|14-06-2013, 10:02 PM||#1|
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Accounting an Introduction
Business function II-B203B
This is a summary of accounting book .I hope this will help you in studying for exams.
Introduction to Accounting and Finance
Accounting: is concerned with collecting, analyzing and communication financial information. This is used for to make decision, control and plans about businesses.
Accounting report are the major source of information for financing and investment decision making. Accounting information is needed to decide to whether to:
1. Develop new product or services
2. Increase or decrease the price or quantity of existing products or services
3. Borrow money to help finance the business
4. Increase or decrease the operation capacity of the business
5. Change the methods of purchasing, production or distribution
Who need information to decide whether to:
1. Invest or disinvest in the ownership of the business
2. Lend money to the business
3. Offer credit facilities such as; a bank to grant منح an overdraft السحب على المكشوف
4. Enter into contracts for purchase of product and services
It should be prepare financial reports on regular basis
Financial management: is concerned with the ways in which funds for business are raised and invested. This raise funds from investors (owners and lenders) and use their funds to make investments (equipment, premises, inventories)
An understanding of finance should help in identifying:
1. The main forms of finance available
2. The costs and benefits of each form of finance
3. The risks associated with each form of finance
4. The role of financial markets in supplying finance
5. Evaluating in returns from an investment
6. Evaluating in risks associated with an investment
Who are the users of accounting information?
Accounting should be clear for whom and well prepared and for what purpose the information will be used? There are various group of people “user group” interest in particular organization as like what showing in diagram 1.1 pages 3.
This might include the ability to continue in business and meet their needs
How the best to compete against you (ur company) whether you leave the market. They need to know competitor using performance. This might try to assess financial strength and identify significant changes.
Whether you decide to continue working or demand rewards for doing good job.in both cases the future plan, profits and financial strengths of the business.
They interest in paying tax and how much they collect .it also agreed pricing policies. They need financial support. For making this decisions an assessment of profits, sales, revenues and financial strengths.
It is ability to provide employment for the community and use community resources. and its likely willingness to help fund environmental
They would involve an assessment of the likely risks and the future returns
They would involve an assessment organization ability to pay for any goods and services supplied
They require repayment of any existing loans and organization ability to pay the interest and to repay the principal sum
To see the performance of business need to improve. The performance data would be compared with earlier plans. Managers may also wish to decide whether action needs to be taken.
This would be involving an assessment of likely risks and returns associated. The decisions on rewarding senior managers.
Providing a service:
To be useful to “user group” the information provided must possess certain 2 qualities. It must be relevant and faithfully represent what it supposed to represent.
Accounting information should make a difference. It should be relevant to the prediction of future events. By confirming past events users can check on the accuracy of their earlier predictions of future events. By confirmation of past events user can check on accuracy of their earlier prediction. To be relevant, accounting information must cross materiality. This means that it should not be included within accounting reports. The user ability to interpret them. The threshold of materially will vary from one business to the next. The nature of the information and the amounts involved must be considered within the context of the accounting reports of particular business.
Accounting information should be capable of relied upon to represent what it supposed to represent. It should be complete and neutral which achieved by selecting and presenting the information provided without bias. Finally it should be free from error as result of eliminating errors and omission in the way in which information has been selected and described.
It compare financial statements with previous years and others similar companies. This help to identify similarities and differences between items information and identify changes in the business overtime to evaluate the performance of the business.
Accounting information is verifiable where different independent experts. Verifiable information tends to be supported by evidence.
Accounting information should be produced in time for users to make their decisions. The later accounting information is produced, the less useful it becomes.
Accounting information should be set out as clearly and concisely as possible. It should be understood by those at whom the information aimed.
Financial accounting and management accounting:
It seeks to meet the accounting needs of all of the users expect managers
It seek to meet the accounting needs of managers
The main areas differences are as follows:
1. Nature of the reports produced
a. Financial accounting reports tend to be general purpose that useful for a board range of users and decisions.
b. Management accounting reports, on the other hands are often specific-purpose reports. The decision in mind and/or for particular manager.
2. Level of details
a. Financial accounting reports provide users with a board overview of performance and position of the business for a period
b. Management accounting reports, however often provide managers with considerable detail to help them with a particular operation decision
a. Financial accounting reports for many business , accounting regulations that try to ensure that they are produced with standard content and in a standard format
b. Management accounting reports are for internal use only; there are no regulation for external sources concerning the form and content of the report. They can be designed to meet the needs of particular managers
4. Reporting interval مدة زمنية
a. Financial accounting reports for most business it produced on an annual basis, through some large company produce half yearly reports.
b. Management accounting reports it may produce as frequently as required by managers. In many businesses, managers are provided with certain reports on a daily, weekly or monthly basic. In addition, special purpose reports will be prepared when progress frequently.
5. Time orientation
a. Financial accounting reports reflect the performance and position of the business for a past period.
b. Management accounting reports, on the other hands, often provide information concerning future performance as well as past performance.it often based on projected future information as well as past information
6. Range and quality of the information
a. Financial accounting reports is concentrate on information that can be quantified in monetary terms.it places greater emphasis on the use of objective, verifiable evidence when preparing reports.
b. Management accounting reports also produces such reports, but is also more likely to produce reports that contain information of a non-financial nature, such as( physical volume of inventories , number of new products launched, physical output per employee.it is less objective and verifiable, but nevertheless provide managers with information they need.
In the past it has been argued that accounting systems are biased in favour of providing information for external users. The modern management accounting systems will usually provide managers with information that relevant to their needs rather than that determined by external reporting requirement. External reporting cycles, however retain some influence over management accounting.
Measuring and reporting financial position (Balance sheet)
The Major Financial Statements:
It is aimed to provide a picture of the financial position and performance of a business. Business accounting system will normally produce three financial statement. These three statements (the statements of cash flows (cash in and cash out), income statements (or profit and loss account) and statement of financial position (balance sheet) is concerned with answering the following questions relating to particular period:
What cash movements took place? (cash flows)
How much wealth was generated? (Income statements, statement of financial performance)
What is the accumulated wealth of the business at the end of the period and what from does it take? (Balance sheet, statement of financial position)
Statement of cash flows showing the cash movements (cash in and cash out). It is cash vital resource that is necessary for any business to function effectively as like lifeblood of a business. It required meeting debts that become due and acquired other resources.
An income statement can be prepared to show the wealth (profit) generated in business. The wealth generated arises from trading and will be the difference between the value of the sales made and the cost of goods.
Balance sheet is established the accumulated wealth position of organization. And it provides the total wealth of the business.
1- Asset: Are the business resources things of the value of business
2- Equity: is the word used in accounting to describe the investment or the stack, of the owners.
See pages 41, 42, 43
The statement of financial position:
It set out the assets of the business and the claims against the business.
An asset is essentially a resource held by a business. It is treated as an asset for accounting purposes. It should have the following characteristic.
1. A probable محتمل future benefit must exist
The item must be expected متوقع to have some future monetary value. The value can arise the asset’s use within business or through its hire or sales.
2. The benefit must arise from some past transaction or event
The transactions, giving rise to business right to the benefits. It must have already occurred and will not arise at some future date.
3. The business must have the right to control the resource
If the business can’t control the resource, it cannot be regarded as asset for accounting purpose.
4. The asset must be capable of measurement in monetary term
The item can be measured in monetary terms with responsible degree of reliability. But, sometimes items cannot measurement in monetary term or difficult to quantify as like Hello Magazine. Therefore, it will not treat as an asset and will not include on the statement of financial position.
Sorts of asset items in statement of financial position
2-Plant and equipment
3-Fixtures and fittings
4-patents براءة اختراع and trademarks العلامات التجارية
6- Investments outside the business
Assets can also be divided into tangible and intangible assets. Tangible assets that have physical substance and can be touch (inventories). Intangible assets that have no physical substance and provide expected future benefits (patents).
Claims (Liabilities + Equity)
A claim is an obligation of a business to provide cash, or some other forms of benefit to an outside party (stockholders).There are two types of claims:
This represents the claim of the owner(s) against the business in statement of financial position. This referred to as the owner’s capital. Owner contributed any funds will be coming outside the business
Liabilities represent the claims of all individuals and organizations, apart from the owner. They arise from past transactions and events in lending money or interest rate or account payable.
The Accounting equations:
Assets = Liabilities + Equity
Any changes in asset side it will immediately effect the claims side (Liabilities & Equity).
See example 2.2 pages 49, 50, 51
1- Current Assets:
Currents assets are basically assets that are held for the short term.that assets that meet any following conditions:
◦ They are held for sale or consumption during the business’s normal operating cycle.
◦ They are expected to be sold within one year
◦ They are held principally for trading
◦ They are cash or near cash assets with high market ability.
Operation cycle of business it is time between buying (creating product or services) and receiving cash on it sales for less than a year.
The most current assets are:
2-trade receivable (******ers who owe amount of goods or services supplied on credit and they will be paid later)
2- Non- current Assets (fixed assets)
It is also called fixed assets. It is simply assets that do not meet the definition of current asset that used for long term operation. On- current asset may be tangible or intangible.
Examples of fixed assets are :
3. Motor vehicles
5. Reference books
It is important to appreciate that how a particular asset is classified (that is between current and non-current) may vary according to the nature of business. This is because, the purpose for which a particular type of asset is held may differ from business to business.
It classified into equity (owner’s claim) and liabilities (claims of outsiders). Liabilities are classified as either current or non-current.
1- Current Liabilities:
These liabilities are basically amounts due for settlement تسوية in the short term. Liabilities meet the following conditions.
◦ They are expected to be settled المتوقع سداده within the business operating cycle
◦ They are held principally for trading purpose
◦ They are due to be settled within a year
1. Bank overdraft
2. Short term loans
4. Short term trade payables
2- Non-Current Liabilities:
It represents amounts due that do not meet the definition of current liabilities and so represent longer term liabilities.
This classification of liabilities between current and non-current helps to highlight those financial obligations that must shortly be met. Users can compare the amount of current liabilities with the amount of current liabilities with the amount of current assets. This comparison should indicate whether a business can cover its maturing obligations.
The financial risks associated with the business will increase. This is because these borrowings will bring a commitment to make periodic interest payments and capital repayments. This business may force to stop trading if this not commitment التزام is not fulfilled أوفت .
Example of Non-Current Liabilities is Long-term borrowings.
There are two basic layouts. First one on page 58 and second one on page 59
It refers to classification of assets and liabilities.
Total Assets= Current assets + Non-current assets
Total Liabilities= Current Liabilities + Non-current liabilities
The items are listed in reverse order of liquidity (nearest to cash). That means the assets that are furthest الأبعد from cash (most difficult to turn into cash) come first and the assets that are closet to cash come last.
Second statement layout page 59
We can see that total liabilities are deducted from total assets that give Net assets or equity. (Net assets (equity) = Total assets – Total Liabilities)
Capturing a Moment in time:
The statement of financial position reflects the assets, equity and liabilities of a business at a specified point in time. It has been compared to a photograph. A photograph freezes a particular moment in time and will represent the situation only at that moment.
A business will normally prepare a statement of financial statement of financial position as at close of business on the last day of its annual reporting period. When making decision on which year-end date to choose, commercial convenience can often be a deciding factor. You may choose to have a year-end date early in the calendar year (31 January) early in the calendar year.
Hence events may be quite different immediately before and immediately after the photograph was taken. When examining a statement of financial position, therefore, it is important to establish the date for which it has been drawn up. This information prominently displayed in the heading of statement.
Measuring and reporting financial performance (Income statements)
The main purpose of income statement or (profit or loss statements or Measuring and reporting financial performance) is
1- to measure and report how much profit (wealth) the business has generated over a period
2- It help user to gain some impression of how that profit made
Revenue is the simply measure of inflow of economic benefits arising from the ordinary operations of the business.
Some examples of the different forms that revenue can take are as follows:
Sales of goods (manufacturer)
Fees for services
Expense is opposite of revenue. It represents the outflow of economic benefits arising from the operations of a business. Expenses are incurred in the process of generating, or attempting to generate, revenue.
Examples of some of the more common types of expenses are:
The cost of buying or making the goods that are sold during the period
Salaries and wages
Rent and rates
Motor vehicle running expenses
Printing and stationery
Heat and light
Telephone and postage
Profit (or Loss) for the period = total revenue for the period- total expenses incurred to generating that revenue.
The income statement links the statements of financial position at the beginning and the end of a reporting period.]
At the start of new reporting period, the statement of financial position shows the opening wealth position of the business
The statement of financial position will reflect the changes in the wealth occurred the previous statement of financial position
After an appropraaite period, an income statement is prepared to show the wealth generated over that period.
In theory, it would be possible to calculate the profit or (loss) for a period by making adjustments for revenue and expenses through the equity section of the statements of financial.
By deducting expenses from revenue for the period, the income statement delivers the profits or loss by which equity figure in statement of financial position need to adjust.
:Income Statement Layout
See example 3.1 page 83
The brackets () indicate to deducted or mines. This agreement is used by accountant in preference to + or – signs will be used throughout text.
It is the first part of the income statement is concerned with calculating gross profit for the period. So it can be calculated deducting cost of goods sold from sales revenue. This is represents the profit from buying and selling
Gross profit= sales revenue - cost of goods sold
From the gross profit we found in first step, operating expenses will be deducted, this figure will be known as the operating profit. This is represents the wealth generated during the period from the normal activities.
Operating profit= Gross profit – operating expenses
Profit for the year: (Net profit)
Having established the operating profit, we add any non-operating profit (such as, interest receivable or stock investing). And deduct any interest payable on borrowing made by business or tax payable, to arrive at the profit for the period (Net profit).
Profit for the year is a residual that is, the amount remaining after deducting all expenses incurred in generating the sales revenue for the period and taking account of non-operation income.
Profit for the year: (Net profit) = operation profit + interest receivable – interest payable ( or taxes)
The main principles involved in preparing an income statement, we need to consider some further points.
1-Cost of Sales (cost of goods sold):
Many large retailers (for example, supermarkets) have point-of sale (checkout) devices that not only record each sale but also simultaneously pick up the cost of the goods that are the subject of particular sale. It tends to match sales revenue with the cost of goods sold, at the time of the sale.
To understand how this is done, we need to remember that the cost of sales figure represents the cost of goods that were sold by business during the period rather than the cost of goods that were bought by business
Goods available for resale = opining inventories + Purchases (goods bought)
Cost of sales (cost of goods sold) = Goods available for resale – closing inventories
See example 3.2 and 3.3 page 85
The following type of expenses can be deducted from gross profit:
Motor vehicle Expenses
Salaries and wages
Rent and rates
Loan interest payable
Printing and stationery
Heat and light
Telephone and postage
A key issue in the measurement of profit concerns the point at which revenue is recognized. Revenue arising from the sale of goods or provision of service could recognize by dealer.
Three types of recognize revenue:
At the time that order is placed by ******er (******ers order)
AT the time that the goods are collected by ******er ( goods delivered to ******ers)
At the time that ******er pays the dealer.
The three main criteria for recognizing revenue are that:
The amount of revenue can be measured reliably
It is probable that economic benefit will be received.
Ownership and control of the items should pass to the buyer
In applying these criteria is that sales revenue on credit is usually recognized before the cash is received.
Sales transactions for which the cash has yet to be recievied
For cash sales (that is , sales where cash is paid at the same time as the goods are transferred
This convention states that expenses should be matched to the revenue that they helped to generate. (matching convention in accounting guidance). Which the expenses is associated with a particular item of revenue must be taken in to account
(prepaid expenses (paid in advanced))
When the expenses for the period is more than the cash paid during the period
(Expenses > cash )
When the amount paid during the period is more than the full expenses for the period
(amount paid > full expenses)
Retailer expenses that not link directly to other expenses:
1. Rent and rate
3. Interest payment
4. License fees payable
When amount paid during the period is more than the full expense for the periods. Prepaid expenses is put it under assets in the statement of financial positions (balance sheet) under the heading Prepaid expenses or prepayments.
Profit, cash and accruals accounting:
In a particular accounting period, total revenue does not usually represent the total cash received. And the total expenses are not the same as total cash paid. The profit (revenue - expenses) will not represent the net cash generated which it needs to distinguish between profit and liquidity.
It is a gradual decrease the value of non-current assets that have finite and limited lives for long time of using it. This using up may relate to physical deterioration The expenses of depreciation tend to be relevant both to tangible non-current assets such as ;( property, plan, and equipment) and to intangible non-current assets for examples; (License to operate business)
Some non-current assets could have perpetual دائم useful lives as like (land and goodwill = Not Depreciated).
Calculating the depreciation Expense or (amortizations استهلاك ):
It includes Four factors need to be considered:
1. Cost of asset (fair value)
2. Useful life of assets
3. Residual value (after 5 years what the value of car)
4. Depreciation method (straight line methods)
1-Cost of asset (fair value)
It is the cost of an asset will include all costs incurred by the business to bring asset to required locations and make ready for use or intended to use within the business. For examples, (delivery costs, installation costs, taxes and numbers of plants).
2-The useful life of the asset:
A non-current asset has both a physical life and economic life.
The physical life will be exhausted through the effects of wear and tear and passage of time.it is to be extended considerably through careful maintenance, improvement.
The economic life is decided by which the effects of technological progress, by change in demand or change in the way that business operate. This is because; the asset is unable to compete with newer assets. (Is the machines still desired in market place?)
The economic life of an asset may be shorter than its physical life. (For example, a computer may have a physical life of 8 years and economic life of 3 years)
3-Residual Value القيمة المتبقية (disposal value قيمة التخلص ):
A business disposes of a non-current asset that may still be of value to others. This payment will present (residual value or disposal value). To calculate the total amount to be depreciated, the residual value must be deducted from the cost (fair value) of asset.
The business must select methods of allocating this depreciable amount between the reporting periods covering the assets useful life. There are two methods of collecting depreciation but, the well-known is called as Straight Line Method.
Straight Line Method is method simply allocates the amount to be depreciated evenly over the useful life of the asset. In other words, there is an equal depreciation expense for each year that the asset is held
Depreciation Expense =
Cost of asset – Residual value
See example 3.7 page 99
Uses & Usefulness of the INCOME STATEMENT
Most major business seems to prepare an income statement on frequent basis (monthly or even more frequently) records. The income statement must therefore, be regarded as providing useful information. This help in providing information on:
1- How effective the business has been in generating wealth.
Wealth generation is the primary reason for most businesses to exist, assessing how much wealth has been used
2- How the profit was derived.
The most concern for users is the final profit figure or bottom line. The income statement contains that should also be of interest. To evaluate business performance effectively, it is important to discover how the profit figure was derived. The profit in relation to sales revenue is important factors in understanding the performance of business over a period.
Definition of income statement A summary of a management's performance as reflected in the profitability (or lack of it) of an organization over a certain period. It itemizes the revenues and expenses.
Or A financial statement that measures a company's financial performance over a specific accounting period. Financial performance is assessed by giving a summary of how the business incurs its revenues and expenses.
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Human Resources Management Ch1
There is no exact definition of HR. but, on one hand it use for generically to describe HR activities. On the other hand, it widely used to give a particular approach to management people that people that distinction of personnel management.
Four objectives form the foundation of all HR activity.
1- Staffing objective
It concerns everything that ensures that business well staff by:
1) Designing organization structure
2) Identifying what type of contract and subcontract
4) Selecting right person in right place
5) Involve developing employment
6) Provide training and development opportunities
2- Performance objective
Organization ensures to improve productivity by:
1) Ensure well motivated people
2) Committed performance in their tasks
3) Training & developing
4) Rewards system
To achieve performance, it required by HR specialist to mentor employee of performance standards and tasks.
3- Change-management objective
Change may occur from different external factors. The changes come from different forms:
1) Change structure
2) Requiring reorganization of activity
3) Introduction new people
4) Cultural changes
It necessary leadership have skills to drive the change process. Employment change agents encourage acceptance of change and construction of reward system with support the change process.
4- Administration objective
It focus on supportive the achievement to facilitate an organization’s smooth running. They need accurate and comprehensive data about employee.
1) A record of achievement in term of performance in their attendance and training
2) Accurate records keeping is also control to ensuring compliance الامتثال with variety of legal regulations ( National minimum wages, time regulation)
HRM and the Achievement of Organizational Effectiveness:
What happens in field of HR impacts on an organization ability to meet objective. The objective will vary depending on type of organization and situations.
1) Meet goods services & need with highest achievable standards of quality
2) Meet government regulation
3) Meet user group expectation
So, it need to
1) Develop and main reputation or the image of organization
Reputation takes many years to achieve but, it can lose very quickly and immediately in any mistakes. The maintenance of reputation helps in maintains and grows the ******ers (in cooperate social responsibilities CSR)
2) Gaining ,developing and maintaining competitive advantages
It is fundamental aims of any organization to be more effectively and efficiently then the competitor organization by expanding market and combined knowledge and experience of an organization in attracting, engaging, rewarding and developing.
3) Management risk
Management risks by maximizing opportunities and minimization of risks.
The Evolving Psychological Contract: (expectation of each party)
This refers to the expectation, that employees have about role they play and what employer is prepared to give them in return. It is different from of legal contract which it is not written document.
As like employee expect from employer respect, development and promotion
Employer expect from employee honest.
Switch from old approach to new involve employer giving less job security and receiving less loyalty from employees in return.
Best Practice and Best Fit:
There are two schools of debate thoughts
1. Best practice schools
It is clear link between HR activity and business performance by using different methods in selection methods, training and development and rewards. The effect will only be maximized if the ‘right’ HR policies are pursued
HR practice exercises their positive impact: 1) By ensuring and enhancing the qualification of employee
2) By using their motivation and commitment
3) By designing work to encourage contribution from workers (employee)
4) significant investment in training and development
5) use of individualized reward systems (compete with different group)
General human resource management orientation tends to enhance business performance in all organizations.
[COLOR="rgb(153, 50, 204)"]2. Best fit schools[/color]
It is a link between human resource management practice and the achievement of competitive advantage. It needed is HR policies and practice which fit.
Chapter 3 Strategic Human Resource Management
The link between Business and HR Strategy:
Link between business strategy and HR strategy is a consistent theme which runs through the strategy literature. It is a simple model that is useful in visualizing different ways in which this relationship may be played out.
A-Separation Model: (No link at all)
There is no relationship at all, if indeed organization and human resource strategy does exist in an explicit form in the organization. This is a typical picture of 20 years ago, but it still exists today, particularly in small organizations.
B- Fit Model:
It represents a growing, recognition of the importance of people in the achievement of organizational strategy. Employees are seen as key in the implementation of the declared معلن
organizational strategy and HR strategy is designed to fit with this.
It takes the relationship one step further, as it recognizes the need for two way communications and some debate. What is demanded in the organization’s strategy may not be viewed as feasible and alternative possibilities need to be reviewed. The dialogue between the planed organization strategy and response of each function.
D-Holistic شامل Model:
It represents the people of the organization being recognized as the key to competitive advantage rather than just the way of implementing organizational strategy.it is develops this idea in relation to the resource-based firm business strategy can encompass a variety of other strategies which this suggest mutual development and some form of integration.
E- HR driven Model:
It offers a more extreme form, which places human resources strategy in prime position. The argument here is that if people are the key to competitive advantage, then we need to build on our people strengths. This model is a reflection of a resource based strategic HRM perspective.
Identifies model as a shift from human resources as the implementer منجز of strategy to human resources as a driving force in formulation of the strategy. This model is a reflection of a sources- based strategic HRM perspective with the increasing the attention being given to
the notion of “human capital”. In which organization which provide the potential for future competitive advantages.
Employee role behavior
1- High degree of creative behavior
2- Longer-term focus
3- A relatively high level of cooperatively, interdependent behavior.
4- A moderate degree of concern for quality
5- Equal degree of concern for process and results
6- Greater degree of risk taking
1- Job required close interaction among group
2- Performance appraisals and to reflect longer term and group-based achievement
3- Pay rate law, but allow employee to be stockholders
4- Broads career paths reinforce the development of board range of skills
Employee Performance Management
Stages of a Typical Performance Management System (PMS):
An Objective Setting Cascade تتالي
Business mission, values, objectives and competencies
Individual performance made significant steps in identifying the performance required of the organization as whole. This involves a mission statement means the performance seen within the context of a fundamental and primary theme.
In many organizations will identify the strategic business objectives that are required within the current business context to be competitive. They also identify core value of business and key competencies القدرات required.
Planning Performance: a shared view of expected performance:
Individual objectives derived from team objectives and an agreed job de******ion can be jointly devised by manager and employee. These objectives are outcome/results oriented rather than task oriented, are tightly defined and include measures to be assessed تقييم . In (designed the strength the individual, offer potential development as meeting business needs). It is helpful to both organization and the individual if objectives are prioritized.
SMART for describing individual Objectives:
It easier small part of organization to set targets than others for technical jobs.to identify technical targets, reflecting the heavy task emphasize they sees in their jobs.
Clearly, the timescale for each objective will need to reflect the content of the objective into performance management system. Managers and staff need to have a brief review meeting to look at progress in all objectives and decide what other objectives should be added, changed or deleted.
The critical point about a shared view of performance suggests that handing out توزيع a job de******ion or list of objectives to the employee is not adequate. Performance should be understood, where possible, to involves contribution from the employee. Specific objectives
allow for and benefit from a greater degree of employee and their views how to overcome the barriers.
The manager may pressure and force agreement through without listening to other department’s perspective. This lead to damage future good relations.
Delivering & Monitoring Performance:
Managers can help workers to achieve agreed performance to overcome any unforeseen or unexpected barriers. By sharing inside information affect the employee performance. If mangers find difficult in sensitive information, in this case identify information to expert (PR, Lawyer or financial consultants) who can help him.
1. Ongoing coaching during the task is especially important as managers guide employees through discussion by constructive feedback.
2. Employees carry out ongoing reviews to plan their work and priorities and also to advise the manager well in advance if the agreed performance will not be delivered by the agreed dates.
This means the managers needs to be kept up to data on employee progress. And employee need to keep up to date on organizational changes that impact on agreed objective.
3. These reviews are normally informal, although few notes may be taken of progress made and actions agreed. By providing an opportunity to the manager to confirm that the employee is on the right track.
4. They provide a forum of reward in terms of recognition of progress. A well done objective as completed can enhance the motivation to perform well in the future.
5. Provide regular feedback of ongoing assessment (In many organization can collect 360 degree feedback to be used a part of evidence.
Bonus, active and motivation
Formal Performance Review & Assessment:
Regular formal reviews are needed to concentrate on developmental issues and to motivate the employee. Also an annual review and assessment is needed of the extent to which objectives have been met.
There are other forms of reward other than monetary. IRS 2001 (institute for employment studies) found that there was more satisfaction with the system where promotion and development rather than money were used as rewards for good performance.
360-degree feedback: (whole circle)
This approach to feedback refers to the use of the whole range of sources from which feedback can be collected from every angle on the way that the individual carries out his or her job (from immediate line managers: peers: subordinates: more senior managers: internal ******er: external ******ers, individual themselves (Self-assessment).
360-degree feedback provides a better way to capture the complexities of performance. This This feedback enables the individual to understand how he/she may be seen differently (similarly) by different organizational groups. How contrast with individual’s own views own views of his/her strengths and weakness.
Feedback is based on a survey approach which it used with all the contributors of feedback match the needs of organization by using a well-designed questionnaire and distributed to a sufficient number of contributors of feedback. This help in providing reliable data because the feedback will be anonymous.
The feedback is usually represented to the individual in the form of graphs or bar charts showing the comparative scores from different feedback group. The feedback need to interpret by internal or external facilitators. It gives recommended that the individual will need some training in nature of system and how to receive feedback.
The principle behind the idea of feedback is the individuals can then use the information to change their behaviors and to improve performance, by setting and meeting development goals and an action plan.
التعديل الأخير تم بواسطة Noor Huda ; 14-06-2013 الساعة 10:24 PM
|14-06-2013, 10:34 PM||#3|
Definition of recruitment:
Recruitment includes those practices and activities carried out by the organization with the prime purpose of identifying and attracting potential employees.
There is always a need for replacement employees and those with new skills that business growth or change make necessary.
Recruitment is also an area in which there are important social and legal implications, but perhaps most important is the significant part played in the lives of individual men and women by their professional experience of recruitment and the failure to be recruited.
The recruitment process is not finished at the point of pool application has been received. It is continues in interviewing stages is complete when an offer is made and accepted.
Vacancies are often filled internally, creating what are referred to as internal labor markets. Sometimes organizations advertise all vacancies publicly and consider internal candidates along with anyone from outside the organization who applies. This approach is generally considered to constitute نس تاعيرشت good practice, especially in respect of equality of opportunity and diversity.
Many organizations prefer to invite application to invite internal candidate before they look to external labour market for new staff.
Advantages of Internal Recruitment
1. It is less expensive by placed in company newsletter or staff noticeboards ( no need to for job advertisements or recruitment agencies)
2. Cost savings and efficiency gains can be made because internal recruits are typically able to take up new posts much more quickly than people from outside
3. Internal candidates as a rule are more knowledgeable then new starters
4. It is more familiar organization’s culture, rules, geography
5- Internal recruitment has the great advantage of providing existing employees with an incentive to work hard in the form of promotions
Disadvantages of Internal Recruitment
1. The main disadvantage of only advertising posts internally is that limited fields of candidates are considered.
2. Internal recruitment sits uneasily with a commitment to equal opportunities and to the creation of a diverse workforce.
3. Management of internal recruitment practices is difficult to carry out effectively
Methods of Recruitment:
When the managers has decided that external recruitment is necessary, a cost-effective and appropriate method of recruitment must be selected and use it under different circumstances.
As result most employers use a wide variety of different recruitment methods at different times (or using the combination of methods).
Specialist journal and trade press
specific for business
Employee referral scheme
ask employee who you know to fill the vacancies place
The Recruitment Methods Compared:
These methods of recruitment have benefits and drawbacks of choice of a method as it shown below:
1. Applicants can be selected from nationwide sources )
2. Socially responsible & secure
3. Can produce applicants quickly
4. Free service for employers
1. Registers are mainly for unemployed applicants rather employed seeking to change
2. People are not originally interested
1. Established as the normal method for filling certain vacancies.
2. Little administrative choice for employer
1. Can provide staff who only stay for short time
2. Widely distrusted by employers
3. Can be very expensive
3- Management selection Consultant
1. Opportunity to elicit applicants anonymously.
2. Opportunity to use expertise of consultant
1. Internal applicants may feel or be excluded
4- Executive ****** consultants
1. Known individuals can be approached directly
2. Useful for employer not have previous experience in specialist field
3. Recruiting from or for overseas location
2. Potential candidates are excluded from the network of executive
3. Recruits remain on the consultants list and should apply again
5- Visiting universities
1. Main source are new graduates
2. Evaluated by students as the most popular method
1. Need to differentiate presentations from those employers
2. Time taken to visit a number of universities
6- Schools and career service
1. Can produce a regular annual flow of interested questions
2. Very appropriate for the advisers of school leavers
1. Limited potential applicant group.
2. Applicants more interested in occupation not in organization
Employer branding devotes competing for staff by borrowing techniques long used in marketing goods and services to potential ******ers.
Many organizations have sought to position themselves as ‘employers of choice’ in their labor market with a view to attracting stronger application from potential employees. This is development over time of a positive “Brand image” as the organizations as an employer which it become high desirable from potential employee to work there.
It is build on any aspect of working experience that different from that offered by other organizations competing in the same broad applicant pool. It may be relatively high pay or generous benefits packages, more flexible working, friendly, informal atmosphere, strong career development potential or job security.
Employer branding exercises simply amount to a waste of time and money because, people are attracted to the organization.
التعديل الأخير تم بواسطة Noor Huda ; 14-06-2013 الساعة 10:39 PM
|15-06-2013, 12:34 AM||#4|
مراجعه ايش والفاينل خلص
جزاك الله خير..
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