Author: Rashmi Kumari

  • What is Economics? Nature, Scope, and Assumptions

    What is Economics? Nature, Scope, and Assumptions

    What is Economics?

    Economics is that branch of social science that is concerned with the study of how individuals, households, firms, industries, and government take decisions relating to the allocation of limited resources to productive uses, so as to derive maximum gain or satisfaction.

    Simply put, it is all about the choices we make concerning the use of scarce resources that have alternative uses, with the aim of satisfying our most pressing infinite wants and distributing them among ourselves.

    Economics Definition

    Defining economics has always been a controversial issue since time immemorial. Definition of economics by different economists have different viewpoints. Some economists had a viewpoint that economics deals with problems, such as inflation and unemployment while others believed that economics is a study of money,

    Therefore, a simple definition of economics is defined by taking four definition

    Wealth Definition of Economics

    Economics is the study of the nature and causes of nations’ wealth or simply as the study of wealth.

    Adam Smith

    Key Features of Wealth economics definition

    1. The main objective of Economics is to gain maximum wealth as possible
    2. The core of economic activity: are production, distribution and consumption.
    3. It deals with the causes of the creation of wealth in an economy.
    4. The term ‘wealth’ used in this definition referred to material wealth.

    Welfare Definition of Economics

    It is a neo-classical definition of economics by Alfred Marshall.

    It is the study of mankind in the ordinary business of life. It enquires how he gets his income and how he uses it. In one view, it is a study of wealth and on other hand it is part of study of man.

    Alfred Marshall

    Key features of Welfare economics definition

    1. It defines Economics as the study of activities related to a human being and their material welfare.
    2. Marshall clarified that Economics is related to incomes of individuals and its uses for creating material welfare.
    3. Collectively incomes of a group of individuals form the wealth of a nation and ultimate goal is to increase welfare of individual by their routine activities.

    Scarcity Definition of Economics

    It is a pre-Keynesian definition of economics by robbins in his book ‘Essays on the Nature and Significance of the Economic Science’ (1932).

    Economics is a science which studies human behaviour as a relationship between ends and scarce means which have alternative uses.

    Lionel Charles Robbins

    Key features of Scarcity economics definition

    1. It recognized that Economics is a science deal with the economic behaviours of a human being.
    2. It also focuses on optimum utilisation of scarce resources.
    3. It provides three basic features of human existence, which are unlimited wants, limited resources, and alternative uses of limited resources
    4. There is a need for efficient use of scarce resources, and the primary objective of Economics is to ensure efficiency in the use of resources with a purpose to satisfy human wants.

    Growth Definition of Economics

    This is the modern perspective definition of economics by Samuelson. He provided the growth-oriented definition of economics.

    Economics is the study of how man and society choose with or without the use of money to employ the scarce productive resources, which have alternative uses, to produce various commodities over time and distributing them for consumption, how or in the future among various person or groups in society.

    Paul Samuelson

    Key features of Growth economics definition

    1. It deals with the allocation of scarce resource to be used in productive purposes.
    2. The selection of the most efficient use of the resources from alternative ways.
    3. The growth of economies will depend upon the consumption and production in the economy.
    4. This definition also points towards Economics as a study of an economic system.

    Economics have different definition of economics by different economists and social thinkers with different objectives and contexts. All these definitions are correct and none can be taken as universally acceptable.

    This is a classical definition of economics by Adam Smith, who is also considered as the father of modern economics.

    Nature of Economics

    1. Economics is a science: Science is an organised branch of knowledge, that analyses cause and effect relationship between economic agents. Further, economics helps in integrating various sciences such as mathematics, statistics, etc. to identify the relationship between price, demand, supply and other economic factors.
      • Positive Economics: A positive science is one that studies the relationship between two variables but does not give any value judgment, i.e. it states ‘what is’. It deals with facts about the entire economy.
      • Normative Economics: As a normative science, economics passes value judgement, i.e. ‘what ought to be’. It is concerned with economic goals and policies to attain these goals.
    2. Economics is an art: Art is a discipline that expresses the way things are to be done, so as to achieve the desired end. Economics has various branches like production, distribution, consumption and economics, that provide general rules and laws that are capable of solving different problems of society.

    Therefore, economics is considered as science as well as art, i.e. science in terms of its methodology and arts as in application. Hence, economics is concerned with both theoretical and practical aspects of the economic problems which we encounter in our day-to-day life.

    Scope of Economics

    • Microeconomics: The part of economics whose subject matter of study is individual units, i.e. a consumer, a household, a firm, an industry, etc. It analyses the way in which the decisions are taken by the economic agents, concerning the allocation of the resources that are limited in nature.It studies consumer behaviour, product pricing, firm’s behaviour. Factor pricing, etc.
    • Macro Economics: It is that branch of economics which studies the entire economy, instead of individual units, i.e. level of output, total investment, total savings, total consumption, etc. Basically, it is the study of aggregates and averages. It analyses the economic environment as a whole, wherein the firms, consumers, households, and governments make decisions.It covers areas like national income, general price level, the balance of trade and balance of payment, level of employment, level of savings and investment.

    The fundamental difference between micro and macroeconomics lies in the scale of study. Further, in microeconomics, more importance is given to the determination of price, whereas macroeconomics is concerned with the determination of income of the economy as a whole.

    Nevertheless, microeconomics and macroeconomics are complementary to one another, as they both aimed at maximizing the welfare of the economy as a whole.

    From the standpoint of microeconomics, the objective can be achieved through the best possible allocation of scarce resources. Conversely, if we talk about macroeconomics, this goal can be attained through the effective use of the resources of the economy.

    Assumptions in Economics

    There are certain assumptions in economics about an economic situation to happen in the future. Economists use assumptions to break down complex economic processes and advocate different theories to understand economic variables.

    Three important assumptions in economics, are as follows:

    1. Consumers have rational preferences
    2. Existence of perfect competition
    3. Existence of equilibrium

    Consumers have rational preferences

    This assumption states that consumers act in a rational manner and focus on satisfying their needs.

    It is also assumed that the tastes of consumers remain constant for a long period. For instance, a consumer who is vegetarian may not change his/her preferences in the near future.

    Existence of perfect competition

    According to this assumption, there is perfect competition in an economy, wherein there are numerous buyers and sellers.

    It is assumed that homogenous products exist in the market and both buyers and sellers cannot affect prices.

    Existence of equilibrium

    As per this assumption, equilibrium exists wherein both consumers and entrepreneurs achieve maximum satisfaction.

    In a market, there can be two types of equilibrium: industry equilibrium and firm equilibrium. The industry is at equilibrium if profits achieved are normal. On the other hand, a firm is at the state of equilibrium if its profits are maximum.

  • What is Supply? Determinants, Types, Function

    What is Supply? Determinants, Types, Function

    What is Supply in Economics? ?

    Supply is an economic principle that can be defined as the quantity of a product that a seller is willing to offer in the market at a particular price within a specific time.

    The supply of a product is influenced by various determinants, such as price, cost of production, government policies, and technology. It is governed by the law of supply, which states a direct relationship between the supply and price of a product, while other factors remain the same.

    Supply Definition

    In economics, “Supply” implies the quantity (how much) of a commodity that the producers, manufacturers, or sellers are willing and able to offer to the market at different prices during a particular period of time.

    Basically, supply is something that the firm offers for sale, to the target audience in the market, which may not be something that the firm succeeds in selling, because everything that is offered is for sale, may not get sold.

    Economist has given different supply definition but the essence is the same.

    Supply may be defined as a schedule which shows the various amounts of a product which a particular seller is willing and able to produce and make available for sale in the market at each specific price in a set of possible prices during a given period.

    McConnell

    Supply refers to the quantity of a commodity offered for sale at a given price, in a given market, at given time.

    Anatol Murad

    Classification of supply

    Supply can be classified into two categories, which are individual supply and market supply.

    1.Individual Supply

    Individual Supply connotes the quantity of a good or service which an individual organization is willing and able to produce and offer for sale.

    An individual supply schedule is an indicator of various quantities of a product offered for sale by a producer at different prices.

    2.Market Supply

    Market Supply implies how much of a commodity, all the producers in the market are willing and able to produce and offer for sale is called market supply.

    Market supply schedule reflects the different quantities of a product that all the firms in the market are ready to supply at set market price, during a particular period of time.

    Determinants of Supply

    • Price of a good: Other things remain constant when the relative price of a commodity is high, it is supplied in great quantity, as firm produces the commodity to earn profit and the profit of the firm increases with an increase in its price.
    • Price of related goods: When the price of other goods, i.e. competing or complementary goods rise, it becomes comparatively profitable to the firm to produce and offer the other good than the good in question. For instance: A farmer produces two crops tea and coffee and if the price of tea increases, then in such a situation, it will be more profitable for the farmer to produce more tea. Therefore, the farmer may shift his resources from the coffee production to that of tea. In this way, the supply of tea may increase and coffee will fall.
    • Price of inputs: The price of factors of production (inputs), i.e. land, labor, capital, entrepreneur also affects the supply of the commodity, in a way that if there is an increase in the price of a factor of production, then the cost of producing a commodity which uses that particular factor in excess will be more in comparison to the commodity, which uses the same factor in less quantity.
    • State of the art technology: Innovations in the product, usually make the product better than before, and also better than its competitors, with the limited resources which the company possess. Thus the company will increase the supply of the products with state of the art technology and reduce the supply of the product which is displaced.
    • Taxes and subsidies: Goods and services tax is levied on goods, which increases the overall cost of production and so the supply of the commodity will increase only when the price of the commodity rises. Conversely, government subsidies usually decrease the cost of production and hence it is beneficial to the firm to increase the supply of goods.
    • Nature of competition: When there is a cut-throat competition between firms in the market, the firm wants to increase their share to the maximum, for which they supply more of the commodity. Further, when there is a new entry to the industry, it also increases the supply of the existing goods in the market.
    • Firm’s business objective: The primary objective of the firm, i.e. profit maximization or sales maximization or the combination of the two, also influence the market supply of the commodity. So, when the firm wants to increase the profit, it will decrease the supply of the commodity, which can help the firm in increasing the price when there is a high demand for it. In contrast, when the firm wants to increase its sales, it will simply raise the supply.

    Apart from the given factors, there are other factors like natural factors especially in the case of agricultural products, which influence the supply. Further, the future expectation of the products about the price rise/fall may also influence the supply of the commodity in the market.

    Types of Supply

    • Market Supply
    • Short-term Supply
    • Long-term Supply
    • Joint Supply

    Supply Function

    Supply function is the mathematical expression of law of supply. In other words, supply function quantifies the relationship between quantity supplied and price of a product, while keeping the other factors at constant.

    The law of supply expresses the nature of the relationship between quantity supplied and price of a product, while the supply function measures that relationship.

    The supply function can be expressed as:

    Qs = f (Pa, Pb, Pc, T, Tp)

    Where,
    Qs = Supply
    Pa = Price of the good supplied
    Pb = Price of other goods
    Pc = Price of factor input
    T = Technology
    Tp = Time Period

    According to the supply function, the quantity supplied of a good (Qs) varies
    with the price of that good (Pa), the price of other goods (Pb), the price
    of factor input (Pc), the technology used for production (T), and time period
    (Tp)

  • What is Rumors ? Definition, Prevention and Management

    What is Rumors ? Definition, Prevention and Management

    In this article, you’ll learn about What is Rumors ? Definition, Prevention and Management of Rumors.

    In our interconnected world, rumors have become an inevitable part of human communication. Defined as unverified information or stories that circulate widely, rumors can quickly spread and influence public opinion. They have the power to shape perceptions, create fear and uncertainty, and even impact individuals, organizations, and societies. In this article, we will explore the definition of rumors, discuss their potential consequences, and delve into effective strategies for their prevention and management.

    If you haven’t been a victim of one, you may have participated in one.

    Definition of Rumors

    Rumors can be described as unofficial information or stories that are passed from person to person, often with no factual evidence or reliable sources to support their claims. They are typically spread through interpersonal communication, social media platforms, or other communication channels. Rumors can cover a wide range of topics, including gossip about individuals, sensational news, conspiracy theories, and false information about events or situations.

    Consequences of Rumors

    Rumors can have significant consequences at various levels, including personal, organizational, and societal. At a personal level, rumors can damage reputations, relationships, and emotional well-being. In organizations, rumors can disrupt productivity, erode trust among employees, and harm the overall work environment. On a larger scale, rumors can fuel panic, lead to social unrest, and even have political implications. It is crucial to address rumors proactively to mitigate their potential negative impact.

    Prevention of Rumors

    Preventing the spread of rumors requires a multi-faceted approach involving both individuals and organizations. Here are some strategies for rumor prevention:

    1. Promote Open Communication: Foster an environment where open and transparent communication is encouraged. Establish channels for employees, community members, or stakeholders to express their concerns and seek accurate information.
    2. Educate and Raise Awareness: Educate individuals about the consequences of rumors and the importance of verifying information before sharing it. Promote media literacy and critical thinking skills to help people evaluate the credibility of sources.
    3. Swiftly Address Misinformation: Actively monitor and identify rumors as they emerge. Provide timely and accurate information to counter false narratives. Utilize official communication channels, such as press releases, social media announcements, or public statements, to address rumors promptly.
    4. Engage with the Community: Establish a presence in the community and engage with key stakeholders. Build relationships based on trust and credibility, so that when rumors arise, there is an established foundation for effective communication.

    Management of Rumors

    When rumors do arise, it is essential to manage them effectively to minimize their impact. Here are some strategies for rumor management:

    1. Listen and Understand: Pay attention to the concerns and fears expressed by individuals affected by the rumor. Actively listen to their perspectives and address their questions and doubts empathetically.
    2. Verify and Provide Accurate Information: Conduct thorough investigations to verify the accuracy of the rumor. Once verified, provide clear and accurate information to dispel misinformation and present the facts. Communicate the information through various channels to reach a wide audience.
    3. Engage with Influencers: Identify key influencers within the community or organization who can help spread accurate information and counteract rumors. Engage them in the communication process to amplify the message and promote trust.
    4. Monitor and Respond: Continuously monitor the conversation surrounding the rumor. Address any new developments or emerging concerns promptly and transparently. Being proactive in communication can help regain control of the narrative.
    5. Learn and Improve: After managing a rumor, reflect on the experience and identify areas for improvement in communication processes and crisis management strategies. Use the lessons learned to strengthen future prevention and management efforts.

    Conclusion

    In conclusion, rumors can have far-reaching consequences in our interconnected world. Understanding the definition of rumors, their potential impact, and implementing effective prevention and management strategies are crucial for individuals, organizations,

    and societies. By actively promoting open communication, educating individuals about the consequences of rumors, swiftly addressing misinformation, and engaging with the community, we can prevent the spread of rumors. Additionally, when rumors do arise, effective management techniques such as listening, verifying information, engaging influencers, monitoring conversations, and continuous improvement can help mitigate their impact.

    By taking proactive steps to address rumors, we can uphold truth, maintain trust, and minimize the potential harm caused by false information. In an era where information spreads rapidly, it is our collective responsibility to combat rumors and ensure accurate and reliable communication. Let us foster a culture of transparency, critical thinking, and open dialogue, so that rumors lose their power to distort reality and sow discord. Together, we can create a more informed and resilient society.

  • Functions of Communication

    Functions of Communication

    In this are you’ll learn about Functions of Communication. The functions of communication are to persuade, inform, and motivate, which help employees make better decisions and work more efficiently. Learn about the three functions of communication and explore examples of each function. 

    What are communication functions?

    Communication functions refer to how people use language for different purposes also refers to how language is affected by different time, place, and situation used to control the behavior of people used to regulate the nature and amount of activities people engage in.

    1. Motivation

    Managers use communication to motivate workers to achieve peak performance. By clarifying the expectations of employees and providing incentives for meeting or exceeding expectations, communication can help companies reach specific objectives. 

    For example, by communicating to salespeople that they’ll receive a 10 percent bonus if they reach their annual sales goal, it helps the company reach its overall sales goals.

    1. Control

    A company uses communication as a way to maintain control over employees and their work environment. Written human resources policies and procedures dictate how employees are permitted to act in the workplace. Job descriptions outline the parameters of an employee’s job functions. Performance reviews control whether an employee receives a raise or attains a promotion.

    1. Interaction

    Communication allows employees to interact with customers and each other. A customer service department communicates with customers to help them resolve issues.

    Example: A business letter can be used to introduce a company to a potential customer. Communication is essential for employees who work together on a project or during the training process.

    Employees may interact socially both at work and outside the workplace.

    1. Providing Information

    Information is dispersed throughout an organization through written or verbal communication. A human resources representative or business owner may send out a memo explaining a change in the company’s health plan. A business meeting may be used as a way to communicate a new office procedure. 

    Example:A webinar allows a company to conduct a meeting over the Internet with employees or customers who cannot attend in person.

    1. Providing Feedback

    Communication allows for employees, managers and business owners to give and receive feedback on changes that are being considered or have already been implemented. 

    For example, if a small business owner is considering the purchase of a new computer system, he may first consult with his employees to determine what features the system should include and what help they may need in learning the system.

  • Barriers and Gateway in Communication

    Barriers and Gateway in Communication

    Communication is a process beginning with a sender who encodes the message and passes it through some channel to the receiver who decodes the message. Communication is fruitful if and only if the messages sent by the sender is interpreted with same meaning by the receiver.

    If any kind of disturbance blocks any step of communication, the message will be destroyed. Due to such disturbances, managers in an organization face severe problems. Thus the managers must locate such barriers and take steps to get rid of them.

    “Things that makes communication or good relationship between people difficult or impossible”

    There are several barriers that affects the flow of communication in an organization. These barriers interrupt the flow of communication from the sender to the reciever, thus making communication ineffective. It is essential for managers to overcome these barriers. The main barriers of communication are summarized below.

    Miscommunication or Barriers to communication

    Problem which effect the transmission from the sender to the receiver in the communication  process.

    How does miscommunication or barriers arise?

    1. Problem in developing the message. 
    2. Difficulty in expressing ideas. 
    3. Problems in transmitting the message. 
    4. Problems in receiving the message. 
    5. Problems in interpreting the message 

    1) Semantic Barriers 

    If the receiver is not able to comprehend the massage that the sender intends to convey, it results into language barrier in the process of communication.

    Distortion in communication comes from semantics- the use of words or expressions which have a different meaning for the sender or receiver.

    Created when communicators use technical jargon- usage common to a particular field or specialization

    There is always a possibility of misunderstanding the feelings of the sender of the message or getting a wrong meaning of it. The words, signs, and figures used in the communication are explained by the receiver in the light of his experience which creates doubtful situations. This happens because the information is not sent in simple language.

    The chief language-related barriers are as under

    1. Badly Expressed Message

    Because of the obscurity of language there is always a possibility of wrong interpretation of the messages. This barrier is created because of the wrong choice of words, in civil words, the wrong sequence of sentences and frequent repetitions. This may be called linguistic chaos.

    1. Symbols or Words with Different Meanings

    A symbol or a word can have different meanings. If the receiver misunderstands the communication, it becomes meaningless. 

    For example

    The word ‘value’ can have different meanings in the following sentences:

    • What is the value of computer education these days?
    • What is the value of this mobile set?
    • Value our friendship.
    1. Faulty Translation

    A manager receives much information from his superiors and subordinates and he translates it for all the employees according to their level of understanding. Hence, the information has to be moulded according to the understanding or environment of the receiver. If there is a little carelessness in this process, the faulty translation can be a barrier in the communication.

    1. Unclarified Assumptions

    It has been observed that sometimes a sender takes it for granted that the receiver knows some basic things and, therefore, it is enough to tell him about the major subject matter. This point of view of the sender is correct to some extent with reference to the daily communication, but it is absolutely wrong in case of some special message,

    1. Technical Jargon

    Generally, it has been seen that the people working in an enterprise are connected with some special technical group who have their separate technical language.

    Their communication is not so simple as to be understood by everybody. Hence, technical language can be a barrier in communication. 

    For Example

    This technical group includes industrial engineers, production development manager, quality controller, etc.

    1. Body Language and Gesture Decoding

    When the communication is passed on with the help of body language and gestures, its misunderstanding hinders the proper understanding of the message.

    For Example

    • Moving one’s neck to reply to a question does not indicate properly whether the meaning is ‘Yes’ or ‘No’.
    • A message that includes a lot of specialist jargon and abbreviations will not be understood by a receiver who is not familiar with the terminology used.

    Semantics

    • Definition of words
    • Choice of words

    Causes

    • Use of unsuitable words .        
    • Improper sentence formation.

    2) Organizational Barriers

    Every organization has its own structure and communication techniques.

    Organisational structure greatly affects the capability of the employees as far as the communication is concerned. Some major organisational hindrances in the way of communication are the following:

    1. Organisational Policies

    Organisational policies determine the relationship among all the persons working in the enterprise. For example, it can be the policy of the organisation that communication will be in the written form. In such a situation anything that could be conveyed in a few words shall have to be communicated in the written form. Consequently, work gets delayed.

    1. Rules and Regulations

    Organisational rules become barriers in communication by determining the subject-matter, medium, etc. of communication. Troubled by the definite rules, the senders do not send some of the messages.

    1. Status

    Under organising all the employees are divided into many categories on the basis of their level. This formal division acts as a barrier in communication especially when the communication moves from the bottom to the top.

    For example, when a lower-level employee has to send his message to a superior at the top level there is a lurking fear in his mind that the communication may be faulty, and because of this fear, he cannot convey himself clearly and in time. It delays the decision making.

    1. Complexity in Organisational Structure

    The greater number of managerial levels in an organisation makes it more complex. It results in delay in communication and information gets changed before it reaches the receiver. In other words, negative things or criticism are concealed. Thus, the more the number of managerial levels in the organisation, the more ineffective the communication becomes.

    1. Organisational Facilities

    Organisational facilities mean making available sufficient stationery, telephone, translator, etc. When these facilities are sufficient in an organisation, the communication will be timely, clear and in accordance with necessity. In the absence of these facilities communication becomes meaningless.

    Cause

    • Processing of information from several people.          
    • Organizational rules.

    3) Inter personal barriers

    The barriers occur due to individual as well as cultural differences.

    Personal Barriers

    The above-mentioned organisational barriers are important in themselves but there are some barriers which are directly connected with the sender and the receiver. They are called personal barriers. From the point of view of convenience, they have been divided into two parts:

    1. Barriers Related to Superiors:

    These barriers are as follows:

    • Fear of Challenge of Authority

    Everybody desires to occupy a high office in the organisation. In this hope the officers try to conceal their weaknesses by not communicating their ideas. There is a fear in their mind that in case the reality comes to light they may have to move to the lower level,

    • Lack of Confidence in Subordinates

    Top-level superiors think that the lower- level employees are less capable and, therefore, they ignore the information or suggestions sent by them. They deliberately ignore the communication from their subordinates in order to increase their own importance. Consequently, the self-confidence of the employees is lowered.

    1. Barriers Related to Subordinates:

    Subordinates-related barriers are the following:

    • Unwillingness to Communicate

    Sometimes the subordinates do not want to send any information to their superiors. When the subordinates feel that the information is of negative nature and will adversely affect them, an effort is made to conceal that information.

    If it becomes imperative to send this information, it is sent in a modified or amended form. Thus, the subordinates, by not clarifying the facts, become a hindrance in communication,

    • Lack of Proper Incentive

    Lack of incentive to the subordinates creates a hindrance in communication. The lack of incentive to the subordinates is because of the fact that their suggestions or ideas are not given any importance. If the superiors ignore the subordinates, they become in different towards any exchange of ideas in future.

    Cause

    • Attitude of superiors.
    • Emotional feelings.

    4) Psychological Barrier

    Physiological barriers to communication are those that result from the performance characteristics and limitations of the human body and the human mindThe importance of communication depends on the mental condition of both the parties. 

    For example, a receiver with reduced hearing may not grasp to entirety of a spoken conversation especially if there is significant background noise.

    Psychological barriers are often caused by:

    • Prejudice
    • Attitudes
    • Personality

    A mentally disturbed party can be a hindrance in communication. Following are the emotional barriers in the way of communication:

    1. Premature Evaluation:

    Sometimes the receiver of information tries to dig out meaning without much thinking at the time of receiving or even before receiving information, which can be wrong. This type of evaluation is a hindrance in the exchange of information and the enthusiasm of the sender gets dampened.

    1. Lack of Attention

    When the receiver is preoccupied with some important work he/she does not listen to the message attentively. 

    For example

    An employee is talking to his boss when the latter is busy in some important conversation. In such a situation the boss may not pay any attention to what subordinate is saying. Thus, there arises psychological hurdle in the communication.

    1. Loss by Transmission and Poor Retention

    When a message is received by a person after it has passed through many people, generally it loses some of its truth. This is called loss by transmission. This happens normally in case of oral communication. Poor retention of information means that with every next transfer of information the actual form or truth of the information changes.

    According to one estimate, with each transfer of oral communication the loss of the information amounts to nearly 30%. This happens because of the carelessness of people. Therefore, lack of transmission of information in its true or exact form becomes a hindrance in communication.

    1. Distrust

    For successful communication the transmitter and the receiver must trust each other. If there is a lack of trust between them, the receiver will always derive an opposite meaning from the message. Because of this, communication will become meaningless.

    When a person is not able to communicate effectively because of mental disturbances.

    For example

    If someone is stressed they may be preoccupied by personal concerns and not as receptive to the message as if they were not stressed.

    Cause

    • Background.    
    • Fixed ideas .

    5)Physical Barriers

    The distracting element found in the surrounding environment that does not allow proper communication.

    There are a host of physical factors that can prevent individuals from having an effective communication. Physical barriers relate to disturbance in the immediate milieu, which can interfere in the course of an effective communication.

    1.Environment

    Some barriers are due to the existing environment. If you are standing in adverse weather conditions, your conversation would be hampered, because you would not be able to pay full attention to what the other person is saying.

    The ambience in which you are having a conversation also plays an important part in the quality of a conversation. If the place is too noisy, or two crowded, you may not be able to clearly listen to the speaker.

    For example

    If you are having a conversation with someone along the roadside, the noise of the passing vehicles can make it difficult for you to concentrate on what you are saying, apart from interfering in effective listening. Similarly, if you are talking to someone in scorching heat, then the physical discomfort can easily cause you to be disinterested in the conversation.

    2.Distance

    Distance also plays an important part in determining the course of a conversation. For example, if the staff in an organization are made to sit in different buildings or different floors, they might have to substitute face to face communication with phone calls or emails. This prevents the employees to have effective communication with each other. 

    For example

    If a manager and his subordinate are seated at different buildings of an organization, then the manager may have to give out instructions over the phone or over the email, which can sometimes lead to a lack of effective communication.

    3.Ignorance of Medium

    Communication also includes using signs and symbols to convey a feeling or a thought. However, if there is a lack of ignorance about the medium in which sender is sending the message, the conversation can be hampered.

    For example

    The use of signs to communicate can be seen in games like soccer and hockey, where players do not want the opposing team to know about their plans and may converse through codes and signs. However, if a member of a team is not acquainted with these signs, it can lead to a lack of communication.

    4.Physical Disability

    Physical disability can also prove to be a barrier for effective communication.

    People with physical disabilities generally are at a disadvantage when it comes to gaining employment. They have been marginalized through ages, and this can cause them to have a low self-esteem and social anxiety.

    It can cause a physically challenged person to have face difficulties in self-disclosure and can hamper his interpersonal skills.

    Cause:

    • Noise.            
    • Poor lighting.

    Practical Examples of Barriers in Communication

    Apparent “cause” Practical Example 
    Physiological  Message in an internal report not received due to blindness. 
    Psychological  Message from external stakeholder ignored due to „groupthink‟ 
    Cultural  Message from organisation misinterpreted by members of a particular group 
    Political  Message from internal stakeholder not sent because individual is marginalised 
    Economic  Message not available to a public sector organisation due to lack of resources 
    Technological  Message not delivered due to technical failure   
    Physical  Message cannot be heard and visual aids cannot be seen by some  members of the audience           

  • What is Niche Market? Characteristics and Example

    What is Niche Market? Characteristics and Example

    What is Niche Market?

    A niche market is a subset of a market on which a particular product or service is focused. The market subset is usually based on five different market segments: geographic, demographic, firmographic, behavioral and psychographic.

    Niche marketing involves dividing the traditional market into smaller groups having homogenous needs for a product, and selecting one such group which is different from the mainstream business.

    Development of a niche market acts as an opportunity to sell tailored products and services to the specific group, which are overlooked by the other firms and then devising strategies to cater the audience belonging to that group or niche.

    It begins with acknowledging the needs and preferences of the few customers and then making efforts to transform it into a larger market.

    Examples of Niche Market

    1. There are many niches, within the larger laptop market. Gaming Laptops would be considered as a niche market, as it will offer laptops to professional gamers, animators and multimedia artists, programmers, audio professionals and many more.
    2. Within a larger soap market, there exists a niche market for hand-made soaps, which will target only those customers who want chemical-free soaps, which are less harsh on the skin.
    3. In a larger cooking oil market, there is a niche market for cold-pressed oil, which focuses on buyers who give more preference to quality or health.

    Characteristics of Niche Market

    A niche market is characterised by:

    • Unique set of needs: Niche market is represented by specialist needs among the audience, served by a few competitors.
    • Ample size: The size of the niche market should be large enough to earn profits.
    • Sufficient purchasing ability: While selecting a particular niche, the firm must lay emphasis on the purchasing ability of the target customers.
    • No real competitors: Markets that are not recognized by other firms or the competitors have negligible interest in it.
    • Resources, competencies and skills: Firm possesses the needed resources, competencies and skills, to exploit the niche.
    • Need for special treatment: Niches are typified by the customer group whose needs are often ignored by the existing players in the market.
    • Growth prospects: The firm seeking to enter a niche market, should focus on the growth prospects, i.e. the opportunities to grow and expand.
    • Customers Goodwill: In order to excel in a market niche, first of all the firm should understand clearly and thoroughly, ‘what their customers need’. Further, niche customers are so loyal, that they can pay a higher price to get the product.
    • Firm achieve economies through specialization: The primary advantage of pursuing a niche strategy is that the firm seeks dominance in the market and achieve economies through specialization.
    • Provides barriers to entry for competitors: Niche market should be such that which presents barriers to entry for competitors because it is not likely to attract competitors easily.
    • Greater profit margins: A niche marketer knows the customer’s group and their needs so well that it serves them in the best manner. This leads to greater margins due to the premium price for the value addition, and strong brand loyalty. Further, the customers are ready to pay a premium price for the product which exactly satisfies their needs.

    A niche market is an extremely concentrated market, with a specific group of audience and focusing on a specific product. That is why, the marketing strategies target the specifications and features of the product, which is capable of fulfilling distinctive market needs. By doing this the company aims at surviving competition and become a market leader.

    It distinguishes the product offered by the firm with other products in the market and caters the customers who demand a unique or premium product.

    What is the difference between target market and niche market?

    Target Market: Your target market is your ideal client – the person or group of people you serve. In other words, the group of people you TARGET with your marketing.

    Niche Market: Your niche on the other hand is your area of specialty. It’s your service focus or HOW you help your target market.

    How to Find a Niche Market ?

    1. Reflect on your passions and interests.
    2. Identify customers’ problems and needs.
    3. Research the competition.
    4. Define your niche and its profitability.
    5. Test your product or service.
  • Team: Definition, Characteristics, Types, and Team Building

    Team: Definition, Characteristics, Types, and Team Building

    What is Team

    A group of people with a full set of complementary skills required to complete a task, job, or project.

    Team members

    • Operate with a high degree of interdependence, 
    • Share authority and responsibility for self-management, 
    • Are accountable for the collective performance, and 
    • Work toward a common goal and shared rewards.

    A team becomes more than just a collection of people when a strong sense of mutual commitment creates synergy, thus generating performance greater than the sum of the performance of its individual members

    A group does not necessarily constitute a team. Teams normally have members with complementary skills and generate synergy through a coordinated effort which allows each member to maximize their strengths and minimize their weaknesses.

    Characteristics of Teams

    • There is a clear unity of purpose.  There was free discussion of the objectives until members could commit themselves to them; the objectives are meaningful to each group member. 
    • The group is self-conscious about its own operations. The group has taken time to explicitly discuss group process — how the group will function to achieve its objectives. The group has a clear, explicit, and mutually agreed-upon approach: mechanics, norms, expectations, rules, etc.

    Frequently, it will stop to examine how well it is doing or what may be interfering with its operation.

    Whatever the problem may be, it gets open discussion and a solution found. 

    • The group has set clear and demanding performance goals for itself and has translated these performance goals into well-defined concrete milestones against which it measures itself. The group defines and achieves a continuous series of “small wins” along the way to larger goals. 
    • The atmosphere tends to be informal, comfortable, relaxed.

    There are no obvious tensions, a working atmosphere in which people are involved and interested. 

    • There is a lot of discussion in which virtually everyone participates, but it remains pertinent to the purpose of the group. If discussion gets off track, someone will bring it back in short order. The members listen to each other. Every idea is given a hearing. People are not afraid of being foolish by putting forth a creative thought even if it seems extreme. 
    • People are free in expressing their feelings as well as their ideas. 
    • There is disagreement and this is viewed as good.

    Disagreements are not suppressed or overridden by premature group action. The reasons are carefully examined, and the group seeks to resolve them rather than dominate the dissenter. Dissenters are not trying to dominate the group; they have a genuine difference of opinion. If there are basic disagreements that cannot be resolved, the group figures out a way to live with them without letting them block their efforts. 

    • Most decisions are made at a point where there is general agreement.

    However, those who disagree with the general agreement of the group do not keep their opposition private and let an apparent consensus mask their disagreement. The group does not accept a simple majority as a proper basis for action. 

    • Each individual carries his or her own weight, to meet or exceed the expectations of other group members. Each individual is respectful of the mechanics of the group: arriving on time, coming to meetings prepared, completing agreed upon tasks on time, etc. When action is taken, clears assignments are made (who-what-when) and willingly accepted and completed by each group member. 
    • Criticism is frequent, frank and relatively comfortable. The criticism has a constructive flavor — oriented toward removing an obstacle that faces the group. 
    • The leadership of the group shifts from time to time.

    The issue is not who controls, but how to get the job done.  

    Team building

    Team building is a collective term for various types of activities used to enhance social relations and define roles within teams, often involving collaborative tasks. It is distinct from team training, which is designed to improve efficiency, rather than interpersonal relations.

    Teams can be classified according to their objective. The four most common forms of teams you are likely to find in an organization are problem-solving teams, self-managed teams, cross-functional teams, and virtual teams.

    1. Problem Solving Teams

    They are typically composed of 5 to 12 employees from the same department who meet for a few hours each week to discuss ways of improving quality, efficiency, and the work environment. Organizations are relaying more and more on problem-solving teams to help solve organizational problems.

    In problem-solving teams, members share ideas or offer suggestions on how work process and methods can be improved. Rarely, however, are these teams given the authority to unilaterally implement any of their suggested actions.

    2. Self Managed Teams

    They are generally composed of 10 to 15 people who take on the responsibilities of their former supervisors. Typically, these responsibilities include:

    • Collective control over the pace of work,
    • Determination of work assignments,
    • Organization of breaks, and
    • Collective choice of inspection procedures used.

    Fully self-managed teams select their own members, and the members evaluate each other’s performance. As a result, supervisory positions take on decreased importance and may even be eliminated.

    3. Cross – Functional Teams

    Cross-functional teams are made of employees at about the same hierarchical level, but from different work areas, who come together to accomplish a task.

    Cross-functional teams are an effective means of allowing people from diverse areas within an organization to exchange information, develop new ideas, solve problems, and coordinate complex projects. Cross-functional teams bring people with different functional specialties to better invent design, or deliver a product or service. The general goals of using cross-functional team include some combination of innovation, speed and quality that come from early coordination among the various specialties

    4. Virtual Teams

    Virtual teams use computers technology to tie tighter physically dispersed members in order to achieve a common goal. They allow people to collaborate online, whether they are only a room apart or separated by continents.

    The three primary factors that differentiate virtual teams from face-to-face teams are:

    • The absence of Para verbal and nonverbal cues.
    • Limited social context.
    • The ability to overcome time and space constraints.
  • What is Corporate Meeting? How can we Conduct it

    What is Corporate Meeting? How can we Conduct it

    In this article, you’ll learn about What is Corporate Meeting, Types of Corporate Meeting, How to Conduct a Meeting and more.

    What are Corporate Meeting?

    A corporate meeting is an organized gathering of company employees or stakeholders to discuss important business topics and make decisions. These meetings can range from small departmental meetings to large, company-wide gatherings and can be held in person or virtually. The purpose of a corporate meeting is to provide a platform for open communication, collaboration, and decision-making within the company.

    Types of Corporate Meeting

    There are two main categories:

    • Regular Meetings: These occur at predetermined intervals, such as annually or quarterly. Examples include board of directors’ meetings and shareholder meetings.
    • Special Meetings: These are convened to address specific issues or make critical decisions that can’t wait for a regular meeting.

    How to Conduct a Meeting

    The process of running an effective meeting includes the following steps:

    1. Plan the Meeting
    2. Announce/Declare the Meeting
    3. Conduct the Meeting
    4. Evaluate the Meeting

    Let’s understand each step in details:

    1. Plan the Meeting

    Planning a successful corporate meeting requires careful consideration of several key elements. First, the meeting’s purpose must be clearly defined. This helps to determine the topics that need to be covered and the type of meeting that is most appropriate. Next, the agenda must be created and circulated to all attendees, outlining the topics to be covered and the timeline for the meeting. The location and format of the meeting, whether in-person or virtual, must also be decided. Finally, the meeting’s attendees must be identified and invited, and any necessary resources or materials must be gathered.

    2. Announce/Declare the Meeting

    Once the meeting has been planned, it is time to announce or declare it to all attendees. This can be done through a variety of channels, including email, company intranet, or a physical bulletin board. The announcement should include the date, time, location, and purpose of the meeting, as well as any necessary information such as agendas or materials.

    3. Conduct the Meeting

    The meeting itself should be conducted in a professional and organized manner. A designated leader or moderator should guide the discussion and ensure that all attendees have the opportunity to participate. Minutes should be taken to accurately record the decisions and actions taken during the meeting. It is also important to maintain an atmosphere of respect and open communication, encouraging attendees to express their thoughts and opinions.

    4. Evaluate the Meeting

    After the meeting has concluded, it is important to evaluate its success. This can be done by gathering feedback from attendees, reviewing the minutes and decisions made during the meeting, and considering any goals or objectives that were set before the meeting. Based on this evaluation, any necessary changes or improvements can be made for future meetings.

    Conclusion

    In conclusion, corporate meetings are an important tool for effective communication, collaboration, and decision-making within a company. By carefully planning, announcing, conducting, and evaluating these meetings, companies can ensure that their meetings are productive, efficient, and valuable for all attendees.

  • From Trash to Treasure: The ReFit Story on Shark Tank India

    From Trash to Treasure: The ReFit Story on Shark Tank India

    In the electrifying arena of Shark Tank India, amidst innovative ideas and fierce negotiations, one brand stood out for its eco-conscious approach and potential to disrupt the consumer electronics market: ReFit Global. But the journey of ReFit wasn’t just about securing funding; it was a testament to the vision of its founders and their commitment to giving discarded gadgets a second life. Let’s delve into the inspiring story of ReFit, from its humble beginnings to its recent success on the popular reality show.

    The Birth of an Idea

    The year was 2017, and two young entrepreneurs, Saket Saurav and Avneet Singh, were witnessing the ever-growing mountain of electronic waste (e-waste) in India. This alarming observation sparked a question: could these seemingly unusable devices be given a new lease on life? Driven by this vision, they embarked on a mission to create a sustainable business model around refurbished electronics, thus contributing to a greener future.

    From Passion to Prototype

    Starting with a small initial investment, Saket and Avneet began by sourcing pre-owned smartphones from various channels. They meticulously developed a multi-stage quality control process, ensuring each device underwent rigorous testing and refurbishment before being offered for sale. Their commitment to quality and affordability was evident in their competitive pricing, often 30-40% lower than brand new models.

    Building a Brand and Facing Challenges

    The initial days were filled with challenges. Building trust in a market accustomed to brand new devices was an uphill battle. But Saket and Avneet persevered, focusing on transparency and building a strong online presence. They leveraged social media platforms to showcase their work, educate consumers about the benefits of refurbished devices, and build a loyal customer base.

    Shark Tank India: A Turning Point

    In 2023, ReFit Global stepped onto the stage of Shark Tank India, ready to pitch their vision to the country’s leading investors. Their passion, coupled with their impressive growth trajectory (a 100x year-on-year increase!), resonated with the Sharks. Despite their initial ask of 2 crores for 0.5% equity and a valuation of 400 crores, negotiations led to a final deal of 2 crores in exchange for 1% equity and mentorship from three Sharks: Anupam Mittal, Vineeta Singh, and Amit Jain.

    Beyond the Investment

    ReFit’s success extends beyond the financial realm. They have diverted over 1 million phones from landfills, reducing e-waste and promoting responsible consumption. Their commitment to sustainability extends to their packaging, using recycled materials and minimizing waste. Additionally, they empower local communities by employing skilled technicians in their refurbishment centers.

    The Future of ReFit

    With the newfound support and resources, ReFit is poised for further expansion. Their aim is to become a household name for refurbished electronics, offering a wider range of devices and strengthening their presence across India. They also plan to invest in technology and automation to streamline operations and maintain their commitment to affordability and quality.

    More Than Just a Business

    ReFit’s journey is an inspiration to aspiring entrepreneurs and anyone passionate about making a positive impact. It demonstrates the power of starting small, believing in your vision, and never giving up on your dreams. In a world obsessed with the new, ReFit reminds us that value and potential can be found in the pre-loved and the recycled. They are not just selling refurbished phones; they are offering second chances, for technology and for the planet. As they embark on their next chapter, their story continues to inspire, reminding us that even the most ambitious dreams can be achieved with a little bit of grit and a whole lot of heart.

  • Motivation Theories

    Motivation Theories

    Motivation is an inner psychological force which activates and compares the person to behave in a particular manner. There are many motivation theories under the concept of motivation.

    Motivation Theories

    Motivation theories are categories into two: content and process theories.

    Content theory: focus on “what” motivates people.

    Process theory: focus on “how” motivation occurs.

    Content Motivation Theories

    Content theories try to figure “what” motivates people. It is also known as needs theory. It is concerned with individual needs and goals.
    Following are the motivation theories in content theory perspective.

    • Maslow’s hierarchy of needs
    • Herzberg’s Motivation-Hygiene Theory (Two-factor theory)
    • McClelland’s Needs Theory
    • Alderfer’s ERG Theory

    Maslow’s hierarchy of needs

    Maslow’s hierarchy of needs is a motivational theory in psychology. Maslow’s classified the human need into five hierarchy category.

    • Physiological need: These are a basic need for human life related to survival and maintenance.
      Example: Food, cloth, shelter, air etc. Getting a job in organization context.
    • Safety need: Once physiological needs are met. One’s attention turn to safety and stability.
      Example: Economic security and safety from physical danger such as war, crime etc. job security in organization context.
    • Social need: Those needs which are related to interaction with other people and may include need for friends, need for belongingness and to give and receive love.
      Example: Having good work relationships in the context of an organisation.
    • Esteem needs: It includes prestige, recognition, acceptance, admiration and self-respect.
      Example: Appreciated for what an individual can do, in the context of an organisation.

    Herzberg’s Motivation-Hygiene Theory

    Frederick Herzberg proposed a motivation-hygiene theory or Two-factor theory. According to Herzberg, satisfaction and dissatisfaction are two separate dimensions.

    • Satisfaction is affected by motivators and dissatisfaction is affected by hygiene factor, which is the key idea for managers.
    • This theory suggests to improve hygiene factor (dissatisfiers) and to provide motivators (satisfiers) for the motivation of employees.
    • Motivation cannot take place only by improving the highest factor in the work environment.
    • So, the manager has to improve hygiene factor for removal of dissatisfaction from the minds of employees and to provide motivators to increase satisfaction among the employees.

    Process Motivation Theories

    Process theories try to figure “How” the motivation occurs. It is concerned with the “process” of motivation.
    Following are the motivation theories from the process theory perspective.