In business parlance, the terms strategy refers to is a unique plan designed with the aim of achieving a competitive position in the market and also to reach the organisational goals and objectives. In short, it is an interpretative plan, that guides the enterprise in realizing its goal. On the other hand, policy refers to a set of rules made by the organisation for rational decision making. Policy lays down the course of action, which is opted to guide the organization's current and future … [Read more...]

Strategy Formulation and Strategy Implementation are the two most important phases of strategic management process. Strategy Formulation means crafting a combination of strategies and picking out the best one to achieve the organizational goals and objectives and thereby reaching the vision of the organization. It involves a number of steps which are performed in chronological order. On the other hand, Strategy Implementation refers to the execution of the opted strategy, i.e. it converts the … [Read more...]

Do you know the fact that we all are consumers in some way or the other, no matter what our age, gender, race, caste, community is. The consumer is the one who consumes the goods, i.e. the user of the goods. It is commonly misconstrued with the term customer, which refers to a person who buys the goods or commodity and pays the price for it. Each and every marketing activity is directed towards influencing the behavior of customers, i.e. to induce them in such a way that they take an action … [Read more...]

Marketing involves a broad spectrum of activities, whose ultimate goal is sales. B2B and B2C are the two business marketing models where sales are the end-result, but, this doesn't make the two business models alike. B2B is an acronym for Business to Business, as the name signifies, it is a type of commercial transaction where the purchasing and selling of merchandise are performed between two business houses, such as entity supplying material to another for production, or entity providing … [Read more...]

Vouching is the soul of Auditing because it forms a base for an effective audit procedure. Vouching means "to vouch" i.e. examine the vouchers. On the other hand, Verification means "to verify" the assets and liabilities of the business. Both the two terms are the first two steps of Auditing, infact vouching helps in the process of verification. In firner terms, Vouching implies the act of checking the vouchers, to identify the authenticity of the transactions recorded. Conversely, … [Read more...]

Audit alludes to a process of independent checking of financial records of an organization, so as to give an opinion on the financial statement. It can be grouped into two categories, namely, Internal Audit and External Audit. Internal Audit is not compulsory by nature but can be conducted to review the operational activities of the organization. In this type of auditing, the work area is determined by the entity's management. On the contrary, External Audit which is obligatory for every … [Read more...]

In general, Auditing is conducted to verify the extent of truthfulness and fairness of the financial records of an entity, but Investigation is performed to prove a certain fact. The scope of the auditing is based on the Standards on Auditing, but the scope of the investigation rests on the terms of engagement. It is quite normal that people get confused between these two terms easily due to lack of knowledge and proper understanding. Auditing is a process of identifying whether the results … [Read more...]

Job Analysis and Job Evaluation are the two important functions of Human Resource Management to know the characteristics of a particular position. Both the tasks are performed by an expert, to provide pertinent information about the two. Job Analysis is a process which determines job requirements while Job Evaluation ascertains the value of a job in relation to other jobs. Job Analysis is performed with an objective of obtaining relevant facts and details related to the job. On the flip side, … [Read more...]

The main difference between Personnel Management and Human Resource Management lies in their scope and orientation. While the scope of personnel management is limited and has an inverted approach, wherein workers are viewed as tool. Here the behavior of the worker can be manipulated as per the core competencies of the organization and are replaced when they are worn-out. On the other hand, human resource management has a wider scope and considers employees as the asset to the organization. It … [Read more...]

With the help of job analysis, two main documents are prepared namely, job description and job specification. Job Description differs from job specification, in the sense that the former is a statement that explains the essential needs of a job whereas the latter is a statement which states the least qualifications, required in the job holder for the performance of a particular job. These are an integral part of HRM because it is required for every single position of the organisation, whether … [Read more...]