Tag: Between

  • Difference between the Financial and Management Accounting

    Difference between the Financial and Management Accounting

    Financial Accounting and Management Accounting are two interrelated facets of the accounting system. A common question asked around, What is the primary difference between the Financial and Management Accounting? Financial accounting provides the basic structure for collecting data. The data collection structure is suitably modifying or adjusts for accumulating information for management accounting purposes. They are not exclusive of each other; they are supplementary.

    What is the Difference between Financial and Management Accounting? Discussion.

    In a broader sense, management accounting includes financial accounting.  They differ in their emphasis and approaches.

    Difference between Financial and Management Accounting - Table
    Difference between Financial and Management Accounting – Table

    Basic Difference:

    They are as follows;

    1. Financial serves the interest of external users (i.e. investors etc.) while management caters to the needs of internal users (i.e. management).
    2. Financial accounts govern by the generally accepted accounting principles while management accounts no set principles.
    3. The Financial presents historical information while management represents predetermined as well as past information.
    4. Financial accounts statutory while management accounts optional.
    5. Financial accounting presents annual reports while management accounting reports are of both shorter and longer durations.
    6. The Financial reports cover the entire organization while management reports are prepared for the organization as well as its segments.
    7. The financial account emphasizes the accuracy of facts while the management account requires prompt and timely reporting of facts even if they are less precise.

    This article will explain to you the difference between financial accounting and management accounting.

    Focus:

    Financial accounting emphasized the external use of accounting data. Management accounting, on the other hand, utilizes accounting data for internal uses. The major objective of financial accounting is to prepare a balance sheet and profit and loss account to inform shareholders and others about the firm’s profitability and the state of its resources and obligations.  The purpose for which management accounting collects and reports relevant information is to make decisions to ensure optimum use of the firm’s resources.

    Principle: 

    The accounting profession has developed certain principles for preparing and presenting financial reports for external uses.  Financial accounting adheres to these generally accepted accounting principles. This introduces consistency and meaningfulness of data from the investors’ point of view. They can make inter-firm comparisons of performance and analyze performance trends over the years when some set of generally accepted principles are followed by all firms.

    Management accounting, in contrast, is not based on any set of accepted rules or principles. Every enterprise, depending on its requirements for facts, evolves its procedures and principles for preparing reports for internal uses.  The information should be relevant and aid management in making decisions.

    Information:

    Financial accounting accumulates and reports historical information to investors. Financial accounting reports tell what has happened in the past.  Through balance sheet and profit and loss account, to the investors is revealed how the resources entrusted by them to the firm have been utilized.  Management accounting being a decision-making process focuses on the future.  It analyses past data and adjusts them in the light of future expectations to make plans.

    Need:

    Financial accounting is an outcome of the statute.  For example, in India, it requires under the Companies Act, 1956 to prepare the balance sheet and profit and loss account for submission to shareholders and others.  The financial statements are generally required to prepare in the formats prescribed by the law.

    Management accounting is the result of the management’s need for information for making decisions.  It is, therefore, optional.  Management accounting functions would differ from firm to firm. A firm may have a sophisticated, elaborate, and comprehensive system while another may have a partial system only.

    Timing:

    Financial accounting adopts twelve months (one Year) period for reporting financial performance to shareholders and other investors.  In contrast, management accounting reports are for shorter durations.  Some companies in India prepare daily budgets.  Monthly and quarterly reports are quite common.  Management accounting information also collects for preparing long-term plans for five or more years.  Capital expenditure plans, for example, cover a longer duration.

    Coverage:

    While reporting the state of affairs of a company, financial accounting covers the entire organization.  Financial statements show revenues, expenses, assets, and equities of the firm as a whole.  For management accounting purposes, however, the organization is divided into smaller units or centers.  These centers may head by responsible persons.  Cost data and other information are collecting and reporting by these centers. Thus, the data requirements of management accounting are more specific.

    Reporting:

    Financial statements-balance sheet and profit and loss account – are subject to the verification of statutory audit.  Therefore, financial accounting stresses the accuracy and precision of accounting data.  Management accounting requires information promptly for decision-making.  The continuous and speedy flow of approximate information is more useful than the precise but delayed information.

    The above points of difference between Financial Accounting and Management Accounting (Hindi Medium) prove that Management Accounting is a flexible approach as compared to the rigid approach in the case of Financial Accounting. In brief, financial accounting simply shows how the business has moved in the past while management accounting shows how the business has to move in the future.

    Difference between Financial and Management Accounting
    Difference between Financial and Management Accounting.
  • Discuss the Compare of Coordination and Cooperation

    Discuss the Compare of Coordination and Cooperation

    Before Discuss the Compare of Co-Ordination and Co-Operation, first looking at their definition of Coordination and Cooperation. Coordination refers to the organization of all the activities in an orderly manner, to achieve unanimity of individual efforts in the pursuit of group goals. On the flip side, cooperation is a discretionary action of individuals to work together or help one another, for a mutual benefit. It is a joint effort of the members working in the organization for accomplishing a defined target. Also Learned, Essay on the Co-ordination of an Organization, Discuss the Compare of Coordination and Cooperation.

    Here are Learn, Discuss the Compare of Coordination and Cooperation.

    Definition of Coordination:

    By coordination, we mean a cycle, utilized by the administration to synchronize different exercises in the association. The power connects the wide range of various capacities performed by the administration, for example arranging, coordinating, putting together, controlling, staffing, driving, and so forth association, to make the most ideal utilization of the association’s assets.

    Coordination assumes a critical function in keeping up routineness in tasks, for example, buy, creation, deals, human asset, showcasing, account, and so forward, as it is the consistent idea that associates all the exercises. It is something, which is natural in all administrative capacities. The cycle focuses on the efficient administration of individual or collective endeavors to guarantee unanimity in real life, in the achievement of normal destinations.

    Definition of Cooperation:

    We characterize cooperation as an optional action in which at least two people consolidate and work in the quest for shared objectives. In this cycle, the individuals from the association put forth joined attempts, for inferring common advantages. Along these lines, each member is required to effectively partake in the gathering movement, really at that time they can be in an ideal situation.

    Cooperation is available in all the degrees of the association and happens between the individuals from the association. Aside from business, cooperation likewise happens at the public and worldwide level, for example between various states and nations of the world.

    Through cooperation, the data can share among members effectively, which builds the information base, work performed, and assets, in a skilled way.

    Differences between Coordination and Cooperation:

    Basis Coordination Cooperation
    Meaning It is an orderly arrangement of group efforts in pursuit of common goals. It means mutual help willingly.
    Scope It is broader than co-operation which includes as well because it harmonizes the group efforts. It is termed as a part of coordination.
    Process The function of coordination is performed by top management. The functions of co-operation are prepared by persons at any level.
    Requirements Co-ordination is required by employees and departments at work irrespective of their work. Co-operation is emotional in nature because it depends on the willingness of people to work together.
    Relationship It establishes formal and informal relationships. It establishes an informal relationship.
    Freedom It is planned and entrusted by the central authority & it is essential. It depends upon the sweet will of the individuals and therefore it is not necessary.
    Support It seeks wholehearted support from various people working at various levels. Co-operation without co-ordination is fruitless & therefore it may lead to unbalanced developments.

    Therefore, the existence of co-operation may prove to be an effective condition or requisite for co-ordination. But it does not mean that co-ordination originates automatically from the voluntary efforts of the group of members. It has to be achieved through conscious & deliberate efforts of managers, therefore to conclude we can say that co-operation without co-ordination has no fruit and co-ordination without co-operation has no root.

    Discuss the Compare of Coordination and Cooperation Image
    Discuss the Compare of Coordination and Cooperation; Image from Pixabay.

    The Main Key Differences Between Coordination and Cooperation:

    The following points are noteworthy so far as the difference between coordination and cooperation is concerned:

    • The methodical game plan and synchronization of various components of the executives to guarantee, smooth working, know as coordination. The demonstration of working together or following standards, for the acknowledgment of shared objectives, calls cooperation.
    • Coordination is a basic action of the board; that helps in accomplishing agreement in real life among different related exercises and branches of the association. Actually, cooperation relies upon the desire of any individual, for example, to work with or help somebody willfully, for achieving regular destinations.
    • Coordination of a devise cycle performed to incorporate various exercises of the association. Then again, cooperation is a characteristic cycle, which isn’t arranged however happens precipitously, out of shared regard.
    • Coordination is a persistent capacity of the board. Thus, it is as long as possible. As against this, the cooperation of people is needed for achieving an errand or movement, consequently, it is for the momentary as it were.
    • Coordination may bring about the foundation of formal and casual connections. Dissimilar to, cooperation offers to ascend to the casual connection between people.
    • In coordination, there is open correspondence between all the individuals from the association. As restricted, implicit correspondence happens between people in cooperation.
    • Coordination of exercises performs at high-level administration, though cooperation performs at each level.

    Relationship Between Coordination and Cooperation:

    Co-ordination is a systematic plan of collective endeavors to give solidarity of activity in the quest for common destinations. It implies uniting the endeavors of various components of the association to give them the solidarity of direction. While cooperation indicates the collective endeavors of individuals working in the association intentionally to accomplish a specific reason.

    The presence of co-operation among the individuals from a gathering encourages co-ordina­tion. In any case, coordination doesn’t start from the deliberate endeavors of the gathering individuals. It must accomplish by the conscious endeavors of the administration.

    For example, five people occupied with pushing a taxi out of the mud have a solid demeanor of co-operation. Be that as it may, they may not be effective except if one of them gives leader­ship and coordinates the exercises of all. Similarly, the ensemble conductor coordinates the endeavors of the individuals from his gathering to delivering fine music.

    So, co-operation without co-ordination has no organic product, and coordination without co-operation has no root. Co-operation and co-ordination go hand in hand and one is the venturing stone of the other. A decent chief attempts to accomplish both because just through cooperation and coordination he can complete things through others.

  • Difference between Internal and External Sources of Recruitment

    Difference between Internal and External Sources of Recruitment

    Internal and External Sources of Recruitment Difference: Recruitment is the process of attracting the potential candidates and motivating them to apply for the jobs or selecting skilled and right candidates from the pool of applicants and appointing them for the right jobs. Her strategic thinking and decision-making can help in finding potential candidates. Also, human resources are one of the scarce resources and it is becoming a challenge to find the right candidate for the right job in the organizations. Also learn, Recruitment.

    Learn, What is the difference between Internal and External Sources of Recruitment?

    So organizations are approaching consultancies to find skilled and efficient employees to get a competitive advantage. Approaching recruitment agencies can give better results, but it is expensive and may not suitable for all organizations.

    Recruitment involves searching for the right candidates and motivating them to apply for the openings in the organization. Here sources of recruitment are two types i.e., Internal and External Sources of Recruitment of Employees!

    This article will help you to differentiate between internal and external sources of recruitment.

    The Difference Internal Sources:

    The following content is below, also learn, What is the Internal Sources of Recruitment?

    1. In the case of internal sources of recruitment, the management has a restricted choice vis-a-vis, the source out of which recruitment shall be done, as the only person available is either the existing or ex-employees of the organization.
    2. The cost of recruiting from internal sources is nil or negligible.
    3. Not much time is involved in recruiting personnel from internal sources; as employees are already available with the organization. Further, ex-employees of the organization could trace without taking much time.
    4. Selection formalities are minimum; as candidates from internal sources had already gone through detailed selection-procedure earlier. This saves, again time and cost, involving in undertaking the selection procedure.
    5. Candidates from internal sources, do not require any orientation (i.e. introduction); as this personnel is already familiar with various aspects of the organization, and it’s functioning.
    6. Only limited talent is available when personalized recruiting from internal sources. Their talents – existing and potential are already known to management.
    7. Candidates comprised of internal sources are said to have high morale; especially in cases of recruitment for promotion purposes
    8. The phenomenon of labor turnover is likely to minimize; when employees of the organization wait for their chances for promotion – especially in cases of time-bound promotions.
    9. Candidates picked up from internal sources quite advance in age; as they have already served the organization, for some time, in the past.
    10. Candidates from internal sources might or might not be suitable for newer types of jobs, arising in the organization.

    The Difference External Sources:

    The following content is below, also learn, What is the External Sources of Recruitment?

    1. In case of external recruitment, the management has quite a wide choice vis-a-vis, the sources out of which recruitment could do; as a large number of sources are available – which could compare based on their relative worth. And best sources of recruitment can finalize, based on such relative analysis.
    2. The cost of recruiting from external sources is from moderate to considerable – depending on particular sources.
    3. A detailed selection procedure has to undertake for carefully selecting candidates, from external sources. This also means time and cost, involving in undertaking the selection procedure.
    4. Much time is involving in recruiting personnel from external sources; as people take time to notice vacancies and yet take more time again to apply for jobs, to the organization.
    5. Needless to say that candidates from external sources require ori­entation; being absolutely new to the organization. This neces­sitates orientation training programs for them.
    6. Extra-ordinary talented personal might procure, from exter­nal sources – depending on the particular sources finalize for recruitment, and on chance fac­tor also.
    7. New candidates from external sources could not expect to have high morale for the organization, at least initially i.e. at the time of joining the organization.
    8. Labor turnover is quite likely; in case organizational jobs do not suit the recruits.
    9. Candidates from external sources are usually of a lower age i.e. belong to the young group of the population. In fact, minimum and maximum ages are an important requirement for candidates from external sources.
    10. For newer types of jobs, suitable candidates might recruit from a variety of external sources of recruitment.
    What is the Difference between Internal and External Sources of Recruitment - ilearnlot
    Difference between Internal Sources of Recruitment and External Sources of Recruitment
  • Difference between Recruitment and Selection Process

    Difference between Recruitment and Selection Process

    Recruitment and Selection Process Difference: The recruitment and selection process is one of the most important aspects of running new and established businesses alike. The right employees can take your business to new heights. The wrong ones can hurt business by missing sales, turning customers off, and creating a toxic workplace environment. Follow experts’ advice on each step of the recruitment and selection process to put together a team that fits with and enhances your business culture, goals, and objectives. Also learn, the Principles of Learning in Training, What is the difference between the Recruitment and Selection Process?

    Learn, What is the difference between Recruitment and Selection Process?

    Recruitment: “Recruitment” is the process of finding and hiring the best and most qualified candidate for a job opening, in a timely and cost-effective manner. It can also define as the “process of searching for prospective employees and stimulating and encouraging them to apply for jobs in an organization”.

    It is one whole process, with a full life cycle, that begins with the identification of the needs of the company concerning the job, and ends with the introduction of the employee to the organization.

    Selection Process: Employee Selection is the process of putting the right men on the right job. It is a procedure of matching organizational requirements with the skills and qualifications of people. Effective selection can do only when there is effective matching. By selecting the best candidate for the required job, the organization will get the quality performance of employees. Moreover, an organization will face less absenteeism and employee turnover problems. By selecting the right candidate for the required job, an organization will also save time and money. Proper screening of candidates takes place during the selection procedure.

    This article will help you to differentiate between the recruitment and selection process.

    The Difference in Recruitment:

    1. In recruitment, the purpose is to locate or find out probable candidates.
    2. Recruitment is positive, in that the management interests in maximizing the number of personnel on the recruitment list; because the larger is the number of persons on the recruitment list – the more is the probability of a better selection.
    3. Recruitment initiates the procurement aspect of personnel management.
    4. Also, Recruitment is done much in advance of time; when candidates would need for placement on various jobs in the organization.
    5. Recruitment involves less cost. The only costs involved relate to contacting personnel through different sources. Explain are the Features, Nature, Characteristics of Planning!

    The Difference in Selection:

    1. In selection, the purpose is to select candidates finally for appointment to various jobs in the organization.
    2. Selection is a negative process. It is a process of systematic elimination of unsuitable candidates at different stages of the selection procedure. Only the most suitable ones can reach up to the placement stage. The number of candidates selected is far less than the number appearing on the recruitment list
    3. Selection completes the procurement aspect of personnel management.
    4. Also, Selection is done slightly in advance of time; when candidates would need for placement on various jobs, in the organization. In case, the selection is done much in advance of the required time, the management would have problems as to retaining them up to the required time.
    5. The selection procedure is not only money consuming; but also time and efforts consuming. Suitable arrangements have to make for designing and implementing an appropriate selection procedure; because of the nature of the job for which people have to select.
    The Difference between Recruitment and Selection Process - ilearnlot
    Difference between Recruitment Process and Selection Process
  • What is the Difference Between Money and Capital Market?

    What is the Difference Between Money and Capital Market?

    Money and Capital Market Difference; What the differences between things are you first need to understand what each of the items is. In this case, before you can understand the difference between the money market and the capital market, you are going to need to understand. What money market is and what capital markets are. Once you understand the two items are it will be easier to see what the difference or differences are between the two markets. Also learn, What is the Difference Between an Intrapreneur and Entrepreneur? the Difference Between Money and Capital Market!

    Learn and Understand, the Difference Between Money and Capital Market!

    The following Difference below is:

    What is the Money Market?

    The money market is the global financial market for short-term borrowing and lending and provides short-term liquid funding for the global financial system. The average amount of time that companies borrow money in a money market is about thirteen months or lower. Some of the more common types of things used in the money market are certificates of deposits, bankers’ acceptances, repurchase agreements, and commercial paper to name a few.

    What the money market consists of are banks. That borrow and lend to each other, but other types of finance companies are involving in the money market. What usually happens is the finance companies fund themselves by issuing large amounts of asset-backed commercial paper. That is securing by the promise of eligible assets into an asset-backed commercial paper conduit. Your most common examples of these are auto loans, mortgage loans, and credit card receivables.

    What is Capital Market?

    The capital market is a type of financial market. It includes the stocks and bonds market as well. But in general, the capital market is the market for securities. Where either companies or the government can raise long-term funds. One way that the companies or the government raise these long-term funds is through issuing bonds.

    Which is where a person buys the bond for a set price and allows the government or company to borrow. Their money for a certain time but they are promising a higher return for allowing them to borrow the money. The higher return is paying through the interest that accrues on the money that the government or company borrows. The Difference between Revaluation and Realization Account!

    Another way that the companies or government can raise money in the capital market is through the stock market. Most of the time you don’t see the government as a part of the stock market. But it can happen so we need to include them. But how the stock market works is that the companies decide to sell shares of their stock. Which is ownership in the company, to ordinary people and other companies, as a way to raise money. The people who buy the stock are usually given dividends each year if the company agrees to pay out dividends. So, that is another possible return on their investment.

    The capital market consists of two markets. The first market is the primary market and it is where new issues are distributing to investors and the secondary market where existing securities are trading. Both of these markets are regulating so that fraud does not occur and in India, the Securities and Exchange Board of India (SEBI) is in charge of regulating the capital market.

    The Difference Between Money and Capital Market!

    The difference between the money market and capital market is that money markets are more of a short-term borrowing or lending market. Where banks borrow and lend between each other. As well as, finance companies and everything that is borrowing, is usually paying back within thirteen months. Whereas capital markets are for long-term investments, companies are selling stocks and bonds to borrow money from.

    Their investors to improve their company or to purchase assets. Another difference between the two markets is what is being used to do the borrowing or lending. In the money markets, the most common things used are commercial paper and certificates of deposits. Whereas with the capital markets the most common thing used is stocks and bonds.

    The money market is distinguishing from the capital market based on the maturity period, credit instruments, and the institutions, the Difference Between Money and Capital Market:

    Basic Role:

    The basic role of the money market is that of liquidity adjustment. The basic role of the capital market is that of putting capital to work, preferably to long-term, secure, and productive employment. Learn about the Difference Between Management and Leadership!

    Maturity Period:

    The money market deals with the lending and borrowing of short-term finance. While the capital market deals in the lending and borrowing of long-term finance.

    Credit Instruments:

    The main credit instruments of the money market are called money, collateral loans, acceptances, bills of exchange. On the other hand, the main instruments used in the capital market are stocks, shares, debentures, bonds, securities of the government.

    Nature of Credit Instruments:

    The credit instruments dealt with in the capital market are more heterogeneous than those in the money market. Some homogeneity of credit instruments is needed for the operation of financial markets. Too much diversity creates problems for investors.

    Institutions:

    Important institutions operating in the money market are central banks, commercial banks, acceptance houses, non-bank financial institutions, bill brokers, etc. Important institutions of the capital market are stock exchanges, commercial banks, and non-bank institutions. Such as insurance companies, mortgage banks, building societies, etc.

    Purpose of Loan:

    The money market meets the short-term credit needs of the business; it provides working capital to the industrialists. The capital market, on the other hand, caters to the long-term credit needs of the industrialists and provides fixed capital to buy land, machinery, etc.

    Risk:

    The degree of risk is small in the money market. The risk is much greater in the capital market. The maturity of one year or less gives little time for a default to occur, so the risk is minimizing. Risk varies both in degree and nature throughout the capital market.

    Relation with Central Bank:

    The money market is closely and directly linked with the central bank of the country. The capital market feels the central bank’s influence, but mainly indirectly and through the money market.

    Market Regulation:

    In the money market, commercial banks are closely regulating. In the capital market, the institutions are not much regulated.

    What is the Difference Between Money and Capital Market - ilearnlot
    What is the Difference Between Money and Capital Market?
  • Case Study on the Merger Between US Airways and American Airlines!

    Case Study on the Merger Between US Airways and American Airlines!

    Merger Between US Airways and American Airlines; On December 9th, 2013 the two airlines, US Airways, and American Airlines merged to form the American Airlines Group that turn out to be the major airline in the world. Case Study, Merging American Airlines, and US Airways using change management models like Kotter; This merger was structured by the enlarged competition that airlines are countenancing in the business at present. The merger offered a prospect for both airlines to make use of the benefits of an extensive network. That would affect after merging as countered to when each one operates separately. One of the foremost circumstances that encircled the merger was the imminent insolvency of American Airlines.

    Learn and Understand, Case Study on the Merger Between US Airways and American Airlines!

    The company in 2011 had filed for bankruptcy even though it relapsed to profitability the same year in July. The merger would enhance admission to opportunities of business for both airlines, particularly American Airlines that would decrease its coverage to financial risks. Which were the preliminary rounds for the corporation filing for bankruptcy? The merger would generate enhanced synergies that would be apparent in the course of increased flexibility and financial strength in the market.

    Each of the entities merged would have admission to further destinations and bigger clientele. Each of them would admit to a bigger destination network i.e. 300 destinations all around the world. They as well had a codeshare contract where customers would impeccably book. Their flights from any US Airways or American Airlines networks. Such controls are an enhancement to each of the airline’s abilities and results in bigger business and performance.

    Explain 01:

    There are a variety of positive traits of this merger. One of the major advantages is that both airlines will have an imminent penetration of the market than what they had beforehand. This is since they will be creating daily more than 6,500 flights to above 300 destinations in additional. Then 50 countries all around the globe, affected enlarged revenues and improved governance of the most important routes. The American Airlines Group after the merger is a foremost player in Latin American. The global market for the airline (CAPA center for aviation). The exploitation of these prospects directs to enhanced market performance and superior capability to compact with aggressive pressure. This is since the fresh airline company, after the merger, has additional resources at its disposal that direct to superior performance.

    An additional advantage of the merger is the increase and diversification of the products offered by the airline. Alongside the code-sharing contract that permits air travelers to book. Their trip from any of the websites of the company. There is improving access to one world association. This entails the improved opportunities of networking for the airline in the course of business agreements with further players in the industry, for instance, Iberia, British Airways, and Finnair. It lets the customers’ additional choices of air travel and unforgettable experiences of traveling crosswise a superior and more improved network. This develops levels of customer satisfaction and is necessary for developing loyalty to the customer.

    Explain 02:

    The merger as well generates one of the finest-developed programs of loyalty i.e. Advantage. Customers have superior access to prospect to possess and redeem miles crosswise the joint routes of both airlines. It constructs the customers gain from increased utilization of opportunities and capabilities in the wider market. It as well results in increased expediency for travelers, ensuing in cost savings.

    The fresh organizational structure has perceived the Doug Parker retention as the Chief executive officer of the fresh entity. The merger has, consequently, seen the construction of simply one chief executive’s place as opposed to two because of the fact. That each one of these companies had its individual chief executive formerly. There were as well considerable changes in the Board of Directors for the fresh company. The newly appointed Board of Directors incorporated four representatives of US Airways employees and as well five representatives for creditors of American Airlines. The preceding Boards of the separate entities did not have such representatives.

    Doug Parker was formerly the chairman and chief executive of US Airways. On the other hand beneath the new position, the chief executive will not be the chairman of the board. The preceding companies in particularly US Airways had a variety of groups that exercised to operate underneath the chief executive. Such groups incorporated corporate affairs, marketing and revenue group, and finance, in addition to the operations groups. However, underneath the new corporation, there are no such groups.

    Explain 03:

    There were no chief changes in the practices of human resources after the merger. The fresh company, American Airlines Group, adopted the majority of its human resource strategies from US Airways and maintained the majority of its top managers. The foremost reason the corporation made no important changes in their human resource strategies is owing to reasons of business.

    They wanted to preserve their combined market share where employees contribute a vital role. They were acquainted with the fact that preserving. Their existing employees to a certain extent than recruiting new ones would simply utilize the more forceful worldwide network they had access to. This was reflecting in the fresh setup where representatives of employee straightforwardly represented concerns of the employee in the board of directors. This was intended for enhancing the satisfaction level of these workers. This is since advanced levels of satisfaction enhance employee retention levels. The majority of these employees had served a lot of years in both airlines and their knowledge was very important for the success of the fresh airline company.

    The management at both companies had instituted that the majority of their non-impressive performances formerly. For instance, those in 2011 that made American Airlines file for bankruptcy were primarily owing to callous market conditions. Employees had not added to the under-performance. The merger rendering the new entity to huge resources that might facilitate it to triumph over these market challenges. In actual fact, the merger was seen as a prospect where the company would present. Benefits of using The Theory of Human Relationship Management!

    Explain 04:

    The employees better compensation and benefits for their services. It was perceiving as an opportunity to close up the boil feuds. That had been relentless among the two companies’ management and labor unions representing workers. This was additional widespread in American airlines than at US Airways. It concludes with union representatives being integrated into. The Board of the fresh entity to make certain employee concerns were not looked down upon. Also read, Market Research Coffee of “Starbucks” Entry into China!

    The retention of the majority of the employees and practically. A parallel organizational structure is owing to the effectiveness of training such personnel on leadership qualities. This is since the fresh entity would sustain minimal costs training these employees on facets of leadership because of the fact. That the airline had obtained a bigger global presence, as it turns out to be the biggest in the world. The development of leadership qualities in all its employees is decisive to the utilization of the opportunities offered by the bigger and more composite global market. Such employees are previously familiarized with the internal operations of the airline industry. As opposed to new employees that would need substantial spending on induction and training.

    Case Study on the Merger Between US Airways and American Airlines - ilearnlot

  • Why is Intrapreneurship Better than Entrepreneurship?

    Why is Intrapreneurship Better than Entrepreneurship?

    Intrapreneur generally has the burning vision which helps them to improve the organization as an Intrapreneur you have the company name and a marketing channel at your back which can increase the chances of success of your enterprise. Intrapreneur does not need to risk his funds but as an entrepreneur have to risk your finances. Also learn, Intrapreneurs Inside an Entrepreneurs, This article explains to Why is Intrapreneurship Better than Entrepreneurship? Especially if capital for your idea is easier to come from inside the organization, Intrapreneurs better than entrepreneurs. The success of the enterprise needs continuous assesses of the companies technologies to stay competitive. If the Intrapreneur wants to bypass the existing company distribution channel still the company name matters. For the right person, an intrapreneur is invigorating and addicting. The company provides him security with the freedom and creativity of the entrepreneur.

    Learn, Why is Intrapreneurship Better than Entrepreneurship? Deeply Explanation.

    Are you in a place in your career where you are willing to take a gamble? Are you prepares to bet it all on yourself and roll the dice on your future? Or has that time come and gone and now you’re just looking for stability for you and your family? Or maybe you’re stuck in the middle.

    Maybe you’re weighing the pros and cons of both paths and you’re desperately trying to decide between entrepreneur versus intrapreneur. The former revels in the idea of being their boss and making all the big decisions. While the latter is motivated by leading initiatives within the confines of corporate America.

    This article helps you compare the two career paths and decide which one is right for you.

    An entrepreneur is someone who, through his or her skills and passion. Creates business and is willing to take full accountability for its success or failure. An intrapreneur, on the other hand, is someone who utilizes his or her skill, passion and innovation to manage or create something useful for someone else’s business… with entrepreneurial zest.

    Though both are visionary, it is the entrepreneur who spots an opportunity in the marketplace and has the courage and zeal to turn this opportunity into a business. In contrast, however, the Intrapreneur uses his or her passion. Drive and skills to manage the business or create something new and useful for the business.

    The main disparity between an entrepreneur and an intrapreneur is that an entrepreneur has the freedom to act on his or her whim; whereas, an intrapreneur may need to ask for management’s approval to make certain changes in the company’s processes. The Product design or just about any innovation he or she needs to implement. Since an intrapreneur acts on innovative impulses, this may result in conflict within the organization. It is important for organizations who are implementing intrapreneurship, to create an atmosphere of mutual respect among employees.

    The works environment:

    One of the biggest differences between being an entrepreneur and intrapreneur is going to be your place of business and its culture.

    In 2012, 52 percent of entrepreneurs decide to make their venture a home-based business—something many agree is a very attractive aspect of entrepreneurship. Meanwhile, just 10 percent of internal employees spent at least one day a week working from home—something you probably wish you could do more often.

    But the work environment is about more than just location—it’s also about company culture. As an entrepreneur, you’ll shape the culture that surrounds your business. Meanwhile, intrapreneurs often join a preexisting culture that requires acclimation. It’s important to remember that an organization’s culture is something that can make you love or hate your job.

    It doesn’t matter if it’s your home, a small shop or even a large corporate office. Entrepreneurs and intrapreneurs need to be comfortable with their work environment and company culture. Start thinking about which environment and culture bests fits your interests as you consider your entrepreneurial or intrapreneurial career path.

    Responsibilities:

    Becoming an entrepreneur puts the responsibility clearly on your shoulders. From accounting and marketing to customer service and social media. You are solely responsible for getting things done—a reality that is sometimes difficult to manage with only so many hours in a day. As an intrapreneur, however, you’re often tasking to work in one specializing area. That might mean working in accounting, marketing, customer service or social media, but rarely will an intrapreneur assign to all four departments.

    Start thinking about if you would prefer to take ownership by juggling many different balls at the same time or simply focusing on a single set of responsibilities.

    Risks & rewards:

    The fact is that both entrepreneurs and intrapreneurs face risks. But, not all risks are equal. Entrepreneurs need to embrace the financial risk of forming their businesses, but the potential for financial gain may offset that risk. On the other hand, intrapreneurs enjoy the perks of a steady paycheck and health benefits but their employment is generally considering “at-will”. Which means the organization can terminate their employment at any time.

    The difference between entrepreneurs and intrapreneurs, as it relates to risks versus rewards, is always going to be a personal decision. And they are most certainly not always financially driven. Be honest with yourself about how much risk you are comfortable with and which rewards you value the most.

    Motivation:

    Deep down, both entrepreneurs and intrapreneurs are motivating to make an impact on their businesses or organizations. But motivation comes in many forms for many people.

    If you see yourself as someone who is motivated by things such as money. The personal achievement or fulfilling a lifelong dream, you might be fit to be an entrepreneur. But if your primary motivation is financial stability, love of what you are doing and putting others ahead of you, perhaps becoming an intrapreneur is a better fit.

    Finding your path:

    Deciding to become an entrepreneur can be very rewarding as it offers a variety of perks related to scheduling flexibility and control in making decisions. Meanwhile, intrapreneurs who work hard for a company often enjoy additional resources, financial stability, and greater responsibilities.

    At the end of the day, deciding on entrepreneurship versus intrapreneurship as a career path can be a tough decision. It’s important to be thinking about which path best matches your dreams, interests, and aspirations.

    So now Which one Better for You, Is Intrapreneurship Better than Entrepreneurship? Either way, the choice is yours.

    Why is Intrapreneurship Better than Entrepreneurship
    Why is Intrapreneurship Better than Entrepreneurship? Also, the image by Online.

    Reference:

    1. Compare – //www.ourknowledge.asia/blog-posts–articles/entrepreneur-or-intrapreneur-whats-the-difference
    2. Difference – //www.rasmussen.edu/degrees/business/blog/entrepreneurship-vs-intrapreneurship-career-path/
    3. Photo Credit URL – //estatico2.diariolibre.com/binrepository/2000×1333/0c0/0d0/none/10904/JNET/image_content_9378637_20180111174929.jpg

  • Factors affecting Organizational Change, External and Internal

    Factors affecting Organizational Change, External and Internal

    Factors affecting Organizational Change; Change is inevitable in the life of an organization. In today’s business world, most organizations are facing a dynamic and changing business environment. Also Learn, What are the Participation and Organizational Change? factors affecting change in organization External, and Internal. They should either change or die, there is no third alternative. Organizations that learn and cope with change will thrive and flourish and others who fail to do so will be wiped out. The major forces which make the changes not only desirable but inevitable are technological, economic, political, social, legal, international, and labor market environments.

    Explain are Factors affecting Organizational Change, Difference between External and Internal Factors. 

    In very simple words, we can say that change means the alteration of the status quo or making things different. The factors affecting change in organisation; “The term change refers to any alterations which occur in the overall work environment of an organization.”

    “When an organizational system is disturbed by some internal or external force, change frequently occurs. Change, as a process, is simply the modification of the structure or process of a system. It may be good or bad, the concept is descriptive only.”

    Organizational changes are required to maintain equilibrium between various external and internal forces to achieve organizational goals. Therefore various factors that may be important for necessitating organizational changes may group into two categories: external and internal.

    #EXTERNAL FACTORS:

    Every organization exists in some context: no organization is an island in itself. Each must continually interact with other organizations and individuals – the consumers, suppliers, unions, shareholders, government – and many more. Each organization has goals and responsibilities related to others in its environment. Thus not only an organization must deal with its environment in conducting its affairs, but it must also consider the goals of others as it establishes its foals and conducts its operations.

    The present-day environment is dynamic and will continue to be dynamic. Changes in social, political, economic technological, and legal environments force organizations to change themselves. Such change may result in organizational changes like major functions, production processes, labor-management relations, nature of competition, economic constraints, organizational methods, etc. to survive in the changing environment, an organization must change.

    How the change in various environmental factors necessitates the change in the organization may see in the following context:

    1. Technological Changes:

    when there is a change in technology in the organization’s environment and other organizations adopt the new technology, the organization under focus becomes less cost-effective and its competitive position weakens. Therefore, it has to adopt new technology. When organizations adopt new technology, their work structure stands affected and a new equilibrium has to establish. For example computers and automation have made a significant impact on organizational functioning. Also read, Explain Organizational Culture.

    2. Changes in Marketing Conditions:

    Since every organization exports its outputs to the environment, an organization has to face competition in the market. There may be two types of forces that may affect the competitive position of an organization – other organizations supplying the same products and buyers who are buying the product. Any change in these forces may require suitable changes in the organization. For example, when the Indian economy was liberalized (the process continues), many foreign organizations entered the Indian market.

    This forced many Indian organizations to realign themselves with the new situation. The result is that there have been many cases of divesting the businesses and concentrating on the core businesses, acquiring core businesses, and developing competitive competence to face competitive threats. Similarly, there may be changes in buyers in terms of their needs, liking – disliking, and income disposal for a product. These changes force the organizations to bring those products which meet the buyer’s requirements.

    3. Social changes:

    The social changes reflect in terms of people’s aspirations, their needs, and their way of working. Social change has taken place because of several forces like the level of education, urbanization, feeling of autonomy, and international impact due to new information sources. These social changes affect the behavior of people in the organization. Therefore it is required to adjust its working so that it matches people.

    Political and legal factors broadly define the activities which an organization can undertake and the methods which will follow it in accomplishing those activities. Any change in these political and legal factors may affect the organizational operation. Don’t forget for learning, Dimensions of Organizational Climate.

    #INTERNAL FACTORS:

    It is not only the change in external factors that may necessitate organizational change, but any change in an organization’s internal factors may also necessitate change. Such a change is required because of two reasons: a change in managerial personnel and a deficiency in existing organizational practices.

    1. Change in Managerial Personnel:

    Besides environmental; changes, there is a change in managerial personnel. Old managers are replaced by new managers who are necessitating because of retirement, promotion, transfer, or dismissal. Each new manager brings his ideas and way of working in the organization. The manager brings his ideas and way of working to the organization. The relationships more particularly informal ones, change because of changes in managerial personnel. Moreover, attitudes of the personnel change even though there is no change in them. The result is that an organization has to change accordingly.

    2. Deficiency in Existing Organization:

    Sometimes, changes are necessary because of deficiencies in the present organizational arrangement and process. These deficiencies may be in the form of an unmanageable span of management, a large number of managerial levels, lack of coordination between various departments, obstacles in communication, the multiplicity of committees, lack of uniformity in policy decisions, lack of cooperation between line and staff, and so on.

    3. Nature of the workforce:

    The nature of the workforce has changed with time. Different work values have been expressed by different generations. Workers who are in the age group of 50 plus value loyalty to their employers. Workers in their mid-thirties to forties are loyal to themselves only. The youngest generation of workers is loyal to their careers. The profile of the workforce is also changing fast. The new generation of workers has better education; they place greater emphasis on human values and question the authority of managers. Their behavior has also become very complex and leading them towards organizational goals is a challenge for the managers. The employee turnover is also very high which again puts the strain on the management.

    4. To avoid developing inertia:

    In many cases, organizational changes take place just to avoid developing inertia or inflexibility. The conscious manager takes into account this view of the organization that the organization should be dynamic because any single method is not the best tool for management every time. Thus, changes are incorporated so that the person develops a liking for change and there is no unnecessary resistance when the major change in the organization is brought about.

    What are Factors affecting Organizational Change External and Internal
    What are the Factors affecting Organizational Change? External and Internal.

    Reference:

    1. Organizational Changes – //livinfo.blogspot.in/2012/10/participation-and-organisational-climate.html
    2. Factors Affecting Organizational Change – //www.mbaknol.com/management-concepts/factors-affecting-organizational-change/
    3. Photo Credit URL – //bookboonglobal.com/wp-content/uploads/sites/8/2013/09/How-demographic-changes-will-impact-organizations-and-managers.png
    4. Image Source HD Wallpapers.

  • Difference between Leadership and Entrepreneurship

    Difference between Leadership and Entrepreneurship

    Leadership and Entrepreneurship Difference; Sometimes, an entrepreneur and a leader, or say, leadership and entrepreneurship consider as a synonym, i.e. meaning the same thing. But, these two terms mean quite different meanings. Entrepreneurship means a set of attributes that an entrepreneur possesses and practices in starting his /her enterprises. But, leadership is the process of influencing people and providing an environment for them to achieve organizational objectives.

    Learn & Explanation, What is the Difference between Leadership and Entrepreneurship?

    Thus, leadership is quite different from entrepreneurship. Entrepreneurship can include leadership, but not leadership in entrepreneurship. Also, Learn about the Difference Between Management and Leadership!

    Leadership has also implications for entrepreneurial behavior. People with leadership qualities, for example, influencing ability, are found more. Prone to become entrepreneurs and perform entrepreneurial functions more effectively. Research studies (Burns 1978) report that entrepreneurs who blend with leadership attribute often emerge as ‘transformational entrepreneurs. Who replace old and routine things with altogether new sets and standards of work performance. Are Entrepreneurs Made or Born! Explanation Why? 

    They work for change rather than stability. This is because leadership involves a drive, i.e. (high) need for achievement, the most important antecedent to entrepreneurship. This drive represents the inner motivations that entrepreneurs with leadership qualities possess to pursue their goals and encourage others to willingly and enthusiastically move forward to achieve the set goals.

    The relevant leadership qualities or competencies influencing entrepreneurial behavior are inner drives, integrity, self-confidence, intelligence, knowledge concerning the business, and emotional intelligence. One way to distinguish entrepreneurship from leadership can be in terms of their task demands and personal dispositions.

    Difference between Leadership and Entrepreneurship:

    The Following difference is:

    To compare or the difference between leadership and entrepreneurship, we may want to do so in four dimensions already addressed before (and following Cogliser and Bringham, Vecchio): Vision, Influence, Leading in the Context of Innovation/Creativity, and Planning.

    Vision (followers/larger constituency)!
    • A Vision is the main component when inspiring followers toward exemplary performance or other goal-directed behavior as well as organizational performance.
    • The Vision attributes (brevity, clarity, abstractness, challenge, future orientation, stability, and desirability or ability to inspire) and content (growth imagery) are related to new venture growth. Followers need to motivate through involvement, participation, and a professionally meaningful mission.
    Influence!
    • A commonality across many of the various definitions of leadership is the ability to influence others toward a goal. Rational persuasion widely uses for both upward, lateral, and downward influence.
    • Entrepreneurs not only see opportunities (understand the ways and means) but can marshal resources to carry out their vision. The use of rational persuasion and inspirational appeals is likely to be effective when the request is legitimate and in line with the entrepreneur’s values and the constituencies’ needs.
    Leading in the context of Innovation!
    • Leading creative people requires technical expertise and creativity, employing several direct and indirect influence tactics.
    • Entrepreneurial leadership should involve idea generation, idea structuring, and idea promotion.
    Planning!
    • In complex, dynamic environments where people must coordinate their activities, planning represents a key influence on performance.
    • Entrepreneurs have a clear need for the mental awareness of future actions to anticipate potential reactions to strategic choices.

    Entrepreneurship is all about a set of skills and abilities to be as self-sufficient as possible when it comes to business. Meaning that entrepreneurship more focuses on risk-taking, recognizing opportunities, and the ability to be a self-starter.

    Whereas, leadership is about effectively managing the people and resources around you. A great leader isn’t necessarily focused on being a risk-taker, nor are they require to be visionaries. All a leader is primarily focus on bringing people together to execute a common goal.

    What is the Difference between Leadership and Entrepreneurship - ilearnlot
    Difference between Leadership and Entrepreneurship