Definition: A matrix organizational structure is the arrangement of the personnel, i.e., the matrix leader, managers and employees, across the grid, such that a hybrid hierarchy is maintained. Here, there is a vertical and horizontal flow of direction and information, such that each subordinate has dual bosses. Out of these, one is the functional manager; and the other is the … [Read more...] about Matrix Organizational Structure
Group Vs Team
When we use the terminologies, group and team, we mostly take these as synonyms of each other. Though both refers to the assemblage of two or more individuals, a team is a particular type of a group which is more focused towards the desired mutual goal with every member contributing in the best possible manner. A group is an assemblage of individuals with common traits or … [Read more...] about Group Vs Team
Types of Groups
Definition: A group is the arrangement of the individuals who have something in common, i.e., either they possess a similar trait or falls into the same situation. This association becomes a temporary identity of the individuals who form it. Also, every group has its norms, goals, composition and criteria. There are numerous types of groups which differ from each other … [Read more...] about Types of Groups
Group Dynamics
Definition: Group dynamics is the analysis of all those factors which contribute to the creation and functioning of a group. It is moreover concerned about the change in psychology or mindset of the individuals while performing in a group. It is a parameter to evaluate the overall performance of a group. Also, it examines the impact of various elements such as group … [Read more...] about Group Dynamics
Net Present Value (NPV)
Definition: The Net Present Value (NPV) is a means of evaluating the actual long-term profitability of an investment or a project through the initial outflow, future cash flows and time value of money. Also known as the discounted cash flow method, it backs the capital budgeting decisions of a company. It is an effective means of forecasting the future outcome of a … [Read more...] about Net Present Value (NPV)
Securitization
Definition: Securitization is the method of converting the receivables of the financial institutions, i.e., loans and advances, into bonds which are then sold to the investors. In simple terms, it is the means of turning the illiquid assets into liquid assets to free up the blocked capital. The receivables on debts against collateral assets like property, land, building and … [Read more...] about Securitization
Labour Turnover
Definition: Labour turnover can be defined as the overall change in the number of people employed in a business entity during a particular period. It takes into consideration the number of exiting personnel, new joinees and the total number of workers as listed in the payroll at the end of a given period. A high labour turnover rate is considered to be unfavourable for the … [Read more...] about Labour Turnover
Target-Date Fund (TDF)
Definition: A target-date fund (TDF) is a long-term investment plan comprising of equity, bonds and various other fixed-income securities, where this asset allocation rebalance with the declining risk-taking capacity of the investor while moving towards the target date. These investment plans are also termed as lifecycle funds since it keeps on rebalancing while heading … [Read more...] about Target-Date Fund (TDF)
Tax Holiday
Definition: Tax holiday refers to the temporary period when the government reduces or provides complete relaxation on tax payable on a specific range of products, income or property. It generally lasts for a day, or two days or a week. Some of the most prominent kinds of taxes included under this holiday initiative are sales tax, property tax, income tax and GST (Goods and … [Read more...] about Tax Holiday
Offshoring
Definition: Offshoring is the process of relocating the business operations unit (production or services) to a different country (usually in developing nations) where cheap labour or resources are available. Here the company do not seek global retailing; instead, it looks forward to minimizing the cost of manufacturing and other supporting services. Setting up this new … [Read more...] about Offshoring