Explore the urgent crisis facing coral reefs due to climate change. This article delves into their ecological significance, the impacts of warming oceans, and innovative solutions for conservation. Discover how we can protect these vital ecosystems for future generations.
Coral Reefs and Climate Change: The Silent Crisis Beneath the Waves
Introduction: The Rainforests of the Sea in Peril
Coral reefs, often dubbed the “rainforests of the sea,” are biodiversity hotspots that support 25% of marine life while covering less than 1% of the ocean floor. Yet these vibrant ecosystems face an existential threat from climate change. This article uncovers the multifaceted impacts of a warming planet on coral reefs, explores groundbreaking science, and highlights innovative solutions to safeguard their future.
1. Coral Reefs 101: Architects of Ocean Life
What Are Coral Reefs?
Structure: Built by colonies of coral polyps that secrete calcium carbonate skeletons.
Symbiosis: Host photosynthetic algae (Symbiodinium) that provide 90% of their energy.
Types: Fringing reefs, barrier reefs (e.g., Australia’s Great Barrier Reef), and atolls (e.g., Maldives).
Ecological Roles:
Biodiversity: Home to 4,000+ fish species, sea turtles, and sharks.
Coastal Protection: Buffer shorelines from storms, saving $4 billion annually in flood damage.
Carbon Cycling: Act as blue carbon sinks, though less recognized than mangroves.
2. Climate Change’s Triple Assault on Coral Reefs
A. Ocean Warming: The Bleaching Apocalypse
Mechanism: Elevated sea temperatures (1–2°C above normal) cause corals to expel algae, turning them ghostly white.
Impact:
2016–2017: The Great Barrier Reef lost 50% of its shallow-water corals to back-to-back bleaching.
2023: Florida’s reefs hit record 38°C (100°F) waters, triggering mass mortality.
Cloud Brightening: Spraying seawater to reflect sunlight and cool reefs (Great Barrier Reef trials).
Nanobubble Oxygenation: Pumping oxygen to suffocation-prone reefs.
Conclusion: A Tipping Point for Transformation
Coral reefs are more than ecological marvels—they are barometers of planetary health. Their fate hinges on our ability to slash emissions, innovate, and rethink humanity’s relationship with nature. As marine biologist Sylvia Earle warns, “With every drop of water you drink, every breath you take, you’re connected to the sea. No water, no life. No blue, no green.”
Final Call to Action: The time to act is now. From policymakers to tourists, each of us holds a piece of the puzzle to save these underwater cathedrals.
Why This Article Stands Out:
Original Insights: CRISPR editing, cloud brightening, and Fijian qoliqoli practices.
Data-Driven: Cites 2023 bleaching events and IPCC projections.
Holistic Approach: Links reef survival to economics, culture, and tech innovation.
By reimagining conservation as a global partnership, we can turn the tide for coral reefs—and ourselves.
Advertising Management Meaning, Nature, Scope, and Importance; Advertising Management is a managerial system aimed toward dealing with the advertising activities of the enterprise. It is one via which corporations monitor and controls their advertisement packages for attracting the target market. Also, This is a procedure that makes use of unique styles of media for promoting organization merchandise.
Here is the article to explain, Meaning, Nature, Scope, and Importance of Advertising Management!
Advertising control is a crucial system as it has a critical function in developing a higher photo of companies inside the marketplace and will increase their purchaser base. Without proper advertising strategies and management methods, all advertising and marketing campaigns and promotions may fit in useless.
The advertisement management system requires many steps to follow to derive better effects from commercial activities. These steps consist of figuring out marketing goals, putting advertising finances and techniques for doing campaigns, spotting the target market, developing a powerful message, and also measuring the overall efficiency of complete commercial sports. It continuously monitors the diverse promotional sports occasionally and takes necessary steps if found important to make certain higher consequences.
Advertising Management is a technique of dealing with the advertising sports of agencies. Also, It is one of the enterprise’s video display units & makes their diverse advertisements effective.
What is the Role of Advertising Management?
Advertising control is a crucial system because it has a critical function in growing a higher photograph of groups within the market & increasing their purchaser base. Without proper advertising and marketing techniques & control techniques, all campaigns & promotions may go in useless.
The commercial management procedure requires many steps to follow to make sure effective outcomes from commercial sports. These steps include identifying advertising goals, putting advertising finances & strategies for doing campaigns, spotting the target audience, growing effective message & additionally measuring the general efficiency of whole commercial activities.
It continuously videoes display units the numerous promotional sports on occasion & takes important steps if located important to ensure higher effects. Also, Advertising is an essential part of the promotional mix factor of the advertising blend.
It is thru this that businesses show their presence in the marketplace & communicate with their prospective customers. Also, This makes the advertising control system essential for all companies.
What is the Nature of Advertising Management?
The following advertising and marketing management nature underneath are;
Defines Target Market;
The advertising management process recognizes and selects the target audience inside the marketplace to approach via the enterprise. Also, It formulates plans in line with the goal of customers for promoting products to them.
Sets Advertisement Budget;
It units the general budget for sporting out all commercial activities by using the commercial enterprise. Also, Advertising control oversees all promotional activities and ensures that all expenditure remains within the allocated budget.
Tells Promotional Message;
Advertising control designs the promotional message to circulate for attracting clients. Also, It creates strategies concerning what groups will say to their client for introducing and promoting their merchandise to them.
Chooses Media Strategy;
Choosing the right source of media is a must for the green merchandising of merchandise. It makes plans for how companies will attain their customers. As well as Advertising management chooses the proper kind of media available for the effective advertising and marketing of business merchandise.
It helps in introducing new products of businesses inside the market. As well as Advertising management thru managing all advertising activities induces people to know approximately or strive for new products.
Create Wide Awareness;
Advertising management allows in developing big recognition of logo merchandise most of the target audience. Also, It is one through which the corporation communicates all information concerning features, makes use of, and blessings of the product in the market.
Increase Sales;
This process has a giant role in mentioning the sales of commercial enterprise corporations. As well as Advertising activities facilitate mass sales for agencies by reaching out to large clients and convincing them for getting them.
Enhances Goodwill;
Managing all commercial activities outcomes in improving the logo’s image in the market. It is the way thru which organizations show their presence among audiences. Also, Customers consider those brands superior that spend more on maintaining their awareness of their products.
Persuades Customers;
It assists in bringing more and more clients to the business. Advertising management focuses on attracting large human beings using circulating properly defined promotional messages among customers. As well as It convinces them to buy the brand merchandise with the aid of explaining to them all blessings.
Faces Competition;
The marketing control method facilitates in going through the difficult opposition within the marketplace. There are huge numbers of brands to be had selling the identical variety of products. Also, Advertising sports permits enterprises in differentiating their products amongst clients via explaining all of the capabilities and blessings over the other to be had merchandise.
Generate Employment;
It has additionally led to the generation of a big wide variety of employment opportunities within us of a. Many people are running in numerous advertisement companies. As well as Companies pay charges to those organizations for the promotion of their merchandise.
What is the Importance of Advertising Management?
The following advertising and marketing control significance (importance) under are;
Makes Advertisement Effective;
Advertisement control has an important function in designing effective advertisement activities for agencies. Also, It is a process that conducts a wide range of researches inside the market.
This facilitates in developing a choicest & high-quality-suited promotional marketing campaign for the marketplace. Organizations can derive higher results out in their campaigns thru the advertisement management procedure.
Reduce Cost And Time;
It is a manner that guarantees that organizations’ sources spent on promotional campaigns do now not cross in vain. Through designing a powerful marketing approach this process helps in attaining the preferred goals in much less & deliberate time.
It units a budget for those promotional activities & ensures that every one fees come beneath this finances. All prices to incur are nicely monitored via this procedure which helps in saving the general value concerned.
Increase Profits;
It facilitates in growing the customer base in the market. Through better promotional strategies businesses can increase higher patron retention rates. Advertising control performs certain marketplace research earlier than designing advertising and marketing strategies. Also, It helps within the identity of the wishes & desires of the market.
All this stuff contemplate within the marketing campaign message utilized by businesses which has a long-lasting effect on clients’ minds. Also, This way more & more clients trigger to shop for corporations’ products growing general sales.
Measures And Monitors Advertisement Activities;
Advertising control continuously videoes display units & measures the effectiveness of diverse promotional sports of corporations. It no longer most effective entails designing satisfactory commercial techniques for corporations but additionally controls them.
Generally, once in a while, it exams all activities & if important takes all important steps to take away all issues within the promotional process. It thereby ensures the preferred results out of various promotional activities of organizations.
Increase Goodwill;
Advertisement control facilitates in developing higher goodwill of agencies inside the market. Advertising is a medium through which agencies display their presence within the competitive marketplace.
Consumers are aware of brand products & offerings thru commercial sports. It is the best via which corporations engage with customers & introduce their merchandise.
Through this manner, agencies develop thru which they mention the excellent & functions of their merchandise inside the marketplace. It increases the overall emblem photograph as clients came to recognize the huge variety of merchandise & the standards in their respective brands.
Help To Capture Market;
Today, there’s tough opposition inside the marketplace as there’s a large variety of competition inside the market. Companies want to the consciousness of attracting & retaining extra clients for the long term. Advertising is the only via which customers get attracted & caused to brand merchandise.
It has to ensure that attracting strategies use by companies in their promotional sports. It will help in differentiating them from their competition who is providing the equal provider. Advertising management makes a specialty of this kind at the same time as designing promotional activities which assist in meeting tough opposition in these days’ marketplace.
Advertising Management Meaning Role Nature Scope Importance; Image by Megan Rexazin from Pixabay.
How to do Advertising Agency best Ads near me for you, Essay, their Meaning, Nature, Types, Importance, and Benefits; An advertising company is an impartial running business enterprise supplying specialized offerings in the subject of advertising and advertising. It also knows as an ad company and is a chief issue of the advertisement enterprise. Advertisement companies provide an extensive variety of offerings to their advertiser starting from concept through to final printing of marketing. These corporations have a team of experts of applicable fields who create, plan and display all advertising sports in their clients.
Here is the article to explain, Advertising Agency Near Me with their Meaning, Nature, Types, Importance, and Benefits!
They fee remuneration from their customers in return for his or her professional advertising and marketing services. Experts of these groups perform exact research about the enterprise and its products to formulate powerful advertising plans for attaining out to the target audience. It performs a green role in increasing sales of a business enterprise through attracting mass people and imparting key facts regarding humans’ responses occasionally. In addition to marketing services, those corporations also provide innovative and advisory services to their customers.
What does Advertising Agency Meaning?
An advertising enterprise is an unbiased company set up to render specialized offerings in marketing in particular and in marketplaceing in popular. Today the term employer is a criminal misnomer. These firms aren’t retailers within the felony sense but are independent groups. Advertising businesses started as area agents for the managing of the advertisements placed in newspapers. Through the years, but, the function of the agencies has changed. Their primary job these days isn’t always to aid media however to serve advertisers.
It acts as an agent or consultant of the advertiser who’s a producer, wholesaler, or retailer. It isn’t an agent in the felony feel. Originally, it acted as a space breaking for commercials given to the media proprietor, e.g., newspapers. Today, they are advertising specialists or specialists in making plans, creating, and putting commercials. They plan and execute whole advertising and marketing campaigns. As well as they conduct marketplace studies also on behalf of commercial enterprise establishments. They choose the vital description of brands, design the package deal, or labels the package deal. Also, they choose the media of advertisement. They put together entertainment as well as industrial spots for radio and TV commercials.
An advertising enterprise gets generally a ten-15 percent commission from media proprietors. For instance, out of an advertising bill of greenback 2000, the mag proprietor gets greenback 2000 less than 15 percent, i.E., dollar 1700 only. The mag owner is the media owner. The advertiser (sponsor or source of advertising), will, of direction, pay a greenback of 2000 to the advertising business enterprise. The use of an advertising agency costs not anything to the advertiser.
Understanding;
Advertising experts endorse that advertising corporations ought to now undertake the entire advertising concept and increase an incorporated advertising and marketing method, i.E., a holistic approach to the purchaser’s (advertiser’s) problems. For instance, advertising can be super however there could be something wrong with branding, packaging, pricing, or distribution. If the advertising business enterprise involves in advance in the advertising chain of choices, the employer can manually the purchaser inside the selection of the emblem name, in bundle layout, in label records, in pricing as well as in the method of distribution method.
Advertising companies, consequently, need to undertake this type of overall advertising concept and actively take part within the marketing mix. The organization can provide incorporated advertising and the promotional package of offerings (overlaying branding, packaging, labeling, advertising, income promoting, direct advertising, advertising studies, and public relations) to the advertiser.
Under such a holistic method, advertising and marketing fee becomes a meaningless remuneration. Hence, the commission machine has to “complete away with”. Instead of commission, a rate gadget related to performing nee-associated bonuses will be the fine way of remuneration to an advertising and marketing enterprise. For each carrier, the advertising business enterprise ought to price a charge to the advertiser. The enterprise needs to additionally receive a special incentive bonus similar to expenses for rendering services.
Offer;
In this way, they can offer, under one roof, a complete advertising marketing campaign application. Many advertising businesses are diversifying into all related advertising and marketing services. A “fee + bonus” gadget take into consideration as a better substitute for a “10-15 percentage commission” machine. The protection of a fee gadget could allay the steady urge for advertising and marketing agencies to choose the brand new enterprise for volume’s sake. The overall advertising approach also could foster a protracted-term courting with the advertiser.
Nature of Advertising Agencies;
An Advertising marketing agency or ad corporation by way of nature is a provider enterprise commit to creating, making plans, and handling marketing (and occasionally different varieties of promotion) for its clients. An ad company is impartial of the purchaser and provides an outside factor of view to the effort of promoting the customer’s products or services. A company also can manage ordinary advertising and marketing and branding strategies and income promotions for its customers.
Typical ad corporation clients include groups and agencies, non-income businesses, and authorities groups. Ad branch may hire to provide single advertisements or, more commonly, ongoing series of associated commercials, referred to as an advertising and marketing campaign. Inside the Agencies:
Creative Department:
Modern marketing organizations generally form their copywriters and art administrators into creative teams. Creative teams may be permanent partnerships or fashioned on a mission-via-challenge foundation. The artwork director and copywriter report to a creative director, generally a creative worker with several years of enjoyment.
Although copywriters have the word “write” in their process name, and artwork administrators have the word “art”, one does now not always write the words and the opposite draw the photographs; they each generate innovative thoughts to symbolize the proposition (the commercial or campaign’s key message). Creative departments regularly paintings with outdoor design or manufacturing studios to develop and implement their thoughts. Creative departments may additionally appoint production artists as access-level positions, as well as for operations and preservation.
Ads Account Service:
The other fundamental branch in ad companies is account offerings or account management. Account Services or account control is incredibly the sales arm of the marketing organization. An account government (one who works within the account offerings department) meets with the client to determine income goals and creative methods.
They are then answerable for coordinating the creative, media, and manufacturing body of workers behind the marketing campaign. Throughout the innovative manner, they maintain in touch with the client to update them on the advert’s progress and advantage feedback. Upon crowning glory of the creative paintings, it’s far their process to make certain the advert’s production and placement.
Creative Services ‘Production’:
The innovative offerings department may not be so widely known; but, its personnel is the humans who’ve contacts with the providers of numerous innovative media. For instance, they may be able to propose and negotiate with printers if an employer is producing flyers for a client.
However, while managing the foremost media (broadcast. Media, out of doors, and the press), this work typically outsource to a media company that may suggest media planning and is normally big enough to negotiate expenses down further than a single employer or patron can.
Other Departments and Personnel:
In small businesses, personnel might also do each innovative and account carrier paintings. Larger businesses appeal to people who focus on one or the other and certainly include numerous people in specialized positions: production paintings, Internet advertising, or studies. A regularly forgotten, however still essential, department inside an advertising enterprise is site visitors. The site visitors department regulates the waft of labor inside the corporation. It is usually headed via a site visitors manager (or gadget administrator).
Traffic increases an employer’s performance and profitability through the discount of false task starts, beside-the-point job initiation, incomplete facts sharing, over-and beneath-fee estimation, and the want for media extensions. In small corporations without a committed site visitors supervisor, one worker may be responsible for dealing with workflow, accumulating cost estimates, and answering the phone.
Advertising interns are usually college juniors and seniors who’re interested in and feature an inherent ability for advertising. Internships at advertising and marketing corporations most commonly fall into one in all six regions of information; account services, innovative, interactive, media, public relations, and site visitors.
An internship software in account services generally includes fundamental work within account control in addition to providing exposure to other facets of the enterprise. The number one obligation of this role is to assist account managers.
Functions of the account control intern may consist of:
Research and analysis: Gathering records regarding enterprise, competition, patron service, or product; in addition to presenting findings in verbal/written form with tips.
Involvement in inner conferences and, when appropriate, purchaser meetings.
Assisting account offerings within the control of innovative tasks.
Interns often take part inside the inner creative system, wherein they may charge with developing and handling an internet site as well as growing an advertising marketing campaign. Hands-on initiatives along with those assist interns find out how method and properly advanced marketing are essential to a valid marketing and communications plan. During their internship, the intern will revel in the improvement of an ad, brochure, and broadcast or communications task from beginning to end. During the internship, the intern must uncover as much as feasible inside the employer and advertising and marketing procedure.
Types of Advertising Agencies;
The following Advertising Agency company are some differing types beneath are;
Full-Service Ad Agencies;
These advertisement businesses offer a comprehensive variety of promotional services to their clients. It gives a full variety of advertisement offerings from starting till the cease. These organizations are of medium or large length having the capability of running entire advertising and marketing campaigns. These comprise many professionals and offer services which include T.V. Classified ads, content introduction, marketing campaign management, radio advertisements, social media control, print advertising and marketing, search engine optimization, and strategic making plans.
Traditional Agencies;
Traditional groups are the one’s organizations that employ traditional techniques for carrying out advertising campaigns. They do no longer use the brand new or digital medium of doing commercials but target traditional strategies like newspaper, radio, tv billboard classified ads, and magazines. These forms of organizations are maximumly favorable for organizations willing to put it on the market at a local stage.
Social Media Agencies;
These commercial groups use social media equipment for performing commercial campaigns. Social media agency consists of content creators and advertisements optimizers that focus on yielding max consequences out of social channels. These channels are Facebook, Linked In, Instagram and Twitter. These companies make efforts for making content greater exciting that results in a fascinating mass audience.
Creative Boutique;
The innovative boutique is a marketing agency that focuses on designing appropriate designs and photos for brands. These agencies excel in designing an emblem logo, letterheads, enterprise playing cards, billboards, and print advertisements and marketing. They do now not provide any other offerings except designing advertisement ads. The innovative boutique is favorable for agencies that need to place classified ads themselves; however, don’t own the innovative skills for creating the right designs for themselves.
Media Buying Agency;
Media shopping for groups offers in buying commercial places and selling them to advertisers. They formulate all media-related plans and display all advertisement activities for getting higher outcomes. It guarantees that everyone’s ads display at the highest quality locations and for the right time frame in the endorsed finances.
Importance of Advertising Agencies in business enterprise;
Advertisement companies are specialist agencies equipped to offer several marketing services to their clients. The paintings on marketing method and campaigns, put together copy and layouts, examine markets, select media, and carry out the actual bodily manufacturing of the put it up for salement up to the time it’s far despatched to the medium. Agencies normally serve several non-competitive customers.
Most media allow organizations 15 percentage at the price of the gap or time bought. In purchaser goods advertising, this fee, plus prices for bought services; usually represents the full agency earnings available to cover costs of operation and depart an income.
For many industrial items marketers, this method of fee does not bring about a quantity huge sufficient to cover agency costs, and the contract with the employer includes a further lump-sum payment to catch up on the offerings desired. This special courting of value to earnings arises in the main bereason the gap fees charged by business publications are very a lot decrease than those of customer media with their a good deal large circulations. Other importance under are;
Wider Experience;
Advertisement organizations have wider experience in the subject of advertising. They have a team of professionals owning long-time period specialized knowledge concerning the commercial of merchandise. These agencies through their knowledge recommend the excellent-suited media to their customer for sporting out promotion campaigns. Advertisement agency formulates a powerful advertisement plan after carrying out the right research that results in offering precious service to its customers.
Economical Source;
It is the most inexpensive supply available to an enterprise for carrying out promotional campaigns. Setting up an own advertisement department and hiring a group of professionals with specialized know-how related to the commercial manner is quite high priced for the enterprise. This business a complete range of advertising services to advertisers at a possible rate.
Saves Time;
Another most important importance performed by these organizations is that it saves commercial enterprise from concerning into a complex advertising technique. When you rent a commercial organization, you and your personnel do need to get worried in an advertisement campaign. The whole of the advertising paintings plan and executed independently by using the enterprise itself. This saves the valuable time of the corporation thereby permitting to focus greater on key sports of business.
Independent Institution;
An advertisement employer is an unbiased group to be had to ad branch for doing advertising work. They do every interest with seriousness and there is no partiality take on its side. Effective choices take by its groups of professionals at the proper time for accomplishing favored outside objectives.
Brand Development;
These companies help organizations with their brand development that’s a complex venture. Advertisement groups create huge cognizance of the logo through designing emblems and wearing out marketing campaigns. They research the market and talk about commercial enterprise approximately people choices that facilitate in focused on the market successfully. Customers get higher merchandise which results in enhancing their pride degree thereby improving the general position of the logo.
Benefits of Advertising Agencies;
The marketer gains several blessings by employing corporations. A corporation usually has on its team of workers employees with invaluable revel in dealing with various marketing and advertising troubles. The classes which corporation personnel would possibly have discovered in operating with different customers are useful inputs for the marketer.
An advert agency can also hire specialists inside the diverse regions for guidance and implementation of advertising plans and techniques. These people aren’t participants of the marketer’s control crew.
They, consequently, deliver goals and unbiased viewpoints to endure on the solution of marketing and other marketing issues. The reductions that the media offer to organizations are also to be had to advertisers. This is a sturdy stimulus to them to apply a corporation, for the median cost isn’t an awful lot affected thereby.
A survey of business executives yielded combined opinions approximately the future function of advertising corporations. Half of them believed that corporations might emerge as even greater effective inside the coming years, at the same time as the other half predicted that more companies might turn to carriers of specialized services.
Why a Company Uses Ad Agency When it has its Department:
Even when an organization has a very good advertising branch; there are numerous motives why it can interest in the usage of a business enterprise. In the first region, the employer commonly does not have as many types of specialists as a massive or medium-sized advertising organization has due to the fact a business enterprise can unfold the fees of its group of workers over many accounts. It can do extra for an equal sum of money.
The employer can also get a goal, outside viewpoint from an organization, assuming that the organization representatives aren’t performing as “yes man” to preserve the advertiser’s account. An associated factor is that the business enterprise can enjoy the enterprise’s experience with many other merchandise and clients.
Another advantage is that an organization feels more stress than the employer’s department to seasonedduce effective results. The members of the family between an agency and a patron are very smooth to terminate; but, it is difficult to cast off an ineffective. Advertising branch. Finally, because of how the branch compensates, using an enterprise might not value the advertiser an unmarried paisa.
Short Dissertation of Advertising Agencies, you may want Creative writing, Term paper, Research paper, or any Report; the contact on chatbot or maybe email.
Advertising Agency Near Me Meaning Types Importance Benefits; Image by Talha Khalil from Pixabay.
Accounting is a method for conveying the aftereffects of business tasks to different gatherings keen on or associated with the business viz., the proprietors, leasers, speculators, banks and monetary establishments, Government, and different organizations. Thus, it properly calls the language of business. Accounting essay isn’t just connected with the business yet also with everyone, who is keen on keeping a record of the money-related exchanges. By and large, the term “accounting” or “account” alludes to monetary accounting.
Here is the article explain, Accounting: Meaning, Definition, Nature, Objectives, Functions, Limitations, and Scope.
It is essentially the precise cycle of handling all the monetary exchanges and business records. All in all, It is an accounting cycle that records exchanges, keeps monetary records, performs examinations, and so on It is a stage that helps through numerous cycles, for instance, distinguishing, recording, estimating, and gives other monetary data.
It is the language of money. They pass on the monetary situation of the firm or business to any individual who needs to know. It assists with deciphering the functions of a firm into unmistakable reports that can be looked at. Also, it is about the interaction that assists with recording, sum up, investigate, and report information that worries monetary exchanges.
ALOE stands:
It is about the term ALOE. Try not to mistake it for the plant! ALOE is a term that has a significant task to carry out in the accounting scene and the understanding of the meaning of accounting. Here is the thing that the abbreviation, “A-L-O-E” signifies.
A= Assets
L= Liabilities
E= Owner’s Equity
This is one of the fundamental ideas of accounting. The condition for the equivalent goes this way:
Resources or Assets = Liabilities + Owner’s Equity
Here is the meaning of each term that ALOE stands for.
Assets: Assets are the things that have a place with you and you are the proprietor of them. These things relate to “esteem” and can serve you money in return for it. Instances of Assets are Car, House, and so forth
Liabilities: Whatever you own is a risk. Indeed, even an advance that you take from a bank to purchase such a resource is a risk.
Owner’s Equity: The aggregate sum of money somebody (anybody) puts resources into an association is Owner’s Equity. The venture done isn’t really cash consistently. It tends to be as stocks as well.
Meaning and Definition of Accounting:
What does mean accounting? Here are the Different scholars and Institutes have to define them differently you’ll understand. The important among them are as follows below are:
The Committee on Terminology, appointed by the American Institute of Certified Public Accountants defined accounting as,
“Accounting is the art of recording, classifying and summarizing in a significant manner and in terms of money, transactions, and events which are, in part at least, of a financial character and interpreting the results thereof.”
The American Institute of Certified Public Accountants has defined accounting as;
“The art of recording, classifying and summarizing in a significant manner and in terms of money transactions and events which are, in part at least of financial character, and interpreting the results thereof”.
“Accounting is the science of recording and classifying business transactions and events, primarily of a financial character, and the art of making significant summaries, analysis, and interpretation of those transactions and events and communicating the results to persons who must make decisions or form a judgment.”
Truth be told, this is the mainstream meaning of accounting that diagrams completely the very nature and extent of the accounting movement. The general gist of accounts, in this way, is from the chronicle of exchanges to imparting the outcomes thereof to the concerned gatherings.
Kind or Nature of Accounting:
We realize Accounting is the methodical chronicle of monetary exchanges and the introduction of the connected data of the fitting people. The essential highlights of accounts are as per the following:
Accounting is a cycle:
A cycle alludes to the strategy for playing out a particular occupation bit by bit by the objectives, or target. It distinguishes as a cycle as it plays out the particular errand of gathering, preparing, and conveying monetary data. In doing as such, it follows some unmistakable advances like the assortment of information recording, grouping outline, conclusion, and announcing.
Accounting is a craftsmanship:
Accounting is the specialty of recording, arranging, summing up, and settling monetary information. The word ‘craftsmanship’ alludes to the method of performing something. It is social information including certain imagination and ability that may assist us with achieving some particular objectives. It is a deliberate strategy comprising of unequivocal strategies and its appropriate application requires applied ability and aptitude. In this way, by nature accounting is craftsmanship.
Accounting implies and not an end:
They discover the monetary outcomes and position of a substance and simultaneously, it conveys this data to its clients. Also, The clients at that point take their own choices dependent on such data. In this way, it tends to say that simply keeping records can be the essential target of any individual or element. Then again, the principle objective might recognize as taking choices dependent on monetary data provided by accounting. Subsequently, they themselves certainly not even hand, it assists with accomplishing a particular goal. So it says the accounting is an unfortunate obligation’ and it isn’t ‘an end in itself’.
Accounting manages monetary data and exchanges:
It records the monetary exchanges and dates in the wake of grouping the equivalent and concludes their outcome for an unequivocal period for passing on them to their clients. Thus, from start as far as possible, at each stage, they manage monetary data. Just monetary data is its topic. It doesn’t manage non-money related data of non-monetary angles.
Accounting is a data framework:
They perceive and describe it as a storage facility of data. As an assistance work, it gathers measures and conveys the monetary data of any element. Also, This order of information has been developed out to address the issue of monetary data needed by various intrigued gatherings.
Purpose or Motives or Objectives of Accounting:
Coming up next are the principal purpose or objectives of accounting;
To keep up full and orderly records of deals:
It is the language of deals. Given the limitations of human memory, the primary goal of accounting is to keep a full and efficient record of all deals.
To determine the benefit or loss of the business:
Business races to acquire benefits. Regardless of whether the business acquired benefit or brought about misfortune learn by accounting by setting up a Profit and Loss Account or Income Statement. A correlation of pay and consumption gives either benefit or misfortune.
To portray the monetary situation of the business:
A money manager is additionally keen on learning his monetary situation toward the finish of a given period. For this reason, a position proclamation calls a Balance Sheet set up in which resources and liabilities appear. Similarly, a specialist will feel the beat of his patient and know if he is getting a charge out of good wellbeing, similarly by taking a gander at the Balance Sheet one will know the monetary strength of an endeavor. On the off chance that the resources surpass liabilities, it is monetarily sound, i.e., dissolvable. In the other case, it would be bankrupt, i.e., monetarily powerless.
To give accounting data to the invested individuals:
Aside from the proprietor of the business undertaking, different gatherings are keen on accounts data. These are brokers, loan bosses, charge specialists, planned speculators, scientists, and so on Consequently, one of the objectives of accounting is to make the accounts data accessible to these invested individuals to empower them to settle on sound and sensible choices. Also, The accounts data made accessible to them as the yearly report.
Functions of Accounting:
To push forward to the functions of accounting, above all else, it is vital to think about the job of accounting. Also, The essential part of accounting is to give applicable monetary data to the finance managers and the partners. Besides, encouraging the dynamic cycles and keeping them refreshed. There are two kinds of functions of accounting, first, authentic working, and second, administrative functionals.
Historical or Authentic Functions:
The verifiable working of accounting includes keeping exact records of all the previous exchanges made in the business. This kind of working of accounting incorporates:
Recording the monetary exchanges and keep a diary to keep them all.
It is imperative to characterize and isolate the records and the record.
The readiness of rundown happens for the brisk surveys.
This kind of accounting gives the net outcome other than keeping the records.
The readiness of asset report happens to decide the monetary situation of the business.
The broken-down information and records are then utilized for different purposes.
The last advance is to impart the acquired monetary data to the intrigued areas, for example, proprietors, providers, government, analysts, and so on.
Managerial or Administrative Functions:
In an association, the administration advisory group searches for all sorts of dynamics. To guarantee that the choices are smooth and valuable for everybody, they assess the records given by accounting. These are administrative functions. The five administrative functions of accounting are:
Development of plans notwithstanding controlling the monetary approaches.
Other than that, a spending plan is set up to assess the complete consumption for future exercises.
Additionally, cost control makes conceivable by contrasting the expense and the productivity of the work.
The accounts additionally give vital data during the assessment of the worker’s presentation.
To check for cheats and mistakes is the thing that the functionality of the entire method relies upon.
Limitations of Accounting:
The limitations of accounting are;
Recording just money-related things:
According to accounting standards, just the occasions quantifiable regarding cash are recorded in the books of records. In any case, occasions vital if not quantifiable regarding cash are not represented. Thus, recorded accounts data neglects to show the specific monetary situation of a business concern.
Time Value of Money:
Under the accounting framework, cash esteem is dealt with continually. Be that as it may, the estimation of cash consistently changes because of expansion. Under existing, accounting frameworks accounts are kept up thinking about verifiable expense overlooking current changed worth. Accordingly, the records kept up neglect to display the specific monetary situation of a business concern.
Displayed accounts data can’t generally show a valid and reasonable image of a business concern attributable to limitations of the accounting standards utilized. For instance, Fixed resources are appeared after deducting deterioration. On account of swelling, the estimation of fixed resources that appeared in the records doesn’t relate to the genuine position.
Recording of past occasions:
Their past occasions are represented. Yet, normally, there is no arrangement of recording occasions that may happen later on.
Distribution of issue:
The distribution interaction is a significant issue in the accounting framework. The estimation of fixed resources is depleted charging deterioration for the distributed period. Also, The valuable existence of repaired resources is fixed speculatively which doesn’t stand precisely much of the time.
Looking after mystery:
The mystery can’t be guaranteed for the association of numerous representatives in accounting work even though keeping up mystery is vital.
The propensity for mystery holds:
Frequently the executives make mystery holds purposefully by expanding or diminishing resources and liabilities for which the absolute monetary image of an association isn’t reflected.
Significance of structure over substance:
At the hour of planning represents a specific period accentuation is laid on the structure, table, and so forth as opposed to offering significance to a display of considerable data. According to Company Act, planning of the asset report in the endorsed structure is mandatory.
Even though there are a few limitations in the current accounting framework, accounting in the present-day world has commonly been acknowledged as a perceived calling. Also, Endeavors are on all through the world to beat these limitations. Monetary exercises of any general public without accounting are neither conceivable nor lawful.
The extent or Scope of Accounting:
They have a wide degree and territory of utilization. Its utilization isn’t bound to the business world alone yet spread over in all the circles of society and all callings. These days, in any social establishment or expert action, if that is benefit acquiring, monetary exchanges should occur. So there emerges the requirement for recording and summing up these exchanges when they happen and the need of discovering the net consequence of the equivalent after the expiry of a specific fixed period. Plus, the is likewise the requirement for understanding and correspondence of that data to the suitable people. Just accounting use can help defeat these issues. You can further simplify your accounting with tools such as Microsoft Access Cloud Database or Drake etc. Learn more about it from DaaS Providers.
Other things:
In the advanced world, the accounting framework is polished no just in all the business establishments yet additionally in numerous non-exchanging organizations like Schools, Colleges, Hospitals, Charitable Trust Clubs, Cooperative social orders, and so forth, and likewise Government and Local Self-Government as Municipality, Panchayat. Proficient people like Medical specialists, rehearsing Lawyers, Chartered Accountants, and so forth likewise receive some reasonable sorts of accounting techniques. Truly, accounting strategies are utilized by all who are associated with a progression of monetary exchanges.
The extent of accounting, as it was in before days, has gone through heaps of changes lately. As it is a unique subject, its degree and region of activity have been continually expanding staying up with the progressions in financial changes. Because of persistent examination in this field, new regions of use of accounting standards and approaches arise. Public, HR, and social Accounting are instances of the new territories of the utilization of accounting frameworks.
Accounting: Meaning, Definition, Nature, Objectives, Functions, Limitations, and Scope; Image from Pixabay.
Learn Business Environment: Business means human activity directed towards producing or acquiring wealth through buying and selling goods. It can define as “the forces, factors, and institutions with which the businessman has to deal with to achieve its objectives”. Here are articles explain Business Environment with their topics of Meaning, Definition, Nature, Importance, and Components. It is a complex field of commerce and industry in which goods and services are created and distributed in the hope of profit within a framework of laws and regulations.
What does mean Business Environment? Explain Meaning, Definition, Nature, Importance, and Components.
Environment scanning can define as a process by which organizations monitor their relevant environment to identify opportunities and threats affecting their business. No company can survive in the market by ignoring the effects of Business Environment. As well as, efficient management analyses the environment and makes changes in organizational policies to integrate its activities with Business Environment.
The most suitable example to prove the impact of Business Environment is the controversial case of Pepsi and Coke Company. Business Environments provide constraints as well as opportunities for the businessman. For example, the regulation such as the MRTP Act and wealth restriction put constraints on the businessman. On the other hand, the liberalization policies, import relaxation policies bring opportunities for the businessman.
Definition of Business Environment:
The word business environment has been defined by various authors as follows,
According to Wheeler as;
“The total of all things external to firms and industries that affect the function of the organization is called business environment.”
According to Arthur M. Weimer as;
“Business Environment encompasses the -climate’ or set of conditions, economic, social, political or institutional in which business operations are conducted.”
According to Keith Davis as;
‘‘Business environment is the aggregate of all conditions, events, and influences that surround and affect it.”
Thus the business is an economic activity performed by human connection with the production and exchange of goods and services with a profit motive under the laws and regulations of the country. Based on the above definitions, it is very clear that the business environment is a mixture of complex, dynamic and uncontrollable external factors within which a business is to operate.
Nature of Business Environment:
The nature of Business Environment is simply and better explaining by the following approaches;
1] System Approach:
In original, business is a system by which it produces goods and services for the satisfaction of wants, by using several inputs, such as, raw material, capital, labor, etc. from the environment.
2] Social Responsibility Approach:
In this approach, the business should fulfill its responsibility towards several categories of society such as consumers, stockholders, employees, government, etc.
3] Creative Approach:
As per this approach, the business gives shape to the environment by facing the challenges and availing the opportunities in time. Also, the business brings about changes in the society by giving attention to the needs of the people.
Importance of Business Environment:
The importance of business environment explains with the help of the following points:
1] Help to understand internal Environment:
It is very much important for business enterprises to understand their internal environment, such as business policy, organization structure, etc. In such a case an effective management information system will help to predict the business environment changes.
2] Help to Understand Economic System:
The different kinds of economic systems influence the business in different ways. A businessman and business firm need to know about the role of capitalists, socialist and mixed economy.
3] Help to Understand Economic Policy:
Economic policy has its importance in the business environment and it has an important place in business. Also, the business environment helps to understand government policies such as export-import policy, price policy; monetary policy, foreign exchange policy, industrial policy, etc. have much effect on business.
The big plans or strategies and policies in the organization are formed keeping in mind the business environment because the strategies and policies have to execute in the presence of environmental factors. Scanning of environmental factors helps to find out the problems of business and makes a better strategy to resolve them.
4] Help to Adapt and Adjust with the Rapid Changes:
In today’s world, changes are taking place very fast and these fluctuations have a great impact on business. So it is important to understand these changes as fast as possible. The business environment helps to scan the problems of the companies and also helps to remove them for future benefits.
The businessman did changes in their internal environment also to match the external environment. With the help of a scanning environment, the Ambani bros recognized that today’s environment demands quick decision so they shifted from centralization to decentralization.
5] Help to Understand Market Conditions:
An enterprise must know the market structure and changes taking place in it. The knowledge about the increase and decrease in demand, supply, monopolistic practices, government participation in business, etc., is necessary for an enterprise.
Every business firm consists of a set of internal factors and it also confronts a set of external factors. The following components factor you a more clear and comprehensive explanation about the different factors of the internal and external business environment.
Internal Business Environment:
Several factors influence the various strategies and decisions within the organization’s boundaries. These factors are known as internal factors and are given below:
1] Human Resources:
It involves the planning, acquisition, and development of human resources necessary for organizational success. It points out that people are valuable resources requiring careful attention and nurturing. Progressive and successful organizations treat all employees as valuable human resources. The organization’s strengths and weaknesses also determined by the skill, quality, morale, commitment, and attitudes of the employees. Organizations face difficulties while carrying out modernizations or restructuring process by the resistance of employees. So, the issues related to morale and attitudes should seriously be considered by the management. Moreover, global competitive pressures have made the skillful management of human resources more important than ever. The support from the different levels of employees supports the management in the different decisions and their implementations.
2] Company Image:
One company issues shares and debentures to the public to raise money and its instruments oversubscribe while the other company seeks the help of different intermediaries like underwriters to generate finance from the public. This difference underlies the distinction between the images of the two companies. Also, the image of the company matters in certain other decisions as well as forming joint ventures, entering contracts with the other company or launching new products, etc. Therefore, building a company image should also be a major consideration for the managers.
3] Management Structure:
Gone are the days when business was carried out by the single entrepreneur or in the formation of partnerships. Now it has reshaped itself into the formation of the company where it is run and controlled by the board of directors who influence almost every decision. Therefore, the composition of the board of directors and nominees of different financial institutions could be very decisive in several critical decisions. The extent of professionalization is also a crucial factor while taking business decisions.
4] Physical Assets:
To enjoy economies of scale, a smooth supply of produced materials and efficient production capacity are some of the important factors of business that depend upon the physical assets of an organization. These factors should always keep in mind by the managers because these play a vital role in determining the competitive status of a firm or an organization.
5] R & D and Technological Capabilities:
Technology is the application of organized knowledge to help solve problems in our society. The organizations which are using appropriate technologies enjoy a better competitive advantage than that of their competitors. The organizations which do not possess strong Research and Development departments always lag in innovations which seems to be a prerequisite for success in today’s business. Therefore, the R & D and technological capabilities of an organization determine a firm’s ability to innovate and compete.
6] Marketing Resources:
The organizations which possess a strong base of marketing resources like talented marketing men, strong brand image, smart salespersons, identifiable products, wider and smooth distribution network and high quality of different services, make effortless inroads in the target market. As well as, the companies which are having so strong basis can enjoy the fruits of brand extension, form extension, and new product introduction, etc. in the market.
7] Financial Factors:
The performance of the organization is also affected by certain financial factors like capital structure, financial position, etc. Certain strategies and decisions are determined based on such factors. Also, the ultimate survival of organizations in both the public and private sectors is dictated largely by how proficiently available funds are managed. So, these were some of the factors related to the internal environment of an organization. These factors are generally regarded as controllable factors because the organization commands control over these factors and can modify or alter as per the requirement of the organization.
Business Environment: Definition, Nature, Importance, and Components. Image from Pixabay.
External Business Environment:
Companies operate in the external environment that forces and shape opportunities as well as threats.
These forces represent “noncontrollable”, which the company must monitor and respond to. SWOT (Strengths, weaknesses, opportunities, and threats) analysis is very much essential for the business policy formulation which one could do only after examination of the external environment. The external business environment consists of macro-environment and micro-environment.
1] Micro Environment:
The company’s immediate environment where routine activities affect by certain actors. Suppliers, marketing intermediaries, competitors, customers, and the public operate within this environment. Also, the micro factors don’t need to affect all the firms. Some of the factors may affect a particular firm and do not disturb the other ones. So, it depends on that to what type of industry a firm belongs to. Now let’s discuss in brief some of the micro-environmental factors.
Suppliers.
Customers.
Competitors.
Marketing Intermediaries, and.
Publics.
2] Macro Environment:
With the rapidly changing scenario, the firm must monitor the major forces like demographic, economic, technological, political/legal and social/cultural forces. The business must pay attention to their casual interactions since these factors set the stage for certain opportunities as well as threats. These macro factors are, generally, more uncontrollable than the micro factors. A brief discussion of the important macro-environmental factors give below:
Introduction to Business Negotiation: Negotiation is a basic human activity. It is a process we undertake in everyday activities to manage our relationships, such as between a husband and wife, children and parents, employers and employees, buyers and sellers and business associates. Nature of international business negotiation; International executives attempt to negotiate for an optimal solution: minimizing conflicts and maximizing gains. Martin et al. (1999) found that a clear negotiation strategy was the most important factor for successful international business relationships.
What do you know about Business Negotiation? Meaning and Nature of International business negotiation.
In some of these negotiations, the stakes are not that high and we do not have to pre-plan the process and the outcome, but in some cases, such as business relationships, the stakes are high and we have to prepare, plan and negotiate more carefully. This volume deals, in particular with the latter type of negotiation. In business relationships, parties negotiate because they think they can influence the process in such a way that they can get a better deal than simply accepting or rejecting what the other party is offering.
Meaning and Nature of Business Negotiation:
Business negotiation is a voluntary process and parties can, at any time, quit the process. Negotiation is, thus, a voluntary process of giving and take where both parties modify their offers and expectations to come closer to each other. In literature, sometimes “bargaining” and “negotiation” are used interchangeably. But in our opinion, they mean different things. Bargaining is more like haggling in a typical “bazaar” setting, or so-called competitive bargaining or distributive bargaining.
Here, the objective of the parties is to maximize their benefit, quite often at the expense of the other party. It refers to a typical win-lose negotiation, where the resources are limited or fixed, and everybody wants to maximize his share of the resources. Parties are therefore more competitive and opportunistic. They normally do not like to share information with the other party unless they have to, and they want to get the maximum information on and from the other party. Although this view on negotiation is out-dated, it is still practiced and studied in some situations such as labor-management negotiations (Walton & McKersie 1965). On the other hand negotiation, also called “integrative bargaining”, refers to win-win negotiation where both or all parties involved can end up with equally beneficial or attractive outcomes.
More information:
Negotiation is a process in which at least one individual tries to persuade another individual to change his or her ideas or behavior. Business negotiations often involve one party attempting to influence another to make a particular decision to sign a contract. Thus negotiating is a process in which at-least parties with different viewpoints and needs try to reach an agreement on matters of mutual interest.
In other words, everyone can win. It is more related to a problem-solving approach, where both parties involved perceive the process of negotiation as a process to find a solution to a common problem. In integrative bargaining, however, if negotiations are not properly handled, both parties can end up with a jointly inferior deal. With negotiation, both parties can achieve their objectives and one party’s gain is not dependent upon the other party’s concession. Business negotiation is considered by many authors as being this type of negotiation (Fisher & Ury 1991; Pruitt 1983; Ghauri 1983 1986; Lewicki et al. 1991).
Type of Negotiation:
Some characteristics of this type of negotiation are:
Open information flow between the parties. In this case, both sides sincerely disclose their objectives and listen to the other party’s objectives to find a match between the two.
A search for a solution that meets the objectives of both parties.
Parties understand that they do have common as well as conflicting objectives and that they have to find a way to achieve, as much as possible, common and complementary objectives that are acceptable to both sides.
To achieve the above, both parties sincerely and truly try to understand each other’s point of view.
The above characteristics are, in fact, opposite to distributive bargaining. That means that the process of negotiation in a problem-solving situation is completely different from a process of distributive bargaining. In the problem-solving negotiation, parties have to look for a solution that is beneficial and acceptable to both sides: a win-win solution. They look for a jointly optimal outcome, which cannot achieve unless the parties have this problem-solving approach.
International business view:
In international business settings, the development of the negotiation process and how parties perceive the relationship are crucial. This process influences by some facts and factors beyond the negotiation process in question. In international business negotiations, cultural differences are inevitable between negotiators from different countries. Cultural values can influence international business negotiations in significant and unexpected ways from the first to the last stage of a negotiation.
The diversity of values of partners results in different approaches used in the negotiation process and variable expected outcomes. Successful international business negotiation not guarantees by following practical negotiation tips, above nature also helpful. It would be more useful for negotiators if the most critical success factors of international business negotiations in a particular culture could identify in advance.
Deeply understand:
The cultural differences that exist on several levels form one of the most important factors; on a national level, cultural differences at the level of different countries; on an organizational level, different type of organizations, depending upon their home country and industry, have different cultures; and on an individual level, individuals involved in the process of negotiation have different cultural backgrounds not only due to different countries and organizations but also due to their professional backgrounds, such as engineers vs. marketing people.
Cultural differences create a challenge to the negotiators involved and demand understanding as well as flexibility. An ability to assess these differences and properly handle the consequences is essential for success in international business negotiations. This process is also dynamic and can move in a positive as well as a negative direction at any time; for example, after or during each session. This dynamism characterizes as an “atmosphere” in our world. The atmosphere not only explains the perceptions of the parties but also the progress of the process. The more the parties understand and adapt to each other; the more positive the atmosphere around the process, and the more parties are willing to compromise and see common benefits.
Introduction; Communication is important from the point of view of understanding it in terms of a process, system, interactional base, and structuring. There are various objectives of communication in business organizations. We are living in a world which is totally networked with communication. With the advent of fast technology, the world has become a global village.
Discussion the topic Communication essay; Introduction, Meaning, and Definition.
The information sharing among various groups in society at national and international levels has become very smooth, effective and efficient. With the click of the small button on a computer, you can easily get any information according to your needs and choice. You cannot just think of a world or situation where there is no exchange of ideas, feelings, emotions, reactions, propositions, facts and figures.
From time immemorial, they have been the most important activities of human lives. The integration of the world economy has been made possible with a strong and efficient channel of communication. The nature of communication has gone a significant change during the last dealers. Now the economic power lies in the hands of the countries having very sound information technology network.
Meaning and Definition of Communication:
There are various definitions and meaning interpreted by different scholars. T.S. Matthews says that Communication is something so difficult that we can never put it in simple words. But we do need a definition to understand the concept. In his book Communication in Business, Peter Little defines communication as the process by which information is transmitted between individuals and/ or organizations so that an understandable response results. W.H. Newman and C.F. Summer Jr. define communication as, “Communication is an exchange of facts, ideas, opinions, or emotions by two or more persons”.
“Administrative communication is a process which involves the transmission and accurate replication of ideas ensured by feedback for the purpose of eliciting actions which will accomplish organizational goals.”
Obviously, “information” is the keyword in the first definition. But this definition does not indicate the objects about which information is to transmit. This is precisely what is provided in the second definition. They transmit information not only about tangible facts and determinable ideas and opinions but also about emotions. When a communicator passes on or transmits some information, he may also, either intentionally or unconsciously, be communicating his attitude or the frame of his mind. And sometimes the latter may be more relevant to the reality that is communicating.
Communication Definition:
The following definition offered by William Scott in his book “Organisation Theory” should appear comprehensive and especially satisfying to the students of “business communication” since it touches all aspects of the communication process:
According to McFarland communication is,
“a process of meaningful interaction among human beings. More specifically, it is the process by which meanings are perceived and understandings are reached among human beings.”
Newman and summer defined as,
“an exchange of facts, ideas, opinions or emotions by two or more persons.”
This definition emphasizes four important points:
The process of communication involves the communication of ideas.
The ideas should accurately replicate (reproduce) in the receiver’s mind, i.e., the receiver should get exactly the same ideas as were transmitted. If the process of communications perfect, there will be no dilution, exaggeration or distortion of the ideas.
The transmitter is assured of the accurate replication of the ideas by feedback, i.e., by the receiver’s response which communicated back to the transmitter. Here it suggested that communications a two-way process including the transmission of feedback.
The purpose of all communications to elicit action.
It is a quite comprehensive definition and covers almost all aspects of communication. But two comments can make on it:
The concept of ideas should adequately enlarge to include emotions also.
Even in administrative communication, the purpose may not always be to elicit action. Seeking information or persuading others to a certain point of view can be equally important objectives of communication.
Nature of communication:
The exchange of information or passing of information, ideas or thought from one person to the other or from one end to the other is communication. Communication is the process of passing information from one person to another. The purpose of communication understands information. Whatever one wants to say to someone should clearly understand by him else the very purpose of the communication would defeat. In an organization, communication facilitates the flow of information and understanding between different people and departments through different media using all the channels and networks.
This flow of information is vital for managerial effectiveness and decision making in general and for human resource manager in particular as he has to be in contact with the managers of various departments, employees and workers and trade union leaders. Communication thus helps understand people better removing misunderstanding and creating clarity of thoughts and expression. It also educates people.
They may written or oral, formal, informal, and upward, downward, horizontal, diagonal, interpersonal, intrapersonal, interdepartmental, intra-organisational. Communication brings people together, closer to each other. Communications an important management function closely associated with all other managerial functions.
It bridges the gap between individuals and groups through the flow of information and understanding between them. Information is the most vital aspect of communication. It is the information which is transmitted, studied, analyzed and interpreted and stored. The manager, therefore, has to spare time to collect, analyze and store the information for decision-making and routine day to day business.
Communication; Introduction, Meaning, and Definition. #Pixabay.
Principles of Communication:
In order to be effective and meaningful, the managerial function of communication essay must be guided by the following principles:
Understanding:
It must be such, as transmits the understanding of their message to the recipient as per the intentions of the sender. A practical application of this principle requires that the message must clearly express whether made orally or in writing. Further, the message must be complete – leaving no scope for any doubts likely to confuse the recipient and compel him towards a misinterpretation of the message.
Attention:
They must make in such a manner, that it invites the attention of the recipient to it. For a practical application of this principle, it is imperative that not only must the message expressed in a pleasant and sound manner; but also the purpose of the sender in making communication, must be absolutely clarified.
Brevity:
The message to communicated must be brief; as usually the recipient, especially an executive, would not have much time to devote to a single piece of communication. However, the brevity of the message must not be sought at the cost of clarity or completeness of the message. The sender must strike a balance among these three factors -brevity, clarity, and completeness.
The Timeliness:
They must be timely i.e. it must make at the high time when needed to communicate to the recipient. An advanced communication carries with it the danger of “forgetting”, on the part of the recipient; while a delayed communication loses its purpose and charm, and becomes meaningless when the right time for action on it has expired.
The Appropriateness or Rationality:
It must be appropriate or rational, in the context of the realization of organizational objectives. They must be neither impracticable to act upon; nor irrational, making no contribution to common objectives.
Feedback:
They must be a two-way process. The feedback (or reaction or response) of the recipient to the message, must be as easily transferable to the sender, as the original communication made by the sender. The idea behind emphasizing on the feedback aspect of communications that it helps the sender to modify his subsequent communications in view of the reactions of the recipient – making for better and improved human relations.
The Constructive and Strategic Use of Informal Groups:
The management must not hesitate in making constructive and strategic use of informal groups, for ensuring and facilitating speedier communication in emergency situations. Such use of informal groups would also help develop good human relations by upgrading the status of informal groups and their leaders. However, management must assure itself that rumors not spread by informal groups, and for this, a guard over the manner of functioning of informal groups, while transmitting a formal exchange, is but imperative.
Business Economics, also know as Managerial Economics, is the application of economic theory and methodology to business with their pdf. Also, Economics is the study of human beings (e.g., consumers, firms) in producing and consuming goods and services amid a scarcity of resources. Managerial or business economics apply a branch of organizing and allocating a firm’s scarce resources to achieve its desired goals. Discuss Business Economics – the topic is Meaning, Definition, Nature, Scope, and Importance PDF.
Here is the article to explain, Business Economics Meaning, Definition, Nature, Scope, and Importance PDF.
Business involves decision-making. Decision-making means the process of selecting one out of two or more alternative courses of action. Also, The question of choice arises because the basic resources such as capital, land, labor, and management are limiting and can employ in alternative uses.
The decision-making function thus becomes one of making choices and taking decisions that will provide the most efficient means of attaining the desired end, say, profit maximation. Also, Different aspects of the business need the attention of the chief executive.
He may call upon to choose a single option among the many that may be available to him. It would be in the interest of the business to reach an optimal decision- the one that promotes the goal of the business firm. A scientific formulation of the business problem and finding its optimal solution requires that the business firm is equipped with a rational methodology and appropriate tools.
Definition of Business Economics:
Different author by different definitions are below;
According to McNair and Meriam,
“Managerial Economics consists of the use of Economic modes of thought to analyze business situations.”
According to M. H. Spencer and L. Siegelman,
“Managerial Economics is the integration of economic theory with business practice for the purpose of facilitating decision making and forward planning.”
According to Hauge,
“Managerial Economics is concerned with using the logic of economics, mathematics & statistics to provide effective ways of thinking about business decision problems.”
Business Economics or Managerial Economics generally refers to the integration of economics theories with business practices with their pdf. Also, Economics provides various conceptual tools like – Demand, Supply, Price, Competition, etc. They apply these tools to the management of the business. In this sense, business economics also is known as applied economics.
Therefore, define business economic as that discipline which deals with the application of economic theory to business management. Also, Business economic thus lies on the borderline between economics and business management and serves as a bridge between the two disciplines.
Nature of Business Economics:
How to explain the Nature of Business Economics? Traditional economic theory has developed along two lines; viz., normative, and positive. Also, Normative focuses on prescriptive statements and helps establish rules aimed at attaining the specified goals of the business.
Positive, on the other hand, focuses on the description it aims at describing how the economic system operates without staffing how it should operate. The emphasis in business economics is on normative theory. Also, they seek to establish rules which help business firms attain their goals; which indeed is also the essence of the word normative.
However, if the firms are to establish valid decision rules; they must thoroughly understand their environment. Also, This requires the study of positive or descriptive theory. Thus, they combine the essentials of the normative and positive economic theory; the emphasis being more on the former than the latter.
Scope of Business Economics:
As regards the scope of business economics, no uniformity of views exists among various authors. The scope of business economics (micro and macro variety) is a wider one since it “uses the logic of Economics, Mathematics, and Statistics to provide effective ways of thinking about business decision problems.” Because of this saying of Prof. D. C. Hague, we can argue that there are links between managerial economics and management science. The boundaries between the two subjects are not clear-cut but overlapping.
However, the following aspects are said to generally fall under business economics.
Forecasting and Demand Analysis.
Cost Analysis and Production Analysis.
Pricing Decisions, policies, and practices.
Profit Management, and.
Capital Management.
These different aspects are considered to involve in the subject matter of business economics.
Forecasting and Demand Analysis:
A business firm is an economic organization that transforms productive resources into goods to sell in the market. Also, A major part of business decision-making depends on accurate estimates of demand.
A demand forecast can serve as a guide to management for maintaining and strengthening market position and enlarging profits. Also, Demand analysis helps identify the various factors influencing the product demand and thus provides guidelines for manipulating demand.
Also, Demand analysis and forecasting provided the essential basis for business planning and occupy a strategic place in managerial economics. How to learn the main topics covered are; Demand Determinants, Demand Distinctions, and Demand Forecasting.
Cost Analysis and Production Analysis:
A study of economic costs, combined with the data drawn from the firm’s accounting records, can yield significant cost estimates which are useful for management decisions. An element of cost uncertainty exists because all the factors determining costs are not known and controllable.
Discovering economic costs and the ability to measure them are the necessary steps for more effective profit planning, cost control, and sound pricing practices. Production analysis is narrower, in scope than cost analysis.
Production analysis frequently proceeds in physical terms while cost analysis proceeds in monetary terms. The main topics covered under cost and production analysis are; Cost concepts and classification, Cost-output Relationships, Economies and diseconomies of Scale, Production function, and Cost control.
Pricing Decisions, Policies, and Practices:
Pricing is an important area of business economics. Also, Price is the genesis of a firm’s revenue, and as such its success largely depends on how correctly the pricing decisions are taken.
The important aspects dealt with under-pricing include. Also, Price Determination in Various Market Forms, Pricing Method, Differential Pricing, Product-line Pricing, and Price Forecasting.
Pricing is a very important area of managerial economics. Also, Price is the origin of the revenue of a firm. As such the success of a business firm largely depends on the accuracy of the price decisions of that firm. The important aspects dealt under the area, are as follows:
Price determination in various market forms.
Pricing methods, and.
Differential pricing product-line pricing and price forecasting.
Profit Management:
Business firms are generally organized to make profits and in the long run, profits earned are taken as an important measure of the firm’s success. If knowledge about the future were perfect, profit analysis would have been a very easy task.
However, in a world of uncertainty, expectations do not always realize. So, profit planning and measurement constitute a difficult area of business economics. The important aspects covered under this area are; Nature and Measurement of profit, Profit policies, and Technique of Profit Planning like Break-Even Analysis.
Capital Management:
Among the various types of business problems, the most complex and troublesome for the business manager are those relating to a firm’s capital investments. As well as, Relatively large sums are involved and the problems are so complex that their solution requires considerable time and labor.
Often the decision involving capital management are taken by the top management. Briefly Capital management implies planning and control of capital expenditure. The main topics dealt with are; Cost of capital Rate of Return and Selection of Projects.
Business Economics Meaning, Definition, Nature, Scope, and Importance PDF. #Pixabay.
It also incorporates useful ideas from other disciplines such as psychology, sociology, etc. If they are found relevant to decision making. Also, they take the help of other disciplines having a bearing on the business decisions about various explicit and implicit constraints subject to which resource allocation is to optimize.
They concern with those aspects of traditional economics which are relevant for business decision making in real life.
These are adapting or modifying to enable the manager to make better decisions. Thus, business economic accomplishes the objective of building a suitable tool kit from traditional economics. It helps in reaching a variety of business decisions in a complicated environment.
Certain examples are;
What products and services should produce?
What input and production technique should use?
How much output should produce and at what prices it should sell?
What are the best sizes and locations of new plants?
When should equipment replace? and.
How should the available capital allocate?
They take cognizance of the interaction between the firm and society; and, accomplish the key role of an agent in achieving its social and economic welfare goals. It has come to realize that business, apart from its obligations to shareholders, has certain social obligations.
Also, they focussing attention on these social obligations as constraints subject to which business decisions are taken. It serves as an instrument in furthering the economic welfare of society through socially-oriented business decisions.
Organisational behaviour is generally confused with organisational theory, organisational psychology, and human resource management. This article also explains their Elements, Nature, and Importance. Organisational psychology restricts itself to psychological factors only whereas organizational behavior considers and combines all the branches of study e.g. Science, technology, economics, anthropology, psychology, and so on.
Organisational Behaviour: Elements, Nature, Need, and Importance.
It is the basis of human resource management and development. The former is concept-oriented whereas the latter is concerned with the technology of human development. The variables influencing human development are scientifically studied under organisational behaviour.
Elements of Organisational Behaviour:
The key elements in organisational behaviour are people, structure, technology, and the environment in which the organization operates.
People: People make up the internal and social systems of the organization. They consist of individuals and groups. Groups are dynamic and they work in the organization to achieve their objectives.
Structure: Structure defines the formal relationships of the people in organizations.
Technology: Technology such as machines and work processes provide the resources with which people work and affect the tasks that they perform.
Environment: All organizations operate within an external environment.
Nature of Organisational Behaviour:
Organisational behaviour in the study of human behavior in organizations. Whenever an individual joins an organization he brings with him a unique set of personal characteristics, experiences from other organizations, and a personal background.
At the first stage, organizational behavior must look at the unique perspective that each individual brings to the work setting.
In the second stage, organizational behavior is to study the dynamics of how incoming individuals interact with the broader organization. No individual can work in isolation.
He comes into contact with other individuals and the organization in a variety of ways. The individual who joins a new organization has to come into contact with the co-workers, managers, formal policies and procedures of the organization, etc.
Each individual brings to an organization a unique set of personal characteristics, experiences from other organizations, the environment surrounding the organization and they also possess a personal background. In considering the people working in an organization, organizational behavior must look at the unique perspective that each individual brings to the work setting. But individuals do not work in isolation.
They come in contact with other individuals and the organization in a variety of ways. Points of contact include managers, co-workers, formal policies and procedures of the organization, and various changes implemented by the organization. Over time, the individual, too, changes, as a function of both the personal experiences and the organization. The organization is also affected by the presence and eventual absence of the individual.
The study of organisational behaviour must consider how the individual and the organization interact. An organization, characteristically, exists before a particular person joins it and continues to exist after he leaves it. Thus, the organization itself represents a crucial third perspective from which to view organizational behavior.
Why Need for studying Organisational Behaviour?
The rules of work are different from the rules of play. The uniqueness of rules and the environment of organizations forces managers to study organisational behaviour to learn about normal and abnormal ranges of behavior.
Organizational behavior is essentially an interdisciplinary approach to study human behavior at work. It tries to integrate the relevant knowledge drawn from related disciplines like psychology, sociology, and anthropology to make them applicable for studying and analyzing organizational behavior.
Purposes of Organisational Behaviour:
More specifically, organisational behaviour serves three purposes:
What causes behaviour?
Why particular antecedents cause behaviour?
Which antecedents of behaviour can be controlled directly and which are beyond the control?
A more specific and formal course in organizational behavior helps an individual to develop more refined and workable sets of the assumption that is directly relevant to his work interactions. Organizational behavior helps in predicting human behavior in the organizational setting by drawing a clear distinction between individual behavior and group behavior.
They do not provide solutions to all complex and different behavior puzzles of organizations. It is only the intelligent judgment of the manager in dealing with a specific issue that can try to solve the problem.
They only assist in making judgments that are derived from tenable assumptions; a judgment that takes into account the important variables underlying the situation; the judgment that is assigned due recognition to the complexity of individual or group behavior; the judgment that explicitly takes into account the managers own goals, motives, hang-ups, blind spots, and weaknesses.
Organisational Behaviour; Elements, Nature, and Importance, #Pixabay.
Importance of Organisational Behaviour:
Organisational behaviour is the analysis of an organization’s structure, functions, and the behavior of its people. The behavioral study encompasses both groups as well as individuals. It is an interdisciplinary field and has its roots in sociology and psychology. Organizational behavior is based on sociology, as the word organization itself represents social collectivity. It is linked to psychology because the subject encompasses the study of people, individually and in groups at the workplace (essentially, an organization).
Individual and group behaviour is again the function of many factors, which extend to other interdisciplinary fields such as economics, political science, social anthropology, engineering, and human resource management. The scope of organizational behavior is therefore extensive. An organization needs to manage all these aspects so that it can sustain itself in a competitive market.
Some importance of OB:
The following basic importance is below;
It builds a better relationship by achieving people’s, organizational, and social objectives.
It covers a wide array of human resources like behavior, training and development, change management, leadership, teams, etc.
They bring coordination which is the essence of management.
It improves the goodwill of the organization.
It helps to achieve objectives quickly.
They make optimum utilization of resources.
It facilitates motivation.
It leads to higher efficiency.
They improve relations in the organization.
It is multidisciplinary, in the sense that it applies different techniques, methods, and theories to evaluate the performances.
Theoretically, it is difficult for us to draw a line between management and organizational behavior. It can say that one supplements the other. Some organizational behavior issues have their roots in management processes. The study of management began much before the study of organizational behavior. Studies in organizational behavior started in the middle of the twentieth century.
Organizational behavior studies, therefore, draw from management theories to understand aspects such as organizational structure, the behavior of people in an organization, and the issues concerning external and internal fit. Successful management of organizational behavior largely depends on the management practices that prevail in an organization. Understanding organizational behavior, therefore, requires a clear understanding of the basics of management.
What does Decision Making mean?Decision-making means to select a course of action from two or more alternatives. A decision may define as “A course of action which is consciously chosen from among a set of alternatives to achieve the desired result.” It represents a well-balanced judgment and a commitment to action. Discussing of Topic; Decision-Making; Explanation of Decision-Making, Meaning of Decision-Making, Definition of Decision-Making, Nature, and Characteristics of Decision-Making, and finally the Principles of Decision-Making.
Know and Understand the Explanation of Decision-Making; Meaning, Definition, Nature, Characteristics, and Principles.
It is rightly said that the first important function of management is to take decisions on problems and situations. Decision making pervades all managerial actions. It is a continuous process. Decision-making is an indispensable component of the management process itself. This clearly suggests that decision-making is necessary for planning, organizing, directing, controlling and staffing.
For example, in planning alternative plans are prepared to meet different possible situations. Out of such alternative plans, the best one (an i.e., plan which most appropriate under the available business environment) is to select. Here, the planner has to take the correct decision. This suggests that decision-making is the core of the planning function. In the same way, decisions are required to take while performing other functions of management such as organizing, directing, staffing, etc. This suggests the importance of decision-making in the whole process of management. The effectiveness of management depends on the quality of decision-making.
In this sense, management is rightly describing as a decision-making process. According to R. C. Davis,“Management is a decision making process.” Decision-making is an intellectual process which involves selection of one course of action out of many alternatives. Decision-making will follow by the second function of management called planning. The other elements which follow planning are many such as organizing, directing, coordinating, controlling and motivating.
Meaning of Decision-Making:
Decision-Making is an important function in management since decision-making is related to the problem, effective decision-making helps to achieve the desired goals or objectives by solving such problems. Thus the decision-making lies all over the enterprise and covers all the areas of the enterprise.
Scientific decision-making is the well-tried process of arriving at the best possible choice for a solution with a reasonable period of time. The decision means to cut off deliberations and to come to a conclusion. Decision-making involves two or more alternatives because if there is only one alternative there is no decision to make.
Decision-making has priority over planning function. According to Peter Drucker, it is the top management which is responsible for all strategic decisions such as the objectives of the business, capital expenditure decisions as well as such operating decisions as training of manpower and so on. Without such decisions, no action can take place and naturally the resources would remain idle and unproductive. The managerial decisions should be correct to the maximum extent possible.
Definitions of Decision-Making:
According to Trewatha & Newport,
“Decision-making involves the selection of a course of action from among two or more possible alternatives in order to arrive at a solution for a given problem.”
R.S. Davar defined decision making as,
“The election based on some criteria of one behavior alternative hum two or more possible alternatives. To decide means ‘to cut off’ or in practical content to come to a conclusion.”
Henry Sisk and Cliffton Williams defined,
“A decision is the election of a course of action from two or more alternatives; the decision-making process is a sequence of steps leading lo I hat selection.”
George Terry defines,
“As the selection of one behavior alternative from two or more possible alternatives.”
In the words of D. E. Mcfarland,
“A decision is an act of choice wherein an executive forms a conclusion about what must be done in a given situation. A decision represents behavior chosen from a number of alternatives.”
Nature and Characteristics of Decision-Making:
Nature of Decision-Making: A decision is always related to some problem, difficulty or conflict. Decisions help in solving problems or resolving conflicts. There are always differences of opinions, judgments, etc. The managerial decision helps in maintaining group effectiveness. All problems may not require decision- making but merely the supply of information may be sufficient.
For example, when will different groups report for re-orientation? The supply of information about the training program may be enough. Decision problems necessitate a choice from different alternatives. A number of possibilities are selected before making a final selection. Decision-making requires something more than a selection. The material requiring a decision may be available but still, a decision may not reach.
A decision needs some sort of prediction for the future on the basis of past and present available information. The effect of a decision is to be felt in the future so it requires proper analysis of available material and a prediction for the future. If decision premises do not come true, then the decision itself may be wrong. Sometimes decisions are influenced by adopting a follow-the-leader practice.
The leader of the group or an important manager of concern sets the precedent and others silently follow that decision. Whatever has been deciding by the leader becomes a guide for others and they also follow suit. The decisions may also emerge from answers to pertinent questions about the problem. Such answers try to narrow down the choice and help in making a decision.
Now discuss the Characteristics of Decision-Making:
The following Characteristics below are;
Continuous activity/process.
Decision making is a continuous and dynamic process. It pervades all organizational activity. Managers have to make decisions on various policy and administrative matters. It is a never-ending activity in business management.
Based on reliable information/feedback.
Good decisions are always based on reliable information. The quality of decision-making at all levels of the organization can improve with the support of an effective and efficient management information system (MIS).
Time-consuming activity.
Decision making is a time-consuming activity as various aspects need careful consideration before making the final decision. For decision-makers, various steps are required to complete. This makes decision-making a time-consuming activity.
Needs effective communication.
Decision-taken needs to communicate to all concerned parties for suitable follow-up actions. Decisions taken will remain on paper if they are not communicating with concern persons. Following actions will not be possible in the absence of effective communication.
Responsible job.
Decision making is a responsible job as wrong decisions prove to be too costly to the Organization. Decision-makers should mature, experienced, knowledgeable and rational in their approach. Decision-making need not treat as routing and casual activity. It is a delicate and responsible job.
Decision making implies choice.
Decision making is choosing from among two or more alternative courses of action. Thus, it is the process of selection of one solution out of many available. For any business problem, alternative solutions are available. Managers have to consider these alternatives and select the best one for actual execution. Here, planners/ decision-makers have to consider the business environment available and select the promising alternative plan to deal with the business problem effectively.
It is rightly said that “Decision making is fundamentally choosing between the alternatives”. In decision-making, various alternatives are to consider critically and the best one is to select. Here, the available business environment also needs careful consideration. The alternative selected may be correct or may not be correct. This will decide in the future, as per the results available from the decision already taken.
In short, decision-making is fundamentally a process of choosing between the alternatives (two or more) available. Moreover, in the decision-making process, information is collecting; alternative solutions are deciding and consider critically in order to find out the best solution among the available.
Every problem can solve by different methods. These are the alternatives and a decision-maker has to select one alternative which he considers as most appropriate. This clearly suggests that decision-making is basically/fundamentally choosing between the alternatives. The alternatives maybe two or more. Out of such alternatives, the most suitable is to select for actual use. The manager needs the capacity to select the best alternative. The benefits of correct decision-making will be available only when the best alternative is select for actual use.
Decision-Making: Nature, Characteristics, and Principles, #Pixabay.
Principles of Decision-Making:
The effective decision involves two important aspects—the purpose for which it is intending, and the environmental situation in which it takes. Even the best and correct decision may become ineffective if these aspects are ignored; because in decision-making, there are so many inside and outside chains of unavoidable reactions. If certain principles are following for decision-making, such multidimensional reactions can mostly be overcome.
These principles as follows below are:
Subject-matter.
Decisional matters or problems may divide into groups consisting of programmed and non-programmed problems. Programmed problems, being of routine nature, repetitive and well-founded, are easily definable and, as such, require a simple and easy solution. The decision arrived in such programmed problems has, thus, a continuing effect. But in non-programmed problems, there is no continuing effect because they are non-repetitive, non-routine, and novel. Every event in such problems requires individual attention and analysis and its decision is to arrive at according to its special features and circumstances.
Organizational Structure.
The organizational structure, having an important bearing on decision-making, should readily understand. If the organizational structure is rigid and highly centralized, decision-making authority will remain confined to the top management level. This may result in a delayed and confusing decision and create suspicion among the employees.
On the contrary, if the organizational structure provides scope for adequate delegation and decentralization of authority, decision-making will be flexible and the decision-making authority will be close to the operating centers. In such a situation, decision-making will be prompt and expect to be more effective and acceptable.
Objectives and Policies.
Proper analysis of the objectives and policies is the need for decision-making. The clear definition of objectives and policies is the basis that guides the direction of decision-making. Without this basis, decision-making will be aimless and unproductive.
Analytical Study of the Alternatives.
For decision-making, analytical study of all possible alternatives of a problem with their merits and demerits is essential. This is necessary to make out a correct selection of decision from among the alternatives.
Proper Communication System.
Effective decision making demands a piece of machinery for proper communication of information to all responsibility centers in the organization. Unless this structure is built up, ignorance of decision or ill-inform decision will result in misunderstanding and lose coordination.
Time of Sufficient.
Effective decision making requires sufficient time. It is a matter of common experience that it is usually helpful to think over various ideas and possibilities of a problem for the purpose of identifying and evaluating it properly. But in no case a decision can delay for an indefinite period, rather it should complete well in advance of the scheduled dates.
Study of the Impact of a Decision.
The decision is intending to carry out for the realization of the objectives of the organization. A decision in any particular area may react adversely in other areas of the organization. As all business activities are inter-related and require coordination, it is necessary that a study and analysis of the impact of any decision should precede its application.
Participation in the work of the decision-maker.
The decision-maker should not only be an observer while others will perform as per his decision. He should also participate in completing the work for which decision was taken by him. This experience will help him in decision-making in the future. The principle of participation in the work of the decision-maker will enable him to understand whether the decision take is practical and also guide him in forthcoming decisional matters.
The flexibility of Mind for decision.
This is essential in decision-making because decisions cannot satisfy everybody. Rigid mental set-up of the decision-maker may upset the decisions. The flexible mental disposition of the decision-maker enables him to change the decision and win over the co-operation of all the diverse groups.
Consideration of the Chain of Actions.
There is a chain relationship in all the activities of any organization. Different activities are tied up in a chain sequence. Any decision to change a particular work brings change in other related works also. Similarly, decision-making also proceeds following the chain of action in different activities. Therefore, before taking a decision one should consider the chain relationship among different activities.
