Centralization

Definition: Centralization, means the concentration of powers, authority and control, at the head or centre of the organization. So, the location of powers as to planning, decision making, formulation of policies, etc. lies in the hands of top-level management, which consists of a few executives who regulate the organization. In a centralized organization, there is…

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Collective Bargaining

Definition: Collective Bargaining can be defined as the form of negotiation amidst employer and the representatives of workers/employees, i.e. trade union, which establishes the terms and conditions of employment. Its purpose is to ascertain the working conditions, as well as to regulate the relations of employer and workers. Simply put, Collective bargaining is a bipartite…

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Gratuity

Definition: Gratuity implies a sum paid to the employee by the employer organization as a form of gratitude, for the services rendered by him/her to the company, over the years. It is given under the Payment of Gratuity Act, 1972. Gratuity is payable to an employee when the employment is terminated, and the completed years…

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Cartel

Definition: The term ‘cartel’ refers to an arrangement wherein two or more large producer firms comes together, to regulate the supply of the goods and services with the aim of manipulating the prices. And to do so, the producers agree to cooperate with one another, with which they can limit competition and dominate the entire…

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Limited Liability Partnership (LLP)

Definition: LLP is an acronym for Limited Liability Partnership, which is an emerging form of business organization. It incorporates the features of a Partnership and Body Corporate, as in low compliance cost while allowing the flexibility of a general partnership in terms of internal structure. In finer terms, LLP is the hybrid form of a…

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Cooperative Society

Definition: As the name suggests, cooperative society refers to that type of business organization, wherein people work together, for a common goal, i.e. welfare of its members. It has to be registered under the Cooperative Societies Act, 1912, in order to obtain the status of a separate legal identity. The members of the cooperative society…

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Negotiation

Definition: By the term ‘negotiation’ we mean an open strategic dialogue that is supposed to resolve the issue between the parties concerned, by reaching an agreement. The two parties with different needs and goals having some common interest and others divergent intend to arrive at an agreement. So they discuss the matter, in order to…

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Employee Benefits

Definition: Employee Benefits implies the financial or non-financial compensation, offered to the employees, which forms part of their employment contract. It has an important role to play in differentiating two jobs offering the same salary, which vary in terms of the benefits offered. In finer terms, any kind of consideration given to the employees, in…

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Decision Making

Definition: Decision Making is the cognitive process of selecting a course of action, out of a set of available alternatives, so as to achieve the goals of the organization. It is an indispensable part of the management, as decisions are made at each level by the management executives. Characteristics of Decision Making The characteristics of…

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Digital Economy

Definition: In simple words, the digital economy, is an economy which operates predominantly with the help of digital technology. It implies the global network of economic activities, processes, transactions and interactions among, people, businesses, devices, etc. which is supported by Information and Communication Technology (ICT). In this, the maximum number of business transactions are concluded…

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