TyroCity: Business Studies Notes

Factors affecting decentralization

Business Studies XII — Sun, 18 Aug 2013 05:41:42 +0000

Factors affecting decentralization of authority

1. Size – size of the organization, terms of sales number, plans, number of employees affects the decentralization of authority. It is observes that the speed and adequacy of decision making, flexibility and efficiency are enhanced through decentralization of authority in case of very large multi product, diverse and complex organization. Therefore in larger size of organization, there will be more dispersion of authority

2. History and age– the size of organization, the degree of decentralization depends upon history and ages of organization. If it is organized by an individual then in such kind of organization, there will be centralization of authority. But in case of business activities when there is merging being done there is decentralization of authority. In any organization, relatively high degree of centralized authority may be needed when new values and viewpoint are establishes by the executives

3. Philosophy of top management– decentralization of authority depends upon philosophy of top management. it is seen that in the owners managed enterprise there is delegation of authority but in professionally managed enterprise decentralization of authority is seen.

4. Competent personnel– competent personnel affect decentralization of authority. more personnel at lower level more policy of decentralization of authority,

5. Strategy and organization environment– strategy and organization environment influences market, technological environment, competition. It is the basis of determining decentralization of authority and centralization of authority.

6. Nature and management function– the degree of decentralization of authority is influenced by nature and management functions. Generally functions like production and sales are more decentralized and finance, personnel, research and development are highly centralized.

7. Control techniques– decentralization of authority is more when control technique is good. When control system is reliable, there is better and higher decentralization of authority to the lower level.

8. Dispersion of organizational plans– decentralization of authority also depends upon dispersion of organizational plans of the organization. Organization has officer of different types located at different places. That’s why decentralization of authority becomes necessary.

Trade and Export Promotion Center : Functions

Business Studies XI Notes — Sun, 18 Aug 2013 05:41:42 +0000

Trade and export promotion center (TEPC)

Trade and export promotion center is a national trade promotion organization of Nepal. It was established in 2006. It is formed by merging three organizations. They are;

Trade promotion center
Export promotion center
Carpet and wool development board

Its main aim is to prevent foreign trade and export trade. It helps increase country’s export capacity. At initial stage it was limited with few countries. Afterwards, trade was extended with India. It helps to identify, promote trade. It helps in developing new market. It also helps in establishment of relationship between exporter and importer. It tries to maintain positive result. It links Nepalese product in international market.

Functions:

It provides advice to the government of Nepal in formulation of policies for the development and expansion of trade and export
It helps in expansion of export business and increases national economy
It tries to reduce poverty through developing rural economy by enhancing internal and external market for agro based and other products
It conducts programs for increasing the products of exportable products
It assists to diversify trade by identifying potential market for exportable products
It cooperates in operating institutions for export promotion and diversified trade and extend support to such institutions
It pleads for technical assistance with national and international organizations for improving quality and standard of exportable products
It organizes buyer and seller meet and conduct training seminar and workshop
It assists in market test of exportable products
It studies and identifies the problems of foreign trade and advises the government of Nepal with appropriate measures to solve those problems

Characteristics of Sole Trading Concern

Business Studies XI Notes — Sun, 18 Aug 2013 05:41:42 +0000

Some characteristics of sole trading concern:

1. Single ownership:
A sole proprietorship is wholly owned by one individual. The individual supplies the total capital from which his own wealth or from borrowed funds.

2. One man control:
The proprietor alone takes all the decisions pertaining to the business. He is not required to consult anybody. Ownership and management are vested in a person.

3. No legal entity:
A sole proprietorship has no legal entity separate from its owner. The law makes no distinction between the proprietor and the business. The assets and liabilities of the business and its proprietor are not different.

4. Unlimited liability:
Proprietor is liable for all the debts of the business. In case the assets are insufficient to meet the debts, the personal property of the proprietor can be attached.

5. No profit sharing:
The proprietor is all alone entitled for all the profits and the losses of the business. He bears the complete risk and there is nobody to share the risks, workload or any profit or losses.

6. Small size:
The scale of operation carried out by sole proprietor is generally small.

Social responsibility of business

Business Studies XI Notes — Sun, 18 Aug 2013 05:41:42 +0000

The major responsibilities of business are:

1. Employees

Provides better working environment to satisfy the employees
It provides salary, bonus, provident funds and job security.
It also provides financial and non-financial supports.
Enriches employees’ performance.
Provide training to develop their skills.
listen and handle their complaints and issues

2. Creditors:

Make duly payment
Satisfaction of creditors with proper relationship
Helping them to create their own market.
Entrusting the right of proper selling of goods and services of their goods
Copyright and other legal rights.

3. Customers/consumers:

Better quality of goods and services by charging reasonable price
Supply of commodities is also to be done according to needs of customer
Helps to achieve needs and wants
Provide right goods at right place in right time.
Provide proper pre-sale and post sale information
Provide proper information about new products

4. Investors:

True information about earning power of business
The objectives are to provide reasonable rate of return to shareholder.
Provide the information about plan of business.
Ensure safe investment
Promote utilization of resources without leakage
Ensure transparency of business activities

5. Government

Increase in tax i.e. Increase in government revenue
Fulfill demand of government
Non violation of rules and regulation of government.
Avoid unfair trade
Provide essential information to the government.
Solve national problems like natural calamities.
Avoid malpractice like black marketing, adulteration, smuggling

6. Society

Good environment
Employment opportunities generation.
Socio-cultural understanding
Apply anti pollution measures.

Functions of an Office

Business Studies XI Notes — Sun, 18 Aug 2013 05:41:42 +0000

Functions of an office

Primary or basic functions
Auxiliary or administrative management functions

1. Primary or basic functions
An office basically performs those functions that are related to information management. It helps in receiving, recording, arranging, analyzing and transmitting information.

Receiving and collecting information
Receiving and collecting different types of information from the different types of sources is the primary function of an office. The information is received from two sources. They are internal and external. Letters, invoices, circulars, notices, memos are the internal sources and supplier, customers, government, banks are the external sources
Processing and arranging information
It is the most significant function of an office. The information collected and recorded cannot be readily used for the decision-making and other purposes in the organization. Therefore, it must be processes and arranged. Processing information involves preparing notes, sorting, editing t. all information are to be arranged in a systematic way.
Supplying information
After arranging and analyzing information it is ready to supply in the management. It provides necessary information to its member whenever it I required. This information helps in decision-making process.
Retention of records
Retention is defined as the preservation of records for future reference. It involves collection, preservation, classification and protection of records for future reference. It is maintained in files, computers etc. Every record has a life span. It is protected according to its importance. Retention of record depends upon nature of organization. The efficiency of office depends upon the way records are retained

2. Auxiliary or administrative management function

Management process
To make any business successful there must be good management. Office helps in effective management. It includes planning, organizing, staffing, directing and controlling. It helps in smooth functioning of the organization.
Public relations
There must be good public relation of the organization. The main purpose of public relation is to make the organization look trust worthy to all people who deal with it in all its action.
Development of office system and procedure
Every office develops a definite office system and a fixed routine. It helps in smooth flow of office work. The system is also known as procedure of office work.
Safe guarding the assets
All assets, movable and immovable, documents and office records must be guarded and protected. They can protest these assets through insurance policies, locker etc.
Form designing and control
An office designs, develops and prepares many types of form needed for office management. It helps to get maximum benefits. These office forms are important tools for collection and storage of information.
Purchasing stationery and supplies
Office stationery and supplies are essential for doing work. It helps in increasing the efficiency and improving quality of works done. Office should pay attention in purchasing right type of stationery and supplies
Purchasing office furniture and machine
Office requires various types of office furniture and machine for efficient performance. The quantity, quality, consistency and completeness of work basically depend upon the ability and quality if assets like office furniture and machine.
Personnel function
Office is also related to recruiting, training, placing, promoting the employees. Employees help in the success of the organization.

Components of direction

Business Studies XII — Sun, 18 Aug 2013 05:41:42 +0000

Aspects of direction
Direction is an integration of motivation, leadership, communication and coordination. It is an important function of management which is related to issue orders to staff.

1. Motivation: it is the process of inspiring and encouraging the people to do work. It is a skill of using the capability of manpower for the organization. It is a mental and physical presence of employee to do work. Effective motivation helps to raise the effective direction. Therefore, motivation is important aspect of direction.

2. Leadership: it is another important aspect of direction. It is defined as the process of influencing people to perform work effectively. In other words, it influences the behavior of employees or subordinate. According to time, situation and behavior of followers, a leader must conduct his followers. Therefore, it is an important aspect of direction.

3. Communication: communication means transferring information from one person to another. In other words when the information is transmitted from one person to another and information receiver easily take the information, it is known as communication. It includes sending message and receiving message. After sending message receiver receives the message and understands it. Therefore, message receiver responds and reacts about the message. In an organization manager must develop an effective communication system so that s/he may give instruction and guidance to the subordinates and motivate them to do the work to the best of their ability.

4. Coordination: it is also an important aspect of direction. When the coordination activity is not conducted effectively. Direction is not effective. Coordination is the process of linking activity of resources and various departments so that desired goal can be achieved easily. It is inter-related with all managerial function.

5. Supervision: it is another important aspect of direction. Direction is not only to issue order but also supervising job of subordinates. It is an important function of every manager. So the manager’s duty is to look after their work and examine that whether they have done according to the order issued or not and also help in solving their work problems.

Importance of record management

Business Studies XI Notes — Sun, 18 Aug 2013 05:41:42 +0000

1. Preservation of record
It helps in management and control of important records. It helps to protect necessary records with care and disposes useless records.

2. Evaluating progress
It helps in evaluating progress of organization. It helps in preservation of history of organization. The past records show direction to organization. It helps in finding out the weakness and strength of organization. Record management gives the account of progress and direction in which organization is going on.

3. Facilitate comparison
Record management helps to evaluate business progress and performance. It helps in comparison between one period of time and another or between same times of business

4. Helpful in decision-making
Records are the memory of business. It is useful for future decisions making process. The study of past records shows direction for future. It supplies information to organization whenever it is needed. Therefore, it helps in taking decisions.

5. Efficiency in operation
Record management helps to provide required information with speed and accuracy. It helps to make office work efficiently and effectively. It helps to increase efficiency of the office.

6. Evidence
Records acts as an evidence in the time of dispute. It is important for the settlement of dispute. It can be shown as proof in court.

Concept of record management
Record management is the area of office management which deals with the maintenance of records of organization. It is very important for management for control of records. It is an art of handling and maintaining office records from the time of creation to disposal. The records are systematically maintained to preserve for future use. Record management refers to the activities designed to control the life cycle of a record.

Stages of record management

1. Creation of records
It is the first stage of record management. It is the most important stage. In this stage records are either created inside the organization or are received from outside the organization in form of letters or notices.

2. Storage of records
It is the second step of record management. Once records are created they must be retained or protected. This stage is also known as retention of records. It is the preservation of records for future reference. The records are recorded in such a way so that it can be easily located in the required time.

3. Use of records
It is the third stage of record management. In this step the stored records in the past are used for planning, organized, deciding, and preparation of accounts and so on.

4. Disposal of records
It is the fourth and last stage of record management. Records cannot be stored forever. Outdated records must be destroyed or disposed.

Types of partners

Business Studies XI Notes — Sun, 18 Aug 2013 05:41:42 +0000

General partners:
They provide capital and play active part in business

Inactive partner:
They provide capital to business and share profit and loss to firm but do not take part in management and day to day activities.

Nominal partners:
They act only as a partner and give their name to the firm. They do not take part in management and day to day activities and share profit and loss to firm

Secret partner:
Their membership is kept secret to the outside world. They can take part in management

Partner in profit only:
They share profit only but no loss is shared. They are generally inactive but have relation in money and goodwill.

Minor partners:
They do not enter into contract and can’t be made partner in real sense but if there is consent of all partners then their partnership can be taken into consideration

Retrieval partners:
Even if this partner leaves the firm other partners continue to operate business. They are liable for all debtor and share profit too. But they do not take part in management and day to day activities.

Incoming partners:
If there is consent of all partners then their partnership can be taken into consideration. They aren’t held liable for debt before approval of all partners.

Importance of office management

Business Studies XI Notes — Sun, 18 Aug 2013 05:41:42 +0000

Some importance of office management are listed below:

1. Achievement of goals
Office management helps in increases office efficiency, smooth flow of work, maintaining public relations, minimization of cost, managing change and accepting the new challenges which help in achievement of goals of the organization.

2. Increases office efficiency
Office management focuses on office activities and helps office in economical way.

3. Smooth flow of work
Office management helps in performing efficient and effective office work. It helps in proper planning and effective control in office.

4. Public relations
There must be good public relation of the organization. The main purpose of public relation is to make the organization look trust worthy to all people who deal with it in all its action. It helps in increasing the goodwill of the organization.

5. Minimization of cost
Office management guides the use of capital, natural, financial, human and other resources effectively without leakage and wastage which helps in minimization of cost.

6. Managing change
Office management helps in implementation of plans in right time and in right way. Bu there may be change in resources, need, technology, preferences and so on which makes it necessary to bring about the change in plans. Office management makes the office flexible which helps to manage the change.

7. New challenges
In an office, to achieve goals, many challenges should be faced. It helps in improving the research and information system. It helps in managing all the rigid matters.

Qualities of good indexing

Business Studies XI Notes — Sun, 18 Aug 2013 05:41:42 +0000

Some qualities of good indexing:

1. Simple: It should be easy and simple to be understood by the entire employees.

2. Economy: Indexing should be cheap and must come under the budget of the organization. The installation and operation cost should be low.

3. Flexible: It should be flexible enough. It must be dynamic and changeable according to the needs of an organization

4. Compactness: It should be compact and should not take unnecessary space

5. Safety: A good indexing system must preserve all the necessary documents from insects, dust, fire, water and so on.

6. Accessibility: Files and folders must be preserved for future and must be easily accessible.

Principles of Record Management

Business Studies XI Notes — Sun, 18 Aug 2013 05:41:42 +0000

1. Principle of purpose
While maintaining the record, the purpose of record keeping should be clear. Records without purpose are a waste of time, labor and money. The purpose of record keeping should not be unsuitable for organization.

2. Principle of verification
There must be evidence of all the documents which are preserved in an office. If the verification is not possible, it has no value as proof in court.

3. Principle of classification
All the records should be classified on the basis of nature of documents. Proper classification of records helps to avoid confusion. It helps in proper evaluation of business performance.

4. Principle of reasonable cost
While maintaining the record, the cost factor should be considered. Therefore, the valuable information should be recorded systematically and useless information should be disposed.

5. Principle of elasticity
The process of record management should be elastic in capacity i.e. it should be capable of being expanded or contracted according to requirement.

6. Principle of retention of records
The main objective of record management is to preserve the required document for future reference. The unnecessary document should be disposed. Therefore, according to value and importance of records should be preserved.

7. Principle of availability
Records are preserved for future reference. It should be protected in such a way that required information should be easily available. The records are useless if they are not available in the current time

Office furniture : meaning and importance

Business Studies XI Notes — Sun, 18 Aug 2013 05:41:42 +0000

Office furniture
Office furniture is an important part of office management; it is mostly used for indoor activity. Employees working in the office should be provided with comfortable and convenient furniture so that they can work efficiently. The major and most popular office furniture are chair, table, cabinets, cupboards, sofas, racks etc. office furniture are common in all offices. Office furniture should have good design which can help the office to look attractive ad pleasant. In a well furnished office, employees feel comfortable and are motivated for work

Importance of office furniture

It increases the efficiency of work
It makes the office more attractive and pleasant.
It helps to maintain the prestige of office
It provides better working environment for the employees
It helps in reducing the fatigue.
It helps in protection of documents from fire, dust, insects etc.
It helps in proper storage of files