Tag: Features

Explain are the Features, Nature, Characteristics of Planning!

Learn and Understand, Explain are the Features, Natures, Characteristics of Planning!

Planning is a particular type of decision making that addresses the specific future that managers desire for their organizations. It is the process of fixing goals of the business and finding the ways to attain these goals. The plan will help the managers to organize people and resources effectively. Plans develop confidence in managers. Also, the importance of planning in management, Explain are the Features, Nature, Characteristics of Planning!

Planning is the first managerial function to perform in the process of management. It is concerning with deciding in advance what is to do, when, where, how and by whom it is to do. Thus, it is a predetermined course of action to achieve a specified aim or goal.

All organizations whether it is the government, a private business or small businessman require planning. To turn their dreams of increase in sale, earning the high profit and getting success in business all businessmen have to think about future; make predictions and achieve the target. To decide what to do, how to do and when to do they do planning.

Meaning of Planning!

Planning can define as “thinking in advance what is to do when it is to do, how it is to do and by whom it should do”. In simple words we can say, planning bridges the gap between where we are standing today and where we want to reach.

Planning involves setting objectives and deciding in advance the appropriate course of action to achieve these objectives. So, we can also define planning as setting up of objectives and targets and formulating an action plan to achieve them.

Another important ingredient of planning is time. Plans are always developing for a fix time period as no business can go on planning endlessly.

Keeping in mind the time dimension we can define planning as “Setting objectives for a given time period, formulating various courses of action to achieve them and then selecting the best possible alternative from the different courses of actions”.

The definitions of planning given by the different writers are listing here.

In the words of Alfred and Beatty, “Planning is thinking process, the organizing foresight, the vision based on facts and experience that is requiring intelligent action.”

According to Koontz and O’Donnell, “Planning is essentially decision-making since it involves choosing from among alternatives.” According to George Terry, “Planning is the selecting and relating of facts and making and using of assumptions regarding. The future in the visualization and formulation of proposing activities believes necessary to achieve the desired results.”

The following Features, Nature, Characteristics of Planning are!

1. Planning contributes to Objectives:

Planning starts with the determination of objectives. We cannot think of planning in absence of objective. After setting up of the objectives, planning decides the methods, procedures, and steps to take for the achievement of set objectives. Planners also help and bring changes in the plan if things are not moving in the direction of objectives.

For example, if an organization has the objective of manufacturing 1500 washing machines and in one month only 80 washing machines are manufacturing. Then changes are making the plan to achieve the final objective.

2. Planning is the Primary function of management:

Planning is the primary or first function performing by every manager. No other function can execute by the manager without performing planning function because objectives are set up in planning and other functions depend on the objectives only.

For example, in organizing function, managers assign authority and responsibility to the employees and level of authority and responsibility depends upon objectives of the company. Similarly, in staffing, the employees are appointed. The number and type of employees again depend on the objectives of the company. So planning always proceeds and remains at no. 1 as compared to other functions.

3. Pervasive:

Planning is requiring at all levels of the management. It is not a function restricted to top-level managers only but planning is done by managers at every level. Formation of major plan and framing of overall policies is the task of top-level managers whereas departmental managers form the plan for their respective departments. And lower level managers make plans to support the overall objectives and to carry on the day to day activities.

4. Planning is futuristic/Forward-looking:

The Planning always means looking ahead or planning is a futuristic function. A Planning is never done in the past. All the managers try to make predictions and assumptions for future and these predictions are creating on the basis of past experiences of the manager and with the regular and intelligent scanning of the general environment.

5. Planning is continuous:

Planning is a never-ending or continuous process because after making plans also one has to be in touch with the changes in changing the environment and in the selection of one best way.

So, after making plans also planners keep making changes in the plans according to the requirement of the company. For example, if the plan is made during the boom period and during its execution. There is depression period then planners have to make changes according to the conditions prevailing.

6. Planning involves decision making:

The planning function is needed only when different alternatives are available and we have to select the most suitable alternative. We cannot imagine planning in absence of choice because in planning function managers evaluate various alternatives and select the most appropriate. But if there is one alternative available then there is no requirement of planning.

For example, to import the technology if the license is only with STC (State Trading Co-operation) then companies have no choice but to import the technology through STC only. But if there are 4-5 import agencies including in this task then the planners have to evaluate terms and conditions of all the agencies and select the most suitable from the company’s point of view.

7. Planning is a mental exercise:

It is the mental exercise. Planning is a mental process which requires higher thinking that is why it is kept separate from operational activities by Taylor. In planning assumptions and predictions regarding future are made by scanning the environment properly. This activity requires the higher level of intelligence. Secondly, in planning various alternatives are evaluated and the most suitable is selected which again requires the higher level of intelligence. So, it is right to call planning an intellectual process.

Main Nature or Characteristics of Planning!

The following are the important characteristics of planning:

1. Focus on objectives.

A plan starts with the setting of objectives and then makes efforts to realize them by developing policies, procedures, strategies, etc.

2. It is an intellectual process.

According to Koontz and O’Donnell, planning is an intellectual process involving mental exercise, foreseeing future developments, making forecasts and the determination of the best course of action.

3. Planning is a selective process.

It involves the selection of the best one after making a careful analysis of various alternative courses of action. It is concerning with decision-making relating to (a) what is to do, (b) how it is to do, (c) when it is to do, and (d) by whom it is to do.

4. Planning is pervasive.

Planning is a pervasive activity covering all the levels of an enterprise. While top management is concerning with strategical planning, the middle management and the lower management are concerning with administrative planning and operational planning respectively.

5. Planning is an integrated process.

Planning involves not only the determination of objectives but also the formulation of sound policies, programmes, procedures and strategies for the accomplishment of these objectives. It is the first of the managerial functions and facilitates other managerial functions like organizing, staffing, directing and controlling.

6. Planning is directed towards efficiency.

To increase the efficiency of the enterprise is the main purpose of planning. The guiding principles of a good plan are the maximum output and profit at the minimum cost. Terry has aptly stated that “planning is the foundation of the most successful action of an enterprise.”

7. Planning is flexible.

The process of planning should be adaptable to the changes take place in the environment. Koontz and O’Donnell emphasize that “effective planning requires continual checking on events and forecasts and the redrawing of plans to maintain a course towards a designed goal.”

8. The first function in the process of management.

Planning is the beginning of the process of management. A manager must plan before he can possibly organize, staff, direct/control. Because planning sets all other functions into action, it can see as the most basic function of the management. Without planning, other functions become the meaningless activity, producing nothing, but chaos.

9. It is a decision-making process.

Decision-making is an integral part of planning. It is defined as the process of choosing among alternatives. Obviously, decision-making will occur at many points in the planning process. For example, in planning for their organization, the managers first decide which goals to pursue: shall we manufacture all parts internally or buy some parts from outside?

10. It is a continuous process.

Planning is a continuous process. Koontz and Donnell rightly observe that like a navigator constantly checking where his ship is going in the vast ocean, a manager should constantly watch the progress of his plans. He must constantly monitor the conditions, both within and outside the organization, to determine if changes are requiring in his plans.

April 11, 2018
What are the Features of Sole Proprietorship?

Sole proprietorship highlights or characteristics or Features; It refers to a business organization in which enterprises are controlled or owned by a single person. The sole proprietorship is the oldest form of business enterprise in India. It is the simplest form of business and all the risks or losses are bearer by a single person. Also, if he wants any help they can get it from their friends, family, or relatives. It doesn’t require any legal recognition or formalities and the simplest way to open a business. Also learn, Sole Proprietorship: the Advantages and Disadvantages!

Explaining, What are the highlights or characteristics or Features of Sole Proprietorship?

Also, A sole proprietorship is a business owned by a single individual. This sole owner is responsible for the entire business and is the sole recipient of the business’s earnings. Unlike other legal structures, the sole proprietorship requires less paperwork and is subject to few business restrictions and regulations.

15 best Features of Sole Proprietorship:

The main highlights or characteristics or features of the sole proprietorship form of business can list as follows:

One Man Ownership:

In the proprietorship, only one man is the owner of the enterprise.

No Separate Business Entity:

No distinction is made between the business concern and the proprietor. Both are the same.

No Separation between Ownership and Management:

In the proprietorship, management rests with the proprietor himself/herself. The proprietor is a manager also.

Unlimited Liability:

Unlimited liability means that in case the enterprise incurs losses, the private property of the proprietor can also utilize for meeting the business obligations to outside parties. As there is no division between the business and the business person, accordingly the individual risk of the entrepreneur is boundless. If the business can’t pay its obligations and liabilities, at that point, the entrepreneur is responsible for the equivalent and pay them. For example, the proprietor needs to pay the forthcoming sum either by selling their resources or property, a house, care, and others.

All Profits or Losses to the Proprietor:

Being the sole owner of the enterprise, the proprietor enjoys all the profits earned and bears the full brunt of all losses incurred by the enterprise.

A Less-Formalities:

A proprietorship business can start without completing many legal formalities. Some businesses too can start simply after obtaining the necessary manufacturing license and permits.

Personal Organization or Common Identity:

A sole traders’ concern has no separate legal entity independent of the owner. The owner and the business concern are the same. The owner owns everything the business owns and he owes everything the business owns.

Capital:

In the sole traders, the capital is employing by the owner himself from his personal resources. He may also borrow money from his friends and relatives if he cannot depend solely on his personal resources.

Profits and Losses:

The surplus arising in the business of the sole trader entirely belongs to him and similarly, all the business losses and risks are to be borne by him alone.

No Special Legislation:

Sole traders are not governing by any special legislation. A partnership firm is governing by the Partnership Act, a joint-stock company is governing by the Companies Act, and a co-operative society by the Co-operative Societies Act. Any person who is competent to contract can start his business as a sole trader. However, he is subject to the common law, the law of contract, and the law of insolvency.

The concept of Unlimited Liability. As well as, the liability of a shareholder or member of a company or a co-operative society limits to the extent of the face value of the shares held by him. For example, if Mr. X subscribes to 100 shares of Rs. 10 each, his total liability is unto Rs. 1,000 only. If he has already paid Rs.5 per share, his liability will restrict to the unpaid portion of his shares, i.e., Rs. 500 only. Thus, there is a limit to the extent of liability of the shareholder of a company.

Thanks, Also, Photo Credit to pixabay.com/ More free Images!

No Legal Formalities:

There is no different law-related with a sole proprietorship to oversee it and accordingly, there is no presence of any arrangement of extraordinary standards just as guidelines to follow. Also, best of all, it doesn’t require either any enrollment or consolidation of any sort. Much of the time, we require just the permit to fire up the ideal business. Like that of the beginning, there are no legitimate tasks joined to the end methods. Along these lines, it gives effortlessness to start a business and do it with less issue.

Danger and Profit:

The proprietor of this business is the danger carrier in a sole exclusive. Since the business person is the main individual who put resources into the business monetarily, so all dangers have a place with him in particular. Regardless of whether the business fizzles or develops, the proprietor is the individual who gets influenced by the equivalent. Actually, he additionally appreciates all benefits acquired from the business. There is no compelling reason to separate and offer benefits with partners as there is no presence. Consequently, he bears all dangers and acquires benefits as well.

No different legitimate character:

In legitimate terms, the business and the proprietor are not treated independently as both are the one and same thing. No different legitimate element has a place with a sole owner and the proprietor is entirely and solely answerable for all business exercises and exchanges.

Progression:

As we as a whole realize that the business and the proprietor have a similar character. In this way, a sole proprietorship has altogether depended on the entrepreneur. A few variables influence a sole proprietorship, for example, retirement, craziness, demise, and detainment. In such a circumstance, the sole proprietorship puts to an end.

Control:

As all the business activities and duties lie with the sole owner, so he controls all the business solely. No other individual can participate in business exercises and the proprietor can alter or grow the business according to their solace and plans.

These are altogether highlights or characteristics or features of a sole proprietorship that will clarify what precisely the business structure and how it runs. Let us take a look at the upsides of selecting a sole proprietorship that we will write down underneath.

March 19, 2018
The Steps of Manpower Planning with Features!
Steps of Manpower Planning with Features in HRM; Manpower Planning which also calls Human Resource Planning consists of putting the right number of people, the right kind of people at the right place, the right time, doing the right things for which they are suited for the achievement of goals of the organization. Human Resource Planning has got an important place in the arena of industrialization. Human Resource Planning has to be a systems approach and carry out in a set procedure. Also learn, What is Manpower Planning? Example, with Importance.

Explain is, What is the Steps of Manpower Planning with Features?

The procedure is as follows:
- Analysing the current manpower inventory.
- Making future manpower forecasts.
- Developing employment programmes, and.
- Design training programmes.
Steps of Manpower Planning!

1. Analysing the current manpower inventory:

Before a manager makes the forecast of future manpower, the current manpower status has to analyze. For this, the following things have to note:
- Type of organization
- Number of departments
- Number and quantity of such departments
- Employees in these work units
Once these factors registering by a manager, he goes for future forecasting.

2. Making future manpower forecasts:

Once the factors affecting the future manpower forecasts know, planning can do for the future manpower requirements in several work units.

The Manpower forecasting techniques commonly employed by the organizations are as follows:
- Expert Forecasts: This includes informal decisions, formal expert surveys, and Delphi technique.
- Trend Analysis: Manpower needs can project through extrapolation (projecting past trends), indexation (using base year as the basis), and statistical analysis (central tendency measure).
- Work Load Analysis: It is dependent upon the nature of workload in a department, in a branch or in a division.
- WorkForce Analysis: Whenever production and time period has to analyze, due allowances have to make for getting net manpower requirements.
- Other methods: Several Mathematical models, with the aid of computers, are using to forecast manpower needs, like budget and planning analysis, regression, new venture analysis.
3. Developing employment programmes:

Once the current inventory comparing with future forecasts, the employment programs can frame and developed accordingly, which will include recruitment, selection procedures, and placement plans.

4. Design training programmes:

These will be based on the extent of diversification, expansion plans, development programs, etc. Training programs depend upon the extent of improvement in technology and advancement to take place. It is also done to improve upon the skills, capabilities, knowledge of the workers.

As well as Manpower planning helps in ensuring that an organization has the right kind of employees in sufficient numbers doing the right kind of job. It also makes sure that the employees doing a particular job are capable of performing the job efficiently and effectively. Coleman has described the process as “The process of determining manpower requirements and the means for meeting those requirements to carry out the integrated plan of the organization”.

The main Features of Manpower Planning are:
1. It future-oriente and involves the forecasting of manpower requirements so that these demands can fulfill with the timely and adequate supply of personnel.
2. It is a continuous process as the manpower demands of the organizations keep on changing with its needs and environment.
3. Manpower planning aims at the optimal use of the present and future workforce of the organization, thus it is requiring for getting maximum results from the investment in human resources.
4. Manpower planning involves both quantitative and qualitative aspects. While the quantitative aspects deal with the right number of people at a job, the qualitative aspect involves the search for the right kind of people for a particular job.
Manpower planning is done at both the macro level and the micro-level. It influences by environmental factors like employment rate, demographic changes, legal control, and organizational policies at the macro level, the factors like technological changes, trade union pressure, the gap in skill and competency, and recruitment and selection affect the process of manpower planning at the micro-level.

The Steps of Manpower Planning with Features; Thanks, Credit to pixaby.com/
March 17, 2018
What are the Features of Controlling Functions?
Features of Controlling Functions; Controlling is the last function of the management process which is performed after planning, organizing, staffing and directing. On the other hand, management control means the process to be adopted in order to complete the function of controlling.

Here are explain; What are the Features of Controlling Functions?

Following are the characteristics of controlling functions of management
- Controlling is an end function: A function which comes once the performances are made in-Conformities with plans.
- It is a pervasive function: which means it is performed by managers at all levels and in all type of concerns.
- Controlling is forward-looking: because effective control is not possible without past being controlled. Control always look to the future so that follow-up can make whenever to require.
- Controlling is a dynamic process: since controlling requires taking reviewal methods, changes have to be made wherever possible.
- It is related to planning: Planning and Controlling are two inseparable functions of management. Without planning, controlling is a meaningless exercise and without controlling, planning is useless. Planning presupposes controlling and controlling succeeds in planning.
Controlling has got two basic Process of Controlling:
- It facilitates coordination.
- It helps with planning.
Also, know about; What is Controlling?

Controlling consists of verifying whether everything occurs in conformities with the plans adopted, instructions issued and principles established. Control ensures that there is effective and efficient utilization of organizational resources so as to achieve the planned goals. Controlling measures the deviation of actual performance from the standard performance discovers the causes of such deviations and helps in taking corrective actions.

What are the Features of Controlling Functions? #Pixabay.

Lets reading Definitions about Controlling; According to Brech,

“Controlling is a systematic exercise which is called as a process of checking actual performance against the standards or plans with a view to ensuring adequate progress and also recording such experience as is gained as a contribution to possible future needs.”

According to Donnell,

“Just as a navigator continually takes reading to ensure whether he is relative to a planned action, so should a business manager continually take reading to assure himself that his enterprise is on the right course.”

According to Henry Fayol,

“Control consists of verifying whether everything occurs in conformity with the plan adopted, the instructions issued, and the principles”.

Important Features of Controlling:

Features of controlling could describe in the following analytical manner:
- The unique feature of controlling, and.
- Other features of controlling.
Now, explain each;

Unique Feature of Controlling:

The unique feature of control is that it is the “central-tendency point” in the performance of managerial functions i.e. a point where all other managerial functions come together and unite with one another. This is so because, while contemplating corrective action, sometimes it might be necessary to modify plans or effect changes in the organizational setting. At some other times, changes in the staffing procedures and practices might be thought fit by management for remedial reasons.

While at some junctures, management might plan to effect changes in the directing techniques of leadership, supervision or motivation, to bring performance on the right track. That is to say, that the remedial action comprised in the controlling process might embrace one or more managerial functions. Hence, controlling is designated as the central tendency point, in management theory.

Other Features of Controlling:

Some important basic features of controlling could state as under;
- Controlling makes for a bridge between the standards of performance and their realistic attainment.
- Planning is the basis of controlling; in as much as, the standards of performance are laid down in plans.
- Controlling is a pervasive management exercise. All managers, at different levels in the management hierarchy, perform this function, in relation to the work done by subordinates under their charge-ship.
- As controlling is the last managerial function, it is true to assert that it gives a finishing or final touch to the managerial job, at a particular point of time.
- Controlling is based on information feedback i.e. on the reports on actual performance done by operators. In specific terms, it could say that information is the guide to controlling; as without information feedback made available to management, analysis of the causes of deviations and undertaking remedial action are not possible.
- Action is the soul of controlling. In fact, controlling would be a futile activity; if after analyzing deviations – suitable remedial action is not undertaking by management, to bring performance, in conformity with plan standards.
- Controlling is a continuous managerial exercise. It has to undertake on a regular and continuous basis, throughout the currency of the organizational operational life.
Significances of Controlling:

The significances of the controlling function in an organization are as follows:
- Accomplishing Organisational Goals: Controlling helps in comparing the actual performance with the predetermined standards, finding out deviation and taking corrective measures to ensure that the activities are performing according to plans. Thus, it helps in achieving organizational goals.
- Judging Accuracy of Standards: An efficient control system helps in judging the accuracy of standards. It further helps in reviewing & revising the standards according to the changes in the organization and the environment.
- Improving Employee Motivation: Employees know the standards against which their performance will be judged. Systematic evaluation of performance and consequent rewards in the form of increment, bonus, promotion, etc. motivate the employees to put in their best efforts.
Boundaries of Controlling:

The defects or boundaries of controlling are as following:
- Difficulty in Setting Quantitative Standards: It becomes very difficult to compare the actual performance with the predetermined standards if these standards are not expressing in quantitative terms. This is especially so in areas of job satisfaction, human behavior and employee morale.
- No Control on External Factors: An organization fails to have control of external factors like technological changes, competition, government policies, changes in the taste of consumers, etc.
- Resistance from Employees: Often employees resist the control systems since they consider them as curbs on their freedom. For example, surveillance through CCTV (closed-circuit television).
January 13, 2017
What is Controlling? Introduction, Meaning, and Definition
What is Controlling? Introduction; Controlling is the last step of the management process but plays a crucial role without which the whole management process is incomplete. It can deﬁne as a function through which the actual and desired output are measuring. All organizations, business or non-business, face the necessity of coping with, problems of control. The relationship of Controlling with other Functions of Management.

Here are explain; What is Controlling? Introduction, Meaning, and Definition.

Like other managerial functions, the need for control arises to maximize the use of scarce resources and to achieve purposeful behavior of organization members. In the planning stage, managers decide how the resources would utilize to achieve organizational objectives; at the controlling stage; managers try to visualize whether resources are utilizing in the same way as planned.

Thus control completes the whole sequence of the management process. If the actual output differs from the desired output, the deviations are altogether removing or minimizing. There are basically two types of control mechanisms, viz. pro-active and reactive. The pro-active mechanism tries to predict future hurdles and solves them then and there. The reactive approach tries to rectify the damage done to prevent any similar loss in the future.

Definition of Controlling:

Control is any process that guides activity towards some predetermined goals. Thus control can apply in any field such as price control, distribution control, pollution control, etc. However, control as an element of management process can define as the process of analyzing whether actions are being taken as planned and taking corrective actions to make these to conform to planning. Thus control process tries to find out deviations between planned performance and actual performance and to suggest corrective actions wherever these are needed.

For example,

According to Henry Fayol,

“Control consists of verifying whether everything occurs in conformity with the plan adopted, the instructions issued, and the principles.”

Terry has defined control as follows;

“Controlling is determining what is being accomplished, that is evaluating the performance and, if necessary, applying corrected measures so that the performance takes place according to plan.”

The Main Steps in Control Function Include;
- Establishing performance standards.
- Measuring actual performance.
- Determining the gap between set standards and achieved performance.
- Taking corrective measures.
An integral activity in the controlling function is feedback. Without appropriate and valid feedback, no control measures can be successfully implemented. Feedback about a particular plan can help in identifying areas of improvement.

The Controlling Function Involves Following Activities;
- Bringing actual results nearer to the desired results.
- Improving the performance level of all activities being performed.
- Regulating the use of all the resources for achieving planned objectives and goals.
- The regulating working behavior of employees for maintaining order and discipline.
- Checking distortions and deviations taking place in occurs in conformity the system to make it more cost-effective.
If in the controlling step, there is a huge gap in the actual and desired performance, the whole management process is revising.

What is Controlling? Introduction, Meaning, and Definition, #Pixabay.

Features of Controlling:

Based on the definition of control, its following features can identify:
1. Control is forward-looking because one can control future happenings and not the past. However, on the control process always the past performance is measuring because no one can measure the outcome of a happening which has not occurred. In light of these measurements, managers suggest corrective actions for the future period.
2. Control is both an executive process and, from the point of view of the organizations of the system, a result. As an executive process, each manager has to perform the control function in the organization. It is true that according to the level of a manager in the organization, the nature, scope, and limit of his control function may different as compare to a manager at another level. The word control is also preceding by an adjective to designate a control problem, such as quality control, inventory control, production control, or even administrative control. In fact, it is administrative control, which constitutes the most comprehensive control concept. All other types of control may subsume under it.
3. Control is a continuous process. Though managerial control enables the manager to exercise control at the point of action, it follows a definite pattern and timetable, month after month and year after year on-a continuous basis.
4. A control system is a coordinated-integrated system. This emphasizes that, although data collected for one purpose may differ from those with another purpose, these data should be reconciled with one another. In a sense, the control system is a single system, but it is more accurate to think of it as a set of interlocking sub-systems.
Notes: You will come to know the deﬁnitions of all the seven Processes of Scientiﬁc Management; Planning, Organizing, Stafﬁng, Directing, Coordinating, Motivating, Controlling.
January 12, 2017
What is Risk Management?
Risk Management: What is Risk? A sudden and unexpected event leading to major unrest amongst the individuals at the workplace is called organization Risk. In other words, Risk is defined as an emergency situation which disturbs the employees as well as leads to instability in the organization. Risk affects an individual, group, organization or society on the whole.

Know and Understand the Risk Management.

Definition of Risk management: The identification, analysis, assessment, control, and avoidance, minimization, or elimination of unacceptable risks. An organization may use risk assumption, risk avoidance, risk retention, risk transfer, or any other strategy (or a combination of strategies) in proper management of future events.

Characteristics of Risk:
- The risk is a sequence of sudden disturbing events harming the organization.
- Risk generally arises on short notice.
- Risk triggers a feeling of fear and threat amongst individuals.
Risk can arise in an organization due to any of the following reasons:
- Technological failure and Breakdown of machines lead to Risk. Problems in the internet, corruption in the software, errors in passwords all result in Risk.
- Risk arises when employees do not agree with each other and fight amongst themselves. Risk arises as a result of the boycott, strikes for indefinite periods, disputes and so on.
- Violence, thefts, and terrorism at the workplace result in organization Risk.
- Neglecting minor issues, in the beginning, can lead to major Risk and a situation of uncertainty at the workplace. The management must have complete control of its employees and should not adopt a casual attitude at work.
- Illegal behaviors such as accepting bribes, frauds, data or information tampering all lead to organization Risk.
- Risk arises when the organization fails to pay its creditors and declares itself a bankrupt organization.
The art of dealing with sudden and unexpected events which disturb the employees, an organization as well as external clients refer to Risk Management.

The process of handling unexpected and sudden changes in organizational culture is called Risk management.

Need for Risk Management:
- Risk Management prepares individuals to face unexpected developments and adverse conditions in the organization with courage and determination.
- Employees adjust well to the sudden changes in the organization.
- Employees can understand and analyze the causes of Risk and cope with it in the best possible way.
- Risk Management helps the managers to devise strategies to come out of uncertain conditions and also decide on the future course of action.
- Risk Management helps the managers to feel the early signs of Risk, warn the employees against the aftermaths and take necessary precautions for the same.
What is Risk Management? #Pixabay.

Essential Featured of Risk Management:
- Risk Management includes activities and processes which help the managers as well as employees to analyze and understand events which might lead to Risk and uncertainty in the organization.
- Risk Management enables managers and employees to respond effectively to changes in the organizational culture.
- It consists of effective coordination amongst the departments to overcome emergency situations.
- Employees at the time of Risk must communicate effectively with each other and try their level best to overcome tough times. Points to keep in mind during Risk
- Don’t panic or spread rumors around. Be patient.
- At the time of Risk, the management should be in regular touch with the employees, external clients, stakeholders as well as media.
- Avoid being too rigid. One should adapt well to changes and new situations.
Risk management is the identification, assessment, and prioritization of risks (defined in ISO 31000 as the effect of uncertainty on objectives) followed by coordinated and economical application of resources to minimize, monitor, and control the probability and/or impact of unfortunate events or to maximize the realization of opportunities. Risk management’s objective is to assure uncertainty does not deflect the endeavor from the business goals.

Risks can come from various sources including uncertainty in financial markets, threats from project failures (at any phase in design, development, production, or sustainment life-cycles), legal liabilities, credit risk, accidents, natural causes and disasters, deliberate attack from an adversary, or events of uncertain or unpredictable root-cause. There are two types of events i.e. negative events can be classified as risks while positive events are classified as opportunities.

Several risk management standards have been developed including the Project Management Institute, the National Institute of Standards and Technology, actuarial societies, and ISO standards. Methods, definitions, and goals vary widely according to whether the risk management method is in the context of project management, security, engineering, industrial processes, financial portfolios, actuarial assessments, or public health and safety.
December 13, 2016
Income Tax Explained
Discover the key features of the Income Tax Act 1961. Get insights into the provisions for exemptions, deductions, rebates, and reliefs.

Income Tax Explained: Key Concepts and Regulations

The Income Tax Department functions under supervision and control of the Central Board of Direct Taxes (CBDT). It has around 60,000 personnel located in more than 500 cities and towns across the country. The field offices are divided into regions, and each region is headed by a Chief Commissioner of Income Tax. Every region is assigned annual performance targets, such as revenue collections, and is provided with necessary expenditure budget to meet its operating expenses. Right to Information

The Income Tax Act 1961 lays down the framework or the basis of charge and the computation of total income of a person. It also stipulates the manner in which it is to be brought to tax, defining in detail the exemptions, deductions, rebates and reliefs. The Act defines Income Tax Authorities, their jurisdiction and powers It also lays down the manner of enforcement of the Act by such authorities through an integrated process of assessments, collection and recovery, appeals and revisions, penalties and prosecutions. The Act is fast changing and dynamic in nature and undergoes amendments annually through the Finance Act.

How to Prepare Income Tax by Tally ERP?

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What is Income Tax?

It is a tax imposed by the government on the income earned by individuals and businesses within its jurisdiction. It is one of the primary sources of revenue for the government and is used to fund various public services and infrastructural development projects.

Types of Income Taxes
1. Individual Tax: Levied on the income of individuals. This includes wages, salaries, bonuses, and other forms of earnings.
2. Corporate Tax: Imposed on the profits of corporations and businesses.
3. Capital Gains Tax: Charged on the profit from the sale of assets or investments.
4. Payroll Tax: Deducted directly from an employee’s salary and used to fund social security and Medicare.
5. Inheritance Tax: Imposed on individuals who inherit estate or money following the death of the owner.
Examples of Income Tax Considerations
- Exemptions: Specific incomes or entities are not subject to tax. For example, agricultural income in certain jurisdictions.
- Deductions: Amounts that can be subtracted from gross income to determine taxable income, such as mortgage interest or charitable contributions.
- Rebates: Refunds given to taxpayers when the tax paid exceeds the tax liability.
- Reliefs: Reductions in tax liability granted to certain categories of taxpayer expenses, like healthcare costs.
Importance of Income Taxes

They are crucial for several reasons:
1. Funding Government Operations: Provides revenue for the government to function and deliver public services.
2. Economic Redistribution: Helps in redistributing wealth through progressive taxation systems.
3. Public Investments: Supports public infrastructure like roads, schools, and hospitals.
4. National Defense: Finances military and security forces.
5. Social Services: Ensures funding for social welfare programs such as unemployment benefits, pensions, and healthcare.
Advantages of Income Taxes
1. Revenue Generation: Provides a steady and substantial source of government funding.
2. Equitable Distribution: Progressive tax rates help in reducing income inequality.
3. Economic Stability: Government can influence economic growth and stability through tax policies.
4. Social Welfare: Enables the funding of essential public services and social programs.
Disadvantages of Income Taxes
1. Compliance Costs: Filing taxes can be complex and costly for taxpayers.
2. Evasion: High tax rates can lead to tax evasion and underreporting of income.
3. Economic Impact: High-income taxes can discourage entrepreneurship and investment.
4. Disincentives: High tax rates might reduce incentives to work harder or earn more.
In summary, while income taxes are essential for funding government operations and fostering economic stability, they come with their own set of challenges, including the potential for tax evasion and economic disincentives. Effective tax policy must balance these advantages and disadvantages to ensure fair and efficient taxation.

Why Do We Have To Pay Income Taxes?

They are fundamental to the functioning of modern governments and the provision of essential public services. Here are several reasons why we have to pay taxes:
1. Funding Government Operations:
  
  They provide the primary source of revenue for the government, enabling it to finance its daily operations. This includes paying salaries for public employees, maintaining government buildings, and running various governmental departments.
2. Public Services:
  
  The revenue from income taxes funds a wide range of public services that benefit society as a whole. This includes education, healthcare, public safety, transportation infrastructure, and social services like unemployment benefits and pensions.
3. National Defense:
  
  Taxes are critical for funding a country’s defense and security. This includes the military, law enforcement agencies, and other national security operations.
4. Economic Stability:
  
  They enables the government to manage economic stability and promote economic growth. By adjusting the tax rates and rebates, the government can influence spending and investment in the economy.
5. Distribution of Wealth:
  
  Progressive income taxation helps in redistributing wealth more evenly across the society. It ensures that those who earn more contribute more to the public funds, which can be used to assist those with lower incomes.
6. Reduction of Fiscal Deficit:
  
  They help in reducing the fiscal deficit, which is the difference between the government’s expenditures and its revenues. A lower fiscal deficit can lead to lower national debt and lower interest payments on that debt.
7. Public Investment:
  
  They revenue is crucial for funding public investments in infrastructure, research and development, education, and other areas that are vital for long-term economic growth and development.
In summary, paying income taxes is a civic duty that supports the functioning and development of the country, ensuring everyone has access to basic amenities and contributing to the overall economic health and stability.
October 23, 2016