Download the 8th Pay Scale Gazette by Bangladesh Govt.

Posted by Ripon Abu Hasnat on Tuesday, December 15, 2015 | 0 comments | Leave a comment...

8th Pay Scale Gazette by the Peoples Republic of Bangladesh will publish after few hours. You cand download this gazette from this site after publishing the gazette. Government same Government employees are facilities in this pay scale. There is no 1st class, 2nd class, 3rd and 4th class employee’s category in this 8th pay scale gazette.  
The 8th Pay Scale of Bangladesh includes Bangla Noboborsho allowances of 20% on the basic salary. The government on Sep 7 approved the new pay scale for its employees with a highest basic pay of Tk 78,000 and a minimum of Tk 8,250. The basic pay for officers and other employees would take retroactive effect from July 1 this year, while the allowances would be paid from July 1, 2016. 8th Pay Scale is so helpful for all Government and semi Government employees which will declare in 8th Pay Scale Gazette. 
You can find the 8th Pay Scale Gazette by Bangladesh Govt. from the Gazettes Archive of Finance Ministry website. To find the 8th Pay Scale Gazette visit 8th Pay Scale Gazette. If you do not find the 8th Pay Scale Gazette to download 8th Pay Scale Gazette, then puts your eye in this site.
Pay Scale 2015 (Civil)
Pay Scale 2015 (Public Bodies & Autonomous)
Pay Scale 2015 (Bank, Insurance & Financial Institutions)
Pay Scale 2015 (Police)
Pay Scale 2015 (Border Guard Bangladesh, BGB)
Download The 8th Pay Scale Gazette

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Management Accounting Math Solution

Posted by Ripon Abu Hasnat on Thursday, November 5, 2015 | 0 comments | Leave a comment...

Management Accounting Math Solution for DAIBB Banking Diploma Examination

Management Accounting Math Solution (Break Even Math)

Management Accounting Math Solution (Break Even Math-2)

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81 Banking Diploma JAIBB & DAIBB Examination Result

Posted by Ripon Abu Hasnat on Sunday, September 6, 2015 | 0 comments | Leave a comment...

81 Banking Diploma Examination Result will be published soon in the Official site of Institute of Bankers Bangladesh. The 81 JAIBB and DAIBB examination was held in June, 2015.

You can get result of 81 Banking Diploma Examination in this page. Keep your eyes always in this site, in any time of this month, the result will be published. We ensure you to give you the 81 Banking Diploma Examination Result first. 81 Banking Diploma Examination Result will publish in PDF format and the JAIBB and DAIBB result Bank wise.
Download your 81 Banking Diploma Examination Result

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JAIBB and DAIBB Form Fill-up Instructions by The Institute of Bankers, Bangladesh (IBB)

Posted by Ripon Abu Hasnat on Saturday, August 29, 2015 | 0 comments | Leave a comment...

The Institute of Bankers, Bangladesh (IBB) has decided a new way of form fill-up for attending JAIBB and DAIBB exam. The candidates don’t require collecting printed form from IBB. From now the candidate has to collect the registration and examination form from Institute’s website. The details are as follows:



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Collecting Banker as Holder for Value-Explain

Posted by Ripon Abu Hasnat on Sunday, June 14, 2015 | 0 comments | Leave a comment...

A collecting banker is holder for value if he gives the value of the cheque in any form to its customer before collecting the proceeds of the cheque deposited by the latter. He does not remain an agent of the customer, but becomes the owner of the cheque in his own right since he has paid value for it, and has acquired the ownership right in good faith. In such a situation, the banker is called holder for value and he is also the holder in due course.

According to Paget, a banker becomes an holder for value in the following ways:
(a) by lending further on the strength of the cheque;
(b) by paying the amount of the cheque or part of it in cash or in account before it is cleared;
(c) by agreeing that the customer may draw before the cheque is cleared;
(d) by accepting the cheque in avowed reduction of an existing overdraft;
(e) by giving cash over the counter for the cheque at the time it is deposited in for collection.

In the above circumstances, the banker becomes the holder for value. Further, if he proves that he gave value for a cheque in good faith, he will be able to resist any claim by the true owner provided that
(a) the cheque was not tainted with forgery,
(b) he had no notice of any previous dishonour or of any defect in the title of his customer,
(c) the cheque was not crossed ‘not negotiable’
(d) the cheque was not overdue for the purpose of negotiation, and
(e) the cheque was regular on the face of it in all respects.


If the cheque is dishonored, the collecting banker can use all the previous parties after giving them the notice of dishonor. The banker undertakes a risk also when he acts as a holder for value. He will be in a difficulty if last, but one endorsement proves to be a forged one. The banker will be liable to the true owner of the cheque. However, he can recover the amount from his customer.

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Define Collecting banker

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Collecting banker means the banker who collects the cheques and bills on behalf of the customers. In other words, every crossed cheque is necessarily to be collected through any bank, which is known as collecting banker. As Sir John Paget has rightly said “Looking at the restriction on the encashment of crossed cheques, save through a bank and the universal and legally encouraged use of crossed cheques the collection of such cheques must be regarded as an inherent part of banker’s business.”

While collecting the cheques of a customer, the banker may act in the capacity of either-
(a) as a holder for value, or
(b) as an agent of the customer.

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"Collecting Banker as an Agent of the Customer"-Explain the Statement

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When a collecting banker acts as an agent of the customer, he credits the latter’s account with the amount of the cheque after the proceeds of the cheque are actually collected from the drawee banker. The customer can draw the amount after his account is credited with the proceeds. In such a case, banker acts as an agent of his customer and does not get better title to the cheque than that of the customer. If the title of the customer is defective, the banker will run the risk of being liable to the true owner if it collects the cheque. If the cheque collected by the banker does not belong to his customer, the banker will be liable for ‘conversion of money’ or in other words, for illegally interfering with the rights of the true owner of the cheque.
As an agent of the customer, the collecting banker is a mere “conduit pipe to receive payment of the cheque from the bank on which it is drawn and holds the proceeds at the disposal of the customer.” Like any other agent, the banker has to perform his duties diligently for the customer who has paid in his cheques. If he delays or does not exercise the normal skills expected, he will be liable to his customer. It has been held that the reasonable time would be presenting the cheque within one day after the receipt thereof where the cheque is drawn on a bank in the same place, or forwarding or presenting it on the day following the receipt thereof where the cheque is drawn on a bank in another place. After the expiry of reasonable time, the customer paying in the cheque for collection is entitled to presume that it has been collected and the proceeds thereof credited to his account.

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Statutory Protection to Collecting Banker

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Section 131 of the Negotiable Instruments Act provides protection to a collecting banker who receives payment of a crossed cheque or draft on behalf of his customers. According to Section 131 of the Act “a banker who has, in good faith and without negligence, received payment for a customer of a cheque crossed generally or specially to himself shall not, in case the title to the cheque proves defective, incur any liability to the true owner of the cheque by reason only of having received such payment.”
The protection provided by Section 131 is not absolute but qualified. A collecting banker can claim protection against conversion if the following conditions are fulfilled.

1.     Good Faith and Without Negligence:
Statutory protection is available to a collecting banker when he receives payment in good faith and without negligence.
The phrase in “good faith” means honestly and without notice or interest of deceit or fraud and does necessarily require carefulness. Negligence means failure to exercise reasonable care. It is not for the customer or the true owner to prove negligence on the part of the banker. The burden of proving that he collected in good faith and without negligence is on the banker. The banker should have exercised reasonable care and deligence. What constitutes negligence depends upon facts of each case.

Following are a few examples which constitute negligence:
(a) Failure to obtain reference for a new customer at the time of opening the account.
(b) Collection of cheques payable to ‘trust accounts’ for crediting to personal accounts of a trustee.
(c) Collecting for the private accounts of partners, cheques payable to the partnership firms.
(d) Omission to verify the correctness of endorsements on cheques payable to order.
(e) Failure to pay attention to the crossing particularly the “not negotiable crossing.”

2. Collection for a Customer:
Statutory protection is available to a collecting banker if he collects on behalf of his customer only. If he collects for a stranger or noncustomer, he does not get such protection. As Jones aptly puts if “duly crossed cheques are only protected in their collection, if handled for the customer”. A bank cannot get protection when he collects a cheque as holder for value. In Great Western Railway Vs London and Country Bank it was held that “the bank is entitled for protection as it received collection for an employee of the customer and not for the customer.”

3. Acts as an Agent: A collecting banker must act as an agent of the customer in order to get protection. He must receive the payment as an agent of the customer and not as a holder under independent title. The banker as a holder for value is not competent to claim protection from liability in conversion. In case of forgery, the holder for value is liable to the true owner of the cheque.

4. Crossed Cheques:
Statutory protection is available only in case of crossed cheques. It is not available in case uncrossed or open cheques because there is no need to collect them through a banker. Cheques, therefore, must be crossed prior to their presentment to the collecting banker for clearance. In other words, the crossing must have been made before it reached the hands of the banker for collection. If the cheque is crossed after it is received by the banker, protection is not available. Even drafts are covered by this protection.
To conclude, it is necessary that the collecting banker should have acted without negligence if he wants to claim statutory protection under Section 131 of the said Act. The statutory protection is available to the banker if he collects a cheque marked “Not Negotiable” for a customer, whose name is not used as the payee there-in, provided the requirements of the said sections are duly complied with.

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Duties and Responsibilities of a Collecting Banker

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The duties and responsibilities of a collecting banker are discussed below:
1. Due care and diligence in the collection of cheque.
2. Serving notice of dishonor.
3. Agent for collection.
4. Remittance of proceeds to the customer.
5. Collection of bill of exchange.

1. Due Care and Diligence in the Collection of Cheques:
The collecting banker is bound to show due care and diligence in the collection of cheques presented to him. In case a cheque is entrusted with the banker for collection, he is expected to show it to the drawee banker within a reasonable time. According to Section 84 of the Negotiable Instruments Act, 1881, “Whereas a cheque is not presented for payment within a reasonable time of its issue, and the drawer or person in whose account it is drawn had the right, at the time when presentment ought to have been made, as between himself and the banker, to have the cheque paid and suffers actual damage, through the delay, he is discharged to the extent of such damage, that is to say, to the extent to which such drawer or person is a creditor of the banker to a large amount than he would have been if such cheque had been paid.”



In case a collecting banker does not present the cheque for collection through proper channel within a reasonable time, the customer may suffer loss. In case the collecting banker and the paying banker are in the same bank or where the collecting branch is also the drawee branch, in such a case the collecting banker should present the cheque by the next day. In case the cheque is drawn on a bank in another place, it should be presented on the day after receipt.

2. Serving Notice of Dishonour:
When the cheque is dishonoured, the collecting banker is bound to give notice of the same to his customer within a reasonable time.
It may be noted here, when a cheque is returned for confirmation of endorsement, notice must be sent to his customer. If he fails to give such a notice, the collecting banker will be liable to the customer for any loss that the customer may have suffered on account of such failure.
Whereas a cheque is returned by the drawee banker for confirmation of endorsement, it is not called dishonour. But in such a case, notice must be given to the customer. In the absence of such a notice, if the cheque is returned for the second time and the customer suffers a loss, the collecting banker will be liable for the loss.

3. Agent for Collection:
In case a cheque is drawn on a place where the banker is not a member of the ‘clearing-house’, he may employ another banker who is a member of the clearing-house for the purpose of collecting the cheque. In such a case the banker becomes a substituted agent. According to Section 194 of the Indian Contract Act, 1872, “Whereas an agent, holding an express or implied authority to name another person to act in the business of the agency has accordingly named another person, such a person is a substituted agent. Such an agent shall be taken as the agent of a principal for such part of the work as is entrusted to him.”

4. Remittance of Proceeds to the Customer:
In case a collecting banker has realised the cheque, he should pay the proceeds to the customer as per his (customer’s) direction. Generally, the amount is credited to the account of the customer on the customer’s request in writing, the proceeds may be remitted to him by a demand draft. In such circumstances, if the customer gives instructions to his banker, the draft may be forwarded. By doing so, the relationship between principal and agent comes to an end and the new relationship between debtor and creditor will begin.

5. Collection of Bills of Exchange:
There is no legal obligation for a banker to collect the bills of exchange for its customer. But, generally, bank gives such facility to its customers. In collection of bills, a banker should examine the title of the depositor as the statutory protection under Section 131 of the Negotiable Instruments Act, 1881.
Thus, the collecting banker must examine very carefully the title of his customer towards the bill. In case a new customer comes, the banker should extend this facility to him with a trusted reference.


From the above discussion, there is no doubt to say that the banker is acting as a mere agent for collection and not in the capacity of a banker. If the customer allows his banker to use the collecting money for its own purpose at present and to repay an equivalent amount on a fixed date in future the contract between the banker and the customer will come to an end.

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Define Performance management

Posted by Ripon Abu Hasnat on Saturday, June 13, 2015 | 0 comments | Leave a comment...

Performance management is the process of identifying, measuring, managing, and developing the performance of the human resources in an organization. Basically we are trying to figure out how well employees perform and then to ultimately improve that performance level. When used correctly, performance management is a systematic analysis and measurement of worker performance (including communication of that assessment to the individual) that we use to improve performance over time.


In other words, Performance management is an ongoing process of communication between a supervisor and an employee that occurs throughout the year, in support of accomplishing the strategic objectives of the organization. The communication process includes clarifying expectations, setting objectives, identifying goals, providing feedback, and reviewing results.

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Characteristics of an Ideal Performance Management System

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The following is a set of characteristics that is likely to allow a performance management system to be successful. Practical constraints may not allow for the implementation of all these features.
However, we should strive to place a check mark next to each of these characteristics, as the more features that are checked, the more likely it is that the system will live up to its promise.

Strategic congruence
The system should be congruent with the unit’s and organization’s strategy. In other words, individual goals must be aligned with unit and organizational goals.

Thoroughness
The system should be thorough regarding four dimensions. All employees should be evaluated; all major job responsibilities should be evaluated, the entire review period, and not just the few weeks/months before the review, on positive aspects as well as those in need of improvement.

Practicality
Systems that are too expensive, time-consuming, and convoluted will obviously not be effective. On the other hand, good systems are available and easy to use (e.g., performance data are entered using user-friendly software), and are acceptable to those who want to use them for decisions.

Meaningfulness
The system must be meaningful in several ways. First, the standards and evaluations conducted for each job function must be considered important and relevant. Second, performance assessment must emphasis only those functions under the control of the employee. Third, evaluations must take place at regular intervals and at appropriate moments. Fourth, the system should provide for continuing skill development of evaluators. Finally, the results should be used for important personnel decisions.

Specificity
A good system should be specific, meaning that it should provide detailed and concrete guidance to employees about what is expected of them and how they can meet these expectations.

Identification of effective and ineffective performance
The performance management system should provide information allowing for the identification of effective and ineffective performance. That is, the system should allow for distinguishing between effective and ineffective behaviors and results, thereby also allowing for the identification of employees displaying various levels of performance effectiveness.

Reliability
A good system should include measures of performance that are consistent and free of error. For example, if two supervisors provided ratings of the same employee and performance dimensions, ratings would be similar.

Validity
The measures of performance should also be valid. In this context, measures are relevant (i.e., include all critical performance facets), are not deficient (i.e., do not leave any important aspects out), and are not contaminated (i.e., do not include factors outside the control of the employee).

Acceptability and fairness
A good system is acceptable to and perceived as fair by all participants. Perceptions of fairness are subjective, and the only way to know whether a system is seen as fair is to ask the participants.

Inclusiveness
Good systems include input from multiple sources on an ongoing basis.
First, the evaluation process must represent the concerns of all the people who will be affected by the outcome. Consequently, employees must participate in the process of creating the system by providing input regarding what behaviors and/or results will be measured and how.
Second, employee input about their performance should be gathered from the employees themselves before the appraisal meeting.19

Openness
Good systems have no secrets. First, performance is evaluated frequently, and performance feedback is provided on an ongoing basis. So employees are continually informed of their performance. Second, the appraisal meeting consists of a two-way communication process, where information is exchanged and not just delivered from the supervisor to the employee. Third, standards should be clear and communicated on an ongoing basis. Finally, communications are factual, open and honest.

Correct ability
The process of assigning ratings should minimize subjective aspects. However, it is virtually impossible to create a completely objective system because human judgment is an important component of the evaluation process.

Standardization
Good systems are standardized. This means that performance is evaluated consistently across people and time. To achieve this goal, the ongoing training of the individuals in charge of appraisals, usually managers, is a must.

Ethicality

 Good systems comply with ethical standards. This means that the supervisor suppresses her personal self-interest in providing evaluations. In addition, the supervisor evaluates only performance dimensions for which she has sufficient information, while respecting the privacy of the employee.

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Aims and Role of Performance Management Systems

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The information collected by a performance management system is most frequently used for salary administration, performance feedback and the identification of employee strengths and weaknesses. In general, however, performance management systems can serve the following purposes:  (a) strategic, (b) administrative, (c) information, (d) developmental, (e) organizational maintenance, and (f) documentation. Let’s consider each of these purposes in turn.

Purposes served by a performance management system

• Strategic Purpose:
To help top management achieve strategic business objectives

• Administrative Purpose:
To furnish valid and useful information for making administrative decisions about employees

• Information Purpose:
To inform employees about how they are doing and about the organization’s and the supervisor’s expectations

• Developmental Purpose:
To allow managers to provide coaching to their employees

• Organizational maintenance Purpose:
To provide information to be used in workplace planning and allocation of human resources

• Documentation Purpose:

To collect useful information that can be used for various purposes (e.g., test development, personnel decisions)

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Disadvantages/ Dangers of Poorly Implemented Performance Management Systems

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Some of the negative consequences associated with low-quality and poorly implemented systems. These are discussed below:

1. Employees may quit due to results.
If the process is not seen as fair, employees may become upset and leave the organization. They can leave physically (i.e., quit) or withdraw psychologically (i.e., minimize their effort until they are able to find a job elsewhere).

2. False or misleading information may be used.
If a standardized system is not in place, there are multiple opportunities for fabricating information about an employee’s performance.

3. Self-esteem may be lowered.
Self-esteem may be lowered if feedback is provided in an inappropriate and inaccurate way. This, in turn, can create employee resentment.

4. Time and money are wasted.
Performance management systems cost money and quite a bit of time. These resources are wasted when systems are poorly designed and implemented.

5. Relationships are damaged.
As a consequence of a deficient system, the relationships among the individuals involved may be damaged, often permanently.

6. Motivation to perform is decreased.
Motivation may be lowered for many reasons, including the feeling that superior performance is not translated into meaningful tangible rewards (e.g., pay increase) or intangible rewards (e.g., personal recognition).

7. Employees suffer from job burnout and job dissatisfaction.
When the performance assessment instrument is not seen as valid, and the system is not perceived as fair, employees are likely to feel increased levels of job burnout and job dissatisfaction. As a consequence, employees are likely to become increasingly irritated.6

8. There is increased risk of litigation.
Expensive lawsuits may be filed by individuals who feel they have been appraised unfairly.

9. Unjustified demands are made upon managers’ resources.
Poorly implemented systems do not provide the benefits that well-implemented systems provide, yet they still take up managers’ time. Such systems will be resisted because of competing obligations and allocation of resources (e.g., time). Worse, managers may simply choose to avoid the system altogether.

10. Standards and ratings vary and are unfair.
Both standards and individual ratings may vary across and within units, and may also be unfair.

11. Biases can replace standards.
Personal values, biases and relationships are likely to replace organizational standards.

12. Mystery surrounds how ratings were derived.

Because of poor communication, employees may not know how their ratings are generated or how the ratings are translated into rewards.

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Advantages/ Contributions of Performance Management

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There are many advantages associated with the implementation of a performance management system. A performance management system can make the following important contributions:3

1. Motivation to perform is increased.
Receiving feedback about one’s performance increases the motivation for future performance. Knowledge about how one is doing and recognition of one’s past successes provide the fuel for future accomplishments.

2. Self-esteem is increased.
Receiving feedback about one’s performance fulfils a basic need to be appreciated and valued at work. This, in turn, is likely to increase employees’ self-esteem.

3. Managers gain insight about subordinates.
Direct supervisors and other managers in charge of the appraisal gain new insights into the person being appraised. Gaining new insights into a person’s performance and personality will help the manager build a relationship with that person. Also, supervisors gain a better understanding of each individual’s contribution to the organization. This can be useful for direct supervisors as well as for supervisors once removed.

4. The job definition and criteria are clarified.
The job of the person being appraised may be clarified and defined more clearly. In other words, employees gain a better understanding of the behaviors and results required of their specific position.

5. Self-insight and development are enhanced.
The participants in the system are likely to develop a better understanding of themselves and of the kind of development activities of value to them as they progress through the organization. Participants in the system also gain a better understanding of their strengths and weaknesses, which can help them better define future career paths.

6. Personnel actions are more fair and appropriate.
Performance management systems provide valid information about performance, which can be used for personnel actions such as merit increases, promotions and transfers, as well as terminations. In general, a performance management system helps ensure that rewards are distributed on a fair and credible basis.

7. Organizational goals are made clear.
The goals of the unit and the organization are made clear, and the employee understands the link between what he or she does and organizational success.  Performance management systems can help improve employee acceptance of these wider goals.

8. Employees become more competent.
An obvious contribution is that the performance of employees is improved. In addition, there is a solid foundation for developing and improving employees by establishing developmental plans.

9. There is better protection from lawsuits.
Data collected through performance management systems can help document compliance with regulations. When performance management systems are not in place, arbitrary performance evaluations are more likely, resulting in an increased exposure to litigation.

10. Timely differentiation between good and poor performers.
Performance management systems allow for a quicker identification of good and poor performers. Also, they force supervisors to face up to and address performance problems on a timely basis.

11. Supervisors’ views of performance are communicated more clearly.
Performance management systems allow managers to communicate to their subordinates their judgments regarding performance. Thus there is greater accountability in how managers discuss performance expectations and provide feedback.  When managers possess these competencies, subordinates receive useful information about how their performance is seen by their supervisor.

12. Organizational change is facilitated.

Performance management systems can be a useful tool to drive organizational change. Employees are provided with training in the necessary skills, and are also rewarded for improved performance so that they have both the knowledge and the motivation to improve product quality and customer service. Performance management provides tools and motivation for individuals to change, which, in turn, helps drive organizational change.

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Distinction between Administration and Management

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Although the terms ‘Administration’ and ‘Management’ may appear to be similar, they are actually different. In our daily conversation we use the two terms interchangeably. Administration is concerned with laying down suitable policies for the whole concern whereas management will simply execute these.
Administrators are the owners of the business.

Managers, on the other hand, are the salaried employees of the concern. The basic difference between administration and management is given below.

Sl.No
ADMINISTRATION
MANAGEMENT
1.
All policy decisions are made by the administration.
It is concerned with the implementation of the policies. Certain routine decisions may be made by the managers on less important matters.
2.
Administrators are the owners of the concern.
Managers are the paid employees of the concern.
3.
Administration is basically interested in results, i.e., profitability, sales, future prospects and so on.
Managers actually work for the remuneration they get. They direct their efforts towards the attainment of the goal set by the administration.
4.
Administrators do not take part in the daily activities of the concern.
The managers are responsible to the administrators on the daily work done in the concern.
5.
The decisions made by the administrators
are influenced by the availability of capital,
Government regulations and such other factors.
The managers are empowered to take decisions only on routine matters. They are usually guided by opinions, values and beliefs in making decisions. They also act based on precedents. i.e., past happenings.
6.
Administration is almost a permanent body. No major change, therefore, takes place in it.
Management is not a static body. Managers may resign, retire or may even be removed from service.
7.
It is a top-level function.
It is a lower-level function.

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Discuss the role of effective business communication within and outside the organization.

Posted by Ripon Abu Hasnat on Thursday, June 11, 2015 | 0 comments | Leave a comment...

A business Organization is a group of people associated to earn profit. Various kinds of activities have to be performed by the people of an organization so as to earn profit. These activities need an effective and systematic communication. Without efficient communication, one cannot even imagine to do work and hence will be unable to earn profit. Since the aim of business organization is to earn profit, the organization will die without profit and this death is a result of the absence of communication. This is why communication is called life blood of a business organization. We can prove this statement in the following manner.

COMMUNICATION INSIDE AN ORGANIZATION:
Different employees and officials in an organization need to communicate to each other. This internal communication with its importance is shown in the following way:
1. Setting goals and Objectives:-
Mostly, the organizations have a variety of formal and informal objectives to accomplish. These objectives may be financial results, product quality, market dominance, employee’s satisfaction, or service to customers. So the communication enables all the persons in an organization to work towards a common purpose.

2. Making and Implementing decision:-
In order to achieve the objective, people in a business organization collect facts and evaluate alternatives, and they do so by reading, asking questions, talking or by plain thinking. These thoughts are put into a written form. Once a decision has been made, it has to be implemented which requires communication.

3. Appraisal:-
Having implemented the decision, management needs to determine whether the desired outcome is being achieved. Statistics on such factors as cost, sales, market share, productivity and inventory levels are compiled. This is done through computers, manual papers, memos or reports.

4. Manufacturing the products:-
Getting an idea for a new product out of someone’s head, pushing it through the production process and finally getting the product also require communication. Designing the plan regarding product, introducing the workers, purchasing raw material, marketing and distributing the product all require effective communication.

5. Interaction between employer & employee:-
Employees are informed about policies and decisions of employers through circulars, reports, notices etc. Employers also get in touch with employees through application, complaint etc. So, communication plays a vital role in the interaction of employer and employee.

EXTERNAL COMMUNICATION:
1. Hiring the employees:-
If a company wants to hire someone, it advertises the vacancy, receives applications, calls the candidates, takes the interview and then offers job to the successful candidates. The whole process requires communication.

2. Dealing with customers:-
Sales letters and brochures, advertisements, personal sales calls, and formal proposals are all used to stimulate the customer’s interest. Communication also plays a part in such customer related functions as credit checking, billing, and handling complaints and questions.

3. Negotiating with suppliers and financiers:-
To obtain necessary supplies and services, companies develop written specification that outlines their requirement. Similarly, to arrange finance, they negotiate with lenders and fill out loan applications.

4. Informing the investors:-
Balance sheet, income statement, and ratio analysis are used to inform the investors regarding performance of business.

5. Interacting with Govt.:-

Government agencies make certain rules to regulate the economy. These rules are communicated to organizations through various papers. These organizations try to fulfill, these requirement like filling taxation form and other documents.

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