Ob is an applied behavioral science that is built on contribution from a number of behavioral disciplines. The predominant areas are:-
a) Psychology:- The science that sets to explain and sometimes change the behavior of human being. The contribution includes study of topics like Motivation, personality, Emotions, Job Satisfaction etc.
b) Sociology:- The study people in relation to them human beings. The contribution includes study of topics like Group dynamics, work team, communication, power etc.
c) Anthropology:- The study of societies to learn about human being and their activities. The contribution includes study of topics like organizational culture, organizational environment, cross-cultural analysis etc.
d) Political science:- The study of individual and groups within a political environment. The contribution includes the study of topics like conflict, Intra-organizational politics, power etc.

One of the most important and broad based challenges currently facing organizations is adapting to people who are different. The term to describe this challenge is work force diversity. While globalization focuses on differences between people from different countries work force diversity addresses differences among people within given countries.

Work force means that organizations are becoming more heterogeneous in terms of gender, which varies from the so-called norm. It includes women, south Indians, Bengalines, Punjabis, physically disabled, elderly etc.

Work forces diversity has important implications for management practice. Managers have to shift their philosophy from treating everyone alike to recognizing differences and responding to those differences in ways that ensure employee retention and greater productivity while at the sometimes, not (page no 7) discriminating. This shift includes, for instead, providing diversity training and revamping benefits programs to accommodate the different employees. Work force diversity if positively managed, can increase creativity and innovation in organizations as well as improve decision making by providing different perspectives on problems. When work diversity is not managed properly, there is potential for higher turnover, more difficult communication and more interpersonal conflicts.

a) Form:- Many product can be differentiated from the size, shape of physical structure of a product.
b) Features:- Most products can be offered with varying features that supplement the product’s basic functions. Being the first to introduce valued new features is one of the most effective ways to compete.
c) Performance Quality: Most products are established one of four performance levels: low, average, high or superior. Performance Quality is the level at which the products primary characteristics operate.
d) Conformance Quality: Buyers expect products to have a high conformance quality, which is the degree to which all produced units are identical and meet the promised specifications.
e) Durability: Durability, a measure of the products expected operating life under natural stressful conditions, is a valued attribute for certain products.
f) Reliability: Reliability is a measure of the probability that a product will not malfunction or fail within specified time period.
g) Repairability : Repairability is a measure of the ease of repairing a product when it malfunctions or fails.
h) Style: style describes the product’s look and feel to the buyer. Style has the advantage of creating distinctiveness that is difficult to copy.
i) Design: As competition intensifies, design offers a potent way to differentiate and position a company’s products and services. Design is the totality of features that effect how a product looks and functions in terms of customer requirements.
Service Differentiation : When the physical product can not easily be differentiated, the key to competitive success may lie in adding valued service and improving their quality. The main service differentiators are ordering ease, delivery installation, customer training, customer consulting and maintenance and repair.
a) Ordering Ease: Ordering ease refers to how easy it is for the customer to place an order with the company.
b) Delivery: Delivery refers to how well the product or service is delivered to the customer. It includes speed, accuracy and care attending the delivery process.
c) Installation: Installation refers to the work done to make a product operational in its planned location. Buyers of heavy equipment expect good installation service. Differentiation at this point in the consumption chain is particularly important for companies with complex products.
d) Customer Training: Customer training refers to training the customer’s employers to use the vender’s equipment properly and efficiently.
e) Customer Consulting: Customer consulting refers to data, information systems and advice services that the seller offers to buyers
f) Maintenance and Repair: Maintenance and repair describes the service programme for helping customers keep purchased products in good working order.
Personal Differentiation: Companies can gain strongly through having better- trained people. Better trained personnel exhibit six characteristics:-
i) Competence: They posses the required skill and knowledge.
ii) Courtesy: They are friendly, respectful and considerate.
iii) Credibility: They are trustworthy.
iv) Reliability: They perform the service consistently and accurately.
v) Responsiveness: They respond quickly to customer’s requests and problems.
vi) Communication: They make an effort to understand the customer and communicate clearly.
Channel Differentiation: Companies can achieve competitive advantage through the way they design their distribution channel’s coverage expertise and performance.
Image Differentiation: Buyers respond differently to company and brand image. Image is the way the public perceives the company or its product.

A consumer’s buying behaviour is influenced by cultural, social, personal and psychological factors.

I. Culture, sub-cultures and social class are particularly important in buying behaviour. Culture is a fundamental determinant of a person’s wants and behaviour. The growing child acquires a set of values, perceptions, preferences and behaviours through his or her family and other key institutions.

Each culture consists of smaller subcultures that provides more specific identification and socialization for their members. Subcultures include nationalities, religions, social groups and geographic regions. Enough companies often design specialized marketing programs to serve them. Such are known as “diversity marketing”

Virtually all human societies exhibit social satisfaction, stratification sometimes takes the form of caste system where the members of different castes are reared for certain roles and cannot change their caste membership. More frequently, it takes the form of ‘Social Classes’ relatively homogeneous and enduring divisions in a society, which are hierarchically ordered and whose members share similar values, interests and behaviour. Social classes show distinct product and brand preferences in many areas, including clothing, home furnishings, leisure activities and automobiles. Social classes differ in media, magazines & books and lower class consumers preferring television. Even within a media category such as TV, upper-class consumers prefer news and drama, and lower-class consumers prefer soaps operas and sports programmes

II. Social Factors – In addition to cultural factors, a consumer’s behaviour is influenced by such social factors as reference groups, family and social roles and statuses.

A person’s reference group consists of all the groups that have a direct (face to face) or indirect influence on the person’s attitudes or behaviour. Groups having direct influence on a person called “ membership groups”. Some members groups are primary groups, such as family, friends, neighbours and co-workers with whom the person interacts fairly continuously and informally. People also belong to secondary groups, such as religious, professional and trade-union groups, which tend to be more formal and require less continuous interaction.
People are significantly influenced by their reference groups in at least three ways. Reference group expose an individual to new behaviours and lifestyles and influence attitudes and self-concept; they create pressure for conformity that may effect actual product and brand choices.
Family is the most important consumer buying organization in society, and family members constitute the most influential primary reference group. The family orientation consists of parents and siblings. From parents a person acquires an orientation towards religion, politics and economics and a sense of personal achievement, self-worth and love. Even if the buyer no longer interacts very much with is parents, their influence on the buyer’s behaviour can be significant.

Definition of Working Capital

There are two concepts of working capital:

1. Gross Working Capital Concept
2. Net Working Capital Concept

Gross Working Capital Concept

According to this concept, working capital means gross working capital which is the total of all the current assets of a business.

Gross Working Capital= Total Current Assets

Definitions favoring this concept are-

“Working Capital means total of Current Assets.”- Mead, Mallott and Field

Persons acknowledge the total of current ass5ets as working capital gives the following arguments in their favors:

(1) Just as fixed assets are considered as the symbol of fixed capital, current assets must also be considered as symbol of working capital.

(2) Any acquisition of fund increases the working capital.  This statement proves true according to this concept whereas it does not hold true according to the second concept.

(3) Most of the managers plan their business operations according to the current assets concept because these are the assets used in day-to-day business operations.

(4)   Utility of current assets remains the same whether financed from long term loans or short term loans.  Hence, the total amount of current assets must be treated as working capital.

Scope of Management Accounting

The following are the different fields, which are covered under management accounting:

1. Financial Accounting provides the basic information for analysis for management use. The historical data, records and accounting details help management to plan for future. Management, accounting is futuristic but future trends and tendencies are always based on the past; hence the need for financial accounting first.
2. Management accounting techniques are primarily cost accounting techniques. The techniques of marginal costing, budgetary control and standard costing which are techniques of cost control are important tools of control in the hands of management.
3. For planning business affairs, forecasting and budgeting both are very significant. Forecasts provide the basis for budgets. Predetermined targets help people in business to perform tasks accordingly and if there are deviations, corrective steps can be taken by management.
4. Auditing, of course, internal, audit has become so important these days that management relies heavily on it for fixing responsibilities and taking action against individuals. The system is used as a basis for performance appraisal.
5. Reporting is another significant aspect of management accounting. Prompt and timely reports are prepared at lower managerial levels and submitted to middle level management and by middle – level management to top level management.
6. Financial analysis is a part of management accounting. Through analysis of financial statements, interpretations can be made about the profitability, solvency and liquidity positions of an enterprise.
7. Management accounting lays out its hands on different control procedures and methods. As a matter of fact, the basic objectives is to use various resources available in the most economical, effectiveness, and efficient manner and this can be fulfilled when different techniques of control are adopted and implemented successfully.
8. Tax has become an important part of business life. How can such a crucial burden on the funds of the enterprise be left ignored by management accounting.

You’re no idiot, of course. You hire and manage talented people, carry out your daily tasks with grace, and even find ways to shine under deadline pressure. But when it comes to finance and accounting, you feel like you’re in the red. Don’t throw in the towel yet! The Complete Idiot’s Guide to Finance and Accounting helps you create a budget, manage a payroll, and develop a financial management–from the perspective of a nonfinancial manager. In this Complete Idiot’s Guide you get:

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You’re no idiot, of course. You hire and manage talented people, carry out your daily tasks with grace, and even find ways to shine under deadline pressure. But when it comes to finance and accounting, you feel like you’re in the red. Don’t throw in the towel yet! The Complete Idiot’s Guide to Finance and Accounting helps you create a budget, manage a payroll, and develop a financial management–from the perspective of a nonfinancial manager.
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