Key Performance Indicator (KPI)

Definition: Key Performance Indicator (KPI) refers to monetary and non-monetary measures that an organization employ to define and measure the progress towards achievement of long-term goals of the organization. These factors are fixed and predetermined in nature and comprise more meaning if it is compared with the information. KPI varies from organization to organization such…

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Business Risk

Definition: By the term ‘business risk’ we mean the uncertainty with respect to firm’s operations. It is a type of systematic risk wherein there is a┬ávolatility 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…

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Activity-Based Management (ABM)

Definition: Activity Based Management (ABM) can be understood as the cost management implementation of activity-based costing. It is a management approach that concentrates on efficiently and effectively managing the activities so as to improve the quality of goods and services offered to the customers and also increase the profitability and competitiveness of the organization. ABM…

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Management by Objectives (MBO)

Definition: Management by Objectives (MBO) or otherwise called as Management by Results (MBR) is management philosophy which was first propounded by Peter F. Drucker in the year 1954, in his book “Practice of Management”. Management by objectives is a planning and controlling system, in which the superior and subordinates work together in order to define…

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Management

Definition: Management can be defined as the process of administering and controlling the affairs of the organization, irrespective of its nature, type, structure and size. It is an act of creating and maintaining such a business environment wherein the members of the organization can work together, and achieve business objectives efficiently and effectively. Management acts…

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Internal Control

Definition: Internal Control can be defined as a system designed, introduced and maintained by the company’s management and top-level executives, to provide a substantial degree of assurance in achieving business objective, while complying with the policies and laws, safeguarding the assets, maintaining efficiency and effectiveness in regular operations and reliability of financial statements. Objectives of…

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Auditing

Definition: The term ‘audit’ means an unbiased examination of the financial statements, i.e. account books and other relevant documents such as vouchers, invoices, bills, receipts, etc., of a business entity, regardless of the size, nature, orientation and legal structure, carried out by an auditor so as to give an opinion on the financial statement. The…

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Customer Relationship Management (CRM)

Definition: Customer Relationship Management (CRM), can be understood as the business strategy that involves obtaining, arranging and managing customer information and using the same across different ‘touch points’ of the customers, so as to improve customer service, which leads to the increase in customer loyalty and retention and boosts sales. The term ‘customer touch point’…

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Departmentalization

Definition: Departmentalization or Departmentation is a process wherein jobs/teams are combined together into functional units called as departments on the basis of their area of specialization, to achieve the goals of the organisation. So, in this way, the entire organization is divided into parts, i.e. departments which comprise of a group of employees, who carry…

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Amalgamation

Definition: Amalgamation, as the name itself suggest, is a form of external reconstruction, in which there is a combination of two or more than two companies, either by merger or by takeover. It indicates two activities: Two or more entities fuse to form a new company, wherein the individual identity of the two entities vanishes…

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