Strategic Business Unit (SBU)

Definition: Strategic Business Unit (SBU) implies an independently managed division of a large company, having its own vision, mission and objectives, whose planning is done separately from other businesses of the company. The vision, mission and objectives of the division are both distinct from the parent enterprise and elemental to the long-term performance of the…

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Stress

Definition: In Human Resource Management, Stress is defined as a state of mental and emotional pressure or strain, caused by challenging or unfavourable circumstances. It is an outside force that rules an individual’s feelings and behaviour. It is a person’s response to an external factor (stimulus, known as the stressor) in the environment and the…

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Interview

Definition: Interview refers to a formal, in-depth conversation between two or more persons, wherein exchange of information takes place, with a view of checking candidate’s acceptability for the job. Objectives of Interview To evaluate applicant’s suitability. To gain additional information from the candidate. To provide general information about the company to the applicant. To create…

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Outsourcing

Definition: Outsourcing, the name itself suggest its meaning, i.e. source from outside. It refers to a practice of contracting out the non-core and sometimes core activities of the organisation to a captive unit or a third party. It is a process, in which business-houses handover their regular or peripheral work to the external organisation, who…

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Capitalism

Definition: Capitalism refers to an economic and political system, wherein the private individuals own and control the country’s factors of production (land, labour, capital) for making a profit. In finer terms, private property is the essence of a capitalist economy and profit works as a motivation here. Under this system, the government does not intervene…

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Business Environment

Definition: Business Environment means a collection of all individuals, entities and other factors, which may or may not be under the control of the organisation, but can affect its performance, profitability, growth and even survival. Every business organisation operates in a distinctive environment, as it cannot exist in isolation. Such an environment influence business and…

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Depreciation

Definition: Depreciation is the reduction in the utility of the fixed asset like plant & machinery, furniture & fixtures, vehicles, buildings, etc. because of obsolescence through technology or market conditions, natural wear and tear, the passage of time, exhaustion of subject matter and so on. Depreciation is a measure which calculates loss in the value…

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Dispute Resolution

Definition: Dispute Resolution refers to a technique of settling the conflicts or claims between two parties, i.e. employer and employees. The technique aims at achieving fairness for both the groups and arriving at an agreement between by consensus, often initiated by a third party. These disputes are caused by wage demands, unfair labour practices, political…

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Entrepreneurship

Definition: Entrepreneurship refers to the process of creating a new enterprise and bearing any of its risks, with the view of making the profit. It is an act of seeking investment and production opportunity, developing and managing a business venture, so as to undertake production function, arranging inputs like land, labour, material and capital, introducing…

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Benchmarking

Definition: Benchmarking, is a tool of strategic management, that allows the organisation to set goals and measure productivity, on the basis of the best industry practices. It is a practice in which quality level is used as a point of reference to evaluate things by making a comparison. The process helps in comparing and gauging…

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