MBO (Management by Objectives) is a process whereby a consensus between managers and employees on business objectives is brought about. The term Management by Objectives was first coined by management Guru Peter Drucker in his book The Practice of Management published in 1954. The core of the system is the belief that by making employees…
Category: Business
How can an organization achieve and maintain a pattern of ethical behavior?
One of the ways in which an organization can achieve and maintain a modicum of ethical behavior is by adopting a Code of Ethics. The Code of Ethics adopted by a business organization reflects its approach to business and also defines it’s values and standards. These sets of self-imposed rules originate from corporate social responsibility…
Frequently Asked Questions on Islamic Banking
1. THE HOLY QUR’ANHAS PROHIBITED RIBA. WHAT IS MEANT BY THIS TERM? The term Riba can be loosely translated into the financial concept of ‘interest’. As per Shariah law and Islamic scriptures, the practice of giving or taking interest upon principal is prohibited. In financial transactions a few types of Riba could arise, namely, riba…
Islamic Banking: Sukuk and Screening of Stocks
The article titled Sukuk and their Contemporary Applications by Muhammad Taqi Usmani is a report of issues in relation to the “compliance of Sukuk with the precepts of the Shariah.” Sukuk, which can loosely be translated as ‘financial certificates’ in common economic parlance, is a crucial instrument in Islamic banking procedures. The precepts of Shariah…
Guiding Principles on Governance for Islamic Collective Investment Schemes
As Islam established itself as an important religion with substantial following across the world, its religious leaders developed a financial system that is consistent with principles laid out in the Holy Koran and other sacred texts. The Islamic Financial Services Board (IFSB) is an important organization which is constantly refining and improving the guidelines for…
Do workers no longer need a trade union as management takes care of their needs and views?
Modern management theory and practice pay scant attention to the value or relevance of trade unions. It is believed by modern managers that the Human Resource Management department is sufficiently equipped to address employee concerns and grievances that no other form of representation is needed. But empirical evidence does not support this assertion. If anything,…
Business Leadership Study: Can Yang Jianguo make the transition from a regional star to a global leader?
Yang Jianguo’s promotion as the Senior Vice President of global product development is well deserved. Having headed the Chinese division of Deronde International with distinction, his appointment to this international role is promising as well as challenging. By the end of his first few weeks in the new role, he is already frustrated and confused…
The Role of the Professional Code of Ethics in addressing IT Security Threats
Late last century, we saw the rapid rise of Information Technology, replacing erstwhile manufacturing based industrial societies into knowledge based ones. With this transformation came attendant risks and threats to security of information. This aspect of the new digital age has invoked much debate and concern among stakeholders. Some IT companies have come up with…
Summary of chapters 3,4 & 5 of the book ‘The Economics of Women, Men, and Work’ by Blau, Ferber & Winkler
Chapter 3 of the book is titled The Family as an Economic Unit. Here the authors discuss the importance of the concept of family for the functioning of neoclassical economic models. In the United States and other Western capitalist democracies, the neoclassical economics is the dominant paradigm for analysis and policy. In this context, it…
Investment Through On-line Banking Services: Risks and Rewards
The growth of the Internet in the last twenty years has spurred the growth of on-line financial services as well. These days on-line banking and e-commerce have become ubiquitous, as financial transactions are carried out at users’ convenient place and time. An offshoot of this broader phenomenon is on-line investment services offered by various banks. …