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Lisa C. Townes

Difference between Secured and Unsecured Loan

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Its early morning, and you’re in a hurry to get to work on time. Unexpectedly, your car has begun to make a terrible churning noise. You struggle to get it to the repair shop, but the repairing cost turns out to be thousands of dollars, and you don’t have that much cash in the account. What would you do? Taking out a loan may be a wise way to pay for an immediate emergency or fund a big purchase.

Similarly, if you’re trying to increase your company’s funding, you’ll probably get quotes on secured and unsecured loans. There are some significant variations between these two corporate financing forms that many business owners would be unfamiliar with. If you’re looking for a loan, you might come across the terms “secured” and “unsecured” as well. It’s critical to analyze what both terms mean and how they vary from one another when opting for getting the loan.

How specifically are secured loans distinct from unsecured loans, and what are the benefits and drawbacks of each?

Let’s dive in and discuss them in detail.

What Are Secured Loans?

Secured loans are backed by assets. Items bought, such as a house or a vehicle, may be used as security/collateral. The lender will keep the deed or copyright until the debt is completely paid off. Other things can also be used to shore up the loan. This requires shares, bonds, or personal belongings.

The most common method of investing vast sums of money are secured loans. The lender can only lend a considerable amount on the condition that it will be returned. Putting your house on the line is a way of ensuring you’re going to do whatever you can to pay back the loan.

Secured loans are not all recent acquisitions. Secured loans may also be home equity debts or home equity credit lines. Both are based on the present valuation of your home, excluding the balance already due. These loans are using your home as collateral.

A secured loan means that you have an assurance that your loan will be returned. The danger is that if you can’t afford a guaranteed loan, the lender can sell out your assets to pay off the loan.

What Are Unsecured Loans?

Unsecured loans function very differently from secured loans. They don’t necessitate you to have any of your assets as collateral. Instead, lenders check your credit record and revenue to assess how reliable you are to the borrower. If you are accepted for a loan, you will be paid an interest rate depending on the amount of danger you face.

Since they do not have insurance, unsecured loans seem to have higher interest rates than the secured loans. And lenders are going to be cautious about how much money they’d be lending you.

College loans are a popular form of unsecured loans. As a student, you can borrow funds for your schooling and tuition without putting up your car or house as collateral. Private student loans will base the interest rate on your credit profile.

Many of the personal loans are also unsecured. You may borrow from a bank, credit union, or digital lender to fund a significant transaction, consolidate loans, or pay for the maintenance of a vehicle. Based on your credit score, you might be compensated for a reasonably low-interest rate and have multiple years to repay.

Bear in mind that the inability to pay for an unsecured loan always has repercussions. If you’re lagging, lenders can send your credit to audits, or they can even bring you to court to garnish your income.

Major Differences between Secured and Unsecured Loans

1. You need equity to get a secured loan. For example, your house and car are held as collateral in the case of a mortgage loan and an auto loan. You need some form of security for a secured personal loan. On the other hand, an unsecured personal loan would not need any collateral. Examples of unsecured loans may include unsecured personal loans, credit cards, student loans, payday loans, and unsecured personal credit lines.

2. Secured loans contain lower rates of interest as compared to unsecured loans; secured loans have a lower interest rate. It makes sense, doesn’t it? The investor takes a massive risk on an unsecured personal loan, so it seems fair if the rate of interest is a little higher on an extremely risky loan. Like for every form of a loan, your credit record and payment history always come into play when you apply for a lower interest rate.

3. Secured loans can have a higher credit cap or a more extended maturity period than unsecured loans. Again, this depends on the lender and indeed on the assets used for the loan.

4. A secured loan is relatively easier to acquire. When it comes to eligibility, each lender can have various requirements. Of course, credit score, salary, and the accumulated debt are essential considerations in having every loan accepted. If your reputation is shaky or you’re just figuring out and don’t have a lot of credit background, it may be easier to get a guaranteed personal loan from your local credit union. Treated responsibly, it will also help you establish your credit background. Bear in mind that the downside of the guaranteed loan is that you risk your assets if you are unable to pay off the loan.

Bottom Line

To sum up, always know that secured loans will encourage you to borrow more money at cheaper rates, but it will place your assets at risk if you refuse to pay. Unsecured loans don’t put your personal property in danger, so they can be harder to obtain, and you’ll usually pay more interest.

Perhaps the option between a secured and an unsecured loan is not always in your hands. Both secured and unsecured loans will play a beneficial role in your financial life. Together, they are keys to house ownership, vehicle sales, prudent usage of credit cards, supporting your schooling, and even handling your money efficiently. Borrow wisely and pay back your debts on time; your credit will be all good! Moreover, if your credit history is stable, you will be able to meet your borrowing goals without collateral.

Difference between Petty Cash and Cash Float

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We all are well aware that one of the most challenging assets to manage within any company is its cash. One way to manage cash is for a company to mandate all purchases to be done by cheque. However, there are cases in which the use of a cheque is not practical.

Imagine that the Galaxy’s Best Yogurt is out of milk one day. It is impossible to work without milk, and the usual supply does not arrive for another 48 hours from the distributor.

To sustain the process, it is important to go to the supermarket across the street and buy three gallons of milk. It is not effective for time and expense to write a cheque for this small order, meaning that businesses build a petty cash fund, a fixed sum of cash kept on hand, to make payments for small regular transactions.

A petty cash fund is a form of imprest account, which means that it holds a certain sum of cash substituted as it is expended to retain a fixed balance.

What Is Meant By Petty Cash?

Businesses usually hold small cash sums to cover small miscellaneous expenses, such as entertainment and stationery charges. These transfers are usually done by a petty cash imprest system that fixes the volume of ‘Float.’ This is the full sum of cash that can be kept at any time. Every time the cash amount is limited, a petty cash imprest is inserted with cash by drawing a cheque. The refund’s value must be equal to the cost spent in petty cash from the time of the last refund. Petty cash balance is returned to the level of the float following repayment.

Any time a payment is made by petty cash, it is usually reported in the cashier’s petty cash journal. When a cashier demands the refund of petty cash, he shall create a petty cash voucher documenting the expenses incurred by petty cash during the time after the last refund, along with any supporting invoices serving as photographic proof of the allegation. If all is in order, the approved signer (e.g., the operations manager) draws a cheque equal to the value of the cost detailed in the petty cash voucher.

The Petty cash printing scheme is an easy way to handle minor day-to-day expenses. However, because cash is the entity’s most liquid assets, strict protections are required to prevent potential misappropriation. The following controls can be used for protecting petty cash:

  • Petty cash must be stored in a safe location ( e.g., money box)
  • Petty cash must be stored safely in a safe while it is not in service.
  • The cashier should be responsible for managing supporting invoices for purchases done by using petty cash.  
  • Cash counting must be made from time to time to ensure the cash balance in the Petty Cash Registry is all accurate.
  • The sum of petty cash float should not be raised significantly.
  • Since the Petty Cash List is not part of the double-entry scheme, transfers done through petty cash are eventually placed in General Ledger and the Cash Register.

What Is Meant By Cash Float?

Although paying by credit card, debit, or smartphone pay is popular in many sectors; some people also choose to pay in cash. Getting a cash float, which is the cash you have in the registry to provide customers with change whenever they pay in cash, is a vital business process. If you have a minimal float, you can run out of individual denominations and end up with angry customers. If you’ve got so much float, you may need to make a cash drop amid the day to deter robbery.

The cash float helps cashiers to bring about change for customers early in the day or transfer until a large number of cash purchases accrue to make the change from the day’s sales. Some companies and organizations often regard petty cash as a cash float and use this system to minimize the number of cheques or credit card charges required for small services and transactions.

What Is The Difference Between Petty Cash And Cash Float?

A business seller with a lot of money — apart from the one earned by the business they’re hoping to peddle — may float this money through the operation to make it look like a sale. This raises the apparent worth of the selling and buying price of the company. Cash floating is typically the simplest thing to hide if a vendor has two separate companies. Money can be flown from one company (because there are no taxes charged on the function of that business) to the one sold so that taxes are paid on that operation only.

On the other hand, to set up a petty cash system, the basic sum of money falls from a company checking account. Employees accept cash from the petty cash account, and then each transaction is recorded with a date, number, vendor (who was paid), and business intent. Any transaction using petty cash must be reported in the same manner as all other company profits and expenditures. The petty cash slips and petty cash logs can help obtain these costs so that they can be used to cover revenue for corporate tax purposes.

Conclusion

Summing it up, Petty cash has a lot of control risks involved. If you correctly follow the cash management/security routine, you will be able to keep petty cash under control. Build an approved float. Only set it up for less than a month of expenditures. Designate the custodian to monitor the physical access to the box. Finally, the caretaker must ensure that the cash and receipts complete the float.

As far as the cash float is concerned, to speed up the collection float, you need to compress the time between obtaining cash/cheques and depositing it in the vault. To do this, you should set up a post office box with all invoice payments. This decreases the probability that cheques will be lost in the mail on the way to the office. You can even set up a remote deposit with your bank account. This would encourage you to deposit cheques on the day they arrive, as soon as your accountant or payment clerk reports the cheques in your accounting system.

Different Types Of Amex Cards

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Selecting the perfect credit card according to your needs is a risky endeavor unless you explore Amex credit card reviews, isn’t it? Particularly with so many great choices from numerous issuers, American Express and its affiliates are selling some of the top cards available on the market.

Amex has a card tailored to almost everyone’s requirements, from newcomers to regular travelers to road warriors. As different Amex Cards provide various earning categories and perks, how do you select the best Amex card for yourself? What are the best different types of Amex cards available? Without further ado, let’s dive in and find out the answers to all your queries!

American Express Cards

American Express cards are distinct from regular credit cards in the way they function. Many individuals are unable to completely grasp the difference between them and standard cards.

Much of our regular currency transactions take place through our banks, but the banks do not regulate any aspect of the mechanism. There are a variety of companies that connect the accounts to the transactions you generate on the debit or credit cards. These firms are typically payment networks, such as Visa and Mastercard, which don’t send you a card themselves but only help handle transfers between shops and banks.

So what makes Amex so unique? American Express distributes its cards, finances the transactions you make and handles the cash deposit.  American Express is supposed to pay the charges in the form of interest or a one-off fee that incur due to this service. They also get a commission from the shops to handle their payments.

Benefits Of Amex Cards

American Express has been linked with luxurious lifestyles and lavish living because of its high credit standard and the numerous perks that come with having one. The Amex card allows its users to access gold memberships in rental car companies, a range of exclusive airport lounges, and personal assistants in luxury stores.

While this picture of the American Express is still somewhat predominant in popular society, it has begun to expand its audience to a slightly exclusive demographic. They also sell no-fee American Express cards that allow you to get money back and Airmiles any time you purchase products.

There are many other benefits, such as automobile insurance and vacation insurance. American Express already has an outstanding record of customer service and customer loyalty. The top-level American Express Cards get airmile and nector point and also have 5% cashback deals on transactions made.

Best 5 Different Amex Cards

American Express is best known for its luxury cars such as the Platinum Card and its “experiential” luxury packages such as concierge service. Still, it also provides cards with reduced annual fees and non-travel perks.

Also, all American Express card users will have access to Amex Deals that will reward you points or cashback offers while you buy from certain wholesalers.

If you’re hunting for the right Amex card for you, these are the few you need to know about!

1. Amex Platinum Card

If you love travelling, then this card is made for you! The Platinum Card has one of the highest recorded annual payments on any standard card. The Platinum Card provides 5 points per dollar spent on flights explicitly booked with the airline, and also on prepaid hotels and flights booked via Amex Travel.

The card offers a lengthy list of rewards, including passes which help in accessing more than 1,200 airport lounges and five-star hotels. This card allows you to earn 1x points on everything else.

2. Amex Gold Card

Credit Score Requirements for Amex Gold Card is strict but If you are a food freak, then The Amex Gold Card is one of the best options for you as it is one of the best dining cards available, unless you’re just concerned about the money back, instead of potentially more valuable bonus points.

The Amex Gold Card collects 4x points in restaurants around the world, 3x points on flight tickets booked straight with the airline, and 1x points on all the others. Based purely on the fact that you can conveniently exchange membership bonus points for more than 1 cent of each amount, this is the biggest-earning card for all food-related stuff.

The Amex Gold Card gives up to $ 100 of airline bill credits per calendar year and significantly contributes to $120 in dining points — partitioned into $10 per month.

3. Amex Blue Cash Preferred Card

Suppose you’re not enthusiastic about collecting Membership Bonus points which can be beneficial, but also take a lot of work to reclaim for full value and would like to stick with money back. In that case, the Amex Blue Cash Preferred Card is a wiser alternative.

The Amex Blue Cash Preferred Card also comes with a range of travelling and purchasing security. Money-back comes as a result of a statement refund, so you can efficiently use it to “remove” transactions.

4. Amex Green Card

The Amex Green Card would be a top choice to receive Membership Bonus points for travel and dining if you can’t pay for the Amex platinum.

You will receive 3 points per dollar on all qualifying travels, including anything from subway tickets to flights to hotels. You’ll also gain three reward points per dollar in restaurants around the world.

The Amex Green card annually charges you about $150, but that’s relatively moderate, significantly if you can reap the benefits of those two annual statement credit cards.

5. Amex EveryDay Card

The Amex EveryDay is a non-annual-fee edition that also delivers solid benefits. Like other Amex cards, there are a few travel and buy security, as well as access to the Amex Deals service.

Though most people would still be comfortable with the Preferred Amex Card, the basic EveryDay is yet a viable choice — mainly because there is no annual charge.

Remember

It is essential to determine whether or not you are going to end up spending enough on a card to fulfil the minimum criteria to experience the reward offers. If you don’t usually invest as much as you need to, so it’s not going to be profitable to boost your expenses merely to get the advantage of these deals.

Bottom-Line

To summarize this up, when opting for an American Express card, it’s crucial to know how you’re going to use it and make the worth of your money out of the extras that it provides. Amex credit cards cater to every individual, and every company needs them as they are available in several types.

To find the kind of credit card that offers you the rewards and versatility you need while keeping rates down and continuing to improve your credit score, you need to shop around and pay direct attention to the fine print. We hope this article helps you!

Importance of Transportation in Supply Chain

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Transportation is not merely a means of moving people from here to there, it is much more than that and holds so much importance in other businesses of life rather than just this. Take the supply chain, for example, transportation plays a major role in the supply chain to the extent that the world’s supply chain would have been suffering from great damage and trouble if it wasn’t for transportation.

Must be thinking why? Well, logic is: if transportation hasn’t been a part of the supply chain, then exporting and importing of products, shifting them to the warehouses, and completing their journey to the consumer doorstep would have been nearly impossible.

You may have heard people saying that warehouse is the heart of the supply chain, well I tell you what: they are highly mistaken because it would be much better to give this position to the transportation. Many factors make transportation an integral part of the supply chain. Some of the most important roles of transportation in the supply chain are discussed below.

Synchronization with the Supply Chain Technology

Whether it is the ocean, road, or air freight, with the help of these goods transportation means, you can easily track, monitor, and synchronize with your supply chain. Thinking how come?

Let me tell you that a company is allowed to monitor and handle its supply chain via Transportation Management Software (TMS). TMS helps you ensure timely deliveries of your products by providing you access to monitor daily transportation operations and trading information. Thus transportation helps you a lot to synchronize with your supply chain for good.

Improved Customer Service and Satisfaction

Transportation also plays a great role in maintaining and keeping a company’s reputation. If a company is continuously delivering its products late to the buyers, this means that the company is not very promising and hence this leads the customers into thinking that such a company can never provide them with good customer support who doesn’t even respect the value of time.

While on the other hand, good transportation means enhanced customer service and satisfaction. When the customers will be receiving their products at the right time, they will surely be satisfied and will give only good reviews about your company.

Provided More Options for Supply Chain

We all know the fact that transportation can never be done with a single type of transport mode. Every different nature of the product requires its respective mode of transportation. Therefore, the facility of transporting goods from a variety of different methods plays a most important role in the supply chain of a company.

For example pipelines, transportation media are used to transport gaseous and liquid material from one position to another, whereas heavy types of machinery are transported via ocean through shipping companies. Similarly, the products that are though lightweight but are needed right at the moment are delivered to their owner via air.

Final Verdict

The discussed above was just a little glance at the importance of transportation in the supply chain, there is still much more to be discussed in this field. There are many other advantages and the important role that transportation is playing in the supply chain as well as many other businesses.

Different Types Of Piggy Banks

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So right now, you might not be in the phase of opening a secret safe box, but you are still stuck in the saving phase, right? You might not have an astounding lot of money, but you’re searching for some cute piggy banks to help you save the money in a more fun manner!

Saving is never an easy job. There are so many exciting products, and gadgets you’ll want to acquire such as neon lights, lovely coffee mugs, smart home appliances, home decor, egg moulds… and the list is neverending.

Why Is Saving Money Important?

According to the News and World Report of the U.S., people are trapped in the “being broke” loop for three key reasons: they haven’t thought ahead, they don’t track and reduce expenses well, or have horrible financial practices.

But there’s a way of saving money that fits your lifestyle, is reliable and, believe it or not, is something you’ve always done as a child: a small piggy bank!

How Do You Use A Piggy Bank To End The Loop Of Being Broke?

Yes, a piggy bank is a perfect choice. Even you, as a mature adult businessman, will follow the same method to build a whole new relationship with money. You’re not going to be put on a schedule, you’re not going to be told whether to spend or not to spend, and you’re not going to be deprived of anything at all during the method.

Different Types of Piggy Banks

Fortunately, piggy banks have changed a lot since we were kids, so most of the alternatives available are more engaging and insightful than ever before. You’re not going to have a problem in finding a bank that will stir your interest and grab your attention! 

Adult Piggy Banks

If you’re trying to save enough for a new house, your next holiday, or just want to learn the habit of keeping the money rather than spending, consider the adult piggy banks.

It turns out that saving your money in a coin bank works well for adults just as it does for children. With a fun place to put your coins, you’re going to be able to save money quickly and meet your targets quicker than you would expect. Although a desktop type piggy bank would never provide for your new home, it could only give you a few hundred dollars and prove you the advantages of saving your money.

You’re going to find all sorts of adult piggy banks to get you into the practice of saving. From choices that test your hoop-shooting abilities to those that offer you a mesmerizing display any time you throw a coin, check out adult piggy banks in the market and choose the perfect one for you.

Cute Piggy Banks For Kids

Are you searching for a meaningful present for your little champs? Well, one of the most incredible gifts you can give them is a piggy bank. Educating them about the importance of money and savings at a younger age will help them to continue to understand and appreciate the value of money and how they can better spend their pocket money from now on. And you can make it much more fun by buying tiny and cute piggy banks that they’ll fall in love with.

There are many different types of cute piggy banks available on amazon to choose from that come with various aspects, sizes and styles. Children’s piggy banks are wonderful toys, instilling in them, from a young age, the desire to save. They also make exciting toys as kids can play with them or learn algebra or count at home in a smart way.

Other Piggy Banks

Many other unique kinds of piggy banks stand up to their name with unique and attractive styles. In this modern era of innovation, piggy banks also come in various sizes, and the large ones are named as large piggy banks as you can watch the coins going zig-zag into the huge belly.

Personalized piggy banks are also a perfect option for you as you can easily personalize the piggy banks to your wants and requirements! Well, that sounds amazing, doesn’t it?

What Are The Advantages Of Keeping A Piggy Bank?

Keeping a piggy bank is one of the most important ways for parents to show the importance of saving money to their children rather than wasting it. More specifically, a piggy bank is also an excellent example for parents and teenagers who may have overlooked the importance of saving money.

Here are the primary reasons why every individual, regardless of age, should use a piggy bank:

  • When our pockets or wallets are jammed full of so many coins, one smart trick is to put some money in a particular spot like a piggy bank instead of losing it in your sofa or car. Remember, even if it’s a tiny balance, it’s your income, and a little bit of it gets a lot pretty quick.
  • When it comes to money, it’s still necessary to set targets, and having a piggy bank is a convenient solution to assist you in meeting those goals. If you’re looking for a new dress or trying to save for a nice car or a family holiday, adding a piggy bank will physically indicate how close (or far away) you’re from having all that.
  • Piggy banks are an effortless and efficient way to show children in the household the value of savings.

Conclusion

With the piggy bank, you can get yourself out from the student and/or business-loan debt, pay off credits, and even contemplate early retirement. When you see the strength of these savings in your various piggy banks, you’re going to want to save more so that you start to prioritize your expenses better.

You will build a new life where you live richer today and tomorrow by changing your fiscal mind from “broken” to saving a little extra cash — just the way you used to do as a kid. We hope this article has motivated you to buy your own piggy bank and start saving!

Steps Involved in Advertising Planning Process

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Advertising is crucial for the success of any small, medium, or big enterprise. The main goal to advertise is to reach out maximum audience and boost sales for the time. Businesses use different advertising channels including social media, traditional methods (TV, newspapers, and Radio, etc.), and SEM. Advertising has its own pros and cons for both customers and the company.

Designing a good advertising campaign brings expected results for the company that is an increase in sales and generating more revenues. A single mistake in making an advertising plan can ruin all campaigns and turn costs into useless expenses.

We have listed 10 steps involved in designing a better advertising campaign on that marketers and advertisers spend hours and days before practically implementing.

Steps Marketers should keep into consideration

Planning to Define the Product or Service: The product or service should be defined before making any advertising strategy. Customers’ ratio can only be possible to increase if they completely understand the purpose of the product. This strategy can be called a mother of all advertising strategies as it is defining, what is going to be marketed. Thus, planning or defining any product or service can make homework much easier.

The decision for the Audience: Targeting the audience should be the primary concern when making advertising strategies. Every business or marketing promotion requires advertisement. But keeping the audience in view is obviously a tactical and important factor. A company should analyze whether they are catering to teenagers or senior citizens who have a limited range of spending. For example, men clothing that includes formal and casual suiting are pointing towards the men community while cosmetic and beauty products refer to women audience. So, if a company is focusing on a high sale ratio then they should target, who is likely going to buy that product or service.

Budget: Another essential strategy that allows other strategies to accomplish is budget. Promoting and advertising any product depends on how much a company is willing to invest. If a company has an extensive budget then it would be convenient for them to pass through every strategy getting no hurdle. But if they are limited with a budget, they have to watch out for every strategy that lies within their expenses.

Self-analysis: Before working on any strategy, the company should analyze their abilities to work. They should know their strengths, weaknesses, threats, and opportunities. What a company can provide to generate good revenue? Similarly, a company should be aware of their competitors. This analysis results in gaining an advantage for a company among its competitors.

Market research: Another important part of the advertising strategy is market research. Gathering knowledge about the availability of that product or services in particular areas, competitors’ position, and dispatching ratio. Customer’s interest in that product and the dilemmas faced by the customer regarding that product. The market study gives ongoing trends that help in making a great strategy. Moreover, pricing variation knowledge can benefit as well in approaching high sales targets.

Developing a marketing plan: After getting the latest market trends, the next strategy is to develop a market plan. Planning which includes a type of advertisement, the company is going to execute and the medium where they are going to be displayed. Whether they are choosing billboards and brochures in some shopping malls or running a commercial ad. These decisions come under the marketing plan.

Advertising through media: Now, the aim is to advertise the product through media and communication channels. More the product advertised through media, the larger the people aware of it. The product or service should be advertised keeping in mind the targeted audience and market research. If a treadmill is going to be marketed, it will be advertised on brochures or flyers at gyms, on fitness websites, and so on.

Launching the product or service: After advertising our plan, the next step is to implement it. If the product or service is advertised in a good manner, make sure to conquer the stability of that product or service. Stay consistent in circulating their ads among people. Choose eye-catching and attractive logos to catch a big range of customers. Maintain the quality and quantity of that product or service.

Modifying advertising strategy: The job is not done only by developing and executing advertising strategies but to stay connected with the market trends. A company should amend its products or services according to the latest market trends to maintain its position and worth.

Analyze results: Keeping the results in mind is really necessary. A company should take a thorough survey to analyze that did they provided what they have committed to the audience? Customer’s satisfaction is something a company should concern about. If a company is on track to reach their goals, results are essential.

Modern Methods of Performance Appraisal

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Performance appraisal refers to the documentation and evaluation of the employees ’ job performance. It plays an important role in the career development of an employee. Yearly performance appraisal of employees helps the company to boost up its productivity and achieve its objectives.

Performance appraisal is the practice of enhancing the employee’s focus on work by promoting trust. Though performance appraisal is a positive measure and brings great changes in the overall performance of companies.

But if performance appraisal is not carried out rightly, the consequences may not be appreciable because a wrongly done employee appraisal can lead to several potential complications.

If the methods choose for performance appraisal are not appropriate, they may result in negative perception and may even lead to stress, discomfort, and tension between the line manager and subordinates.

Therefore, it is important to select a right and appropriate method to carry out the performance appraisal. The methods used in the past were showing various complications in the results, that’s why modern methods of performance appraisal were introduced.

So if you want you to carry out PA on your employees and are looking for the best method to do so, then you can take complete advantage of PA to enhance your company’s efficiency and productivity.        

Performance Appraisal Methods

Management by Objective (MBO)

In this method of performance appraisal, both employees and managers cooperate and sit together to discuss the past problems and performances.

They then spot out, arrange, make plans, and communicates about the goals and objectives to be achieved. And after that, they conduct regular meetings in which the employee shares the progress made by him or her with the manager.

The employer then makes a report of this progress to measure how much the employee is contributing to the enhancement of productivity and learning new skills.   

Advantages of Management by Objective (MBO)

The MBO appraisal methods come with the following benefits:

  • Enhanced and improved sense of identification
  • Increased productivity
  • Better communication between employer and employee
  • Development of an employee’s career

360 Degree Feedback Appraisal Method

The 360-degree feedback method is one of the multi-dimensional appraisal methods. It is used to keep the employee motivated and influenced. This method includes the collecting of feedback of a specific employee from his or her subordinates, supervisors, colleagues, and sometimes, even the employee himself.

The purpose of this method is to collect the information about employee’s behavior and attitude towards buyers and co-coworkers so that if there is any improvement required, it can be carried out. This method is one of the most used methods and it really does help improve productivity and performance.

Advantages of 360 Degree Feedback Appraisal

The 360-degree feedback has many benefits, however, only a few of them are given below:

  • It boosts up moral values
  • Increased self-awareness
  • Builds up confidence
  • Increased professional development

Psychological Appraisal Method

This method is the most interesting method of all. In this method of performance appraisal, the company focuses on the future progress of an employee rather than evaluating his past performances.

Several psychologists are involved to carry out the Psychological appraisal method, the psychologists study, and assess various psychological activities of the employee like his emotional stability, intellectual abilities, analytical expertise, etc.

In this method, the psychologist also observes how the employee deals with an aggressive and argumentative client. His behavior, his attitude, and his stress level are also studied.

Advantages of Psychological Appraisal Method

Below given are some of the benefits that the psychological appraisal method of management offers to both the company and the employee:

  • It not only observes the performance of an employee but also studies his potential
  • Provides more opportunity to the reserved and bashful employees to prove themselves
  • More effective in boosting up productivity than other appraisal methods

Behaviorally Anchored Rating Scales (BARS)

The Behaviorally Anchored Rating Scales (bars) method is thought to be the most effective method. In this method, the employee’s performance is measure by rating scales. There are four different types of scales used to measure particular behavior and attitudes, these are:

  1. Behaviorally Anchored Scale
  2. Forced Choice Scale
  3. Graphic Rating Scale
  4. Mixed Standard scale

All these scales have got the rating from “excellent” to “poor”. The performance and behavior of an employee become much easier to measure with these scales.

Advantages of BARS (Behaviorally Anchored Rating Scales)

Let’s have a look at a few advantages of BARS appraisal method

  • Improves the organization’s performance
  • Increased reliability
  • Improves feedback

Types of Decision Making in Management

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Selecting the best option among lots of different alternatives for the sake of the company’s success is no doubt, the most significant action to increase the productivity of an organization. That’s why decision making plays an important role in boosting up the efficiency of a company. It depends upon the process of decision making whether the organization will be able to gain higher revenue the following year or not.

Decision-making is quite an overwhelming task for management. Managers have to turn their days and nights equal to come up with a high-yielding decision. They have to opt for different methods and strategies so that they don’t miss out on any opportunity for success.

If the management has made a wrong decision either mistakenly or knowingly, the company would have to suffer its consequences for the next few years. Any opportunity you miss during decision making is going to cost your company a big loss.

Decision making is a complex process and isn’t that simple and straight. There are various strategies and types of decision making in management. And today we are going to discuss the 4 most important types of decision making, so let’s begin.

4 Types of Decision making in Management

Give the following are the main types of decision-making in management that every company has to consider in order to increase productivity and efficiency. 

1. Organizational and Personal Decisions

When an executive takes a decision on the behalf of the organization because of having an official capacity, then this type of decision-making will be referred to as organizational decision. An executive who makes an organizational decision is in a state to delegate these decisions on the employees and subordinates.

For example, decisions made by managers and executives regarding the transfer of an employee, or like introducing a new inducement system in the company are organizational decisions as they are made on the behalf of the organization.   

While on the other hand, when an executive takes a decision in his personal capacity that does not involves or relates to the organization in any possible way is known as a personal decision. These decisions are related to the manager’s personal life within the organization and cannot be delegated to subordinates.

For example: what to eat during the lunch break, what clothing to wear in the office, what hairstyle to make for the work, these all lies under personal decisions.      

2. Individual and Groups Decisions

In an organization, when a decision is taken by one individual only in an official capacity and no other team member or employee is involved in making that decision, then that type of decision will be called as an individual decision. Even though this decision is taken by one individual only, the decision is applied to the whole organization.

For example: when you ask your boss for a leave, the decision is made by the boss only, no other manager or subordinate is involved in it.

Whereas, in group decisions, the decisions are made by a group of people either employees or managers. For example: when the board of directors makes a collaborative decision, it is called a group decision.

3. Programmed and Non-Programmed

Programmed decisions are kind of rules and regulations. These decisions are pre-planned, organized, and lined up decisions and are generally taken by the lower-level managers and are implemented on employees for the day-to-day tasks and functioning. The manager repeats these decisions again and again.

Examples of these types of management decisions are decisions regarding the assignments of workers and granting leaves to the workers etc. These types of decisions are not long-term and can be changed anytime.

And when it comes to the non-programmed decisions, these are just the opposite of what is said above. Non-programmed decisions are made by the top-level management instead of lower managers and these decisions are generally unstructured.

The need for these decisions arises when an unusual problem arises. These decisions are not repeated again and again and unlike tactical decisions, these have a long-term impact on the organization.

For example, decisions made regarding the opening or closing of a unit, making changes in the wage, etc. 

4. Major and Minor Decisions

Another type of decision making is major and minor decisions. The major decisions are taken by the top management only and it involves some important and crucial settlements.

For example: buying a new factory or a building is a major decision and can only be made by the owners or top management. While on the other hand, buying daily items like computers, seats, and desks, stationery, etc. are called minor decisions. These decisions are generally made by lower-level management.

Saving Account: Advantages VS Disadvantages

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For an average income person, saving money can be the most difficult thing of all. In this advanced and modern age, we could barely make the money to fulfill our essential needs, so thinking about saving a chunk from within them is not a cup of tea.

And even if we can manage to put aside a part of the money for a vacation or any other purpose, we can’t stash it under our beds, because then it wouldn’t be enough. So, the best way to save money is to stock it in the saving accounts. Saving accounts have been in use for years. They not only save our money but also increase it, so they are by far the best mean of saving the cash.

But as we all know that everything doesn’t come up with 100% perfection. Similarly, saving accounts also carries some drawbacks along with numerous benefits. Today, we’re gonna put light on both aspects of saving accounts, so stick with us till the end to know what’s in there for you in saving accounts.  

Advantages of Savings Accounts

Saving accounts are safe and secure

Along with saving your money, savings accounts also ensures that it is protected and secure. If you have opened your savings account in a bank that holds the membership of FDIC (Federal Deposit Insurance Corporation), then it will provide you with up to 250,000$ for the insurance of your money.

They’re easy to open

Unlike opening a regular account, saving accounts are much easy and convenient to open, you don’t have to fulfill numerous formalities to create a savings account. It will barely take a few minutes to create an account. You can apply for the savings account over the phone, online, or by visiting the bank in person. Your account will be approved and ready to go just after a few minutes after applying. 

They allow easy access to the money

Savings accounts allow you fast and easy access to your money so that you don’t have to wait for long in case of an emergency. You can handle, manage, and access your money online if your bank has an online website. All you need is an unlimited internet connection, if you have one, then you can access your account 24/7.

Low start-up rates

Saving accounts doesn’t require you much money for their star-up. You can even start your savings account with as little as $25. So you don’t have to worry if you don’t have hundreds of dollars in your pocket, you can still save with as much as you’ve got.

Easy billing methods

Saving accounts are beneficial for you to pay your bills and payments on time without delaying as they offer automated payment methods directly from savings without the need for any withdrawals.

Facilitates in switching accounts

Saving accounts does not lock you in for any time period which makes it easier for you to switch between multiple accounts whenever you like. 

Disadvantages of Savings Accounts

Monthly maintenance fees

Some savings accounts require a minimum balance in the account while most of them also charge a monthly fee for the maintenance of your account. That’s why your account shouldn’t fall below the minimum balance or otherwise, the bank with start to subtract the debt from your savings. 

Interests rates are low

The interest rates in saving accounts are really low, which means you can’t earn enough from the interest. However, the main purpose of a saving account is to save money not to increase it, so low-interest rates should not bother you much. 

Variable rates

The rates of interest in savings accounts are not constant, they can change without any early notification, so you shouldn’t depend upon your interest as there is no guarantee of them, they can get high and low whenever the management want.

Inflation

If the saving accounts are not paying you the competitive interest rates, then there is an increased possibility that the interest amount that you have earned might get eaten up by inflation thus leaving you with a worthless account.   

Limited transactions

Though you are allowed to access your savings account whenever you want, you are restricted to a limited number when it comes to transactions, you can only withdraw 6 transactions per month from a saving account due to Regulation D.

IT Sector Eased Our Life: Here’s How

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Our forefathers would have never imagined the world that we are living in today. The 21st century has brought so many facilities for the humans that are beyond imagination.

1000 years ago, when people used to travel on horses, had they ever thought that a time will come when people will be able to fly from country to country to reach their destinations? Of course not.

All thanks to Science and technology. It made possible most unimaginable things. Technology has made our live 10 times easier and advanced. And the sector that has done most of the work to ease the lives of mankind is Information and Technology.

It has made our lives so much dependent on it (in good sense) that we can’t even imagine a second without it. Imagine that your internet connection has suddenly disconnected, then what will become of you? We are not even able to breathe without it, because it has made our lives so much relaxed and free of tensions. IT sector has eased our lives in many ways, let’s illuminate a few of them.

Easier and Efficient Education

In old times people had to travel from country to country without any special means of transport, just so that they can get a quality education, because no matter which era it is, education holds the same importance as it has been holding since the beginning of the world.

In short, education was not easily access able than, but with the emergence of IT, it was made possible for anyone to get as much education as they want by just sitting in their lounge. The internet is full of the most valuable books, personalities, and information that can change your life.

Improved Banking System

Banking systems are one of the oldest businesses in the world. Banking is the most important sector for almost every market filed. Every year, banking systems are evolving and making better services every time.

The major reason for the progress of the banking sector is Information and Technology. One of the dominant changes that IT has brought in the banking sector is the advancement of the Core Banking Systems. Due to this digital transformation, people can now make their transactions and payments online rather than standing in long queues.  

Entertainment

IT has brought smiles on our faces by giving a touch of entertainment to our dull and boring life. Now we don’t have to stand in the long lines in front of the theater to get a movie ticket because IT has enabled us to transform our houses into mini cinemas.

Better Communication

Will you ever think of writing a letter to your friends or relatives? Of course not. Why would you do so when you have your phone by your side? It only requires you to dial some numbers and you can hear the live voice or even see the real person from the other side, no matter how far you both are.

But just a hundred years ago, things didn’t worked like they are now. People had to write extensive letters, then purchase the stamp and after that have to walk miles to the post office to post their letter, so that their loved ones can know their condition. And this process might take a few days. So communication, just a hundred years ago wasn’t that easy as it is now. Hence IT has done a Solid when it comes to the better means of communication.   

Upgraded Media

A few years back, the media was not much advanced and therefore, people were isolated to their homes and family and had very little contact with the outside world. They didn’t know what was going in the world. The only means of interacting with the world were the local newspapers which carried only a few important news. But as the IT step in, it gave us access to the whole wide world, now we can know every little bit of what is going on around the globe.

Space for New Jobs

As the completion in the IT sector is rising and many companies are trying their best to be on the top, which why the demand for IT services from west palm beach are increasing. There are high demands for cloud management solutions, tech support, managed IT services, etc. in companies. Thus this is leading to new opportunities and space for jobs.