Even personal decisions involve comparative costs
Article Abstract:
Personal decisions, such as whether to look for new employment, should be made using cost-benefit techniques familiar to accountants responsible for making investment decisions in a corporate environment. Investment analyses that assess risk, measure current success, and project potential success can be applicable in personal lives. Risk versus return theories are defined and applied to personal decision-making. Using these theories and assigning probability factors to decision outcomes, it is demonstrated that taking a job for higher pay may not always be the right decision, considering the likelihood of salary increases and promotions offered by a newer employer when compared to similar likelihoods at the current employer in which time has already been invested. As in all risk-return decisions, however, the higher the risk the greater the likelihood of large returns, which when fully considered could encourage individuals to leave employers for entrepreneurial endeavors. In personal decisions, the currency equivalent for risk quantification may be time investments or energy investments and the returns may be greater pleasure rather than improved financial status; however, if hierarchical needs are properly weighted, the discounted cash flow method of accounting may be used to make consistent personal decisions.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1986
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Try to understand the forces of motivation
Article Abstract:
The things that motivate companies, partnerships, and entrepreneurs can be compared to the factors that motivate individuals. Herbert Shepard and Warren Bennis described the major behaviour patterns as dependence - as in childhood when we depend on adults for everything, couterdependence - rebellion against parental values, and interdependence - the move towards cooperation. This relates to companies also. In the first (dependency) stage, group purpose is the most important factor, then members begin to establish their individual styles and finally interdependence is reached when in the best interests of the enterprise. Motivation of individual members of the organization should be considered - what roles are people playing? What kind of things motivate what kinds of people? Motivation research is discussed, including that of McGregor and Herzberg. This kind of analysis of the work environment and thee you work with act in a certain way will improve your company's chances of success.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1986
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Survival strategy: keeps business alive and well
Article Abstract:
Five causes of bankruptcy are discussed, as well as some secondary causes and actions that corporate planners and managers can take to avoid business failure. The causes identified are: (1) bank actions such as arbitrary reductions in overdraft amounts, (2) undercapitalization, (3) lack of company sales, (4) unforeseen occurrences, and(5) inaccurate accounts and records. The timing of product deliveries and developments in relation to business failure is also analyzed and forward planning techniques are examined. Among the corporate survival techniques explained are: forecasting sales pessimistically, emphasizing the reduction of corporate debt, overfunding (as opposed to underfunding), and borrowing on a long-term basis and investing in safe, short-term instruments.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1986
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