Definition: Management by Exception, shortly called as MBE is a management style or philosophy that empowers the manager to concentrate on the exceptionally important or critical matters and taking important decisions while facilitating the front line workers to complete the day to day activities. It aims at keeping the focus of the management on extremely important tasks … [Read more...] about Management By Exception (MBE)
Procurement
Definition: Procurement refers to a business management process which is concerned with identification, sourcing, acquiring and management of the external resources, i.e. goods, works and services, required by a firm on a large scale to meet out its strategic objectives. The term 'procurement' not just covers purchasing of goods, but a combined set of events from recognizing … [Read more...] about Procurement
Business-Level Strategy
Definition: Business level strategies refer to the combined set of moves and actions taken with an aim of offering value to the customers and developing a competitive advantage, by using the firm's core competencies, in the individual product or service market. It determines the market position of the enterprise, in relation to its rivals. Business-Level Strategies are … [Read more...] about Business-Level Strategy
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 only one … [Read more...] about Centralization
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 … [Read more...] about Collective Bargaining
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 of service is five years or more. It becomes payable … [Read more...] about Gratuity
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 market. It is also termed as price rings. It is … [Read more...] about Cartel
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 company and partnership. Salient … [Read more...] about Limited Liability Partnership (LLP)
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 raise the capital themselves by … [Read more...] about Cooperative Society
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 find out a solution which is acceptable … [Read more...] about Negotiation