Learning can be understood as the fairly long-lasting change in the behaviour, arising out of the experience. It is useful for us to adapt ourselves according to the environment. The simplest form of learning is called conditioning, which can be of two kinds, i.e. classical conditioning and operant conditioning. Classical Conditioning is one in which the organism learns something through association, i.e. Conditioned Stimuli and Unconditioned Stimuli. Operant Conditioning is the type of … [Read more...]

Positive reinforcement is the process that enhances the likelihood of the response, by adding something. On the contrary, negative reinforcement is one that intensifies the probability of response, by removing or reducing something. In psychology, the concept of reinforcement is studied in operant conditioning. Reinforcement means an act in which the experimenter attempts to manage the reinforcer. Reinforcer implies the stimuli that increase the response rate. Reinforcement can be positive or … [Read more...]

One of the common strategies of the firms, to expand their business at the national or international level, is to set up branches, at different places. Branches are a part of the parent organization, which are opened to perform the same business operations as performed by the parent company, to increase their reach. Branches are not exactly same as the subsidiary company. A subsidiary company is a company, whose controlling stake is held by another entity, i.e. the holding company. Both … [Read more...]

The product is described as an article or item, which is offered by the company for sale, in exchange for money. We all know that it is the features of the product that attracts and retains customers for a long time, but the role of branding and packaging is also substantial. Branding is used to assign a unique identity to the product so that customers can easily differentiate it with other products available in the market. Now coming to, packaging, it ensures the protection of the product … [Read more...]

Line Organization is the form of organization, wherein the authority flows from the person present at the top of the organizational hierarchy to the person working at the lowest level. In line and staff organization, the hierarchy remains same as in the line organization, but specialists are attached to the front line managers to advise and guide them on significant issues. A structural relationship is required to be developed between different departments and the people working in them, for … [Read more...]

To measure inflation in an economy, usually, Wholesale Price Index (WPI) and Consumer Price Index (CPI) are used. Wholesale Price Index helps in measuring the average change in prices received on bulk sale of goods. On the other hand, Consumer Price Index is one that computes the changes in the general price level of a class of consumer goods. Indexation is the process of adjusting the monetary proceeds such as wages, interests, dividend, taxes, etc., with the help of price index, so as to … [Read more...]

The success and failure of a business entity depend highly on how it performs in the market, which is based on three important factors, i.e. productivity, utilization and efficiency. One of the primary objective of all the organizations worldwide is to improve the productivity and efficiency. So, many misconstrue these two terms which are different in the sense that productivity is the ratio of outputs produced to inputs involved in the process of production. On the other hand, efficiency is … [Read more...]

An organization is composed of members, which includes the owners, employees, workers and trainees who work for compensation which can be in the form of profit, salary or stipend. There always remains a confusion regarding when we talk about the term salary and stipend. Salary is paid to the employees, in return for the work performed by them in the organization. On the other hand, the stipend is provided to the interns or apprentices, who work in the organization for the short term, with an … [Read more...]

Monitoring and Evaluation are the two management tools that help in keeping a control on the business activities as well as raising the level of performance. Monitoring refers to an organized process of overseeing and checking the activities undertaken in a project, to ascertain whether it is capable of achieving the planned results or not. Conversely, evaluation is a scientific process that gauges the success of the project or program in meeting the objectives. The primary difference between … [Read more...]

Penetration pricing strategy is one in which the company charges a low price, in the beginning, to derive maximum sales volume from the price-sensitive customers. On the contrary, when at the initial stage high prices are charged to the customers, which is gradually decreased to attain maximum profit from less price sensitive customers. Price is among the important components of the marketing mix, which is the firm's outright source of earning, and it not only covers the cost of production … [Read more...]