Definition: The Simulation Analysis is a method, wherein the infinite calculations are made to obtain the possible outcomes and probabilities for any choice of action. The concept of simulation analysis can be further comprehended through the following steps: The first step is to model the project. A model shows how the net present value is related to the parameters and … [Read more...] about Simulation Analysis
Hillier Model
Definition: According to the Hillier model, the risk associated with the project can be assessed through the standard deviation of expected cash flows. In other words, determining the viability of the project through calculating the deviations in the cash flows from the mean of expected cash flows. Thus, Hillier model asserts that the computation of standard deviations of … [Read more...] about Hillier Model
Break-Even Analysis
Definition: The Break-Even Analysis is a method adopted by the firms to determine that how much should be produced or sold at a minimum to ensure that the project does not lose money. Simply, the minimum quantity at which the loss can be avoided is called as a break even point. The Break-even point can be defined in both the financial and accounting terms. Financial … [Read more...] about Break-Even Analysis
Scenario Analysis
Definition: The Scenario Analysis is a method applied to determine the feasibility of the project in terms of the change in the underlying variables simultaneously. Simply, analyzing the change in multiple variables at a time and assessing their impact on the viability of the project as a whole, is called as scenario analysis. In scenario analysis, not only the sensitivity … [Read more...] about Scenario Analysis
Sensitivity Analysis
Definition: The Sensitivity Analysis or What-if Analysis means, determining the viability of the project if some variables deviate from its expected value, such as investments or sales. In other words, since the future is uncertain and the entrepreneur wants to know the feasibility of the project in terms of its variable assumptions Viz, investments or sales change, can apply … [Read more...] about Sensitivity Analysis
Risk Analysis Techniques
Definition: The Risk is prevalent in all the business decisions, but it is much more inherent in the capital budgeting decisions. These decisions are the long-term decisions, which involves huge cost and whose benefits are derived over a long period of time or during the lifetime of the project. The risk varies according to the nature of investments. A research and … [Read more...] about Risk Analysis Techniques
Glass Ceiling
Definition: The Glass Ceiling refers to the unseen and yet unbreakable barrier that prevents women and minorities from reaching to the higher positions in the organization, irrespective of their achievements and qualifications. In other words, an invisible upper limit in the organization, beyond which it is very difficult or sometimes impossible for a woman or minority men … [Read more...] about Glass Ceiling
Social Loafing
Definition: The Social Loafing is the tendency of an individual to put less effort into the job when he is a part of the group, as compared to when he is working alone. The concept of social loafing can be further comprehended through a “free rider effect” and the “sucker effect”. The former effect is based on an individual’s assumption that, if he does not perform his task, … [Read more...] about Social Loafing
Stages of Group Development
Definition: The Group Development means, forming the association of people to work as a group and direct their actions towards the accomplishment of a common goal. The jobs of each group member are interdependent and hence the performance of one will affect the entire group’s performance. It is often called as a team building or team development. The most famous and a … [Read more...] about Stages of Group Development
Self Theory
Definition: The Self Theory emphasizes on the set of perceptions an individual has for himself and the perceptions of the relationships he has with others and the other aspects of life. Carl Rogers has contributed significantly towards the self theory. The self theory comprises of four factors that are explained below: Self-Image: Self-image means what an … [Read more...] about Self Theory