QUICK REVISION OF THEORIES OF MOTIVATION PART 1 ( HINDI)

TRADITIONAL ORGANIZATION THEORY 1

   TRADITIONAL ORGANIZATION THEORY 1
ORGANIZATION BEHAVIOR

   EVOLUTION OF ORGANIZATIONAL THEORY

1.       CAN ABE TRACED BACK TO THE DAYS WHEN THE HUMAN BEINGS STARTED LIVING IN GROUPS.

2.       HISTORY REVEALS THAT STRONG MEN ORGANIZED THE MASSES INTO GROUP ACCORDING TO THEIR INTELLIGENCE,PHYSICAL AND MENTAL CAPABILITIES

3.       ACCORDING TO 1300 B.C ,THE ART OF MANAGEMENT BEING PRACTICES IN DIFFERENT FORM BY DIFFERENT PEOPLE

4.       SIMILAR RECORD EXIST IN CHINA.

5.       ACCORDING TO HSU,CONFUCIUS’S PARABLES INCLUDE PRACTICAL SUGGESTION FOR PROPER ADMINISTRATION AND ADMONITIONS TO CHOOSE HONEST,UNSELFISH AND CAPABLE PUBLIC OFFICERS

6.       BELIEVED THAT THE SUCCESS OF ROMAN EMPIRE LAY IN THE ABILITY OF ROMANS TO ORGANIZE BY USING SCALAR PRINCIPLE AND THE DELEGATION OF AUTHORITY.

QUICK REVISION FOR NATURE AND SIGNIFICANCE OF MANAGEMENT FOR BUSINESS S...

MANAGEMENT VS ADMINISTRATION

MANAGEMENT VS ADMINISTRATION

Ø  MANAGEMENT VS ADMINISTRATION
PLUS TWO COMMERCE
MANAGEMENT
COCEPTUAL SERIES FOR COMMERCE AND MANAGEMENT

NATURE AND SIGNIFICANCE OF MANAGEMENT QUICK REVISION FOR EXAM

Ø  QUICK REVISION FOR BUSINESS STUDIES
SHORT QUESTIONS
LECTURE 1
PLUS TWO COMMERCE
AND COMPETITIVE EXAM SERIES FOR COMMERCE AND MANAGEMENT

• NATURE AND SIGNIFICANCE OF MANAGEMENT
• TRADITIONAL CONCEPT OF MANAGEMENT FOCUSES ON

CENTRALIZATION AND DECENTRALIZATION

◦ CENTRALIZATION AND DECENTRALIZATION
BUSINESS ORGANISATION AND MANAGEMENT
PRINCIPLES OF MGMT

Ø      MEANING OF CENTRALIZATION

◦     IS THE PROCESS BY WHICH THE ACTIVITIES OF AN ORGANIZATION PARTICULARLY THOSE REGARDING PLANNING AND DECISION MAKING BECOME CONCENTRATED WITHIN ORGANIZATION ARE CONCENTRATED TO SPECIFIC LEADER OR LOCATION. IN CENTRALIZED ORGANIZATION,THE DECISION MAKING POWERS ARE RETAINED IN THE HEAD OFFICE AND ALL OTHER OFFICES RECEIVE COMMAND FROM THE MAIN OFFICE.

FUND FLOW STATEMENT

´   LONG TERM QUESTION
PAPER ACCOUNTING FOR MGMT

´   A FUND FLOW STATEMENT IS A BETTER SUBSTITUTE THAN A INCOME STATEMENT? ELABORATE?

´   ANSWER

´   MEANING OF FUND FLOW STATEMENT:-

´   ANSWER: IT SHOWS THE SOURCES AND APPLICATION OF FUNDS BETWEEN TWO BALANCE SHEETS.

´   IT IS HISTORICAL RECORD OF WHERE THE FUNDS CAME FROM AND HOW THESE FUNDS ARE WERE UTILIZED DURING THE ACCOUNTING PERIOD.

´   IN NARROW SENSE THE TERM FUNDS REFERS TO CASH IN HAND AND ALSO CASH AT BANK

´   IN BROADER SENSE  THE TERM FUNDS REFERS TO ALL THE FINANCIAL RESOURCES OF THE FIRM INCLUDING THE WORKING CAPITAL

´   MEANING OF FUNDS FLOW STATEMENT

´   IN POPULAR SENSE THE FUND MEANS THE NET WORKING CAPITAL OF THE FIRM WHICH IS THE DIFFERENCE BETWEEN TOTAL CURRENT ASSETS AND CURRENT LIABILITIES. IT WILL INCLUDE ALL THE TRANSACTIONS WHICH AFFECT THE WORKING CAPITAL OF THE FIRM. MOST ACCEPTED DEFINITION OF FUNDS.

´   ANTHONY,”FUND FLOW STATEMENT DESCRIBES THE SOURCES FROM WHICH ADDITIONAL FUNDS WERE DERIVED AND THE USES TO WHICH THESE FUNDS WERE PUT. IT IS STATEMENT BY WHICH WE STUDY THE CHANGES IN WORKING CAPITAL POSITION OF A BUSINESS ENTERPRISE BETWEEN TWO BALANCE SHEET DATES.

´   ALSO KNOWN BY STATEMENT OF SOURCES AND APPLICATION OF FUNDS

´   WHERE GOT AND WHERE GONE STATEMENT

´   STATEMENT OF FUNDS RECEIVED AND DISBURSED.

´   DIFFERENCE BETWEEN

´   INCOME STATEMENT

•                   EXPLAINS THE NET POSITION AND RESULT

•                   FAILS TO DISCLOSE ACCURATELY THE FUNDS FROM THE OPERATIONS

´   BUT FUND FLOW STATEMENT

•                   SOURCES AND APPLICATION OF FUNDS

•                   EXPLAINS THE SOURCES AND USES OF FUNDS BOTH OPERATING AND NON OPERATING ACTIVITIES SEPARATELY

´   FLOW OF FUNDS

´   MEANS CHANGES OR MOVEMENT OF FUNDS.

´   IMPLIES CHANGES IN WORKING CAPITAL CAUSED BY THE TRANSACTIONS WHICH MAY BE RELATED TO OPERATIONS OR FINANCIAL OR INVESTMENT

´   THE FLOW OF FUNDS TAKES PLACE WHEN A TRANSACTION TAKES AFFECT THE WORKING CAPITAL I. E. THE WORKING CAPITAL INCREASES OR DECRESES. IF THE EFFECT OF A TRANSACTION RESULT IN DECREASE OF FUNDS IT IS KNOWN AS APPLICATION OF FUNDS BUT IF THE EFFECT OF TRANSACTIONS RSULT IN INCREASE OF FUNDS IT IS KNOWN AS SOURCE OF FUNDS

´   RULES FOR THE FLOW  OF FUNDS

´   THE FLOW OF FUNDS OCCURS WHEN A TRANSACTION RESULT ON THE ONE HAND A NON CURRENT ACCOUNT AND CURRENT ACCOUNT VICE VERSA

´   WHEN A TRANSACTION RESULTS IN CHANGES ONE CURRENT ACCOUNT AND OTHER CURRENT ACCOUNT OR CHANGE IN NON CURRENT ACCOUNT IN NON CURRENT ACCOUNT . THERE IS NO MOVEMENT OF FUNDS.

´   FLOW OF FUNDS

•                   PURCHASE OF FIXED ASSET ON CASH BASIS/OR ON SHORT TERM CREDIT BASIS

•                   ISSUE OF SHARES FOR CASH,REPAYMENT OF LONG TERM LIABILITIES IN CASH

•                   NO FLOW OF FUNDS:

•                PAYMENT MADE TO CREDITORS

•                PURCHASE OF FIXED ASSETS BY ISSUING SHARES/DEBENTURES

´   PREPARATION OF FUND FLOW STATEMENT

´   PREPARATION OF SCHEDULE OF CHANGES IN WORKING CAPITAL

´   CALCULATION OF FUNDS FROM OPERATION/OR FUND LOST IN OPERATIONS

´   IDENTIFICATION OF HIDDEN INFORMATION

´   PREPARATION OF FUND FLOW STATEMENT

´   STATEMENT OF SCHEDULE OF CHANGES IN WORKING CAPITAL

´   RULES FOR PREPARING THE SCHEDULE

´   AN INCREASE IN THE CURRENT ASSETS RESULT IN INCREASE IN WORKING CAPITAL

´   DECREASE IN CURRENT ASSETS RESULT IN DECREASE IN WORKING CAPITAL

´   AN INCREASE IN CURRENT LIABILITY RESULT IN DECREASE WORKING CAPITAL

´   A DECREASE IN CURRENT LIABILITY RESULT IN INCREASE IN WORKING CAPITAL

´   ADJUSTED PROFIT AND LOSS ACCOUNT

´   DR SIDE

´   BY DEPRECIATION AND DEPLETION OF FIXED ASSETS

´   TO AMORTIZATION OF INTANGIBLE ASSETS

´   TO LOSS ON SALE OF FIXED ASSETS

´   TO PREMIUM ON REDEMPTION

´   TO APPROPRIATION OF RETAINED EARNINGS

´   TO PROVISION FOR TAXATION(NOT CL)

´   TO OTHER NON FUND OR NON OPERATING EXPENSES

´   TO CLOSING BALANCE OF PROFIT AND LOSS ACCOUNT

´   CREDIT SIDE

´   BY PROFIT AND LOSS ACCOUNT(LAST BALANCE SHEET)

´   BY PROFIT ON SALE OR REVALUATION OF FIXED ASSETS

´   BY INCOME FROM TRADING ACTIVITIES

´   BY PROFIT FROM SALE OF INVESTMENTS

´   BY PROFIT ON REDEMPTION

´   BY OTHER NON FUND/NON OPERATING INCOME

´   BY FUND FROM OPERATION

´   SOURCES AND APPLICATION OF FUNDS

´   SOURCES

´   FUND FROM OPERATION

´   ISSUE OF SHARE CAPITAL

´   ISSUE OF DEBENTURES

´   INCREASE IN LONG TERM LIABILITIES

´   SALE OF FIXED ASSETS AND LONG TERM INVESTMENTS

´   NET OPERATING INCOME

´   ANY OTHER SOURCE

´   DECREASE IN WORKING CAPITAL

´   APPLICATION

´   FUNDS LOST IN OPERATIONS

´   REPAYMENT OF LONG TERM LOANS AND DEBENTURES

´   REDEMPTION OF SHARE CAPITAL

´   PURCHASE OF FIXED ASSETS

´   LONG TERM INVESTMENTS

´   PAYMENT OF CASH DIVIDEND AND TAX

´   ANY OTHER APPLICATION

´   INCREASE IN WORKING CAPITAL

´   MERITS

I.        IT EXPLAINS THE LIQUIDITY AND ADEQUACY OF FUNDS

II.        EXPLAINS THE FACTORS WHICH BRINGS CHANGES IN WORKING CAPITAL

III.        HELPS MGMT IN ALLOCATING THE RESOURCES

IV.        HELPS IN ASSESSING THE CREDIT WORTHINESS OF THE FIRM

V.        HELPS IN PLANNING THE SOURCE OF REPAYMENT OF LONG TERM DEBTS,,REDEMPTION OF PREFERENCE SHARE CAPITAL AND OTHER LIABILITIES

´   LIMITATION

      I.        DOES NOT PROVIDE ANY THING NEW AS IT IS JUST RE ARRANGEMENT OF FINANCIAL DATA

    II.        HISTORICAL STATEMENT AND NOT APPLICATION FOR FUTURE PROJECTION

   III.        IMPORTANT ITEMS LIKE ISSUE OF SHARES AGAINST THE PURCHASE OF FIXED ASSETS ARE IGNORED.