Definition: The span of control in management suggests estimating the optimum number of subordinates managed by a single supervisor. It is a primary factor that determines the shape of the organization. Also, it involves all the management activities than just supervision and control. The levels of management are created based on the span of control expressed by comparing … [Read more...] about Span of Control in Management
Employee Ownership
Definition: Employee ownership is a model in which the employees own all or maximum stake in the business. It isn't restricted to the higher level but also offered to every management level. Moreover, it provides tax benefits to businesses. This model benefits both the business as well as employees. Employees shares companies' profits, which boosts enthusiasm. Consequently, … [Read more...] about Employee Ownership
Integrated Accounts
Definition: Integrated Accounts are statements in which financial and cost accounting transactions are maintained jointly. In other words, when the cost and financial accounts are merged and recorded in the same set of books, it is referred to as Integrated Accounts. It accommodates complete information about both areas. However, the transactions are recorded based on the … [Read more...] about Integrated Accounts
Group Decision Making
Definition: Group Decision-making is a form of participative decision-making, where a group of individuals work together to solve a problem complex in nature. The group members try to discover and test creative alternatives to solve complicated problems. It is a participatory process in which the group members share their Ideas, Knowledge, Expertise and Experience. The group … [Read more...] about Group Decision Making
Batch Costing
Definition: Batch costing is an extension of Job costing which calculates costs and profit for batches. The production in batches decreases the setting up costs. Whereas, it increases the carrying and holding costs. Moreover, Economic Batch Quantity (EBQ) is considered during production. It is also known as 'Lot Costing'. Preparation of Batch cost sheet facilitates … [Read more...] about Batch Costing
Rightsizing
Definition: Rightsizing is a strategic business tool that escalates the resources to reduce costs and remain competitive. It is a type of involuntary separation that filters the workforce in an optimum way. It is especially performed at the top level of management. Optimization gives rise to a skilled, abled and knowledgeable workforce. Thus, organizations can achieve new … [Read more...] about Rightsizing
Compensation Management
Definition: Compensation management deals with every type of reward and its allocation in the most desirable way. It is an essential tool for managers in Human Resource Management. This is because it helps achieve equity, transparency and consistency across the organization. Compensation is the reward an employee receives for their valuable efforts while performing various … [Read more...] about Compensation Management
Direct Marketing
Definition: Direct Marketing is a personalized form of marketing that establishes direct interaction with the potential customer. Here, the marketers target the correct type of audience for promoting their products. Its goal is to get a response from the target customer. However, it does not necessarily involve physical interaction with the customer. Besides, companies may … [Read more...] about Direct Marketing
Market Segmentation
Definition: Market Segmentation implies a process of fragmenting the diversified market containing similar attributes or needs. It is the first stage of the STP decision process (Segmentation, Targeting and Positioning). It is a tool to achieve stability and fight competition in a highly competitive market in the long run. Classification of market segments depends on certain … [Read more...] about Market Segmentation
Circular Flow Model
Definition: The Circular Flow model represents the continuous flow of money among various sectors of the economy. The money flow results in economic activities such as production, consumption, investment and expenditure. It plays a significant role while calculating the country's national income. The major sectors of the economy are: Domestic or Household Corporate … [Read more...] about Circular Flow Model