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Principle of minimum handling the layout is one that reduces the material handling

Principle of safety, security and satisfaction the layout is one that gives due consideration to workers safety and satisfaction and safeguards the plant and machinery against fire, theft, etc.

Principle of maximum flexibility Principle of maximum flexibility is one that can be altered without much cost and time .The future requirements should be taken into account while designing the present layout of the plant.

Principle of flow It is one that makes the materials to move in forward direction towards the completion stage. This means there should not be any backtracking.

Principle of cubic space utilisation It is one that utilise both horizontal and vertical space. It is not only enough if only the floor space is utilised optimally but the third dimension, i.e., the height is also to be utilised effectively

Principle of minimum distance Principle of minimum distance is concerned with the minimum movement of man and materials. The facilities should be arranged such a way that, the total distance travelled by the men and materials should be minimum. As far as possible straight line movement should be preferred.

Principle of integration The layout is one that integrates men, materials, machines and supporting services and others in order to get the optimum utilisation of resources and maximum effectiveness at least cost.

OBJECTIVES OF LAY OUT It is to arrange production facilities economically. The objectives of plant layout are given below: 1. Streamline the flow of materials through the plant. 2. Facilitate the manufacturing process. 3. Minimise materials handling cost. 4. Effective utilisation of men, equipment and space. 5. Flexibility of manufacturing operations and arrangements. 6. Provide for employee convenience, safety and comfort. 7. Minimize investment in equipment

PLANT/FACTORY LAY OUT It refers to the physical arrangement of production facilities. It is the configuration of departments, work centres and equipment in the conversion process. It is a floor plan of the physical facilities. There are several factors which affect the choice of factory layout.

Supporting industries and services It is another consideration which affects the choice of location. Manufacturing organisation will not make all the components and parts by itself .Sometimes it subcontracts the work to vendors to manufacture. So,the source of supply of component parts will be the one of the factors that influences the location. The presence of healthy relationship among different firms is also a pre-requisite for industries to develop. The various services like communications, banking services, professional consultancy services will play a vital role in selection of a location.

Climatic conditions There area needs to be considered together with climatic conditions. Climates greatly influence human efficiency and behaviour and reflect the same in the labour productivity. Some industries require specific climatic conditions e.g., textile mill requireshumidity. Therefore such special climatic factors have to be carefully examined in the choice of project site.

Availability of Capital Fixed capital is required for the construction of building and acquisition of land. But on the other hand buildings can also be rented and existing plants can be expanded. The availability of such factors is also affecting the decision on site selection.A careful study on financial strength and weaknesses of the proposed project should be undertaken.

External economies of scale It is major factor in deciding the project location. Tax incentives, facility of industrial estates, special economic zone are some of the factors to be considered at the time of taking location decision. Location economies of scale in the manufacturing sector have evolved over time and have mainly increased competition due to production facilities and lower production costs as a result of lower transportation and logistical costs.

Labour and wages The adequate number of skilled and unskilled work force is a major factor to be considered at the time site selection. Recruiting labour is usually costly and involves administrative problems. Productivity of labour is also an important factor to be considered. Prevailing wage pattern, quality of human resources in terms of education, cost of living, industrial relation and bargaining power of the unions’ form important considerations.

Availability of infrastructure facilities Availability of infrastructure facilities like power, water and waste disposal etc., are the important factors in deciding the location facility. Certain types of industries use more amount of power and such company’s should be located close to the power station. The non-availability of power may become a survival problem for such industries. Process industries like paper, chemical, cement etc. require continuous supply of water in large amount. Availability of waste disposal facility for process industries is an important factor in modern times.

Transportation facilities Transport facilities ensure timely supply of raw materials to the production centres. The transport facility is a prerequisite forthe location of the plant. There are different modes of transportation such as, air, road, rail, water and pipeline. Goods that are mainly intended for exports demand, a location near to the port is useful and economical. The factors influencing the choice locational facility include costs, convenience, and suitability

Supply of raw material Supply of raw material is essential for the organization to get right type of raw materialsat the right time in order to have a continuous production. This factor becomes very important if the materials are perishable and cost of transportation is very high. Nearness to raw material is important in case of industries such as sugar, cement, jute and cotton textiles.The following things are to be considered in this case: • When a single raw material is used without loss of weight, locate the plant at the rawmaterial source or at the market place. • When weight loosing raw material is required, locate the plant at the raw material source itself. • When raw material is universally available, locate close to the market area.

Proximity to markets Each company is expected to serve its customers by providing goods and services at the reasonable price and time.Organizations may choose to locate facilities near to the market. When the buyers are concentrated, it is advisable to locate the facilities close to the market. Nearness to the market ensures a consistent supply of goods to customers and it reduces the cost of transportation. Locating nearer to the market is preferred if: • The products are subject to spoilage. • After sales services are promptly required very often

FACILITY OR PLANT LOCATION It is the systematic process of determining a geographic site for a firm’s operations. Managers of both service and manufacturing organizations should consider the desirability of a particular site, including proximity to customers and suppliers, labour costs, and transportation costs. Location conditions are difficult to measure. Tangible cost based factors such as wages and products costs can be quantified easily. On the other hand nontangible features, which refer to such characteristics as reliability, availability and security, cannot be measured exactly in quantitative forms.

Project process It is one in which there is a very high degree of customization and the job is undertaken to meet specific requirements. Each project is unique. Project process is valued more on the basis of their capabilities to do certain kinds of jobs, rather than to produce specific products at low cost. They tend to take a long time to complete the work. It involves several inter related tasks that must be completed. Resources needed for a project are brought together at the beginning of the project and are disbanded once the project is over.

Limitations of Batch Production There  are the limitations of Batch Production: 1. Material handling is complex because of irregular and longer flows. 2. Production planning and control are complex. 3. Higher set up costs due to frequent changes in set up. 

Advantages of Batch production There are the advantages of Batch Production: 1. Better utilisation of plant and machinery facilities. 2. It promotes functional specialisation. 3. Cost per unit is lower as compared to job order production. 4. Lower investment in plant and machinery is required.

Characteristics of batch production Batch Production characteristics are as follows 1. Shorter production runs. 2. Products are manufactured in small batches. 3. Plant and machinery set up is used for the production of item in a batch and change of set up is required for processing the next batch. 4. Manufacturing lead-time and cost are lower as compared to job order production.

Batch Production As per batch production method, items are processed in lots or batches and a new batch is undertaken for production only when the production on all items of a bath is complete. In fact, batch type of production system can be considered as an extension of job type system.

Limitations There are the limitations of Job Production system: 1. Higher cost due to frequent set up changes. 2.It results in higher level of inventory at all levels and also higher inventory cost. 3. Production planning is complicated. 4. Larger space requirement is needed.

Advantages of job production Advantages of job production are as follows: 1. It tries to satisfy the unique requirements of customers. 2. Employees will become more skilled, as each job gives them learning opportunities to develop. 3. Full potential of employees can be utilised. 4. Opportunity exists for employees to do creative works.

Features of job production there are the features of job production system: 1. More variety of products is manufactured as per customer’srequirements. 2. Volume of production is low. 3. Highly skilled employees are required to do the work. 4. Detailed planning is essential for sequencing the requirements of each product. 5.Employees should be able to take each job as a challenge.

Job Production The products are manufactured as per the specifications of the customers within pre-determined time and cost. The main feature of this method is low volume and high variety of products compared to mass production. Under this method, each job demands unique production activities.

Limitations of process production limitations of process Production are as follows 1. Flexibility to accommodate and process number of products does not exist. 2. Very high investment for setting flow lines.

Advantages of process production Advantages of process Production are as follows 1. Standardisation of product and process sequence. 2. Higher rate of production with reduced cycle time. 3. Higher capacity utilisation due to line balancing. 4. Manpower is not required for material handling as it is completely automatic. 5. Person with limited skills can be used on the production line. 6. Unit cost is lower due to high volume of production.

Process Productions There are arranged as per the sequence of production operations from the first operations to the finished product. It involves continuous physical flow of material from one stage to another stage. The process usually operates round the clock to maximise utilisation and to avoid expensive shutdowns and start-ups. Characteristics of process production Process Production is characterised by: 1. Material handling is fully automated. 2. Process follows a predetermined sequence of operations. 3. It is used for bulk manufacturing. 4. Planning and scheduling is a routine action.

Limitation of mass production limitations of Mass Production are as follows 1. Breakdown of one machine will stop entire production line. 2. Line layout needs major change with the changes in the product design. 3. High investment in production facilities is required.

Dhyan mantra om maṅgalaṁ bhagavāna śambhu maṅgalaṁ jatī gorakṣa |  maṅjalaṁ matsyendra śiṣya maṅgalāya sarva rakṣakaḥ ||

Mass Production A few types of products are manufactured in large quantities. The volumes are high and products are standardised which allows resources to be organised around particular products. Mass Production is characterised by the following features: 1. Standard products are manufactured. 2. Standardised inputs and standardised operations are used for manufacturing. 3. Large volume of products. 4. Shorter cycle time of production. 5. Less supervision is required. 6. Perfectly balanced production lines. 7. Flow of materials, components and parts are continuous 8. Production planning and control are easy.

PROCESS SELECTION A process is a way to convert raw materials in to finished products. Process selection is a strategic decision as it involves allocation of men, material and School of Distance Education Operations Management financial resources. Production engineering provides expert advices for process selection. Process selection involves the decisions with regard to work station and the choice of work flow. Work station selection involves the choice of machines to be included in the manufacturing process. Work flow analysis concerns with the flow of work between these stations. The following are the factors affecting the choice of process of manufacture: 1. Product features 2. Requirements of customers 3. Availability of capital 4. Availability of technologies 5. Legal factors 6. Availability of employees

PRODUCT DESIGN It is the major challenge of any organisation. Design gives the blueprint idea about the product. Design starts with concept utilisation of ideas. Providing value to the customer, the return on investment and the competitiveness of the organisation should form the basis of the product design effort. A product design has an impact on what materials and components would be used, which suppliers will be selected, what machines or what type of processes will be utilised, where it will be stored, how it will be transported etc. A product design reflects a company’s overall strategy. Therefore, it should be undertaken carefully.

Robotics The usage of Robotics applications and versatility has increased dramatically. In manufacturing applications, robots can be used for assembly work, process such as painting, welding, etc. and for material handling. More recently robots are equipped with sensory feedback through vision and tactile sense.

Automated Handling Equipment Automated handling equipment produce automated guide vehicles, storage and retrieval equipment and product sortation equipment. The level of automation varies depending on the handling requirements. Fully automated handling systems ensure that the materials are delivered to the production line when required without significant manual intervention.

Storage Equipment It is used to store materials, components and assemblies. The level of complexity of this type of equipment is wide ranging, from a welded cantilever steel rack to hold lengths of stock materials to a powered vertical carousel system.

Lifting Equipment Lifting and transport equipment is used to move product around the production facility, from loading bay to storage, from storage to production, around production, from production to storage, and from storage to loading bay. Equipment that falls into this category is fork lift trucks, order picking trucks etc.

Material handling equipment It is an important activity in the operations system. The speed of the material flow across the supply chain depends on the type of the material handling equipment is used. In the logistics operation the material handling system is designed in and around the warehouse. The various operation activities like the unloading of incoming material from transport equipment, moving the unloaded material to the assigned storage place, lift the material from its storage place during order picking, move the material for inspection and packing, and load the packages on to the transport vehicle. These operations are performed using manual, mechanized controlled material handling equipment’s. The following are some of the material handling equipments commonly used

Interaction of operation management with other areas Company function can be broadly divided in to 1. Finance 2. Operation 3. Marketing Operation as a function of management has relationships with marketing, finance, engineering and other functional areas. Finance department is concerned with securing adequate financial resources for the organisation and its proper utilisation. Allocation of the financial resources throughout the organisation is the major function of finance department including operations department. Marketing department is responsible for identification of needs and wants of the prospective customers and developing a suitable marketing plan. Inshort, operation is a key activity in an organisation, which is linked with marketing and financial activities. For the successful functioning of the organisation, co-operative actions of all section of the organisation are needed. All functional departments have to work together. Here, operational management ...

MANUFACTURING AND NON –MANUFACTURING OPERATIONS The organisations can be divided in to: 1. Manufacturing organisations 2. Non-manufacturing organisations The following are the differences between manufacturing organisations and nonmanufacturing organisations: 1. Manufacturing organisation produces the goods that are tangible in nature. On the other hand service organisations render service to the customers instead of tangible products. 2. The products of manufacturing units can be stored in physical form. But the products of non-manufacturing organisation cannot be stored. 3. In manufacturing organisation, mostof the customers have no direct contact with the operations.On the other hand, in the caseservice organisations the customers are present during the creation of the service.

MAINTENANCE MANAGEMENT Equipment and machinery are very important parts of the total production system. Therefore, their efficient usage is very mandatory. It is very important to see that the organisation maintains plant and machinery properly. The main objectives of Maintenance Management are given below: 1. To reduce breakdown of machineries 2. To keep the machines and other facilities in a good condition. 3. To ensure the availability of the machines, buildings and services required by other sections of the factory also. 4. To keep the plant in good working condition.

MATERIALS MANAGEMENT It is that aspect of operation management function, which is concerned with the acquisition, control, and use of materials needed and flow of goods and services connected with the production process. The main objectives of Material Management are given below:

Follow-up It is the process of reporting daily progress of work in each shop in a prescribed proforma and to investigate the causes of deviations from the planned performance and to take necessary actions.

Dispatching It is concerned with the starting the processes. It gives authority so as to start a particular work, which has been already been planned under Routing and Scheduling. Therefore, dispatching is the release of orders and instruction for the starting of production.

Scheduling It determines the time programme for the operations. Scheduling may be defined as the fixation of time and date for each operation as well as it determines the sequence of operations to be followed.

Routing It is the process of selection of path, which each part of the product will follow. Routing determines the most advantageous path to be followed for department to department and machine to machine till raw material gets its final shape.

Planning It is deciding in advance what to do, how to do it, when to do it and who is to do it. Planning bridges the gap from where we are and to where we want to go. It makes it possible for things to occur which would not otherwise happen.

Production Planning and Control It can be defined as the process of planning the production in advance, setting the exact route of each item, fixing the starting and finishing dates for each item, to give production orders to shops and to follow-up the progress of products according to orders. The principle of production planning and control lies in the statement ‘First Plan Your Work and then Work on Your Plan’. Main functions of production planning and control include Planning, Routing, Scheduling, Dispatching and Follow-up.

Process design It is another functional area of operation management. It deals with how the process required to produce a product is selected. These decisions encompass the selection of a process, choice of technology, process flow analysis and layout of the facilities. The major consideration in process design is to analyse the workflow for converting raw materials into final products.

Product design It deals with conversion of ideas into reality. Every business organisation has to design, develop and introduce new products as a commercial strategy. Developing the new products and launching them in the market are the biggest problems faced by the organizations. The entire process of need identification to physical manufactures of product involves three functions— Design, Product Development, and manufacturing. Operation management has the responsibility of selecting the processes by which the product can be produced.

Material Handling It refers to the moving of materials from the store room to the machine and from one machine to the next machine during the production process. It is the art and science of moving, packing and storing of products in any form. Material cost can be reduced by judicious selection of materials and its proper storage. Material handling devices increases the output, improves quality, speeds up the deliveries and decreases the cost of production. Hence, material handling should be a prime task in the designing of new projects.

Plant layout and material handling It refers to the physical arrangement of facilities. It is the configuration of departments, work centres and equipment’s in the inputs conversion process. The objective of the plant layout is to design a physical arrangement that meets the required output quality and quantity most economically. According to James More ‘Plant layout is a plan of an optimum arrangement of facilities including personnel, operating equipment, storage space, material handling equipment and all other supporting services along with the design of best structure to contain all these facilities’.

Location facilities Proposed factory building is an important consideration in operation management. It is an important strategic level decision-making for an organisation. It deals with the questions such as ‘where our main operations should be based?’ The selection of location is a key-decision because large amount of investment is required in building plant and machinery. An improper location of plant may lead to waste of all the investments made in plant and machinery. Hence, location of plant should be based on the company’s future plan about expansion, diversification, nature of sources of raw materials and many other factors. The very purpose of the location study is to identify the optimal location facility that will results in the greatest advantage to the organization.

Scope of operations management Operations Management is concerned with the conversion of inputs into outputs using physical resources so as to provide the desired utilities to the customers. It involves a number of well planned activities. Following are the activities that come under Production and Operations Management functions: 1. Location of facilities. 2. Plant layouts and Material Handling. 3. Product Design. 4. Process Design. 5. Production and Planning Control. 6. Quality Control. 7. Materials Management. 8. Maintenance Management

Productivity The main objective of combining resources is to transform the inputs into goods and services having a higher value than the original inputs. The effectiveness of the production factors in the transformation process is known as productivity.

Systems These are the arrangement of components designed to achieve objectives. The business systems are subsystem of large social systems. Business system contains subsystem such as personnel, engineering, finance and operations. The ability of any system to achieve its objective depends on its design and control mechanism. System design is a predetermined arrangement of components. It establishes the relationships between inputs, transformation activities and outputs in order to achieve the system objectives. System control consists of all actions necessary to ensure that activities conform to preconceived plans.

Resources There are in the forms of the human, material and capital inputs.Human resources are the key resources of an organisation. By using the intellectual capabilities of people, managers can multiply the value of their employees. Material resources are the physical inputs, which are needed for production.

Inspection Inspection refers to the verification of and confirmation towards the requirements of an entity.

Storage Storage refers to preserving goods in a protected environment.

Transportation Transportation refers to physical movement of goods from one location to another.

Alteration alteration refers to the transformation of the state of input. This transformation can be a physical change in the input to produce goods.

Objectives of production management The objectives of the production management are given below: 1. Right Quality: Quality is the important factor, which should be considered at the time of manufacturing process. All efforts should be taken to ensure the quality of the manufactured goods. 2. Right Quantity: The manufacturing organisation should produce the goods in right number. If they are produced in excess of demand the capital will block up in the form of inventory. If the quantity is produced in short of demand, it leads to shortage of products. 3. Timeliness: Timeliness of delivery is one of the important factors to judge the effectiveness of production department. The production department has to make the optimal utilization of resources to achieve its objectives. 4. Low Manufacturing Cost: Manufacturing costs are determined before the product is actually produced. Hence, all attempts should be taken to produce the products at pre-established cost so as to reduce the vari...

Production Concept Production is the step-by-step conversion of one form of material into another form through continuous process to create the utility of the product to the user. Production is a value addition process. Edwood Buffa defines production as ‘a process by which goods and services are created’. Production function is concerned with the transformation of a range of inputs into the required outputs .For example, manufacturing of standardized products like, car, motor cycle, radio, television, soaps, etc.

Operation management It is a part of management sciences. Operation Management is concerned with the production of quality goods and services and ensures that the business operations are performed smoothly, efficiently, effectively. It is a field of management that deals with effective planning, scheduling, use and control of a manufacturing or service organisation. Operations management is the business function that plans organises, coordinates, and controls, the resource needed to produce a company’s goods and services. Operations Management is the process whereby resources, flowing within a defined system, are combined and transformed by a controlled manner to add value in accordance with policies communicated by management.

Production Management It is a process of planning, organising, directing and controlling the activities of the production function. It combines and transforms various resources used in the production subsystem of the organization into value added products. Production management deals with decision-making related to production processes so that the resulting goods or services are produced according to specifications, in the amount and by the schedule demanded and out of minimum cost.

DEBENTURES DEFINITION When borrowed capital is divided into equal parts, then, each part is called as a debenture. Debenture represents debt. For such debts, company pays interest at regular intervals. It represents borrowed capital and a debenture holder is the creditor of the company. Debenture holder provides loan to the company and he has nothing to do with the management of the company.

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Ganeshji Mantra “Vakra-Tunndda Maha-Kaaya Surya-Kotti Samaprabha Nirvighnam Kuru Me Deva Sarva-Kaaryeshu Sarvadaa” Meaning…………………………  “O one with a majestic trunk, a massive form and the radiance of a million suns, I pray to you to remove the obstacles from all my endeavors, always.”

Baglamukhi Mantra.................................... Om Hleem Bagalaamukhi Sarvadushtaanaam Vaacham Mukham Padam Stambhay Jihvaam Keelay Buddhim Vinaashaay Hring Om Swaha ? For more details...................... you can contact ................... rv.109@rediffmail.com, amt.2016@rediffmail.com

Equity Shares definition: The Shares which enjoy dividend and right to participate in the management of Joint Stock Company are called equity shares, or, ordinary shares. They are the owners and real risk bearers of the company. Equity shares can be defined as per as our Indian Companies Act (1956) as, “Shares which are not preference shares are equity shares, or, ordinary shares”. Equity shareholders are the real owners of the company and, therefore, they are eligible to share the profits of the company. The share given to equity shareholders in profits is called “Dividend”. At the time of winding of company, the capital is paid back last to them after all other claims have been paid in full. Advantages of Equity Shares: a) The company has no immediate liability to pay it. b) No fixed dividend obligation. c) Increases creditworthiness of business, ceteris paribus. d) No charge created on assets of the business. e) Shareholders control the company. f) Limited liability of the i...

Rights Issue advantages 1. Rights Issue advantages ensures that the control of the company is preserved in the hands of the existing shareholders. 2. The expenses to be incurred, otherwise if shares are offered to the public, are avoided 3. There is more certainty of the shares being sold to the existing shareholders. 4. It betters the image of the company and stimulates enthusiastic response from shareholders and the investment market. 5. It ensures that the directors do not misuse the opportunity of issuing new shares to their relatives and friends at lower prices on the one hand and on the other get more controlling rights in the company.

Rights Issue of Finance: It is an invitation to the existing shareholders to subscribe for further shares to be issued by a firm. A right simply means an option to buy certain securities at a certain privileged price within a certain specified period. The Company Act, 1956 lays down the manner in which further issue of shares, whether equity or preference, is to be made so as to ensure equitable distribution of shares without disturbing the established equilibrium of shareholding in the company. According to Section 81 of the Companies Act, whenever a public limited company proposes to increase its subscribed capital by the allotment of further shares, after the expiry of two years from the formation of the company or the expiry of one year from the first allotment of shares in the company, whichever is earlier, the following conditions or procedure must be followed: 1. Such shares must be offered to holders of equity shares in proportion, as nearly as circumstances admit, ...

Functions of Financial Management A Manager has to concentrate on the following areas of the finance function. 1. Estimating Financial Requirements: The first task of the financial manager is to estimate short term and long-term financial requirement of his business. For this purpose, he will prepare a financial plan for present as well as future. The amount required for purchasing fixed assets as well as the needs of funds for working capital has to be Financial management Financing decision Investment Decision Dividend Decision Risk and Return Relationship To achieve the goal of Profit Maximization ascertained. The estimation should be based on the sound financial principles so that neither there are inadequate or excess funds with the concern. The inadequacy will affect the working of the concern and excess funds may tempt a management to indulge in extravagant spending. 2. Deciding Capital Structure: The capital structure refers to the kind and proportion of the diff...

Financial Management Meaning It refers to that part of the management activity, which is concerned with the planning, & controlling of financial resources. It deals with finding out various sources for raising funds for the firm. Financial management is practiced by many corporate firms and can be called Corporation finance or Business Finance.

INTRODUCTION TO FINANCIAL MANAGEMENT It is defined as the provision of money at the time when it is required. Every enterprise, whether big, medium, small, needs finance to carry on its operations and to achieve its target. In fact, finance is so indispensable today that it is rightly said to be the blood of an enterprise. Without adequate finance, no enterprise can possibly accomplish its objectives.

Best Methods of Raising Finance 1. Public Issue of Shares: The Company can raise a substantial amount of fixed capital by issue of shares- equity and preference. In India , however, equity shares are more popular as compared to preference shares. The issue of shares requires a number of formalities to be completed such as approval of prospectus by S.E.B.I., appointment of underwriters, bankers, and registrars to the issue, filing of the prospectus with the registrar of companies, and so on. 2. Rights Issue of Shares: A Right issue is issue of shares to the existing shareholders of the company through a Letter of Offer made in first instance to the existing shareholders on pro data basis. The shareholders have a choice to forfeit this right partially or fully. The company, then issue this additional capital to public. This is an inexpensive method as underwriting commission, brokerage are very small. Rights issue prevents dilution of control but it may conflict with th...

Wealth maximization criticism 1. The objective is not descriptive of what the firm actually does. 2. Wealth maximization objective is not necessarily socially desirable. 3. There is some controversy as to whether the objective is to maximize the stockholder’s wealth or the wealth of the firm, which includes other financial claim holder’s such as debenture holders, preference shareholders.

Wealth maximization Implications: 1. Wealth maximization concept is universally accepted, because it takes care of interest of financial institution, owners, employees and society at large. 2. Wealth maximization guides the management in framing the consistent strong dividend policy to reach maximum returns to the equity holders. 3. Wealth maximization objective not only serves the interest of the shareholder’s by increasing the value of their holdings but also ensures the security to the lenders.

Stock holder current wealth in the firm........................... Stockholder’s current wealth in the firm = (No. Of shares owned) * (Current stock price per share)

Financial Management Objective The objective of a business is to maximize the owner’s economic welfare. Financial management provides a framework for selecting a proper course of action and deciding a commercial strategy. The objectives can be achieved by: (i) Profit maximization (ii) Wealth maximization Profit Maximization: It is the main aim of every economic activity. A business being an economic institution must earn profit to cover its cists and provide funds for growth. No business ca survives without earning profit. Profit is a measure of efficiency of a business enterprise. Profit also serves as a protection against risks which cannot be ensured. Arguments in favor of Profit Maximization 1. When profit earning is the aim of the business then the profit maximization should be the obvious objective. 2. Profitability is the barometer for measuring the efficiency and economic prosperity of a business enterprise, thus profit maximization is justified on the...

Idiom.................... Your call Example............ If it is your call means, it's up to you what decision you will take

Idioms..................................... Zero tolerance Policy Example................................. Some Group does work at zero tolerance policy beco'z no mistakes will be accepted

Idiom................ Zero hour Meaning.................. The time when any important thing is to begin is zero hour

Grammar Grammer take over: assume control They will take over at the beginning of June. talk over: discuss Let us talk it over before we decide. tear up: destroy by tearing She tore up the letter. think over: consider I need some time to think it over. think up: invent What will they think up next? track down: search for and find We finally tracked him down at the bookstore. trade in: give as part payment Why don't you trade in your old vacuum cleaner for a new one? try on: test clothes by putting them on I tried on the new suit, but it didn't fit me. try out: test by using Would you like to try out my fountain pen? turn away: refuse admission The event was so popular that many people had to be turned away. turn back: reverse direction Every fall the clocks must be turned back by one hour. turn off: deactivate by using a switch I turned off the radio. turn on: activate by using a switch Please turn on the light. water down: dilute The soup has been watered down. wear out: gr...

Preposition the preposition "in" introduces a prepositional phrase "in his office," which acts as an adverb describing the location of the missing papers. Conjunction You can use a conjunction to link words, phrases, and clauses, as in the following example: I ate the pizza and the pasta. Call the movers when you are ready. Coordinating Conjunctions You use a coordinating conjunction ("and," "but," "or," "nor," "for," "so," or "yet") to join individual words, phrases, and independent clauses. Note that you can also use the conjunctions "but" and "for" as prepositions. In the following sentences, each of the highlighted words is a coordinating conjunction: Lilacs and violets are usually purple. In this example, the coordinating conjunction "and" links two nouns. This movie is particularly interesting to feminist film theorists, for the screenplay was written by Mae ...

Nouns A noun is the word that refers to a person, thing or abstract idea. A noun can tell you who or what. There are several different types of noun:- There are common nouns such as dog, car, chair etc. Nouns that refer to things which can be counted (can be singular or plural) are countable nouns. Nouns that refer to some groups of countable nouns, substances, feelings and types of activity (can only be singular) are uncountable nouns. Nouns that refer to a group of people or things are collective nouns. Nouns that refer to people, organizations or places are proper nouns, only proper nouns are capitalized. Nouns that are made up of two or more words are called compound nouns Nouns that are formed from a verb by adding - ing are called Gerund

Preposition It links nouns, pronouns and phrases to other words in a sentence. The word or phrase that the preposition introduces is called the object of the preposition. A preposition usually indicates the temporal, spatial or logical relationship of its object to the rest of the sentence as in the following examples: The book is on the table. The book is beneath the table. The book is leaning against the table. The book is beside the table. She held the book over the table. She read the book during class. In each of the preceding sentences, a preposition locates the noun "book" in space or in time. A prepositional phrase is made up of the preposition, its object and any associated adjectives or adverbs. A prepositional phrase can function as a noun, an adjective, or an adverb. The most common prepositions are "about," "above," "across," "after," "against," "along," "among," "around," "at...

Proverb.................. A cuckoo in the nest Meaning........................ Someone in a group of people but not liked by them.

Total Lunar Eclipse in New Delhi Lunar Eclipse Starts (With Moonrise) - 17:58:00 Lunar Eclipse Ends - 20:41:10 Moonrise - 17:58:00 Local Eclipse Duration - 02 Hours 43 Mins 10 Secs First Contact with the Penumbra - 16:21:15 First Contact with the Umbra - 17:18:27 Total Phase Begins - 18:21:47 Maximum of Lunar Eclipse - 18:59:50 Total Phase Ends - 19:37:51 Last Contact with the Umbra - 20:41:10 Last Contact with the Penumbra - 21:38:26 Duration of Total Phase - 01 Hour 16 Mins 04 Secs Duration of Partial Phase - 03 Hours 22 Mins 43 Secs Duration of Penumbral Phase - 05 Hours 17 Mins 11 Secs Magnitude of Lunar Eclipse - 1.32 Magnitude of Penumbral Lunar Eclipse - 2.29

Labour turnover Labour turnover is  the ratio of the number of employees that leave a company through attrition, dismissal, resignation during a period to the number of employees on payroll during the same period.

Strategy of organisation Strategy  is plan of action or a series of action that need to undertake in order to achieve the organizational objectives. It is all about integrating the organizational activities & utilizing the available resources of the organization within the organizational setting to achieve the organizational goals.

Machiavellianism Machiavellianism  is one of the personality traits of the individual, named after Niceolo Machiavelli. People who have high ‘MACH’ score are very pragmatic, maintain emotional distance, manipulate the things, and persuade others, they can only flourish if they have face to face interaction.

Locus of control Locus of control  means whether people believe that they are in control of the events or events control them. Those who have internal locus of control believe that they can control the events according to their wishes but people who have external locus control believe that the events occur by chance they do not have any control over them. These people are very much prone to depression & anxiety.

Feedback Feedback  is the process in which the information about the past or present influences the same phenomenon in the present or future.

Leadership Leadership  is defined as a process of social influence in which one person can enlist the aid & support of others in the accomplishment of a common task.

Performance Appraisal Performance Appraisal  means evaluating employee’s current or past performance relative to his/her performance standards. It is a process through which companies ensure that employees are working towards organizational goals.

Ethical Behaviour advantages in Organizations  1. Ethical organization helps in retaining high quality employees. 2. It helps in attracting & retaining good customers to the organization. 3. It helps in developing competitive advantage to the organization. 4. It helps in gaining higher value to the customer 5. It helps in minimising the strict supervision mechanism in the organization 6. It helps in facilitating good & rational decision making for the organization.

Reasons in unethical behavior: 1. Pressure to to be successful: This is one of the prime reasons for an individual to think &    act unethically. An individual always have a pressure to succeed, to meet the targets, deadlines & the expectations. Besides these an individual always have pressure from colleagues, boss, or even customers. 2. Dilemma situation: Some people have unethical intentions just because they do not know what is right & what is wrong. And obviously the ethical concerns are at times complicated in nature. 3. Self-interest: One of the common reasons, behind the unethical behaviour or intention is the self-interest of an individual. The greed, personal gain, wish ed  to achieve more in a quick & easy way are some of the reasons for which the individuals practice the unethical behaviour.

Power and Politics Ethics Power and Politics Ethics can be defined as the moral concerns that an individual basically follows while having any sort of decisions. This kind of aspects basically helps in governing the behaviour of any of the individual. Ethics basically depicts the moral correctness. And in terms of the organization, ethics can be defined as the systematic thinking of the consequences of any of the decision on the basis of morality. It can be inferred that if the decision of the organization has the potential to harm any of the stakeholders be it the internal one or external, then we can say that the moral consequences of the decision are not up to the mark.

Power sources can be divided into two types Formal Power : Organizations have formal hierarchy that depicts certain level of relationships of employees with each other at different levels in the hierarchy. Formal power depends on the position one individual holds in that organizational chart. The organizational chart basically shows the line of authority and responsibilities. Formal power is derived from either one’s ability to coerce or reward others. Formal power may be categorized into three types, which are as follows: Coercive power : The source of this power is fear. It is derived from the ability to influence others through threats or punishments. This form of power has majorly contributed towards the negative connotation of power. In an organizational framework, managers use coercive power in a way to directly or indirectly threaten the people who work for them, in case they are not working in accordance with the norms. Mindtools.com...

Power Concept “Nearly all men can stand adversity. If you want to test a man’s character, give him power.”                                                                               -Abraham Lincoln “Power is the potential ability to influence behavior, to change the course of events, to overcome resistance and to get people to do things that they would not otherwise do.”                                      ...