After business planning is performed and the organisation structure is determined, the next step in the process of management is staffing. While planning decides what is to be done, organising determines, how is to be done, staffing decides who is going to do it. Many often misconstrue staffing for recruiting, but they are different, as in staffing refers to putting right people at jobs, recruiting means seeking possible candidates and encouraging them to apply for the vacant position. To … [Read more...]

The term HRM expands to Human Resource Management; it implies the implementation of management principles for managing the workforce of an organisation. It is concerned with the process of hiring, developing and retaining the manpower, with a view to making them more efficient. When conventional HRM is compared and contrasted with the strategic HRM or SHRM, it becomes easier to understand. SHRM is the process of aligning the business strategy with the company's human resource practices, so as … [Read more...]

One of the objectives of the management is to establish a sound organisational structure and to do this, effective authority and responsibility relationship should be created, i.e. Who is accountable to whom? Who are superior and subordinate? Who can give orders? Whenever authority is used, responsibility ensues. Authority is the legal right to give the command, order or instruction and compel the subordinates to do a certain act. On the other hand, Responsibility is the outcome of authority. … [Read more...]

In the business glossary, you might have encountered the terms marketing concept and selling concept end number of times. The marketing concept concentrates on the buyer's needs and then the means are identified to meet out those needs. Therefore, the customer is regarded as the king of the market.  On the other hand, selling concept stresses on the needs of the seller and so, it is the seller who rules the market. These two are the most misconstrued however there exists a fine line of … [Read more...]

While making a choice between business types, most business owners get confused between LLC or Inc. The former combines two forms of business, i.e. partnership and corporation. On the other hand, the latter means Incorporated, i.e. which represents the form of corporation, such as S corp or C corp. The basic question that arises before the entrepreneurs when starting a new business venture is, which business type to choose? The business structure is not just a status, rather all the legal … [Read more...]

Coordination refers to the organisation of all the activities in an orderly manner, to achieve unanimity of individual efforts in the pursuit of group goals. On the flip side, cooperation is a discretionary action of individuals to work together or help one another, for a mutual benefit. It is a joint effort of the members working in the organization for accomplishing a defined target. The 3C's vital for teamwork are coordination, cooperation and collaboration. It is quite common to … [Read more...]

The difference between mediation and arbitration lies in the nature of the judgement taken by the experts. While the decision taken by the arbitrator is binding on the parties, the mediator does not make the judgement but helps the parties in arriving at an agreement. The occurrence of the dispute is very common in every field not only in business, especially when the issue is related to an opinion, unanimous agreement of the parties is rare. There are various alternatives of dispute … [Read more...]

There are slight and subtle differences between S Corp and C Corp, which lies in the way, these two entities are taxed, i.e., while the S Corporation is taxed at individual level C Corporation, is taxed at corporate and individual level. The term corporation is used to refer a separate legal entity, created under the law, having limited liability, perpetual succession and the ability to raise funds from the market by selling its stock. There are two types of Corporation, registered under IRS … [Read more...]

Many think that the term industry and sector resemble each other, as both are used to indicate enterprises that either operates in a particular segment or their business type are identical. However, the two terms actually indicate two different divisions of the economy. While the industry is an umbrella term, that covers all the firms which are engaged in similar business activities. On the other hand, sector refers to the broad classification of the economy, into various segments. In an … [Read more...]

While liquidity is how effectively the firm is able to cover its current liabilities, through current assets. Solvency determines how well the company maintains its operation in the long run. At the time of making an investment, in any company, one of the major concerns of all the investors is to know its liquidity and solvency. These are the two parameter which decides whether the investment will be beneficial or not. This is because these are related measures and helps the investors to … [Read more...]