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...]

Planning is one of the important aspects of human life, which implies thinking beforehand, what is to be done in future. At the individual level, career planning is quite common, which implies establishing the goals and timelines, within which the individual has to achieve them. It analyses a person's skills, abilities and interest, to lay down long-term goals of a person. At the organizational level, for the perpetual succession of an organisation, there must be potential employees, to fill … [Read more...]

Collective Bargaining can be understood as a rulemaking process, as it formulates or revises the terms and conditions, under which the worker's group and management, may cooperate and work together, over a certain period. It is not similar to negotiation, which implies a process of seeking agreement, through an open end exchange of views. Industrial disputes are the disputes that occur out of a disagreement between employer and employees concerning certain issues relating to employment. … [Read more...]

Leadership is a skill, which requires a person, to influence the subordinates to work voluntarily, and stimulating them to put their efforts, in achieving the goals of the organisation. Based on the objectives and the subordinates, the organisation can choose from different leadership styles. Autocratic leadership also called as monothetic leadership, is one of the styles, which encompasses centralization of the decision making power. In autocratic leadership, the leader directs the … [Read more...]

Motivation implies the act of stimulating or inspiring subordinates to pursue the desired course of action. It is something that makes people act or behave in a particular manner. Based on the premises concerning human behaviour, Prof. Douglas McGregor put forward a theory of motivation, called as theory X and theory Y. Theory X is a conventional approach to motivation, based on negative assumptions. On the other extreme, Theory Y is diametrically opposite to theory X which shows the modern … [Read more...]