Negotiation

Methods that address ethics problems between individuals, and between and within teams and organizations.

Negotiation takes 2 parties to carve some outcomes based on mutual interests. This mutual interest will be some dealing or even can be some dispute. But as in this subject I can solely contemplate dealings not disputes. A smart negotiator is one who produces a WIN-Win scenario between both parties.

Negotiation is something that may only be won by will power and confidence. Your thinking of better alternatives and understanding the limits of your negotiation can facilitate your most. Any negotiation is termed successful only when both parties win, "Winner takes all" approach isn't a better negotiating policy.

The necessity of negotiation

•          Teams are ubiquitous(everywhere). When do we need to negotiate? Used car, Ugli Orange case, Class teams

•          Levels

–        Between individuals

–        Inter-team negotiation

–        Intra-team negotiation

•          The need for ethical behavior

Negotiation Skills

Negotiation skills are requires to negotiate effective deals across a variety of contexts; including different industries, products and services. Negotiation skills are learnable, 'born negotiators' are a myth. Effective negotiation requires a variety of skills drawn from different disciplines. Negotiating skills include: communication, persuasion and influence, planning, strategising, tactics, process and systems, teamwork and many others. Since negotiation requires much face to face interaction, negotiation skills cannot be learned from a book alone. The better negotiation skills learning programs involve a great deal of role plays and feedback discussions

Negotiation Styles

The most popular way to divide the typical negotiation styles or approaches are: Competing (or Aggressive), Collaborating (or Cooperative), Avoiding, Compromise, Accommodating (Conceding). Most negotiators have one or two preferred negotiation styles. Ideal is to be able to choose to apply the most appropriate negotiation style to each type of negotiation, and to be able to switch negotiating style depending on who you are negotiating with and other important elements of your negotiation context. 

Understanding the Five Negotiation Styles

People often ask "which is the best negotiation style?" As with much management theory there is no single 'best' or 'right' approach. All five profiles of dealing with conflict are useful in different situations. Although we're capable of using all five, most of us tend to have one or two preferred negotiation conflict styles that we use unconsciously in most conflict situations. Why? Either because our preferred styles have worked for us in the past, or because of our temperament (nature) or because of our upbringing (nurture).

So if you're involved in business negotiations, which negotiation styles are likely to reward you with the biggest profit prizes? This question will be answered later in this article. First lets visit each of these important conflict profile styles.

Compete (I win - You lose)

Competitive style negotiators pursue their own needs - yes, even when this means others suffer. They often use whatever power and tactics they can muster, including their personality, position, economic threats, brand strength or size or market share. At its extreme negotiators call their behaviour aggressive or psychotic.

When to use?

When you need to act or get results quickly. Competition is critical when you are certain that something is not negotiable and immediate compliance is required.

Accommodate (I Lose - You Win)

The opposite of competing. For accommodating style negotiators, the relationship is everything. Accommodating profiles think that the route to winning people over is to give them what they want. They don't just give products and services, they are generous with information too. Accommodators are usually very well liked by their colleagues and opposite party negotiators

When to use?

When you or your company are at fault, repairing the relationship is critical, and if you have nothing else that would benefit the other side.

Avoid (I Lose - You Lose)

This is most often referred to as "passive aggressive". People who habitually use this style really dislike conflict. Rather than talk directly with you about the issue, avoid styles may instead try to take revenge without you knowing about it. The avoid style can be a typical reaction to high compete negotiators. Sellers will frequently call less often on high compete buyers (i.e. Avoiding Competitive buyers) - and may choose to invest marketing money and share their best ideas and prize promotions with non-avoid profiles.

When to use?

When the value of investing time to resolve the conflict outweighs the benefit; or if the issue under negotiation is trivial (trivial to both parties).
Sometimes there is just not enough at stake to risk a difficult conflict situation. If there is a lot of emotion in a negotiation, it's pointless pushing through and hammering it out. Better to allow people to calm down first, let the testosterone hormone leave everyone's system first so that reason and rationality can reappear. At that point an avoid style is likely the most pragmatic alternative - suggest a timeout of 15-20 minutes.
What to do when you're dragged into a negotiation unprepared? Under these circumstances, avoidance is probably the most sensible strategy. Either avoid the meeting, or avoid discussing the issues upon which you need to prepare.

Compromise (I Lose / Win Some - You Lose / Win Some)

Compromising is the style that most people think of as negotiation, but in reality compromising is usually just haggling. Compromising often involves splitting the difference, usually resulting in an end position of about half way between both party's opening positions. In the absence of a good rationale or properly exchanged concessions, half way between the two positions seems "fair". What compromising ignores however, is that the people that take the most extreme positions tend to get more of what is on offer.

When to use?

When you are pushed for time and you are dealing with someone who you trust. They also need to be clear that it would not be in their best interest for them to "win" a cheap victory. Both parties win and lose - but make sure you win the right things and lose the right things.
Meeting half way reduces strain on the relationship, but usually leaves precious gold on the table (and with the central banking cartel's gold suppression scheme losing its grip right now, every ounce of gold counts).
When you have nothing left to offer, and this is the only way to seal the deal. i.e. a lousy situation.

Collaborate (I Win - You Win)

Most people confuse "Win/Win" or the collaboration style with the compromising style. This is most definitely not the case. "Win/Win" is about making sure both parties have their needs met, and as much mutual value as can be created is created. "Win/Win" negotiators usually evolve through the other profiles, they grow into a collaborative negotiation style. This means collaborative profile negotiators can more easily revert to one or two of the other styles when pushed or when the situation calls for it. Collaborative profile negotiators are adamant that their needs must be met - and they acknowledge that the other party has needs that must be met too.
Tragically, too many account managers are overly accommodating and compromising. Resulting in competitive style buyers claiming more than their fair share. When these same competitive style buyers come up against skilled collaborative style negotiators, the competitive styles blunt coercion methods don't get rewarded with concessions.
Too many buyers are stretched and under tremendous time pressure, so temptation to compromise rather than invest time in collaborating wins out.

Often referred to as 'expanding the pie', collaborative negotiators are willing to invest more time and energy in finding innovative solutions, feeling secure in the fact that there will be more value to share out later on.

When to use?

Under most circumstances collaboration is the primary style you should use for most goals in business to business negotiations.

As mentioned briefly in the Compete section: if a relationship is important to you, and if your market reputation is important, if the other side needs to perform and not just exchange a standard product for cash, high risk (e.g. new market or new product or both), if there is a large amount of money at stake, then you are best advised to think about all the ways in which you can build a more trusting collaborative working relationship.

If you need to understand the feelings and deeper interests or motivations of all negotiators, then collaboration is your best path.

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Seven C's of Effective Communication

There are 7 C’s of effective communication which are applicable to both written as well as oral communication. These are as follows:

1. Completeness - The communication must be complete. It should convey all facts required by the audience. The sender of the message must take into consideration the receiver’s mind set and convey the message accordingly. A complete communication has following features:
• Complete communication develops and enhances reputation of an organization.
• Moreover, they are cost saving as no crucial information is missing and no additional cost is incurred in conveying extra message if the communication is complete.
• A complete communication always gives additional information wherever required. It leaves no questions in the mind of receiver.
• Complete communication helps in better decision-making by the audience/readers/receivers of message as they get all desired and crucial information.

It persuades the audience.

2. Conciseness - Conciseness means wordiness, i.e, communicating what you want to convey in least possible words without forgoing the other C’s of communication. Conciseness is a necessity for effective communication. Concise communication has following features:
• It is both time-saving as well as cost-saving.
• It underlines and highlights the main message as it avoids using excessive and needless words.
• Concise communication provides short and essential message in limited words to the audience.
• Concise message is more appealing and comprehensible to the audience.
• Concise message is non-repetitive in nature.
3. Consideration - Consideration implies “stepping into the shoes of others”. Effective communication must take the audience into consideration, i.e, the audience’s view points, background, mind-set, education level, etc. Make an attempt to envisage your audience, their requirements, emotions as well as problems. Ensure that the self-respect of the audience is maintained and their emotions are not at harm. Modify your words in message to suit the audience’s needs while making your message complete. Features of considerate communication are as follows:
• Emphasize on “you” approach.
• Empathize with the audience and exhibit interest in the audience. This will stimulate a positive reaction from the audience.
• Show optimism towards your audience. Emphasize on “what is possible” rather than “what is impossible”. Lay stress on positive words such as jovial, committed, thanks, warm, healthy, help, etc.
4. Clarity - Clarity implies emphasizing on a specific message or goal at a time, rather than trying to achieve too much at once. Clarity in communication has following features:
• It makes understanding easier.
• Complete clarity of thoughts and ideas enhances the meaning of message.
• Clear message makes use of exact, appropriate and concrete words.
5. Concreteness - Concrete communication implies being particular and clear rather than fuzzy and general. Concreteness strengthens the confidence. Concrete message has following features:
• It is supported with specific facts and figures.
• It makes use of words that are clear and that build the reputation.
• Concrete messages are not misinterpreted.
6. Courtesy - Courtesy in message implies the message should show the sender’s expression as well as should respect the receiver. The sender of the message should be sincerely polite, judicious, reflective and enthusiastic. Courteous message has following features:
• Courtesy implies taking into consideration both viewpoints as well as feelings of the receiver of the message.
• Courteous message is positive and focused at the audience.
• It makes use of terms showing respect for the receiver of message.
• It is not at all biased.
7. Correctness - Correctness in communication implies that there are no grammatical errors in communication. Correct communication has following features:
• The message is exact, correct and well-timed.
• If the communication is correct, it boosts up the confidence level.
• Correct message has greater impact on the audience/ readers.
• It checks for the precision and accurateness of facts and figures used in the message.
• It makes use of appropriate and correct language in the message.

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Accounting Principles

ACCOUNTING CONCEPT

            The word concept means idea or nation, which has universal application. Financial transactions are interpreted in the light of the concepts, which govern accounting methods. Concepts are those basis assumption and conditions, which form the basis upon which the accountancy has been laid. Unlike physical science, Accounting concepts are only results of broad consensus. These accounting concepts lay the foundation on the basis of which the accounting principals are formulated.

            Now we shall study in detail the various concepts on which accounting is based. The following are the widely accepted accounting concepts.

1.)       Entity Concept:-  Entity Concept says that business enterprises is a separate identity apart from its owner. Business transactions are recorded in the business books of accounts and owner’s transactions in this personal back of accounts. The concept of accounting entity for every business or what is to be excluded from the business books. Therefore, whenever business received cash from the proprietor, cash a/c is debited as business received cash and capital/c is credited. So the concept of separate entity is applicable to all forms of business organization.

2.)       Money Measurement Concept:- As per this concept, only those transactions, which can be measured in terms of money are recorded. Since money in the medium of exchange and the standard of economic value, this concept requires that these transactions alone that are capable of being measured in terms of money be only to be recorded in the books of accounts. For example, health condition of the chairman of the company, working conditions of the workers, sale policy ect. do not find place in accounting because it is not measured in terms of money.

3.)       Cost Concept:- By this concept, the value of assets is to be determined on the basic of historical cost. Transactions are entered in the books of accounts at the amount actually involved. For example a machine purchased for Rs. 80000 and may consider it worth Rs. 100000, but the entry in the books of account will be made with Rs. 80000 or the amount actually paid. The cost concept does not mean that the assets will always be shown at cost. The assets may be recorded at the time of purchase but it may be reduced its value be charging depreciation.

            Many assets de not have acquisition cost. Human assets of enterprises are an example. The cost concept fails to recognize such assets although it is a very important asset of any organization.

4.)       Going Concern Concept:- According to this concept the financial statements are normally prepared on the assumption that an enterprises is a going concern and will continue in operation for the foreseeable future. Transaction are therefore recorded in such a manner that the benefits likely to accrue in future from money spent. It is because of this concept that fixed assets are recorded at their original cost and depreciation in a systematic manner without reference to their current realizable value.

5.)       Dual aspect Concept:- This concept is the care of double entry book-keeping. Every transaction or event has two aspects. If any event occurs, it is bound to have two effects. For Rs.50000, on the other hand stock will increase by Rs.50000 and other liability will increase by Rs.50000. similarly is X starts a business with a capital of Rs. 50000, while on the other hand the business has to pay Rs. 50000 to the proprietor which is taken as proprietor’s Capital.

6.)       Realization Concept: - It closely follows the cost concept any change in value of assets is to be recorded only when the business realize it. i.e. either cash has been received or a legal obligation to pay has been assumed by the customer. No Sale can be said to have taken place and no profit can be said to have arisen. It prevents business firm from inflating their profit by recording sale and income that are likely to accrue, i.e. expected income or gain are not recorded.

7.)       Accrual Concept:- Under accrual concept the effect of transaction and other events are recognized on mercantile basic. When they accrue and not as cash or a cash equivalent is received or paid and they are recorded in the accounting record and reported in the financial statements of the periods to which they relate financial statement prepared on the accrual basic inform users not only of past events involving the payment and receipt of  cash but also of obligation to pay cash in the future and of resources that represent cash to be received in the future. For Example:- Mr. Raj buy clothing of Rs. 50000,a paying cash Rs. 20000 and sells at Rs. 60000 of which customer paid only Rs. 40000. So his revenue is Rs. 60000, not Rs. 40000 cash received. Exp. Or Cash is Rs. 50000, not Rs. 20000 cash paid. So the accrual concept based profit is Rs. 10000 (Revenue- Exp.)

8.)       Accounting Period Concept:- This is also called the concept of definite periodicity concept as per going concept on indefinite life of the entity is assumed for a business entity it causes inconvenience to measure performance achieved by the entity in the ordinary causes of business. Therefore, a small but workable fraction of time is chosen out of infinite life cycle of the business entity for measure the performance and loading at the financial position 12 months period is normally adopted for this purpose accounting to this concept accounts should be prepared after every period & not t the end of the life of the entity. Usually this period is one calendar year. In India we follow from 1^st April of a year to 31^st March of the immediately following years. Now a day because of the need of management, final accounts are prepared at shorter intervals of quarter year or in some cases a month such accounts are know a interim account.    

9.)       Matching Concept:- In this concept, all exp. Matched with the revenue of that period should only be taken into consideration. In the financial statements of the organization. If any revenue is recognized that exp. Related to earn that revenue should also be recognized. This concept as it considers the occurrence of exp. And income and do not concentrate on actual inflow or outflow of cash. This leads to adjustment of certain items like prepaid and outstanding expenses, unearned or accrued income.

            It is not necessary that every exp. Identity every income. Some exp. Are directly related to the revenue and some are directly related to sale but rent, salaries etc. are recorded on accrual basis for a particular accounting period. In other words periodicity concept has also been followed while applying matching concept.

 

10.)     Verifiable Objective Evidence Concept:- As per this concept, all accounting must be based on objective evidence. In other words, the transactions recorded should be supported by verifiable documents. Only than auditors can verify information record as true or otherwise. The evidence should not be biased. It is for this reasons that assets are recorded at historical cost and shown thereafter at historical lass depreciation. If the assets are shown on replacement cost basis, the objectivity is lost and it become difficult for auditors to verify such value, however, in resent year replacement cost are used for specific purpose as only they represent relevant costs. For example, to find out intrinsic value of share, we need replacement cost of assets and not the historical cost of the assets. 

ACCOUNTING CONVENTIONS

            The term “Accounting Conventions” refers to the customs or traditions which are used as a guide in the preparation of accounting reports and statements. The conventions are derived by usage and practice. The accountancy bodies of the world may charge any of the convention to improve the quality of accounting information accounting conventions need not have universal application. Following are important accounting conventions in use:

1.)       Convention of consistency:- According to this convention the accounting practices should remain unchanged from one period to another. It requires that working rules once chosen should not be changed arbitrarily and without notice of the effect of change to those who use the accounts. For example, stock should be valued in the same manner every year. Similarly depreciation is charged on fixed assets on the same method year after year. If this assumption is not followed, the fact should be disclosed together with reasons.

            An Enterprise should change its accounting policy in any of the following circumstances only.

(i) To bring the books of accounts in accordance with the issued accounting standard.

(ii)               To compliance with the provision of law.

(iii)              When under changed circumstances it is felt that new method will reflect more true and fair picture in the financial statement.

2.)       Convention of Conservatism:- This is the policy of playing sale game. It takes into consideration all prospective losses but leaves all prospective profits financial statements are usually drawn up on a conservative basis anticipated profit are ignored but anticipated losses are taken into account while drawing the statements following are the examples of the application of the convention of conservatism.

   (i)     Making the provision for doubtful debts and discount on debtors.

   (ii)    Valuation of the stock at cost price or market price which ever is less.

   (iii)   Charging of small capital items, like crockery to revenue.

   (iv)   Showing joint life policy at surrender value as against the actual amount paid.

   (v)    Not providing for discount on creditors.

 

3.)       Convention of Disclosure:- Apart from statutory requirement, good accounting practice also demands that significant information should be disclosed in financial statements. Such disclosures can also be made through footnotes. The purpose of this convention is to communicate all material and relevant facts concerning financial position and results of operations to the users. The contents of balance sheet and profit and loss account are prescribed by law. These are designed to make disclosures of all materials facts compulsory. The practice of appending notes relative to various facts and items which do not find place in accounting statements is in pursuance to the convention of full disclosure of material facts. For example;

            (a)    Contingent liability appearing as a note.

            (b)   Market value of investments appearing as a note.

            The convention of disclosure also applies to events occurring after the balance sheet date and the date on which the financial statement are authorized for issue. Such events include bad debts, destruction of plant and equipment due to natural calamities’, major acquisition of another enterprises, etc. such events are likely to have a substantial influence on the earnings and financial position of the enterprises. Their not-disclosure would affect the ability of the users for evaluations and decisions.

4.)       Convention of Materiality:- According to this conventions, the accountant should attach importance to material detail and ignore insignificant details in the financial statement. In materiality principle, all the items having significant economics effect on the business of the enterprises should be disclosed in the financial statement.

            The term materiality is the subjective term. It is on the judgment, common sense and discretion of the accountant that which item is material and which is not. For example stationery purchased by the organization though not used fully in the concept. Similarly depreciation small items like books, calculator is taken as 100% in the year if purchase through used by company for more than one year. This is because the amount of books or calculator is very small to be shown in the balance sheet. It is the assets of the company.

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Pollution

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http://en.wikipedia.org/wiki/Pollution
http://www.greenstudentu.com/encyclopedia/pollution
http://www.botany.uwc.ac.za/sci_ed/grade10/ecology/conservation/poll.htm
http://readanddigest.com/what-are-different-types-of-pollution/

Global warming
http://en.wikipedia.org/wiki/Global_warming

Natural disasters
https://en.wikipedia.org/wiki/Natural_disaster

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e-Governance

 The word “electronic” in the term e-Governance implies technology driven governance. E-Governance is the application of Information and Communication Technology (ICT) for delivering government services, exchange of information communication transactions, integration of various stand-alone systems and services between Government-to-Citizens (G2C), Government-to-Business(G2B),Government-to-Government( G2G) as well as back office processes and interactions within the entire government frame work. Through the e-Governance, the government services will be made available to the citizens in a convenient, efficient and transparent manner. The three main target groups that can be distinguished in governance concepts are Government, citizens and businesses/interest groups. In eGovernance there are no distinct boundaries.

Generally four basic models are available-Government to Customer (Citizen), Government to Employees, Government to Government and Government to Business;

e-Governance is a form of public administration making “use of information and communication technologies (ICT) to enhance the access and delivery of government services to benefit citizens, employees and management of urban local bodies.” It aims to “help strengthen government’s drive toward effective governance and increase transparency to better manage social and economic resources for development.”

Government of India (GoI) has launched a National e-Governance Plan (NeGP). NeGP intends to institute and enable mechanisms to improve the system of governance and thus provide better services to the citizens by effective use of ICT.

The key objectives of the e-Governance initiative are to:

§  Provide single window system for delivery of services and information to citizens.

§  Provide integrated and simplified services to citizens on any time, anywhere basis.

§  Decentralize service delivery and improve accessibility of information to citizens.

§  Increase the efficiency and productivity of ULBs.

§  Re-engineer processes for better service delivery.

§  Integrate data and services of various departments.

§  Enhance  efficient inter-departmental coordination.

§  Provide timely and reliable management information relating to municipal administration for effective decision-making.

§  Adopt a standards-based approach to enable integration with other related applications.

Example: e-Governance in Municipalities

The broad aim for implementing e-Governance in municipalities is to:

• Focus on clearly identified citizen services that would be covered with clearly laid down service levels and outcomes to be achieved.

§  Improve efficiency and effectiveness in interaction between local  government and its citizens and other stakeholders.

§  Improve quality of internal local government operations and management information systems to support and stimulate good governance.

§  Bring about transparency and accountability in urban local body operations.

§  Help improve reach of the delivery of services to citizens.

  Following services are to be covered under this reform:

• Basic citizen services: Birth and death registration and health programs.
• Revenue earning services: Property tax and licenses.
• Development services: Water supply and other utilities, building plan approval.
• Efficiency improvement services: Procurement and monitoring of projects.
• Back office improvements: Accounting and personnel management system.
• Monitoring:  Citizen grievance redressal.

E-Governance is the future, many countries are looking forward to for a corruption free government. E-government is one-way communication protocol whereas E-governance is two-way communication protocol. The essence of E-governance is to reach the beneficiary and ensure that the services intended to reach the desired individual has been met with. There should be an auto-response system to support the essence of E-governance, whereby the Government realizes the efficacy of its governance. E-governance is by the governed, for the governed and of the governed.

Establishing the identity of the end beneficiary is a true challenge in all citizen-centric services. Statistical information published by governments and world bodies do not always reveal the facts. Best form of E-governance cuts down on unwanted interference of too many layers while delivering governmental services. It depends on good infrastructural setup with the support of local processes and parameters for governments to reach their citizens or end beneficiaries. Budget for planning, development and growth can be derived from well laid out E-governance systems.

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