GyanDoz: Update

Hi All,

Check out my new blog GyanDoz, moved from relivingmba to gyandoz now active on that blog. The new site contains blogs on topics like:

  1. 1. Management
  2. 2. Finance – General Finance covering Accounting, Corporate Finance and Various Financial terms and topics
  3. 3. Economics – All about economics
  4. 4. Personal Finance – Money Management
  5. 5. Professional Courses – CFA related
  6. 6. What Is Series: Explaining terms

Do visit and let us know if anything you want to be included on this site

http://gyandoz.blog.com/

Thanks

Mubina

GyanDoz: reliving rechristened

Hello Friends,

Over a year on wordpress, and looking at the site numbers it is really amazing, I was off the web for almost 6 months, now back.

Will be starting all over again on a new site with a new name and whole lot of things.

GyanDoz: All the Gyan (Knowledge) will not only cover Management topics but also current affairs, personal finance, general knowledge,, etc..the aim of the new blog is to impart knowledge at a common place.

Please feel free to check my new blog (although still 2 blogs old)

http://gyandoz.blog.com/

Thanks,

Mubina Munshi

 

Types of Listening

There are four types of listening

Types of Listening

1. Appreciative Listening

In appreciative listening, we seek certain information which will appreciate, for example that which helps meet our needs and goals. Appreciative listening is exactly what you would expect.  It involves listening to music that you enjoy, people you like to listen to because of their style and the choices your make in the films and television your watch, radio programmes and plays and musicals in the theatre.

2. Emphatic Listening

When we listen empathetically, we go beyond sympathy to seek a truer understand how others are feeling. This requires excellent discrimination and close attention to the nuances of emotional signals. When we are being truly empathetic, we actually feel what they are feeling.

Among its benefits, empathic listening

  • builds trust and respect,
  • enables the disputants to release their emotions,
  • reduces tensions,
  • encourages the surfacing of information, and
  • creates a safe environment that is conducive to collaborative problem solving.

3. Comprehensive Listening

Comprehensive listening where the focus is on ‘understanding the message’. The writers consider this as the basis for the next three types of listening. However, the problem can come in the form of ‘understanding’. Depending on many factors (both individual and social) students can end up understanding the same message in different, different ways.

To comprehend the meaning requires first having a lexicon of words at our fingertips and also all rules of grammar and syntax by which we can understand what others are saying.

The same is true, of course, for the visual components of communication, and an understanding of body language helps us understand what the other person is really meaning.

In communication, some words are more important and some less so, and comprehension often benefits from extraction of key facts and items from a long spiel. Comprehension listening is also known as content listening, informative listening and full listening

4. Critical Listening

Critical listening is the fourth kind of listening where listeners have to evaluate the message. Listeners have to critically respond to the message and give their opinion. Critical listening is listening in order to evaluate and judge, forming opinion about what is being said. Judgment includes assessing strengths and weaknesses, agreement and approval.

This form of listening requires significant real-time cognitive effort as the listener analyses what is being said, relating it to existing knowledge and rules, whilst simultaneously listening to the on-going words from the speaker.

Traits of a Good Listener

Whether you’re in a meeting with your boss, sitting in a lecture or trying to ace a job interview, what you hear is almost as important as what you say. How you hear is even more important.

1. Being Non-evaluative

The verbal and non-verbal behaviour of an active listener will suggest to the speaker that he/she is being properly heard and understood. The purpose is to communicate, overlooking the qualities of ideas, attitudes and values of the speaker.

Your behaviour conveys the impression that you accept the person without making any judgement of the right, wrong or bad suitable or unsuitable.

2. Paraphrasing

If one wish to clarify, you can simply paraphrase what the speaker has said and enquire from the speaker whether you have heard it accurately. Use phrase like following ones to ensure that you have correctly paraphrased the information correctly:

  • As I gather, you want to tell…
  • So you mean to say that…
  • Oh! Your feeling towards…
  • Do you mean that…

3. Reflecting implications

To reflect this you have to go a bit beyond the content of the speaker indicating him your appreciation for the ideas and where they are leading. It may take the speaker to further extension of ideas.

The listeners aim here is to reflect eagerness and zest by nodding or through verbal means thereby giving positive feedback. If you use the technique with the genuine intention of understanding more, you can certainly help the speaker by boosting the confidence making him believe that the listener has his content well

4. Reflecting hidden feelings

Sometimes, one has to go beyond the explicit feelings and contents of what is being said to unravel the underlying feelings, intensions, beliefs, or values that may be influencing the speaker’s words.

You have to try to empathize or identify yourself with the speaker, to experience what he/she feels. Also, avoid suggesting to the speaker that the feelings you reflect are what ought to be felt by him in such a situation. This would make the speaker feel evaluated.

5. Inviting further contributions

In a situation where you haven’t heard or understood enough yet to respond with empathy and understanding, prompt the speaker to give you more information. While it is useful to ask questions, be cautious about asking too many. Open minded questions create a more supportive, trusting, climate that will help the communications to move smoothly.

6. Responding non-verbally

You can show that you are an active listener by adopting certain postures and sending non-verbal signals which communicate your interest in what the speaker is saying. These include regular eye contact (without staring), body leaning slightly towards the speaker, head nods and a slightly tilted head. By giving these signals you will make the speaker feel more confident and will by reflecting interest and understanding. You will also be able to generate more trust between yourself and speaker.

Phillips Curve

An economic concept developed by A. W. Phillips stating that inflation and unemployment have a stable and inverse relationship. According to the Phillips curve, the lower an economy’s rate of unemployment, the more rapidly wages paid to labour increase in that economy.

 

Phillips conjectured that the lower the unemployment rate, the tighter the labour market and, therefore, the faster firms must raise wages to attract scarce labour. At higher rates of unemployment, the pressure abated. Phillips’s “curve” represented the average relationship between unemployment and wage behaviour over the business cycle. It showed the rate of wage inflation that would result if a particular level of unemployment persisted for some time.

 

Phillips found that there was a trade-off between unemployment and inflation, so that any attempt by governments to reduce unemployment was likely to lead to increased inflation. This relationship was seen by Keynesians as a justification of their policies.

Phillip Curve

The curve sloped down from left to right and seemed to offer policymakers a simple choice – you have to accept inflation or unemployment. You can’t lower both.

 

The movement along the curve, with wages expanding more rapidly than the norm for a given level of employment during periods of economic expansion and slower than the norm during economic slowdowns, led to the idea that government policy could be used to influence employment rates and the rate of inflation. By implementing the right policies, governments hoped to achieve a permanent balance between employment and inflation that would result in long-term prosperity.

 

In order to achieve and maintain such a scenario, governments stimulate the economy to reduce unemployment. This action leads to higher inflation. When inflation reaches unacceptable levels, the government tightens fiscal policies, which decreases inflation and increases unemployment. Ideally, the perfect policy would result in an optimal balance of low rates of inflation and high rates of employment.

 

Advantages of HRP

Human resource planning can be defined as the process of identifying the number of people required by an organization in terms of quantity and quality. All human resource management activities start with human resource planning. So we can say that human resource planning is the principle/primary activity of human resource management.

The process of HRP plays a very important role in the organization. The importance of HRP can be explained as follows.

1. Anticipating future requirement:

Through this process of HRP, the company is able to find out how many people will be required in future. Based on this requirement the company could take further actions. This method also helps the company to identify the number of jobs which will become vacant in the near future.

2. Recruitment and selection process:

The recruitment and selection process is a very costly affair for a company. Many companies spend lakhs of rupees on this process. Therefore recruitment and selection must be carried out only if it is extremely necessary. HRP process helps to identify whether recruitment and selection are necessary or not.

3. Placement of personnel:

Since the HRP process is conducted for the entire organization, we can identify the requirements for each and every department. Based on the requirement, we can identify existing employees and place them on those jobs which are vacant.

4. Performance appraisal:

HRP make performance appraisal more meaningful. Since feedback is provided in performance appraisal and employee is informed about his future chances in same company, the employee is motivated to work better. Information for all this is collected from HRP process.

5. Promotion opportunity:

HRP identifies vacancies in the entire organization including all the branches of all the company. Therefore when the company implements promotion policy it can undertake its activities in a very smooth manner.

Factors Affecting Scheduling

The factors affecting scheduling can be broadly classified into two categories:

  1. Internal factors – which affect from within the organization
  2. External factors – those affect from outside the organization

Scheduling

Internal Factors Affecting Scheduling

Followings are the internal factors affecting scheduling:

Scheduling depends on how much stock of finished goods is kept by the company. Most companies keep, one month’s supply of each product, as stock. If the company’s product is fast moving or slow moving, then scheduling will have to be changed.

2. Process intervals

It depends on the process intervals of each product. Process interval is the time required to produce a product. Different products have different process intervals. For example, the process interval of a car is more than that of a soap. Scheduling will be different for each process interval.

3. Type of machines available

It also affected by the type of machines available. If the company has old and outdated machines, the schedule must keep provisions for the breakdown of machines. Modern and computerized machines makes scheduling very easy.

4. Availability of personnel

Scheduling also depends on the availability of personnel. If the company has untrained and inexperienced employees, then they will take more time to produce a product. So, the schedule must keep provisions for this. A faster schedule will be required for trained and experienced employees.

5. Availability of materials

It is also affected by the availability of materials. If a regular supply of materials is available, then the company can do normal-scheduling. However, if the supply of materials is irregular, the schedule must be made flexible. That is, when the supply is good then the schedule will be fast and vice versa.

6. Manufacturing facilities

Scheduling depends on the manufacturing facilities available in the company. This includes space for new machines, employees, etc. It also includes the availability and supply of electricity and water, which may be required for production. If all the required infrastructure is available, then the production schedule can be fast and vice versa.

7. Economic production run (EPR)

It also depends on the economic production runs. Economic production runs (EPR) means the optimum lot size. That is, how many items must be produced in one lot in order to minimize the cost of production. If the company produces more or less than the optimum lot size, then the cost of production will increase. There are many formulas for calculating optimum lot size. Scheduling must be done only after calculating the optimum lot size.

External Factors Affecting Scheduling

The external factors affecting scheduling are as follows:

1. Consumer demand

Scheduling also depends on the consumer demand. Consumer demand can be found out by sales forecast. So, the production schedule is prepared according to the sales forecast. However, it has to be adjusted (changed) when the actual demand is different from the sales forecast.

2. Consumer delivery dates

The production schedule also depends on the consumer delivery dates. The consumer is the most important person in a business. So, this factor must be given more importance than other factors. The production schedule must be made in such a way that it will guarantee timely delivery to the consumers. In case of seasonal goods, production must be spread out throughout the year; so, there will not be too much pressure in demand season.

3. Dealers and retailers inventories

It also depends on the stock of goods (inventories) with dealers and retailers. The production manager must find out how much stocks is held by dealers and retailers. He must also know why they are keeping this stock. Are they keeping this stock to meet current demand? If yes, then normal-scheduling can be done. However, if they are keeping stock in anticipation of future demand, the scheduling will have to be slowed down because there will be fewer orders in the future.

Features of International Business

The nature and characteristics or features of international business are:

1. Large scale operations

In international business, all the operations are conducted on a very huge scale. Production and marketing activities are conducted on a large scale. It first sells its goods in the local market. Then the surplus goods are exported.

2. Integration of economies

International business integrates (combines) the economies of many countries. This is because it uses finance from one country, labor from another country, and infrastructure from another country. It designs the product in one country, produces its parts in many different countries and assembles the product in another country. It sells the product in many countries, i.e. in the international market.

3. Dominated by developed countries and MNCs

International business is dominated by developed countries and their multinational corporations (MNCs). At present, MNCs from USA, Europe and Japan dominate (fully control) foreign trade. This is because they have large financial and other resources. They also have the best technology and research and development (R & D). They have highly skilled employees and managers because they give very high salaries and other benefits. Therefore, they produce good quality goods and services at low prices. This helps them to capture and dominate the world market.

4. Benefits to participating countries

International business gives benefits to all participating countries. However, the developed (rich) countries get the maximum benefits. The developing (poor) countries also get benefits. They get foreign capital and technology. They get rapid industrial development. They get more employment opportunities. All this results in economic development of the developing countries. Therefore, developing countries open up their economies through liberal economic policies.

5. Keen competition

International business has to face keen (too much) competition in the world market. The competition is between unequal partners i.e. developed and developing countries. In this keen competition, developed countries and their MNCs are in a favourable position because they produce superior quality goods and services at very low prices. Developed countries also have many contacts in the world market. So, developing countries find it very difficult to face competition from developed countries.

6. Special role of science and technology

International business gives a lot of importance to science and technology. Science and Technology (S & T) help the business to have large-scale production. Developed countries use high technologies. Therefore, they dominate global business. International business helps them to transfer such top high-end technologies to the developing countries.

7. International restrictions

International business faces many restrictions on the inflow and outflow of capital, technology and goods. Many governments do not allow international businesses to enter their countries. They have many trade blocks, tariff barriers, foreign exchange restrictions, etc. All this is harmful to international business.

8. Sensitive nature

The international business is very sensitive in nature. Any changes in the economic policies, technology, political environment, etc. have a huge impact on it. Therefore, international business must conduct marketing research to find out and study these changes. They must adjust their business activities and adapt accordingly to survive changes.

 

Importance of International Business

The points below highlight the importance of international business:

1. Earn foreign exchange

International business exports its goods and services all over the world. This helps to earn valuable foreign exchange. This foreign exchange is used to pay for imports. Foreign exchange helps to make the business more profitable and to strengthen the economy of its country.

2. Optimum utilization of resources

International business makes optimum utilization of resources. This is because it produces goods on a very large scale for the international market. International business utilizes resources from all over the world. It uses the finance and technology of rich countries and the raw materials and labor of the poor countries.

3. Achieve its objectives

International business achieves its objectives easily and quickly. The main objective of an international business is to earn high profits. This objective is achieved easily. This it because it uses the best technology. It has the best employees and managers. It produces high-quality goods. It sells these goods all over the world. All this results in high profits for the international business.

4. To spread business risks

International business spreads its business risk. This is because it does business all over the world. So, a loss in one country can be balanced by a profit in another country. The surplus goods in one country can be exported to another country. The surplus resources can also be transferred to other countries. All this helps to minimize the business risks.

5. Improve organization’s efficiency

International business has very high organization efficiency. This is because without efficiency, they will not be able to face the competition in the international market. So, they use all the modern management techniques to improve their efficiency. They hire the most qualified and experienced employees and managers. These people are trained regularly. They are highly motivated with very high salaries and other benefits such as international transfers, promotions, etc. All this results in high organizational efficiency, i.e. low costs and high returns.

6. Get benefits from Government

International business brings a lot of foreign exchange for the country. Therefore, it gets many benefits, facilities and concessions from the government. It gets many financial and tax benefits from the government.

7. Expand and diversify

International business can expand and diversify its activities. This is because it earns very high profits. It also gets financial help from the government.

8. Increase competitive capacity

International business produces high-quality goods at low cost. It spends a lot of money on advertising all over the world. It uses superior technology, management techniques, marketing techniques, etc. All this makes it more competitive. So, it can fight competition from foreign companies.

Scheduling: Principles and Strategies

Scheduling can be defined as “prescribing of when and where each operation necessary to manufacture the product is to be performed.”

Principles of Scheduling

  1. The principle of optimum task size: Scheduling tends to achieve maximum efficiency when the task sizes are small, and all tasks of same order of magnitude.
  2. Principle of optimum production plan: The planning should be such that it imposes an equal load on all plants.
  3. Principle of optimum sequence: Scheduling tends to achieve the maximum efficiency when the work is planned so that work hours are normally used in the same sequence

Inputs to Scheduling

  1. Performance standards: The information regarding the performance standards (standard times for operations) helps to know the capacity in order to assign required machine hours to the facility.
  2. Units in which loading and scheduling is to be expressed.
  3. Effective capacity of the work centre.
  4. Demand pattern and extent of flexibility to be provided for rush orders.
  5. Overlapping of operations.
  6. Individual job schedules.

Scheduling Strategies

Scheduling strategies vary widely among firms and range from ‘no scheduling’ to very sophisticated approaches.

These strategies are grouped into four classes:

  1. Detailed scheduling: Detailed scheduling for specific jobs that are arrived from customers is impracticable in actual manufacturing situation. Changes in orders, equipment breakdown, and unforeseen events deviate the plans.
  2. Cumulative scheduling: Cumulative scheduling of total work load is useful especially for long range planning of capacity needs. This may load the current period excessively and under load future periods. It has some means to control the jobs.
  3. Cumulative detailed: Cumulative detailed combination is both feasible and practical approach. If master schedule has fixed and flexible portions.
  4. Priority decision rules: Priority decision rules are scheduling guides that are used independently and in conjunction with one of the above strategies, i.e., first come first serve. These are useful in reducing Work-In-Process (WIP) inventory.

 

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