Author Archives: Edu-Fi

Confused between LLP or Private limited company?

Are you confused which type of company is good for your business!.. LLP or Private limited? Let us tell you some differentiated features, pros and cons that make both good in their part and then you can decide easily as per your choice and kind of work business you deal in!..

Why LLP?

  1. It is a blend of both partnership as well as private ltd. company.
  2. Decentralized ownership.
  3. Ideal for start-up.
  4. Strictly, Manufacturing units can’t be registered as LLP, due to some basic issued rules of limited liability partnership act, 2008.
  5. Registration is compulsory.
  6. Atleast two persons involved to start a LLP firm and maximum no limit.
  7. MOA and AOA are to be registered with Ministry of corporate affairs.

Now let us discuss some advantages/pros of a LLP firm:-

  • No limits of agreed partner.
  • It do not require compulsory audit (only in maximum limit it may requires).
  • LLP is not liable to pay the tax on the income and share of its partner. Thus, no dividend distribution tax is payable as under section 40(b)
  • DDT is not applicable.
  • Low registration cost
  • LLP can be started on minimum capital (e.g. 5 lac)
  • Less legal compliances.

Disadvantages /cons of LLP:

  • Less shared investments of third party.
  • Less reliable.
  • In case an LLP fails to file Form 8 or Form 11 (LLP Annual Filing), a penalty of Rs.100 per day, per form is applicable.
  • Non-compliance penalty.

Note: An LLP can be converted into a Pvt. Ltd. company as per the provisions contained in Section 366 of the Companies Act, 2013 and Company (Authorised to Register) Rules, 2014.

Why Private limited company?

  1. Centralized ownership and decentralized management.
  2. Separate legal entity registered under companies act, 2013.
  3. Minimum 2 person required and can extent up to 200.
  4. It requires regular audit.
  5. Company abide by AOA and MOA.
  6. Have right to issue its share.
  7. Perpetuality.

Advantages/Pros of pvt. Ltd. Co.:

  • Reliable.
  • Third party is interested in investing in such companies.
  • High compliance.
  • High investment.
  • More professional
  • Tax reduction.
  • Other benefits.

Disadvantages/Cons of a pvt. Ltd.:

  • Long registration process.
  • Restrict transfer of shares.
  • Cannot issue prospectus to public.
  • Only limited shareholders i.e. 50

I hope you all got a vision which is best for you while setting up your business.

Note- This is as per the Indian system of doing startup and the things you have to keep in mind before registration.

Comment below if you want to know “how to register” your organization legally and approved by government. And how you will get the approval, in how many days you will get your name registered .

Thank you for reading.

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Human Resource Management

In today’s article we will discuss about human resource management. This plays major role in business organization because good and hard working employees are the key ingredient to any successful business. So the topics we are going to cover today in this are mentioned as follows:

  • Meaning of HRM
  • Definitions by various management scholars
  • Features of HRM
  • Principles of HRM
  • Functions of HRM
  • Conclusion

It is the methodology of optimum utilisation of manpower for the work in an organization to achieve desired organisational objective as a whole. Its decision and action that may affect the relationship between the organization and its employees. It deals with the procurement of human resource, training and maintenance of human resource.

In other words, Human resource management simply implies to the planning, organising, directing and controlling the operative functions of procurement, development, compensation and maintenance of Human resource of an organization goals. Human resource management is concerned with the ‘people’ dimensions of the organization. The objective of any organization is best obtained by acquiring Human resource, development of skills, motivating them for high rate performance and ensure employee loyalty for the organization.

Definitions:

“Human Resource Management is the process of acquiring, training, appraising, and compensating employees, and attending to their labour relations, health, safety and fairness concerns.”

-by Gary Dessler

“Human Resource Management is the recruitment, selection, development, utilisation of and accommodation to human resources by organisations.”

-by French Wendell

“It is basically a method of developing potentialities of employees so that they feel maximum satisfaction of their work and give their best efforts to the organization”

-by Pigors and Myers

“Human resource management encompasses those activities designed to provide for and coordinate the human resources of an organization Human resource functions refer to those tasks and duties performed in organizations to provide for and coordinate human resources”

–by Byars and Rue
Build capable employee chain with help of good Human resource management

Features of Human resource management:

  • Human resource planning – It involves analysis of internal and external factors by determining the organizations human resource needs, strategies and philosophies.
  • Optimum work force.
  • Efficiency and effectiveness of employees.
  • Development process.
  • Goal orientation.
  • Motivating employees at all level of functional departments.

Human resource management is broadly the term associated with how an organization manage its employees, how they get remuneration for the objective they achieved, Are they happy in organization etc.

Every individual/employee working for an organization expects appreciation at various levels of achievements but if any organization is lacking in fulfilling its employees basic needs then the negative and adverse situation may happen in goals and desires of the organization. To keep there employees morale high and boosted it is necessary to provide them monetary and emotional support so that employees can perform as per requirements.

There are some principles of human resource management depends on the manner in which HR policies and procedures are framed, implemented and governed. They are mentioned as follows:-

  1. Individualistic approach
  2. Make employees feel worthwhile
  3. Fair and just policies.
  4. Rewards
  5. Equal pay for equal work.
  6. Judge the strength of the employees.
  7. All employees have a right to organizational information as it facilitates timely execution of work.

Functions of Human resource management:

  • Motivation
  • Employees relation
  • Performance appraisal
  • Career Development
  • Training and development
  • Compensation and other benefits
  • Recruitment and orientation
  • Inception function means identification of skills, knowledge and abilities in an applicant.

Conclusion:

HRM is the management function that helps the manager to plan, recruit, select, train, develop, remunerate and maintain person for the organization. This is why it is consider as the key ingredient for any organization success. HRM in broader way deals with management, planning and development of its human resource to run them for long term and keep them motivated throughout the achievement of the organization goal.

Marketing concept

Before coming directly to the concept. Let us understand the concept of Market place and Market space.

Market place is that physical place where two parties i.e buyers and sellers meet for an exchange of goods and services. e.g. traditional way of shopping.

Market space is the concept to the virtual world where buyers and sellers meet online to exchange there goods and services. e.g. E-commerce.

Hence, Marketing is the art and process of promoting the products physical as well as virtual. The philosophy of marketing is based on a notion about the business in terms of customer needs and there satisfaction.

Broadly, Marketing is:

  • Estimation of customer demands, needs, taste and preference, wants and build a product to satisfy.
  • Advertising product in market by introducing them(customers) about the USP of the product.
  • Setting a genuine price so that large audience can afford it.
  • Checking and making product available by means of transportation to remote areas.

Definition of Marketing-

The performance of business activities that directs the flow of goods and services from producer to consumer or user.

-By American Marketing Association

A societal process by which individuals and groups obtain what they need and want through creating, offering and freely exchanging products and services of value to each other.

–By Philip Kotler

An ongoing process of discovering and translating consumer needs and desires into products and services, creating demand for these products and services, serving the consumer and his demand through a network of marketing channels and expanding the market base in the face of competition.

–By Paul Mazur

Needs, wants, and demands; Products; Value and satisfaction; Exchange and transactions; Markets are some of the concepts on which marketing is based.

Functions of Marketing-

  1. Marketing research is concerned with knowing the taste and preferences of the customer in scientific manner by the way of survey and quick analysis of every aspects which influences the demand of the product.
  2. Advertising is a tool which is used to spread awareness of the product that a company is willing to launch in the market and to gain a large share of audience through media.
  3. Sale promotion is the technique which is used by marketers when the product is launched and when the product reaches its maturity. The two sales promotion that are important are: Consumer and dealer sales promotion.
  4. Sales planning is the planning of marketing the right product at the right price.
  5. Distribution This is concerned with transferring of product from manufacturing place to customers place by the way of transportation.

IMPORTANCE OF MARKETING-

  • Competitive
  • Efficacy of the product.
  • Expansion of business.
  • Customer satisfaction.
  • Helpful in building brand image.

What are 7 P’s of Marketing mix?

Product
This includes that what a person/businessman is selling in the market, it may be a product or service. It may also include the type of products, which are necessary for life, such as food and clothes etc.

Price
This includes the pricing strategy at which one is selling his product or service. It may be a low cost strategy that is selling goods and services at low cost. Moreover targeting the customers which are more conscious about the high prices. However, on the other hand differentiation price strategy does not focus on cost. Basically they are targeting the customer that demands unique and different features in the product and is willing to pay high prices.

Place
This includes how a person/businessman is distributing and placing his product or service in the market. So the place strategy also depends upon the type of product which you are selling and the targeted market.

Promotion
The promotion strategy includes how the marketer informs the customers about the products or services that best satisfies their needs and desires. It might include different promotional mediums, such as television, newspaper, internet, banner etc.

People
Process
Physical evidence

Process involved in marketing-

  1. Deciding the objective.
  2. Designing the marketing system
  3. Developing strategies for separate functions.
  4. Making detailed plan
  5. Implementation of plan.

Prepare for UGC-NET

Hello everyone,

There are some queries about how to prepare for UGC-NET(JRF). So today I have found amazing booklist you must have while preparing for the exam.

Description:-

Well organized comprehensive set of 4 books that cover entire syllabus of paper 1(2021). Written by experienced faculties upon rigorous analysis of previous NET papers as well as various states’ SET exam papers including APSET, KSET, MHSET, WBSET, TNSET & so on. Easily understandable language and topic wise self evaluation questions that reflect current net exam standard.

Highly updated contents and practice questions with explanation. A must-read book for every JRF aspirant.

Language- English

Book length- 704

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Link is provided to direct you to the book and you can buy it from there if you are preparing for the UGC exam.

Prepare best for your MBA entrance

It is noted that few students want to clear exams like CAT, MAT, GMAT etc. to get best college for MBA.

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