Tag: Sources

  • What is the Executive Information System (EIS)?

    What is the Executive Information System (EIS)?

    Executive Information System (EIS) Meaning, Factors, Characteristics, Advantages, Pros, Benefits, Merits, Disadvantages, Cons, Limitation, and Demerits; An Executive Info System (EIS) is a kind of decision support system (DSS) used in associations to help managers in decision making. It does so by providing easy entrance to important data needed in an institution to achieve strategic objectives. An EIS usually has graphical presentations on a user-friendly interface. They can use for monitoring enterprise performance in many different types of organizations as well as for identifying opportunities and issues.

    Here is the article to explain, Executive Information System (EIS) with their Meaning, Factors, Characteristics, Advantages, Pros, Benefits, Merits, Disadvantages, Cons, Limitation, and Demerits!

    Early they were developed on mainframe computers as computer-based programs to provide the description, sales performance, and/or market research data for senior managers of an enterprise. Executives, however, were not all lettered or sure about the computers. Also, EIS data endorsed only executive-level decisions that did not necessarily support the entire organization or business. Current EIS data is available on local area networks (LANs) throughout the business or corporation, facilitated by personal computers and workstations.

    Workers can access business data to help make decisions in their workplaces, departments, divisions, etc. This enables workers to provide relevant information and ideas above and below the level of their business. Administrative support systems are intended to be used directly by senior managers to support unscheduled strategic management judgments. Often such data is external, unstructured, and even doubtful. Often, the exact scope and context of such details are not known in advancement.

    What is the meaning of Executive Information System (EIS)?

    An EIS is an Information System that can transform the business data into insights and help the top-level executives of a company in the domain of corporate business intelligence; which consists of the processes, applications, and also practices that support executive decision making. This system delivers the most recent operational data gathered from various internal and external databases.

    A Typical Executive Information System;

    Executive Information System focuses on the present, usually presenting the executive with information within the budgeting time-frame of the organization. Furthermore, it is exclusively a display technology, oriented to presenting static reports graphs, and textual information on demand. It offers no analysis capabilities to help the executive explain, diagnose, and also understand the information presented to them.

    Decision Support System:

    A Decision Support System (DSS) is a collection of integrated software applications and hardware that help the analyst, managers of an organization in the decision-making process. Organizations depend on decision support tools, techniques, and models to help them assess and resolve everyday business problems. And make decisions. The decision support system is data-driven, as the entire process feeds off of the collection and also the availability of data to analyze. Business Intelligence (BI) reporting tools, processes, and methodologies are key components to any decision support system and provide end-users with rich reporting, monitoring, and data analysis.

    Key Factors and Characteristics of Executive Information System (EIS);

    The below-mentioned formation describes key factors and characteristics of EIS,

    • Exact data – They provide absolute data from its current database.
    • Incorporate external and internal data – They integrate external and internal data. Also, The external data was collected from different sources.
    • Offering information – They describe available data in graphical form which helps to analyze it easily.
    • Trend research and analysis – They help executives of the institutions to data prediction based on trend data.
    • Easy to utilize – They very the simplest system to use.

    Advantages and Disadvantages of Executive Information System;

    The following Executive Information System (EIS) Advantages, Pros, Benefits, Merits, Disadvantages, Cons, Limitation, and Demerits below are;

    Pros, Benefits, Merits, and Advantages of EIS;
    • Trend Research and Analysis.
    • Revision and Improvement of corporate version in the marketplace.
    • Development of managerial and administrative leadership skills.
    • Improves conclusion or decision-making.
    • Easy to use by senior executives.
    • The more useful reporting method, and.
    • Also, Improved post efficiency.
    Cons, Limitation, Demerits, and Disadvantages of EIS;

    Sources for the information processed by an Executive Information System (EIS);

    The sources for the information processed by an EIS are as follows:

    Hardware Sources;

    The basic computer hardware needed for a typical EIS includes four components:

    • Input data-entry devices; These devices allow the executive to enter, verify, and update data immediately.
    • The central processing unit (CPU); CPU is the kernel because it controls the other computer system components.
    • Data storage files; The executive can use this part to save useful business information, and this part also help the executive to search historical business information easily
    • Output devices; Which provide a visual or permanent record for the executive to save or read. Also, This device refers to the visual output device or printer.
    Software Sources;

    The basic software needed for a typical EIS includes four components:

    • Text-based software; The most common form of text probably documents.
    • Database; Heterogeneous databases residing on a range of vendor-specific and open computer platforms help executives access both internal and external data.
    • Graphic base; Graphics can turn volumes of text and statistics into visual information for executives. Typical graphic types are time series charts, scatter diagrams, maps, motion graphics, sequence charts, and comparison-oriented graphs (i.e., bar charts).
    • Model base; The EIS models contain routine and also special statistical, financial, and other quantitative analyses.

    Levels of management need it;

    An Executive Information System (EIS) is a type of management information system intended to facilitate and support the information and decision-making needs of senior executives by providing easy access to both internal and external information relevant to meeting the strategic goals of the organization. Also, It exists commonly considered as a specialized form of a Decision Support System (DSS).

    The information presented to the executive may include financial information, work in process, sales figures, market trends, industry statistics, and the market price of the firm’s shares performance data and trend analysis. Also, Graphical interfaces (GUI) make it possible to request reports and queries without resorting to programming.

    Is there a relationship between global computing and executive information systems? Explain.

    They believe there is a strong relationship between global computing and Executive information systems. Senior executives of the organizations spread globally need constant and also timely access to global information for making decisions. This information originates in different places worldwide for a global organization and needs to organize before it can use for decision-making. The organization and management of global corporate data present unique challenges for developing global executive information systems (EIS) for senior executives of global companies.

    The objective of a global EIS should be to provide executives with a consistent, integrated, and summarized view of operational data from subsidiaries worldwide. Due to global computing, the EIS also provides access to external data that capture from different sources. Also, The system facilitates integrating the internal and external data for effective decision-making globally.

    What is the Executive Information System (EIS) Image
    What is the Executive Information System (EIS)?
  • What is the MMIS (Multinational Marketing Information System)?

    What is the MMIS (Multinational Marketing Information System)?

    A multinational marketing information system (MMIS) is a tool that aims to reduce the chances of mistakes being made when launching marketing programs and initiatives within the multinational market. The Marketing Information System’s objective is to realize the importance and role of creating and maintaining informational basics for business decision-making. The development starts in defining the marketing information system structure and determining the databases (internal and external) and computer applications.

    MMIS (Multinational Marketing Information System): Meaning, Definition, Sources, and Importance.

    Multinational marketing research is the systematic and objective acquisition of data about the market in which the company wishes to penetrate. It is a support tool for decision-makers to reach a sound decision that involves the proper identification and implementation of their multinational marketing strategies and programs targeting the identified market.

    Marketing research as part of the multinational marketing information system should be able to utilize for the multinational company (or even domestic companies willing to go global) to establish the most favored marketing mix for the product or service. In addition to the marketing mix, market research also aims to determine the most effective mix of product characteristics, pricing approaches, promotional methods and effective supply chains that would tailor fit the identified market.

    Multinational Market Analysis:

    For the process of data analysis and acquisition, the MMIS aims to gather market data by tapping into three sources namely internal records, market intelligence, and marketing research that often integrate into a single database. These data then analyze and report to senior management for effective marketing decision-making. The multinational aspect of the marketing information system creates for a more complex collection process of data acquisition and analysis as more factors consider (such as sales per country or region, political stability, cultural differences, etc.), but the fundamental aspects of the MMIS are practically the same as that of the domestic MIS.

    Meaning and Definition of MMIS (Multinational Marketing Information System):

    Marketing Information System is a computer-based system that works in conjunction with another functional information system to support the firm’s management in solving problems that relate to marketing the firm’s products. Multinational Marketing Information Systems Introduction Multinational Marketing Information Systems (MMIS) is one of the newest entrances in the field of marketing which beliefs to be able to provide a solution to international marketing. MMIS intends to gather disparate items of data into a coherent body of information that would use by a company’s management to analyze raw data available to them and make appropriate decisions.

    Sources of the MMIS (Multinational Marketing Information System):

    The three sources of data should fall into place together continuously, that is internal reporting sources covering information obtained from within the organization may use in being able to prepare and develop studies focused on marketing research. On a similar note, being able to scan the environment of the market creates for a more effective and grounded marketing intelligence that can use in junction with internal reporting processes that feed into the marketing research function.

    All the data gathered from the internal reporting process, from marketing intelligence, and marketing research should be analyzed and assessed to determine market trends for a given area or region the company is focused on. In essence, the process of being able to gather the needed market data in MMIS is similar to that of creating comprehensive market research for a single country.

    More information:

    The main difference lies in the fact that the data that collects from the market pertains to the product or service; and, its performance in the multinational market, not to mention global and local competitors in the area or region of focus. It involves collecting data from at least one country other than the domestic country and may use data from several countries, or even global data.

    The kind and amount of resources needed to effectively conduct the MMIS are likely to be greater than for single country research due to the increased geographical spread of collecting the data, as well as the complexities of analyzing and reporting on the data that acquires. Nevertheless, this kind of system is essential for multinational corporations aiming to penetrate a given market or place their product effectively to gain a sustainable competitive advantage.

    The market researchers involve having to have the necessary skills and training to effectively appreciate the diverse culture that he/she has to consider, as well as the language skills appropriate for the countries being investigated. This yields a holistic information system, mainly because it not only focuses on cold market and product supply and demand trends but also takes into consideration the socio-cultural aspect of the region being analyzed.

    Importance of MMIS (Multinational Marketing Information System):

    MMIS is important for the company to get a competitive advantage in this global market. It brings flexibility in responding to competitors in different countries and Markets. It gives the ability to respond in one country or a region of a country- to a change in another.

    They give the ability to keep abreast of market needs around the world. It gives the ability to transfer knowledge between units in different countries. It reduces the overall cost of operation.

    Increased efficiency and effectiveness in meeting customer needs. It gives the ability to achieve and maintain diversity in the firm’s products; and, in how they are producing and distribute. It reduces the time of communication

    Problems in Implementing MMIS:

    The company can face the number of problems to implement MMIS. The most common problem gives below:

    Politically Imposed Constraints. Restriction on Hardware purchase and Imports, Restrictions on Data processing. Restriction on Data Communication (Transborder Data Flow TDF). Technological Problems, Lack of Support from Subsidiary Manager.

    MMIS (Multinational Marketing Information System)
    What is the MMIS (Multinational Marketing Information System)? People’s Image from Pixabay.

    Explanation of MMIS (Multinational Marketing Information System):

    In general, marketing research is the process wherein vital information about the market gathers through data acquisition and analysis to help the senior management reduce the risk associated with decision-making through the means of an effective information dissemination system. Because of this, the marketing research tool plays a vital role in the overall process of management information systems. With the expansion of countries into the global market; multinational marketing research has taken flight and has ushered in a new field of research.

    Multinational marketing research according to several sources on this field is systematic; and, objective acquisition of data about the market in which the company wishes to penetrate. It is a support tool for decision-makers to reach a sound decision that involves; the proper identification and implementation of their multinational marketing strategies and programs targeting the identified market. Marketing research as part of the multinational marketing information system should be able to utilize for the multinational company (or even domestic companies willing to go global) to establish the most favored marketing mix for the product or service.

    More explanation:

    In addition to the marketing mix, market research also aims to determine the most effective mix of product characteristics, pricing approaches, promotional methods and effective supply chains that would tailor fit the identified market. Every multinational company has some sort of mechanism to acquire a particular kind of data from a given target market and develop these acquired data into relevant information to provide senior management with the necessary information for them to effectively decide on matters concerning proper marketing plans; and, activities geared towards sustainable competitive advantage within the market.

    This is where MMIS goes into action. The MMIS concentrates on the provision of the data related to the market being targeted by the company. These marketing data contribute to the overall management information system for the company as a means of effectively placing their marketing plans. In terms of breaking down the system, a marketing information system describes as the integration of several resources such as human, equipment, technology; and, data gathering methodologies as a mean of gathering, sorting, analyzing, evaluating, and distributing information to decision-makers in a manner that addresses necessity, practicality, timeliness, and accuracy.

    The necessary data that needs to fuel the MMIS acquire from a balance between formal; and, informal communication mediums that utilizes also a combination of internal and external sources within the company. Formal internal sources of data that might prove relevant would be reports from the sales department, monitoring and trending report from sales groups. On the other hand, informal sources of information are information acquire from gatherings with co-workers and associates.

  • Water Pollution: Sources, Effects, and Control

    Water Pollution: Sources, Effects, and Control

    Water pollution can define as an alteration in physical, chemical, or biological characteristics of water making it unsuitable for designated use in its natural state. After, Air Pollution, Noise Pollution maybe you’ll like to know about another Pollution. If yes? So, this article explains Water Pollution, and its topics – sources, effects, and control. Also, water pollution is the contamination of water bodies (e.g. lakes, rivers, oceans, and groundwater).

    Here is article explains the Water Pollution and their topics; Sources, Effects, and Control.

    Also, water pollution affects plants and organisms living in these bodies of water, and in almost all cases the effect is damaging not only to individual species and populations but also to the natural communities.

    Sources of Water Pollution:

    Water is an essential commodity for survival. We need water for drinking, cooking, bathing, washing, irrigation, and industrial operations. Most of the water for such uses comes from rivers, lakes, or groundwater sources. Also, Water has the property to dissolve many substances in it; therefore, it can easily get polluted. Point sources or non-point sources can cause pollution of water. Point sources are specific sites near water, which directly discharge effluents into them.

    After Air pollution, the types of pollution one of them. Major point sources of water pollution are industries, power plants, underground coal mines, offshore oil wells, etc. Also, The discharge from non-point sources is not at any particular site; rather, these sources are scattered, which individually or collectively pollute water. Surface run-off from agricultural fields, overflowing small drains, rainwater sweeping roads, and fields, atmospheric deposition, etc. are the non-point sources of water pollution.

    1] Ground-water pollution:

    Ground-water forms about 6.2% of the total water available on planet earth and is about 30 times more than surface water (streams, lakes, and estuaries). Also, ground-water seems to be less prone to pollution as the soil mantle through which water passes helps to retain various contaminants due to its cation exchange capacity.

    However, there are several potential sources of ground-water pollution. Septic tanks, industry (textile, chemical, tanneries), deep well injection, mining, etc. are mainly responsible for ground-water pollution, which is irreversible. Ground-water pollution with arsenic, fluoride, and nitrate are posing serious health hazards.

    2] Surface water pollution:

    The major sources of surface water pollution are:

    1. Sewage: Pouring the drains and sewers in freshwater bodies causes water pollution. The problem is severe in cities.
    2. Industrial effluents: Industrial wastes containing toxic chemicals, acids, alkalis, metallic salts, phenols, cyanides, ammonia, radioactive substances, etc. are sources of water pollution. They also cause thermal (heat) pollution of water.
    3. Synthetic detergents: Synthetic detergents used in washing and cleaning produce foam and pollute water.
    4. Agrochemical: Agrochemical like fertilizers (containing nitrates and phosphates) and pesticides (insecticides, fungicides, herbicides, etc.) washed by rainwater and surface run-off pollute water.
    5. Oil: Oil spillage into seawater during drilling and shipment pollute it.
    6. Waste heat: Waste heats from industrial discharge increases the temperature of water bodies and affects the distribution and survival of sensitive species.

    Effects of Water Pollution:

    Following are some important effects of various types of water pollutants:

    1] Oxygen demanding wastes:

    Microorganisms present in water decompose organic matter, which reaches water bodies. For this degradation oxygen dissolved in water consume. Dissolved oxygen (DO) is the amount of oxygen dissolved in a given quantity of water at a particular temperature and atmospheric pressure. The amount of dissolved oxygen depends on aeration, photosynthetic activity in the water, respiration of animals and plants and ambient temperature.

    The saturation value of DO varies from 8-15 mg/L. For active fish species (trout and Salmon) 5-8 mg/L of DO require whereas less desirable species like carp can survive at 3.0 mg/L of DO. Lower DO may be harmful to animals especially fish populations. Oxygen depletion (deoxygenating) helps in the release of phosphates from bottom sediments and causes eutrophication.

    2] Nitrogen and Phosphorus Compounds (Nutrients):

    The addition of compounds containing nitrogen and phosphorus helps in the growth of algae and other plants which when die and decay consume oxygen of water. Under anaerobic conditions, foul-smelling gases are producing. Excess growth or decomposition of plant material will change the concentration of CO2, which will further change the pH of water. Changes in pH, oxygen, and temperature will change many Physico-chemical characteristics of water.

    3] Pathogens:

    Many wastewaters, especially sewage, contain many pathogenic (disease-causing) and non- pathogenic microorganisms and many viruses. Waterborne diseases like cholera, dysentery, typhoid, jaundice, etc. are spread by water contaminated with sewage.

    4] Toxic Compounds:

    Pollutants such as heavy metals, pesticides, cyanides and many other organic and inorganic compounds are harmful to aquatic organisms. Some of these substances like pesticides, methyl mercury, etc. move into the bodies of organisms from the medium in which these organisms live. Substances like DDT are not water-soluble and have an affinity for body lipids. These substances tend to accumulate in the organism’s body.

    This process calls bioaccumulation. Also, The concentration of these toxic substances builds up at successive levels of the food chain. This process calls biomagnifications. Toxic substances polluting the water ultimately affect human health. Some heavy metals like lead, mercury, and cadmium cause various types of diseases. Mercury dump into water transforms into water-soluble methyl mercury by bacterial action. Methyl mercury accumulates in fish.

    Extra knowledge:

    In 1953, people in Japan suffered from the numbness of body parts, vision and hearing problems, and abnormal mental behavior. This disease called Minamata disease occurred due to the consumption of methyl mercury-contaminated fish caught from Minamata bay in Japan. The disease claimed 50 lives and permanently paralyzed over 700 persons. Pollution by another heavy metal cadmium had caused the disease called Itai-Itai in the people of Japan.

    The disease was caused by cadmium contaminating rice. The rice fields were irrigated with effluents of zinc smelters and drainage water from mines. In this disease bones, liver, kidney, lungs, pancreas, and thyroid are affecting. Also, Arsenic pollution of groundwater in Bangladesh and West Bengal is causing various types of abnormalities. Nitrate when present in excess in drinking water causes blue baby syndrome or methemoglobinemia. The disease develops when a part of hemoglobin converts into a non-functional oxidized form.

    Nitrate in the stomach partly gets changed into nitrites, which can produce cancer-causing products in the stomach. Excess of fluoride in drinking water causes defects in teeth and bones to call fluorosis. Also, Pesticides in drinking water ultimately reach humans and are known to cause various health problems. DDT, aldrin, dieldrin, etc. have, therefore, been banned. Recently, in Andhra Pradesh, people suffered from various abnormalities due to the consumption of endosulfan contaminated cashew nuts.

    Water Pollution Sources Effects and Control
    Water Pollution: Sources, Effects, and Control.

    Control of Water Pollution:

    It is easy to reduce water pollution from point sources by legislation. However, due to the absence of defined strategies, it becomes difficult to prevent water pollution from non-point sources.

    The following points may help in reducing water pollution from non-point sources:

    • Judicious use of agrochemical likes pesticides and fertilizers, which will reduce their surface run-off and leaching. Avoid the use of these on sloped lands.
    • Use of nitrogen-fixing plants to supplement the use of fertilizers.
    • Adopting integrated pest management to reduce reliance on pesticides.
    • Prevent run-off of manure. Divert such a run-off to the basin for settlement. Also, nutrient-rich water can use as fertilizer in the fields.
    • Separate drainage of sewage and rainwater should provide to prevent the overflow of sewage with rainwater.
    • Planting trees would reduce pollution by sediments and will also prevent soil erosion.

    For controlling water pollution from point sources – the treatment of wastewater is essential before discharge.

    • Wastewater should properly treat by primary and secondary treatments to reduce the BOD, COD levels up to the permissible levels for discharge.
    • Advanced treatment for the removal of nitrates and phosphates will prevent eutrophication. Before the discharge of wastewater – it should disinfect to kill disease-causing organisms like bacteria.
    • Proper chlorination should finish preventing the formation of chlorinated hydrocarbons or ozone or ultraviolet radiation should do disinfection.
  • Noise Pollution: Sources, Effects, and Control

    Noise Pollution: Sources, Effects, and Control

    Noise Pollution can define as an unpleasant and unwanted sound. We hear various types of sound every day. Sound is mechanical energy from a vibrating source. After, Air Pollution maybe you’ll like to know about another Pollution. If yes? So, this article explains Noise Pollution, and its topics – sources, effects, and control. A type of sound may be pleasant to someone and at the same time unpleasant to others. Also, The unpleasant and unwanted sound is called noise. Sound can propagate through a medium like air, liquid, or solid.

    Here is article explains the Noise Pollution and their topics; Sources, Effects, and Control.

    The sound wave is a pressure perturbation in the medium through which sound travels. Sound pressure alternately causes compression and rarefaction. The number of compressions and rarefactions of the molecules of the medium (for example air) in a unit time is described as frequency. It is expressed in Hertz (Hz) and is equal to the number of cycles per second.

    There is a wide range of sound pressures, which encounter the human ear. Also, An increase in sound pressure does not invoke the linear response of the human ear. A meaningful logarithmic scale has been devised. The noise measurements are expressed as Sound Pressure Level (SPL) which is the logarithmic ratio of the sound pressure to a reference pressure.

    It is expressed as a dimensionless unit, a decibel (dB). The international reference pressure of 2 x 10-5 Pa is the average threshold of hearing for a healthy ear. The decibel scale is a measure of loudness. Noise can affect the human ear because of its loudness and frequency (pitch). Also, The Central Pollution Control Board (CPCB) committee has recommended permissible noise levels for different locations as given in Table;

    Central Pollution Control Board (CPCB) committee has recommended permissible noise levels
    CPCB committee has recommended permissible noise levels.

    Sources of Noise Pollution:

    The main sources of noise are various modes of transportation (like air, road, rail-transportation), industrial operations, construction activities, and celebrations (social/religious functions, elections, etc) electric home appliances. Also, High levels of noise have been recorded in some of the cities of the world. In Nanjing (China) noise level of 105 dB has been recorded, while in some other cities of the world these levels are: Rome 90 dB, New York 88 dB, Calcutta 85 dB, Mumbai 82 dB, Delhi 80 dB, Kathmandu 75 dB.

    Major causes/sources of noise pollution are:

    1] Industrial:

    Progress in technology (industrialization) has resulted in creating noise pollu­tion. Also, Textile mills, printing presses, engineering establishments, and metal works, etc. contribute heavily to noise pollution.

    These operate from workshops located on the ground floors of the residential areas and cause annoyance, discomfort, and irri­tation to the residents exposed to the noise that is inevitably produced.

    For example, the situation is much better in modern planned cities like Chandigarh where the industrial area is kept away from the residential areas and both are sepa­rated from each other by a sufficiently wide green belt.

    2] Automobile or Transport Vehicles:

    The automobile revolution in urban centers has proved to be a big source of noise pollution. Increasing traffic has given rise to traffic jams in congested areas where the repeated hooting of horns by impatient drivers pierce the ears of all road users.

    Noise from airplanes constitutes an increasingly serious problem in big cities like Delhi & Mumbai. Also, airports situated in the vicinity of population centers and airplanes pass over residential areas. Heavy trucks, buses trains, jet-planes, motor-cycles, scooters, mopeds, jeeps—the list of vehicles is endless but the outcome is the same — noise pollution.

    3] Household:

    The household is an industry in itself and is a source of many indoor noises such as the banging of doors, noise of playing children, crying of infants, moving of furniture, a loud conversation of the inhabitants, etc. Besides these are the entertainment equipment in the house, namely the radio, record-players, and television sets. Domestic gadgets like mixer-grinders, pressure cookers, desert coolers, air- conditioners, exhaust fans, vacuum cleaners, sewing, and washing machines are all indoor sources of noise pollution.

    4] Public Address System:

    In India, people need only the slightest of an excuse for using loudspeakers. Also, The reason may be a religious function, birth, death, marriage, elections, dem­onstration, or just commercial advertising. The public system, therefore, contrib­utes in its way towards noise pollution.

    5] Agricultural Machines:

    In modern times, agriculture is highly changing in food farming. They also use modern technic or machines for farming growth. In Tractors, thrashers, harvesters, tube wells, powered tillers, etc. have all made agriculture highly mechanical but at the same time highly noisy. Noise level 90 dB to 98 dB due to the running of farm machines have been recorded in the state of Punjab.

    6] Defense Equipment:

    We talk about Noise pollution, so we can not forget Defense Equipment or security level sources. Also, Defense Equipment is one of them, We have defense tools to protect the country from outside countries. In every country, they manufacture more and more defense equipment for the protection of the countrymen.

    A lot of noise pollution adds to the atmosphere by artillery, tanks, launching of rockets, explosions, exercising of military airplanes, and shooting practices. Also, Screams of jet engines and sonic booms have a deafening impact on the ears and in extreme cases have been known to shatter the window panes and old dilapidated buildings.

    Effects of Noise pollution:

    Noise pollution causes the following effects.

    • Interferes with man’s communication: In a noisy area, communication severely affects.
    • Hearing damage: Noise can cause temporary or permanent hearing loss. It depends on the intensity and duration of the sound level. Auditory sensitivity reduces with a noise level of over 90 dB in the mid-high frequency for more than a few minutes.
    • Physiological and Psychological changes: Continuous exposure to noise affects the functioning of various systems of the body. It may result in hypertension, insomnia (sleeplessness), gastrointestinal and digestive disorders, peptic ulcers, blood pressure changes, behavioral changes, emotional changes, etc.
    Effects or Impacts of Noise Pollution – diagram:
    Effects or Impacts of Noise Pollution - diagram
    Effects or Impacts of Noise Pollution – diagram.

    Noise is generally harmful and a serious health hazard. It has far-reaching consequences and has many physical, physiological as well as psychological ef­fects on human beings. Extra things:

    1] Physical Effects:

    The physical manifestation of noise pollution is the effect on hearing ability. Repeated exposure to noise may result in temporary or permanent shifting of the hearing threshold of a person depending upon the level and duration of exposure.

    The immediate and acute effect of noise pollution is the impairment of hearing (i.e. total deafness). Also, Human ears have sensory cells for hearing. If these cells are subjected to re­peated sounds of high intensity before they have an opportunity to recover fully.

    They can become permanently damaged leading to impairment of hearing. In addition to sensory cells, delicate tympanic membranes or eardrums can also permanently harm by sudden loud noises such as an explosion.

    2] Physiological Effects:

    Physiologica means, relating to the branch of biology that deals with the normal functions of living organisms and their parts. Also, The physiological manifestations of noise pollution are several as mentioned be­low:

    • Headache by dilating blood vessels of the brain.
    • Increase in the rate of heart-beat.
    • Narrowing of arteries.
    • Fluctuations in the arterial blood pressure by increasing the level of choles­terol in the blood.
    • The decrease in heat output.
    • Pain in the heart.
    • Digestive spasms through anxiety and dilation of the pupil of the eye, thereby causing eye-strain.
    • Impairment of night vision.
    • The decrease in the rate of color perception.
    • Lowering of concentration and effect on memory.
    • Muscular strain and nervous breakdown, and.
    • Psychological Effect.
    Noise Pollution Sources Effects and Control
    Noise Pollution: Sources, Effects, and Control.

    Control of Noise Pollution:

    How to control noise pollution? If we do something controlling noise or extra sound out there. So, what they are? The following controlling things below are;

    Reduction in sources of noise:
    • Sources of noise pollution like heavy vehicles and old vehicles may not allow driving in populated areas if they follow as also control some noise.
    • Noise making machines should keep in containers with sound-absorbing media. The noise path will interrupt and will not reach the workers.
    • Proper oiling will reduce the noise from the machinery.
    Use of sound-absorbing silencers:
    • Silencers can reduce noise by absorbing sound. For this purpose, various types of fibrous material could use.
    • Planting more trees having broad leaves.

    Through Law: Legislation can ensure that sound production is minimized at various social functions. Unnecessary horn blowing should restrict especially in vehicle-congested areas.

  • Air Pollution: Sources, Effects, and Control

    Air Pollution: Sources, Effects, and Control

    What is Air Pollution? It is an atmospheric condition in which certain substances (including the normal constituents in excess) are present in concentrations, which can cause undesirable effects on living beings and the environment. These substances include gases, particulate matter, radioactive substances, etc. The question is Briefly describe the sources, effects, and control of air pollution. Air pollution is a change in the physical, chemical, and biological characteristics of air that causes adverse effects on humans and other organisms. The ultimate result is a change in the natural environment and/or ecosystem.

    What are the natural and man-made pollutants that cause air pollution? The discussion of the sources, effects, and control of air pollution.

    Gaseous pollutants include oxides of sulfur (mostly S02, S03) oxides of nitrogen (mostly NO and N02 or NOx), carbon monoxide (CO), volatile organic compounds (mostly hydrocarbons), etc. Particulate pollutants include smoke, dust, soot, fumes, aerosols, liquid droplets, pollen grains, etc. Radioactive pollutants include radon-222, iodine-131, strontium-90, plutonium-239, etc.. The substances that are responsible for causing air pollution are called air pollution. These air pollutants can be either natural (e.g. wildfires) or synthetic (man-made); they may be in the form of gas, liquid or solid.

    Content of Air Pollution Sources Effects and Control
    Content of Air Pollution: Sources, Effects, and Control.

    Sources of Air Pollution:

    Sources of air pollution refer to the various locations, activities, or factors which are responsible for the release of pollutants into the atmosphere. Also, The sources of air pollution are natural and man-made (anthropogenic).

    1] Natural Sources:

    The natural sources of air pollution are volcanic eruptions, forest fires, sea salts sprays, biological decay, photochemical oxidation of terpenes, marshes, extraterrestrial bodies pollen grains of flowers, spores, etc. Radioactive minerals present in the earth’s crust are the sources of radioactivity in the atmosphere.

    The following natural sources of air pollution below are:

    • Dust from natural sources, usually large areas of land with little or no vegetation.
    • Methane, emitted by the digestion of food by animals, for example, cattle.
    • Radon gas from radioactive decay within the Earth’s crust. Also, Radon is a colorless, odorless, naturally occurring, radioactive noble gas that forms from the decay of radium.
    • It considers being a health hazard. Radon gas from natural sources can accumulate in buildings, especially in confined areas such as the basement and it is the second most frequent cause of lung cancer, after cigarette smoking.
    • Smoke and carbon monoxide from wildfires.
    • Volcanic activity, which produces sulfur, chlorine, and ash particulates.
    2] Man-made:

    Man-made sources include thermal power plants, industrial units, vehicular emissions, fossil fuel burning, agricultural activities, etc. Also, Thermal power plants have become the major sources for generating electricity in India, as nuclear power plants couldn’t install as plan. The main pollutants emitted are fly ash and S02. Metallurgical plants also consume coal and produce similar pollutants. Fertilizer plants, smelters, textile mills, tanneries, refineries, chemical industries, paper, and pulp mills are other sources of air pollution.

    Automobile exhaust is another major source of air pollution. Automobiles release gases such as carbon monoxide (about 77%), oxides of nitrogen (about 8%), and hydrocarbons (about 14%). Heavy-duty diesel vehicles spew more NOx and suspended particulate matter (SPM) than petrol vehicles, which produce more carbon monoxide and hydrocarbons.

    3] Indoor Air Pollution:

    The most important indoor air pollution or pollutant is radon gas. Radon gas and its radioactive daughters are responsible for a large number of lung cancer deaths each year. Also, The Radon can emit from building materials like bricks, concrete, tiles, etc., which are deriving from soil containing radium. Radon is also present in groundwater and natural gas and emits indoors while using them.

    Many houses in the under-developed and developing countries including India use fuels like coal, dung-cakes, wood, and kerosene in their kitchens. Complete combustion of a fuel produces carbon dioxide, which may not be toxic. However, incomplete combustion produces toxic gas carbon monoxide. Coal contains varying amounts of sulfur, which on burning produces sulfur dioxide.

    Fossil fuel burning produces black soot. These pollutants i.e. CO, sulfur dioxide, soot, and many others like formaldehyde, benzo- (a) pyrene (BAP) are toxic and harmful to health. BAP is also found in cigarette smoke and consider to cause cancer. Also, A housewife using wood as fuel for cooking inhales BAP equivalent to 20 packets of cigarettes a day.

    Effects of air pollution:

    Air pollution has adverse effects on living organisms and materials.

    1] Effects on Human Health:

    The human respiratory system has several mechanisms for protection from air pollution. The hairs and sticky mucus in the lining of the nose can trap bigger particles. Smaller particles can reach the tracheobronchial system and there get trapped in mucus. Also, They are sent back to the throat by beating hair-like cilia from where they can remove by spitting or swallowing. Years of exposure to air pollutants (including cigarette smoke) adversely affect these natural defenses and can result in lung cancer, asthma, chronic bronchitis, and emphysema (damage to air sacs leading to loss of lung elasticity and acute shortness of breath).

    Suspended particulate can cause damage to lung tissues and diseases like asthma, bronchitis, and cancer especially when they bring with them cancer-causing or toxic pollutants attached on their surface. Sulfur dioxide (S02) causes constriction of respiratory passage and can cause bronchitis like conditions. In the presence of suspended particulate, S02 can form acid sulfate particles, which can go deep into the lungs and affect them severely.

    Oxides of nitrogen especially NO2 can irritate the lungs and cause conditions like chronic bronchitis and emphysema. Also, Carbon monoxide (CO) reaches the lungs and combines with hemoglobin of the blood to form carboxyhemoglobin. CO has an affinity for hemoglobin 210 times more than oxygen. Hemoglobin is, therefore, unable to transport oxygen to various parts of the body. This causes suffocation. Long exposure to CO may cause dizziness, unconsciousness, and even death. Many other air pollutants like benzene (from unleaded petrol), formaldehyde, and particulate like polychlorinated biphenyls (PCBs) toxic metals, and dioxins (from burning of polythene) can cause mutations, reproductive problems, or even cancer.

    2] Effects on Plants:

    Air pollutants affect plants by entering through stomata (leaf pores through which gases diffuse), destroy chlorophyll, and affect photosynthesis. Pollutants also erode the waxy coating of the leaves called a cuticle. Also, Cuticle prevents excessive water loss -and damage from diseases, pests, drought, and frost. Damage to leaf structure causes necrosis (dead areas of the leaf), chlorosis (loss or reduction of chlorophyll causing yellowing of leaf) or epinasty (downward Curling of leaf), and abscission (dropping of leaves). Particulates deposited on leaves can form encrustations and plug the stomata. The damage can result in the death of the plant.

    3] Effects on aquatic life:

    Air pollutants mixing up with rain can cause high acidity (lower pH) in freshwater lakes. This affects-aquatic life especially fishes. Some of the freshwater lakes have experienced total fish death.

    4] Effects on materials:

    Because of their corrosiveness, particulate can cause damage to exposed surfaces. Also, The presence of SO2 and moisture can accelerate the corrosion of metallic surfaces. SO2 can affect fabric, leather, paint, paper, marble, and limestone. Ozone in the atmosphere can cause the cracking of rubber. Oxides of nitrogen can also cause fading of cotton and rayon fibers.

    Air Pollution Sources Effects and Control
    Air Pollution: Sources, Effects, and Control.

    Control of air pollution:

    Air pollution can minimize by the following simple methods:

    • Siting of industries after proper Environmental Impact Assessment studies.
    • Removing sulfur from coal (by washing or with the help of bacteria).
    • Removing NOx during the combustion process.
    • Using low sulfur coal in industries.
    • Removing particulate from stack exhaust gases by employing electrostatic precipitators, bag-house filters, cyclone separators, scrubbers, etc.
    • Vehicular pollution can check by regular tune-up of engines; replacement of more polluting old vehicles; installing catalytic converters; by the engine, modification to have fuel-efficient (lean) mixtures to reduce CO and hydrocarbon emissions; and slow and cooler burning of fuels to reduce NOx emission (Honda Technology).
    • Using the mass transport system, bicycles, etc.
    • Shifting to less polluting fuels (hydrogen gas).
    • Using non-conventional sources of energy.
    • Using biological filters and bio-scrubbers.
    • Planting more trees.

    The following items are commonly used as pollution control devices by industry or transportation devices. They can either destroy contaminants or remove them from an exhaust stream before it emits into the atmosphere.

    1] Particulate Control:

    Mechanical collectors (dust cyclones, multi-cyclones)- Cyclonic separation is a method of removing particulates from an air, gas, or water stream, without the use of filters, through vortex separation. Also, Rotational effects and gravity are used to separate mixtures of solids and fluids. A high speed rotating (air) flow establish within a cylindrical or conical container called a cyclone.

    Air flows in a spiral pattern, beginning at the top (wide end) of the cyclone and ending at the bottom (narrow) end before exiting the cyclone in a straight stream through the center of the cyclone and out the top. Larger (denser) particles in the rotating stream have too much inertia to follow the tight curve of the stream and strike the outside wall, falling then to the bottom of the cyclone where they can remove.

    In a conical system, as the rotating flow moves towards the narrow end of the cyclone the rotational radius of the stream reduces, separating smaller and smaller particles. The cyclone geometry, together with the flow rate, defines the cut point of the cyclone. This is the size of the particle that will remove from the stream with 50% efficiency. Particles larger than the cut point will remove with greater efficiency and smaller particles with lower efficiency.

    2] Electrostatic Precipitators:

    An electrostatic precipitator (ESP), or electrostatic air cleaner is a particulate collection device that removes particles from a flowing gas (such as air) using the force of an induced electrostatic charge.

    Electrostatic precipitators are highly efficient filtration devices that minimally impede the flow of gases through the device, and can easily remove fine particulate matter such as dust and smoke from the air stream.

    In contrast to wet scrubbers which apply energy directly to the flowing fluid medium, an ESP applies energy only to the particulate matter being collecting and therefore is very efficient in its consumption of energy (in the form of electricity).

    3] Particulate Scrubbers:

    The term wet scrubber describes a variety of devices that remove pollutants from a furnace flue gas or other gas streams. In a wet scrubber, the polluted gas stream is brought into contact with the scrubbing liquid, by spraying it with the liquid, by forcing it through a pool of liquid, or by some other contact method, to remove the pollutants. Also, The design of wet scrubbers or any air pollution control device depends on the industrial process conditions and the nature of the air pollutants involved.

    Inlet gas characteristics and dust properties (if particles are present) are of primary importance. Scrubbers can design to collect particulate matter and/or gaseous pollutants. Wet scrubbers remove dust particles by capturing them in liquid droplets. Wet scrubbers remove pollutant gases by dissolving or absorbing them into the liquid.

    Any droplets that are in the scrubber inlet gas must separate from the outlet gas stream using another device referred to as a mist eliminator or entrainment separator (these terms are interchangeable).

  • Business Risk: Explanation, Characteristics, and Sources

    Business Risk: Explanation, Characteristics, and Sources

    What does Business Risk mean? Business risks related to the response of the firm’s earnings before interest and taxes, or operating profits, to changes in sales. When the cost of capital is used to evaluate investment alternatives, it is assumed that acceptance of the proposed projects will not affect the firm’s business risk.

    Know and understand the Explanation of Business Risk.

    The business risk may be defined in terms of the possibility of occurrence of un-favorable events; which maximize chances of losses and minimize chances for gain, in business. The term business risk refers to the possibility of inadequate profits or even losses due to uncertainties e.g., changes in tastes, preferences of consumers, strikes, increased competition, change in government policy, obsolescence etc.

    Every business organization contains various risk elements while doing the business. Business risks imply uncertainty in profits or danger of loss and the events that could pose a risk due to some unforeseen events in the future, which causes the business to fail. The types of projects accepted by a firm can greatly affect its business risk.

    If a firm accepts a project that is considerably more risky than average, suppliers of funds to the firm are quite likely to raise the cost of funds. This is because of the decreased probability of the fund suppliers receiving the expected returns on their money. A long-term lender will charge higher interest on loans if the probability of receiving periodic interest from the firm and ultimately regaining the principal is decreased.

    Common stockholders will require the firm to increase earnings as compensation for increases in the uncertainty of receiving dividend payments or ably appreciation in the value of their stock. In analyzing the cost of capital it is assumed that the business risk of the firm remains unchanged (i.e., that the projects accepted do not affect the variability of the firm’s sales revenues).

    This assumption eliminates the need to consider changes in the cost of specific sources of financing resulting from changes in business risk. The definition of the cost of capital developed in this chapter is valid only for projects that do not change the firm’s business risk.

    Meaning of Business Risk:

    Business risk is that portion of the unsystematic risk caused by the prevailing environment of the business. In other words, business risk is a function of operating conditions being faced by a firm. These risks influence the operating income of a firm and consequently the dividends.

    Every company has its own objectives and goals and aims at a particular gross profit and operating income. It expects itself to pay to its shareholders a certain rate of dividend and plow back some profits.

    For example, an owner of a business may face different risks like in production, risks due to irregular supply of raw materials, machinery breakdown, labor unrest, etc. In marketing, risks may arise due to different market price fluctuations, changing trends and fashions, error in sales forecasting, etc. In addition, there may be the loss of assets of the firm due to fire, flood, earthquakes, riots or war and political unrest which may cause unwanted interruptions in the business operations. Thus business-risks may take place in different forms depending upon the nature and size of the business.

    Definition of Business Risk:

    Definition: By the term “Business risk” we mean the uncertainty with respect to the firm’s operations. It is a type of systematic risk wherein there is volatility associated with the future income or earnings arising from events, circumstances, conditions, action, or inactions that hinders the attainment of goals and objectives and carry out the strategies.

    Business risk refers to the anticipation that the firm may earn lower than expected profits or even suffer losses, because of the uncertainties inherent in the business such as competition, change in customer tastes and preferences, input cost, change in government policies, and so forth. It may impede the business ability to provide returns on the investment.

    Following are cited some popular definition of the term business risk:

    According to B.O.Wheeler,

    “Risk is the chance of loss. It is the possibility of some un-favorable occurrence.”

    According to C.O. Hardy,

    “Risk may be defined as uncertainty in regard to cost, loss, or damage.”

    Characteristics of Business Risk:

    Characteristics of business-risks could be highlighted with reference to its following features:

    The Time.

    In ancient times, business-risks were less and limited. In the present-day-times-characterized by intense competition, advanced technology and globalization of the economy; business-risks are quite severe. Further, in times to come, business-risks are likely to increase in intensity.

    The Size of Business Enterprise.

    Small businesses are less exposed to business-risks; because they enjoy the flexibility of operations and can easily adapt themselves to changing circumstances. On the other hand, the bigger is the size of business; the lesser is the flexibility possessed by it. Hence bigger businesses are more exposed to business risks.

    Nature of Business Risks.

    In case of business enterprises engaged in the manufacture/purchase of necessary items e.g. salt, sugar, oil, cloth etc. there is the lesser risk because demand for most of the necessary item is inelastic or less elastic. On the other hand, business enterprises engaged in the manufacture/purchase of luxury items are more exposed to business-risks; because demand for luxury items is highly elastic.

    Terms of Sales.

    In the case of business enterprises conducting sales only on a cash basis, business-risks are nil; so far as the possibility of bad debts is concerned. On the other hand, business enterprises conducting large scale credit sales are severely exposed to the risk of bad debts.

    The Degree of Competition.

    In those lines of business activities, where there is intense competition; business enterprises are exposed to severe risks caused by the actions and reactions of competitors. As such, business enterprises characterized by monopolistic situations face little risk on account of competition. Actually, in a perfectly monopolistic situation, the business enterprise has no risk caused by competition.

    The Competence of Management.

    The more competent the management of business enterprises is; the lesser is the possibility of losses to be caused as a result of business risks, and vice-versa.

    The Age of the Business Enterprise.

    From this viewpoint, old business enterprises are less exposed to business-risks, because of the experience of successfully handling business-risks, in the past. New business concerns are more exposed to business-risks, because of the lack of experience.

    Opportunities for Gains are Hidden in Business Risks.

    If the management of the business enterprise is able to successfully handle and manage business-risks; these provide many opportunities for gains to the business enterprise.

    Sources of Business Risk:

    Business risk can be divided into two broad Sources, namely;

    • Internal business risk, and.
    • External business risk.

    Now explain;

    Internal Business risks.

    Internal business risk is associated with the internal environment of the firm. The internal business-risks are such that the firm has to conduct its business within its limiting environment. The internal business-risks will vary from firm to firm depending upon the constraints in the internal environment. Thus, each firm has its own set of internal risks and the firm’s success depends upon the ability to coping with these risks.

    The important internal risks include:

    1. Fluctuations in sales.
    2. Research and development.
    3. Personnel Management.
    4. Fixed Cost, and.
    5. Production of a single product.

    The risks that emerge as a result of the events occurring within the organization is termed as an internal risk. These risks can be predicted as the possibility of their incidence, and so, they are controllable in nature. They arise due to factors like strikes & lockouts by a trade union, accidents in the factory, negligence of workers, failure of the machine, technological obsolescence, damages to the goods, fire outbreak, etc.

    External Business risks.

    External business-risks are associated with circumstances beyond a firm’s control. Each firm has to deal with specific external factors that may be unique and peculiar to its industry.

    However, important external factors influencing all businesses are:

    1. Business cycle.
    2. Demographic factors.
    3. Government policies, and.
    4. Social and regulatory factors.

    The risk arising as a result of the events external to the firm and so the firm’s management has no control over it. So, these cannot be forecasted easily. It may arise due to price fluctuations, changes in customer taste, earthquake, floods, changes in government regulations, riots, etc.

    Business Risk Explanation Characteristics and Sources
    Business Risk: Explanation, Characteristics, and Sources, #Pixabay.

    Types of Business Risks:

    Some risks are common to all human being alike everywhere e.g. risks due to fire, theft, flood, earthquakes, cyclones, drought, war, civil riots etc. As such these are not the risks peculiar only to business. Moreover, some risks are insurable with insurance companies.

    Hence, as such, in the present- day-times offering many types and varieties of insurances; these risks could not be termed as risks in the real sense of the term. Accordingly, business-risks are those which are peculiar only to business and are also not- insurable.

    Following is a brief account of the above types of business-risks:

    Natural Types.

    Risks which arise due to the actions of Nature (and hence uncontrollable) are called natural risks. For example, the risk of rainfall not occurring on time or excessive rain­fall causing flood is a serious risk for farmers. Again, there may be the risk of hail storm destroying crops in the field.

    Political Types.

    Risks due to political causes may arise, in the forms of:

    1. Price regulations, restricting profit margins for businessmen.
    2. High rates of taxes, taking away a major part of business profits.
    3. Un-favorable economic policies, discouraging some lines of business activities, and.
    4. Strict legislation imposed on business enterprises etc.

    Social Types.

    Risks due to social causes are those which may arise from consumer behavior or due to changes taking place in the social scene.

    Examples of social risks may be:

    1. Changes in fashions.
    2. Change in the tastes or preference of consumers.
    3. Changes in the income of consumers, and.
    4. Changing social values leading to a new pattern of social life etc.

    Economic Types.

    Some of the economic types leading to business-risks may be:

    1. The rising cost of raw materials due to inflation or crop failure.
    2. The economic recession in industry, leading to poor demand.
    3. Increase in the rate of interest, making borrowings costlier, and.
    4. Pessimistic capital market conditions, discouraging people to invest in companies etc.

    Managerial Types.

    Risks due to managerial types may be (a few examples only):

    1. Wrong estimation of demand by management.
    2. Poor labor-management relations, and.
    3. The inefficient operational life of the business enterprise due to incompetent or untrained managerial staff.

    Competitive Types.

    Competitive Types may cause business-risks e.g. in the form of the following:

    1. Entry of an unduly large number of persons in the same line of business activity, and.
    2. Entry of multinational companies threatening the very survival of domestic companies.

    Technological Types.

    In the present-day times, technology is changing at a very fast pace; so much so that business experts call this phase of changes as a “technological revolution”. The appearance of new technology renders the old technology as obsolete (i.e. out of use); causing severe financial losses to firms operating with old technology. They are virtually compelled to install new technology to ensure their survival amidst intensely competitive conditions.

    Miscellaneous Types.

    Some miscellaneous types of business-risks may be:

    1. Insolvency of a customer.
    2. Worker’s strike.
    3. Sudden power failure.
    4. The premature death of an expert employee or manager, and.
    5. Speculative losses.

    References;

    • https://en.wikipedia.org/wiki/Business_risks.
    • http://www.yourarticlelibrary.com/business/risk-management/business-risk-nature-and-causes-of-business-risk-risk-management/69663.
    • https://accountlearning.com/business-risk-meaning-types-categories-of-business-risks/.
    • https://businessjargons.com/business-risk.html.
  • Public Revenue: Introduction, Meaning, Definition, Sources, and Classification

    Public Revenue: Introduction, Meaning, Definition, Sources, and Classification

    What does Public Revenue mean? Public revenue money receives by a Public. The article on Public Revenue: Introduction, Meaning, Definition, Sources, and Classification. Each explains as, Introduction to Public Revenue, Meaning of Public Revenue, Definition of Public Revenue, Sources of Public Revenue, and Classification of Public Revenue. It is an important tool for the fiscal policy of the Public and is the opposite factor of Public Spending.

    Here are explain the Concept of Public Revenue; their key points – Introduction, Meaning, Definition, Sources, and Classification.

    By Wikipedia; Revenues earned by the government are received from sources such as taxes levied on the incomes and wealth accumulation of individuals and corporations and the goods and services produced, exports and imports, non-taxable sources such as government-owned corporation’s incomes, central bank revenue and capital receipts in the form of external loans and debts from international financial institutions. It is used to benefit the country.

    Governments use the revenue to better develop the country, to fix roads, build homes, fix schools, etc. The money that the government collects pays for the services that are provided for the people. The public sector in three concepts very important, Public Finance, Public Expenditure, and Public Revenue.

    Introduction to Public Revenue:

    Governments (Public) need to perform various functions in the field of political, social & economic activities to maximize social and economic welfare. To perform these duties and functions, the government requires a large number of resources. The revenues from different sources received by the government call public revenues. Some regularly collect whereas some irregularly collect.

    These resources call Public Revenues. Public revenue consists of taxes, revenue from administrative activities like fines, fees, gifts & grants. Revenues are not repayable. Some of them are obtained from the sale of public utilities whereas some are obligatory payments to the government.

    Meaning and Definition of Public Revenue:

    The income of the government through all sources calls public income or public revenue.

    According to Dalton, however, the term “Public Income” has two senses — wide and narrow. In its wider sense, it includes all the incomes or receipts which a public authority may secure during any period. In its narrow sense, however, it includes only those sources of income of the public authority which are ordinarily known as “revenue resources.” To avoid ambiguity, thus, the former is termed “public receipts” and the latter “public revenue.”

    As such, receipts from public borrowings (or public debt) and the sale of public assets are mainly excluded from public revenue. For instance, the budget of the Government of India is classified into “revenue” and “capital.” “Heads of Revenue” include the heads of income under the capital budget are termed as “receipts.” Thus, the term “receipts” includes sources of public income that are excluded from “revenue.”

    There are both rev­enue receipts and capital receipts. Revenue receipts are derived from taxes of different forms. Capital receipts include primary inter­nal market borrowing and also external loans. However, the bulk of state revenue comes from internal sources. The major point of dis­tinction between the two is that while the former has the receipts or earnings of the people as the source, the later has the public prop­erty as the source.

    Sources of Public Revenue:

    The following key points highlight the two main sources of public revenue from India.

    • Tax Revenue, and.
    • Non-Tax Revenue.

    Now, explain;

    A] Tax Revenue:

    Taxes are the first and foremost sources of public revenue. It is compulsory payments to the government without expecting direct benefit or return by the taxpayer. Taxes collected by Government are used to provide common benefits to all mostly in the form of public welfare services. They do not guarantee any direct benefit for the person who pays the tax. It is not based on a direct quid pro quo principle.

    Features of Tax Revenue:

    The main characteristic features of a tax are as follows:

    • A tax is a compulsory payment to pay by the citizens who are liable to pay it. Hence, the refusal to pay a tax is a punishable offense.
    • There is no direct, quid pro quo between the tax-payers and the public authority. In other words, the taxpayer cannot claim reciprocal benefits against the taxes paid. However, as Seligman points out, the state has to do something for the community as a whole for what the taxpayers have contributed in the form of taxes. “But this reciprocal obligation on the part of the government is not towards the individual as such, but towards the individual as part of a greater whole.”
    • A tax is levied to meet public spending incurred by the government in the general interest of the nation. It is a payment for an indirect service to make by the government to the community as a whole.
    • A tax is payable regularly and periodically as determined by the taxing authority.

    Taxes constitute a significant part of public revenue in modern public finance. Taxes have macro-economic effects. Taxation can affect the size and mode of consumption, the pattern of production and distribution of income and wealth. Progressive taxes can help in reducing inequalities of income and wealth by lowering the high-income group’s disposable income.

    Disposable income is meant the income left in the hands of the taxpayer for disbursement after-tax payment. Taxes imply a forced saving in a developing economy. Thus, taxes constitute an important source of development finance.

    Types of Tax Revenue:

    The following types below are;

    1] Union Excise Duties:

    They are, presently, by far the leading source of revenue for the Central Government and are levied on commo­dities produced within the country, but exclu­ding those commodities on which State excise is levied (viz., liquors and narcotic drugs). The most important commodities from the revenue point of view are sugar, cotton, mill cloth, tobacco, motor spirit, matches, and cement.

    2] Customs:

    Customs duties include both import and export duties. These are the second-most important source of revenue for the Central Government.

    3] GST Tax:

    Goods and Services Tax is an indirect tax levied in India on the supply of goods and services. GST levies at every step in the production process but is meant to refund to all parties in the various stages of production other than the final consumer.

    India’s biggest indirect tax reform in the form of Goods and Services Tax (GST) has completed plus 1 year. A comprehensive dual GST was introduced in India from 1 July 2017.

    4] Income Tax:

    Income tax is at present another important source of revenue for the Central Government. It levies on the incomes of individuals, Hindu undivided families, and unregistered firms.

    5] Corporation Tax:

    The income-tax on the net profits of joint-stock companies calls corporation tax.

    6] Wealth Tax:

    It is an annual tax on the net wealth of individuals and Hindu undivided families. It is a progressive tax.

    7] Gift Tax:

    It is a tax on gifts of property by an individual in his lifetime to future succe­ssors.

    8] Capital Gains Tax:

    It applies to capital gains resulting from the sale, exchange or transfer of capital assets.

    9] Hotel Expenditure Tax:

    Recently, a new tax has been levied on those who patronize high-class hotels.

    10] Tax on Foreign Travel:

    Another new tax levied on foreign travel for conserving foreign exchange as well as to raise revenue.

    B] Non-Tax Revenue:

    The revenue obtained by the government from sources other than the tax calls Non-Tax Revenue. Public income received through the administration, commercial enterprises, gifts, and grants is the source of non-tax revenues of the government.

    The following sources of non-tax revenue below are:

    1] Interest Receipts:

    This largest non-tax source of Central Government’s revenue receipts is the interest it earns mainly on the loans it has advanced to State Governments, to financial and industrial enterprises in the public sector.

    2] Surplus Profits of the Reserve Bank of India (RBI):

    The surplus profits of the RBI is also a part of the revenues of the Central Government. In recent years, these have been quite substantial because of the large borro­wing by the Government from the RBI against Treasury Bills for financing the Five-Year Plans.

    3] Currency, Coinage, and Mint:

    The Govern­ment also derives income from running the Currency Note Printing Presses. Moreover, profits are made from the circulation of coins — this profit is the difference between the face value of the coins and their manu­facturing cost.

    4] Railways:

    The railways in India are owned and run by the Government of India. Accor­dingly, they pay a fixed dividend to general revenues, i.e., to the Central Government, on the capital invested in the railways. Besides, a part of the net profits made by the railways is also payable to the Central Government.

    5] Profits of Public Enterprises:

    Public enter­prises owned by the Central Government, e.g., the Steel Authority of India (SAIL), Hindustan Machine Tools (HMT), Bharat Heavy Electricals Ltd. (BHEL), State Trading Corporation (STC). The profits of such Public Sector Units (PSUs) are another source of revenue for the Government of India.

    6] Other Non-Tax Sources of Revenue:

    The main source among them is the Departmental Receipts of the various ministries of the Cen­tral Government by way of fees, penalties, etc.

    Public Revenue Introduction Meaning Definition Sources and Classification
    Public Revenue: Introduction, Meaning, Definition, Sources, and Classification, #Pixabay.

    Classification of Public Revenue:

    A scientific classification enables us to know in what respects these various sources resemble one another and in what ways they differ. Different economists have classified the sources of public revenue differently. Of the various classifications of public revenue available in economic literature, we shall review a few important ones.

    1. Taylor’s Classification:

    The most logical and scientifically based classification of public revenue is however provided by Taylor. He divides public revenue into four categories:

    • Grants and gifts.
    • Taxes.
    • Administrative revenues, and.
    • Commercial revenues.

    Now, explain;

    Grants and gifts:

    Grants-in-aid are how one government provides financial assistance to another to enable it to perform certain specified functions, for example, education and health grants made to the states by the central government.

    Grants-in-aid are the cost payments made by the grantor government and revenue receipts to the grantee, and no obligation of repayment involves. Gifts are voluntary contributions from individuals or institutions for specific purposes. Grants and gifts are voluntary and there is the absence of quid pro quo to the donor.

    Taxes:

    These are compulsory payments made to the government without expecting a direct return of benefits. The taxes involve varying degrees of coercive powers.

    Administrative Revenues:

    Under this group, fees, licenses, fines, and special assessments include. Most of these are voluntary and based upon the direct benefits accruing to the payer. They generally arise as a by-product of the administrative or control function of the government.

    Commercial Revenues:

    These are the receipts by way of prices paid for government-produced goods and services. Under this group, postal charges, tolls, interest on loans of state financial institutions or nationalized banks, tuition fees of public educational institutions include.

    2. Dalton’s Classifications:

    Dalton provides a very systematic, comprehensive and instructive classification of public revenue. In this opinion, there are two main sources of public revenue — taxes and prices. Taxes pay compulsorily whereas prices pay voluntarily by individuals, who enter into contracts with the public authority. Thus, prices are contractual payments.

    Taxes are sub-divided into:
    • Taxes in the ordinary sense.
    • Tributes and indemnities.
    • Compulsory loans, and.
    • Pecuniary penalties for offenses.
    Prices are sub-divided into:
    • Receipts from public property passively held such as rents received from the tenants of public lands.
    • Receipts from public enterprises charging competitive rates.
    • Fees or payments charged for rendering administration services, such as birth and death registration fees, and.
    • Voluntary public debt.

    These two groups must add to another group to make the classification exhaustive. Under this group, the following items include:

    • Receipts from public monopolies, charging higher prices.
    • Special assessments.
    • The issue of new paper money or deficit financing, and.
    • Voluntary gifts.

    3. Seligman’s Classification:

    Seligman classifies public revenue into three groups:

    • Gratuitous revenue.
    • Contractual revenue, and.
    • Compulsory revenue.

    Now, explain;

    Gratuitous revenue; comprises all revenues such as gifts, donations, and grants received by the public authorities free of cost. They are entire of a voluntary nature. Further, these are very insignificant in the total revenue.

    Contractual revenue; includes all those types of revenue which arise from the contractual relations between the public authority and the people. Fees and prices fall into this category. A direct quid pro quo is usually present in these types of revenue.

    Compulsory revenue; includes the income derived by the state from administration, justice, and taxation. Taxes, fines, and special assessments regard as compulsory revenue. These revenues express an element of state sovereignty. It is the most significant type of public revenue in modern times.

  • What is Working Capital? Analysis, with Management

    What is Working Capital? Analysis, with Management

    Working Capital – Its meaning is basically an indicator of an organization’s short-term financial position and is also a measure of its overall efficiency. They obtain by subtracting the current liabilities from the current assets. It is a financial metric which represents operating liquidity available to a business, organization, or other entity, including governmental entities. Along with fixed assets such as plants and equipment, they consider a part of operating capital. So, what is the question going to learn; What is Working Capital? Analysis, with Management.

    Here explains; Working Capital, Its meaning, definition, Analysis, with Management.

    Working capital meaning, also known as net-working-capital, is the difference between a company’s current assets, like cash, accounts receivable, and inventories of raw materials and finished goods, and its current liabilities, like accounts payable. Capital is another word for money and it is the money available to fund a company’s day-to-day operations essentially, what you have to work with. In financial speak, it is the difference between current assets and current liabilities.

    Current assets are the money you have in the bank as well as any assets you can quickly convert to cash if you needed it. Current liabilities are debts that you will repay within the year. So, it is what’s leftover when you subtract your current liabilities from what you have in the bank. In broader terms, It is also a gauge of a company’s financial health. The larger the difference between what you own and what you owe short-term, the healthier the business. Unless, of course, what you owe far exceeds what you own. Then you have negative working capital and are close to being out of business.

    It can calculate as – Working capital Formula:

    Working Capital = Current Assets – Current Liabilities

    What is the meaning of working capital? Also called net working capital, a liquidity ratio measures a company’s ability to pay off its current liabilities with its current assets. It calculates by subtracting current liabilities from current assets.

    Working capital Definition: They can understand as the capital needed by the firm to finance current assets. It is the amount of a company’s current assets minus the number of its current liabilities. They represent the funds available to the enterprise to finance regular operations, i.e. day to day business activities, effectively. It helps gauge the company’s operating liquidity, i.e. how efficiently the company can cover the short-term debt with short-term assets. Current Assets represent those assets that can easily transform into cash within one year. On the other hand, current liabilities refer to those obligations which are to pay within an accounting year.

    Sources of Working Capital:

    The sources for working capital can either be long-term, short-term, or even spontaneous. Spontaneous working capital majorly derives from trade credit including notes payable and bills payable while short-term capital sources include dividend or tax provisions, cash credit, public deposits, trade deposits, short-term loans, bills discounting, inter-corporate loans, and also commercial paper. For the long-term, capital sources include long-term loans, provision for depreciation, retained profits, debentures, and share capital. These are major working capital sources for organizations based on their requirements.

    Here are some additional factors to consider:
    • The types of current assets and how quickly they can convert to cash. If the majority of the company’s current assets are cash and cash equivalents and marketable investments, a smaller amount of capital may be sufficient. However, if the current assets include slow-moving inventory items, a greater amount of capital will be needed.
    • The nature of the company’s sales and how customers pay. If a company has very consistent sales via the Internet and its customers pay with credit cards at the time they place the order, a small amount of capital may be sufficient. On the other hand, for a company in an industry where the credit terms are net 60 days and its suppliers must be paid in 30 days; the company will need a greater amount of capital.
    • The existence of an approved credit line and no borrowing. An approved credit line and no borrowing allow a company to operate comfortably with a small amount of capital.
    • How accounting principles apply. Some companies are conservative in their accounting policies. For instance, they might have a significant credit balance in their allowance for doubtful accounts and will dispose of slow-moving inventory items. Other companies might not provide for doubtful accounts and keep slow-moving inventory items at their full cost.

    Types of Working Capital:

    There are several types of working capital based on the balance sheet or operating cycle view. The balance sheet view classifies working capitals into the net (current liabilities subtracted from current assets featuring in the company’s balance sheet) and gross working capital (current assets in the balance sheet).

    On the other hand, the operating cycle view classifies working capitals into temporary (the difference between net & permanent capital) and permanent (fixed assets) capital. Temporary capital can further break down into reserve and regular capital as well. These are the types of working capital depending on the view that chose. Two types of Working Capital;

    First types, Value;
    • Gross Capital: It denotes the company’s overall investment in the current assets.
    • Net Capital: It implies the surplus of current assets over current liabilities. A positive net capital shows the company’s ability to cover short-term liabilities; whereas a negative net capital indicates the company’s inability to fulfill short-term obligations.
    Second types, Time;
    • Temporary Capital: Otherwise know as variable capital; it is that portion of capital which needs by the firm along with the permanent capital, to fulfill short-term capital needs that emerge out of fluctuation in the sales volume.
    • Permanent Capital: The minimum amount of capital that a company holds to carry on the operations without any interruption, calls permanent capital.

    Other types of working capital include Initial working capital and Regular working capital. The capital requires by the promoters to initiate the business knows as initial working capital. On the other hand, regular it is one that requires the firm to carry on its operations effectively.

    What is Working Capital Analysis?

    It is one of the most difficult financial concepts to understand for the small-business owner. In fact, the term means a lot of different things to a lot of different people. By definition, it is the amount by which current assets exceed current liabilities. The working capital analysis uses to determine the liquidity and sufficiency of current assets in comparison to current liabilities, you definitely understand their meaning also. This information needs to determine whether an organization needs additional long-term funding for its operations, or whether it should plan to shift excess cash into longer-term investment vehicles.

    However, if you simply run this calculation each period to try to analyze working capital; you won’t accomplish much in figuring out what your working capital needs are and how to meet them. A useful tool for the small-business owner is the operating cycle. The operating cycle analyzes the accounts receivable, inventory, and accounts payable cycles in terms of days. In other words, accounts receivable analyze by the average number of days it takes to collect an account. Inventory analyze by the average number of days it takes to turn over the sale of a product. Accounts payable analyze by the average number of days it takes to pay a supplier invoice.

    Explains the analysis:

    The first part of the working capital analysis is to examine the timelines within which current liabilities are due for payment. This can most easily discern by examining an aged accounts payable report, which divides payables into 30-day time buckets. By revising the format of this report to show smaller time buckets; it is possible to determine cash needs for much shorter time intervals. The timing of other obligations, such as accrued liabilities, can then be layered on top of this analysis to provide a detailed view of exactly when obligations must pay.

    Next, engage in the same analysis for accounts receivable, using the aged accounts receivable report, and also with short-term time buckets. The outcome of this analysis will need to revise for those customers that have a history of paying late so that the report reveals a more accurate assessment of probable incoming cash flows.

    A further step is to examine any investments to see if there are any restrictions on how quickly they can be sold off and converted into cash. Finally, review the inventory asset in detail to estimate how long it will be before this asset can be converted into finished goods, sold, and cash received from customers. The period required to convert inventory into cash may be so long that this asset is irrelevant from the perspective of being able to pay for current liabilities.

    What is Working Capital Management?

    Above the meaning of working capital, you understand them; It is nothing but the difference between current assets and current liabilities. In other words, skilled executive capital management means ensuring adequate liquidity in the business; be able to meet short-term expenses and debt. Working Capital Management a strategy adopt by business managers to monitor the working capital of the business. It is a fundamental concept that calculates and assesses a company’s financial and operational health.

    There is a strategy adopted by business managers to monitor the capital (that means current assets and current liabilities) by the business managers. It is a fundamental concept that calculates and assesses a company’s financial and operational health. Working capital management deals with controlling the proposed free credit period for account capital management; believe that the effective implementation of the credit policy remains the optimum stock and cash level.

    It speeds up the company’s capital cycle and makes the situation of liquidity easier. Managers also try and extend the available credit from the payment of the account and thus take advantage of the business credit; which is generally considered to be free working capital for a certain period. It is an easily understood concept that can be linked to a person’s home. It seems that a person collects cash from his income and how he is planning to spend on his needs.

    Important area:

    Working capital management is a very important area of business when selling mid-market businesses. Effective working capital management means that the business owner will keep their level as low as possible; while still there will be enough funds to run the business. At the point of sale, a buyer will look at historical levels to set non-cash working capital in a reasonable amount to leave the acquisition after the business.

    Sellers will usually be able to extract extra cash from the business before the sale. If the average non-cash is maintained at a low level on the historical level, buyers will usually ask for the comparative level. The same is true if the inefficient level of working capital is maintained at a higher level. On sale, the level will have a direct impact on the total cash earnings received by the vendors.

    What is Working Capital Analysis with Management
    What is Working Capital? Analysis, with Management. Formula!
  • Business Forecasting Techniques, Elements, and Steps

    Business Forecasting Techniques, Elements, and Steps

    Discover essential techniques, elements, and steps for effective business forecasting. Enhance your decision-making with our comprehensive insights and resources. Business forecasting is an act of predicting the future economic conditions on the basis of past and present information. Also, It refers to the technique of taking a perspective view of things likely to shape the turn of things in the foreseeable future. As the future is always uncertain, there is a need for an organized system of forecasting in a business.

    The Concept of Accounting explains Business Forecasting in the points of Elements, Techniques, and Steps.

    In this article discussing Business Forecasting: First Essential Elements of Business Forecasting, then the second Techniques of Business Forecasting, and finally Steps of Business Forecasting. Also, Business forecasting reduces the risk associated with business cycles. Prior knowledge of a phase of a trade cycle with its intensity and expected period of happening may help businessmen, industrialist, and economists to plan accordingly to reduce the harmful effects of trade cycle’s statistics is thus needed for the purpose of controlling the business-cycles. So, discussing each point of Business Forecasting.

    Essential Elements of Business Forecasting

    The following Essential Elements below are:

    1. Essential Elements of Business Forecasting:

    The need for forecasting is apparent from the key role it plays in planning. Forecasting has great use in developing plans. The making of forecasts and their review by managers results in thinking ahead, looking to the future, and making provisions for it. Also, the very act of forecasting may disclose areas where necessary control is lacking. Forecasting, especially where widely participated by all in the organization, may help to unify and coordinate plans. By focussing attention on the future, it assists in bringing a singleness of purpose to planning.

    2. Elements of Forecasting:

    Forecasting helps us to know the future. It also helps us to compare, to estimate and to analyze the data to arrive at the estimated results. It leads to the regular investigation of different aspects of production and management within and outside the organization. Forecasting prepares a ground to work together and brings better co-ordination, co-operation, and control in the organization. Under forecasting, future prospects, stability, and the discrepancies are properly weighed and studied. Also, This helps the management to remove any hindrances that may come in the way of management.

    Thus company results are compared with the estimated ones, the other element which is quite conspicuous with forecasting. Whenever the large difference is found, further investigation is undertaken to find out the reasons for such discrepancy. Forecasting, therefore, helps to know the expected profits or losses and just by going through certain reports and records of the company, enables the forecaster to take necessary decisions. Decision-making becomes better and easier when forecasting is undertaken on a scientific basis.

    James W. Redfield has summarized the essential elements as follows:

    • Developing the groundwork: It carries out an orderly investigation of products, company, and industry.
    • Estimating future business: This follows a clear-cut plan for working out future expectancies in the form of natural undertaking with key executives.
    • Comparing actual with estimated results: Checking the attained with anticipated results of the business periodically and tracking down reasons for major differences.
    • Refining the Forecast Process: Once familiarity with estimating the future of the business is gained through practice, sharpening the approach and refining the procedure becomes quite easy.

    Techniques of Business Forecasting:

    The following Techniques of Business Forecasting below are:

    Direct/Bottom-up method:

    Under this method, different departmental heads and their subordinates collect information and data for different aspects of production, sales, purchases, personnel etc. Also, This data, later on, is compiled together as the data for the company as a whole. It means every department/section makes its own forecast which is, later on, clubbed together as an aggregated data for the company.

    Indirect/Top-Down method:

    The requirements of the entire trade or industry are estimated first and then the share of the particular unit is ascertained. The constituent departments, later on, get their share from the company and hence the estimation has been made indirectly without giving any free hand in the compilation of data. In this case, the responsibility of successful forecasting rests with the top executives.

    Empirical Method:

    Under the empirical method, the future is predicted in terms of past experience which is the basis of prediction. The empirical forecasting is based on the method of the sequence which assumes that business follows a pattern that certain indexes anticipate the general business trend. They strive to find out such an index and devote much time to constructing curves.

    Scientific Forecasting:

    Scientific forecasting strives to use scientific methodology in establishing causal relationships. In this case, the businessmen mostly rely upon the past experience in predicting the future. Previous experience properly organized and interpreted in terms of causal relationship is the basis of scientific forecasting. The scientific forecaster may use many of the tools of the empirical forecaster, but he uses them as guides or aids in interpreting causal relationships.

    Historical Method:

    This method mainly deals with the analysis and interpretation of past events as a basis for understanding current problems and forecasting future trends. Here data concerning the past production, sales, purchases, capital needs etc. of the industry as a whole and the particular firm are compiled and tabulated. This method helps the management to know not only the future trend but also effects of trade cycles, and the correlation between different aspects of production.

    Its principal advantages are as follows:

    • It takes into consideration the past records.
    • Such past records can be easily procured, and.
    • Also, The present is also not neglected.

    Some of its disadvantages are:

    • It is not always possible to find the trend or cyclical movements of past data or to develop correlation or mathematical relationship between them and other variables which have bearing upon them, and.
    • It is not possible for firms of average size to afford such a costly investigation.

    Deductive Method:

    This method is just the reverse of the historical method. No past information or data is taken into account under this method for deciding the future trend. Forecasters, under this method, believe that the old data becomes obsolete after the lapse of a certain time and hence give more emphasis on the current data available in the organization. But objective and subjective judgments are given all the importance. The forecaster at his individual discretion analyses the current information and derives certain conclusions, pertaining to the results in the near future.

    Its main advantages are as follows:

    • It takes into account the latest development; hence it is more dynamic in character.
    • It enables the management to get information as to the future without waiting for the past information, and.
    • Delay in forecasting certain events or results is avoided. The main drawback of this method is that it relies more on individual judgment than on the past record.

    Joint-Opinion Method:

    Any work of forecasting under this method is done in consultation with persons who are directly concerned with the problem. The responsibility of exactness is shared by many and the error of judgment is avoided to a greater extent. It is based on the committee type of approach and as such, better understanding and co-operation is expected in arriving at the accurate judgment. The number of experienced experts who are in direct touch with the forecast pools their judgment. The forecasting in this way is likely to be more accurate. This method is a definite improvement on the deductive method and the individual’s discretionary views or monopoly is discarded.

    Its principal advantages are:

    • It is very easy and simple to administer
    • There is no need for detailed statistical study
    • Experience of the experts is properly utilized.

    Some of its disadvantages are:

    • Members of the committee may not take the keen interest in preparing the forecasts as the responsibility is a joint and not several ones
    • Also, It sometimes degenerates into mere guesswork
    • It cannot be applied to the forecast of a section, department or another subordinate unit.

    Steps of Forecasting:

    The process of forecasting consists of the following steps, also described as elements of forecasting:

    Developing the Basis:

    The first step involved in forecasting is developing the basis of the systematic investigation of the economic situation, the position of industry and products. Also, The future estimates of sales and general business operations have to be based on the results of such investigation. The general economic forecast marks as the primary step in the forecasting process.

    Estimating Future Business Operations:

    The second step involves the estimation of conditions and course of future events within the industry. On the basis of information/data collected through investigation, future business operations are estimated. The quantitative estimates for a future scale of operations are made on the basis of certain assumptions.

    Regulating Forecasts:

    The forecasts are compared with actual results so as to determine any deviations. The reasons for his variations are ascertained so that corrective action is taken in future.

    Reviewing the Forecasting Process:

    Once the deviations in forecasts and actual performance are found then improvements can be made in the process of forecasting. The refining of the forecasting process will improve forecasts in the future.

    Sources of Data Used In Business Forecasting:

    Collection of data is the first step in any statistical investigation. It is the basis for any analysis and interpretations. Before the collection of data, many questions shall occupy the mind of the manager. The manager must be able to answer these questions before the task of the collection is started.

    These questions are:

    • Why collect data?
    • What kind of data to be collected?
    • When it is to be collected?
    • Where from it should be collected?
    • Who will collect it?
    • Also, How it shall be collected?

    The answer to these questions is nothing but planning the collection of data. Planning for data collection refers to thinking or preparing before doing the actual task of data collection. The purpose or object of data collection, the scope of the data, the unit of data collection, the technique and sources of data are the important consideration in planning the data collection. Data may be collected from primary or secondary sources depending upon the time, resources, and purpose of the investigation.

    Primary Sources:

    It is a first-hand data collected personally by the investigator. It is costly and time-consuming. Primary data is collected if secondary data is not available. It is collected by personal interviews, questionnaires or observations.

    Secondary Sources:

    These sources of data refer to already published data or data collected by other agencies. It is a secondhand data. Here the task is more of a compilation of data.

    The sources of secondary data are:

    • Official reports of the government.
    • Publications Financial source, Financial institutions etc.
    • Also, Annual reports of companies.
    • Journals, Newspapers, Magazines etc.

    A lot of care and caution is necessary before using the secondary data. Such data is cheaper, quicker and easily available. The essence of all the above Steps and Sources is that business forecasting is a technique to analyze the economic, social and financial forces affecting the business with an object of predicting future events on the basis of past and present information.

  • Explain the Internal and External Sources of Employee Recruitment!

    Explain the Internal and External Sources of Employee Recruitment!

    Learn What? Explain the Internal and External Sources of Employee Recruitment!

    The searching of suitable candidates and informing them about the openings in the enterprise is the most important aspect of the recruitment process. The Concept of the study Explains – the Internal and External Sources of Employee Recruitment: Internal Sources and their advantages and disadvantages, External Sources and their advantages and disadvantages. Now, Explain the Internal and External Sources of Employee Recruitment!

    The candidates may be available inside or outside the organization. Basically, there are two sources of recruitment i.e., internal and external sources.

    (A) Internal Sources:

    Best employees can be found within the organization… When a vacancy arises in the organization, it may be given to an employee who is already on the payroll. Internal sources include promotion, transfer and in certain cases demotion. When a higher post is given to a deserving employee, it motivates all other employees of the organization to work hard. The employees can be informed of such a vacancy by internal advertisement.

    Key Points on Internal sources of recruitment:

    Internal sources of recruitment are:

    • Publicity: Publicity means to give the employee a higher position, position, salary, and responsibility. Therefore, the vacancy can be filled up by promoting the right candidate of the same organization.
    • Transfer: The meaning of shifting means employment change, position, pay and change in the place of employment without the employee’s responsibility. Therefore, vacancies can be filled by transferring the suitable candidate of the same organization.
    • Internal advertising: Here, the vacancy is advertised within the organization. Existing employees are asked to apply for the vacancy. So, it is recruited from within the organization.
    • Retired Manager: Sometimes, retired managers can be remembered for a short period. This is done when the organization cannot find the suitable candidate.
    • Remember with a long leave: The organization can remember a manager who has gone on a long leave. This is done when the organization has to face a problem which can only be solved by that particular manager. After solving the problem, his leave has been increased.

    Methods of Internal Sources:

    The Internal Sources Are Given Below:

    1. Transfers:

    The transfer involves shifting of persons from present jobs to other similar jobs. These do not involve any change in rank, responsibility or prestige. The numbers of persons do not increase with transfers.

    1. Promotions:

    Promotions refer to shifting of persons to positions carrying better prestige, higher responsibilities, and more pay. The higher positions falling vacant may be filled up from within the organization. A promotion does not increase the number of persons in the organization.

    A person going to get a higher position will vacate his present position. The promotion will motivate employees to improve their performance so that they can also get the promotion.

    1. Present Employees:

    The present employees of a concern are informed about likely vacant positions. The employees recommend their relations or persons intimately known to them. Management is relieved of looking out prospective candidates.

    The persons recommended by the employees may be generally suitable for the jobs because they know the requirements of various positions. The existing employees take full responsibility for those recommended by them and also ensure their proper behavior and performance.

    Advantages of Internal Sources:

    The Following are The Advantages of Internal Sources:

    1. Improves morale:

    When an employee from inside the organization is given the higher post, it helps in increasing the morale of all employees. Generally, every employee expects promotion to a higher post carrying more status and pays (if he fulfills the other requirements).

    1. No Error in Selection:

    When an employee is selected from inside, there is the least possibility of errors in selection since every company maintains the complete record of its employees and can judge them in a better manner.

    1. Promotes Loyalty:

    It promotes loyalty among the employees as they feel secure on account of chances of advancement.

    1. No Hasty Decision:

    The chances of hasty decisions are completely eliminated as the existing employees are well tried and can be relied upon.

    1. The economy in Training Costs:

    The existing employees are fully aware of the operating procedures and policies of the organization. The existing employees require little training and it brings economy in training costs.

    1. Self-Development:

    It encourages self-development among the employees as they can look forward to occupying higher posts.

    Disadvantages of Internal Sources: 

    • It discourages capable persons from outside to join the concern.
    • It is possible that the requisite number of persons possessing qualifications for the vacant posts may not be available in the organization.
    • For posts requiring innovations and creative thinking, this method of recruitment cannot be followed.
    • If the only seniority is the criterion for promotion, then the person filling the vacant post may not be really capable.

    In spite of the disadvantages, it is frequently used as a source of recruitment for lower positions. It may lead to nepotism and favoritism. The employees may be employed on the basis of their recommendation and not suitability.

    (B) External Sources:

    All organizations have to use external sources for recruitment to higher positions when existing employees are not suitable. More persons are needed when expansions are undertaken.

    Key Points on External sources of recruitment:

    External sources of recruitment are:

    • Management Consultants: Management Consultants are used to selecting high-level employees. They act as the employer’s representative. They make all necessary arrangements for recruitment and selection. In return for their services, they take a service fee or commission.
    • Public Advertisement: The company’s personnel department advertises vacancies in newspapers, internet, etc. This advertisement gives information about the essential qualities of the company, the job, and the candidate. It invites applications from suitable candidates. This source is the most popular source of recruitment. That’s because it gives a very wide choice. However, it is very expensive and time-consuming.
    • Campus recruitment: The organization organizes interviews in the premises of the management institutes and engineering colleges. Interviews are given for final year students, who are soon to get graduation. Proper candidates are selected by the organization on the basis of their academic records, communication skills, intelligence etc. This source is used for the recruitment of qualified, trained but inexperienced candidates.
    • Recommendations: The organization can recruit candidates on the basis of recommendations from existing managers or sister companies.
    • Deputation Personnel: The organization can also recruit the candidates sent on deputation by the government or financial institutions or by holding or subsidiary companies.

    The external sources are discussed below:

    Methods of External Sources:

    1. Advertisement:

    It is a method of recruitment frequently used for skilled workers, clerical and higher staff. Advertisement can be given in newspapers and professional journals. These advertisements attract applicants in a large number of highly variable quality.

    Preparing good advertisement is a specialized task. If a company wants to conceal its name, a ‘blind advertisement’ may be given asking the applicants to apply to Post Bag or Box Number or to some advertising agency.

    1. Employment Exchanges:

    Employment exchanges in India are run by the Government. For unskilled, semi-skilled, skilled, clerical posts etc., it is often used as a source of recruitment. In certain cases, it has been made obligatory for the business concerns to notify their vacancies to the employment exchange. In the past, employers used to turn to these agencies only as a last resort. The job-seekers and job-givers are brought into contact by the employment exchanges.

    1. Schools, Colleges, and Universities:

    Direct recruitment from educational institutions for certain jobs (i.e. placement) which require technical or professional qualification has become a common practice. A close liaison between the company and educational institutions helps in getting suitable candidates. The students are spotted during the course of their studies. Junior level executives or managerial trainees may be recruited in this way.

    1. Recommendation of Existing Employees:

    The present employees know both the company and the candidate is recommended. Hence some companies encourage their existing employees to assist them in getting applications from persons who are known to them.

    In certain cases, rewards may also be given if candidates recommended by them are actually selected by the company. If recommendation leads to favoritism, it will impair the morale of employees.

    1. Factory Gates:

    Certain workers present themselves at the factory gate every day for employment. This method of recruitment is very popular in India for unskilled or semi-skilled labor. The desirable candidates are selected by the first line supervisors. The major disadvantage of this system is that the person selected may not be suitable for the vacancy.

    1. Casual Callers:

    That personnel who casually come to the company for employment may also be considered for the vacant post. It is the most economical method of recruitment. In the advanced countries, this method of recruitment is very popular.

    1. Central Application File:

    A file of past applicants who were not selected earlier may be maintained. In order to keep the file alive, applications in the files must be checked at periodical intervals.

    1. Labour Unions:

    In certain occupations like construction, hotels, maritime industry etc., (i.e., industries where there is instability of employment) all recruits usually come from unions. It is advantageous from the management point of view because it saves expenses of recruitment. However, in other industries, unions may be asked to recommend candidates either as a goodwill gesture or as a courtesy towards the union.

    1. Labour Contractors:

    This method of recruitment is still prevalent in India for hiring unskilled and semi-skilled workers in brick kiln industry. The contractors keep themselves in touch with the labor and bring the workers to the places where they are required. They get the commission for the number of persons supplied by them.

    1. Former Employees:

    In case employees have been laid off or have left the factory on their own, they may be taken back if they are interested in joining the concern (provided their record is good).

    1. Other Sources:

    Apart from these major sources of external recruitment, there are certainly other sources which are exploited by companies from time to time. These include special lectures delivered by the recruiter in different institutions, though apparently, these lectures do not pertain to recruitment directly.

    Then there are video files which are sent to various concerns and institutions so as to show the history and development of the company. These films present the story of the company to various audiences, thus creating interest in them.

    Various firms organize trade shows which attract many prospective employees. Many a time advertisements may be made for a special class of workforce (say married ladies) who worked prior to their marriage.

    These ladies can also prove to be the very good source of the workforce. Similarly, there is the labor market consisting of physically handicapped. Visits to other companies also help in finding new sources of recruitment.

    Advantages of External Sources:

    1. Availability of Suitable Persons:

    Internal sources, sometimes, may not be able to supply suitable persons from within. External sources do give a wide choice to the management. A large number of applicants may be willing to join the organization. They will also be suitable as per the requirements of skill, training, and education.

    1. Brings New Ideas:

    The selection of persons from outside sources will have the benefit of new ideas. The persons having experience in other concerns will be able to suggest new things and methods. This will keep the organization in a competitive position.

    1. Economical:

    This method of recruitment can prove to be economical because new employees are already trained and experienced and do not require much training for the jobs.

    Disadvantages of External Sources:

    1. Demoralisation:

    When new persons from outside join the organization then present employees feel demoralized because these positions should have gone to them. There can be a heart burning among old employees. Some employees may even leave the enterprise and go for better avenues for other concerns.

    1. Lack of Co-Operation:

    The old staff may not co-operate with the new employees because they feel that their right has been snatched away by them. This problem will be acute especially when persons for higher positions are recruited from outside.

    1. Expensive:

    The process of recruiting from outside is very expensive. It starts with inserting costly advertisements in the media and then arranging written tests and conducting interviews. In spite of all this if suitable persons are not available, then the whole process will have to be repeated.

    1. The problem of Maladjustment:

    There may be a possibility that the new entrants have not been able to adjust to the new environment. They may not temperamentally adjust with the new persons. In such cases either the persons may leave themselves or management may have to replace them. These things have the adverse effect on the working of the organization.

    Suitability of External Sources of Recruitment:

    External Sources of Recruitment are Suitable for The Following Reasons:

    • The required qualities such as will, skill, talent, knowledge etc., are available from external sources.
    • It can help in bringing new ideas, better techniques and improved methods to the organization.
    • The selection of candidates will be without preconceived notions or reservations.
    • The cost of employees will be minimal because candidates selected in this method will be placed on the minimum pay scale.
    • The entry of new persons with varied experience and talent will help in human resource mix.
    • The existing employees will also broaden their personality.
    • The entry of qualitative persons from outside will be in the long-run interest of the organization.

    Explain the Internal and External Sources of Employee Recruitment - ilearnlot
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