168 2010 - Way Forward

2009-12-31T05:17:00.000-08:00

This would be my last post in this year. Some of the wish lists for the year 2010

Learn car drive, music instrument(key board) and swimming

Read atleast one book in a month

Trim down fixed financial commitments (atleast by 20%)

More postings in blog (minumum 20 in a month)

With Cheers

Naras

Individuals promoted not on performance. Is it true?

2009-12-20T20:40:00.000-08:00

Narasimhan A R

It was almost the fag end of the week, Saturday evening just before closing hours; HR manager came up with the task “Promotion for the year”. It is usual that at the end of each year employees are assessed on their performance. After having done performance, one of the difficulties on both HR and the supervisor part is to choose employees for promotion. The question here is “Why is it so difficult to decide promotion?”

Let us assume that an individual is promoted to the next level based on his performance. This evidences that an employee has met the standard. The issue is not stopped here. What is the guarantee that the promoted employee will perform well in his new job. That is the moot point to test in the given situation.

The Peter Principle “Promotions and declining productivity” suggests that the individuals performance will become worse after being promoted. This originates from the hypothesis that each individual can be identified in to three categories:

i. an individual performing worse,

ii. an individual performing bad, and

iii. an individual performing good.

An employee who fits in the first category will definitely be terminated soon; second one will often be under tremendous pressure to perform good thus striving hard to third category. Ironically, the probability of sustaining good performer for a longer period is less. Other things remains equal, this implies that those who do not get a promotion should do better after being turned down than they did before. Also it suggests that an individual who is good at one job may not always be good at another job.

Suppose a company decides to study the effect of giving promotions thus takes longer period to make such decisions then the impact would be one, on positive side the longer the Company waits to make a promotion decision, the better the information but on negative side wrong job will be with one individual for a longer time. This may end up maximum attrition. Then how to offset both extremes?

Promote individual at random. Statistics and history shows that giving promotions using computer model on random basis works most efficiently. This is based on the theory called Parrondo's Paradox. It is a game theory wherein each having higher probability of losing than winning. How it is proved this is the best model? Though it may ruining employee morale, (ie., performer may not be rewarded) when employees know promotions are at random, individuals like creativity most and work better.

Greatest shame to ICAI

2009-12-09T19:49:00.000-08:00

Booth capturing is a type of electoral fraud, found primarily in India, in which party loyalists "capture" a polling booth and vote in place of legitimate voters to ensure that their candidate wins. - source : wikipedia

HBL Reports

The elections to the 21st Central Council and the 20th Regional Councils of the Institute of Chartered Accountants of India (ICAI) ran into rough weather after a booth capturing incident.

At least four unidentified men, including one toting a pistol, stormed an ICAI election booth at Vaishali (near Ghaziabad) on Saturday, tampering the ballot box and stuffing ballot papers, sources said.

The returning officer to the elections and ICAI Secretary, Mr T. Karthikeyan, confirmed the incident and added that a First Information Report (FIR) had been lodged with a police station.

The ICAI President, Mr Uttam Prakash Agarwal, however, denied the booth-capturing incident. “No such instance of booth capturing has so far been brought to my notice,” he said.

Mr Karthikeyan declined to comment on whether any decision has been taken on re-poll at the same region. The polling booth, which was manned by a senior Deputy Director of the ICAI, came under the central region of the ICAI.

This polling booth had two ballot boxes — one each for the Central Council and the Regional Council. The officer in-charge informed the ICAI secretary about the booth capture.

The official is understood to have rushed to the Vaishali booth with officers of the Institute, sources said. The police were also called in.

It is learnt that only the Central Council box was tampered with. In all, 14 candidates from the central region are in the fray for positions in the Central Council.

The incident came as a shock to the chartered accountants fraternity. This was the first time in the history of the ICAI that a booth capturing incident had occurred at Council elections, a top ICAI official said.

This is another version of politics in a professional body.It looks to me very pathetic while I read the statement given by the president of the Institute.

Letter to Son Part II

2009-08-27T02:10:00.000-07:00

Letter to Son Part I

2009-08-26T07:43:00.000-07:00

This one is my grand father's letter to his son(Fathers' elder brother).

Born with cerebral palsy ........

2009-08-25T10:29:00.000-07:00

Reported in Express News Service, is this amazing story of a lad born with cerebral palsy cracking the country's second toughest professional examination.

In what could be an inspiration for several others of his kind, Ajit Shekhawat (28), who was born with cerebral palsy, cleared the Chartered Accountants (CA) exam recently.

Ajit is at present working in an eye hospital in Udaipur.

His father, Mahavirsinh, who works as a section officer in the Gujarat Secretariat said: “It was Ajit's aim to become a CA since he passed his Class XII. It was because of his sheer dedication and self confidence that he could achieve his aim.”

Ajit was treated for two years at a Mumbai hospital at the age of five. His treatment continued in Gandhinagar later on and Ajit continued his studies and completed his graduation in commerce from Gandhinagar. He then started preparing for his CA examination at home and cleared it.

born with cerebral palsy, cleared the Chartered Accountants (CA0- exam

2009-08-25T10:20:00.000-07:00

Radio Part II

2009-08-24T22:34:00.000-07:00

Radio Part 1

2009-08-24T22:32:00.000-07:00

Radio

2009-08-24T22:30:00.000-07:00

Grahapravesh Invitation

2009-08-24T22:21:00.000-07:00

Some significances in this POKISHAM
1. Virodhi Varusham (Current Tamil year is same)
2. Star : Avittam (My father's birth star)
3. 1950 : My Mother's year of birth

Amanushyam

2009-08-19T22:39:00.000-07:00

This is just an attempt to write.

Tholaivin Thollai

2009-08-01T01:07:00.000-07:00

Let me know your observations

Naras

Unnai ninaikatha neram

2009-08-01T00:54:00.001-07:00

Keep trying .......... how is it?

Naras

Unnai ninaikatha neram........

2009-08-01T00:54:00.000-07:00

Keep trying .......... how is it?

Naras

Kandanal Mudhalay

2009-07-28T17:55:00.000-07:00

Y-P-K

2009-07-27T21:37:00.000-07:00

Kavinyar Narasimhan

2009-07-27T21:32:00.000-07:00

Do you see any resemblance of vairamuthu?

Ninaivalaigal

2009-07-27T21:23:00.000-07:00

Try out simple solution

2009-07-04T04:19:00.000-07:00

With the heat of the summer,even in July,I thought of sharing a tip to keep you cool.

Take a real situation :

Many times we try all sorts of solutions even for a simple cough. we try anti antibiotics of all colors and sizes,syrups, inhalers, and nose drops, vaporisers, steam inhalation with and without additives

We never be comfortable with one single medicine - simple home remedies - One good example is we can always try going to a nearby temple (Anjaneyar)to have tulasi theertham or we can even try drinking ginger powder with ....eucalyptus oil will help,just a hot water gargle will do best.

But these are only at advisory level.We look for more sophisticated, complicated solution.Our satisfaction level is directly proportionate to the sophistication and its complexity.

Have you tried brandy with hot water?

Poda Podi

2009-07-01T07:44:00.000-07:00

Poda Podi
Poda Podi
Poda Podi
Poda Podi
Poda Podi
Poda Podi
Poda Podi
Poda Podi
Poda Podi
Poda Podi
Poda Podi
Poda Podi
Poda Podi
Poda Podi
Poda Podi
Poda Podi
Poda Podi
Poda Podi

As simple as this writing lyrics for a song. You can see my kavidhai in this page in the coming days.

Naras

We are worried either way

2009-06-19T20:26:00.000-07:00

WPI-based inflation peaked last August at 12.5 per cent, before falling to minus 1.61per cent for the week ended June 6.

This results in an increase in the real value of money — a negative inflation rate.
conversely,inflation reduces the real value of money over time.To eliminate this, RBI engineers try to reduce the lending rate, definetly Bank will not lend at negative interest rate.

In Japan,Deflation started in the early 1990s. The Bank of Japan and the government have tried to eliminate it by reducing interest rates (part of their 'quantitative easing' policy), but this was unsuccessful for over a decade. In July 2006, the zero-rate policy was ended.

Systemic reasons for deflation in Japan can be said to include:

1.Fallen asset prices. There was a rather large price bubble in both equities and real estate in Japan in the 1980s (peaking in late 1989). When assets decrease in value, the money supply shrinks, which is deflationary.

2.Insolvent companies: Banks lent to companies and individuals that invested in real estate. When real estate values dropped, these loans could not be paid. The banks could try to collect on the collateral (land), but this wouldn't pay off the loan. Banks have delayed that decision, hoping asset prices would improve. These delays were allowed by national banking regulators. Some banks make even more loans to these companies that are used to service the debt they already have. This continuing process is known as maintaining an "unrealized loss", and until the assets are completely revalued and/or sold off (and the loss realized), it will continue to be a deflationary force in the economy. Improving bankruptcy law, land transfer law, and tax law have been suggested (by The Economist) as methods to speed this process and thus end the deflation.

3.Insolvent banks: Banks with a larger percentage of their loans which are "non-performing", that is to say, they are not receiving payments on them, but have not yet written them off, cannot lend more money; they must increase their cash reserves to cover the bad loans.

4.Fear of insolvent banks: Japanese people are afraid that banks will collapse so they prefer to buy gold or (United States or Japanese) Treasury bonds instead of saving their money in a bank account. This likewise means the money is not available for lending and therefore economic growth. This means that the savings rate depresses consumption, but does not appear in the economy in an efficient form to spur new investment. People also save by owning real estate, further slowing growth, since it inflates land prices.

5.Imported deflation: Japan imports Chinese and other countries' inexpensive consumable goods, raw materials (due to lower wages and fast growth in those countries). Thus, prices of imported products are decreasing. Domestic producers must match these prices in order to remain competitive. This decreases prices for many things in the economy, and thus is deflationary.

In India too we faced negative inflation some 32 years back.

When spiraling inflation happens we are worried because the purchasing power of money comes down. When there is deflation the purchasing power of money actually goes up! Yet zero inflation or negative inflation (that is, deflation) is not necessarily good. we are worried either way.

Naras

Dealing with the cut

2009-05-21T09:38:00.000-07:00

Picture this – you come to office on a usual day and get to know that your employer has decided on implementing salary cuts. Panic not, as this is quite a common scene in offices these days and experts say that you can sail through it.

Most people argue that salary cuts are still better than being laid-off, but the fact also remains that it has its repercussions too. Experts say that no organisation wants to take such a decision unless it is absolutely unavoidable. “Pay reduction during times of recession is demoralising for employees and is the last step a company would ever take, after it has exhausted other cost-cutting measures,”

Where Rupee Comes from & goes

2009-05-21T09:26:00.000-07:00

Big on Borrowings

The major part of the government's revenue comes from borrowings. Consequently, the biggest chunk of expenditure is on interest payments.

Out of every rupee that enters the government's coffers, 29 paise is from borrowings and other debt, with corporation tax contributing 22 paise and income tax another 12 paise.

"Custom"ized Gains

Of the remaining, customs and excise duties account for 10 paise each, with another 10 paise coming from non-tax revenue. Service taxes amount to six paise, while non-debt capital receipts contribute one paise.

Expenditure

On the expenditure side, 20 paise of each rupee spent is on interest payments. Then another 18 paise is on central plan outlay.
The central government has to give states 15 paise for their share of taxes and duties. Other non-plan expenditure accounts for 14 paise.

Defence accounts for 13 paise, while subsidies on food, fertilisers and energy costs nine paise.

Expenditure on state and union territory plan and non-plan assistance are seven and four paise, respectively.

COULD THIS BE THE SOLUTION TO THE Global Financial Crisis?

2009-05-21T05:55:00.000-07:00

It is August. In a small town on the South Coast of France, holiday
season is in full swing, but it is raining so there is not too much
business happening. Everyone is heavily in debt.

Luckily, a rich Russian tourist arrives in the foyer of the small
local hotel. He asks for a room and puts a Euro100 note on the
reception counter, takes a key and goes to inspect the room located up
the stairs on the third floor.

The hotel owner takes the banknote in hurry and rushes to his meat
supplier to whom he owes E100.
The butcher takes the money and races to his supplier to pay his debt.
The wholesaler rushes to the farmer to pay E100 for pigs he purchased
some time ago.
The farmer triumphantly gives the E100 note to a local prostitute who
gave him her services on credit.
The prostitute goes quickly to the hotel, as she owed the hotel for
her hourly room use to entertain clients.
At that moment, the rich Russian is coming down to reception and
informs the hotel owner that the proposed room is unsatisfactory and
takes his E100 back and departs.

There was no profit or income. But everyone no longer has any debt and
the small town people look optimistically towards their future.

COULD THIS BE THE SOLUTION TO THE Global Financial Crisis? Or, is
there a catch here?