2. Employment Agencies
This source of manpower supply is concerned with indirect recruitment. Employment agencies run by private or public or government sectors provide a pool of qualified candidates to those organizations which are seeking for employees. Employment agencies that provide manpower service to different private, public or governmental organizations.




Methods
External recruitment is concerned with generating a pool of qualified candidates through external sources of employment. Under it, following methods of recruitment are adopted. 

1. Direct Recruitment
Direct recruitment refers to a process of recruiting qualified candidates from external sources by placing a notice of vacancy in an organization's notice board. The detail of the job will be specified on the notice board. this method is useful for the recruitment of blue-collar, white-collar, and technical workers. This method of recruitment is suitable when there is high supply of human resources in the market.

2. Casual Callers
This method of recruitment is concerned with using previously applied candidates as a source of recruitment. The applications already available in the employment office are used as sources of prospective candidates. In other words, applications from individuals who are already recorded in the employment list can be referred as new applicants and the best suited candidates are selected for the job. This method avoids the costs of recruiting people from other sources.

3. Advertising
Advertising is one of the most common and popular methods of external recruitment under which the job vacancy is announced through different print and electronic media. When the qualified and experienced employees are not obtained from other sources, advertisement method is used to attract the best qualified and experienced personnel. Usually, most of senior positions in organization are filled by this method.The job description and specifications are specified in the advertisement to allow self-screening.

4. Employment Agencies
Employment agencies run by private, public or government sectors are regarded as an important source of recruitment for unskilled, semi-skilled and skilled jobs. The agencies are likely to have a list of qualified candidates in their records, and they render their service as per the requirement from other organizations for employment.

5. Schools, Colleges And Universities
It is also known as campus recruitment. Under this method of external recruitment, educational institutions such as schools, colleges and universities offer opportunities for recruiting fresh candidates.Most educational institutions provide placement services where the prospective recruiters can review credentials and interview the interested graduates.

6. Labor Contractors
Labor contractors are an important source of recruitment under which workers are recruited through contractors. However, this method of recruitment is not used by many business firms and organizations.

7. Recommendations
It is closely concerned with employee referrals. Under this method of external recruitment, applicants are introduced by friends and relatives. In fact, many employers, operating at a small-scale operation, prefer to take such persons as they are acquainted with backgrounds and credentials of prospective employees.




Advantages
External recruitment sources and methods have following advantages:
1. Wider Choice
With the availability of large pool of qualified candidates, the selection process becomes more competitive in choosing the best suited candidate.

2. Qualified Personnel
External sources of recruitment provide a pool of talented candidates for selection purpose. With the large pool of potential candidates, it introduce new blood in the organization.

3. Fresh Talent
External recruitment facilitates the entry of fresh talents in an organization. It encourages the inflow of new ideas, knowledge and skills required to perform the tasks.

4. Competitive Spirit
External recruitment creates an environment for healthy competition in between internal employees and external members, who are supposed to be more trained and efficient.

5. Environmental Adaptation
Since external recruitment encourages the entry of new skills, knowledge and ideas in the organization, it helps in accompanying environmental changes.

6. Fairness
Being an open process, external recruitment provides opportunity to all prospective candidates to apply for the vacant position in the organization. This, in turn, widens its options of selection.

Disadvantages
External sources and methods of recruitment have following disadvantages:
1. Expensive
External recruitment is expensive in the sense that it requires an extra cost for vacancy announcement, arrangement for employment office, etc.

2. Dissatisfaction
When the qualified employees are recruited from outside the organization, the existing employees may feel dissatisfied with their jobs and leave the organization.

3. Long Process
External recruitment follows a long process. Various activities such as vacancy announcement, application collection, review of application forms, selection process etc. need to be performed before the placement of the candidate.

4. Adaptability Problem
As the selected employees are new for the organization, they may face adaptability problem in the organizational environment. More time will be needed for them to be familiar with organizational arrangements.

5. Competition
The existing employees think the new comers as their competitive. As a result of which, organization faces a great loss of productivity and quality.

6. Uncertain Response
The fresh candidates may not be suitable for the job due to the limited information about outsiders.

7. Poor Moral
The arrival of fresh candidates in the work place can adversely affect the morale of existing employees.

Internal Recruitment: Aspects, Methods And Advantages

Internal Sources Of Recruitment


 

 

 

 

 

 

 

Introduction

Internal recruiting refers to recruiting employees from within the organization. In deciding requirement of employees, initial consideration should be given to a company's current employees, which is concerned with internal recruitment.

Recruitment: Definition, Processes And Factors Affecting It

INTRODUCTION














Recruitment is a process of identifying and preparing potential candidates to fill the application form. It is an initial phase of employment process. Recruitment inspires the potential candidates to fill the application form for employment. After estimating the need and requirement of human resource in an organization, the HR manager proceeds with identification of sources of HR, which is termed as recruitment.

Job Evaluation: Importance And Processes

JOB EVALUATION

 

 

 

 

 

 

 

 

 

Introduction

Job evaluation is the process of establishing values of different jobs. Job evaluation provides a basis for ranking different jobs and developing a pay structure for them. Evaluation of job is the process of describing the duties, authority relationships, skills, condition of work and other relevant information related to jobs. It supplies useful data and information to develop job description and specification documents.

Preparation Of Liquidator's Final Statement

 

 

 

 

INTRODUCTION 

The liquidator is required to keep proper books to record receipt and payment which is known as liquidator's final statement, in every mode of winding up. The liquidator has to submit a report together with the audited final accounts to the CRO. The liquidator has to submit the statement to the court in the case of compulsory liquidation and to the company in the case of a voluntary liquidation.

Meaning Of Liquidation, Reasons For Liquidation And Calculation Of Liquidator's Remuneration

LIQUIDATION

Meaning Of Liquidation

A company is an artificial person or body created by law and only the law can dissolve it. The legal procedure by which the corporate life of a company can be brought to an end is known as liquidation. The liquidation of company is defined as " the termination of legal existence of company by closing its business". Liquidation is as well known as "winding-up" a company.

Partnership Businesss And Partnership Agreement

PARTNERSHIP BUSINESS

Introduction

The traditional form of business organization is sole proprietary system. Because of weakness in this form (i.e one man talent, capacity, knowledge, skill, qualification, experience and the like), the partnership form of business organization commences in the world of business. In case of sole proprietorship, single person is absolutely responsible for all affairs of the business but there is joint responsibility when talking about partnership form of business organization.

Meaning, Needs And Methods Of Valuation Of Shares

VALUATION OF SHARES

Concept And Meaning Of Valuation Of Shares

Introduction

Every share has its value printed in its front. Such a value is called as par value or face value of shares. The face value is assigned by the promoters of joint stock company and is given in the memorandum of association.

Company Accounts

COMPANY ACCOUNTS

Introduction


Company account is a fiinancial information that a company is required to produce at the end of every year, including details of its profits or losses.
 
The capital of a limited company is divided into shares. A person can become the   member of a company if he buys a share, then he is known as the shareholder. If the shareholder has paid in full for the shares he has taken, his liability is limited to the nominal value of those shares only. When the company loses its assets, it cannot ask the shareholders to pay anything out of their private property in respect of the company’s losses. If the shareholder has paid partly only for the shares, he can be forced to pay the balance owing on the shares.

Concept Of Delegation Of Authority

DELEGATION OF AUTHORITY
Delegation is the process of assigning specific works to individuals within the organization and giving them the right to perform those works. Delegation of authority is, of course, one of the most significant concepts in management practices that affects managerial functions. Management is the art of getting things done through others and delegation means getting things done through the subordinates.

Financial Statement Analysis: Its Objectives, Methods, Users and Limitations.

Concept Of Financial Statement Analysis

Financial statement analysis is an analysis which highlights the essential relationship in the financial statements. Normally, financial statement analysis focuses on the evaluation of past performances of the business enterprise in terms of profitability, liquidity, operational efficiency and growth potentiality. Financial statements analysis, however, includes the methods used in assessing as well as interpreting the result of past performance and the current financial position as they relate to certain factors of interest in investment decisions. Thus, financial statement analysis is an essential means of assessing the past performance and also in forecasting, maintaining and planning future performance. 

Hire Purchase Accounting, How It Differs From Installments system And Its Accounting Entries

Hire Purchase Accounting



Introduction

Buying and selling of goods as for the system of hire purchase is different from the cash sales and credit sales. As for cash sales, the buyer pays a sum to the seller and the ownership is immediately passed along with the goods while as for credit sale, the payment is made in future. In the two cases the ownership of goods pass on the buyer.

National Or Public Debt, Reason Why Government Borrow and The Terms Asscociated With Budget Debt Servicing

Introduction
National or public debt refers to to the debt a country owes to its citizens or other countries or organizations such as the International Monetary Fund (I.M.F) and the World Bank. The debt which a country owes to its citizens is know as internal debt while the debt owed to foreign governments and organizations is known as external debt.

Balanced and Unbalanced Budget, Ways of financing Budget Deficit

Definition Of Budget
A budget may be defined as a financial statement of the total estimated revenue and the proposed expenditure of a government in a given period of time, usually a year.

Importance or uses of budget
The budget of a country is used to achieve the following objectives:
1. Allocation of resources: Budget is usually use to allocate resources from one sector of the economy to another.

Efficiency of Labour

INTRODUCTION
 
Efficiency of labor may be defined as the ability of labor to increase output without increasing the quantity of labor. Increase in efficiency is normally expressed in terns of increase in output of labor within a shorter period of time without any fall in the quality of goods and services produced. If a labour is efficient, the quality of goods and services produced will be high.

Concept of labour and factors affecting the size of abour force

INTRODUCTION

Labour can be defined as all human efforts of any kind, either skilled or unskilled, mental or manual, directed towards the production of goods and services.

Market, on the other hand, is defined as a place or any means of communication whereby the sellers and buyers can communicate with one another, to exchange goods and services at prices determined by the market forces.

Basic Economic Problems: What to produce, how to produce, for whom to produce and effiency of Resource Use.

INTRODUCTION

Basic economic problems refer to the problems people encounter in the society while attempting to satisfy their numerous wants with the limited resources available to them. These basic economic problems of society include what to produce, how to produce, for whom to produce and efficiency of the resources used or efficient use of resources.

Definition, Types And Causes of Inflation

INTRODUCTION

Inflation may be defined as the persistent rise in the general price level of goods and services. Inflation occurs when the volume of purchases is permanently running ahead of production, with too much money in circulation chasing too few goods.

TYPES OF INFLATION
There are four main types of inflation. These are: