Organization means a systematically organized collection of people, with a common goal and identity associated with an external environment, like a business entity or a government department. It is often misconstrued with the institution, which encompasses an entity, with a high degree of sustainability, that can be seen as an indispensable part of the large society or community. The term institution is commonly used for the place of knowledge, i.e. an entity which delivers information or … [Read more...]

With the expansion of business activities, in the past few years, the way of doing business is completely changed. Nowadays, it is quite easy to draw the attention of customers towards your product or service, through various means. However, the aim of business remains same, i.e. to maximize revenue and profitability. Sales are all about selling product or service to the final consumer at an agreed price, by using different business strategies and techniques. On the contrary, business … [Read more...]

Capital alludes to the company's wealth in the form of money or assets, that can be utilized for commencing a business or investing in a running business, to generate more money. It can be of two types physical capital or human capital. The physical capital implies the capital which is tangible in nature, such as money, plant and machinery, furniture and fixture, building etc. On the contrary, human capital is relatively a new concept, which implies the collection of an individual's skills, … [Read more...]

Motivation implies the process of encouraging people to act in order to attain the desired objectives. It is something that stimulates an individual to keep doing the act already initiated. In this context, Abraham Maslow, a renowned psychologist, highlighted the elements of the theory of motivation, in a classic paper released in 1943. His theory is based on human needs and its fulfilment. On the other hand, Frederick Herzberg is an American psychologist, who coined out the concept of job … [Read more...]

Business strategy is concerned with the strategic decisions concerning the choice of product, competitive advantage, customer satisfaction, etc. On the contrary, corporate strategy is concerned with the overall objective and scope of business to fulfil stakeholder's expectations. The strategy can be defined as the integrated plan or a trick used to get success in a particular affair. In business terms, the strategy is viewed as a means to reach the goal of the company. In a large firm, there … [Read more...]

Henry Fayol is a French Mining Engineer, who developed the concept of general theory of administration and given 14 principles of management. On the other hand, F.W. Taylor is an American Mechanical Engineer, who advanced the concept of Scientific Management and given 4 Principles of Management. Management is viewed as the process in which the responsible members of the organization get the work done through and with others. Principles of Management are the guidelines that govern the decision … [Read more...]

Quotation implies a fixed price offer given to the customer as a response to the tender notice. It has a legal binding, which when accepted by the customer, cannot be changed. It is not exactly same as tender, which is a response to an invitation to tender, submitted by the prospective supplier. An invitation to tender is an open request for proposal advertised by an organisation in the local newspaper, to invite potential and interested suppliers to submit their bid for supplying goods or … [Read more...]

A short-run production function refers to that period of time, in which the installation of new plant and machinery to increase the production level is not possible. On the other hand, the Long-run production function is one in which the firm has got sufficient time to instal new machinery or capital equipment, instead of increasing the labour units. The production function can be described as the operational relationship between the inputs and outputs, in the sense that the maximum amount of … [Read more...]

A memorandum or shortly known as a memo is a precise official note, used to inform, direct or advise the members within the same organisation. However, the business deals with a number of external parties such as customers, clients, suppliers, government agencies, manufacturers, societies, etc. for which a different tool of communication is used, called as a business letter. A letter refers to a brief message sent by the company to the person or entity, which are outsiders. Large corporations … [Read more...]

Upward communication refers to that form of communication that flows from bottom to top. On the other extreme, downward communication is the communication, which moves from top to bottom. Communication is the spine of an organisation because without it superior-subordinate relationship cannot thrive and the organisation will not be able to function effectively, to achieve the objectives. It pertains to the meaningful and effective interaction between two or more people. There are two channels … [Read more...]