Tag: Objectives

  • Meaning, Definition, Benefits, and Objectives of Career Planning

    Meaning, Definition, Benefits, and Objectives of Career Planning

    Career Planning; Career planning encourages individuals to explore and gather information, which enables them to syn­thesize, gain competencies, make decisions, set goals and take action. Meaning: Career is seen as a collection of bunch or jobs or posts. Generally, it describes an applies career path within the organization’s structure. It shows the development path of key personnel within the organization. The derivation of the word derived from the Latin word carrier, which means running. Do you study to learn: If Yes? Then read the lot. Let’s Study: Meaning, Definition, Benefits, and Objectives of Career Planning. Read this in the Hindi language: करियर योजना का अर्थ, परिभाषा, लाभ, और उद्देश्य। 

    The concept of Career Planning Discussing the topic: Meaning, Definition, Benefits, Process, Features, and Objectives of Career Planning.

    All the jobs, which are organized together during the working life of someone, make careers. It is also seen as a sequence of posts organized by a person during his employment. Edwin B. Flipo defined a career as a sequence of different but related work activities that provides continuity, order, and meaning in a person’s life. As well as, a career can be seen as the amalgamation of change in value, attitude, and motivation because it gets old. This concept constitutes the subjective element of “careers”.

    Definition of Career Planning:

    Career planning is the process of enhancing an employee’s future value. A career plan is an individual’s choice of occupation, organization and career path.

    A career may define as,

    “A sequence of jobs that constitute what a person does for a living.”

    According to Schermerborn, Hunt, and Osborn,

    “Career planning is a process of systematically matching career goals and individual capabilities with opportunities for their fulfillment.”

    Career planning encourages individuals to explore and gather information, which enables them to syn­thesize, gain competencies, make decisions, set goals and take action. It is a crucial phase of human resource development that helps the employees in making a strategy for work-life balance.

    Below described several themes underlying different definition of a career as:

    1] The property of occupation or organization:

    In this way, the career describes the occupation itself or an employee’s tenure within an organization.
    Advancement: It denotes the progression and increase in success an individual receives within an occupation or organization.

    2] Status of a profession:

    In this sense, a career uses to distinguish different professions. Such as engineering, the medical profession is different from other occupations like plumbing carpentry, etc. The former says to have a career where the latter does not have.

    3] Involvement in one’s work:

    Sometimes the career use in a negative sense to describe being extremely involved in the task or job one is doing.

    4] Stability of a person’s work pattern:

    Career describes a sequence of related jobs. While a sequence of unrelated jobs does not describe career.

    Career is often defined as both an external career and an internal career. External career is defined as objective categories used by a given society and different organizations to describe the progression of steps of the different occupations. Whereas an internal career involves the set of steps and stages that make up an individual’s concept of career progression in a given occupation.

    Due to two different approaches, in the organizational context, career is considered as an integrated pace of both vertical and lateral movements of an individual in occupation during the span of his employment. Such an integrated approach is intended to minimize diversity of hopes and expectations of employees by obtaining a match between individually perceived careers with that of organizational centered careers.

    Benefits of career planning:

    The following benefits are given below:

    • The career plan ensures the continuous supply of promotional employees.
    • It helps in improving employee loyalty.
    • Career planning encourages the development and development of the employee.
    • Discourages the negative attitude of senior officials who interest in suppressing the development of subordinates.
    • This ensures that senior management knows the capacity and capacity of those employees who can move upwards.
    • It can always make a team of employees ready to meet any contingency.
    • Career planning reduces the labor business.
    • Each organization prepares the successor plan on which the career plan is the first step.

    The process of career planning:

    Career plans involve different activities for successful organizations and generally include the following steps.

    1] Identifying personal needs and aspirations:

    Most individuals do not have a clear-cut about their career aspirations, anchors and goals. Therefore, human resources professionals should help an employee in this direction and provide as much information as possible. Keeping in mind their skills, experience, and ability, they are shown such work, which will make them the most suitable. Workshops, seminars can also arrange to enhance such support with psychological testing, simulation exercises. Such a practice is basically to help create a clear view of the career of a chosen business within a company.

    Workshops and seminars promote employee interest in career planning, as it helps employees to determine their career goals, identify career paths and highlight specific career development activities. Printed and other types of information can also provide to complement individual efforts. Also, helping employees better, organizations create data banks or skills and talent lists, which include career history, skill evaluation, and information about their employees’ career priorities.

    2] Analyzing career opportunities:

    Once you know the career requirements and the aspirations of the employees, the organization determines the career path for each situation, which clearly shows career progression prospects. It points to different situations, a good artist can catch in a period. Career paths change over time, according to the needs of the employee and organizational needs.

    3] Aligning needs and opportunities:

    After identifying the needs of the employees and their career opportunities, the next step is to align the former with the former. This process involves identifying the ability of employees and then starting a career development program. The efficiency of the staff can demonstrate a thorough evaluation.

    This will know the employees who need further training, who can take additional responsibilities, etc. Some development techniques are used to consider employee’s information and skills in an employee capacity. It includes special assignments, schematic position rotation, supervisory coaching, job enhancement, weak program, etc.

    4] Action plans and periodic reviews:

    After starting the above steps, it is necessary to review the whole items from time to time to highlight the gap. These intervals have to be a bridge through personal career development efforts and from time to time supported organizations.

    Periodic review will help employees know the direction in which it is moving, whether the change is sought, what kind of skills required to face new and emerging organizational challenges. Organizations also find out how employees are doing, their goals and aspirations, and what career paths are in line with personal needs and serve the whole corporate.

    Features of Career Planning:

    The following features of career planning are below:

    1] Process:

    Career planning is an ongoing process of developing human resources. It is neither an event nor a program.

    2] Upward movement:

    It involves upward movement in the organizational hierarchy. It could also be special assignments, completing a project that requires better skills and abilities to handle recurring problems.

    3] Mutuality of Interest:

    Career plans serve a mutuality of interest. It serves the individual’s interest by taking care of his needs and aspirations to the required extent. Simultaneously it serves the organization’s interest as the human resources of an organization provide the opportunity to develop and contribute to the organization’s goals for the fulfillment of its objectives to the best of their ability and confidence.

    4] Dynamic:

    The dynamic nature of career planning is to cope and adjust to the ever-changing environment.

    Objectives of Career Planning:

    Career planning aims at matching individual potential for promotion and individuals aspirations with organizational needs and opportunities. Career planning is making sure that the organization has the right people with the right skills at the right time. It opens avenues for growth to higher levels of responsibilities for every employee of the organization through the hierarchy of position, and training and development activities to equip the individuals with the requisites for succession.

    Generally, Career Planning aims at fulfilling the following objectives:

    • It provides and maintains appropriate human resources in an organization by offering careers, not jobs.
    • It creates an able environment of effectiveness, efficiency, and growth.
    • Maps out careers of different categories of employees, following their ability and willingness to “train and develop” to take the responsibility of higher positions.
    • It seeks to maintain a stable workforce within an organization by controlling absenteeism and reducing employee turnover.
    • Caters to the immediate and future human resource needs of the organization at the appropriate time.
    • Increases the proper utilization of managerial reserves within the organization.

    The major objectives of career planning are as follows:

    • To identify the positive characteristics of the employees.
    • Develop awareness about each employee’s uniqueness.
    • To respect the feelings of other employees.
    • To attract talented employees to the organization.
    • Train employees towards team-building skills.
    • To create healthy ways of dealing with conflicts, emotions, and stress.

    Understand career planning:

    Since both the person and the organization interest in one’s career, the career plan itself is an intentional process to be aware of the current obstacles with available opportunities, alternative options, and sequences. As well as, it involves identifying targets related to careers to provide the right direction, appropriate time and sequence for achieving a specific career goal and doing work education and related development practice.

    Essentially, career planning helps employees plan for their careers in terms of their capabilities and competencies in terms of organizational needs. It is related to developing the organizational system of career movement and development. This gives opportunities for any person to progressive and continuously from an entry point of his employment at the point of his retirement. It has also been described as the process of synthesizing and reconcile the organization’s needs with the innate aspirations of the employees so that afterward, realize the self-fulfillment and improve the effectiveness of the former.

    Extra Things:

    Career planning is an ongoing process by which a person determines their career goals and identifies the means and methods of achieving them. The way people plan their life’s work, they consider a career plan. It inspires someone to explore, choose and endeavor to achieve satisfaction with the purpose of a person’s career. Therefore a person’s life is important.

    The effective career plan is about finding a suitable job that corresponds to the life of a person. The Career Plan answers the question, where are the possibilities of going forward and growing in the organization for a person to be in the organization after five years or ten years or to build the realm of someone’s career. Career planning is neither an event nor an end. Also, it is a continuous process for human resources development and an essential aspect of managing people to achieve optimal results.

    Why is the need for Career planning for employees?

    The need to plan for employee careers is due to both economic and social power. In an ever-changing environment, the human resources of the organization should be in a constant state of development and should be there. A planned program of internal human resources development pays more than relieving external recruitment for recruitment. At the top, many employees retire at the job when there is no managerial concern for proper career progression.

    Apart from this, employees of Millennium Day insist and hope that their work expects to integrate effectively with human needs for personal development, together with family expectations, meet the ethical requirements of the society. However, it is most ironic that, as far as the work is concerned, what is the most valuable for the person, the career is, the organization gets the least attention. As well as, most organizations do not pay enough attention to this important aspect of actual practice for various reasons. As a result, the demand for employees does not match adequately with systematic arrangements.

    More knowledge:

    Career planning is an indispensable condition for effective human management to achieve optimum productivity, for organizational development and development, keeping in mind the increasing expectations and aspirations of changing scenarios of the social and economic environment and employees. Generally, a person applies for the job in the organization after making necessary inquiries about job prospects and after taking a job, he starts inquiring about job prospects and future potential situation.

    Disadvantaged of satisfactory answers, a person feels motivated and frustrated and starts looking out of the organization in search of any other possible job. Generally, this is a normal situation for individuals with senior supervisory, executive and managerial positions. As well as, employees holding such a position are curious to know that they can grow in their current positions, organization and when. To attract and maintain competent personnel for senior positions in an organization, they must be assured of a progressive career.

    Thus, career planning has become necessary to prevent such personnel from managing the organization with skilled supervisors, high technical and managerial personnel to manage an organization and the lack of promotional routes. Productive employees want to seek careers instead of short-term jobs. Also, a career scheme, if properly designed and implemented, benefits management and employees and its absence makes a big difference for both the employees and the organization. Read this in the Hindi language: करियर योजना का अर्थ, परिभाषा, लाभ, और उद्देश्य। 

    Meaning Definition Benefits and Objectives of Career Planning
    Meaning, Definition, Benefits, and Objectives of Career Planning.
  • Meaning, Definition, and Objectives of Career Management

    Meaning, Definition, and Objectives of Career Management

    Career Management; A common way of career action is by choosing a person to proceed through the life of his employment. It can represent as a person whom a person has organized for so many years. Career management is the engagement plan of someone’s activities and attachments in the work done during his life for better fulfillment, development and financial stability. This is a sequential process that starts with understanding itself and involves business awareness. Do you study to learn: If Yes? Then read the lot. Let’s Study Meaning, Definition, and Objectives of Career Management. Read this in the Hindi language: करियर प्रबंधन का अर्थ, परिभाषा, और उद्देश्य। 

    The concept of Career Management Discussing the topic: Meaning, Definition, Benefits, Objectives, and Elements of Career Development.

    Many people feel satisfied by achieving their career goals. Also, others have a strong sense that their career, their life, and their abilities have become incomplete. Employers’ employees also have a profound impact on their careers. Some organizations have formal career management procedures, while others worry very little about it. Career management is defined as the ongoing process of preparation, implementation, and monitoring of career plans. It can do either by a person alone or there may a consolidate activity with the organization’s career system.

    Meaning and Critical Concept of Career Management:

    Career management is a process that enables employees to better understand, develop and give direction to their career skills and to effectively utilize those skills and interests both within and outside the organization. Specialized career management activities provide realistic career-oriented assessment, post open jobs and offer formal career development activities.

    Career development involves the lifespan series of activities that contribute to a person’s career exploration, establishment, development, success, and fulfillment. Career planning is a deliberate process by which a person becomes aware of his skills, interests, motivation, knowledge and other such characteristics. He also receives and receives information about opportunities and options, identifies career goals and establishes action plans to achieve specific goals.

    Career management and career planning activities are complementary and can strengthen each other. Career management can also consider a lifelong, self-monitoring process of a career plan. It involves choosing and setting individual goals and preparing strategies for achieving them.

    The Concept of Career Management:

    However, in an organizational context, the focus is on taking action to meet the estimated human resources requirements.

    • A person’s career is the only source of natural expression of self. A school of thought describes the purpose of life and the work of someone’s manifestation and the purpose of existence or existence. Still, others believe that there is a big difference between a person’s career and his life. In any case, careers are an integral part of one’s life and hence its management is needed.
    • Career management is more or less like organizational management; There is no classification of individuals after all organizations! The process of career management starts with the construction of goals and objectives, which are short-lived or for short-term achievement.
    • This is a difficult task compared to a long-term career goal, which is more or far-sighted. Since the objective is short-term or immediate, it is verb-oriented. Second, it demands every moment, every moment of achievement. Then this step can be very difficult for those who are not aware of available opportunities or are not fully aware of their talents. However, more specific, measurable and achievable goals are likely to have more and more fruit plan management plans.
    • A well-prepared strategy is needed to achieve the goal, which means the action plan to achieve the goal. After this, it will have to draft or establish rules that govern procedures/policies/norms or rules or procedures.
    • The final step in the career management process is to evaluate the career management plan to ensure that progress is being made or if there is a need for some changes later.

    Benefits of Career Management:

    The following benefits below are;

    1] Staffing List:

    Effective Career Management ensures the continuous supply of professional, technical and managerial talent to meet an organizational goal.

    2] Staffing from within:

    Most organizations prefer to promote employees from within the available positions due to many potential benefits. To recruit from within, it requires a strong career management program, which ensures effective performance in the effective new job of employees.

    3] Resolving employees problems:

    Effective career management can act as a measure of some employees’ problems. Employee business rates can reduce due to the sense of the existence of opportunity within the organization. It may be easy to go for recruits because the company develops its employees and provides better career opportunities.

    4] The satisfactory employee needs:

    The present generation of employees is very different from those of the previous generation who are in the set of their needs. Then higher levels of education have raised expectations of their career and many employees are directly responsible for providing better opportunities to achieve their career expectations.

    5] Advanced Motivation:

    As progress with career path is directly related to job performance, one employee can motivate and can perform at the top level to meet career goals.

    6] Employment Equity:

    Effective Career Management Demands Try to eliminate fair and equitable recruitment, selection and appointment and discrimination against publicity and career mobility. Such positive programs have formal provisions which help in increasing the career mobility of women and other minority groups, which emphasize job equity.

    Objectives of Career Management:

    Career management programs include a large number of these human resource management practices with the following objectives:

    1] Assisting employees to improve their performance:

    Career management programs try to involve employees in setting their goals and identifying their strengths and weaknesses. It helps with the identification and convenience of the training needs and opportunities of the employees. This is achieving primarily by building the process of reaction and discussion in the performance management system of the institutions.

    2] Explain the available career options:

    Through career management programs, employees are informing about career options available within the institute. It helps the employees with the recognition of the skills and other qualities required for current and future jobs.

    Most Career Management programs want to focus on the employees’ career plans at the institute, thereby increasing their commitment to the organization. In doing so, career paths are developing which indicates the mobility in the various directions in the Institute for the employees.

    3] Align the aspirations of employees with organizational objectives:

    Many organizations strive to help employees in their career plans through career management programs. Career management programs now want to improve the job matching with the right staff. Evaluating the skills and competencies of the employees can help them adjust to those positions which make them better suited.

    Through the application of practices such as transfer and rotation, the operational effectiveness of an institution can improve. As a result of career management programs, the need for external recruitment can also reduce as the employees with the necessary abilities have come to know through their career planning activities.

    From the perspective of the employer, the objective of your Career Management program should be to ensure the availability of capable and skilled employees within your organization.

    Elements of Career Management:

    The following three elements are common to most career management programs:

    1] Career Planning:

    Career planning is a deliberate process to be aware of the opportunities, obstacles, options, and goals related to careers and the identification of programming work, education and related development experiences, to achieve specificity, direction, time and Sequence can provide.

    The goal of becoming something in life. Career planning is also a process done by employees and their supervisors. The employee is responsible for self-assessment, identifies career interests and needs for development. As part of the self-assessment process, the employee analyzes his skills and weaknesses, along with his strengths and weaknesses.

    Career planning is also more effective when done by an individual and organization jointly. There is a stake in the organization’s successful career plan. Because of the continuous supply of adequate training people are required to do jobs at every level of the organization.

    2] Career Path:

    Based on the career expectations identified in the career planning process, potential career paths are mapping to employees. Career path sets a sequence of posts for which employees can promote, moved and rotated. However, it should note that each employee may have a crowd of career pathing options.

    The career path should establish an organization’s career development system. The existence of such career paths communicates employees with specific step-by-step objectives and identifies the potential role model in the organization. In establishing a career path, employees and their supervisors should be realistic in terms of their ability and time limits. In which career goals can achieve in career paths.

    3] Career Development:

    Career Development refers to a planned effort to connect the person’s career needs with the workforce requirements of the organization. It can see as a process to help in organizing a career in musicians with business needs and strategic direction of the organization. It is also important to note that, with the concept of alignment between the person and the organization, career development is a continuous process. One of the roles of the organization is to provide training and development opportunities to meet the needs of the movement with the career path.

    While these three elements are identifying as different practices, they complement each other during the career management process and inform. Also, to choose any career path, you can use the services of different career evaluation tests at different stages. Which are in line with the likes and dislikes, strengths and weaknesses. These tests are from those people who are small and short, providing complete details of minutes. Some tests have multiple intelligence between MBTY (Myers and Briggs Type Indicator), SDI (Strength Deployment List) and others.

    The job of career management is more on the personal self than the employer. Ensuring personal development in terms of skills, competencies, changes in attitude over time, things may need to take care of someone. There is a need to complete and evaluate short-term goals. There is a need to revise long-term career goals with changes in employment scenario and self; Organizations cannot or may not worry on a large scale or combine your priorities with careers and lives. Often counseling is helpful to evaluate the job and prospects and to establish the clarity of values because they make changes with time. Read this in the Hindi language: करियर प्रबंधन का अर्थ, परिभाषा, और उद्देश्य। 

    Meaning Definition and Objectives of Career Management

  • Marketing Management Meaning, Characteristics, and Objectives

    Marketing Management Meaning, Characteristics, and Objectives

    Meaning: Marketing management facilitates The activities and functions which are involved in the distribution of goods and services. Marketing Management Meaning, Characteristics, and Objectives. Their sales plan to a greater extent rest upon the requirements and motives of the consumers in the market. This objective, the organization has to pay heed to the right pricing, effective advertising and sales promotion, distribution and stimulating the consumers through the best services.

    You are one of a Seller or Buyer in Market, So let’s know Marketing Management of Meaning, Characteristics, and Objectives. With Meaning and Definition.

    What is Marketing Management? Marketing management signifies an important functional area of the business manager responsible for the flow of goods and services from the producers to the consumers. It is accountable for planning, organizing, directing, coordinating, motivating and controlling the marketing activities. The types of Product in Marketing Management! In effect, it is the demand management under customer-oriented marketing philosophy.

    Meaning of Marketing Management:

    Marketing management is the management of the crucial and creative task of delivering consumer satisfaction and thereby earning profits through consumer demand. It is the performance of managerial functions of planning, execution, coordination, and control in relation to the marketing functions of marketing research, product planning and development, pricing, advertising, selling and distribution with a view to satisfying the needs of the consumer, business and society. The above expressions bring home very clearly the very substance of marketing management as a matter of planning, implementing and controlling the marketing programmes.

    Marketing management is the marketing concept in action. It includes all activities which are necessary to determine and satisfy the needs of consumers. To be very simple, marketing management sets marketing objectives, develops marketing plans, organizes marketing functions, puts marketing plans and strategies in action and monitors the marketing programmes in the final analysis. Effective marketing management requires the ability and skill of the highest order.

    It warrants close appreciation of the consumer and an understanding of forces of change which are at work in the environment and which have the deep-rooted impact on consumer buying habits and motives. It calls for fertile imagination and creative skill in planning to meet the changing conditions of the marketplace; it also requires skills of coordinating and controlling the wide-spread and complex activities of a dynamic organization. The prime purpose of marketing management is to know the consumer so well that the firm is able to offer him or her products and services to which the consumer remains loyal and the new consumers keep on coming at increasing level.

    Definition of Marketing Management:

    According to Philip Kotler, “Marketing management is the analysis, planning, implementation and control of programmes designed to bring about desired exchanges with target markets for the purpose of achieving organizational objectives. It relies heavily on designing the organizations offering in terms of the target markets needs and desires and using effective pricing, communication, and distribution to inform, motivate and service the market.”

    Marketing management is concerned with the chalking out of a definite programme, after careful analysis and forecasting of the market situations and the ultimate execution of these plans to achieve the objectives of the organization. Marketing management is “The art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value” by Kotler and Keller.

    Features or Characteristics of Marketing Management:

    Some of the main points characteristics of marketing management are as follows:

    Customer-Orientation:

    All business activities should be directed to create and satisfy the customer. Emphasis on the needs and wants of consumers keeps the business on the right track. All marketing decisions should be made on the basis of their impact on the customer. The consumer becomes the guise of business. Also, learn Explaining Product Development in Production Management.

    Marketing Research:

    Under the marketing concept; knowledge and understanding of customer’s needs want and desires is very vital. Therefore, a regular and systematic marketing research programme is required to keep abreast of the market. In addition, innovation and creativity are necessary to match the products of requirements of customers.

    Marketing research is “the process or set of processes that link the producers, customers, and end users to the marketer through information used to identify and define marketing opportunities and problems; generate, refine, and evaluate marketing actions; monitor marketing performance; and improve understanding of marketing as a process. Marketing research specifies the information required to address these issues, designs the method for collecting information, manages and implements the data collection process, analyzes the results, and communicates the findings and their implications.” by Wikipedia.

    Up-to-date and adequate knowledge must be available to answer the following questions:

    • What business are we really in?
    • Who are our customers?
    • What do the customers want?
    • How should we distribute our products?
    • How can we communicate most effectively with our customers?’
    Marketing Planning:

    The marketing concept calls for a goal-oriented approach to marketing. The overall objectives of the firm should be the earning of profits through the satisfaction of customers. “A marketing plan may be part of an overall business plan. Solid marketing strategy is the foundation of a well-written marketing plan. While a marketing plan contains a list of actions, without a sound strategic foundation, it is of little use to a business” by Wikipedia. On the basis of this goal, the objectives and policies of marketing and other departments should be defined precisely. Marketing planning helps to inject the philosophy of consumer-orientation into the total business systems and serves as a guide to the organization’s efforts.

    Integrated Marketing:

    Once the organizational and departmental goals are formulated, it becomes necessary to harmonize the organizational goals with the goals of the individuals working in the organization. The activities and operation of various organizational units should be properly coordinated to achieve the defined objectives. The marketing department should develop the marketing mix which is most appropriate for accomplishing the desired goals through the satisfaction of customers.

    Customer Satisfaction:

    “Customer satisfaction is a term frequently used in marketing. It is a measure of how products and services supplied by a company meet or surpass customer expectation” by Wikipedia. The aim should be to maximize profit over the long run through the satisfaction of customers wants.

    Aim or Objectives of Marketing Management:

    In the light of this statement, we can highlight the aim’s of marketing management as follows:

    • Creation of Demand: The marketing management’s first objective is to create demand through various means. A conscious attempt is made to find out the preferences and tastes of the consumers. Goods and services are produced to satisfy the needs of the customers. Demand is also created by informing the customers about the utility of various goods and services.
    • Customer Satisfaction: The marketing manager must study the demands of customers before offering them any goods or services. Selling the goods or services is not that important as the satisfaction of the customers’ needs. Modern marketing is customer- oriented. It begins and ends with the customer.
    • Market Share: Every business aims at increasing its market share, i.e., the ratio of its sales to the total sales in the economy. For instance, both Pepsi and Coke compete with each other to increase their market share. For this, they have adopted innovative advertising, innovative packaging, sales promotion activities, etc.
    • Generation of Profits: The marketing department is the only department which generates revenue for the business. Sufficient profits must be earned as a result of the sale of want-satisfying products. If the firm is not earning profits, it will not be able to survive in the market. Moreover, profits are also needed for the growth and diversification of the firm.
    • Creation of Goodwill and Public Image: To build up the public image of a firm over a period is another objective of marketing. The marketing department provides quality products to customers at reasonable prices and thus creates its impact on the customers.
    • Creating Customers: A business firm is established to sell a product or service to customers. Therefore, the customer is the foundation of a business. It is the customer who provides revenue to business and determines what an enterprise will sell. Creating customers means exploring and identifying the needs and requirements of customers. If a firm is to go and stay in business, it must create new customers. It should analyze and understand their wants.
    • Satisfying Customers Needs: Creating customer is not enough. Business should develop and distribute products and services which meet the requirements of customers to their satisfaction. If customers are not satisfied, the business will not be able to generate revenues to meet its costs and to earn a reasonable return on its capital. Satisfying customers does not simply mean matching products with customers’ needs. It also requires the regular supply of goods and services of reasonable quality at fair prices.

    The marketing manager attempts to raise the goodwill of the business by initiating image-building activities such a sales promotion, publicity and advertisement, high quality, reasonable price, convenient distribution outlets, etc. The objectives of marketing management have been obtained from the overall objectives of the business. The overall aim of the business is to create, develop and serve society with other things. Marketing management can contribute to the achievement of these objectives by developing and distributing those objectives and services that meet the needs of the customers and benefit the business enterprise.

    Summary: Marketing Management Meaning, Characteristics, and Objectives.

    What is Marketing Management? Explains.

    1. Meaning of Marketing Management.

    2. Definition of Marketing Management.

    3. Features or Characteristics of Marketing Management, and:

    • Customer-Orientation.
    • Marketing Research.
    • Marketing Planning.
    • Integrated Marketing, and.
    • Customer Satisfaction.

    4. Objectives of Marketing Management:

    • Creation of Demand.
    • Customer Satisfaction.
    • Market Share.
    • Generation of Profits.
    • Creation of Goodwill and Public Image.
    • Creating Customers, and.
    • Satisfying Customers Needs.

    Marketing Management Meaning Characteristics and Objectives

  • The Project is explained in Features, Characteristics, and Objectives

    The Project is explained in Features, Characteristics, and Objectives

    A Project is an activity to make something unique. Of course, many office buildings are Built-in many respects, but each individual feature is unique in its own way. The Project is explained in Features, Characteristics, and Objectives. One person or organization involved in projects need to understand how to solve the complexity of problems through project management. In this article, we will define the word “project”, describe the key features of a project, and explain the way to separate a project from an activity.

    The Project has explained in some points Nature, Features, Characteristics, and Objectives.

    What is a Project? Meaning, Definition, and Nature.

    The project is a great opportunity for organizations and individuals to achieve their business and non-business objectives more efficiently through implementing change. Projects differ from other types of work (e.g. process, task, procedure). Meanwhile, in the broadest sense, a project is defined as a specific, finite activity that produces an observable and measurable result under certain preset requirements. Projects help us make desired changes in an organized manner and with reduced probability of failure.

    It is an attempt to implement the desired change in an environment in a controlled way. “A Project is a temporary, unique and progressive attempt or endeavor made to produce some kind of a tangible or intangible result (a unique product, service, benefit, competitive advantage, etc.). It usually includes a series of interrelated tasks that are planned for execution over a fixed period of time and within certain requirements and limitations such as cost, quality, performance, others.” By using projects we can plan and do our activities, For Example: build a garage, run a marketing campaign, develop a website, organize a party, go on vacation, graduate a university with honors, or whatever else we may wish to do.

    According to the PMBOK (Project Management Body of Knowledge), A project is defined as a “temporary endeavor with a beginning and an end and it must be used to create a unique product, service or result”. Further, it is progressively elaborated. What this definition of a project means is that projects are those activities that cannot go on indefinitely and must have a defined purpose. A project is an activity to meet the creation of a unique product or service and thus activities that are undertaken to accomplish routine activities cannot be considered projects.

    A project is defined as “A non-routine, non-repetitive one-off undertaking normally with—discrete time, financial and technical performance goals.” The definition is descriptive and, because of the endless variety of projects, most of the definitions are of this nature.

    A project can consider being any series of activities and tasks that:

    • Have a specific objective to be completed within certain specifications.
    • Have defined start and end dates.
    • Have funding limits (if applicable), and.
    • Consume resources (i.e. money, time, equipment).

    The Project is explained, Definition of a Project:

    The project starts from scratch with a definite mission, generates activities involving a variety of human and non-human resources, all directed towards the fulfillment of the mission and stops once the mission is fulfilled.

    According to the Project Management Institute, USA, “a project is a one-set, time-limited, goal-directed, major undertaking requiring the commitment of varied skills and resources”.

    It also describes a project as “a combination of human and non-human resources pooled together in a temporary organization to achieve a specific purpose”. The purpose and the set of activities which can achieve that purpose distinguish one project from another.

    “A project consists of a combination of organizational resources pulled together to create something that did not previously exist and that will provide a performance capability in the design and execution of organizational strategies.”
    “A project is a temporary process undertaken to create one or a few units of a unique output or product or service whose attributes are progressively delineated in the course of the project’s execution.”

    The Project is explained – Second point, Characteristics or Features of a Project:

    The characteristics or features of a project are as follows:

    • Objectives: A project has a fixed set of objectives. Once the objectives have been achieved, the project ceases to exist.
    • Life-cycle: A project has a life cycle reflected by growth, maturity, and decay. It has naturally a learning component.
    • Uniqueness: No two projects are exactly similar even if Die plants are exactly identical or are merely duplicated. The location, the infrastructure, the agencies, and the people make each project unique.
    • Change: A project sees many changes throughout its life while some of these changes may not have any major impact; they can be some changes which will change the entire character of course of the project.
    • Life Span: A project cannot continue endlessly. It has to come to an end. What represents the end would normally be spelled out in the set of objectives.
    • Single entity: A project is one entity and is normally entrusted to one responsibility center while the participants in the project are many.
    • Team-work: A project calls for team-work. The team again is constituted of members belonging to different disciplines, organizations, and even countries.
    • Made to order: A project is always made to the order of its customer. The customer stipulates various requirements and puts constraints within which the project must execute.
    • Unity in diversity: A project is a complex set of thousands of varieties. The varieties are in terms of technology, equipment, and materials, machinery and people, work culture and ethics. But they remain inter-related and unless this is so, they either do not belong to the project. Or will never allow the project to be completed.
    • Successive principle: What is going to happen during the life cycle of a project is not fully known at any stage. The details get finalized successively with the passage of time. More is known about a project when it enters the construction phase than what was known to say, during the detailed engineering phase.
    • Risk and uncertainty: Every project has risk and uncertainty associated with it. The degree of risk and uncertainty will depend on how a project has passed through its various life-cycle phases. An ill-defined project will have the extremely high degree of risk and uncertainly Risk and uncertainty are not part and parcel of only R and H projects there simply cannot be a project without any risk and uncertainty.
    • High level of sub-contracting: A high percentage of the work in a project is done through contractors. The more the complexity of the project, the more will be the extent of contracting. Normally around 80% of the work in a project is done through sub-contractors.

    Key of Characteristics:

    As follows from the given definition, any project can be characterized by these characteristics:

    Temporary:

    This key characteristic means that every project has a finite start and a finite end. The start is the time when the project is initiated and its concept is developed. The temporary nature of a project indicates that a project has a definite beginning and a definite end.

    The beginning is marked by the start of the project and the end is reached when the project’s objectives have been achieved or when the project is terminated for some other reason. ‘Temporary’ is also one of the characteristics distinguishing a project from normal operations. The end is reached when all objectives of the project have been met (or unmet if it’s obvious that the project cannot be completed – then it’s terminated).

    Unique Deliverable’s:

    Any project aims to produce some deliverable(s) which can be a product, service, or some another result. Every project is unique and different. This is another aspect that differentiates a project from normal operations. Deliverables should address a problem or need analyzing before project start. Repetitive elements may be present in project deliverables and activities, but there is always something different about those elements or the way in which they are combined.

    Once again, a building construction project can serve as a conceptual example. A specific structure may be designed by people who have designed other buildings, constructed by people who have built other buildings, and made from the same materials as other buildings. Yet, an individual building project brings those elements together in a unique way; A particular building of a specific design for an exact purpose using selected materials all combine to create a unique construction project.

    Progressive Elaboration:

    With the progress of a project, continuous investigation and improvement become available, and all this allows producing more accurate and comprehensive plans. This key characteristic means that the successive iterations of planning processes result in developing more effective solutions to progress and develop projects.

    Creating Output:

    Every project creates some type of product, service, or end result. These outputs are called deliverables and they are the reason projects exist and take place. Project output can be both tangible and intangible. An example of tangible project output is the building resulting from a construction project. Examples of intangible projects include new services or events.

    The Project is explained – and the Last Point, Objectives of a Project:

    The “Project” is a means to achieve a “goal”. By the completion of projects, the creative part (of the projected asset) comes to an end and, thereupon, the project-created tangible thing is used to achieve the goal. So, primarily, there is a goal aimed at by the project owner and, in order to achieve that goal, he initiates the “project”. Accordingly, before we deal with the project objectives, we would like to go through the possible objectives of the project owner.

    First Objectives, A popular expression runs:

    “Project grows out of needs or opportunities.” The project, in general, is undertaken when the need or opportunity is identified, a proposal is crystallized in form of a project, the proposal is then transformed into necessary activities to build-up the project, e.g. setting up a plant. Along with further analyses and appraisal of the project technical, financial etc. a firm decision is made about launching a project.

    At this point, the project objectives are set which becomes the ultimate philosophy for the project team. Any project decision is based upon the full evaluation of its impact upon the project objectives.

    The project, when finalized, has the following objectives:

    • It has a time-bound programme to start, execute, commission and delivery of the project;
    • It has cost-bound activities in terms of money spent or resources consumed so that total cost is within the total estimated project cost as agreed and authorized by the project owner and
    • It shall conform to the technical specifications set at the point of deciding upon the project. In others words, the delivery (of the project) shall have to be of the agreed quality.

    Second Objectives, Without Money-Making Mission:

    • There are situations where projects need to be implemented with social objectives. Primarily, these are undertaken by the government—non-industrial projects aimed towards the social benefits as, public health, irrigation, education etc. The government, being the owner of these projects, provides funds for such projects.
    • Projects are also undertaken on account of emergency and/or need of national importance e.g. defense and security. Even though such projects can be highly complex and costly phenomena as constructing an aircraft landing facility at high altitude—such projects are non-industrial and funded by the government.
    • There are projects within an industrial organization with the social objective, being necessary as per local legal regulations, e.g. Instituting facilities for health-care, education, sports etc. within a township built-up by a very large industrial organization. Influence of ‘politics’ also plays an important role in location, timing, and size of such projects.
    • There are instances where industrial organizations are aspiring to achieve and/or maintain a leading position in the trade/industry. In such a situation, the organization decides to spend some of its resources on Research and Development activities including research in finding out new products, new processes, development of existing products etc. to avail the cost benefit.

    The management of such an organization decides to go ahead for the Research and Development projects with a plan to install facilities to search for the probable product and/or process. Installation of such project includes the establishment of a laboratory with sophisticated equipment, the appointment of professionals and the supply of necessary consumables.

    In all such cases mentioned in (a) to (d) above the project is confined to budgeted costs and, obviously, no revenue/income is involved. There is a scope of deliberation on expenses involved, considering the resources available in the organization. There may be the limitation and/or deferment of the expenses under this type of project as per the decision of the management.

    The Project is explained in Features Characteristics and Objectives
    Image credit from #Pixabay.
  • Explanation of Financial Statements: Objectives, Importance, and Limitations

    Explanation of Financial Statements: Objectives, Importance, and Limitations

    Financial statements are the product of a process in which a large volume of data about aspects of the economic activities of an enterprise are accumulated, analyzed and reported. Explanation of Financial Statements: Objectives, Importance, and Limitations – Keep study and learn. This process should carry out in conformity with generally accepted accounting principles. These principles represent the most current consensus about how accounting information should record, what information should be disclosed, how it should be disclosed, and which financial statement should prepare.

    Financial Statements explanation of each, Meaning of Financial Statements, Objectives of Financial Statements, Importance, and Limitations of Financial Statements.

    Thus, generally accepted principles and standards provide a common financial language to enable informed users to read and interpret financial statements. Financial statements are prepared primarily for decision-making. They play a dominant role in setting the framework of managerial decisions. But the information provided in the financial statements is not an end in itself as no meaningful conclusions can draw from these statements alone.

    However, the information provided in the financial statements is of immense use in making decisions through analysis and interpretation of financial statements. Financial analysis is the process of identifying the financial strengths and weaknesses of the firm by properly establishing the relationship between the items of the balance sheet and the profit and loss account. There are various methods or techniques used in analyzing financial statements, such as comparative statements, common-size statements, trend analysis, schedule of changes in working capital, funds flow, cash flow analysis, and ratio analysis. Related learn Financial Accounting: Meaning, Nature, and Scope!

    Meaning of Financial Statements: 

    Financial Statements are the collective name given to Income Statement and Positional Statement of an enterprise which shows the financial position of a business concern in an organized manner. We know that all business transactions are first recorded in the books of original entries and thereafter posted to relevant ledger accounts. For checking the arithmetical accuracy of books of accounts, a Trial Balance is prepared.

    The trial balance is a statement prepared as a first step before preparing financial statements of an enterprise which record all debit balances in the debit column and all credit balances in the credit column. To find out the profit earned or loss sustained by the firm during a given period and its financial position at a given point in time is one of the purposes of accounting. For achieving this objective, financial statements are prepared by the business enterprise, which includes the income statement and positional statement.

    A firm communicates to the users through financial statements and reports.  The financial statements contain summarized information on the firm’s financial affairs, organized systematically. Preparation of the financial statements is the responsibility of top management.  They should prepare very carefully and contain as much information as possible.

    Two basis financial statements prepared for external reporting to owners, investors, and creditors are:
    1. Statement of financial position (or Balance sheet): Balance sheet contains information about the resources and obligations of a business entity and about its owners’ interests in the business at a particular point in time. In accounting’s terminology, balance sheet communicates information about assets, liabilities and owner’s equity for a business firm as on a specific date.  It provides a snapshot of the financial position of the firm at the close of the firm’s accounting period.
    2. Income statement (or Profit and loss account): The profit and loss account presents the summary of revenues, expenses and net income (or net loss) of a firm for some time. Net income is the amount by which the revenues earned during a period exceed the expenses incurred during that period.

    More information is required for planning and controlling and therefore the financial accounting information is presented in different statements and reports in such a way as to serve the internal needs of management.  Financial statements are prepared from the accounting records maintained by the firm.

    These two basic financial statements viz:

    (i) Income Statement,  or Trading, and Profit & Loss Account and (ii) Positional Statement, or Balance Sheet portrays the operational efficiency and solvency of any business enterprise.

    The following formula summarizes what a balance sheet shows:

    ASSETS = LIABILITIES + SHAREHOLDER’S EQUITY

    A company’s assets have to equal, or “balance,” the sum of its liabilities and shareholder’s equity.

    The income statement shows the net result of the business operations during an accounting period and positional statement, a statement of assets and liabilities, shows the final position of the business enterprise on a particular date and time. So, we can also say that the last step of the accounting cycle is the preparation of financial statements.

    The income statement is another term used for Trading and Profit & Loss Account. It determines the profit earned or loss sustained by the business enterprise during a period. In the large business organization, usually one account i.e., Trading and Profit & Loss Account is prepared for knowing gross profit, operating profit, and net profit.

    On the other hand, in small size organizations, this account is divided into two parts i.e. Trading Account and Profit and Loss Account. To know the gross profit, Trading Account is prepared and to find out the operating profit and net profit, Profit and Loss Account is prepared. The positional statement is another term used for the Balance Sheet. The position of assets and liabilities of the business at a particular time is determined by the Balance Sheet.

    Objectives of financial statements are:

    • To provide reliable financial information about economic resources and obligations of a business enterprise.
    • Reliable information about changes in the resources (resources minus obligations) of an enterprise that result from the profit-directed activities.
    • Financial information that assists in estimating the earning potential of the enterprise.
    • Other needed information about changes in economic resources and obligations.
    • To disclose, to the extent possible, other information related to the financial statement that is relevant to statement users

    Objective and Importance:

    The profitability of Business:

    Financial statements are required to ascertain whether the enterprise is earning the adequate profit and to know whether the profits have increased or decreased as compared to the previous years so that corrective steps can be taken well in advance.

    The Solvency of the Business:

    Financial statements help to analyze the position of the business as regards to the capacity of the entity to repay its short as well as long-term liabilities.

    The Growth of the Business:

    Through comparison of data of two or more years of business entity, we can draw a meaningful conclusion about the growth of the business. For example, an increase in sales with a simultaneous increase in the profits of the business indicates a healthy sign for the growth of the business.

    Financial Strength of Business:

    Financial statements help the entity in determining the solvency of the business and help to answer various aspects viz., whether it is capable to purchase assets from its resources and/or whether the entity can repay its outside liabilities as and when they become due.

    Making Comparison and Selection of Appropriate Policy:

    To make a comparative study of the profitability of the entity with other entities engaged in the same trade, financial statements help the management to adopt the sound business policy by making Intra firm comparison.

    Forecasting and Preparing Budgets:

    The financial statement provides information regarding the weak-spots of the business so that the management can take corrective measures to remove these shortcomings. Financial statements help the management to make the forecast and prepare budgets.

    Communicating with Different Parties:

    Financial statements are prepared by the entities to communicate with different parties about their financial position. Hence, it can be concluded that understanding the basic financial statements is a necessary step towards the successful management of a commercial enterprise.

    Limitations of Financial Statements:

    Manipulation or Window Dressing:

    Some business enterprises resort to manipulating the information contained in the financial statements to cover up their bad or weak financial position. Thus, the analysis based on such financial statements may be misleading due to window dressing.

    Use of Diverse Procedures:

    There may be more than one way of treating a particular item and when two different business enterprises adopt different accounting policies, it becomes very difficult to make a comparison between such enterprises. For example, depreciation can be charged under the straight-line method or written down value method. However, the results provided by comparing the financial statements of such business enterprises would be misleading.

    Qualitative Aspect Ignored:

    The financial statements incorporate the information which can be expressed in monetary terms. Thus, they fail to assimilate the transactions which cannot be converted into monetary terms. For example, a conflict between the marketing manager and sales manager cannot be recorded in the books of accounts due to its non-monetary nature, but it will certainly affect the functioning of the activities adversely and consequently, the profits may suffer.

    Historical:

    Financial statements are historical as they record past events and facts. Due to continuous changes in the demand of the product, policies of the firm or government, etc, analysis based on past information does not serve any useful purpose and gives the only post­mortem report.

    Price Level Changes:

    Figures contained in financial statements do not show the effects of changes in the price level, i.e. price index in one year may differ from the price index in other years. As a result, the misleading picture may be obtained by making a comparison of figures of the past year with current year figures.

    Subjectivity & Personal Bias:

    Conclusions drawn from the analysis of figures given in financial statements depend upon the personal ability and knowledge of an analyst. For example, the term ‘Net profit’ may be interpreted by an analyst as net profit before tax, while another analyst may take it as net profit after tax.

    Lack of Regular Data/Information:

    Analysis of financial statements of a single year has limited uses. The analysis assumes importance only when compared with financial statements, relating to different years or different firm.

    Financial statements are the means of conveying to management, owners and interested outsiders a concise picture of profitability and financial position of the business. The preparation of the final accounts is not the first step in the accounting process but they are the end products of the accounting process which give concise accounting information of the accounting period after the accounting period is over. To know the profit or loss earned by a firm, Trading, and Profit and Loss Account is prepared. Balance Sheet will portray the financial condition of the firm on a particular date.

    Explanation of Financial Statements Objectives Importance and Limitations ilearnlot
    Explanation of Financial Statements: Objectives, Importance, and Limitations, Image Credit from ilearnlot.com.
  • Financial Reporting: Definition, Objectives, and Importance!

    Financial Reporting: Definition, Objectives, and Importance!

    Financial reporting is the financial result of an organization that releases it to the public. The Concept of the study Explains – Financial Reporting and their topics Definition, Objectives, and the Importance. This reporting is a key function of the controller, who may assist by the investor relations officer if an organization is publicly held. “Financial statements or financial reports” is a formal record of the financial activities and position of a business, person, or other entity.

    Explain and Learn, Financial Reporting: Definition, Objectives, and Importance. 

    A firm communicates to the users through financial statements and reports.  The financial statements contain summarized information on the firm’s financial affairs, organized systematically.

    The preparation of the financial statements is the responsibility of top management.  They should be prepared very carefully and contain as much information as possible. Financial Reporting: Definition, Objectives of Financial Reporting, and the Importance of Financial Reporting; Two basis financial statements prepared for external reporting to owners, investors, and creditors are:

    Balance sheet or statement of financial position:

    The balance sheet contains information about the resources and obligations of a business entity and about its owners’ interests in the business at a particular point in time. In accounting terminology, the balance sheet communicates information about assets, liabilities and owner’s equity for a business firm as on a specific date.  It provides a snapshot of the financial position of the firm at the close of the firm’s accounting period.

    Profit and loss account or income statement:

    The profit and loss account presents the summary of revenues, expenses and net income (or net loss) of a firm for some time. Net income is the amount by which the revenues earned during a period exceed the expenses incurred during that period.

    More information requires planning and controlling and therefore the financial accounting information presents in different statements and reports in such a way as to serve the internal needs of management.  Financial statements prepared from the accounting records maintained by the firm.

    The following Financial reporting typically encompasses below:
    • Financial statements, which include the income statement, balance sheet, and statement of cash flows
    • Accompanying footnote disclosures, which include more detail on certain topics, as prescribed by the relevant accounting framework
    • Any financial information that the company chooses to post about itself on its website
    • Annual reports issued to shareholders
    • Any prospectus issued to potential investors concerning the issuance of securities by the organization
    If a business is publicly held, financial reporting also includes the following:
    • The quarterly Form 10-Q and annual Form 10-K, which are filed with the Securities and Exchange Commission
    • The annual report issued to shareholders, which could a strip-down version that calls a wrap report
    • Press releases containing financial information about the company
    • Earnings calls, during which management discusses the company’s financial results and other matters.

    The objectives of Financial Reporting:

    The main objective of financial reporting is to provide financial information to the current capital provides to make decisions. This information might also be useful to users who are not capital providers. The general purpose financial reporting develops superior reporting standards to help in the efficient functioning of economies and the efficient allocation of resources in capital markets.

    General-purpose financial reporting focuses on an extensive range of user’s needs that cannot obtain financial information needed from the entity. It should be broad enough to comprehend information for various users. Therefore, the financial report is where they depend on to acquire information. Diverse users may require different information which might go beyond the scope of general purpose financial reporting.

    The financial reports are prepared from the entity’s perspective (deemed to have substance on its own, spate from that of its owners), instead of the entity’s capital providers. An entity attains economic resources (its assets) from capital providers in exchange for claims to those resources (its liabilities and equity). Capital providers include;

    Equity investors: 

    Equity investors normally invest economic resources in an entity expecting to receive a return on, as well as a return of, the resources invested in. Hence, equity investors concern with the amount, timing, uncertainty of an entity’s future cash flows and the entity’s competence in generating those cash flows which affects the prices of their equity interests. Furthermore, they concern with the performance of directors and management of the entity in discharging their responsibility to make efficient and profitable use of the assets invested.

    Lenders: 

    Lenders usually expect to receive a return in the form of interest, repayments of borrowings, and increases in the prices of debt securities. The Lenders have similar interests as equity investors.

    Other creditors: 

    Other creditors provide resources because of their relationship with the entity, instead of a capital provider; no primary relationship.

    1. Employee – salary or compensation
    2. Suppliers – extended credit
    3. Customer – prepay for goods and services
    4. Managers – responsible for preparing financial reports

    Capital providers make decisions through useful information provided in financial reporting by the particular entity. Financial reporting usefulness in assessing cash flow prospects depends on the entity’s current cash resources and the ability to generate sufficient cash to reimburse its capital providers. Besides, financial reporting usefulness in assessing stewardship includes the management’s responsibilities to protect the entity’s economic resources (assets) from unfavorable effects.

    Management is also liable for safeguarding the assets of the entity which conforms to the laws, regulations and contractual provisions; thus, the importance of management’s performance in the decision usefulness. The general purpose of financial reporting limits to the information that does not reflect pertinent information from other sources that should consider by the users.

    Financial reporting information base on estimates, judgments, and models of the financial effects on an entity of transactions and other events in which, is only ideal for preparers and standard setters to strive. Achieving the framework’s vision of ideal financial reporting to the fullest will be difficult in the short term because of technical infeasibility and cost constraints.

    Financial reporting should include information about: the economic resources of an entity (assets), the claims of the entity are (liabilities and equity), the effects of transaction and any events or circumstances that can affect the entity’s resources and claims and provide useful information about the ability of entity to generate its cash flow and how well the entity meets its management responsibilities.

    The usefulness of financial reporting to the users:

    1. Provide useful information about the amount, timing, and uncertainty of future cash flow
    2. Identify the entity’s financial strengths and weaknesses (especially for capital providers)
    3. Indicate the potential of the entity’s cash flow for its economic resources and claims
    4. Identify the effectiveness of the entity’s management responsibilities
    5. Assess the availabilities of the entity’s nature and quantity of the resources for the use in its operation
    6. Estimate the values of the entity.

    The quantitative measures and other information regarding the changes in entity’s economic resources and claims in the financial report can help the users to assess the amount, timing, and uncertainty of its cash flow; and indicate the effectiveness of management responsibilities.

    Furthermore,

    The entity must provide a positive return on its economic resources to generate net cash inflows, and return the earning to its investors. Other information like the variability of returns, past financial performance, and management’s ability can use to assess the entity’s future financial performance.

    The information regarding the accrual accounting in financial reporting can better provide the users to assess the entity’s past financial performance and prospects in generating net cash inflows without obtaining additional capital from its investors.

    The entity’s cash flow performance in financial reporting assists the investors to understand the entity’s business model and operation by assessing how the entity obtains and spends cash. Information about its borrowing, repayment of borrowing, cash dividends and other distribution to investors, as well as the factors of entity’s liquidity and solvency, can also assist the investors to determine the entity’s cash flow accounting.

    Besides,

    Information about the changes in the entity’s resources and claims not resulting from financial performance may assist the investors to differentiate the changes that are results of the entity’s financial performance and those that are not.

    The information of management explanation should include in financial reporting to assist users for a better understanding of management decisions in any events and circumstances that have affected or may affect the entity’s financial performance. It is because the internal parties know about the entity’s performance than the external users.

    Financial Reporting Definition Objectives and Importance - ilearnlot
    Financial Reporting: Definition, Objectives, and Importance! Image credit from #Pixabay.

    Importance of Financial Reporting:

    The importance of financial reporting cannot overemphasize. It is required by every stakeholder for multiple reasons & purposes. The following points highlight why financial reporting framework is important:

    1. It helps an organization comply with various statues and regulatory requirements. The organizations are required to file financial statements with ROC, Government Agencies. In the case of listed companies, quarterly as well as annual results are required to file to stock exchanges and publish.
    2. It facilitates the statutory audit. The Statutory auditors are required to audit the financial statements of an organization to express their opinion.
    3. Financial Reports form the backbone for financial planning, analysis, benchmarking and decision making. These uses for the above purposes by various stakeholders.
    4. Financial reporting helps organizations to raise capital both domestic as well as overseas.
    5. Based on financials, the public in large can analyze the performance of the organization as well as its management.
    6. Forbidding, labor contracts, government supplies, etc., organizations require to furnish their financial reports & statements.

    The importance of financial statements lies in their utility to satisfy the varied interest of different categories of parties such as management, creditors, public, etc.

    In Management:

    An increase in the size and complexities of factors affecting the business operations necessitate a scientific and analytical approach in the management of modern business enterprises. The management team requires up to date, accurate and systematic financial information for the purposes.

    Financial statements help the management to understand the position, progress, and prospects of business vis-a-vis the industry. By providing the management with the causes of business results, they enable them to formulate appropriate policies and courses of action for the future.

    The management communicates only through these financial statements, their performance to various parties and justifies their activities and thereby their existence. A comparative analysis of financial statements reveals the trend in the progress and position of the enterprise; and, enables the management to make suitable changes in the policies to avert unfavorable situations.

    In the Shareholders:

    Management separate from ownership in the case of companies. Shareholders cannot, directly, take part in the day-to-day activities of the business. However, the results of these activities should be reported to shareholders at the annual general body meeting in the form of financial statements.

    These statements enable the shareholders to know about the efficiency and effectiveness of the management; and, also the earning capacity and financial strength of the company.

    By analyzing the financial statements, the prospective shareholders could ascertain the profit earning capacity, present position, and prospects of the company; and, decide about making their investments in this company. Published financial statements are the main source of information for prospective investors.

    In Lenders/Creditors:

    The financial statements serve as a useful guide for the present and future suppliers and probable lenders of a company. It is through a critical examination of the financial statements; that these groups can come to know about the liquidity, profitability and long-term solvency position of a company. This would help them to decide about their future course of action.

    In Labor:

    Workers are entitled to bonus depending upon the size of profit as disclosed by the audited profit and loss account. Thus, P & L a/c becomes greatly important to the workers. In wages negotiations also, the size of profits and profitability achieved are greatly relevant.

    In the Public:

    Business is a social entity. Various groups of society, though directly not connected with the business, are interested in knowing the position, progress, and prospects of a business enterprise. They are financial analysts, lawyers, trade associations, trade unions, the financial press, research scholars, and teachers, etc. It is only through these published financial statements; these people can analyze, judge and comment on the business enterprise.

    In the National Economy:

    The rise and growth of the corporate sector, to a great extent, influence the economic progress of a country. Unscrupulous and fraudulent corporate management shatter the confidence of the general public in joint-stock companies; which is essential for economic progress and retard the economic growth of the country.

    Financial Statements come to the rescue of the general public by providing information by which they can examine; and, assess the real worth of the company and avoid being cheated by unscrupulous persons. The law endeavors to raise the level of business morality by compelling the companies to prepare financial statements in a clear; and, systematic form and disclose material information.

    This has increased the confidence of the public in companies. Financial statements are also essential for the various regulatory bodies such as tax authorities, Registrar of companies, etc. They can judge whether the regulations are being strictly followed; and, also whether the regulations are producing the desired effect or not, by evaluating the financial statements. Read and share the given article (Financial Reporting: Definition, Objectives, and Importance) in Hindi.

  • Personnel Management: Meaning, Definition, and Objectives

    Personnel Management: Meaning, Definition, and Objectives

    Personnel Management: An administrative discipline of hiring and developing employees so that they become more valuable to the organization. The Concept of Personnel Management, Meaning, 7 different Definition, and Objectives. It includes (1) conducting job analyses, (2) planning personnel needs, and recruitment, (3) selecting the right people for the job, (4) orienting and training, (5) determining and managing wages and salaries, (6) providing benefits and incentives, (7) appraising performance, (8) resolving disputes, (9) communicating with all employees at all levels.

    Explain and Learn, Personnel Management: Meaning, Definition, and Objectives: 

    Personnel management can define as obtaining, using and maintaining a satisfied workforce. It is a significant part of management concerned with employees at work and with their relationship within the organization. The Factors Influencing and Importance of Financial Decisions!

    According to Flippo,

    “Personnel management is the planning, organizing, compensation, integration, and maintenance of people for the purpose of contributing to organizational, individual and societal goals.”

    According to Brech,

    “Personnel Management is that part which is primarily concerned with the human resource of the organization.”

    Meaning of Personnel Management:

    Personnel/ human resource management is a staff function whose primary role is to help the organization achieve its goals. The operation of the personnel function is dependent on the broad strategy, policies, and structure of the organization. Small companies have different personnel problems than large companies.

    Organizations scattered at different places must address problems that do not create problems for centralized organizations. Manufacturing companies have somewhat different per­sonnel concerns than service companies. A large university teaching business man­agement courses are labor-intensive and employ hundreds of professional and non-professional personnel in various departments and areas of specialization.

    On the other hand, a capital-intensive firm such as a petroleum refinery employee relatively few workers and its personnel function will be quite different from that of a university teaching management. Whatever strategic or organizational changes occur, the personnel management department must help facilitate these changes through recruitment, selection, train­ing, compensation, and other personnel functions. To accomplish the organization’s goals and support its strategies, personnel objectives and strategies must also be developed.

    Definitions of Personnel Management:

    ”The personnel function is concerned with the procurement, development, compensation, integration, and maintenance of the personnel of an organization to contribute toward the accomplishment of that organization’s major goals or objectives. Therefore, personnel management is the planning, organizing, directing, and controlling the performance of those operative functions.” — Edwin B. Flippo, Principles of Personnel Management.

    “Personnel management is that field of management which has to do with planning, organizing, and controlling various operative activities of procuring, developing, maintaining and utilizing a labor force so that the objectives and interest for which the company is established are attained as effectively and economically as possible and the objectives and interest of all levels of personnel and community are served to the highest degree.” — M. J. Jucius, Personnel Management.

    “Manpower management effectively describes the processes of planning and directing the application, development, and utilization of human resources in employment.” — Dale Yodder, Personnel Management, and Industrial Relations.

    “Personnel Administration is a method of developing the potentialities of employees so that they get maximum satisfaction out of their work and give their best efforts to the organization.” — Pigors and Myres, Personnel Administration.

    Some more definitions:

    ”Personnel Management is that part of management process which is primarily concerned with the human constituents of an organization.” — E.F.L. Brech (ed.) Principles and Practice of Management.

    “Personnel management is that part of management function which is concerned with people at work and with their relationships within an enterprise. It aims to bring together and develop into an effective organization the men and women who make up an enterprise and, having regard to the well-being of an individual and working groups, to enable to make their best contribution to its success”. — The British Institute of Personnel Management.

    “Personnel Management is that part of the management function which is primarily concerned with human relationships within an organization. Its objective is the maintenance of those relationships on a basis which, by consideration of the well-being of the individual, enables all those engaged in the undertaking to make their maximum personal contribution in the effective working of the undertaking.” — Indian Institute of Personnel Management, Kolkata.

    Objectives of Personnel Management:

    These classify into two:

    (а) General Objectives:

    These reveal the basic philosophy of top management towards the labor force engaged in the work and its deep underlying conviction as to the importance of the people in the organization. The following are the most important objectives.

    (i) Maximum individual development:

    The employer should always be careful in developing the personality of each individual. Each individual differs in nature and therefore management should recognize their ability and make use of such ability effectively and make use of such ability effectively.

    (ii) The desirable working relationship between employer and employees:

    It is the main objective of personnel management to have a desirable working relationship between employees and employees so that they may co-operate the management.

    (iii) Effective molding of human resources as contrasted with physical resources:

    Man is the only active factor of production, which engages the other factors of production to work.

    (b) Specific objectives:

    Following are some of the important activities:

    (i) Selection of right type and number of persons required to the organization.

    (ii) Proper orientation and introduction of new employees to the organization and their jobs.

    (iii) Suitable training facilities for better job performance and to prepare the man to accept the challenge of the higher job.

    (iv) Provision of better working conditions and other facilities such as medical facilities.

    (v) To give a good impression to the man who is leaving the organization.

    (vi) Maintaining good relations with the employees.

    Among the more important personnel objectives are the following:
    1. To establish employee recruitment and selection systems for hiring the best possible employees consistent with the organization’s needs.
    2. Maximize the potential of each employee in order both to attain the organi­sation’s goals and ensure individual career growth and personal dignity.
    3. Retain employees whose performance helps the organization realize its goals and to release those whose performance is unsatisfactory.
    4. To ensure organizational compliance with state and central government laws that apply to their function.

    The management of any organizational unit or department marketing, finance, accounting or production involves the accomplishment of objectives through the use of the skills and talents of people. As well as, it is considered both a line management responsibility and a staff function.

    In any type of organization large, medium or small human resources must be recruited, compensated, developed and motivated and performance appraisal must finalize and implement by managers.

    More information;

    The role of personnel management in an organization’s strategic management planning is of considerable importance. It helps organizations to find ways to compete effectively at home and internationally. Also, Quality and productivity constitute the core of managing work, organizations, people, and operations because they are critical to costs, competitiveness, and profitability.

    It methods such as employee and motivation programs, employees’ training and education and changing the organization’s culture lead to an improvement in quality and productivity in the organizations. So, what we learn? Personnel manage­ment can define as the process of fulfilling organizational objectives by acquir­ing, retaining, terminating, developing and properly using human resources.

    Personnel Management Meaning Definition and Objectives - ilearnlot
    Personnel Management: Meaning, Definition, and Objectives, Image form online.
  • Central Banks: Objectives, Role, Operations, and Autonomy

    Central Banks: Objectives, Role, Operations, and Autonomy

    A central bank, institution, such as the Bank of England, the U.S. Federal Reserve System, or the Bank of Japan, that charges with regulating the size of a nation’s money supply, the availability, and cost of credit, and the foreign-exchange value of its currency. This article explains the Concept of Central Banks: Meaning, Objectives, Role, Operations, and Autonomy. Regulation of the availability and cost of credit may be non-selective or may design to influence the distribution of credit among competing uses.

    Learn, Explain Central Banks: Objectives, Role, Operations, and Autonomy.

    The principal objectives of a modern central bank in carrying out these functions are to maintain monetary and credit conditions conducive to a high level of employment and production, a reasonably stable level of domestic prices, and an adequate level of international reserves. The Concept of Central Banks: Meaning, Objectives of Central Banks, Role of Central Banks, Operations of Central Banks, and the Autonomy of Central Banks…all information below are;

    Objectives of Central Banks:

    The objectives of the central bank include economic growth in line with the economy’s potential to expand; a high level of employment; stable prices (that is, stability in the purchasing power of money); and moderate long-term interest rates.

    The central bank is ultimately concerned with preserving the integrity of a country’s financial institutions, combating inflation, defending the exchange rate of the country’s currency and preventing excessive unemployment.

    Role of Central Banks:

    The central bank, which is responsible for managing a country’s monetary affairs, determines the level of short-term interest rates, thereby profoundly affecting financial markets, wealth, output, employment, and prices.

    Indeed the central bank’s influents spread not only within the domestic territory of a country but even, through financial and trade linkages — to virtually every corner of the globe.

    The central bank’s main goal is low and stable inflation.

    It also seeks to promote steady growth in national output, low unemployment, and orderly financial markets. If the output is growing rapidly and inflation is rising the central bank is likely to raise interest rates, as this puts a brake on the economy and reduces inflationary pressures.

    If the economy is sluggish and business is languishing, an exactly opposite type of monetary action calls for. The central bank will lower interest rates — which is likely to boost aggregate demand, increase output and reduce unemployment.

    Through 5 steps, how the central bank affects economic activity. (1) is the change in reserves, which leads to changes in M, in (2); leading to (3), changes in interest rates and credit availability. In (4) AD change’s in response to investment and other interest-sensitive components of desired expenditure.

    In (5) changes in output, employment and general price level follow. (It should not, however, miss that fiscal policy also affects aggregate demand).

    Operations of Central Banks:

    The central bank has at its disposal several policy instruments. These can affect certain intermediate targets. These instruments are directed towards achieving the ultimate objectives of monetary policy — low inflation, rapid growth in output and low unemployment which are the signs of a healthy economy. For the sake of analysis, it is important to keep the different groups (policy instruments, intermediate targets, and ultimate objectives) separate and distinct.

    The three instruments of monetary policy are open market operations, discount rate policy and reserve-requirements policy. The pros and cons of each will discuss. In determining its monetary policy, the central bank directly manipulates these instruments or policy variables under its control. These help determine bank reserves, the money supply, and interest rates — the intermediate targets of monetary policy.

    More Things…

    In managing money, the central bank must keep its eye on a set of variables known as intermediate targets. These are economic variables that are intermediate in the transmission mechanism between monetary policy instruments and ultimate policy goals. When the central bank seeks to affect its ultimate objectives, it first changes one of its instruments, such as the discount rate.

    This change affects an intermediate variable such as interest rates, credit availability or the money supply. For maintaining sound health of the economy the central bank keeps a close watch on its intermediate targets. Ultimately monetary and fiscal policies are partners in pursuing the measure objectives of rapid growth, low unemployment, and stable prices.

    The autonomy of the Central Banks:

    In recent years there is a strong demand for central bank independence. Monetary policy independence is not necessary primarily in order to protect a ‘conservative’ central banker from the influence that a less ‘conservative’ government might seek to bring to bear, but rather to enable central bankers with a longer-term decision horizon (and/or a lower rate of time preference) to assert their authority when faced with a government with a shorter planning “horizon (and/or a higher rate of time preference).

    Then, when the government ‘by a conscious act relinquishes its power’, it does not mean that the institution to which the power of decision-making transfers has different inflation and employment prefer­ences from the population, but simply that it is operating with a longer time horizon than the government.

    Thus, the central bank may react appropriately to temporary output shocks if it thinks that such a policy can pursue without long-term disadvantages for price stability. From this standpoint, the economic rationale for indepen­dence is that it enables those deciding monetary policy to conduct their policy without being always scrutinized by the government for short-term results.

    More Things…

    The longer-term horizon in their decision-making implies that they make full allowance for the long-time lags involved in the conduct of monetary policy, i.e., its formulation and implementation.

    It is now felt that the most important aim of central bank legislation should be to create an incentive structure that guarantees a long-term time horizon of central bankers. As most politicians are characterized by rather myopic behavior, this implies, above all, that the monetary policy decisions taken in the central bank have to insulate from the general political process as far as possible.

    This explains why central bank independence is now widely regarded as a prerequisite for an effective monetary policy. The trick is to attain the appropriate balance between the need to be responsive to short-term pressures and the need to ensure that those pressures are exerted in a system that safeguards the long-term interest of the population. However, there are different definitions of central bank independence.

    Types:

    Two main types of independence are — “goal independence” and “instrument indepen­dence“. A central bank enjoys goal independence when it is free to choose its goals or, at least, free to decide the actual target values for a given goal. A central bank has instrument independence when it ‘is given control over the levers of monetary policy and allowed to use them’.

    An alternative definition distinguishes between political and economic independence. By political independence, we mean a central bank’s ability to pursue the goal of price stability unfettered by formal or informal instructions emanating from the ruling government. Independence refers to the autonomy to pursue the goal of low inflation.

    Any institutional feature that enhances the central bank’s capacity to pursue this goal will increase central bank independence. Economic independence means that a central bank has unlimited freedom to determine all monetary policy transactions that lead to changes in its operating targets.

    Central Banks Objectives Role Operations and Autonomy Image
    Central Banks: Objectives, Role, Operations, and Autonomy.
    The different notions of independence:

    Since all these definitions have both merits and shortcomings it is necessary to make a synthesis of both approaches, which distinguishes three different notions of independence.

    1. Goal independence: Goal independence requires that the government has no direct influence on the goals of monetary policy.
    2. Instrument independence: Instrument independence requires that the central bank can set its operating targets (interest rate, exchange rate) autonomously. This notion of instrument independence is identical to the concept of ‘economic independence’.
    3. Personal independence: Personal independence requires that the decision-making body of a central bank be in a position to resist formal directives as well as informal pressure from the government.

    Now, Explain;

    Goal Independence:

    The definition of the goals of the monetary policy includes not only the choice between price stability and nominal GDP but also a definition of the time horizon for their realization, the definition of concrete indices, their numerical target values and the definition of escape clauses.

    Thus, ‘goal independence’ can take various forms. It can include a framework wherein the central bank has complete freedom on all these issues, as well as a framework wherein it can decide on only some of these issues. In reality, one can find three variants of the definition of goal independence.

    In the USA monetary policy seeks to promote effectively the goals of maximum employment, stable prices, and moderate long-term interest rates. But ‘stable long-term interest rates’ is not compatible with the standard definition of the goals of monetary policy. Long-term interest rates are, at best, an intermediate target.

    The European Central Bank grants a somewhat more limited degree of goal independence. Similar arrangements are found in Japan and, to some extent, in Sweden.

    More Things…

    A low degree of goal independence characterizes the central bank legislation of the United Kingdom, Canada, and New Zealand. In these countries, the central bank legislation defines price stability as the main goal of monetary policy but gives the government the right to determine the concrete target values.

    The most important prediction of both theoretical and empirical kinds of literature is that a central bank should have instrument independence, but should not have goal independence.

    There are no permanent trade-offs between price stability and other macroeconomic targets. Therefore, there is no real choice that ‘elected officials’ could make for the population in the long run. In the short-term, supply shocks make it necessary to allow for deviations from a medium-term inflation target. But entrusting the government or the parliament with this decision could lead to the risk of an inflation bias.

    This leads to a possible trade-off between:
    • A more flexible response of monetary policy in the case of supply shocks, but only if the central bank overly commits to price stability, and
    • The reduced political independence of monetary policy with all the attendant risks.

    Instrument Independence:

    Instrument independence implies that a central bank can set its operating targets without any interference from the government.

    It includes three important elements:
    • Control of the short-term interest rate as the most important operating target of monetary policy.
    • Control of the exchange rate, which can uses as an additional operating target, especially in a relatively open economy, and.
    • Restrictions of central bank credits to the government, which could undermine the control over the monetary base and, thus, over short-term interest rates.

    Instrument independence constitutes an indispensable element of stability-oriented central bank legislation. Inflation targeting seems to be the most effective and it leads to the most democratically accountable policy-making when the central bank is instrument independent but not fully goal dependent.

    In most countries, monetary policy can autonomously determine interest rates. However, as in the case of goal independence, there are countries where the government can still override the central bank’s decisions.

    As far as the control over the exchange rate is concerned, there is at present no central bank that has unlimited responsibility for this target of monetary policy. Only the ECB makes a distinction between formal exchange arrangements and a policy of managed floating.

    More Things…

    The central banks in all other countries have very limited responsibilities in the field of exchange rate policy. All central bank acts assign this responsibility’ without qualifications to the government.

    The third element of instrument independence concerns the explicit limitations for central bank lending to the government. This relates exclusively to direct lending to the public sector. It is, therefore, perfectly compatible with the EC Treaty.

    By purchasing government bonds from the commercial banks as part of its open-market policy a central bank can easily bypass the prohibition on deficit financing and conduct its money market management essentially on outright open-market operations.

    In other central bank acts, no similar regulations can find. However, it is ‘conceivable that a monetary policy geared to price stability might guarantee simply by giving a politically independent central bank the power to decide of its own accord when and how much to lend to public sector borrowers’.

    But then there is always the danger of a central bank giving in to political pressure and thus promoting inflationary financing of government-expenditure.

    Personal Independence:

    Even if central bankers are granted instrument and/or goal independence, the government could try to exert some informal pressure on monetary policy. For instance, if the central bank governor could dismiss at any time, and without specific reasons at the discretion of the government, he or she would be in a rather weak position vis-a-vis the minister of finance or the head of the government.

    A strong informal influence on the central bank can also be exerted if only one person, i.e., the governor, is in charge of monetary policy decisions. In this case, it is sufficient that the government sends a depicted partisan to the top of the central bank.

    To sum up, there is an inherent inflation bias mainly due to a short-term time horizon of politicians. This calls for central bank legislation that provides central bankers with independence from politicians and with long-terms of office, which is a very efficient means of insulating central bankers from the government.

  • Environmental Education: Aim, Principles, and Concept

    Environmental Education: Aim, Principles, and Concept

    Environmental education (EE) concerns with those aspects of human behavior which are more directly related to man’s interaction with the biophysical environment and his ability to understand this interaction. The article explaining Environmental Education – with their topic Aim, Principles, and Concept. EE is a methodology in which people pick up familiarity with their surroundings and secure learning, abilities, values, experiences, and passion, all of which will empower them to act – separately and aggregately – to take care of present and future environmental issues.

    Learn and understand the Environmental Education: Aim, Principles, and Concept, deeply explain.

    One of the most glaring problems which the world faces today is environmental pollution. The man has exploited nature excessively at the cost of the environment. There is an immediate need to make people aware of environmental degradation. What is Pollution and Types of Environmental Pollution? Education and public participation may change and improve the quality of the environment.

    Explain it each one of Environmental Education (EE): Definition, Objectives of Environmental Education, Aim of Environmental Education, Principles of Environmental Education, and Concept of Environmental Education! Environmental Education in India – Concept, and Role of Environmental Education.

    Definition of Environmental education (EE):

    According to UNESCO,

    “Environmental education is a way of implementing the goals of environmental protection. It is not a separate branch of science but the lifelong interdisciplinary field of study.”

    It means education towards the protection and enhancement of the environment and education as an instrument of development for improving the quality of life of human communities.

    Objectives of Environmental Education (EE):

    The following are the objectives of environmental education:

    1] Awareness:

    To help social groups and individuals to acquire knowledge of pollution and environmental degradation.

    2] Knowledge:

    To help social groups and individuals to acquire knowledge of the environment beyond the immediate environment including the distant environment.

    3] Attitudes:

    To help social groups and individuals to acquire a set of values for environmental protection.

    4] Skills and Capacity Building:

    To help social groups and individuals to develop the skills required for making discriminations in form, shape, sound, touch, habits, and habitats. Further, to develop the ability to draw unbiased inferences and conclusions.

    5] Participation:

    To provide social groups and individuals with an opportunity to actively involve at all levels in environmental decision making.

    There are four areas of decision making:

    • Types of environmental issues on which decisions might make.
    • The physical setting of the prospective environmental decision, including its spatial scale.
    • Types of social groups and individuals who might interact in a process leading up to an environmental decision, and.
    • The time frame within which the decision must make.

    The aim of Environmental Education (EE):

    UNESCO has highlighted the following aims of environmental education:

    The aim of environmental education is clearly to show the economic, social, political and ecological interdependence of the modern world, in which decisions and actions by different countries can have international repercussions. They should, in this regard, help to develop a sense of responsibility and solidarity among countries and regions as the foundation for a new international order which will guarantee the conservation and improvement of the environment.

    The main aim of environmental education at the grass-root level is to succeed in making individuals and communities understand the complex nature of the natural and the built environments. Further, to acquire the knowledge, values, attitudes, and practical skills to participate responsibly and effectively in anticipating and solving social problems, and in the management of the quality of the environment.

    Therefore, necessary steps for environmental education are:

    • Awareness.
    • Knowledge.
    • Attitude building for motivating to protect the environment.
    • Evaluation of environmental measures, and.
    • Skill and capacity building.

    According to D.H. Meadows’, environmental educators on every continent develop materials and methods as varied as the different cultures and ecosystems on earth. He lists some key concepts which underlie all environmental education. These are food for thought, levels of being, complex systems, population growth and carrying capacity, ecologically sustainable development, socially sustainable development, knowledge, uncertainty, and sacredness.

    Guiding Principles of Environmental Education (EE):

    The Principles of Environmental Education is deeply explaining – These are as follows:

    1] Resource Principles:
    • Resource use demands long-term planning if we are to achieve truly sustainable development.
    • Rationale utilization of a renewable source is a sensible way of preserving the resources while obtaining maximum benefits from it.
    • A mode of life heavily dependent upon rapidly diminishing non­-renewable energy sources (i.e. fossil fuel) is unstable.
    2] Soil Principles:
    • The protection of soils and the maintenance of sustainable agriculture are essential factors in the survival of civilizations and settlements.
    • Soil erosion is the irreversible loss of essential resources and must prevent.
    • A vegetation cover (grass, forest) is important for the balance of nature and the conservation of soil, besides being exploitable natural resources.
    3] Wildlife Protection Principles:
    • Wildlife population is important aesthetically, biologically and economically.
    • Nature reserves and other protected wilderness areas are of value in protecting endangered species because they preserve their habitats.
    • The survival of humanity is closely linked to the survival of wildlife both being dependent on the same life-supporting systems.
    4] Environmental Management Principles:
    • Sound environmental management is beneficial to both man and the environment.
    • Management of natural resources should do rationally.
    • Elimination of wastes through recycling and the development of clean.
    • Technologies are important to modern societies to help reduce the consumption of resources.
    • Human activities and technologies influence considerably the natural environment and may affect its capacity to sustain life, including human life.
    5] Other Principles:
    • The relations between humans and their environment are mediated by their culture i.e.
    • Cultural, historical and architectural heritage are much in need of protection.
    Environmental Education Aim Principles and Concept
    Environmental Education: Aim, Principles, and Concept #Pixabay

    The Concept of Environmental Education (EE):

    Any curriculum should base on well-thought-out and clearly define concepts that one wishes the learner to acquire. Some important concepts of environmental education have interdisciplinary significance such as environmental pollution, carrying capacity, ecosystems, ecology, and conservation, etc.

    Environmental Education (EE) in India:

    The prosperity and well-being of a nation depend on the effective utilization of human and physical resources through industrialization based on science and technology. But there is a perennial controversy between development and the environment. Also, the question is whether we shall go for industrial or modernization or we shall protect the environment.

    On one hand, we know that the development of a nation depends on industrialization, and on the other hand, rapid industrial and agricultural development entails many adverse effects on the environment of the countries concerned. So we have to apply our wisdom in striking a balance between these two contradictory factors. Also, Development and the environment are concerned with global ecology. We should, therefore; clearly, know the basic concepts of environment or ecology and its relation to our developmental activities at the macro as well as micro-level.

    Basic Concept of Environmental Education:

    Everything that surrounds us and on which our life depends is our environment. Our room, our home, our village or town, our family and friends, the air we breathe, the water we drink, the sunshine and the rain – all are part of our environment. Even the environment of two individuals is different. But these environments are interrelated so closely that in a sense we all belong to the same environment.

    This interrelatedness is a matter of ecology. The term “ecology” has been deriving from the Greek word “Oikos” which means home. So, ecology is literally, the science that deals with the home conditions of all living beings. Also, Ecology deals with the interrelationships between living beings and their environment.

    Previously, in the old days, a natural balance was maintained between all living beings including men and plants. Also, They were living together in harmony and the natural setting. Human beings live in harmony with Nature including the Forest which was providing most of the necessities for living. But over recent years, due to rapid industrialization, urbanization, nature has been adversely affecting.

    Extra explain:

    The environment seriously degrades and there are imbalance and disharmony. Also, the water and air have been polluted to a great extent because of the destruction of the vast forest on the earth. Because, the forest plays an important role in the conservation of water, purification of air and supplying many useful things to human beings.

    Another disaster that is posed before us is that due to the rapid growth of urbanization. Also, the living conditions of the people in the cities and towns have been deteriorating. There is the pollution of water, air, and noise, etc. due to the rapid expansion of industries, power stations, and motor vehicles, etc. Everywhere, there is pollution. It has been proving harmful to the physical and mental health of the people.

    All the Influences on the growth of the individual constitute the environment. As well as, the environment includes several situations or experiences that influence the development of the individual. So the environment of an individual comprises all the physical and social factors around him which directly affect his living including the working conditions.

    The various environmental factors are interrelated. Also, the physical environment includes living and non-living, the geographical landmarks, topography, and climatic conditions, man-made features like buildings, roads, transport and other facilities like health, sanitation, nutrition aspects. As well as, the social environment consists of the family and community life, fairs and festivals, modes of production and supply of essential commodities.

    The various environmental factors are inter-related. We know the environment of an individual comprises all the physical and social factors. Then only the individual can survive on his earth. For this reason, our environment is to protect.

    Role of Environmental Education (EE):

    Education regards as an important instrument and means for generating proper awareness and adequate knowledge and skills regarding environmental protection. It is, therefore, felt essential to develop education about the environment, education for the environment and education through the environment.

    So as a whole, it will be environmental education.

    • They should integrate into the whole system of formal education at all levels.
    • It adopts a holistic perspective that will examine the ecological, social, cultural and other aspects of particular problems.
    • They should center on practical problems related to real life.
    • They should aim at building up a sense of values.

    However, it universally agrees that environmental education should be interdisciplinary, drawing from biological, sociological, anthropological, economic, and political and human resources. It is also agreed that a conceptual approach in teaching environmental education is the best.

    It also involves decision-making and development strategies for promoting environmental protection. As well as, it treats as a discipline in which various subjects like Zoology, Botany, Chemistry, Mathematics, and Physics are including. This makes it imperative to train specialists in environmental education for planning,’ management, development, and taking remedial measures for solving the problems.

    The NCERT developed the guidelines for the school curriculum based on the Education Commission, 1964-66. It has also prepared a resource material on the use of the environment as a basis for meaningful learning in Primary Education.

    The National Policy on Education 1986 has also given a special place of significance to education and the environment. So a great need is being felt to create awareness for the protection of the environment by redesigning the objectives, methods, and curriculum in the field of education.

  • Development Banks: Features, Functions, and Objectives

    Development Banks: Features, Functions, and Objectives

    Development Banks essentially a multi-purpose Financial Institution with a broad development outlook. This article explains about Development Banks and with their topics – Features, Functions, and Objectives. The important functions of development banks in India.

    Learn, Explain each topic of Development Banks – Features, Functions, and Objectives.

    A development bank may, thus, be defined as a financial institution concerned with providing all types of financial assistance (medium as well as long-term) to business units, in the form of loans, underwriting, investment and guarantee operations, and promotional activities-economic development in general, and industrial development, in particular. In short, a development bank is a development-oriented bank; The Development Banks and their topics Features, Functions, and Objectives below are.

    Features of Development Banks:

    Following are the main characteristics or features of development banks:

    • It is a specialized financial institution, provides medium and long-term finance to business units.
    • Unlike commercial banks, it does not accept deposits from the public, It is not just a term-lending institution. It’s a multi-purpose financial institution.
    • It is essentially a development-oriented bank. Its primary objective is to promote economic development by promoting investment and entrepreneurial activity in a developing economy. It encourages new and small entrepreneurs and seeks balanced regional growth.
    • They provide financial assistance not only to the private sector but also to the public sector undertakings, It aims at promoting the saving and investment habit in the community.
    • It does not compete with the normal channels of finance, i.e., finance already made available by the banks and other conventional financial institutions. Its major role is of a gap-filler, i. e., to fill up the deficiencies of the existing financial facilities.
    • Its motive is to serve the public interest rather than to make profits. It works in the general interest of the nation.

    Functions of Development Banks:

    Development banks have been started with the motive of increasing the pace of industrialization. The traditional financial institutions could not take up this challenge because of their limitations. To help all round industrialization development banks were made multipurpose institutions. Besides financing, they were assigned promotional work also.

    Some important functions of these institutions discuss as follows:

    Financial Gap Fillers:

    Development banks do not provide medium-term and long-term loans only but they help industrial enterprises in many other ways too.

    These banks subscribe to the bonds and debentures of the companies, underwrite their shares and debentures and, guarantee the loans raised from foreign and domestic sources. They also help undertakings to acquire machinery from within and outside the country.

    Undertake Entrepreneurial Role:

    Developing countries lack entrepreneurs who can take up the job of setting up new projects. It may be due to a lack of expertise and managerial ability. Development banks were assigned the job of entrepreneurial gap filling.

    They undertake the task of discovering investment projects, promotion of industrial enterprises, provide technical and managerial assistance, undertaking economic and technical research, conducting surveys, feasibility studies, etc. The promotional role of the development bank is very significant for increasing the pace of industrialization.

    Commercial Banking Business:

    Development banks normally provide medium and long-term funds to industrial enterprises. The working capital needs of the units are met by commercial banks. In developing countries, commercial banks have not been able to take up this job properly. Their traditional approach in dealing with lending proposals and assistance on securities has not helped the industry.

    Development banks extend financial assistance for meeting working capital needs to their loan if they fail to arrange such funds from other sources. So far as taking up other functions of banks such as accepting of deposits, opening letters of credit, discounting of bills, etc. there is no uniform practice in development banks.

    Joint Finance:

    Another feature of the development bank’s operations is to take up joint financing along with other financial institutions. There may be constraints of financial resources and legal problems (prescribing maximum limits of lending) which may force banks to associate with other institutions for taking up the financing of some projects jointly.

    It may also not be possible to meet all the requirements of concern by one institution, So more than one institution may join hands. Not only in large projects but also in medium-sized projects it may be desirable for a concern to have, for instance, the requirements of a foreign loan in a particular currency, met by one institution and under the writing of securities met by another.

    Refinance Facility:

    Development banks also extend the refinance facility to the lending institutions. In this scheme, there is no direct lending to the enterprise. The lending institutions are provided funds by development banks against loans extended’ to industrial concerns.

    In this way, the institutions which provide funds to units are refinanced by development banks. In India, the Industrial Development Bank of India (IDBI) provides reliance against term loans granted to industrial concerns by state financial corporations. commercial banks and state co-operative banks.

    Credit Guarantee:

    The small scale sector is not getting proper financial facilities due to the clement of risk since these units do not have sufficient securities to offer for loans, lending institutions are hesitant to extend the loans. To overcome this difficulty many countries including India and Japan have devised the credit guarantee scheme and credit insurance scheme.

    • In India, a credit guarantee scheme was introduced in 1960 with the object of enlarging the supply of institutional credit to small industrial units by granting a degree of protection to lending institutions against possible losses in respect of such advances.
    • In Japan, besides credit guarantee, insurance is also provided. These schemes help small-scale concerns to avail loan facilities without hesitation.
    Underwriting of Securities:

    Development banks acquire securities of industrial units through either direct subscribing or underwriting or both. The securities may also be acquired through promotion work or by converting loans into equity shares or preference shares. So, as learn about development banks may build portfolios of industrial stocks and bonds.

    These banks do not hold these securities permanently. They try to disinvest in these securities in a systematic way which should not influence the market prices of these securities and also should not lose managerial control of the units. Development banks have become worldwide phenomena.

    Their functions depend upon the requirements of the economy and the state of development of the country. They have become well-recognized segments of the financial market. They are playing an important role in the promotion of industries in developing and underdeveloped countries.

    Objectives of Development Banks:

    The main objectives of the development banks are:

    • They promote industrial growth.
    • To develop backward areas.
    • To create more employment opportunities.
    • The generate more exports and encourage import substitution.
    • To encourage modernization and improvement in technology.
    • To promote more self-employment projects.
    • The revive sick units.
    • To improve the management of large industries by providing training.
    • To remove regional disparities or regional imbalance.
    • They promote science and technology in new areas by providing risk capital, and.
    • To improve the capital market in the country.

    Development Banks Features Functions and Objectives - ilearnlot
    Development Banks: Features, Functions, and Objectives!

    The Few important functions of development banks in India are as follows:

    • They promote and develop small-scale industries (SSI) in India.
    • To finance the development of the housing sector in India.
    • To facilitate the development of large-scale industries (LSI) in India.
    • They help in the development of the agricultural sector and rural India.
    • To enhance the foreign trade of India.
    • They help to review (cure) sick industrial units.
    • To encourage the development of Indian entrepreneurs.
    • To promote economic activities in backward regions of the country.
    • They contribute to the growth of capital markets.

    Now let’s discuss each important function of development banks one by one.

    Small Scale Industries (SSI):

    Development banks play an important role in the promotion and development of the small-scale sector. The government of India (GOI) started the Small Industries Development Bank of India (SIDBI) to provide medium and long-term loans to Small Scale Industries (SSI) units. SIDBI provides direct project finance and equipment finance to SSI units. It also refinances banks and financial institutions that provide seed capital, equipment finance, etc., to SSI units.

    Development of Housing Sector:

    Development banks provide finance for the development of the housing sector. GOI started the National Housing Bank (NHB) in 1988.

    NHB promotes the housing sector in the following ways:

    • It promotes and develops housing and financial institutions.
    • It refinances banks and financial institutions that provide credit to the housing sector.
    Large Scale Industries (LSI):

    The development bank promotes and develops large-scale industries (LSI). Development financial institutions like IDBI, IFCI, etc., provide medium and long-term finance to the corporate sector. They provide merchant banking services, such as preparing project reports, doing feasibility studies, advising on the location of a project, and so on.

    Agriculture and Rural Development:

    Development banks like the National Bank for Agriculture & Rural Development (NABARD) helps in the development of agriculture. NABARD started in 1982 to provide refinance to banks, which provide credit to the agriculture sector and also for rural development activities. It coordinates the working of all financial institutions that provide credit to agriculture and rural development. It also provides training to agricultural banks and helps to conduct agricultural research.

    Enhance Foreign Trade:

    Development banks help to promote foreign trade. The government of India started the Export-Import Bank of India (EXIM Bank) in 1982 to provide medium and long-term loans to exporters and importers from India. It provides Overseas Buyers Credit to buy Indian capital goods. Also, encourages abroad banks to provide finance to the buyers in their country to buy capital goods from India.

    Review of Sick Units:

    Development banks help to revive (cure) sick-units. The government of India (GOI) started the Industrial Investment Bank of India (IIBI) to help sick units. IIBI is the main credit and reconstruction institution for a revival of sick units. It facilitates modernization, restructuring, and diversification of sick-units by providing credit and other services.

    Entrepreneurship Development:

    Many development banks facilitate entrepreneurship development. NABARD, State Industrial Development Banks, and State Finance Corporations provide training to entrepreneurs in developing leadership and business management skills. They conduct seminars and workshops for the benefit of entrepreneurs.

    Regional Development:

    The development bank facilitates rural and regional development. They provide finance for starting companies in backward areas. Also, they help companies in project management in such less-developed areas.

    Contribution to Capital Markets:

    The development bank contributes to the growth of capital markets. They invest in equity shares and debentures of various companies listed in India. Also, invest in mutual funds and facilitate the growth of capital markets in India.