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  Image Credit: toppr.com Management by Objective- MBO (Individual Performance Appraisal “HR Perspective”) Appraisal by result, target coaching, work planning and review, performance objective setting, and mutual goal setting. There are various methods to evaluate the employee’s performance, and all these have its advantage and disadvantage.  One of them is MBO method which bring together superior and employee together to sit and set the objective and performance standard which required at organization. It also talk about continual discussion about periodic employee’s performance. Management by Objective (MBO) specifies the performance goal that an individual and Manager identify together. Each manager sets objectives derived from overall goals and objectives of the organizations. Categories scaling method, in this method employee’s performance are checked with their supervisor and based of supervisor feedback employee’s performance are categories into Categories (A, B, C) Sca...

                          Image credit: managementnote.com Employee’s performance is subject matter for forever. Companies adopt new system, policy & procedure to enhance employee’s performance. There are lots of new applications are getting developed to enhance employees/ group / peer performance, all these relate to employees in- role activity. There is job description in-role activity. Through in- role activity employer emphasis on employee’s productivity and quality and employee’s performance are measures periodically through their evaluations. There is one where less employer focus on employee’s OCB (Organizational Citizen Behaviors)  OCB (Organizational Citizen Behaviors) is an extra job role or employee’s behavior which add more value or help employee for outstanding performance at work. It can be understand by employee’s behavior at work place. If we compare in role performance and extra role per...

Business need cash to make payments for acquisition of resources and services for normal conduct of business.  Cash is one of the important and key parts of the current assets. Cash is the money which business concern can disburse immediately without any restriction. The term cash included coins, currency, cheques held by business and balance in its bank accounts. Cash management techniques Managing cash flow constitutes two important parts Speedy cash collection Slowing disbursement Speedy cash collections  Business must concentrate in the field of speedy cash collection from customers. For that, the concern prepares systematic plan and refined techniques. These techniques aim at, the customer who should be encourage to pay as quickly as possible and the payment from customer without delay. Speedy cash collection business concern applies some of the important techniques as follow: Business concern should encourage customers to pay promptly with the help of offering discounts,...

 Working Capital is describe as the capital  which is not fixed but the more common uses of the working capital is to consider it as the difference between the book value of current assets and current liabilities. Working capital is need for meeting day to day requirement of business. For example payment to creditors, salary paid to workers, purchase raw materials etc. Working capital can be classified into two parts Gross working capital Net working capital Gross Working Capital is the general concept, which consider both current assets and current liability of business. Net working capital is the excess of current assets over the current liabilities of business during a particular period. Components of working capital Current Assets and current liabilities Current Assets; Cash in  Hand, cash at bank, Bills receivable, Sundry debtors,  short term loan advances, inventories, Prepaid expenses, Accured income. Current Liabilities: Bills Payable, Sundry Creditors, Outst...

 Capital Budgeting is acquiring input with long term return” Richard and Green Law According to the definition of Lyrich, “Capital budgeting consist in planning development of available capital for purpose of maximising the long term profitability of concern. Need and importance of capital Budgeting Huge Investment: Capital budgeting required huge investment of funds, but the available funds are limited, therefore the firm before investing projects, plan are control its expenditure. Long Term:- Capital Expenditure is long term in nature or permanent in nature. Therefore financial risk involved in the investment decision are more. If higher risk are involved, it need careful planning of capital budgeting. Irreversible: The capital investment decision are irreversible , are not changed back, once the decision is taken for purchasing a permanent asset, it is very difficult to dispose of those assets without involving huge losses. Long term effect: - Capital budgeting not only reduces ...

 The term leverage refers to an increased means of accomplishing some purpose. Leverage is used to lifting heavy objects, which may not be otherwise possible. In the financial point of view, leverage refers to finish the ability to use fixed cost assets or funds to increase the return to its shareholders. Leverage can be classified into three major headings according to the nature of the finance mix of the company. Leverage=Financial Leverage & operating Leverage, Composite leverage is mixture of Financial & Operating Leverage. Operating Leverage: The leverage associated with investment activities is called as operating leverage. It is caused due to fixed operating expenses in the company. Operating leverage may be defined as the company’s ability to use fixed operating costs to magnify the effect of changes in sales on its earnings before interest and tax. Operating leverage consists of two important costs (Fixed cost and variable cost) when the company is said to have a h...

Cost of capital is an integral part of investment decision as it is used to measure the worth of investment proposal by business concern. It is uses as discount rate in determining the present value of future cash flows associated with capital projects. Cost of capital is also called as cut off rate, target rate, hurdle rate and required rate of return. When forms are using different sources of finance, the finance manager must take careful decision with regard to the cost of capital, because it is closely associated with the value of the firm and earning capacity of the firm. Classification of cost of capital. Explicit and implicit cost Average and marginal cost Historical and future cost Specific and combined cost Explicit and implicit cost The cost of capital may be explicit or implicit on the basis of the consumption of the capital. Explicit cost is the rate that the firm pays to procure financing.  Implicit cost is the rate of return associated with the best investment opportu...

The term financial structure is different from capital structure. Financial structure shows the pattern total financing. It measures the exact to which total funds are available to finance the total assets of capital. Financial structure = Total Liabilities Financial structure = Capital structure+ Current Liabilities Nature of financial structure: It includes both long term and short term sources of fund. It means the entire liabilities side of the balance sheet Financial structure consists of all sources of capital It will be not more important while determining the value of the firm Nature of Capital Structure: It includes only long term sources of funds It means only the long term liabilities of the company. It consists of equity, preference and retained earning capital. It is the major determinations of value of the firm. 

Capital is the major part of all kind of business activities, which are decided by the size, and nature of the business concern. Capital may be raised with the help of various sources. If the company maintains proper and adequate level of capital, it will earn profit and they can provide more dividends to its shareholders. Capital structure is the kind of securities and proportionate amounts that make up capitalization. It the mix of different sources of long term sources such as equity shares, preference share, and debenture, long –term loans and retained earnings. Capital structure is the permanent of financing of the company represented by long term debt and equity.

Capitalization is one of most important part of financial decision, which is related to the total amount of capital employed in the business. Understanding the concept of capitalization leads to solve many problems in the field of financial management. Because there is a confusion among capital, capitalization and capital structure. Capitalizations refers to the process of determining the quantum of funds that a firm needs to run its business. Capitalization is only the par value of share and debenture and it does not include reserve and surplus. Types of capitalizations Overcapitalization Under capitalization Water capitalization Over capitalization Over capitalization refers to the company which possesses an excess of the capital in relation to its activity level and requirement. In simple means, over capitalization is more capital then actually required and the fund are properly used. Causes of over capitalization: Over issue of capital by company Borrowing large amount of capital a...

Capital refers to the total investment of company in the term of money, and assets. It is called as total wealth of company. When company is going to invest large amount of finance into the business, it is called capital. Capital is the initial and integral part of new and existing business concern. There are two types of capital: Fixed Capital Working Capital Fixed Capital: Fixed capital is need to meet long term or permanent purpose of business concern. Fixed capital is required mainly for purpose of meeting capital expenditure of business and it is used over a long period. It is the amount invested in various fixed or permanent assets, which are necessary for business.  Working Capital: Working capital is needed to meet the business day to day transaction of business. Working capital consist of various compositions of current assets such as inventory, bills, receivable, debtors, cash and bank balance and prepaid expenses. Working capital is used to purchase of raw materials, pay...

Overdraft facility is given by a bank to its customer who has current account.  Only current account holders are given overdraft facility. Through overdraft a bank allows account holder to withdraw the amount more than bank account balance to a certain limit. 

A Cash credit is arrangement by which a bank allows his customer to borrow money up to certain limit against the security of commodity.

Retained earnings are another method of internal sources of finance. Actually it is not a method of raising finance, but it is called as accumulation of profit by company for its expansion and diversification activities. Retained earnings are called by different names like self-finance, inter finance and plugging back of profit. Advantage of retained Earnings: Useful for Expansions and diversification: Retained Earnings are most useful for Expansions and diversification of business activities. Economical Sources of Finance: Retained Earnings are on the least costly sources of fiancé since it does not involve any floatation cost as in the case of raising of funds by issuing different types of securities. Flexible Sources:  Retained earning allow the financial structure to remain completely flexible. The company need to raise loans for further requirements. Increase the share value: when the company uses the retained earnings as the source of the finance for their financial requireme...

Depreciation funds are the major part of internal sources of finance, which is used to meet the working capital requirement of business concern. Depreciation means decrease in the value of the assets due to wear and tear, lapse of time, exhaustions and accidents. The proposed of depreciation is replacement of the assets after expired period. It is kind of provision of fund.

 A Debenture is the document is issued by company. It is the certificate issued by company under its seal acknowledging a debt. Debentures can be divided into following major types. Unsecured debenture: Unsecured debentures are not given any security on assets of the company. It is also called simple or naked debenture. This types of debentures are traded as unsecured creditors at the time of winding up of the company. Secured Debenture: Secured debentures are given security on assets of the company. It is also called the mortgaged debenture because these debentures are given against of the assets of the company. Redeemable debenture: These debentures are to be redeemed on the expiry of certain period. The interest paid periodically and the initial investment is returned after the fixed maturity period. Irredeemable debenture: This kind of debenture cannot be redeemable during the lifetime of the business concern. Other types:  Collateral Debentures Guaranteed Debentures First...

When shares having no face value, it is said to be no par shares. The company issue this kind of shares which is divided into a number of specific shares without any specific denominations. The value of share can be measured by dividing the real net worth of the company with total number of share.

Deferred share are also called as founder share because these shares were normally issued to founders. The shareholders have a preferential right to get dividend before the preference share and equity shares.

It is the shares, which have preferential right to get dividend and get back the initial investment at the time of winding up the company. Preference shareholders are eligible to get fixed rate of dividend and they do not have voting right. Preference share may be classified into major types Cumulative Preference share: cumulative preference share have right to claim dividends for those years which have no profit. If the company is unable to earn profit in any one or more years, these shares are unable to get any dividend but they have right to get comparative dividend for the previous years if the company earned profit.  Non-Cumulative Preference share: Non-Cumulative preference share have no right to earn dividends for those years which have no profit. They are eligible to get only when company earn profit, otherwise they cannot claim for dividend. Redeemable Preference share: When preference share have fixed maturity period it become redeemable preference share. 

Equity share also known as ordinary share, which means, other than preference share. Equity shareholder are the real owners of the company. They have a control over the management of the company. Equity shareholders are eligible to get dividends if the company earn profit. Equity share cannot be redeemed during the lifetime of the company. The liability of Equity shareholder is the value of unpaid value of share. Feature of Equity share. Maturity of share: Equity shares have permanent nature of capital. Which has no maturity period. It cannot be redeemed during the life time of the company. Residual Claim on Income: If the company wound up, the ordinary or Equity shareholders have right to get the claims on assets these rights are available only for equity shareholders. Right to control: Equity shareholders are the real owners of the company. Hence they have power to control the management of the company and they have power to take any decision regarding the business operation. Voting ...

Cash flow statement is the statement which shows the sources of each inflow and uses of cash out flow of the business concern during the particular period of time. It is the statement which involves only short term financial positions of business concern cash flow statement provides a summary of operating , investment and financing cash, flow and reconcile them with changes in its cash and cash equivalents such as marketable securities.

Fund flow statement is one of the important tools, which is used in many ways, it helps to understand the changes in financial position of a business enterprises between the beginning and ending financial statement dates. It is also called as statement of sources and uses of funds. The purpose of the statement is to indicate clearly the requirement of the fund and how they proposed to be raised and efficient utilization and application of same.

  Image Credit: snacknation.com Today most of people wish to get their dream job, some people get and some people does not. Getting a job is the initiate stage in the professional life for a fresher and continuing in the job for long in the company is the subject matter for performance at job. There are lots of people who get their desire job or selected in desired company or selected for desired positions but they quit the job during probation period or within one year. People quit the job due to organizational culture, work pressure, company work style, company policy and procedure, Due to reporting manager way to talk and behave & reaction, salary and career progression in the company, There are three Categories of employee’s in an organization. First Categories: This category of employees think that they will work as much as they are paid. These types of employees are self-willed nature. Whether they work they behave and programmed their mind accordingly. They are very prof...

Financial statement analysis is used to understand the financial position during a particular period. According to Myres, Financial statement analysis is largely a study of the relationship among the various financial factors in the business as disclosed by a single set of statement and study of the trend these factors as shown in the series of statement. Financial statement analysis on the basis of material used. External Analysis: - outsiders of the business do normally external analysis but they are indirectly involved in the business concern such as investors, creditors, government organizations and credit agencies. External analysis is very useful to understand financial & operational position of the organization. It has been observe that the people who are keen in share market investment. They check comparative income & position statement of the organization, and understand the business position of the organization to scale on the various analysis. Like net sales, gross p...

Financial statement is the summary of accounting process of any firm. There are two aspect of financial statement. Income statement or profit or loss account other is position statement or balance sheet of the firm. Income statement or profit and loss account is the summary for firm income generated and firm expenditure on particular period of time. Position statement or balance sheet is the summary of a firm its capital and liabilities, reserve & surplus, creditors, loan while other site of position statement show cash at bank, cash at hand, firm assets, debtors. 

Finance manager play different- different role in organization. Finance manager’s function depends on nature of company & types of work assignment to him. For Example: Auto showroom, there is a finance manager who only deals in loan of vehicle, he study customer profile, Salaried or self-employed, theirs banking, Income statement, Existing any loan from any bank, loan amount requested, rate of interest required to him. Loan sanctions, delivery order from bank and loan amount disbursal to Dealer ship Account. Here are below functions which finance managers basically do.   Cash management:-Present days cash management play a major role in the area of finance because proper cash management is not only essential for effective utilization of cash but it is also help to meet short term liquidity position of concern.  Investment decision: finance manager must carefully select best investment alternative and consider reasonable and suitable return on investment. He must be well ve...

According to khan & Jain: “Finance is art and science of managing money”.it includes financial service and financial instrument, finance is also referred as the provision of the money at the time when it needed. Finance function is the procurement of fund and its proper utilization in the business. Business concern need finance to meet their requirement in the today world. Any business need money for its proper function. So money is called the lifeblood of the organization. Without finance we cannot imagine proper functioning of our economic system and country’s import & export. Finance can be divided in two parts: Private finance & Public finance. Private Finance: Individual Finance, partnership finance and business finance, it menas finance related to Individual, firm business, Corporates called Private finance. Public Finance: Finance related to Central government, state government & semi government are called Public Finance.

 Matt Rhule Matthew Kenneth Rhule is an American football coach and former player who was most recently the head coach of the Carolina Panthers of the National Football League. He was formerly the head coach at Baylor University and Temple University.

What is your Perspective about Manager? Is the People who control or Manage organisations like corporate Houses, Banking, Financial Instructions Investment fund and Construction Business called the Manager? I think your answer will be ...........Yes. Actually not like this. The word Manager is made from Manage. Manage means:handle,administer and maintain. Everyone is here manager of his role and responsibilities, his health, his emotion,his feeling, his anger and his /her body and mind. The people who manages all above things can be called manager. Some people cannot be agree with my thinking. Mostly people concept about manager is the people who handle the managerial work in an organisation is manager. This is my thoughts only......not universal truth. this is taken from my upcoming book- ABCBM(Any body can be manager)

                                    Image Credit: guidebook.com Organized planning is a process which shows you the path to go and indicate you where you are, and guide you what you have to do, as well as its guide you when you have to complete the task. What percentage of task have you completed and percentage of task not completed? Which task needs more concentration? To follow the organized plan you have to possess below headlines to make successful of your plan:- ⦁ Punctual: you will have to be punctual on your time and work. ⦁ Disciplined: you have to maintain disciplined in any field of life. ⦁ Commitment: you have to commit yourself for your goal or any purpose in your life. ⦁ Determination: you will have to be determined that you will achieve the goal at any rate. ⦁ Hope: - Hope is the last thing which alive all dead wishes. Always keep hope that one you will be suc...

                             Image credit : dreamstime.com God has created the whole world. He made forest. He made animals. He made mountains. He made rivers, seas and oceans. He made sky and earth. He made air, water, fire and finally he made human being. He is everywhere. He is present in everything either living or non-living. When he created human being then he poured all his blessing on him. All the people are not same looking alike. Everyone thinking is different from each other. Their height, colours, language, environment are different but there are some things similar in human beings are capacity and power of their mind. Every human being has same capacity of one’s mind. Our body shapes are different, our thinking’s are different, our behaviours are different, our learning styles are different, and our choices are different. Everyone on the earth is unique and different from each other. We hav...

 Image Credit: etmoney.com Financial freedom means , you  should have  purchasing power, in other words we can say that you have freedom to spend your money without looking back at your bank account. Most of us work whole the life but when we analyze what is saving to us, we get amazed there is noting cash at hand or cash at bank. This happens with most of people , they earn the money whole the life and at the time of retirement they have noting to spend in their life currently  and for further.  This does not relate with only who earn few but also who earn more. there are lots of people who think that there a only job can  be source of income. but there are lot of sources are available for earning. To get financial freedom in the life who have to think for alternate source of income otherwise a job can give financial freedom for max six months to someone and not everyone. There are mainly three sources of income: 1. Job 2. Investment 3. Business. Most of p...

                          Image Credit: Content.mycareersfuture.gov.sg Today most of employees want to become performer at workplace and get praise by peers, by their team leaders and by Managers or to get best performance appraisal feedback by their reporting Managers or to get promotion in the organization. To grow in an organization, years of experience does not matter, matter your sincerity for assigned work, punctuality at workplace, time line of response and many more. Skills impact on overall performance of an employee. One of them is leadership. Leadership skill is very essential for an employee to grow quickly in the organization. A leader leads the employees, motivate the employees, inspire the employees, empower the team, and share organizational mission with employees. A leadership quality always praised by everyone. Lots of example we can find within the organization and outside the organization. To ...

Think in the beginning what was on the earth. Only land to live. Our ancestor search water to drink, selected fruits to eat. Grow various type of plant of grain to eat. Leaves of tress were used for cloths. At that time to spend life was very difficult. Thinks about today all necessary things are available .suppose you have to go Delhi.  You have three choices 1. Train 2. Aero plane 3. By your own vehicle. All these invented because we feel need of it. How it happen because we think about this. Mind has unlimited power you should believe this. Do you say I cannot do this? It is impossible.  Impossible always says: I’m + possible : Impossible =I+am+possible.  Everyone, at some point of his or her life, has dreamed to become successful person in the life. Who does not want to be successful in life? It is everyone wishes. But what happens? Some people gets success and some people does not? How many times have we dreamed to become rich or successful? To be happy with your rel...

 Know your Body and Mind. God has created the whole world. He made forest. He made animals. He made mountains. He made rivers, seas and oceans. He made sky and earth. He made air, water, fire and finally he made human being. He is everywhere. He is present in everything either living or non-living. When he created human being then he poured all his blessing on him. All the people are not same looking alike. Everyone thinking is different from each other. Their height, colours, language, environment are different but there are some things similar in human beings are capacity and power of their mind. Every human being has same capacity of one’s mind. Our body shapes are different, our thinking’s are different, our behaviours are different, our learning styles are different, and our choices are different. Everyone on the earth is unique and different from each other. We have different types of bodies. Some people are fat & some are thin. Someone’s body grows rapidly someone’s slow...