HR as a "Strategic Business Partner"? 5 Concepts To Really Being A People Oriented Company

The Human Resources team being a "Strategic Business Partner" with the Operations team is not a new notion.

HR should not be considered a "partner" because HR is part of the organization making it whole not a separate organization with similar goals as term partnership implies. Maybe the view of being a "partner" contributes to ongoing battle that HR can be viewed quite often as a separate identity from other departments in the company.

Management Concept

I often hear things like "How do we get HR a seat at the table?" HR professional often view themselves as an individual entity from the other teams in the organization if they want to admit it or not. "What are WE (HR) going to do to get THEM (everyone else) to understand?"

Human Resources team is often viewed by people inside HR and out as "HR against everyone else." So for instance, if the strategy of the HR team is to "break down the walls between departments" How can this effectively occur when HR is viewed as an outsider? Trying to break the walls down before they are ready to can inadvertently create higher ones and can continue the cycle.

So what do WE (The organization as a WHOLE) do? There as so many concepts, theories, practices and models out there it can make your head spin. Which one is the best?

Almost anything I delve into has HR/Business concepts or elements that are in common. Most things that I personally agree with are integrated in one way or another with the next and it is not because I am being one sided in my research. It is because the books, articles, and website and blogs I research are by people that have proven success in HR and Business and are sharing their knowledge, successes and failures.

So what do WE (The organization as a WHOLE) do join all forces inside the company?

REALLY be people oriented.

1-Listen to your people.

Many companies like the idea of saying they have an open door to all employee's ideas. BUT do they really? Many companies like to say they are "focused on the people" and I am sure they would really like to be. If you dissect the actual facts, they are not. If you look at the "Best Places to Work" in the USA they have one thing in common, no matter what the product, it is people focused first.

It is amazing what you can learn about your organization when people are truly encouraged to speak up.

2- Foster a work environment that truly embraces a "Bias for Action" atmosphere at all levels. In many organizations if you just act in the best interest of your customer, client, subordinates and then ask for permission, you get in trouble.

More often I see organizations that are inconsistent with this philosophy. In reality it is more of a "some people can be take action, and others can take action sometimes but only if those actions are nominal."

Other companies will claim to encourage employees to be to take action but in reality they are really "if you are part of upper management or in HR you can bias for action but if you are lower on the totem pole, there will be career consequences for your actions."

Pretending to take action is not taking action.

3- Challenge The Same Old to Change the Status Quo

How can an organization move forward if no one scrutinizes what they are doing today to make it better?

Staying the same doesn't grow an organization. Not ever being complacent with status quo does. The biggest hero's in the business world are never referred to as the man/women that just showed up each day and did the same thing over and over day in and day out. Personally, I would be uncomfortable to be known as someone who is just consistent. I prefer to be known as someone who is consistent, BUT consistently passionate about growing the business, taking action and inspiring others to do the same!

You have heard the saying- "If you do what you always do, you will get what you have always got" It doesn't even fit anymore. It should now be "The companies that do what they always do, get a bankruptcy attorney."

4- Discover underutilized and underdeveloped talent in your organization. To put it plainly and simply "Use um' or Lose um'!" To quote Marcus Buckingham author of First Break all the Rules and Go put your Strengths to Work, "People are not an organizations best asset, peoples strengths are." This is actually one of my all time favorite quotes.

How many times have you heard variations of "It is too bad he left us for them, he has so much potential." Potential!? Potential!? The definition of potential is the capable of being or becoming possible. Is it possible? DEVELOP HIM! Don't lose HIM!

I speak to hundreds of talented candidates in a year. Of course I often ask the obvious question. "Why do you want to leave your present position? All to often I hear "I am looking for a better opportunity" This can mean so many things but can it be I am just speaking with someone that is under developed or underutilized? Am I speaking to a person that may work for you?

Often employers are under utilizing talent. I am not saying everyone can be promoted to CEO I am saying if you have people that unmistakably stand above the rest as consistent, high performers and/or leaders, you better pay attention, these are the companies future. Many companies like to refer to these people as "High Potential." If you know they stand out, often they know they do as well and are in waiting for you to notice. NOTICE! If you aren't in a position to promote this person, or if that is not an option in your company, show appreciation, provide them with ability to lead, develop others and themselves. Do something! Make sure they do know that you notice! Because if you don't, I promise you, other companies will.

Strategic Business? How about aligning the talent you have. Now that's a Strategy! Move your company forward by utilizing current talent, these people already work for the organization, and they are invested in to the future of the organization that is why they are there. Stop over analyzing the past, learn from it, and use this talent to move forward, discover future goals and future threats.

5- Continued Training and Development in all areas.

Never, never stop training and developing talent.

All too often programs come and go with no real impact on the organization. What a waste of time and money. Often promising programs are developed and implemented. They come out of the gate full force, EVERYONE is trained and energized! Then, that it. No continued support or development of the program and the developers want to know where they went wrong. Often they didn't do anything wrong, they did exactly what they were to do but take the blame when it fails. It was a failure after the initial implementation when it was out of the hands of the developers and trainers. The program gets passed over to the people it was designed to benefit and they are trained and then sent out to put it into practice and they don't.

Why? Did the program stink? Probably not. How about this for a concept; Are the people that should be executing the plan, actually trained on executing the plan or was the "training" just understanding what the plan is designed to do?

HR is part of the organization making it whole. As a HR professional stop trying to get a seat at the table in which you sit. Just be a rational, influential, motivating part of the business strategic plans moving forward. Acknowledge past good and bad patterns make informed suggestions and decisions to move the organization forward.

Human Resources professionals tend to be the first to embrace change. This is your opportunity to be influential and inspiring to those reluctant to embrace the strategic change.

If you view yourself as an individual entity apart from the other teams in the organization you will be an individual identity. This practice will not be effective when bringing your expertise forward when Human Resources changes are necessary. Be part of the organizations solutions, not part of the barriers.

If companies do not grow and change they do not move forward. In reality change is much less threatening then having to look for a job when your company becomes extinct because it didn't keep up. So if that is the case how come often when we see a "major" change to processes you see a negative vibe to follow? To me, it is clear. Too much all at once, it is reactive to the company's lack of continued ongoing incremental growth changes.

Personally, I not only embrace any change in my organization, I actually thrive on it! It invigorates me even it if can threaten my very existence in the organization. I have heard comments like "If you don't like this plan, process, policy, don't worry, just hold on, it will change. All I can say is, "I hope so."

HR as a "Strategic Business Partner"? 5 Concepts To Really Being A People Oriented Company

http://recruitnik.net

Visit : How to time management Advertising Techniques

A Unique Time Management Concept

It is those who concentrate on but one thing at a time who advance in this world. The great man or woman is the one who never steps outside his or her specialty or foolishly dissipates his or her individuality. Anonymous

Lost time is never found again. Benjamin Franklin

Management Concept

The future is something which everyone reaches at the rate of 60 minutes an hour, whatever he does, whoever he is. C. S. Lewis

Ask any "successful" person and they'll confirm this one thing about their success. Read the works of well-known and respected business gurus and you'll learn the same principle. A focus on one task at a time and with a commitment to complete it and complete it well is the key to success in business and personal achievements.

You must have a plan to help you achieve the successes in your business life that you want while still leaving time to also live your personal life to the fullest. Many of the personal aspects of your life are time sensitive and if you let them pass by without enjoying them, it's very possible you'll come to a point in your life where you'll look back and regret that you didn't take time to enjoy them.

Learning to complete whatever task you face - well and efficiently - is the key to success in your business and personal life. Success creates financial rewards which can be enjoyed only if the successful person has the time to enjoy them. Sales people are paid to make sales. Production people are paid to produce. Managers are paid to manage. Unproductive time spent socializing or doing "busy work" that is not productive activity takes away time that could be spent with family and friends doing things that your financial success allows you to do.

You must build a philosophy of time management that may be very different than most of the strategies of managing time that you have heard or read about. The key is to introduce yourself to some thoughts and strategies that can cause a very dramatic and positive change in the quality of your life and in the level of achievement and satisfaction you derive from it and your work. The key to being successful with these principles is an open mind. Behavioral scientists tell us that the average person uses somewhere between 3% and 25% of their potential resources - their abilities and talents. The limitation is created by closed minds and preconceived ideas. As you research, open your eyes and your mind. Look for reasons and ways to make things work. Go beyond the obvious. Expand your horizons.

The key to successful time management is obviously you. Calendars and planners and charts alone will not keep you organized. Strategies and techniques are not magical. A successful strategy requires engagement with you.

The steps to the success of this strategy, the techniques and ideas, will be listed in multiple locations such as our website and books. Unless though you internalize them and apply them, they will continue to be strategies. To get the full benefit of your research, you should read the principles several times. Repetition is a powerful learning tool that can help you take the strategies and integrate them into your everyday life.

We are told that if you are exposed to the same idea six times over the course of six days, you will retain up to 62% of it for anywhere from 15 years to life. Repetition is a component of long term development and not just short term training. Two good examples of the power of repetition are the multiplication tables and many of the jingles that we remember from when we were growing up.

As we take a look at the principles of time management, we quickly come to understand that time cannot be managed. You and I both have only 24 hours a day. No matter what we do we cannot make more time. We can only manage ourselves and how we choose to spend our time. You gain control of your time and therefore your life by changing the way you think, work and deal with the multitude of responsibilities that we all have. You get control of your life only by not doing some activities that are less or even not productive and focusing your efforts on the activities that can have a real impact on your life.

The key is to create balance in both your personal and business life areas. To create balance you need to know what is important in each of these areas and what you want to achieve in those areas of your life. In other words what are your goals. Whether you know it or not you already set goals in your life - sometimes. Most people are very careful to plan out their vacation in order to maximize their limited time off. Unfortunately, many of us spend more time planning a two week vacation than we do the other 50 weeks of our year.

A successful life doesn't just happen. It happens because you plan and make it happen. A successful life involves all of your life areas. It means living a life filled with achievement and balance. Goal setting helps you to identify what is important to you. Once you have determined that, deciding how to use your time becomes more clear.

One of the most important discoveries of this century is the discovery that man can change his circumstances by changing his attitude.

William James

One additional area that you must explore is the impact that your attitudes have on everything you do and achieve. An attitude is the way we think about something, our perception, in fact, our attitudes are habits of thought. We respond to many of life's situations and challenges based upon our attitudes or habits of thought. It's almost a reflex. Our attitudes are almost like little voices inside our heads that tell us what we should do in a given situation. That little voice can either be your best friend or your worst enemy. The dilemma for many in life is knowing how to develop it to be more supportive.

Maximizing the use of your time is affected by your attitudes about your time. A successful time management strategy should help you balance your time use with your life plans and with your personal and professional priorities. To be successful in your planning you should....

• Develop some new time-conscious attitudes
• Clarify your goals
• Learn and implement techniques that will give you more control of your time and your life

A Unique Time Management Concept

I had reached a point in my life where my daily schedule had overwhelmed my life. As a business owner of two businesses, an active member of my local business and social community, the director of an annual state-wide All Star event, and a father of an active family, I found that I was working more and more hours to accomplish the work that needed to be completed. As my resentment increased, I found that I was less and less productive doing the things that I truly enjoyed doing. I finally decided that something had to change.

When I first discovered "How to Live on 24 Hours a Day" I almost decided not to spend the time reading it. It was an "old" book written many years ago and what insight would it offer in today's world. It didn't have any sample charts or forms that I could use to become more effective. Fortunately I decided to take the time to read it and I haven't been the same since. I learned how to use my time more efficiently so that I have more time to "enjoy" my family and activities that I have always wanted to do but didn't have the time. I still re-read "How to Live" on a regular basis so that I keep my focus on what's really important in my life.

Our website, http://howtoliveon24hoursaday.com offers a FREE download of this eBook and other ideas on how to make your life more productive and enjoyable. I hope that How to Live on 24 Hours will have an influence on your life and we invite you to return to our website on a regular basis.

Related : How to time management The Global Marketing

Management Theory - A Brief History

The work of management theorists over the last hundred and fifty years can be used to argue the case for an in depth theoretical, as well as practical knowledge of many management styles, including the positive and negative attributes of each. It is also important to examine the 'structure' of different organisations to consider how it affects, and is affected by the management style of that organisation. Organisational Structure is essentially concerned with the allocation of authority and power. Managers need to make decisions and need to have the authority to do so. A 'hierarchical organisation' will have the greatest power at the top of the organisation, and the command structure will be in a downward direction. In a 'flat organisation' power is distributed more evenly, but there will still be major differences in the level of power and authority between different members of the company. Some organisations such as the armed forces or police have many tiers (or levels) and are tall in their hierarchy. Universities, however would have few levels between those at the bottom and those at the top and would be considered a 'flat hierarchy.' The 'span of control' (number of people an individual manages or supervises directly) is closely linked to the type of organisational hierarchy that exists. Many of the new 'buzzwords' and 'flavour of the month theories' that Mr. Whitehead mentions are no more than a current evaluation of the theories of yesteryear. The re-visiting of these theories will provide conclusive evidence that management theory is central to the modern manager's education.

The Work of Frederick Winslow Taylor (1856-1915)

Management Concept

Frederick Taylor, whilst working as a gang boss in a lathe department in Midvale, USA became determined to eradicate 'systematic soldiering'; an attempt by workers to do no more than was necessary. Taylor developed a strategy where particular jobs were studied, then broken down into individual tasks, which had to be completed exactly as stated. Each task was allocated a time, based on the timed work of the quickest worker. Workers were then allocated specific tasks, and were not allowed to deviate from that task at all. As Taylor believed that money was the main motivator, a payment was made for each completed unit of output (piece rate)

Many organisations and work methods are still influenced by Taylor's concept of 'Scientific Management Methods' This can be seen on factory assembly lines, and even in the commercial kitchen, where each member of staff is allocated a small but specific task in making up a completed gourmet meal. Piece rates may not be prevalent, but the allocation of boring, repetitive tasks is common. An article in The Sunday Times, 3rd April 1983 tells of one worker's plight, assembling the Maestro car at the Cowley Plant. He had just one hundred seconds to screw on two rubber buffers and fit three small plates to the rear wheel arch. He had been given one night's training, completed his task on exactly 246 vehicles per day, and had 46 minutes per shift of 'relaxation time'.

Some of Taylor's early followers achieved spectacular results in increasing output. However, the stringent and oppressive tactics that were employed often led to industrial unrest. After 'Scientific Management Methods' were employed at the Watertown Arsenal, immediate strikes ensued. The American Congress eventually banned Taylor's time and motion studies in its defense industry.

The use of such methods in the modern workplace can produce useful results in the short term, but for longer-term rewards they must be balanced against the effects on workforce morale. To assume that everybody can work at the same rate as the fastest worker, and that money is the only real motivator may not be borne out. Today's workers want to be empowered, and to take an active role in their organisations, not be treated like machines where only the end product is important.

Henry Laurence Gantt

Henry Gantt worked for Taylor at the Bethlehem Steel Works. His ideas were broadly supportive of Taylor's ideas, but he added a more humanizing approach. He believed that scientific management was used in an oppressive way by the unscrupulous. Gantt moved away from the strict piece rate system of pay, instead offering a set wage plus 20% - 50% bonuses. If workers achieved the set objectives within the day a bonus would be paid. Supervisors were introduced who also received bonuses if targets were met by his team.

Gantt's less oppressive regime can be seen today in many organisations. In factories around the globe workers receive bonuses for achieving daily, weekly or monthly targets.

The Work of Henri Fayol (1841-1925)

Henri Fayol, the 'Father of Modern Management Theory' was interested in how management worked, and could be applied on a universal basis. His theories focused on Rules, Roles and Procedures.

Fayol's 'Five Elements of Management' are:

* Planning Setting objectives, and strategies, policies and procedures to achieve them.

* Organising Setting tasks to achieve the objectives. Allocating the tasks to groups or individuals, and empowering those responsible for that task.

* Commanding Instructing those carrying out the given task.

* Coordinating Ensuring a common approach by groups to meet the objectives of the organisation.

* Controlling Ensuring the performance of individuals and groups fits with the plans, and correcting as necessary.

Fayol's theories are as relevant today as they ever were, and most, if not all managers use his 'elements of management'.

The Work of Peter Drucker

Drucker's work in the 1950's followed on from that of Fayol. He had five categories of 'Management Operations'

* Setting Objectives Senior Managers organise objectives into targets. This is cascaded down to more Junior Managers.

* Organising The workload is divided into manageable activities and jobs.

* Motivating This involves communicating and creating the right conditions for targets to be achieved.

* Measurement Comparing performance against targets.

* Development Enabling people to use their talents.

Fayol and Drucker had very different views on the role of workers within their theories. Fayol's work has a distinct leaning towards worker's having to be told what to do, their work checked and corrected, with managers delegating tasks and overseeing from a high level (a Tall Hierarchy?). Conversely, Drucker's ethos is about the empowerment of workers, giving them the opportunity to utilise their talents, with managers occupying a role that is more about assisting and coaching workers.

Fayol's ideas fail to take into account the people within the workplace, whereas Drucker takes a somewhat more humanist approach.

Elton Mayo - The Human Relations Approach

By the 1930's there was evidence emerging that production could be raised by applying motivational methods within a workforce. These ideas were very different to the techniques of F.W Taylor and, although concerned with profit, the 'human relations approach' to management was also concerned with social relations in the organisation. The approach assumed that workers were genuinely committed to their companies and that they had a desire to work towards achieving its goals.

Elton Mayo had carried out experiments at the Hawthorne Plant, and these sought to find ways to improve production by changing workers conditions and pay structures. Mayo worsened conditions for workers, then returning them to how they were. The rise in output was due to workers communicating more and working as a tighter team unit. It was also found that the effect of taking an interest in workers made them feel important and that their opinions were valued.

Volvo and Honda have seen the development of work team in recent years, with the differences between workers and managers being far from obvious. People wear the same uniforms, and the emphasis on communication is high. Developing cohesive teams who work well together and share the same goals ensures a high level of motivation for the tasks required. The structure of this type of organisation could be considered a 'flat hierarchy' with a wide span of control for managers working over a skilled and competent workforce. Subordinates are well trained and a good level of trust between managers and workers exists.

The 'Human Relations Approach' is definitely a positive way of management for the 21st Century, where personal empowerment and self-esteem should not be in question.

Mr Whitehead's view that "Haven't generations of managers done perfectly well by learning on the job and applying a bit of common sense" cannot accurately be quantified. Within the Fire Service, promotion to managerial roles is based on internal qualifications and interview alone. Virtually all managers have based their management style on exactly what Mr. Whitehead advises in his letter. Some are very good and are respected as such; however there are a large number who cannot manage people or their responsibilities within the organisation. Respect for leadership within the fire service is essential, but often rare in modern times. Managers who had an in depth knowledge of management strategy may well motivate the workforce to new heights. This type of 'tall hierarchical' organisation has many tiers of command with spans of control for senior managers being relatively small, with the widest spans of control being at junior management level.

"An endless supply of new gurus spin off new batches of buzzwords which help successive generations of whiz kids to get promoted on the basis of slogans" is not an accurate depiction of the modern manager. It's certainly true that there are managers who, even with the background of a management related education are ineffectual in their roles. This is not a reflection on management theory. Studies of management styles allow one to make informed decisions, and to have an array of options at your disposal, and to adapt to the ever-changing pressures on the organisation, both internal and external.

"Meanwhile real managers just do what they have always done, maintaining discipline and telling people what to do" The idea of a 'one style fits all' manager is unrealistic, and one that has a proven track record of leading to unrest. Even within one organisation the manager or managers need to be flexible within their roles. Leadership is vital, but a leader who is flexible, approachable, and has the interest and aspirations of both workers and organisation at the forefront of their strategy will flourish. Conversely, the manager who's only interest is the level of output and profit will not be supported by those producing that output. Respect is most certainly a two-way avenue.

My review of the theories of 'management gurus' of the past is designed to show that these ideas are not new. One can look at any organisation and see many of these ideas working in parallel. As far as organisational structure is concerned, one cannot make stereotypical assumptions based purely on the size of the organisation or the number of employees. The style of management and the systems of work employed all help to define the structure. Most organisations employ many of the characteristics discussed above, in different ways, and at different times dependent on the dynamics of the situation. Most businesses are constantly evolving and redefining themselves to meet the requirements of the modern marketplace. There is no correct answer, or one style which is superior to others. Each has its positive and negative points, but without fundamental knowledge of them all, how can one possibly manage effectively?

Management Theory - A Brief History

As a long time reviewer of home renovation products, I have recently reviewed a number of bathroom essentials. Read my reviews of a range of toilets, including the toilet bidet combination, a great product for personal hygiene and luxury.

See Also : The Global Marketing Motivational Techniques

Some Functional Concepts Of Modern Management System

There is no denying the fact that the functionalist knows that nation-state system is changeable and is the cause of aggression, separation which undermines the real needs and interests of human race. They tried to give importance on specific tasks of economic and welfare co-operation. This would avoid divisive political debate, but at the same time create a community of interest which would ultimately render national frontiers meaningless. According to the functionalist view technical collaboration in one sector generates a felt need for functional collaboration in other sectors. The neo-functionalists consider integration as both a process and an outcome, but they prefer to emphasise on co-operative decision-making processes and elite attitudes in order to assess the progress towards integration. They have focused primarily on formal institutions in an attempt to determine the extent to which important functions are carried out by national as opposed to international agencies.

The transaction based approach seeks to measure the process of integration by watching the flow of international transactions, such as trade, tourists, letters, and immigrants. Karl W. Deutsch and some other writers have termed this perspective the communications approach. Deutsch hypothesised that, the more one nation-state interacts with another, the more relevant they become to each other; however, such an increase in mutual relevance may not lead to integration unless it is accompanied by mutual responsiveness, which was defined as the ability to respond satisfactorily to the demands contained in the transactions between the actors involved. In the view of all Management cooperation, a community cannot exists unless its members are co-dependent, and such interdependence can only be established by a network of mutual transactions. Although it seems that the South Asian states wanted to emphasis on functionalist and Tran sectionalist approach in their regional integration, but they did not transfer their core issues to their regional body. Even communication among states did not increase considerably. Mutual response is also very low in the area. For heterogeneity in various fields among the South Asian states mutual transaction has not developed. Analysis of the heterogeneity among the South Asian states is the main issue of the present paper.

Management Concept

The most common route to regional integration is through progressive liberalisation of trade relations between members of a regional community, which could progress through various stages: First a Preferential Trade Area (PTA) with lower tariffs; then a Free Trade Area with no tariffs; next a Custom Union with common external tariff applied to external trade; a Common Market with free movement of all factors of production and stability in internal exchange rate with full convertibility; an Economic Union with common currency and a unified monetary policy and a Political Union with unified judicial and legislative process of members states. By following above mentioned process of regional integration we can evaluate the position of a regional integration initiative. On the other hand, the term regional co-operation is a loose construction of integration. It denotes a willingness on the part of countries to work together in achieving regional economic interests on the assumption that, in the long run, this will result in enhancing national economic interests and welfare even if national interests might need to be subordinated in the short run.

In view of the above, it is evident that the concepts which are virtually important to establish economic relationship needs to be promulgated for the sake of the nations undoubtedly. The cooperation criteria envisage the capacity building aspects among nation for which divisions, differentiation in opinions, misrepresentation and financial stringency amalgamation need to be sorted out for finding a solution to live with peace, prosperity and realism of life.

Some Functional Concepts Of Modern Management System

Kh. Atiar Rahman is a distinguished author and a poet. He has many publication in national and international media

Related : Motivational Techniques

Introduction to Property Management

If you own any sort of property, be it residential or business related, you will need someone to manage it. The question you are probably asking is how professional management can help you?

So, what is property management? It's the managing, or handling, of real estate property by someone other than the owner. Most often, it is handled by a management firm, that might handle more than one client's real estate properties. Other styles include hiring someone to live on site and take care of tenants' requests, as a building superintendent or other building manager - but this style of management has fallen out of favor in recent years.

Management Concept

It goes without saying that quality is a big issue with this service. A good management firm will act as a go-between for the real estate owner and the tenants, handling any questions and complaints that the tenants might have so that the owner is not forced to deal directly with them. This kind of service can include doing many different things, from collecting rent to hiring groundskeepers and repair people. They can keep an eye on repairs that need to be done, and suggest improvements on the property to the real estate owner.

In most states, those offering this service must be certified and licensed, most commonly as real estate brokers. This is especially true if the property managers (or someone in the the management team) is helping to negotiate leases, or collect rent on behalf of the property's owner. In other states (such as Connecticut), there may be no licenses required for these tasks. Most property managers are still required to register with the state they work in.

Property managers can also be essential in keeping an eye on your property - making sure that no one is vandalizing your real estate, and taking care of problem tenants as well. The actions that manger may have to take can include eviction, as well as involving the authorities, tasks that a real estate investor may not want to have to do. They can also be used as arbitrators between tenants, when disputes arise that are not severe enough to involve the police or other authorities.

When done well, property management is the answer to a lot of issues that real estate investors might face. The management team can do the hands on work while the investors reap the profits.

Introduction to Property Management

Aazdak Alisimo writes about property management companies for PropertyManagementServiceCompanies.com.

Related : Motivational Techniques How to time management The Global Marketing

The Accruals Concept Or Matching Concept

The accruals concept states that revenue and costs must be recognized as they are earned or incurred, not as money is received or paid. They must be matched with one another so far as their relationship can be established or justifiably assumed, and debit with in the profit and loss account of the period to which they relate.

Financial Reporting Standards also stipulates that financial statements must be prepared under the accruals concept. This concept is a cornerstone of present day financial statements. Essentially, the accruals concept states that, in computing profit, revenue earned must be matched against the expenditure incurred in earned it.

Management Concept

The company's act gives legal recognition to the accruals concept, stating that, all income and charges relating to the financial year to which the accounts relate shall be taken into account, without regard to the date of receipt or payment. This has the effect, as we have seen, of requiring business to take credit for sales and purchases when made, rather than when paid for, and also carry unsold stock forward in the balance sheet rather than to deduct its cost from profit for the period.

Example, If company Y makes 20 shirts at a cost of 0 and sells them for 0, she makes a profit of 0. However, if company Y had only sold 18 shirts, it would have been incorrect to charge its profit and loss account with the cost of twenty shirts, as it still has 2 shirts in stock. If it intends to sell them in June it is likely to make a profit on the sale. Therefore, only the purchase cost of 18 shirts should be matched with its sales revenue, leaving it with a profit of .

The Accruals Concept Or Matching Concept

http://accounting-support.blogspot.com/2009/12/62-accruals-concept-or-matching-concept.html

See Also : Motivational Techniques The Global Marketing Management Concept Style

Accounting Theory - Basic Accounting Concepts

There are four basic accounting concepts. The concepts specify and explain the guidelines that should be followed when managing the accounting of a business. Below there is a list of the these four basic accounting concepts and a brief summary of each concept.

1. Accruals Concept

Management Concept

The accruals concept states that revenue from transactions and transactions which cause liabilities are accounted for when they occur, even if cash or property has not actually been exchanged between the entities involved in the transaction. For example, a dentist, Dr. Payne orders and receives 6 months worth of toothpaste for 0 in January. Even if he does not pay for the toothpaste until February, Dr. Payne should still record the 0 liability in January and not wait until February, since he owns the goods and is liable to pay for them to the supplier. On its turn the supplier will be accounting for the sale of toothpaste to Dr. Payne.

2. Consistency Concept

Once certain accounting method has been applied by the accountant, this methods must be applied throug all the further periods for the accounting purposes. The accounting method should only be changed if there is a valid reason that requires the change. For example, if the accountant starts recording transactions using the double-entry accounting method in January, he or she should continue applying the double-entry method for the remainder of the accounting period. He or she should not begin applying the double-entry method and suddenly switch to the single-entry accounting method mid-accounting cycle for no identifiable, valid reason. This means that all the accounting methods and procedures must be applied consistently to ensure comparability of information among periods.

3. Going Concern Concept

When the accounting of a business is being managed, it should be assumed by the accountant that the business is viable and will still operational in the foreseeable future. If the accountant has any reason to believe that the business will not remain viable in the foreseeable future, he or she must state the reasons for coming to that conclusion in the financial reports of the business. If the accountant has an opinion that the company will not remain in business and there are no sufficient evidence to proof the opposite, the accountant may simply include a disclaimer in the financial reports stating that he or she believes, but cannot show evidence to prove that the business will not remain viable.

4. Prudency Concept

Liabilities are accounted for in the balance sheet even if they is only a possibility for such liabilities to occur, despite they are potential. However, revenues are accounted for in the financial statements only if the business has title for such revenue and has already collected or will collect cash or other assets in the future. If there is a doubt about this or there is no strong legal basis to recognize revenue, it is not accounted for in the accounting books. This concept helps to ensure that businesses make provisions for potential losses, not just realized losses, and do not erroneously include revenues that are simply anticipated, but not yet earned.

Accounting Theory - Basic Accounting Concepts

You can easily and comfortably learn accounting basics at home using home learning accounting courses. Why wait? Start learning accounting basics now.

Recommend : The Global Marketing

What is Strategic Financial Management?

Strategic financial management is basically about the identification of the possible strategies capable of maximizing an organization's market value. It involves the allocation of scarce capital resources among competing opportunities. It also encompasses the implementation and monitoring of the chosen strategy so as to achieve agreed objectives.

The key decisions falling within the scope of financial strategy include the following:

Management Concept

1. Financial decisions - this deals with the mode of financing or mix of equity capital and debt capital. If it is possible to alter the total value of the company by alteration in the capital structure of the company, then an optimal financial mix would exist - where the market value of the company is maximized.

2. Investment decision - this involves the profitable utilization of firm's funds especially in long-term projects (capital projects). Because the future benefits associated with such projects are not known with certainty, investment decisions necessarily involve risk. The projects are therefore evaluated in relation to their expected return and risk. For these are the factors that ultimately determine the market value of the company. To maximize the market value of the company, the financial manager will be interested in those projects with maximum returns and minimum risk. An understanding of cost of capital, capital structure and portfolio theory is a prerequisite here.

3. Dividend decision - dividend decision determines the division of earnings between payments to shareholders and reinvestment in the company. Retained earnings are one of the most significant sources of funds for financing corporate growth, dividends constitute the cash flows that accrue to shareholders. Although both growth and dividends are desirable, these goals are in conflict with each other. A higher dividend rate means rate means less retained earnings and consequently slower rate of growth in future earnings and share prices. The finance manager must provide reasonable answer to this conflict.

It should be noted that the theory of corporate finance is based on the assumption that the objective of management is to maximize the market value of the company. More specifically, it is settled in finance that the main objective of a company should be to maximize wealth of its ordinary shareholders.

What is Strategic Financial Management?

Do you need free autoblogs for making money online? Visit http://www.freeautoblogs.com to get yours today.

Tags : Advertising Techniques