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What is Learning Organization

What is Learning Organization
What are Learning Organizations? Need for Learning Organizations: The ever evolving, dynamic business environment and the complex relationship among various countries in the political and business arena necessitate the need for a learning organization. This becomes essential for organizations to be flexible and be able to respond to change which is the only enduring source of competitive strength. What is a learning organization? A learning organization is the term given to a company that facilitates the learning of its members and continuously transforms itself. Learning organizations develop as a result of the pressures facing modern organizations and enables them to remain competitive in the business environment. Learning is used to reach their goals and avoid repeating mistakes. Employees learn to link their personal goals to organizational goals and link rewards to key measures of performance. The managers learn to design systems and procedures to motivate learning process and to encourage employees to feel free to share information and take risks. Characteristics of a learning organization: It nurtures a climate of trust in the organization and people are encouraged to learn and develop their #knowledge and skill sets. It inspires human resources in the immediate external environment such as customers, suppliers, creditors etc., to learn as and when possible. The whole business policy revolves around #HRD strategy. The organization subjects itself to continuous transformation in which learning and working run hand-in-hand. Learning Based Techniques: Organizational learning concept is the latest OD (#Organizational Development) technique. #Ernst & Young, the largest #accounting firm has set the following procedures for learning purpose. Managers play a vital role in this transformational process of learning. They are responsible for choosing employees who are willing to and capable of learning, and must ensure that the participants in the program are trainable. They must get the support of #trainees and others. Trainees must be appraised about the benefits that will result from training and the managers also should enjoy the support of supervisors, #co-workers and their sub-ordinates. This is very essential to facilitate learning process, to ensure availing of honor and respect of peers and sub-ordinates. The opinion of trainees, supervisors, co-workers and sub-ordinates must be obtained on the content of training, the location and the time and duration of the training. Managers also play a key role in assisting others in goal-setting and meeting those goals. Goal setting is necessary to improve their performance and direct their attention to specific #behavior that needs to be changed. Managers may assist the sub-ordinates and peers to identify tools and resources for acquiring knowledge. Managers must also focus on providing performance feedback as it serves two objectives; it provides information on performance and serves as a motivating tool. Managers should urge their employees to analyze their performance, identify weaknesses and take action to overcome weaknesses. Managers may assist the employee to transfer the learned skills/knowledge to work. It will be a wiser move to design #training methods in such a way as to enable the trainees to practice skills on their jobs between training sessions. DOWNLOAD THE PDF VERSION...
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Market Assessment

Market Assessment
Market Assessment Framework Industries whether small or large function in an environment of controllable and uncontrollable variables. A small enterprise has to constantly interact with the market in which it has to operate and is also exposed to the risk of other environmental factors. Its marketing efforts must stay fine-tuned to suit the requirements of the market in general and the needs and wants of the customers in particular. They have to develop an exceptional market orientation in light of Intensified industrial activity Increased competition and Increased discerning capacity of customers. Need for Market Assessment: The marketing orientation outlook will drive an entrepreneur to seek answers to many questions relating to market segments, marketing inputs, product quality, price structure, technology of manufacture etc., before setting up the venture. This exercise will facilitate him/her to move ahead with greater degree of confidence and tackle the problems that may arise during the later stages, in a professional manner. Market Composition: Analysis of market demand, the competitive situation and trade practices are vital for a sound market assessment. The market is composed of a large variety of customers who differ in their likes and dislikes, options, preferences, education, employment, income and status. The location of customers also differ, some may be located nearer and others in distant places. Here are 30 Great Marketing Ideas to Increase Sales for Your Small Business: Factors that help a firm to decide the target segment which is of special interest: Resource availability Scale of operation and its Impact on profitability The identification of the customer groups aids in making an estimate of the market demand for the product chosen. Look for Competitive Situation: Once the market demand has been estimated, one has to look for the competitive situation prevailing in the market as a firm cannot just pursue its own policies without considering what the competitors are up to. The nature and extent of competition will place several constraints on the marketing policies of a firm and a thorough analysis of the same will help in pricing and also in identifying the gaps and opportunities that will be available for exploitation. Opportunity Evaluation: An intelligent and experienced entrepreneur would weigh an opportunity as follows: How large is the gap between demand and supply in the market and what is the nature of competition in the market for the product? Whether the product is covered under any of the promotional policies of the government, so that, either entry into business or competition in the market is facilitated. Whether there is any special product/service specific problem that he/she will face and can avail of any part of promotional policies, to soften the impact of these problems. Based on such product-market-policy, policy-product-market type of analysis, the entrepreneur will finally conclude if the opportunity is worth investing...
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Just in Time Manufacturing

Just in Time Manufacturing
Just in Time Manufacturing Concept JIT Philosophy: With the progression in product-process technologies and the hybrid manufacturing systems, the Japanese have been perfecting a manufacturing system called ‘Just in Time’ or ‘JIT’. This JIT operating system is nothing but a production strategy that strives to improve business return on investment by reducing in-process inventory and associated carrying costs. The JIT purchasing system has emphasis on timing to supply materials just in time for use on the factory floor. Equally important emphasis is given to close and long term relationship with a few suppliers. The suppliers in JIT manufacturing are geographically closely located. Specifications: Producing and delivering finished goods ‘just in time’ to be sold Partly finished goods ‘just in time’ to be assembled into finished goods Parts ‘just in time’ to go into partly finished goods Materials ‘just in time’ to be made into parts. Loose specifications instead of rigid product specifications are used which leads to best use of supplier specialization and expertise for low cost and better quality. Frequent deliveries (daily deliveries) of small lots of exact quantities required are supplied directly to the shop floor avoiding large inventories, paper work and double inspection. The JIT system underlines the mutual confidence between buyer and supplier and long term relationship. This leads to investment by the supplier for the benefit of the buyer in terms of plant and equipment for improvement of quality, reduction of cost and shortening manufacturing lead times. Where does the responsibility lie? ‘The responsibility for the quality rests with the manufacturer of the part’ is the principle behind this Japanese practice. The primary responsibility for quality is transferred from quality control department to the production department. The quality control is considered a line function rather than staff function. The processes are designed to have less specialization on the part of workers. The physical layout is arranged in such a way that workers can operate two or three machines effectively and thereby become multifunctional. Good Quality First Time Every Time: Workers are organized in small closely linked groups thereby building team work. The production for each stage is planned in small lot sizes just meeting the needs of the subsequent stage. The system is such that even if one item produced is substandard, it would affect subsequent processes causing shortages and exposing the process or worker who has produced substandard item. This acts as a great motivator to produce good quality first time, every time. This also heightens the awareness among the workers about the inter dependence of processes. Taiichi Ohno, Father of the Toyota Production System saw this as an attribute rather than a problem. He used an analogy of lowering the water level in a river to expose the rocks to explain how reducing inventory showed where production flow was disrupted. Once bottle necks were exposed, they could be rectified or removed. Since one of the main barriers was rework, lowering inventory shoved each shop to improve its own quality. Just-in-time is a means to improving performance of the system, not an end. The result of the Japanese manufacturing system is quite pervasive in the areas of: Reduction in inventory Reduction in scrap Reduction in work Reduction in indirect costs Reduction in spare Reduction in administrative costs Increase in motivation of workers Increase in quality Better response to customers Better system flexibility and quicker response. What is kanban? Kanban is Japanese for “visual signal” or “card.” Toyota line-workers used a Kanban (i.e., an actual card) to signal steps in their manufacturing process. The system’s highly visual nature allowed teams to communicate more easily on what work needed to be done and when. It...
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Sole Proprietorship

Sole Proprietorship
Sole Proprietorship – Features and Advantages Sole Proprietorship is a business owned and controlled by only one person. The proprietor who sows, reaps and harvests the output of his labor owns all the assets in his firm. This form of business organization is one of the most popular forms in India and the reason being the advantages it offers. Here, business can be started simply after obtaining necessary manufacturing license and permit. Setting up Process: Setting up a sole proprietorship entity is trouble-free as compared to other form of companies. Unlike Limited Liability Partnership (LLP) or any other private or public companies; in sole proprietorship you do not need to file an application to ROC- Registrar of Companies. You need to choose a name for your business, open a bank account and take license for varied services including Service Tax, VAT, IEC, Shops & Establishment license, PAN, Importer Exporter Code, ESI, Professional Tax, Central Excise Duty, CST Registration, Employee Provident Fund Registration etc. After acquiring the respective licenses one can commence with his her sole proprietorship firm in India. Some important licenses you may need for starting a sole proprietorship firm in India: PAN CARD Permanent Account Number (PAN) is a ten-digit alphanumeric number, issued in the form of a laminated card, by the Income Tax Department. It is mandatory to quote PAN on return of income, all correspondence with any income tax authority. A typical PAN is AABPS1205E. A complete overview of pancard  can be seen at – http://www.incometaxindia.gov.in/pan/overview.asp New PAN CARD application – https://tin.tin.nsdl.com/pan/ TAN CARD Tax Deduction Account Number (TAN) is an alphanumeric number issued to individuals who are required to deduct tax on payments made by them under the Indian Income Tax Act, 1961. The Tax Deducted at Source on payments made by assessees has to be deposited under the following number to enable the assessees who have received the payments to claim the tax deducted in their income tax return. So TAN is the abbreviation for Tax deduction and collection Account Number. Application for tan card – https://tin.tin.nsdl.com/tan/ SERVICE TAX REGISTRATION Service tax has to be paid to the Government of India by the service provider who collects the same form his customers. As on 1st May, 2006,   95 services are identified as taxable services in India.  Section 64 of the Finance Act, 1994, extends the levy of service tax to the whole of India, except the State of Jammu & Kashmir. The current rate is 12.36 % on the gross value of the service. Service tax can be paid online – https://www.aces.gov.in/ VAT AND CST VAT (Value Added Tax) is a form of indirect tax imposed only on goods sold within a particular state, which essentially means that the buyer and the seller exist in the same state. Only when tangible goods and products are sold, VAT can be imposed. VAT (Value Added Tax) is governed by respective state Acts. Every state has a separate and distinct VAT act reserved for their state. CST (Central Sales Tax) is a form of indirect tax imposed only on goods sold from one state to another state, which particularly takes into account that the buyer and the seller exist in two different states. CST (Central Sales Tax) is governed by Central Sales Tax Act, 1956. This tax is governed by a single central act, though the chargeability is state specific. Registration for VAT AND CST IN Tamil Nadu – http://www.tnvat.gov.in/English/NewDealerRegist.aspx THE BUSINESS VIABILITY CHECKLIST FOR ENTREPRENEURS IMPORT EXPORT CODE: DGFT – Directorate General of Foreign Trade runs various schemes for trade promotion and facilitation. Using this facility you may file, prepare and track online application in...
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Business Policies-Guidelines to Attain Goals

Business Policies-Guidelines to Attain Goals
Business Policies – Framing and Execution Business policies are the keystone in the arch of management and the life-blood for the successful functioning of business, because without well-laid down policies, there cannot be lasting improvements in the economic condition of the firm and labor-management relations. A policy is a positive declaration and a command to its followers. It translates the goals of an organization into selected routes and provides the general guidelines that prescribe and proscribe programmes, which in turn, dictate practices and procedure. Attainment of Objectives: Buisness policies are general statement of principles for the attainment of objectives which serve as a guide to action for the executives at different levels of management. They pave a broad way in which the sub-ordinates tread along towards accomplishing their objectives.     Hierarchy: For each set of objectives at each level, there is a corresponding set of policies. The Board of Directors determine the basic overall corporate policies The top management decides on the executive corporate policies Managers decide on the departments / divisional policies Middle managers handle  the sectional policies     Consistent Decisions contributing to the Objectives: The policies delimit the area within which a decision has to be made; however, they do allow some discretion on the part of the man on the firing line, otherwise, they would be mere rules.   At the same time too much of discretion in policy matters may prove harmful to the accomplishment of organizational objectives and hence it is generally within limits.   Mutual Application: Policies in general are meant for mutual application by sub ordinates. They are fabricated to suit a specific situation in which they are applied, for they cannot apply themselves.   Unified Structure: Policies tend to predefine issues, avoid repeated analysis and give a unified structure to other types of plans, thus permitting managers to delegate authority while maintaining control.   Policies for all Functional Areas: In a well-structured and managed organization, policies are framed for all functional levels of management. Corporate planning Marketing Research and Development Engineering Manufacturing Inventory Purchase Physical Distribution Accounting Finance Costing Advertising Personal Selling Special Promotion, are some areas that require clear-cut policies.   Clear-Cut Guidelines:im,ii  Policies serve an extremely useful purpose in that they avoid confusion and provide clear-cut guidelines. This enables the business to be carried on smoothly and often without break. They lead to better and maximum utilization of resources, human, financial and physical, by adhering to actions for conservation. The HR Quote Book – 55 All Time Popular HR Quotes Top Motivational Quotes For HR Professionals… Quotes to keep your employees motivated (and to keep you sane). Use these popular and handy HR Quotes in your blogs, books, journals, presentations, tweets, facebook posts, pinterest boards and instagram posts. Lots of illustrations included…. Don’t miss the free PPT on Coaching and...
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