About Us|Contact Us|Register|Login

[google-translator]

Unsecured and Secured Short Term Sources

Unsecured and Secured Short Term Sources
Unsecured and Secured Short Term Sources Unsecured Non-Bank Short Term Sources Commercial Paper: Short-term, unsecured promissory notes, generally issued by large corporations, with maturities of a few days to 270 days. Usually issued in multiples of $100,000 or more. Commercial paper market is composed of the (1) dealer and (2) direct-placement markets. Advantage:  Cheaper than a short-term business loan from a commercial bank. Dealers require a line of credit to ensure that the commercial paper is paid off. Private Loans: A short term unsecured loan may be taken from a wealthy shareholder, a major supplier, or other parties interested in assisting the firm through a short term difficulty. Cash Advances for Customers: A customer may pay for all or a portion of future purchases before receiving the goods. This aids the firm to purchase raw materials and produce the final goods. This form of financing is a special arrangement for expensive or custom-made items that would strain the financial resources of the manufacturing company. Secured Short-term Sources: Security (collateral) — Asset (s) is pledged by a borrower to ensure repayment of a loan.  If the borrower defaults, the lender may sell the security to pay off the loan. Collateral value depends on: Marketability Life Riskiness Types of Inventory Backed Loans: Field Warehouse Receipt — A receipt for goods segregated and stored on the borrower’s premises (but under the control of an independent warehousing company) that a lender holds as collateral for a loan. Terminal Warehouse Receipt — A receipt for the deposit of goods in a public warehouse that a lender holds as collateral for a loan. Trust Receipt – This loan is secured by specific and easily identified collateral that remains in the control or physical possession of the borrower. A security device acknowledging that the borrower holds specifically identified inventory and proceeds from its sale in trust for the lender. Example: When automobile dealers use this kind of financing for the cars in their showrooms or in stock, it is called floor planning. As implied by the name, this kind of loan requires a considerable degree of trust in the honesty and integrity of the borrower. Once the inventory is sold or the receivable is collected, payment must be remitted to the lender. If there is a default, the loan is said to be secured by bogus collateral. These loans are common when the collateral is easily identified by description or serial number and then each item of collateral has relatively large dollar value. Floating Lien — A general, or blanket, lien against a group of assets, such as inventory or receivables, without the assets being specifically identified Chattel Mortgage — A lien on specifically identified personal property (assets other than real estate) backing a loan. Related Posts: MEANING AND DEFINITION OF FINANCE INTERNATIONAL TRADE AND FINANCE STARTUP COST FOR SME’S Financial Institutions: Primary sources of secured short term financing are banks and financial institutions, including insurance companies, finance companies, and the financial subsidiaries of major corporations. The best mix of short-term financing depends on: Cost of the financing method Availability of funds Timing Flexibility Degree to which the assets are encumbered It is always better to go for bank loans or loans from established and long standing private institutions because there is a leverage for the debtors to sit for discussions to sort out issued in case of defaults. All banks in India are trying to close accounts labeled under NPA- Non Performing assets either by recovering the money through one time settlement  (OTS) or by auctioning the collaterals pledged during the time of loan sanctioning. If you happen to take loans from individuals or third-parties, you...
read more

Personnel Power

Personnel Power
Personnel Power Personnel or Human Resource Management: is the strategic approach to the management of an organization’s most valued assets – the people. Human resource is always in great demand as competent or skilled labor is in short supply. It is important to remember that no one is born with the value of excellence, as the acquisition is gradual in nature and only possible through proper training and one’s own cognitive perception. It is not that people have to belong to the elite group to make their mark in the respective fields. The best leaders and managers often are ordinary people creating amazing results and astounding success. Try some of these golden etiquettes for achieving excellence in the management of human resource: Clear objectives have to be set with the consensus of the employees Recognize the progress Confront problems Manage with flexibility Understand the value of quality Manage time for better results Enhance decision-making skills by delegating authority Master stress Motivate people Think like a winner Pursue a participative style of leadership To achieve the goals of the organization, the HR department will have to reorient itself on the following lines. It is very important that ‘Right people are chosen for the Right job’. During the induction stage, employee attitudes must be shaped in harmony with the culture of the organization. Dynamic training system should be introduced which is supposed to be a continuous process rather than a sporadic exercise. Quality of Work Life: Organization should ensure satisfactory quality of work life in order to minimize the sense of alienation, found in the workplace. It should contribute to an atmosphere to improve self-discipline, self-motivation and self realization for the purpose of production optimization in terms of both quantity and quality. The presence of a fair performance appraisal system will facilitate the growth prospects of employees in terms of career advancement and development. Fair Compensation: Institutions must work out a fair compensation package for all categories of workmen so that they may be able to receive the living wages instead of subsistence-level wages. The accent should be on production and productivity, without any compromise. Opportunities are aplenty, particularly for experienced personnel as the industries offer wide job prospects for the prospective candidates. Now-a-days job hopping is rampant which is a serious issue to be managed. A number of organizations offer bonus in the form of stock that interjects a feeling of oneness, which ensures alignment of interest between employees and the management. Favored position in terms of enhanced performance from the work force is possible only if the management comes down to embrace and lend their ears to certain rational demands form the other end. Security of Employment Increased wages Employee ownership Participation and employment Internal promotions Information sharing Incentives etc., The personnel function can 1) Attract attention to indicate the importance attached to management’s process and the various policies, practices and systems that support the process. 2) Provide necessary information and expertise on best practices in rival companies to benchmark the process and provide with analytical support for diagnosing and recounting solutions to problems arising in the employee management relation. 3) Engage in business decisions and accelerate change that is consistent with the underlying values of the company. Note: The laws and matters relating to wages and bonus come under the purview of the Ministry of Labor and Employment. The Minimum Wages Bill was passed by the Indian Dominion Legislature and came into force on 15th March,...
read more

Career Management

Career Management
Career #Management How to go about Career Management? Career Management is very essential which facilitates smooth transitions from one level to the next higher level in a #profession. You cannot decide what to do unless you know what you are going to do or where you want to be tomorrow. Long term personal goals and professional goals are elemental in setting overall targets. According to Stephen P.Robbins, career is “a sequence of life positions occupied by a person during the course of a lifetime. Setting Goals for an Effective Career Your goals may be Long term Short term Personal or Professional Consider if you are goals are 1.       Realistic 2.       Whether you possess the skill set 3.       Achievable within the set time limit (duration) Based on these goals it is important to make long term and short term career plans. Also write down your ·         #Experience ·         Skills and ·         Qualification All these basic but vital things will give you a clear picture as to where you stand and what has to be done to improve your skills. EYE OPENERS WHILE SETTING PERSONAL CAREER TARGETS A.      What do you want to accomplish from two or three years from now? B.      What developments and #knowledge can make this possible? C.      How do you want to prepare yourself to achieve these targets or in what way you want to improve your skills? D.      Is there a necessity for check points in the middle of the progress to make the necessary revisions? TIPS TO MANAGE DIVERSIFYING CAREERS ·         #Adaptability and #flexibility are vital to reduce the stress of redundancy. ·         Anticipate the changes and be prepared for anything at any time ·         Look at the ‘Job Loss’ as an opportunity to pursue a new career that interests you. CAREER PLANNING A career will be satisfactory only when it interests the person and provides challenge and not by mere compensation or reward. Each #organization should plan and help the individual, but every individual should take interest in his career. Career planning entails evaluating abilities and interests and considering alternative career development activities. The process results in Decisions to enter a certain #occupation Join a particular organization Accept or decline new job opportunities{relocations, promotions or transfers} Leave an organization for another job or #recruitment. EFFECTS OF CAREER PLANNING In corporate companies, a typical career planning program might include 1.       Career counseling by members of the HR department 2.       Workshops to help employees evaluate their skills, abilities, and interests to decide on their career development plans 3.       Self directed programs to help the workforce guide their own careers through self-assessment and 4.       Communication of job opportunities through job postings, videotapes and publications. One has to remember that career counseling may increase the pressure for  managers and in turn the organization, as employees either become anxious about their present level of performance and chances for career advancement or they might use the opportunity to demand more from the firm in terms of pay, promotions etc., KEY CAREER ISSUES OF EMPLOYEES Dual-career couples: When both husband and wife work, their earnings and stress are in surplus #Stressors: Children under the age of six need parental care , but the amount of quality time of  parents with that of the children is not at all balanced and this causes a heavy stress for both sides emotionally. #Work schedule stressors: This increases as a person rises in an organization, job demands increase, with long hours of work and travel, but little time for family and vacation. #Relocation: The increase in the number of dual career couple poses problems for many companies when they try to relocate...
read more

Batch and Jobshop Production

Batch and Jobshop Production
Batch and Jobshop Production Batch Production What is batch production? A manufacturing process in which components or goods are produced in groups (batches) and not in a continuous stream. Characteristics: 1. Shorter production runs. 2. Plant and machinery are flexible. 3. Plant and machinery set up is used for the production of item in a batch and change of set up is required for processing the next batch. 4. Manufacturing lead-time and cost are lower as compared to job order production. Benefits 1. Better utilisation of plant and machinery. 2. Promotes functional specialisation. 3. Cost per unit is lower as compared to job order production. 4. Lower investment in plant and machinery. 5. Flexibility to accommodate and process number of products. 6. Job satisfaction exists for operators. Limitations 1. Material handling is complex because of irregular and longer flows. 2. Production planning and control is complex. 3. Work in process inventory is higher compared to continuous production. 4. Higher set up costs due to frequent changes in set up. Job Shop Production What is job-shop production? A job shop is a type of manufacturing process in which small batches of a variety of custom products are made. In the job shop process flow, most of the products produced require a unique set-up and sequencing of process steps. Job shops are usually businesses that perform custom parts manufacturing for other businesses. However, examples of job shops include a wide range of businesses—a machine tool shop, a machining center, a paint shop, a commercial printing shop, and other manufacturers that make custom products in small lot sizes. These businesses deal in customization and relatively small production runs, not volume and standardization. This is a custom made furniture design Characteristics: 1. High variety of products and low volume. 2. Use of general purpose machines and facilities. 3. Highly skilled operators who can take up each job as a challenge because of uniqueness. 4. Large inventory of materials, tools, parts. 5. Exhaustive planning is essential for sequencing the requirements of each product, capacities for each work centre and order priorities. Benefits 1. Because of general purpose machines and facilities variety of products can be produced. 2. Operators will become more skilled and competent, as each job gives them learning opportunities. 3. Full potential of operators can be utilised. 4. Opportunity exists for Creative methods and innovative ideas. Limitations 1. Higher cost due to frequent set up changes. 2. Higher level of inventory at all levels and hence higher inventory cost. 3. Production planning is complicated. 4. Larger space...
read more