Wednesday, May 30, 2012

On what basis a Job description is written? List the things it should cover.

Job analysis forms the base to produce a job description A job description is a written statement of what the worker actually does, how he or she does it, and what the job’s working conditions are. HR department uses this information to write a job specification; this lists the knowledge, abilities, and skills required to perform the job satisfactorily.

There is no standard format for writing a job description. However, most descriptions contain sections that cover:

 1. Job identifications

2. Job summary

3. Responsibilities and duties

4. Authority of incumbent

5. Standards of performance

6. Working conditions

7. Job specifications

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Thursday, May 24, 2012

Why is Appraisal done?

Every manager needs some way to appraise employees’ performance. If employees’ performance is good, you’ll want to reinforce it, and if it’s bad, you’ll want to take corrective action.

Performance appraisal means evaluating an employee’s current and/or past performance relative to his or her performance standards. It estimates the replacement value and quality of an employee.
 Performance appraisal always involves :

(1) Setting work standards,

(2) Assessing the employee’s actual performance relative to those standards, and

(3) Providing feedback to the employee with the aim of motivating him or her to eliminate performance deficiencies or to continue to perform above par.
 An appraiser makes a report after evaluation which becomes a document for the HRD for future references and salary hike or promotion etc.
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Monday, May 14, 2012

What is Capital Budgeting? How to evaluate a project?

Capital budgeting can be explained to be a firm’s decision to invest its current funds most effectively in long term activities in anticipation of an expected flow of future benefits over a series of years.
The investment decisions could be in the form of additions, dispositions, replacements and modifications of activities or asset base that would ensure good returns on the utilization of the firm’s assets. Therefore, the manager has to give consideration to the following factors when capital budgeting decisions are involved viz.

(a)    The existence of huge expenditures or large cash exposure.

(b)    The involvement of long gestation period between initial expenditures and returns and

(c)    The expectation of higher returns because of factors (a) and (b) above.

Going by the factors above, the manager must not fail to make appropriate investment or selection of good projects because, the volume of fixed assets far exceed current assets and the owners of the company (shareholders) are long term investors, whose high expected returns can only be met with the higher returns from long term assets.

These assertions, call for the need to examine the different methods of selecting investments in long term assets. Following are the main tools used to evaluate the project:

 1. Non Discounted Cash flow Techniques :          

a.  Payback period (PBP):     

b.  Accounting Rate of Return (ARR)

            2. Discounted Cash flow Techniques

c.  Net Present Value (NPV):    

     d. Internal Rate of Return (IRR)

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