Theories of Leadership

Definition:¬†Leadership is the process of channelising the energy of an individual or a group towards the realisation of specific goals, objectives and vision. Theories of Leadership Over the decades, many great scholars, researchers and academicians have conducted various research and studies to discover the factors that contribute to effective leadership. In this process, the following…

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Leadership

Definition:”The ability to create a vision and influence, motivate, inspire and transform others to achieve certain goals towards that vision is known as leadership.” Leadership is the specific set of skills and attributes which can be acquired through learning. Who is a Leader? A Leader is a person who guides others and motivates them to…

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Strategy Formulation

Definition: Strategy Formulation is an analytical process of selection of the best suitable course of action to meet the organizational objectives and vision. It is one of the steps of the strategic management process. The strategic plan allows an organization to examine its resources, provides a financial plan and establishes the most appropriate action plan…

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Perception

Definition: Perception is a process by which people regard, analyze, retrieve and react to any kind of information from the environment. For example, some people feel happy about earning money while others feel happy about spending money. Factors affecting Perception The factors which affect the perception are shown in the figure below: Process of Perception…

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Labelling

Definition: Labelling is a part of branding and enables product identification. It is a printed information that is bonded to the product for recognition and provides detailed information about the product. Customers make the decision easily at the point of purchase seeing the labelling of the product. Labels must comply with the legal obligations. A…

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Motivation

Definition: Motivation is a driving force which affects the choice of alternatives in the behaviour of a person. It improves, stimulates and induces employees leading to goal-oriented behaviour. For example, promotion is a motivating factor as employees work to achieve preset targets for getting a promotion. Motivation can be monetary, e.g., rewards given in the…

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Controlling

Definition: Control is a primary goal-oriented function of management in an organisation. It is a process of comparing the actual performance with the set standards of the company to ensure that activities are performed according to the plans and if not then taking corrective action. Every manager needs to monitor and evaluate the activities of…

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Balance Sheet

Definition: A Balance Sheet refers to the position statement, which lists out the balances of the assets, liabilities and owner’s equity, i.e. capital, of an enterprise at a specified date. While the assets show the resources owned by the company, liabilities and capital exhibits the funding of resources. Characteristics of Balance Sheet The preparation of…

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Private Equity

Definition: Private Equity firms are described as the investment fund companies that invest in the capital of the enterprise so as to acquire a strategic stake in it, once it is set up as a successful unit. The capital injected by private equity firms in a company which forms a part of their equity capital…

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Lease

Definition: Lease is a financial arrangement, wherein one party (lessor) allows another party (lessee) to use the capital asset or equipment for a definite period, in return for an adequate consideration, i.e. lease rental charges. In this contract, the lessee need not buy or own the asset in order to use it, because it is…

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