What is Inflation? Meaning Definition Features Terms

What is Inflation? Meaning
Inflation refers to a continuous rise in general price level which reduces the value of money or purchasing power over a period of time.Statistically speaking, inflation is measured in terms of a percentage rise in the price index (i.e. percentage rate per unit time) usually for an annum (a year) or for 30-31 days (a month).
Definition of Inflation
According to

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4 Phases of Business Cycle in Economics with Diagram

Four Phases of Business Cycle
Business Cycle (or Trade Cycle) is divided into the following four phases :-Prosperity Phase : Expansion or Boom or Upswing of economy.
Recession Phase : from prosperity to recession (upper turning point).
Depression Phase : Contraction or Downswing of economy.
Recovery Phase : from depression to prosperity (lower turning Point).

Diagram of Four Phases of Business

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What is Investment ? Meaning and Types of Investment

Meaning of Investment
In simple terms, Investment refers to purchase of financial assets. While Investment Goods are those goods, which are used for further production.Investment implies the production of new capital goods, plants and equipments. John Keynes refers investment as real investment and not financial investment.Investment is a conscious act of an individual or any entity that

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Limitations of Decision Making in Management - Shortcomings

Limitations of Decision Making
Shortcomings / limitations of a decision making process in management :-Image Credits © cole007.
1. Time Consuming
A lot of precious time is consumed for decision making. Individual decisions take a lot of time because the manager has to study the merits and demerits of all the alternatives. He also has to take advice from many people before making a decision. All

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Steps in the Decision Making Process of a Manager

Steps In Decision Making Process
Six steps in the decision making process with diagram are discussed below.
1. Defining and Analysing the real problem
The manager should first find out what is the real problem. The problem may be due to bad relations between management and employees, decrease in sales, increase in cost, etc. After finding out the true problem manager must analyse it carefully.

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Administrative Management Theory School - Henri Fayol

Fayol's Administrative Management Theory
According to the Administrative Management Theory / School, management is the process of getting things done through people. Here importance is given to groups and not to individuals.
The first expert of Administrative Management Theory was Henri Fayol (1841-1925). Fayol is called the "Father of Modern Management". Henri Fayol was a French industrialist

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Criticism of Taylor's Scientific Management - Limitations

Taylor's Scientific Management Theory has been criticised by the workers, trade unions and even employers.
Taylor's Scientific Management is criticised on the following main grounds :-
1. Exploitation of Workers
Taylor's Scientific Management put unnecessary pressures on the employees to perform the work faster. Importance was given to productivity and profitability. This resulted in

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Frederick Taylor's Principles of Scientific Management Theory

F. W. Taylor's Scientific Management Theory
Frederick Winslow Taylor (1856-1915) is the father of Scientific Management.Image Credits © Cristianmillos_0526.Scientific Management tries to increase productivity by increasing efficiency and wages of the workers. It finds out the best method for performing each job. It selects employees by using Scientific Selection Procedures. It provides

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Flat Organisation Structure - Advantages and Disadvantages

Flat Organisation Structure
If the span of control is wide, then there will be fewer levels of management. In other words, there will be fewer managers. This organisation structure is called Flat Organisation Structure.Diagram below gives a sample visual preview of how a flat organisation structure must look like. Click on the following image for an enlarged preview.Image Credits © Sameer

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Tall Organisation Structure - Meaning Diagram Advantages

Meaning of Tall Organisation
If the span of control is narrow, then there will be many management levels. That is, there will be many managers. This organisation structure is called "Tall Organisation Structure."
Diagram of Tall Organisation
Following diagram gives a sample visual preview of how a Tall Organisation Structure looks like. Click on following image for a zoomed or enlarged view.

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Difference Between Tall and Flat Organisation Structure

The Difference Between Tall (Narrow Span of Control) and Flat (Wide Span of Control) Organisation Structure is based on following twelve points :-
1. Meaning
If the span of control is narrow, then there will be many management levels. That is, there will be many managers. This organisation structure is called "Tall Organisation Structure".If the span of control is wide, then there will be fewer

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Gandhian Concept Principle of Trusteeship - Limitations

Gandhian Principle of Trusteeship
The Gandhian Principle of Trusteeship is closely related to the "Social Responsibility of Business".According to the Gandhian Concept of Trusteeship, "All business firms must work like a Trust."Image Credits © Mahatma Gandhi's photo by Seaskyclay.All assets of the firm must be held by a 'trust' and must be used for the welfare of the society. The firm must keep

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Is Management a High Class Profession or Not?

Management as a Profession
A Profession is an Occupation. It is performed by Professionals such as Doctors, Engineers, Lawyers, etc.Image Credits © Rose ZhangWe can find out whether Management is a profession or not by examining the following important points :-
1. Formal Education
A Professional must have a formal education from an accredited institution. For example, a Lawyer must have a

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Importance of Management - Significance of Management

Importance of Management
According to Peter Drucker,"Management is what the modern world is all about."This statement means that all the development that has taken place in the world is due to efficient management.The points below bring out the significance or importance of management.
1. Encourages Initiative
Management encourages initiative. Initiative means to do the right thing at the right

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Managerial Skills - Conceptual, Human Relations and Technical

Managerial Skills
Management is a challenging job. It requires certain skills to accomplish such a challenge. Thus, essential skills which every manager needs for doing a better management are called as Managerial Skills.According to Professor Daniel Katz, there are three managerial skills, viz.,Conceptual Skills,
Human Relations Skills, and
Technical Skills.According to Prof. Daniel Katz, all

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