Financial and Non-Financial Methods in Business
Financial Methods
Time-Rate (‘Flat Rate’) Schemes
This payment method involves the employee receiving a basic rate of pay per time period that they work (e.g., £5 per hour, £50 per day, £400 per week). The pay is not related to output or productivity.
Any time that the employee works above the agreed number of hours per week may make them eligible for overtime payments, often at ‘time and a half’ (e.g., £7.50 per hour instead of £5 per hour).
Piece-Rate Schemes
This payment method involves the employee
Read MoreTeam Organization, Coordination, and Firm Structures
Team Organization and Coordination
Team Organization: Contexts characterized by a collective action of joint production with team production technologies and opportunity costs for the resources used in production.
Coordination Problem: Characterized by a situation where one decision maker, A, realizes that the best decision to reach her goals depends on the decision of other agents, for example B. In most cases, B will be in a similar situation, so the starting point of a coordination problem is the
Read MoreUnderstanding Internal Organization Principles in Companies
Internal Organization of the Company: General Principles of Organization
• The company is a coordination unit.
• It coordinates the activities of individuals and the use of material resources.
• In an enterprise, the work of coordination is referred to as management.
• The administrative function of the company consists of four basic tasks:
1. Planning (to establish what is to be done).
2. Organization (using available information to assign tasks).
3. Direction (to ensure tasks are carried out
Customer Satisfaction Through After-Sales Service
After-Sales Service
It is the tasks that the organization uses after the sale to obtain total customer satisfaction.
It is an important source of information and should be considered an investment.
It is easier to sell new products to a satisfied customer than finding new customers.
Advantages:
- It provides greater customer satisfaction
- It improves the image of the company
- It improves direct knowledge of the market
- It involves potential customer loyalty
- It implies a likely increase in sales
Disadvantages:
- It
EU Public Policy: Cycle, Budget, and Key Policies
EU Public Policy: An Overview
Within the framework of its powers, the EU can submit proposals on matters where citizens believe a legal act of the Union is required to implement the Treaties. Most public policy within the EU continues to be made at the member state (MS) level. However, in a growing number of areas, including various economic, foreign, and social policies, decisions are made at the EU level.
The Public Policy Cycle in the EU
The classical elements of the public policy cycle are agenda
Read MoreUnderstanding Accounting Elements and Valuation Criteria
5. Criteria for Registration or Recognition of Accounting Elements of Annual Accounts: Bookkeeping is the process by which the various elements entering into the asset balance are recognized. When should they be recognized? Likely when they are expected to provide future economic benefits or returns for the company. Liabilities are recognized when they mature, and it is necessary to distinguish a product that must be delivered or resources that will incorporate future economic benefits or income.
Read More