Agri business Management terms and definitions

Agri-Business - The term Agri-business is derived from the combination of "Agriculture" and "Business". While theoretically different, the two are interconnected in practice. Agriculture refers to the science and practice of activities related to the production, processing, marketing, distribution, and trade of food, feed, fibre, and associated goods. It is an economic activity aimed at fulfilling basic human needs such as food, fodder, and fibre.

Assets - Assets means any item of economic value owned by an individual or corporation that can provide future ecnomic benifits.  For EX  - Land, building, machinery, furniture

Bargaining-  Bargaining is the process of cajoling, debating, discussing, and even threating so as to arrive at an amicable agreement for those being represented.

Break even point -   The break-even point calculates how much cash a company must generate to break even with their startup costs.

Career - Career is the sequence of positions held by a person during the course of a lifetime. People pursue careers to satisy deeply individuals need.

Cost control -     According to the Institute of cost and Works Accounting of India, cost control means The act of power of controlloing or regulating or dominating or commanding costs through the application of management tools and techniques to performance of any operation to most predetermined objectives of quality, quantity value and time.

Contact farming - An aggerement between farenrs and the organized sector to source their equirements for production, retailing, processing, or export purposes.

Collective bargaining - Collective bargaining is a process of negotiation between employers and group of employees aimed at reaching agreements to regulate working conditions. The basic objective of collective bargaining is to arrive at an agreement on wages and other consitions of employment. Both the employer and employees may begin the process with divergent views but  ultimately try to reach a compromise, making some sacrifices. As soon as a compromise is reached, the terms of agreement are put into operation.

Career Planning -    Career planning is the process by which one selects career goals and path to these goals. The major focus of career planning is on assisting the employees achieve a better match between personal goals and opportunities that are realistically available in organisation.

Capital -   Cash or goods owned by the promoter of the business to generate income by investing in the business.

Distribution channels - Distribution channels in market are a set of independent organization networked together to move the product from firm to consumer. In distribution channels network, products has to move longer distance so the firm has to commit more resource.

Dividend policies - Dividend policies are categorized into four type viz., cash dividend, bond dividend, property dividend and stock dividend.

Diversification  - Diversification means raising more than one crop or pursuing more than one enterprise on a farm.

Financial management - Financial management means to collect finance for the company at low cost and use this collected finance for earning maximum profits. IN other words financial management means to plan and control the finance of the company. Financial management means planning, organizing, directing , controlling the financial activities such as procurement and utilization of funds of the enterprise. It means applying general management principles of financial resources of the eneterprise.

Horizontal integration - When one firm assumes the functions of another firm at the same level in the supply chain it is called horizontal integration.

Inputs- Products required by the farmers for producing crops, raising livestock, and other allied enterprises.

Impulse Goods - Goods which are purchased by consumer on an impulse immediately without carrying out any search effort or any planning. For example chocolates, wafers.

Job Specification -  Job specification is a written statement of the minimum qualifications and traits that a person needs in order to perform the duties and undertake the responsibilities of a particular position. Specifications are developed as part of job analysis process.

Leverage -  Leverage is the use of various financial instruments or borrowed capital such as margin to increase the potential return of an investment.

Liability - An obligation (either money that must be paid or services that must be performed) that legally binds an individual company to settle a debt.

 Labour - Human effort is needed for the conversion of materials into finished goods, and such human effort is called labor.  Labour can be direct as well as indirect.

Managerial Economics - Managerial economics can be defined as integration of economic theory with business practices so as to ease decision making and future planning by management. It is sometimes referred to as business economics.

Market research - Market research may be defined as the function that links the consumer, customer and public to the marketer through information i,e the information used to identify and define marketing oppurtunities and problems , generate refine and evaluate actions  - Monitor marketing performance and improves understanding of marketing as a process. It is a systematic plan analysis, model building and fact finding for the purpose of important decisons making and control in marketing of goods and services.

Market potential -  Market potential is the maximum limit of market demand which can be achieved in a particular marketing environment corresponding to a particular level of marketing expenditure.

Market segmentation -  Market segmentation is a process of dividing customers into different group of segments having similar wants. By doing so, each can be targeted and reached with a distinct marketing mix. Segmentation helps to satisfy customers needs more closely and thereby create competitive advanatge for the organization. Segmentation process helps to identify new oppurtunities in terms of products and markets.

New Product development - The process of new product development involves the following steps like generating new product ideas, concept testing, business and market analysis, development of the product prototype testing, test marketing and commercialization.

Net profit ratio -     Net profit ratio calculates the amount of profit after taxes and all expenses have been deducted from net sales.

Staple Goods -  Goods which are purchased by consumers regularly such as toothpaste and soaps.

Processing sector - Processing of raw agricultural commodities to produce value-

added products.

Profit Sharing -  Profit sharing refers to various incentive plans introduced by businesses that provide direct or indirect payments to employees that depend on companys profitability in addition to employeees regular salary and bonsuses.  In publicly traded companies these plans typically amount of allocation to share to employees.  Profit sharing is a scheme whereby employers undertake to pay a particular portion of net profits to their employees on compliance with certain service conditions and qualifications. The purpose of introducing profit sharing schemes has been mainly to strengthen the loyality of employees to the firm by offering them an annual bonus provided they are on the service rolls of the firm for a definite period. The share of profit of the worker may be given in cash or in the form of shares in the company. These shares are caleld bonus shares. In India the share of the worker is governed by payment of Bonus act.

Plant Level Union -  Plant level union is one which all the workers in a factory or establishment join hands to protect their interests.

Payback Period - The payback period refers to the time required for a firm to recover its initial investment in a project. It is measured in years, months, or days, and indicates how quickly an investment generates enough cash flow to cover its cost.

Ratio - The ratio illustrates the relationship between the two related variables.

Tiny Enterprise - All small-scale units with an investment limit in plant and machinery up to ₹25 lakhs, irrespective of the location of the unit, are categorized as Tiny Enterprises.

Values - Values are things that possess intrinsic worth due to their usefulness or importance. They represent the principles, standards, or qualities that are considered worthwhile or desirable by an individual or group.

Women Enterprises - Women enterprises are those scale units, where one or more women entrepreneurs have not less than 51% of financial holding. Such units are given more concessions and Encouragement.

Sanitary and Phyto-sanitary (SPS) measures - These are the legal standards adopted by countries in international trade for food safety and the protection of human, animal, and plant life and health developed on appropriate scientific and transparent procedures. Appropriate levels of SPS protection are determined by procedures and criteria for assessment of risk spelled out in the SPS Agreement.

Trade distortions- These are deviations in total trade in terms of prices, total production, or total quantities bought and sold relative to what would have been the case in a perfectly competitive market. These distortions are a result of factors such as domestic support, export subsidies, and import barriers (customs duty or tariffs, quantitative restrictions, import quotas, licensing, or canalizing) that affect market access.

 

FPO - A Farmer Producer Organization is the phenomenon of collectivization of farmers to improve their bargaining power to access financial and non-financial inputs and services, and technologies, reduce transaction costs, tap high-value markets and enter into partnerships with private and public entities on more equitable terms.

 

PKVY - Paramaparagat Krishi Vikas Yojana

Producer Institution - Producer Institution means a Producer Company or any other institution (whether incorporated or not) having only producer(s) or Producer Company (ies) as its members, having any of the objects of a Producer Company and which agrees to make use of the services of the Producer Company (ies) as provided in its Articles of Association

Diagnostic Study - A diagnostic study is to be conducted by the RI in the selected cluster area. The Diagnostic Study is conducted to assess the preliminary situation of the farmers and the level of agriculture in the area. The study will also help in identifying the potential interventions required and understanding the specific project implementation context.

NABARD - The National Bank for Agriculture and Rural Development (NABARD) is playing a great role in facilitating the growth of FPOs.

Resource Mobilization - Before initiating the operations of an FPO all required resources should be mobilized by the RI with the help of FPO representatives and the board of directors. Financial, human (staff), technical and physical resources should be developed during this particular step. Based on the business plan the RI should liaise with various financing agencies and mobilize resources for hiring/ purchasing and developing various resources.

Business Ethics - They are the morals, rules, and principles followed by a business enterprise.

Corporate Governance - It is a system or set of processes to ensure that company is managed to suit the best interest of all stakeholders.

Corporate Social Responsibility - Social Responsibility of business means the obligation of business enterprise to make decisions and to take steps for the well-being of all stakeholders and society while focusing on its own objective.

Ethical Dilemma - They are conflicting decision situations that have no clear-cut guidelines either in law or in religion and which require morals and ethics to come into play.

Ethics - They refer to norms, morals, principles, and ideals prevailing in a group or society. They are some standardized form of conduct or behavior.

Whistle Blower - A whistle-blower is a person who publically complains about concealed misconduct on the part of an organization or body of people, usually from within that same organization.

Agriculture - Farming, Cultivation, Crop growing.

Agribusiness - Is a generic term for the various businesses involved in food production, seed supply, agrichemicals, farm machinery, wholesale and distribution, processing, marketing, and retail sales.

Intellectual property - It is any creative work or invention considered to be the property of its creator. Often, intellectual property rights are recognized and protected under the corresponding fields of law.

Liberalization - It is a very broad term that usually refers to fewer government regulations and restrictions to encourage faster growth.

Policy - A principle or rule to guide decisions and achieve desired outcomes.

Regulation - A principle, rule, or law designed to control or govern the conduct of the persons or companies.

Competition - Rivalry, opposition, struggle.

Inefficiency - Incompetence, wastefulness.

Infrastructure - Communications, road and rail network, transportation.

Intervention - Interference, involvement, intercession.

Manipulation - Management, handling, exploitation.

Security - Safekeeping, protection, and safety measures.

Access - Right to entry, entrance, admittance.

Barrier - Wall, blockade, hurdle.

Geographical indication - Environmental, ecological.

Incentive - Inducement, motivation.

Intellectual property right - Recognition to property emanating from intellect.

Patent - Exclusive rights given to invention.

Tariff - Duty, tax, levy.

Adult - a person who has completed his 18th year of age.

Agreement - Every promise and set of promises, form consideration for each other.

Civil Law - A branch of continental law that is the general part of private law.

Consensus ad-idem - Parties agreeing upon the same thing in the same sense.

Contract - An agreement enforceable by law.

Corporate Governance - Managing an organization

Corporate Veil- Organizational status

Criminal Law- The body of rules that defines conduct that is not allowed because it is held to threaten, harm, or endanger the safety and welfare of people, and that sets out the punishment to be imposed on people who do not obey these laws.

Dishonor of Instrument - When the instrument does not get processed on account of default on the part of the drawer or acceptor or on account of any other technical reasons.

Express Contract - An agreement made in writing or by word of mouth.

Hundi -  Hundi is a bill of exchange, which is prevalently used in India.

Incorporation - Registration

Legal system - A legal system consists of certain basic principles and values, a set of operational norms including rights and duties of the citizens spelled out in the laws - central, state, and local, institutional structures for the enforcement of those laws, and a cadre of legal personnel, endowed with the responsibility of administering the system

Mercantile or Business Law - The body of law that governs mercantile or business and commercial transactions.

Noting - It is the process of recording the reasons for dishonor by the notary

Obligation - An undertaking to do or to abstain from doing some definite act.

Post-Dated Cheque - When the date of the cheque is after the date of issue then it is called a post-dated cheque. The same is valid after the date mentioned in the cheque

Precincts - Precincts mean a space enclosed by a wall. For any `premises' to be categorized as factory two conditions must be fulfilled  - Ten or more persons are employed in the premises using power or be employed not using power and twenty or more workers must be employed not using power.

Premises - Premises means open land or land with a building or building alone. Therefore salt works where the process of converting seawater into salt is carried onin the open comes within `premises' as defined in the Act

Procedural Law - The rules by which a court hears and determines what happens in civil lawsuits, or criminal or administrative proceedings.

Promise - An accepted proposal.

Protest - It is the formal certificate issued by the notary as an acknowledgment of noting.

Quorum - Minimum number of persons

Stale Cheque - The cheque becomes stale when six months expire from the date mentioned in the cheque. Once the cheque becomes stale, then it is not valid and cannot be enforceable.

Statute - A statute is a formal written enactment of a legislative authority that governs a state, city, or county.

Substantive Law - The statutory or written law that defines rights and duties, such as crimes and punishments (in criminal law), civil rights, and responsibilities in civil law.

Unenforceable Agreement - An agreement which, though valid, cannot be enforced due to some technical defect.

Unilateral Contracts - A contract in which only one party has still to fulfill his obligation, while the other party has already fulfilled his own at the time of theformation of the contract itself.

Confiscation of goods  - It means taking ownership of goods

Cognizable Offence  - It means an Offence involving arresting a person without the issue of a

warrant

Culpable mental state  - It means the Existence of a culpable motive of the customer.

Black Marketing  - Hoarding goods to create artificial demand.

Bill  - Bill issued by the traders as prescribed.

Commission Agent  - A person who on behalf of his principal trader and in consideration of a commission buys agricultural produce and makes the payment, keeps it in his custody, and delivers it to the principal trader in due course or who receives and takes in his custody agricultural produce sent for sale within the market area or from outside the market area, sells the same and collects payment thereof from the buyer and remits the sale proceeds to his principal trader.

Contract Farming Producer  - Individual agriculturist or association of agriculturists, under a written agreement with another person called “Contract Farming Sponsor” to the effect that his farm produces shall be purchased as specified in the agreement.

Agreement  - The agreement made for contract farming between Contract Farming Sponsor and Contract Farming Producer

Market Charges  - Includes charges of commission, brokerage, weighing, measuring, hamali,

cleaning, drying, sieving, stitching, stacking, hiring, gunny bags, stamping, bagging, storing,

warehousing, grading, surveying, transporting, and processing.

Market Committee  - The Agricultural Produce Market Committee established under this

Act” means a trader, a commission agent, buyer, Hamal, Processor, a stockiest, a trader, and

such other person as may be declared under the rules or bye-laws to be a market functionary.

Produce  - All produce and commodities, whether processed or unprocessed, of agriculture,

horticulture, apiculture, sericulture, livestock and products of livestock, flesh, and skin of

animals, forest produce, etc. as are specified in the schedule or declared by the Government

by notification from time to time and also includes a mixture of two or more than two such

products.

Monopolistic trade practice - Monopolistic trade practice is that which represents an abuse

of market power in the production and marketing of goods and services by eliminating

potential competitors from the market and taking advantage of the control over the market by

charging unreasonably high prices, preventing or reducing competition, limiting technical

development, deteriorating product quality or by adopting unfair or deceptive trade practices.

Unfair Trade Practice  - Using various deceptive, fraudulent, or unethical methods to obtain

business, unfair trade practices include misrepresentation, false advertising, tied selling, and

other acts that are declared unlawful by statute. It can also be referred to as deceptive trade

practices.

Restrictive Trade Practice  - Maximise profits and market power, traders often attempt to

indulge in certain trade practices which tend to obstruct the flow of capital into the stream of

production. It may also bring manipulation of prices or conditions of delivery or affect the

flow of supplies in the market so as to impose unjustified costs.

Adulterant   - Adulterant means any material which is or could be

employed for making the food unsafe or sub-standard,

misbranded, or containing extraneousmatter.

Extraneous Matter   - Means any matter contained in an article of food which may be carried from the raw materials, packaging materials, or process systems used for its manufacture or which is added to it, but such matter does not render such article of food unsafe.

 

Food   - Means any substance, whether processed, partially processed, or unprocessed, which is intended forhuman consumption and includes primary food to the extent defined in the clause, Genetically modifiedor engineered food or food containing such ingredients, infant food, packaged drinking water, alcoholic drink, chewing gum, and any substance, including water used into the food during its manufacture, preparation or treatment but does not include any animal feed, live animals unless they are prepared or processed for placing on the market for human consumption, plants prior to harvesting, drugs and medicinal products, cosmetics, narcotic or psychotropic substances.

Food Additive   - Means any substance not normally consumed as a food by itself of used as a typical ingredient of the food, whether or not it has nutritive value, the intentional addition of which to food for a technological (including organoleptic) purpose in the manufacture, processing, preparation, treatment, packing, packaging, transport or holdingof such food results,or may be reasonably expected to result (directly or indirectly), in it or its by-products becoming a component of or otherwise affecting the characteristics of such food but does not include” contaminants” or substances added to foodfor maintaining or improving nutritional qualities.

Food Authority   - Food Authority means the Food Safety and Standards Authority of India, established under Section 4 of the Act.

Food Business Operator   - Food Business Operator in relation to food business means a person by whom the business is carried on or owned and is responsible for ensuring the compliance of this Act, rules, and regulations made thereunder.

Food Hygiene   - All conditions and measures necessary to ensure the safety and suitability of food at all stages of the Food Chain.

Food Safety   - Food Safety means assurance that food is acceptable for human consumption according toits intended use

Food Safety Management System   - Food Safety Management System means the adoption of Good Manufacturing Practices, Good Hygienic Practices, Hazard Analysis and Critical Control Points, and such other practices as may be specified by regulation, for the food business.

 

Food Safety Officer   - Means and officer appointed under Section 37of the Act.

Good Agricultural Practices   - Practices of primary food producers (such as farmers and fishermen) that are necessary to produce safe and wholesome agricultural food products conforming to food laws and regulations.

 

Good Manufacturing Practices   - Conformity with codes of practices, industry standards, regulations, and laws concerning the production,processing, handling, labelling, and sale of foods declared by industry, local, state, national, and international bodies to protect the public from illness. Product adulteration and fraud

Hazard   - Hazard means a biological, chemical, or physical agent in, or condition of, food with the potential to cause an adverse health effect.

Manufacturer   - Manufacturer means a person engaged in the business of manufacturing any article of food for sale and includes any person who obtains such article from another person and packs and labels it for sale or only labels it for such purposes.

Notification   - Notification means a notification published in the Official Gazette

Primary Food   - Primary Food means an article of food, being a produce of agriculture or horticulture or animal husbandry and dairying or aquaculture in its natural form, resulting from the growing, raising, cultivation, picking, harvesting, collection or catching in the hands of a person other than a farmer or fisherman.

Risk   - Risk in relation to any article of food, means the probability of an adverse effect on the health of consumers of such food and the severity of that effect, consequential to a food hazard.

Sample   - Sample means a sample of any article of food taken under the provisions of this Act or any rulesand regulations made there under.

Standard   - Standard in relation to any article of food, means the standards notified by the Food Authority.

Tribunal   - Tribunal means the Food Safety Appellate Tribunal, established under Section 70 of the Act.

Intellectual Property  - Intellectual Property refers to creations that are represented in a

physical or recorded form.

Secret  - Secret in the sense that it is not, as a body or in the precise configuration and assembly of its components known among or readily accessible to persons within the circles that normally deal with the kind of information in question.

Undisclosed information  - Undisclosed information generally known as trade secret / confidential information includes formulas, patterns, compilations, programmes, devices, methods, techniques, or processes.

Article  - Any kind of movable property including any goods and stores consigned from

one party to another as a shipment and covered by a bill of entry of customs, shipping or

airway bill, and/ or invoice in the course of international trade.

Bio-control Agent  - Any biological agent such as a parasite, predator, parasitoid, microbial organism, or self-replicating entity that is used for the control of pests.

Consignment  - Quantity of seeds, plants, and plant products or any regulated article consigned from one party to other at any one-time shipment and covered by a phytosanitary certificate, bill of entry of customs, shipping/airway bill, or invoice.

Import permit  - Official document authorizing the importation of a consignment in accordance with specified phytosanitary requirements.

Issuing authority  - An authority as envisaged under Schedule-IV of this order or duly notified by the Central Government from time to time either generally or specifically for issuance of import permit.

Pest risk analysis  - The process of evaluating biological or other scientific and economic evidence to determine whether a pest should be regulated and strength of any phytosanitary measures to be taken against it.

Phytosanitary certificate  - A certificate issued in the model format prescribed under the International Plant Protection Convention of the Food & Agricultural Organization and issued by an authorized officer at the country of origin of consignment or re-export.

Point of entry  - Any seaport, airport, or land-border check-post or rail station, river port, foreign post office, courier terminal, container freight station, or inland container depot notified as specified in Schedule-I or Schedule-II or Schedule-III as the case may be.

Post-entry quarantine  - Growing of imported plants in confinement for a specified period of time in a glass house, screen house, poly house, or any other facility, or isolated field or an off-shore island that is established in accordance with guidelines/standards and is duly approved and certified by an inspection authority notified under this order.

Quarantine pest- means a pest of potential economic importance to the area endangered thereby and not yet present there, or present but not widely distributed and being officially controlled.

Diminishing returns   - As the consumption/production process iscontinued, the successive units give/yield lesser and lesser satisfaction/productivity.

Economic policy   - Policy of the government to influence the macroeconomic environment of the country to achieve desired goals like growth, stability, distributive justice, etc.

Equilibrium   - It is a state of rest or no change from where there is no tendency for movement.

General equilibrium   - Equilibrium takes into account the effects of all changes simultaneously.

 

Incrementalism   - When the independent variable changes significantly in a big way, we need to modify the idea of marginal product/revenue/  cost, etc. to incremental product/revenue/ cost respectively. It represents a change in respective dependent magnitude as a result of a ‘big’ change in the independent variable input.

Managerial economics   - It is the study of economic theories, concepts, logic, and tools of analysis that are used in analyzing business conditions to find an appropriate solution to business problems.

Marginalism   - Measuring the change in the dependent variable (cost, revenue, or profits) with reference to a unit change in the independent variable.

Opportunity cost   - The cost associated with the next best alternative foregone.

Partial equilibrium   - Arriving at equilibrium, assuming that other things remain constant.

Ceteris paribus   - Other things being equal, as when all but one independent variable are held constant so as to study the influence of the remaining independent variable on the dependent variables.

Change in demand   - A shift in the whole demand curve brought out due to changes in factors other than the price of that commodity.

Demand   - The entire relationship between the quantityof a commodity that buyers wish to purchase per period of time and the price of that commodity, other things being equal.

Derived demand   - The demand for a factor of production that results from the demand for the products it is used to make.

Diminishing Marginal Utility   - The decline in the extra utility received from consuming one additional unit of a commodity.

Indifference curve   - A curve showing all combinations of commodities that yield equal satisfaction to the household.

Marginal utility   - The change in satisfaction resultingfrom consuming one additional unit of a commodity.

Hicksian Substitution Effect   - The change in the quantity demanded of commodity results from a change in its price while holding real income constant by keeping the consumer on the same indifference curve before and after the price change.

Income Effect   - The increase in the quantity purchased of a commodity with a given money income when the commodity’s price falls.

Indifference Curve   - Shows the various combinations of two commodities that yield equal utility or satisfaction to the consumer.

 

Marginal Utility   - The change in the total utility per unit changes in the quantity of a commodity consumed per unit of time.

Slutsky Substitution Effect   - The change in the quantity demanded of acommodity resulting from a change in its price while keeping real income constant in the sense that the consumer could if he or she wanted, purchase the same bundle of goods after the price change as the consumer did before the price change.

Substitution Effect   - When prices drop consumers buy more than the usual at the expense of a different product.

Total Utility   - The overall satisfaction that an individualreceives from consuming a specified quantity of a commodity per unit of time.

Utility   - The property of a commodity that satisfies a want or need of a consumer.

Cost of Production   - Expenses incurred on the factors of production are known as costs of production.

Cost Plus Pricing   - Under this method, the price is set to cover costs and a certain predetermined percentage of profit.

External Economies   - Such economies arise from the expansion in the size of an industry, involving an increase in the number and size of the firms engaged in it.

Internal Economies   - Such economies arise from the expansion of the size of a particular firm, which is available to only that firm.

Limit Pricing   - A price that reduces or eliminates the entry of new firms.

Marginal Cost   - It is the addition to the cost due to the production of one more unit of output.

Marginal Cost Pricing   - Here, prices are determined on the basis of marginal costs, ignoring fixed costs.

Abnormal Profits   - The profits which are over and above the average total cost are known as abnormal profits.

Bilateral Monopoly   - It is a market consisting of a single seller (monopolist) and also a single buyer (monopsonist).

Cost Elasticity   - It refers to the percentage change in the cost as a result of a percentage change in output

Economies and Diseconomies   - As the plant size increases the LAC of Scale decreases due to economies of scale. After that plant size becomes optimal where the LAC reaches the minimum. If the plant size further increases, the LAC increases because Equilibrium Condition of diseconomies of scale. Due to economies and diseconomies of scale, the LAC is of ‘U’ shape.

Excess Capacity   - It refers to the difference between the ideal output level corresponding to the minimum long-run average cost and the actually attained output level in the long-run equilibrium.

Firm   - It is a production unit under one management.

Firm’s Equilibrium   - The firm is in equilibrium where it attains the maximum profit for producing a product.

First Degree Price   - In this case, the monopolist negotiates with Discrimination each buyer and charges him the maximum price which he is willing to pay under thethreat of denying the selling of any quantity to him.

Industry   - It is a collection of firms producing a homogenous product.

Industry’s Equilibrium - The aggregate supply of a commodity for the industry which is obtained by horizontal summation of the supply of individual firms, is equal to the market demand for the commodity.

Market Equilibrium   - Market equilibrium of a commodity is achieved when the aggregate demand is equal to the aggregated supply of the commodity in the market.

Normal Profits   - The profits which just cover all costs are called normal profits.

Perfect Competition   - In addition to the above characteristics, a perfectly competitive market has two more assumptions – perfect mobility of factors of production and perfect knowledge of the market to the buyers and sellers.

Product Group   - It is used to denote a collection of firms producing closely related products which are good substitutes.

Pure Competition   - The pure competitive market has the characteristics of a large number of sellers and buyers, product homogeneity, and free entry and exit of firms.

Accountancy   - The science of measurement of wealth. It is the systematic knowledge of accounting.

Accounting Conventions   - Methods or procedures used in accounting.

Accounting Period   - A period of twelve months for which the accounts are usually kept.

Accounting Principles   - The methods or procedures used in accounting for events reported in the financial statements.

Accounting Standards   - Accounting Standards are defined as written statements of accounting rules and guidelines or practices for preparing uniform and consistent financial statements.

Accounting   - Process of identifying, measuring, recording, classifying, summarizing, and communicating business transactions and events in terms of money.

Book-keeping   - Systematic recording of business transactions in the books of account.

Cost Accounting   - A branch of accounting is concerned with the measurement and control of cost.

Financial Accounting   - It is primarily concerned with record keeping directed towards the preparation of financial statements and other accounting reports for external users.

 

Management Accounting   - It is concerned with the supply of information that is useful to the management in planning, controlling, and decision making within the organization.

 

Transaction   - Transfer of money between the two business

 

units.

 

Balance   - The difference between the total of debits and the

total of credits appearing in an account. It signifies

the net effect of the transactions posted to that

account.

 

Cash Book   - A special journal is used for recording all cash

 

receipts and cash payments.

 

Cash Discount   - An allowance is given by the creditor to the debtor

 

for prompt payment.

 

Cheque   - An instrument used for withdrawing money from the

 

bank.

 

Double entry system   - Every business transaction has two aspects since

one party (or account) gives the benefit and the other

party receives the benefit at the same time. In short,

every transaction is divided into two accounts. One

account is debited and some other account is to be

credited in order to have a complete record of the

business transaction.

Journal Entry   - An entry made in the journal.

Journal   - A book of original entries where a chronological

 

record of transactions is first made.

 

Journalising   - The process of recording the business in the journal.

Ledger   - A book that contains all accounts affected by various

 

transactions in business.

 

Opening Entry   - A journal entry passed at the beginning of the year

to bring forward the previous year’s assets and

liabilities.

 

Posting   - A process of entering the transactions into ‘ledger’

 

accounts.

 

Single entry system   - The system which does not follow the principles

of the Double Entry System is called Single Entry

System.

 

Trial Balance   - A statement of balances of various ledger accounts

prepared to test the arithmetical accuracy of the

double-entry.

 

Capital Expenditure   - An expenditure that results in the acquisition

of a fixed asset, or addition to a fixed asset,

or an improvement in the earning capacity of

the business.

 

Closing Stock   - Goods remain unsold at the end of the

 

accounting year.

 

Cost of Conversion   - Expenses incurred in the factory (for

converting raw materials into finished

goods).

 

Cost of Goods Sold   - Difference between the cost of goods

available for sale and the cost of goods in

stock.

 

Cost of Production   - It is the cost of goods produced that includes

the cost of raw materials consumed and all

manufacturing expenses.

 

Current Assets   - Assets are likely to be realized within a

 

period of one year.

 

Current Cost Accounting

Method (CCA)   - Provide more realistic book values by

valuing assets at the current replacement

cost, rather than the amount actually paid for

them.

 

Current Liabilities   - Liabilities are likely to be paid within one

 

year.

 

Current Purchasing Power   - Where financial statements are adjusted with

Method (CPP) the help of a recognised general price index.

Deferred Revenue   - A revenue expenditure that involves a heavy

Expenditure amount and the benefit of which is likely to

 

spread over two-three years.

 

Depreciation   - Permanent and gradual diminution in value

 

of a fixed asset.

 

Direct Expenses   - Expenses are incurred on the goods

purchased till they are brought to the place

of business.

 

Fictitious Assets   - Expenses and losses are not yet written off

 

and shown as assets on the Balance Sheet. Preparation of Accounts

 

Final Accounts   - Financial statements are prepared at the end

of the accounting period for ascertaining the

profit or loss and the financial position of the

business. Profit and Loss Account and the

Balance Sheet.

 

Fixed Assets   - Assets acquired for use in the business for a

 

long period.

 

Gross Profit   - Excess of sales revenue over the cost of

 

goods sold.

 

Indirect Expenses   - All expenses are other than direct expenses.

These include expenses incurred in

connection with general administration,

financial matters, and selling and distribution

of goods.

 

Intangible Assets   - Assets in the form of rights which cannot be

seen or touched such as goodwill, patents,

etc.

 

Net Profit   - Excess of gross profit and other incomes

over the indirect expenses and losses in the

business.

 

Non-Current Liabilities   - Liabilities are payable after a long time.

They are also called Long-term liabilities.

Obsolescence   - Becoming out of date is a cause for

depreciation in the value of the asset.

Opening stock   - The stock of goods as at the beginning of the

 

accounting year.

 

Owner’s Capital   - The claim of owners against the assets of the

business. It is also called owner’s equity and

is equal to the excess of assets over outside

liabilities.

 

Residual Value Salvage value   - The expected realizable amount, when the

asset is sold out at the end of its useful life.

Revenue Expenditure   - An expenditure the benefit of which is

 

limited to one year.

 

Revenue Receipt   - Receipts on account of goods sold or services

 

provided.

 

Scrap   - Waste material arises in the course of

 

manufacture.

 

Tangible Assets   - Assets that have a physical form and can

be seen and touched such as buildings,

machinery, etc.

 

Work-in-Progress   - Goods in respect of which some work still

 

remain to be done.

 

Written Down Value   - Book value of an asset after deducting

depreciation from the original cost. It is also

called depreciated value.

Appropriation of Profits   - Distribution of profits.

Capital Employed   - Long-term funds include shareholders’ funds

and debt funds minus fictitious assets.

Capital Reserve   - A reserve is created out of capital profits

such as a premium on the issue of shares

and debentures, profits made prior to

incorporation, excess amount realized on the

sale of fixed assets over its original cost, etc.

Cash Profit   - Net profit plus non-cash charges debited to

 

Profit and Loss Account.

 

Contingent Liability   - A liability that depends upon the happening

of a certain event such as arrears of dividend

on cumulative preference shares.

 

Corporate Dividend Tax   - Tax payable by companies on the amount of

 

dividends paid to shareholders.

 

Fictitious Assets   - Unwritten off amount of expenses like

preliminary expenses, discount allowed on

the issue of shares, and debentures.

Gross Block   - Total amount (Gross Value) of the fixed asset

before deducting depreciation thereon.

Interim Dividend   - Dividends are declared and paid during the

course of an accounting year in anticipation

of the profits of that year.

 

Liquid Assets   - Assets are convertible into cash at a short

notice or immediately without incurring

much loss.

 

Net Worth   - Shareholders funds i.e., equity share capital

plus preference share capital plus reserves

and surplus minus fictitious assets.

 

Operating Profit   - Gross profit minus administrative, selling,

and distributing expenses and depreciation.

Preliminary Expenses   - Expenses incurred in connection with the

formation and registration of a company.

 

Current – liabilities   - Liabilities are payable within one year.

Current Assets   - Those assets are converted into cash within a

 

period of one year.

 

Fund Flow Statement   - The statement shows the sources (inflows)

and uses (outflows) of funds between two

balance sheet dates.

 

Flow of Funds   - Movement or change in the net working

 

capital.

 

Funds   - Cash or net working capital.

Gross Working Capital   - Total of current assets.

Net Working Capital   - Excess of current assets over current

 

liabilities.

 

Non-Current Items   - Long-term assets and long-term liabilities.

Working Capital   - That part of the capital which is required

for running the operations of a business is

distinguished from capital invested in fixed

assets.

 

Accounting Ratio   - The ratio of accounting figures is presented

 

in financial statements.

 

Capital Employed   - Long-term funds include owners’ capital

 

and borrowed capital.

 

Capital Structure Financial mix plan of debt and equity.

Common Size Balance Sheet   - Statement of assets and liabilities showing

each item as a ratio (percentage) of the

aggregate value of assets/1iabilities.

Common Size Income   - Statement of income and expenditure

Statement showing each item as a ratio (percentage)

 

of net sales.

 

Comparative Balance Sheet   - Statement presenting changes in the value

of assets, liabilities, and capital investment

between two Balance Sheet dates.

Comparative Income   - Statement presenting changes in income

Statement and expenditure over successive years.

Current – liabilities   - Liabilities that are payable within one

 

year.

 

Current Assets   - Cash and other assets that are converted

into cash or consumed in the production of

goods in the normal course of business.

Financial Ratios   - Ratios that indicate the financial soundness

of the firm. It is also called the leverage

ratio.

 

Financial Statements   - Annual statements of assets and liabilities

(Balance sheet) of income and expenditure

(Profit and Loss account).

 

Flow of funds   - Movement or change in the net working

 

capital.

 

Funds   - Cash or net working capital.

Gross Working Capital   - Total of current assets.

Net Working Capital   - Excess of current assets over current

 

liabilities.

 

Non-Current Items   - Long-term assets and long-term liabilities.

Owners’ Equity   - Shareholders’ funds including share

capital (both preference and equity) P & L

A/c balance, and reserves minus fictitious

assets. It is also called net worth.

 

Ratio Analysis   - Computing, determining, and explaining

the relationship between the component

items of financial statements in terms of

ratios.

 

Ratio   - A measure of one value or number in

 

relation to another.

 

Credit   - The granting of a loan and the creation of

debt. It is any form of deferred payment.

(Wikipedia)

 

Interest   - Cost incurred for the use of borrowed money.

Loan   - Amount of money borrowed from the bank.

Margin Money   - It is an amount of money required to pay as

a down payment that reassures the lender

of the borrower's financial stability and

commitment.

 

Processing charges   - The amount paid to financial institutions/

banks for processing the application for

sanctioning of the loan.

 

Repayment period   - The period during which the debt obligation

 

is to be repaid.

 

Price risk   - Variability in prices of output, and inputs because of

 

external factors.

 

Saddle point   - A saddle point of a payoff matrix is that position in the

matrix where the maximum of row minima coincides with

the minimum of the column maxima. The payoff at the

saddle point is called the value of the game.

 

Utility   - Economist-speak for a good thing; a measure of

satisfaction. Underlying most economic theories is the

assumption that people do things because doing so gives

them utility. People want as much utility as they can

get. However, the more they have, the less difference an

additional unit of utility will make – there is diminishing

MARGINAL utility.

 

Yield risk   - Variability in yield because of external factors.

 

Building relationships  - A basic term used in customer relationship

management, marketing is all about building and sustaining

relationships between the buyer and the seller.

● Business markets  - Buy goods and services for further processing or

use in their production process.

● Consumer markets  - Individuals and households that buy goods and

services for personal consumption.

● Environment  - A company’s marketing environment consists

of the actors and forces outside marketing that affect marketing

management’s ability to develop and maintain successful relationships

with its target customers.

● International markets  - buyers of all types in foreign countries.

● Marketing  - Marketing is the basis of all economic activities, it is

to develop products to the needs of the consumers, select the best

pricing method for selling, determine proper place of distribution,

 

27

Marketing

Environment

 

and communicate with present and prospective buyers about product

features, advantages, and benefits offered vis-a-vis competition. It

is all about creating and sustaining value for both company and the

consumer.

● Moment of truth  - Every time that a customer interacts with the

marketer, their expectations rise over the previous encounter.

● Reseller markets  - Buy goods and services to resell them at a profit).

● Government markets  - agencies that buy goods and services to

produce public services or transfer them to those that needs them.

● Rurbanization  - This is a term associated with the rural population

being more exposed to the urban way of living, is turning from rural

to urban. The factors contributing to this are media, and the rural

population from nearly every household work in urban areas and

bring back new ideas, and thoughts that have changed the thinking of

rural masses towards more of urban today, this is observed especially

in the change in buying patterns of the rural consumers.

● Selling  - It has a product focus and is mostly producer-driven. It is the

action part of marketing only and has a short-term goal of achieving

market share. The emphasis is on price variation for closing the sale.

 

Forecasting  - This is a technique employed by business firms to ascertain

the marketing strategies to be adopted in the future and what would be the

expected sales growth

Marketing research  - Marketing research is the systematic gathering and

interpretation of information and data relevant to your organization and

using this to revamp strategies.

 

Primary research  - This is the collection of first-hand information from the

market using various tools such as questionnaires, observations, interviews,

etc

Rurbanization  - Rural population turning urban. This is aided by the media

and the members of the rural families working in urban areas, they share

their experiences with the members of the family which aids them to be

exposed to the urban way of living, further it also stimulates their needs and

wants.

Secondary research  - This is the data collected from existing studies done

on the research topic, tools could be publications, websites, journals, past

records, etc.

Test marketing  - This is s technique used by the marketer when they launch

a new product in the market, to know the feedback of the prospects on the

feasibility of the product to them.

 

Brand  - A tern, name, logo, or a symbol assigned to any product that gives

the product its identity, and distinguishes it from the competition.

Marketing mix  - marketing mix is often referred to as the 4 Ps of marketing,

namely product, price, place, and promotion

Media  - Media are the vehicles to promote the products and brands to the

existing and prospective buyers, for example, broadcast media, print media,

and outdoor media.

Opinion leaders  - These are people who are experts in their own areas

of specialization and guide the people towards making the final choice of

products they have considered to buy

STP  - Segmentation, targeting, and positioning. This gives an insight

into how to divide the broad market into manageable parts. Once the

segmentation is done then devise various marketing strategies for the target

audience chosen and positioning broadly means the image of any product in

the minds of the buyer.

 

Agent middlemen  - Those individuals who do not take title to the goods

they handle.

Agricultural marketing can be defined as comprising of all activities

involved in the supply of farm inputs to the farmers and the movement of

agricultural products from the farms to the consumers.

Agriculture  - means growing and/or raising crops and livestock.

 

Buying  - It includes identifying one’s needs, finding the source of supply of

the goods, and procuring them at the right price.

Channel  - The path through which goods and services move from producers

to consumers.

E-Marketing  - E-marketing or electronic marketing is the application

of marketing principles and techniques via electronic media and more

specifically the Internet.

Facilitative middlemen  - Those individuals who do not buy and sell but

assist in the marketing process.

Grading  - Grading means the sorting of produce into different lots having

the same characteristics with respect to quality specifications.

Market intelligence  - The historical record of the market situation.

Market news  - It presents information on prices of the commodities, market

arrivals, stock, directions of outflows, etc.

Marketable Surplus  - The quantity of the produce which can be made

available to the non-farm population of the country.

Marketed Surplus  - The quantity of the produce that the producer farmer

actually sells in the market, irrespective of his requirements for family

consumption, farm needs, and other payments.

Marketing connotes a series of activities involved in moving the goods

from the point of production to the point of consumption.

Marketing functions Any single activity performed in carrying a product

from the point of its production to the ultimate consumer may be termed as

a marketing function.

Merchant middlemen  - Those individuals who take title to the goods they

handle.

Selling  - It is the process of finding the buyers and convincing them to buy

the product at a price that is satisfactory to both sellers and buyers.

Standardization  - It is defined as the determination of the basic limits on

grades or the establishment of model processes and methods of producing,

handling, and selling goods and services.

Conglomeration This type of integration occurs when a combination

of agencies or activities not directly related to each other operates under

unified management.

Environment  - This means the sum total of physical and social conditions

that influence individuals and communities.

Horizontal Integration When a firm or agency gains control of other firms

or agencies performing similar marketing functions at the same level in the

marketing sequence.

Macro environment denotes those elements over which the marketing firm

has no control and outside affair affect an organization.

Market area  - The area from which the produce naturally and abundantly

flows to a commercial center, i.e., the market, and which assures adequate

business and income to the market committee

Market Integration refers to the expansion of firms by consolidating

additional marketing functions and activities under single management.

Market yard  - This is a specified portion of the market area where the

sale, purchase, storage, and processing of any of the specified agricultural

commodities are carried out.

Marketing Efficiency is the ratio of market output (satisfaction) to

marketing input (cost of resources).

Marketing environment  - The various external forces that can directly or

indirectly affect the many activities of an organization.

Marketing Intermediaries  - are individuals/ functionaries that help the

firm to promote, sell, and distribute its goods to final buyers.

Micro-environment  - denotes those elements over which the marketing

firm has control.

 

Price spread  - is the difference between the price paid by the consumer

and the price received by the producer for an equivalent quantity of farm

produce

Producer’s Price net price received by the farmer at the time of the first

sale.

Regulated market is a wholesale market where buying and selling are

regulated and controlled by the state government through the market

committee.

Suppliers  - are firms and individuals that provide the resources needed by

the firm to produce goods and services.

Vertical Integration This occurs when a firm performs more than one

activity in the sequence of the marketing process.

 

Partial state trading  - Private traders and government coexist. The

government may place some restrictions on private traders.

Complete state trading  - The purchase and sale of commodities are

undertaken entirely by the government or its agencies.

Buffer stocks  - It refers to the stock of foodgrains maintained by the

government to be used as a buffer to cushion the shocks of fluctuating

supply and price, to meet the emergency needs, and to meet the situations

arising out of serious unexpected shortages.

Public procurement  - Refers to securing foodgrains by the government or

its agencies

Procurement prices  - The prices at which the procurement operation is

carried out are referred to as procurement prices.

Pre-emptive Purchases  - The government assumes the first right to purchase

the grains at a price settled between the trader and the food producer.

Monopoly Procurement  - The government acquires monopoly rights for

the purchase of foodgrains from farmers. Traders are not allowed to enter

the market for this purpose.

Fair Price Shops  - Distribution channels of Government making available the

essential commodities like rice, kerosene, wheat, etc., to the common man

at controlled prices.

 

Issue Prices  - The prices at which the central government supplies foodgrains

to the states for distribution through the fair price or ration shops.

Market yard  - This is a specified portion of the market area where the

sale, purchase, storage and processing of any of the specified agricultural

commodities are carried out.

License fee  - A fee paid to the government for the privilege of being licensed

to do something

Speculator  - An individual who makes a purchase or sale of a commodity

at the present price with the object of sale or purchase at some future date

at a favourable price.

Hoarders  - A person who accumulates things and hides them away for

future use

Productive resources  - Anything that any business uses to add value.

Productive resources are usually categorized into the four factors of

production - which are land, labour, capital, and entrepreneurial skill.

Direct market intervention  - Refers to direct entry of public agencies in

the market to influence market structure, conduct, and performance.

Bill of Lading  - The Bill of Lading is a document issued by the shipping

company or its agent acknowledging the receipt of goods.

Aligned Documentation System (ADS)  - It is a methodology of creating

information on a set of standard forms printed on a paper of the same size in

such a way that the items of identical specification occupy the same position

on each form.

Commercial documents  - These are used by importers and exports in the

discharge of their respective legal and other incidental responsibilities under

sales contracts.

Regulatory documents  - These are prescribed by different government

departments and bodies for compliance with formalities under relevant

laws.

C&F (Clearing and Forwarding) Agents  - They carry out several functions

and provide various services related to the shipping of the consignments,

either by air or by sea.

Marine Insurance Certificate  - It is a document that gives details of the

shipment insured.

 

Consumer product  - A product that is intended for purchase and use by

household consumers for non-business purposes.

 

185

Green marketing  - Any marketing activity of a firm that is intended to Product Strategy

create a positive impact or lessen the negative impact of a product on the

environment to capitalize on consumers’ concerns about environmental issues.

Innovators  - A group of venturesome consumers that are the first to adopt

an innovation.

Intangibility  - A characteristic of service indicating that it has no physical

attributes and, as a result, is impossible for consumers to taste, feel, see,

hear, or smell before they buy it.

Product abandonment  - A decision and subsequent action by a firm to draw

a product that has insufficient or declining sales and lacks profits.

Product adaptation  - Modifying a product that sells successfully in one

market to suit the unique needs or requirements of other markets.

Product mix  - The set of all products offered for sale by a company.

Expected price  - The price at which customers consciously or unconsciously

value the product.

Price competition  - A strategy in which a firm regularly offers products

priced as low as possible, usually accompanied by a minimum of services.

 

204

Marketing Strategy Price discrimination  - A situation in which different customers pay different

 

prices for the same product.

Price elasticity of demand  - The responsiveness of quantity demanded to

price changes.

Price war  - A form of price competition that begins when one firm decreases

its price to increase its sales volume and the other firm retaliates by reducing

prices on competing products.

Stabilize prices  - A status quo-oriented pricing goal in which a firm seeks

to maintain its current situation by pricing its products in such a way as to

avoid price competition.

Value pricing  - A form of price competition in which a firm seeks to improve

the ratio of products benefits to its price and related costs.

Agri-business- Farms, food-processing firms, and other large-scale

farming-related enterprises.

Channel conflict- A situation in which one channel member perceives

another channel member to be acting in a way that prevents the first member

from achieving its distribution objectives.

Channel control- The actions of a firm to regulate the behaviour of other

companies in its distribution channel.

Channel power- The ability of a firm to influence or determine the behaviour

of another channel member.

Contractual vertical market system- An arrangement under which

independent firms-producers, wholesalers, and retailers-operate under

contracts specifying how they will operate to improve their distribution and

efficiency, and effectiveness.

Direct marketing- A form of non-store retailing that uses advertising to

contact consumers who, in turn, purchase products without visiting a retail

store.

Exclusive distribution- A strategy in which a supplier agrees to sell its

products only to a single wholesaling middleman or retailer in a given

market.

Physical distribution management- The development and operation of

the process resulting in the effective and efficient physical flow of products.

Wholesaling middlemen- A firm engaged primarily in sale and all activities

directly related to the sale of goods and services to businesses and other

organizations for resale, used in producing other goods and services, or

operating an organization.

 

Advertising- All activities involved in presenting to an audience a

nonpersonal, sponsor-identified, paid-for message about a product or an

organization.

AIDA- A sequence of steps in various forms of promotion, notably personal

selling and advertising, consisting of attracting attention, holding interest,

arousing desire, and generating buyer action.

 

249

Communication- The verbal or non-verbal transmission of information Promotion Strategy

between someone wanting to express an idea and someone else expecting

or expecting to get that idea. The four elements are message, a source of the

message, a communication channel, and a receiver.

Direct mail- One form of direct marketing, in which the firm mail to

consumers  - letters, brochures, and even product samples, and ask them to

purchase by mail or telephone.

Sales promotion- Demand stimulating devices designed to supplement

advertising and facilitate personal selling.

Telemarketing- A form of non-store retailing in which a salesperson

initiates contacts with a shopper and also closes the sale over the telephone.

 

Agricultural marketing  - Covers the services involved in moving an

agricultural product from the farm to the consumer. Numerous interconnected

activities are involved in doing this, such as planning production, growing

and harvesting, grading, packing, transport, storage, agro- and food

processing, distribution, advertising, and sale.

Agricultural marketing infrastructure  - Marketing infrastructure provides

a common facility for proper weighing, cleaning, grading, packaging, and

 

268

Marketing Strategy storage of agricultural produce e.g. food grains, vegetables, fruits, and

 

medicinal herbs.

Agricultural marketing institutions  - embrace a wide range of

organizations, including associations of farmers, traders, and others in the

value chain, as well as cooperatives and government marketing agencies.

Agricultural products logistics  - It is the process of physical distribution

of the agricultural product from the supply place to the receiving place.

According to actual need, basic functions including agricultural product

transporting, storing, loading and unloading, packing, allocation, circulation

processing, information processing are integrated to realize the agricultural

product to keep and increase its value in the process.

Agro industries  - Industry dealing with the supply, processing, and

distribution of farm products. Also connotes large-scale production,

processing, and packaging of food using modern equipment and methods.

Cold chain  - A cold chain is a temperature-controlled supply chain. An

unbroken cold chain is an uninterrupted series of storage and distribution

activities that maintain a given temperature range. It is used to help extend

and ensure the shelf life of products such as fresh agricultural produce,

seafood, frozen food, photographic film, chemicals, and pharmaceutical

drugs.

Grameen Bhandaran Yojana  - this scheme creates a scientific storage

capacity with allied facilities in rural areas to meet the requirements of

farmers for storing farm produce, processed farm produce , and agricultural

inputs; promotion of grading, standardization, and quality control of

agricultural produce to improve their marketability; prevention of distress

sale immediately after harvest by providing the facility of pledge financing

and marketing credit.

Food supply chain  - A food supply chain is a network of food-related

business enterprises through which food products move from production

through consumption, including pre-production and post-consumption

activities. Typical links in the supply chain are inputs, producer, processor,

distributor, wholesaler, retailer, and consumer.

Grain storage  - grain storage plays an important role in preventing losses

that are caused mainly due to weevils, beetles, moths, and rodents. The

storage methods range from mud structures to modern bins.

Input marketing  - value chains begin with production. And efficient

production is not possible if necessary farm inputs are not available in time

or if inputs are not affordable. Improved efficiency in farm input marketing

reduces unit costs and increases availability.

Logistic services  - Logistics contains the integrated planning, control,

realization, and monitoring of all internal and network-wide material.

Output marketing  - market output in agriculture includes agricultural

products sold in the case of crops, output marketing includes the stage of pre

and post-harvest techniques and transport and the disposal of the produce

for further processing or consumption. Livestock and livestock products

need special care before they are taken to the market for sale.

 

269

Supply chain management for agriculture  - the agriculture supply chain Logistic Services

refers to the activities of procurement, order fulfillment, product design

and development, distribution, delivery, and customer service executed by

two or more separate organizations in the agribusiness industry, to fulfill

customer orders.

Conceptual Skills   - Ability to make a big picture and integrate interests

 

and benefits of an organization.

 

Control   - Process of measuring performance with pre-set

benchmark and taking action if any deviation in

performance is noticed or it is below the desired

level.

 

Decision making   - Selection of a path for action to solve a problem or

Ethics   - Set of moral standards for what is right or wrong,

good or bad in one’s behaviour and conduct.

Figurehead   - Representing the organization as head of formal

 

events or meetings

 

Goal   - The purpose for which an organization strives

to achieve, This is a fundamental element of an

organization.

 

Human Capital   - The economic value of people with ideas, knowledge,

job-related capabilities, energy, and commitment.

Human Skills   - Ability to understand, works, encourage and

motivate other people or groups within and outside

the organization.

 

Interpersonal   - A role in which the manager makes contact with

people providing needed information or support,

mostly outside the organization to acknowledge

emails, express obligation, and offer his support.

Leading   - The process of directing an organization or making

group members perform task-related activities.

Liaison   - Remain in touch with managers of other departments

or people outside the organization to develop internal

and external linkages.

 

Management   - The process of achieving organizational goals by

planning, organizing, leading, and controlling

through effective use of organizational resources.

 

32

Fundamentals of Management Manager   - A person shouldering the responsibility to direct and

get things done by others to achieve organizational

goals.

 

Monitoring   - Process of keeping watch over the output during an

 

ongoing process

 

Motivation   - Can be described as forces within a person that

account for cause, channel, and sustain human

behaviour for the betterment.

 

Negotiation   - An act of bargaining to settle a conflict by using

 

communication skills.

 

Obsolescence   - The process of decay, that makes an object or person

 

out of use or out of date.

 

Organizing   - A process of engaging two or more people in a

structured way to achieve certain goals or a set of

goals.

 

Planning   - Process of developing the course of action in advance

with details of who does, what, when, where, why,

and how for the future.

 

Scalar Chain   - The graded chain of authority through which

 

information flow from top to bottom.

 

Staff authority   - The authority granted to a group of individuals to

advise and provides services to line managers.

Stakeholders   - The groups and people directly affected in any form

by the persuasion of the goals of an organization.

Supply chain   - Chain of critical points to make available the product

 

or service to end-user

 

Task   - An assignment or responsibility given or undertaken

 

for performing.

 

Technical Skills   - Ability to use the methods, tools, techniques,

 

knowledge of a specialized domain.

 

Unity of Command   - A n

employee should get orders from one superior for

correct action.

 

Unity of Direction   - The principle states clarity of action. In a large

organization, one manager should have one plan

instead of his part involvement at different places.

Authority   - A form of power often used broadly to refer to

 

a people’s ability to wield power.

 

Bureaucracy   - Organization with a legalized formal

 

hierarchical structure.

 

Centralization   - The extent to which authority is concentrated at

 

the top of the organization.

 

Chain of command   - The plan that specifies who reports to whom in

 

an organization.

 

Coercive power   - The negative side of reward power.

Coordination   - The integration of the activities of the separate

parts of an organization to accomplish

organizational goals.

 

Decentralization   - The delegation of power and authority from

higher to lower levels of the organization.

Division of work   - The breakdown of a complex task into

components so that individuals are responsible

for a limited set of activities.

 

Flat hierarchies   - Organization structures characterized by

wide spans of management control and few

hierarchical levels.

 

Formal authority   - Power that exists when a subordinate or

influence acknowledges that the influencer has

a right to exert influence.

 

Functional authority   - The authority of members of staff departments

to control the activities of other departments

they relate to specific staff responsibilities.

Functional organization   - A form of departmental organization in which

everyone engaged in one functional activity

such as marketing, finance, etc is grouped into

one.

 

Functions   - A classification referring to a group of similar

 

activities in an organization.

 

Goal   - The purpose that an organization strives to

 

achieve.

 

Hierarchy   - A pattern of multiple levels of an organizational

 

structure.

 

Informal organization   - The undocumented and officially unrecognized

relationship between members of an

organization.

 

Job description   - A written description of a non-management job

covering title, duties, and responsibilities, and

the location of the job in the organization chart.

Job design   - The division of an organization’s work among

 

its employees.

 

58

Fundamentals of Management Job enlargement   - The combining of various operations at a similar

level to provide more variety for workers and

increase satisfaction.

 

Job rotation   - The practices of shifting employees from job to

job within the same company to enable them to

develop a variety of skills.

 

Job specialization   - The division of work into specialized simplified

 

tasks.

 

Organization design   - The determination of the organization structure

that is most appropriate for the strategy, people,

technology, and tasks of the organization.

Organization structure   - The way in which the organization’s activities

are divided, organized, and coordinated.

Power   - The ability to exert influence is the ability to

change the attitude or behavior of individuals

or groups.

 

Project   - The smaller and separate portion of the program.

Recruitment   - The development of a pool of candidates

following a human resource plan for the need

of the organization.

 

Selection   - The mutual process whereby the organization

decides whether or not to make a job offer and

the candidate decides whether or not to accept

it.

 

Core values   - The primary or dominant values that are

accepted throughout the organization.

Dominant culture   - A culture that expresses the core values that

are shared by a majority of the organization’s

members.

 

Ethical dilemmas   - Situations in which individuals are required

to define right and wrong conduct.

Globalization   - It is the process of international integration

arising from the interchange of world views,

products, ideas, and other aspects of culture.

McGregor Theory X and Theory Y  - These are theories of human

motivation developed by Douglas McGregor

at the MIT Sloan School of Management

in the 1960s that have been used in human

resource management, organizational

behavior, organizational communication,

and organizational development.

 

140

Organizational Behaviors Organizational Behavior  - It is a field of study that investigates the impact

that individuals, groups, and structures have

on behavior within an organization to apply

such knowledge towards improving an

organization’s effectiveness.

 

Organizational culture   - A system of shared meaning held by

members that distinguish the organization

from other organizations.

 

Scientific Management   - It was a theory of management that

analyzed and synthesized workflows. Its

main objective was improving economic

efficiency, especially labor productivity of

labor and machine.

 

Strong culture   - A culture in which the core values are

 

intensely held and widely shared.

 

Subcultures   - Minicultures within an organization,

typically defined by department designations

and geographical separation.

 

Telecommuting   - It is a work arrangement in which employees

do not commute to a central place of work,

but, work from different places with the

help of information & communication

technology.

 

Virtual teams   - It is a group of individuals who work across

time, space, and organizational boundaries

with links strengthened by webs of

communication technology.

 

Workforce Diversity   - The concept that organizations are becoming

more diverse in terms of gender, age, race,

ethnicity, sexual orientation, and inclusion

of other groups.

 

Workplace ethics   - It is a value based on hard work and diligence.

It is also a belief in the moral benefit of work

and its ability to enhance character. A work

ethic may include being reliable, having

initiative, or pursuing new skills.

 

Workplace spirituality   - The recognition that people have an inner

life that nourishes and is nourished by

meaningful work that takes place in the

context of community.

 

Workplace Values   - Concepts and ideas that define a job-seeker

and influence your satisfaction -- not only

with your job but with your life. Job-seekers

should perform a values check every few

years to make sure their career is on track.

Compromise   - In a compromise, each party tries to give away

 

something to end the conflict.

 

Conflict   - The difference of opinion between two or more

 

individuals.

 

Domination   - The process of dealing with conflicts wherein one party

 

dominates the other party.

 

Negotiation   - The process of dealing with the conflict in a peaceful

 

manner.

 

Authentic leader   - Leaders, who know who they are, know what

they believe in and value, and act on those

values and beliefs openly and candidly. Their

followers would consider them to be ethical

people.

 

Brainstorming   - An idea-generation process that specifically

encourages all alternatives while withholding

any criticism of those alternatives.

 

Charismatic leadership   -

theory A leadership theory that states that followers

make attributions of heroic or extraordinary

leadership abilities when they observe certain

behaviors

 

Cohesiveness   - The degree to which group members are

 

192

Organizational Behaviors attracted to each other and are motivated to

 

stay in the group.

 

Conformity   - The adjustment of one’s behavior to align with

 

the norms of the group.

 

Group shift   - A change in decision risk between a group’s

decision and an individual decision that a

member within the group would make; the

shift can be toward either conservatism or

greater risk.

 

Group   - Two or more individuals, interacting and

interdependent, who have come together to

achieve particular objectives.

 

Groupthink   - A phenomenon in which the norm for

consensus overrides the realistic appraisal of

alternative courses of action.

 

Informal group   - A group that is neither formally structured

nor organizationally determined; such a group

appears in response to the need for social

contact.

 

Interacting groups   - Typical groups in which members interact

 

with each other face-to-face.

 

Leadership   - The ability to influence a group toward the

achievement of a vision or set of goals.

Position power   - Influence derived from one’s formal structural

position in the organization; includes the

power to hire, fire, discipline, promote, and

give salary increases.

 

Social loafing   - The tendency for individuals to expend less

effort when working collectively than when

working individually.

 

Task structure   - The degree to which job assignments are

 

procedure.

 

Transactional leaders   - Leaders who guide or motivate their followers

in the direction of established goals by

clarifying role and task requirements.

Transformational   - Leaders who inspire followers to transcend

leaders their self-interests and who are capable of

having a profound and extraordinary effect

on followers.

 

Trust   - A positive expectation that another will not act

 

opportunistically.

 

Vision statement   - A formal articulation of an organization’s

 

vision or mission.

 

193

Conflict Management and

Negotiation

 

Vision   - A long-term strategy for attaining a goal or

 

goals.

Filtering   - Addition or removal from the content of message

 

while sending to the receiver.

 

Information overload   - With the advent of communication technologies

and the internet, people have access to loads of

information that is available free of cost.

Intranet   - The communication channel available only for

 

the employees within an organization.

 

Transactional model   - This is one communication model which keeps

both the sender and the receiver engaged through

communication.

Data Integrity   - It represents the correctness and consistency

 

of data.

 

Query processing system   - A system that processes users’ queries and

 

retrieves data from the database.

External Interfaces  - They are the organizational boundaries between

the project and external entities, they may be the

parent organization, the customer, subcontracted

organizations, and other organizational entities

that interact with the project.

 

Interface management  - It refers to the management of communication,

coordination, and responsibility across a common

boundary between two organizations, phases, or

physical entities which are interdependent.

Interface  - It refers to the formal and informal boundaries

and relationships among people, departments,

organizations, or functions.

 

Stakeholders  - They can be individuals, communities, social

groups, or organizations. For example,

stakeholders in a public limited company might

include people who have taken shares of the

company, people who deal with the company,

central government agencies, local government

agencies.

 

B2B   - Commercial transactions between two or

 

more businesses.

 

B2C   - Selling of goods and services to a customer

and the transaction takes place through the

Internet

 

C2B model   - Also called, “reverse auction” or “demand

collection model,” enables buyers to name

their prices, often binding, for a specific good

or service generating demand.

 

C2C   - An e-business model, consumers sell directly

to other consumers via online classified ads

and auctions, or by selling personal services

and expertise online.

 

E-commerce   - Refers generally to all forms of commercial

 

269

E-commerce and

M-commerce

 

transactions involving both organizations

and individuals, that are based upon the

electronic processing and transmission of

data, including text, sound, and visual images

Interactive marketing   - The ability to address the customer, remember

what the customer says, and address that

customer again.

 

Intranet   - Uses Internet technology to allow employees

to view and use internal Web sites that are not

accessible to the outside world.

 

M-commerce   - Refers to the practice of conducting financial

and promotional activities with the use of a

wireless handheld device.

 

Mobile applications   - Require a device-specific download from a

marketplace, such as the Apple App Store or

the Android Market.

 

Mobile sites   - They appear inside the browser on any

 

internet-enabled mobile device

 

Self-service   - The process by which consumers engage in

all or a portion of the provision of a service

or product.

 

Business Research   - Organized, systematic, data-based, critical, objective,

scientific inquiry or investigation into a specific problem,

undertaken to find answers or solutions to it.

 

Research Methodology   - It is a way to systematically solve the research problem.

 

Business process research   - The business research process entails studying all

aspects of a company, its customers, and the market,

then using that information to make sound business

decisions.

 

Problem Formulation   - The first step in the design of the research is the

selection of a question that has its roots in an

interesting theoretical argument.

 

16

Research Objectives   - Research objectives are a specification of the ultimate

reason for carrying out research in the first place.

Research Design   - A research design encompasses the method and

procedures employed to conduct scientific research.

Research Method   - The process used to collect information and data for

 

the purpose of making business decisions.

 

Data Collection   - Systematic gathering of data for a particular purpose

from various sources, including questionnaires,

interviews, observation, existing records, and

electronic devices.

 

Data Preparation   - The processes that ensure the accuracy of data and

their conversion from raw form into categories

appropriate for analysis; include editing, coding, and

data entry.

 

Data Analysis   - The process of evaluating data using analytical and

logical reasoning to examine each component of the

data provided

 

Report Preparation   - A process of Composing, typing, organizing,

 

amending, coordinating, etc.

 

Measurement Scales   - The scale of measurement refers to how variables are

 

measured.

 

Nominal   - Classifies variables simply in terms of their names and

 

the categories cannot be ranked.

 

Ordinal   - Contains non-numeric categories that can be ranked.

Interval   - Contains categories in which the actual distances, or

intervals, between categories, can be compared.

 

Ratio   - Like the interval-scale variable, however, it has a non-

arbitrary zero value.

Cluster Sampling   - Cluster sampling is a sampling technique used when

“natural” but relatively homogeneous groupings are

evident in a statistical population.

 

Convenience Sampling   - A statistical method of drawing representative data by

selecting people because of the ease of their volunteering

or selecting units because of their availability or easy

access.

 

20

Judgement Sampling   - In judgement sampling, the researcher or some other

“expert” uses his/her judgement in selecting the units

from the population for study based on the population’s

parameters.

 

Multistage Sampling   - Multistage Sampling is a sampling strategy used when

conducting studies involving a very large population. The

entire population is divided into naturally-occurring

clusters and sub-clusters, from which the researcher

randomly selects the sample.

 

Purposive Sampling   - Purposive sampling technique is a type of non-probability

sampling where the researcher consciously selects

particular elements or subjects for addition in a study to

make sure that the elements will have certain

characteristics pertinent to the study.

 

Quota Sampling   - Quota sampling is a method for selecting survey

participants. In quota sampling, a population is first

segmented into mutually exclusive sub-groups, just as in

stratified sampling.

 

Simpl Random Sampling   - A simple random sample is a sample of size n drawn

from a population of size N in such a way that every

possible sample of size n has the same chance of being

selected.

 

Sampling Error   - Sampling Error is an error that occurs when using

samples to make inferences about the populations from

which they are drawn.

 

Sampling   - Statistical method of obtaining representative data or

 

observations from a group.

Sampling Frame   - A list of sampling units.

Self-Selection Sampling   - Self-selection sampling is a type of non-probability

sampling technique. Non-probability sampling focuses on

sampling techniques that are based on the judgement of

the researcher.

 

Snow Ball Sampling   - Snowball sampling is a non-probability sampling

technique that is used by researchers to identify potential

subjects in studies where subjects are hard to locate.

Stratified Sampling   - A stratified sample is a probability sampling technique in

which the researcher divides the entire target population

into different subgroups or strata, and then randomly

selects the final subjects proportionally from the different

strata.

 

21

Systematic Sampling   - A method of choosing a random sample from among a

 

larger population.

Data Coding   - Coding is an interpretive technique that both organizes the

data and provides a means to introduce its interpretations into

certain quantitative methods.

 

Data Collection   - Systematic gathering of data for a particular purpose from

various sources, including questionnaires, interviews,

observation, existing records, and electronic devices.

Data Editing   - Data editing is the activity aimed at detecting and correcting

 

errors (logical inconsistencies) in data.

 

Data Presentation   - Presenting data refers to putting across the collected

 

information in a clear and concise manner.

 

Data Tabulation   - Tabulation is the systematic arrangement of the statistical

 

data in columns or rows.

 

Primary Source   - Primary source data is the original material from the field

 

one is studying.

 

Secondary Source   - Secondary data is all the information collected for purposes

other than the completion of a research project and it’s used

to gain initial insight into the research problem.

 

Validity   - This refers to the extent to which a measurement does what it

 

is supposed to do.

Coefficient of

variation (C.V.)

 

  - It is the ratio of standard deviation and means of the dataset

expressed as a percentage, C.V. =

 

Standard deviation

Mean

 

´ 100

Correlation   - It is the degree of linear dependence between two variables.

When an increase or decrease in one variable is

accompanied by an increase or decrease in the other

variable, the phenomenon is known as Correlation.

 

Mean deviation   - It is the average of all deviations from the mean of the

dataset. It is calculated by dividing the sum of the absolute

deviations (without considering the plus or minus sign) of

individual observations from their mean/median/mode by

 

20

 

the number of observations.

 

Mean   - It is the arithmetic average of the given dataset and is

obtained by dividing the sum of the values of the

observations in the data by the number of observations.

Median   - It is the value which is located in the middle of a series

when the observations are arranged in ascending or

descending order of magnitude. The Median divides the

series into two equal halves.

 

Mode   - It is the value of the variable which occurs most frequently

 

in a dataset.

 

Range   - It is the difference between the lowest and highest variable

 

of a dataset.

 

Regression   - The term regression represents the causal relation (cause-

effect relation) between two variables.

 

Standard

deviation

 

  - It is the square root of the arithmetic mean of the squares of

all deviations, the deviations being measured from the

arithmetic mean of the distribution.

 

Focused interview   - In it, the focus group participants are typically asked to

reflect on the questions asked by the interviewer

/moderator.

 

Observation   - To collect information on various aspects to have firsthand

knowledge about a great variety of interactions, and to

openly investigate the research topic.

 

Interview method   - In this, the information is collected from the respondents by

 

asking questions to them.

 

Projective

Techniques

 

  - These are indirect and unstructured methods of

investigation which involve making an individual respond

to relatively unstructured and ambiguous stimuli.

 

Structured

interview

 

  - Here carefully worded and systematically organized

interview schedule is used.

 

Unstructured

interview

 

  - Here the interviewer starts with some broad themes or

guidelines, but without any well-structured interview

schedule.

 

 

Immediate Audience   - They will examine and evaluate the report.

Primary Audience   - Those who are responsible for making decisions on the

basis of recommendations made in the business report.

Primary Data   - Primary research data refers to data obtained afresh from

the original source specifically for the particular research.

In business research, primary data is mainly collected by

interviewing consumers using questionnaires.

 

Secondary Audience   - They are the people who are affected by the actions of the

 

primary audience.

 

Secondary Data   - Secondary data refers to the data which has already been

gathered and compiled by someone else. Secondary data

sources in business research involve statistical and

financial reports, business magazines, newspaper articles,

annual reports, online publications, etc.

Operations Research   - A method of mathematically based analysis for providing

 

a quantitative basis for management decisions.

 

Decision Theory   - It is a method or framework of logical and

 

mathematical concepts, aimed at helping decision-

makers to formulate rules and choose among a set of

 

alternatives.

 

Decision Tree Analysis   - A schematic method of alternatives available to the

decision-maker, to analysis the circumstances along

with their possible consequences.”

 

Laplace Criterion   - This method explicitly uses the probability of

assessments regarding the likelihood of occurrence of

the states of nature.

 

Maximax Criterion   - This method looks at the best that could happen

under each action and then chooses the action with

the largest value.

 

Maximin Criterion   - This method involves selecting the alternative that

maximises the minimum pay-off achievable.

 

Minimax Regrets

Criterion

 

  - This method minimizes regret which is highest when

one decision has been made instead of another.

 

Assignment Problem   - It is a special case of transportation problem, use to

minimize the cost or time of completing a number of

jobs by a number of persons.

 

Least cost method   - This is another method that takes into account the

minimum unit cost of transportation for obtaining an

initial basic solution.

 

North West corner rule   - It’s an easy and efficient method to get an initial

solution. North West corner rule does not take into

account the cost of transportation on any route of

transportation.

 

Transhipment Problem   - It is defined as the shipment of goods (raw material,

semi-finished, finished goods) or containers to an

intermediate destination, then to yet another

destination.

 

Transportation Problem/

Model

 

  - It is concerned with shipping a commodity between

a set of sources (e.g. manufacturers) and a set of

destinations (e.g. retailers).

 

Unbalanced Assignment

Problem

 

  - If the number of jobs is not equal to the number of

operators then the assignment problem is known as

an unbalanced assignment problem.

 

Unbalanced Problem   - A Transportation Problem is said to be an

unbalanced transportation problem if the total

number of supply is not the same as total number of

demand. This is the case of an assignment problem

where the number of persons is not equal to the

number of jobs.

 

Vogel Approximation

Method

 

  - It is also called as penalty and regret method, this

method is a heuristic and is preferred mostly.

Economic Order Quantity   - EOQ is the order quantity that minimizes total

inventory holding costs and ordering costs.

Fixed Order Quantity   - A method that only allows for a specific amount

of a given item to be ordered at one time.

Holding Costs   - The associated price of storing inventory or assets

 

that remain unsold.

 

Inventory Cost   - Inventory Costs are the costs related to storing

and maintaining its inventory over a certain

period of time.

 

Inventory   - The raw materials, work-in-process goods, and

completely finished goods that are considered to

be the portion of a business's assets that are ready

or will be ready for sale.

 

Periodic Review System   - A periodic inventory review system is one where

inventory is checked and reordered at a set time

interval.

 

Setup Cost   - Expenses incurred in setting up a machine, work

center, or assembly line, to switch from one

production job to the next.

 

Dominance   - States that if one strategy of a player dominates over the

other strategy in all conditions then the latter strategy can

be ignored. A strategy dominates over the other only if it

is preferable over the other in all conditions.

 

Game Theory   - Set of concepts aimed at decision-making in situations of

competition and conflict (as well as cooperation and

interdependence) under specified rules.

 

Payoff matrix   - A payoff is a number, also called utility that reflects the

desirability of an outcome to a player, for whatever

reason.

 

Saddle point   - A point at which a function of two variables has partial

derivatives equal to zero but at which the function has

neither a maximum nor a minimum value.

 

Zero sum game   - A game is said to be zero-sum if for any outcome, the

sum of the payoffs to all players is zero. In a two-player

zero-sum game, one player’s gain is the other player’s

loss, so their interests are diametrically opposed.

Programme   - A large activity to encompasssimilar projects associated

 

to achieve specific goals.

 

Interdependencies   - Denote relationship between organizational functions,

where a function depends on another function/task for

completion.

 

Uniqueness   - A characteristic that differentiates an object, process, and

person from the other one due to certain features.

Risk   - Can be defined as the possibility that the outcome of a

particular event/activity does not turn out as planned for

action.

 

Multidisciplinary   - Comprises members with varied skills to assist the Project

Team Manager in implementing varied project activities.

Conflict   - A perceived difference of values between two or more

parties that result in mutual opposition/ disagreement.

Uncertainty   - A situation where information about alternatives and future

 

events is not available to a decision maker.

 

Integration   - The intricate process of coordinating the work and timing

Management of different groups associated with a project.

Parent organization   - An organization operating multi-projects simultaneously

 

with functional departments.

 

Matrix organization   - Combination of a pure project and functional organization

Form structure, where members of the project team are

 

31

Introduction to Project controlled Project Manager as well as the Head of the

functional department.

 

Project Life Cycle   - The life cycle the project passes through in four phases

viz. Conception (Start), Definition (Growth), Execution

(Maturity), and Operation (Closing) phases.

 

Project Management   - Managing any piece of work as discrete project activity

or set of activities with specific objectives, planned,

monitored, and controlled to give output within cost, time,

and quality.

 

Net Present Value   - A method for evaluating investment proposals. It is the

(NPV) present value of benefits reduced by the present value of

 

costs.

 

Payback Period   - The length of time required for an asset to generate cash

flows is just enough to cover the initial outlay.

Present Value   - It is the value of a future stream of payments or receipts

discounted at a given rate to the present time.

Profitability Index   - Also called Benefit-Cost Ratio, it measures the present

value per rupee of outlay and is useful for a ranking project

in the order of decreasingly efficient use of capital.

Project Manager   - He has primary responsibility for the quality of a project’s

deliverables and its successful completion. He also has

responsibility for planning and ensuring that the project is

successfully completed on time and within budget.

Risk management   - It is the identification, assessment, and prioritization of

risks followed by coordinated and economical application

of resources to minimize, monitor, and control the

probability and/or impact of unfortunate events or to

maximize the realization of opportunities.

Budget   - A plan expressed usually in financial terms.

Capital Structure   - The composition of a firm’s long-term financing consisting of

 

equity, preference capital, and long-term debt.

 

70

Project Management  -

An Overview

 

Risk   - It refers to variability; it is measured by standard deviation.

Term Loan   - A loan which is generally in more than one year and less than

 

ten years.

 

Top Down   - A budgeting method that begins with top managers’ estimates

 

of the resources needed for a project.

 

Zero Based   - A budgeting method that was devised as an alternative to the

Budgeting incremental approach. Every program budget had to be

 

totally justified every budget cycle.

 

Action research   - A reflective process of progressive problem solving led by

individuals working with others, usually in teams, to improve

the way they address issues and solve problems.

Activities   - Measurable amount of work performed to convert inputs

 

into outputs.

 

Approach   - To come or go near, in place or time; to draw nigh; to advance

 

nearer.

 

100

Project Formulation Baseline surveys   - Are undertaken before a market development in order to

review the “without change” circumstances. An example might

be a survey of market throughput.

 

Beneficiary   - In the broadest sense is a natural person or other legal entity

(also, in trust law) who receives money or other benefits from a project or

 

program.

 

Bias means   - That a person prefers an idea and possibly does not give

equal chance to a different idea. Bias can be influenced by a

number of factors.

 

Community   - A group of interacting people, living in some proximity (i.e.,

 

in space, time, or relationship).

 

Community   - Is a structured intervention that gives communities greater

Development control over the conditions that affect their lives.

Data   - Facts and statistics collected together for reference or analysis.

Decision making   - Can be regarded as the mental process (cognitive process)

resulting in the selection of a course of action among several

alternatives.

 

Deliverable   - Report or item that must be completed and delivered under

 

the terms of an agreement or contract.

 

Empowerment   - Refers to increasing the spiritual, political, social, educational,

gender, or economic strength of individuals and communities.

Equitable   - Possessing or exhibiting equity; according to the natural right

or natural justice; marked by a due consideration for what is

fair, unbiased, or impartial; just; as an equitable decision.

Exploratory   - This is a type of research conducted for a problem that has

research not been clearly defined.

Group dynamics   - Refers to a system of behaviors and psychological processes

occurring within a social group (intragroup dynamics), or

between social groups.

 

Holistic   - Emphasizing the importance of the whole and the

 

interdependence of its parts.

 

Information   - Facts provided or learned about something or someone.

Interdisciplinary   - This would refer to something that draws from more than

 

one field of study.

 

Interview   - A meeting of people face to face, especially for consultation.

Iterative   - Act of repeating a process usually to approach a desired

 

goal or target or result.

 

Mapping   - A Holistic Approach toward Human, Ecological &

 

Technological Landscapes.

 

101

Participatory

Rural Appraisal and

Rapid Rural Appraisal

 

Modelling   - A model is a pattern, plan, representation (especially in

miniature), or description designed to show the main object

or workings of an object, or system.

 

NGO (Non-   - An organization, usually with humanitarian or environmental

Governmental protection objectives, that is not controlled by a government,

Organization) though it may operate with the assistance of government

 

funding.

 

Optimal   - A best possible compromise solution to a problem, when

there are several competing considerations, not all of which

can be simultaneously taken up.

 

Participatory   - Has been broadly conceived to embrace the idea that all

development “stakeholders” who are affected by a decision have a right to

 

be involved in the decision-making process.

 

Participatory Rural   - This is the process of involving local people in the analysis

Appraisal (PRA) and interpretation of a rural situation.

Pilot survey   - This is a preliminary survey undertaken to test whether a

survey questionnaire has been properly designed.

Project   - Planned set of interrelated tasks to be executed over a fixed

period and within certain costs and other limitations.

Project appraisal   - This is a generic term that refers to the process of assessing,

in a structured way, the case for proceeding with a project.

Project evaluation   - This is a systematic method for collecting, analyzing, and using

the information to answer basic questions about projects.

Project formulation   - This is a concise, exact statement of a project to set the identity

of the project and precise meaning of project work to prevent

conflict, and confusion. Primary data is information that has

to be collected through field surveys to fill data gaps.

Qualitative   - Qualitative methods are ways of collecting data that are

concerned with describing meaning, rather than withdrawing

statistical inferences.

 

Quantitative   - Methods are those which focus on numbers and frequencies

 

rather than on meaning and experience.

 

Rapid rural   - This is a survey method where the surveyor visits the

appraisal community in order to obtain information, which is taken away

 

to be analyzed.

 

Rural development   - In general is used to denote the actions and initiatives taken

to improve the standard of living in the non-Urban

neighborhood.

 

Sampling   - Is a part of the total population. It can be an individual element

or a group of elements selected from the population.

 

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Project Formulation Secondary data   - Is information that has already been collected and published

 

by others.

 

Stakeholder   - A person, group, or organization that has a direct or indirect

 

stake in an organization.

 

Systematic   - Done or acting according to a fixed plan or system;

 

methodical.

 

Team work   - A joint action by a group of people, in which each person

 

subordinates his or her individual interests.

 

Transect walk   - Systematic walk along a pre-determined route through an

area to gather information about such things as land use, and

social and economic situation.

 

Triangulation   - In the social sciences, triangulation is often used to indicate

that more than two methods are used in the interpretation of

the phenomenon.

 

Venn diagrams or   - These are diagrams that show all possible logical relations

set diagrams between a finite collection of sets (aggregation of things).

Activity   - An element of work that must be accomplished to

 

complete the project.

 

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Activity Duration   - Time required for accomplishing the activity. Planning Tools

Arrow Diagram   - A Network diagramming method that uses arrows to

(Activity on Node) represent activities.

Activity on Node (AON)   - A network diagramming method that uses rectangles

 

(boxes) or nodes to represent activities.

 

Backward pass analysis   - Calculating the late finish dates for activities or the

latest allowable occurrence time for the events.

Bar Chart   - A chart showing activities; their start and finish times,

keeping the relationship of the activities in view.

Crashing   - Shortening of project duration by increasing resources

 

and costs.

 

Critical Activity   - Any activity that is part of the longest sequence of

 

activities from project start to completion.

Critical Path   - The series of activities in a network diagram that

requires the longest time to complete. Activities on

the critical path have zero floats.

 

Critical Path Method   - A project planning technique based on single time

(CPM) (deterministic estimate) for activities.

Dependency   - Term used to describe the relationship between two

 

or more activities in a project.

 

Dummy Activity   - An activity to show the logical relationship in a network

diagram. Dummy activities consume no time and

resources.

 

Duration   - The time units are required to complete an activity.

Early Start (ES)   - The earliest possible date when an activity can start.

Early Finish (EF)   - The earliest possible date when an activity can finish.

Estimate   - A forecast of duration or cost for an activity.

Event   - The start and completion of the activity are marked

by events. Represented by a circle or node. Used in

arrow diagrams CPM/PERT.

 

Float   - The amount of time an activity can be delayed without

 

affecting the project end date/ duration.

 

Forward Pass   - The calculation of the early start time for activities or

the earliest occurrence time for events by proceeding

from start to completion of the project network.

Free Float   - The amount of time an activity can be delayed without

pushing the start date of the succeeding activities.

Gantt Chart   - A type of bar chart that illustrates a project schedule.

It illustrates the start and finishes dates of the terminal

 

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Project Formulation elements and summary elements of a project. Terminal

elements and summary elements comprise the work

breakdown structure of the project.

 

Late Finish (LF)   - The latest allowable date for completion of an activity.

Latest Start Date (LS)   - The latest allowable date for the start of an activity.

Leveling   - The process of effectively allocating resources to

 

activities.

 

Logic Diagram   - The project network showing the workflow sequence.

Milestone   - The recognition of an important event within a project,

usually the achievement of a key project deliverable

or a set of deliverables.

 

Monitoring   - Collecting progress information for assessing the

 

progress against the plan.

 

Network Diagram   - A diagram showing the workflow sequence for all

 

activities to be completed.

 

Network Path   - Any series of activities in a network diagram.

PERT (Program   - A project planning network technique, based on three

Evaluation and Review) time estimates (statistical approach).

Chart

Precedence Relationship   - The description of two or more activities workflow

 

sequence.

 

Project Management   - A type of software, including scheduling, cost control,

Software budget management, resource allocation, collaboration

software, communication, quality management, and

documentation or administration systems, which are

used to deal with the complexity of large projects.

Project Management   - A model of the constraints of schedule, cost, and scope

Triangle in project management.

Resource Leveling   - Applying available resources to a project to determine

task start and finish dates, project duration, and

resource utilization rates.

 

Resources   - All the people, equipment, materials, and money

 

required to complete the project.

 

Scope   - The description of the intended breadth and depth of

the project, its duration, and resource utilization rates.

Schedules   - The planned dates for performing activities, indicating

 

a specific start and completion dates.

 

Slack   - The amount of time that the occurrence of an eventcan be delayed.

Slope (Cost slope)   - The extra cost to be incurred for reducing the activity Planning Tools time by one unit. A concept used in crashing.

Total Float (TF)   - The amount of time an activity can be delayed without impacting the project duration and the end date.

Work Breakdown   - A tool that defines a project and groups the project Structure (WBS) discrete work elements in a way that helps organize and define the total work scope of the project.

Business Process   - A diagrammatic model for improving organizational Model efficiency and performance.

Deliverable   - A product, capability to perform a service, or other results that must be produced to complete a project.

Gates   - Gates provides various points during the process where an assessment of the quality of an idea or activity is undertaken.

Mapping   - Also known as Business Process Mapping is used for documenting all the processes in the business, showing the relationship between them. Provides a comprehensive visual view of the processes in an organization.

Project Formulation Model   - A simplified representation of the key properties of a real-world object, event, or relationship. A model can be verbal, physical, or mathematical.

Phase   - A set of project activities and tasks that usually result in the completion of one or more project deliverables.

Phase Review   - A checkpoint at the end of each phase to ensure that a project has achieved its stated objectives and deliverables.

Process   - A set of related activities that are performed to deliver products, services, or results. It is a systematic method for handling activities.

Project Life Cycle   - A series of phases undertaken to deliver a required project outcome.

Project Management   - The aggregation of the processes, tools, techniques, System methodologies, resources, and procedures to manage a project.

Project scope   - The work that must be performed to deliver a product, service, or result with specified features and functions.

Resource   - Labor, equipment, materials, and other inputs requiredfor a project.

Resource Allocation   - To assign available resources to the project activities in an economic way.

Resource Planning   - Determining what resources are required in what quantities and at what time to perform project activities.

Resource Limited   - A project schedule whose schedule activity, schedule Schedule start, and schedule finish dates reflect expected resource availability. Here, resource availability is constrained and may involve postponing critical activities also, impacting project duration and completion dates.

Resource Leveling   - Applying available resources to a project to determine activity start and finish dates, project duration, and resource utilization rate.

Resource Smoothing   - This is related to the time-constrained schedule. Here the activities are scheduled taking advantage of the float for activities, to ensure that the resource utilization is effective and efficient. Here the critical activities are not disturbed as project duration and completion time are very important.

State-gate Model   - Also known as a Phase gate process  - A project management technique in which the project is divided into stages separated by Gates. At each gate, the  continuation of the process is decided by a manager or steering committee.

Modeling the Project System   - An integrated set of regulatory interacting and interdependent components created to accomplish a defined objective.

Work Breakdown   - A deliverable-oriented hierarchical decomposition of the Structure (WBS) work to be executed by the project team to accomplish project objectives.

Appraisal techniques   - A supposition that something is true, a factor or statement Assumption that is taken for granted.

Base line   - The approved time-phased plan for a project, a work breakdown structure component, work package, or a schedule of activity.

Budget   - The approved estimate for the project or any work breakdown structure component or any schedule activity.

Constraint   - The state, quality, or sense of being restricted to a given course of action.

Cost-Benefit   - A criterion for comparing programs, projects, and alternatives in terms of the forecasted costs and benefits.

Contingency Plan   - A feedback position or workaround in the event of an adverse occurrence or risk event in a project.

Cost Plan   - The plan that specifies the activities and criteria for planning, structuring, and controlling the project costs.

Decision Tree Analysis   - The decision tree diagram that describes a decision under consideration and the implications of choosing one or another of the alternatives available.

Direct Costs   - The costs directly attributable to work scopes, such as labor, material, equipment, and subcontracts.

Earned Value   - The value of completed work expressed in terms of the approved budget assigned to that work for a schedule activity or work breakdown structure component.

Estimation   - A forecast of cost or duration for an activity.

Evaluation   - An orderly examination of progress at each level of objectives.

Impacts   - The long term effects of a project/program.

Project Formulation Indicator   - An indicator can be defined as something that helps us to understand where we are, where we are going, and how far we are from the goal.

Impacts   - The long-term effects of a project/program.

Inputs   - The resources invested in a project/program.

Investment Appraisal   - Techniques for determining whether an investment is likely to be profitable.

Logical Frame Work   - Tables or Matrices that identify the relationships flowing from the program process towards outcomes and external factors that may influence.

Logic Model   - A model that indicates workflow sequence.

Matrices   - A situation or surrounding substance within which something else originates, develops or is contained.

Means of Verification   - The actual type, source, and means of obtaining data that will be used to verify an indicator.

Monitoring   - The management functions of following the progress and overseeing the operations of a project.

Outputs   - The results achieved by the programs.

Outcomes   - The set of short-term or intermediate results.

Process   - The operations carried out to achieve project objectives.

Purpose   - What is hoped to be achieved by undertaking the project.

Quality   - Fitness for purpose.

Quality Plan   - A plan to ensure that the outputs are fit for a purpose and comply with relevant standards.

Quality Assurance   - Putting in place the policies, practices, and procedures for achieving the best practice and complying with standards.

Quality Control   - Checking that you have done what you are expected to do.

Risk   - An uncertain event or condition that if it occurs, has a positive or negative effect objectives of a project.

Risk Analysis   - An examination of risk areas or events to assess the probable consequences for each event (or a combination of events in the analysis) and determine possible options for risk avoidance.

Risk Breakdown   - A hierarchically-organized depiction of the identified Structure (RBS) project risks arranged by risk category and subcategory that identifies the various areas and causes of potential risks.

Risk Management   - An organized assessment and control of project risks.

S Curve Analyzing Plan   - A display of cumulative costs, labor hours or other quantities plotted against time.

Strategic Investment   - Strategic decision  - A chosen alternative that affects key Decision factors which determine the success of an organization’s strategy.

Work Package   - A deliverable or project work component at the lowest level of each branch of the work breakdown structure.

Base-line   - The planned estimates of a project – cost, time, and quality comprise Base-line.

Control Parameter   - The variable to be controlled; in project management

control parameters are – time, cost, and performance.

Concurrent control   - Control exercised over a process even as the process is running.

Project Control   - The act or process of reducing the gap between the plan and the actual.

Discounted evaluation   - Techniques based on the calculation of cost and benefit Techniques after discounting the future streams of expenditure andincome.

Project Appraisal   - Analysis of a project before starting the project.

Project Evaluation   - Analysis of a project after it is executed.

Undiscounted   - Techniques based on estimation of cost and benefits

evaluation Techniques without discounting the future streams of expenditure to

be incurred on the project and income generated by it.

Balanced Scorecard   - A method of measurement of project performance.

Project Audit   - Post-project assessment as to whether the project

 

achieved its goals and\objectives.

Project Closure   - Closing phase of a project.

Redeployment   - Transferring the resources of the project being closed to

 

another project.

 

Continuous   - A structured measurement-driven process that

Improvement Process continually reviews and improves performance. It is an

 

offshoot of Kaizen.

 

Kaizen   - It is a Japanese word meaning ‘improvement’ and the

name of a Quality Improvement movement started

during the 1950s by W. Edwards Deming and Joseph

M. Juran.

 

LEAN   - Lean is a method of activities and techniques for

operating a service operation or a manufacturing

operation. The fundamental principle of lean is that

companies must endeavor to remove from the business

all activities that do not add value.

 

PDCA Cycle   - The PDCA Cycle is one of the most used continuous

improvement tools, according to the American Society

for Quality. This tool incorporates four steps  - plan, do,

check, and act.

 

Six Sigma   - Six Sigma is a continuous improvement tool that relies

on a data-inspired philosophy of quality improvement.

Compensation   - Payment in monetary form to employees for

 

the services rendered.

 

HRM   - HRM deals with all the issues related to

manpower in the organizations and seeks to

manage their ‘human assets’ effectively.

Integration   - It is the reconciliation of interests of the

individual members of the organization with

those of the organizational interests.

Maintenance   - It is an HRM function relating to maintaining

deals with satisfying manpower in the

organization through the provision of

welfare facilities (medical, educational,

recreation, housing, transport, and so on),

transfers, promotions to suit individual

interests keeping in view the organizational

requirements.

Personnel Management   - It deals with the activities like procurement, compensation, development, integration and separation, and also service conditions of the employees to achieve the targets of the organizations.

Procurement   - Procurement means acquiring the manpower required by an organization from time-to-time

Separation   - It is an HRM function that is important when an employee leaves an organization due to

resignation, dismissal, permanent disability, or death. The company should settle the payment of gratuity and other retirement benefits to the employees.

Group Discussion   - It is a process of making applicants discuss some current or subject-based topic so

that the employer can understand the communication, leadership, coordination, teamwork, empathy-related skill in theapplicants.

Human Resource Planning   - To utilize human resources to their full potential, planning is a must. If planning is effective, meaningful, and strategically right, every personnel of the organization would be able to contribute much in their endeavor.

Psychological Tests   - Test to judges the psychological behavior in selecting an employee.

Recruitment   - It is a process of searching the candidates to employ and stimulating them to apply for jobs in the organization.

Training Evaluation   - Training evaluation is a systematic process of collecting and analyzing information Human Resource Management for and about a training activity, which can be used for planning and guiding decision-making on the assessment, relevance, and effectiveness of various training components.

Training Needs Assessment   - The entire process of deciding on what to include in the content of the training  programme is called determining training needs.

Training Needs   - Training needs of individuals/participants are important through the overall training objectives of any training programme and it should get topmost priority. And the needs should include individuals/participants’ needs and his/her organizational needs.

Training Process   - As training helps in building capacities among the individuals to improve their job performance, the process of training is through which it is done is important. The process of training depends on the background of the trainees and the subject area of the training. Major steps in the training process include training needs identification, curriculum development deciding on the training methods, and training evaluation.

 

Training   - Training helps in building capacities among the employees to attain their strategies and responsibilities with regained vigor and new knowledge and skills through which they get satisfaction and organization to which they belong are also benefited.

HRD Strategies   - The plan that characterizes how the human resources would be utilized through the use of an integrated array of training, organizational development and career development efforts to achieve individual, organizational objectives.

Human Resource Development (HRD)  - It is a strengthening of individuals and aims at the improvement of procedural, organizational and intra- institutional capabilities of institutions and organizations in charge of development.

Human Resource Management (HRM)  - It is the art of managing the human workforce in an organization in an optimum manner having benefits to both employees as well as organization in achieving the organizational goal.

Human Resource   - It refers to the knowledge, skills, creative Human Resource Development abilities, talents, aptitude, values and beliefs of an organization’s workforce.

Management Development   - Management development is an activity designed to improve the performance of existing managers, provide a supply of managers to meet the need of organizations in future and extend the understanding of the management activity.