1
Table of Contents:
Chapter 1: Introduction to Employability................................................................................................ 2
The Employability Challenges: ........................................................................................................... 2
Employability skills are essential........................................................................................................ 8
Chapter 2: Self-Assessment .................................................................................................................. 13
Career planning ............................................................................................................................... 13
Self Assessment .............................................................................................................................. 14
Types of Tests ................................................................................................................................. 16
Career Exploration .......................................................................................................................... 28
Work Environment .......................................................................................................................... 29
Chapter 3: Career Planning ................................................................................................................... 31
What is Career Planning? ................................................................................................................ 32
Chapter 4: Presentation Skills Development ......................................................................................... 34
Chapter 5: CV Writing & Video Resume ................................................................................................ 35
Resume Preparation Techniques: .................................................................................................... 35
Resume Content ............................................................................................................................. 35
Cover Letter .................................................................................................................................... 36
Chapter 6: Personal Branding Tools: Unleashing the Power Within...................................................... 38
Introduction to Personal Branding ................................................................................................... 38
Profile Management Techniques ..................................................................................................... 39
Chapter 7: Mastering the art of communication skills .......................................................................... 42
What is communication? ................................................................................................................. 42
Types of Communication ................................................................................................................. 42
4Ts of Presentation ......................................................................................................................... 45
A to F method of sudden speech: .................................................................................................... 45
Chapter 8: Building Tech Skills for Graduate Employability .................................................................. 47
Chapter:9 Subjective Knowledge .......................................................................................................... 52
Finance Terminologies .................................................................................................................... 52
Banking Terminologies .................................................................................................................... 70
Marketing Job Interview Questions ................................................................................................. 75
Management Terminologies............................................................................................................ 81
Theoretical concepts of Accounting ................................................................................................. 96
E-Business Management Terminologies ........................................................................................ 107
Key terms of Tourism and Hospitality Industry .............................................................................. 115
Innovation and Entrepreneurship Glossary .................................................................................... 123
Chapter 10: Company Research .......................................................................................................... 136
Chapter 11: Networking for Jobs: Unlocking Opportunities through Connections .............................. 138
Chapter 12:Mock Interviews ............................................................................................................... 143
2
Chapter 1: Introduction to Employability
The Employability Challenges:
The question is not “what?” or “Why?” but “How?”
Do you think your academic knowledge will guarantee you a job? Are you aware of the skills and
abilities most employers want? How does it feel to know that there are at least 1 million people
around this world who can do your job? In this age of distraction and disruption, jobs are not
bordered by the territory of a country. That means you have employees all over the globe. These
one million candidates have the same education as you have, if not better! The good news is people
lack the most critical skill, which is employability. Degrees can assure only acquisition of
knowledge but implementing that knowledge in your work requires Employability skills.
What is employability?
Employability Skills refer to the skills, abilities, and behaviors that are necessary for every job.
Employability skills allow you to:
✔
✔
✔
✔
✔
✔
Interact and communicate with co-workers
Solve problems
Understand your role within the organization or the team
Make responsible choices,
Make proactive decisions, and
Take charge of your own career
The burning platform: employer demand for employability skills
This course will mainly focus to fulfill the desired qualifications that employers want. Here are
top 10 skills that student should develop through Employability 360.
1. Confidence and Self Esteem
2. Communication skills
3. Commercial awareness
4. Teamwork
5. Negotiation and persuasion
6. Problem-solving skills
7. Leadership skills
8. Organization of work
9. Motivation and Perseverance
10. Adaptability and Flexibility
Employability skills and wider employment and skills policy
Employability skills are the key skills, qualities, and attributes that make individuals more
attractive to employers and enhance their prospects of securing and succeeding in employment.
These skills go beyond technical or job-specific knowledge and are transferable across different
occupations and industries. They are highly valued by employers as they contribute to workplace
productivity, adaptability, and overall success.
3
Wider employment and skills policies refer to government initiatives, programs, and strategies
aimed at promoting and improving the employability skills of the workforce as a whole. These
policies recognize the importance of a skilled and adaptable workforce for economic growth,
competitiveness, and social well-being. They encompass various aspects such as education and
training systems, labor market policies, career guidance and counseling services, and support for
lifelong learning.
The relationship between employability skills and wider employment and skills policy is
interconnected and mutually reinforcing. Here's how they relate to each other:
✔ Skill Development: Wider employment and skills policies often emphasize the
development of employability skills as a core component. Policies may focus on enhancing
the quality and relevance of education and training programs to equip individuals with the
necessary skills for the labor market. This includes promoting the acquisition of both
technical and transferable skills through formal education, vocational training,
apprenticeships, and other forms of skill-building initiatives.
✔ Employability Frameworks: Employment and skills policies may establish frameworks
or guidelines that define and promote employability skills. These frameworks outline the
key skills and competencies desired by employers, providing a common reference point
for educators, training providers, and individuals seeking employment. They help align
educational curricula and training programs with the evolving needs of the labor market.
✔ Career Guidance and Support: Policies aimed at improving employability often include
provisions for career guidance and support services. These services offer individuals
information, advice, and guidance on developing their employability skills, exploring
career options, and making informed career decisions. They assist individuals in
identifying their strengths, setting goals, and accessing relevant learning and employment
opportunities.
✔ Recognition and Certification: Employment and skills policies may facilitate the
recognition and certification of employability skills. This includes the development of
standards and qualifications that validate an individual's skill level and proficiency in
specific areas. Recognized certifications can enhance employability by providing tangible
evidence of an individual's skills and competence to potential employers.
✔ Partnerships and Collaboration: Policies promoting employability skills often foster
partnerships and collaboration between education and training providers, employers,
industry associations, and other stakeholders. These collaborations help ensure that
education and training programs align with the current and future needs of the labor market.
Employers may actively participate in curriculum development, work-integrated learning
opportunities, and apprenticeship programs to bridge the gap between education and
industry requirements.
✔ Lifelong Learning: Employment and skills policies recognize the importance of lifelong
learning for employability. They encourage individuals to continuously update and
upgrade their skills to adapt to changing job market demands. Policies may support
initiatives such as adult education programs, up skilling and reskilling opportunities, and
4
flexible learning pathways to facilitate ongoing skill development throughout individuals'
careers.
By integrating employability skills into wider employment and skills policies, governments can
create an environment that fosters the development, recognition, and utilization of these skills.
This, in turn, promotes economic growth, reduces unemployment, and enhances individuals'
prospects for meaningful and sustainable employment.
Existing Evidence and Good Practice
Existing evidence and good practices regarding employability skills and wider employment and
skills policies are derived from research, evaluations, and successful initiatives implemented
across different countries and industries. Here are some key findings and good practices:
✔ Employability Skills Frameworks: Many countries have developed employability skills
frameworks that outline the key skills and competencies needed in the labor market. These
frameworks serve as a reference for educators, employers, and individuals to understand
and develop employability skills effectively.
✔ Integrated Curriculum and Work-Integrated Learning: Good practice involves
integrating employability skills development within the curriculum across educational
levels. This integration can be achieved through project-based learning, internships,
apprenticeships, and other work-integrated learning approaches. Providing opportunities
for students to apply their knowledge and skills in real-world settings enhances their
employability.
✔ Career Guidance and Counseling: Effective career guidance and counseling services
play a vital role in supporting individuals' career development and enhancing their
employability. Good practices include providing comprehensive information about career
options, facilitating self-assessment and exploration of interests and skills, and offering
personalized guidance to make informed career decisions.
✔ Partnerships with Employers: Collaborations between educational institutions, training
providers, and employers are crucial for aligning skills development with industry needs.
Good practices involve establishing partnerships that enable employers to contribute to
curriculum design, provide input on skill requirements, and offer work-based learning
opportunities. These partnerships help bridge the gap between education and employment.
✔ Lifelong Learning and Up skilling: Promoting lifelong learning and up skilling initiatives
is essential to address the evolving needs of the labor market. Good practices include
offering flexible learning pathways, recognition of prior learning, and accessible training
programs that allow individuals to acquire new skills or upgrade existing ones throughout
their careers.
✔ Evaluation and Monitoring: Evidence-based policy-making requires rigorous evaluation
and monitoring of employability skills initiatives. Evaluations help identify effective
strategies, assess the impact of interventions, and inform continuous improvement. Regular
5
monitoring ensures that policies remain relevant and responsive to changing labor market
dynamics.
✔ Inclusion and Diversity: Good practices emphasize the importance of promoting inclusion
and diversity in employability skills development. This includes providing equal
opportunities for individuals from diverse backgrounds, addressing barriers to access and
participation, and fostering inclusive learning environments that value and respect
individual differences.
✔ Employer Engagement and Support: Employers play a vital role in promoting and
recognizing employability skills. Good practices involve engaging employers in the design
and delivery of training programs, establishing employer-led certification or accreditation
schemes for skills, and incentivizing businesses to invest in the development of their
workforce.
✔ Digital and Technological Skills: The increasing importance of digital and technological
skills in the modern workforce requires integrating these skills into employability
frameworks and educational programs. Good practices include incorporating digital
literacy, coding, data analysis, and other relevant digital skills into curricula and offering
training opportunities to enhance individuals' digital competencies.
✔ Continuous Policy Adaptation: Good practices in wider employment and skills policies
involve continuous adaptation to changing labor market demands. This includes regularly
reviewing and updating employability skills frameworks, monitoring emerging skill needs,
and ensuring policy responsiveness to technological advancements and industry
transformations.
These good practices are informed by evidence and experiences from successful initiatives
worldwide. By implementing and adapting these practices to local contexts, governments,
educational institutions, employers, and individuals can foster a supportive environment for
developing employability skills and enhancing employment outcomes.
Employability Wheel
The Employability Wheel is a visual representation of the key components or dimensions that
contribute to an individual's employability. It provides a comprehensive overview of the various
factors that employers consider when assessing a candidate's suitability for a job. While the
specific components may vary slightly depending on different frameworks or models, the
Employability Wheel typically includes the following dimensions:
1. Knowledge and Skills: This dimension encompasses both technical knowledge and
specific job-related skills required for a particular occupation or industry. It includes formal
education, vocational training, certifications, and the ability to apply knowledge effectively
in practical settings.
2. Personal Qualities: Personal qualities refer to the individual's characteristics, traits, and
attitudes that contribute to their effectiveness and success in the workplace. This includes
6
attributes such as communication skills, teamwork, adaptability, problem-solving ability,
resilience, and professionalism.
3. Work Experience: Work experience reflects an individual's practical exposure and
relevant employment history. It includes internships, part-time jobs, volunteer work, and
any other professional experiences that provide practical insights, skills, and understanding
of the work environment.
4. Networks and Relationships: This dimension emphasizes the importance of building and
maintaining professional networks and relationships. It includes connections with peers,
mentors, industry professionals, and other individuals who can provide guidance, support,
and opportunities for career advancement.
5. Career Management: Career management refers to an individual's ability to plan, set
goals, and actively manage their career development. This includes self-assessment, goal
setting, career planning, decision-making, continuous learning, and adapting to changing
circumstances.
6. Job Search Strategies: Job search strategies encompass the knowledge and skills required
to effectively search and apply for job opportunities. It includes techniques such as resume
writing, cover letter preparation, interview skills, networking, online job searching, and
leveraging digital platforms.
7. Self-Promotion: Self-promotion involves the ability to effectively communicate and
market oneself to potential employers. It includes personal branding, creating a
professional online presence, developing an elevator pitch, and showcasing relevant
achievements and strengths.
8. Cultural Awareness: Cultural awareness highlights an individual's understanding and
appreciation of different cultures, diversity, and inclusivity in the workplace. It includes
the ability to work effectively with people from diverse backgrounds, respect cultural
differences, and navigate multicultural work environments.
The Employability Wheel serves as a tool to assess and develop employability skills. It encourages
individuals to reflect on each dimension, identify their strengths and areas for improvement, and
take proactive steps to enhance their employability across all components. By considering and
developing these dimensions, individuals can increase their attractiveness to employers, adapt to
evolving job market demands, and enhance their career prospects.
Scope and Approach
The scope and approach of employability programs and initiatives vary depending on the specific
context and target audience. However, there are some common elements and considerations to
keep in mind:
1. Scope:
7
● Target Audience: Define the specific group or groups of individuals the program
aims to support. This could include students, graduates, unemployed individuals,
career changers, or any other specific demographic.
● Objectives: Clearly outline the objectives and desired outcomes of the program.
This could include improving employability skills, increasing job placement rates,
enhancing career progression opportunities, or fostering entrepreneurship.
● Duration: Determine the duration of the program, whether it is short-term or longterm, and consider whether it will be a one-time intervention or an ongoing
initiative.
2. Approach:
● Holistic Approach: Adopt a holistic approach that considers multiple dimensions
of employability, including knowledge and skills, personal qualities, work
experience, networks, and career management.
● Individualized Support: Recognize that individuals have unique needs and
circumstances. Provide personalized support, such as career counseling, individual
coaching, or tailored learning pathways, to address individual strengths, interests,
and areas for improvement.
● Collaboration and Partnerships: Foster collaboration and partnerships among
various stakeholders, including educational institutions, employers, industry
associations, government agencies, and community organizations. Engage
employers in program design and delivery to ensure alignment with industry needs.
● Integrated Learning: Incorporate practical, hands-on learning experiences, such as
internships, apprenticeships, or project-based assignments, to bridge the gap
between theory and practice and develop real-world employability skills.
● Career Guidance and Development: Offer comprehensive career guidance services
that help individuals explore career options, set goals, and make informed
decisions. Provide support in developing job search strategies, preparing
application materials, and improving interview skills.
● Continuous Learning and Adaptation: Encourage a culture of lifelong learning and
continuous skill development. Promote the importance of up skilling and reskilling
to adapt to changing job market demands and emerging technologies.
● Evaluation and Monitoring: Establish mechanisms to monitor and evaluate the
effectiveness of the program. Collect data on key metrics, such as employment
rates, career progression, and participant satisfaction, to assess the impact and make
necessary adjustments.
● Technology Integration: Leverage technology to enhance program delivery and
accessibility. Utilize online platforms for career resources, virtual learning,
networking opportunities, and job-matching services.
8
The scope and approach should be tailored to the specific needs and context of the target audience.
It is essential to regularly review and update the program based on feedback, evaluation findings,
and evolving labor market trends to ensure its continued relevance and effectiveness.
Employability skills are essential
Developing employability skills is not complicated but it is challenging
Indeed, developing employability skills may not be inherently complicated in terms of
understanding the skills required or the general strategies for their development. However, it can
be challenging due to various factors. Here are some reasons why developing employability skills
can be challenging:
1. Self-Awareness: Developing employability skills requires self-awareness and reflection.
It can be challenging for individuals to accurately assess their own strengths, weaknesses,
and areas for improvement. It may require introspection, feedback from others, and an
ongoing commitment to personal growth.
2. Skill Acquisition: While the concept of acquiring skills may seem straightforward, the
process of learning and developing skills can be challenging. It often requires time, effort,
practice, and perseverance. Some skills may be more complex and require specialized
training or education, making their acquisition more challenging.
3. Changing Job Market: The job market is dynamic and constantly evolving. New
technologies, industry trends, and skill requirements emerge regularly. Keeping up with
these changes and ensuring that one's skills remain relevant can be challenging, particularly
for individuals in rapidly evolving industries or sectors.
4. Competitiveness: The job market can be highly competitive, with many qualified
candidates vying for limited opportunities. Developing employability skills is not just
about acquiring the skills themselves but also standing out from the competition. It may
require individuals to continuously improve and differentiate themselves to be more
marketable to employers.
5. Transferability: Employability skills are often transferable across different occupations
and industries. However, identifying how to apply these skills in various contexts can be
challenging. Individuals may need to adapt their skills and demonstrate their relevance to
specific job roles or industries.
6. Continuous Development: Employability skills are not one-time achievements; they
require ongoing development and refinement. This can be challenging as individuals need
to stay motivated, seek out opportunities for growth, and continuously invest in their skill
development throughout their careers.
7. Overcoming Barriers: Some individuals may face barriers to developing employability
skills, such as limited access to education, training, or mentorship opportunities.
9
Addressing these barriers and finding alternative avenues for skill development can be
challenging.
8. Balancing Multiple Responsibilities: Developing employability skills may require
individuals to balance multiple responsibilities, such as work, family, and personal
commitments. Finding the time and resources to invest in skill development can be
challenging amidst competing priorities.
While developing employability skills can be challenging, it is not insurmountable. With
dedication, persistence, and the right support systems in place, individuals can overcome these
challenges and enhance their employability. Employability programs, career services, mentorship,
and continuous learning opportunities can provide valuable support in navigating these challenges
and developing the necessary skills for success in the job market.
Challenges for practitioners
Practitioners involved in supporting the development of employability skills may encounter
several challenges in their work. Here are some common challenges faced by practitioners:
1. Individual Differences: Every individual has unique needs, abilities, and learning styles.
It can be challenging for practitioners to design and deliver interventions that effectively
meet the diverse needs of their clients or learners. They must adapt their approaches,
instructional methods, and support strategies to accommodate different learning
preferences and capabilities.
2. Limited Resources: Practitioners often work within resource constraints, such as limited
funding, staffing, or access to technology and learning materials. These limitations can
impact the scope and quality of employability programs and services they can provide.
Practitioners must find creative ways to optimize available resources and maximize their
impact.
3. Keeping Pace with Changing Labor Market Trends: The labor market is constantly
evolving, with new technologies, industries, and skill requirements emerging. Practitioners
need to stay up-to-date with these trends to provide accurate and relevant guidance and
support to individuals. It can be challenging to keep pace with the rapidly changing
landscape and ensure the information and resources they provide are current and aligned
with market demands.
4. Engagement and Motivation: Encouraging and maintaining individuals' engagement and
motivation throughout the employability skill development process can be a challenge.
Some individuals may face barriers or lack confidence in their abilities, leading to
disengagement. Practitioners must employ effective strategies to inspire and sustain
motivation, such as setting meaningful goals, providing positive reinforcement, and
fostering a supportive learning environment.
5. Collaboration with Stakeholders: Effective collaboration with various stakeholders,
including educational institutions, employers, industry associations, and government
agencies, is crucial for successful employability initiatives. However, coordinating and
10
aligning the efforts of multiple stakeholders can be challenging. Practitioners need to
navigate different interests, priorities, and communication channels to foster meaningful
partnerships and collaborations.
6. Evaluation and Impact Assessment: Measuring the impact and effectiveness of
employability programs can be challenging. Practitioners need to establish evaluation
frameworks, collect relevant data, and analyze outcomes to determine the success of their
interventions. However, conducting rigorous evaluations can be time-consuming and
resource-intensive, requiring expertise in research and evaluation methodologies.
7. Addressing Barriers and Inequalities: Many individuals face barriers to developing
employability skills, such as socioeconomic disadvantages, lack of access to education or
training, or discrimination. Practitioners must be aware of these barriers and work
proactively to address them, promote inclusivity, and ensure equal opportunities for all
individuals, regardless of their background or circumstances.
8. Balancing Individual and Systemic Approaches: Employability practitioners often work
with individuals on a one-on-one basis, providing personalized guidance and support.
However, they also need to consider systemic factors that influence employability, such as
education policies, labor market dynamics, and societal norms. Striking a balance between
individual-focused interventions and advocating for systemic changes can be challenging.
Despite these challenges, practitioners play a crucial role in supporting individuals' employability
skill development. By staying adaptable, continuously learning, and collaborating with relevant
stakeholders, practitioners can navigate these challenges and make a positive impact on
individuals' employability and career success.
Challenges for policy makers & Employers
Challenges for Policy Makers:
1. Rapidly Changing Labor Market: Policy makers face the challenge of keeping up with the
rapidly changing labor market and evolving skill demands. Identifying emerging trends,
predicting future skills needs, and aligning policies accordingly can be challenging.
2. Collaboration and Coordination: Developing effective employability policies often
requires collaboration and coordination among multiple government agencies, educational
institutions, industry stakeholders, and other relevant actors. Balancing diverse interests,
ensuring effective communication, and fostering collaboration can be complex and timeconsuming.
3. Addressing Inequality and Inclusion: Policy makers need to address inequalities and
promote inclusivity in employability initiatives. This involves designing policies that
consider the needs of marginalized populations, reducing barriers to access, and providing
targeted support to individuals facing disadvantages in the labor market.
11
4. Adapting Education and Training Systems: The education and training systems need to
adapt to the changing needs of the labor market. Policy makers face the challenge of
aligning curriculum and instructional methods with current and future skills requirements,
integrating technology effectively, and promoting lifelong learning.
5. Financing and Resource Allocation: Implementing comprehensive employability policies
requires financial resources. Policy makers need to secure adequate funding, allocate
resources effectively, and ensure sustainability of initiatives, especially in the face of
competing budgetary priorities.
6. Evaluation and Impact Assessment: Evaluating the impact of employability policies and
initiatives is crucial to inform evidence-based decision-making. However, conducting
rigorous evaluations, measuring outcomes, and assessing the effectiveness of policies can
be challenging due to data limitations, long-term impact assessment, and complexity of
measuring employability outcomes.
Challenges for Employers:
1. Identifying and Assessing Employability Skills: Employers may face challenges in
identifying and assessing the specific employability skills required for their organizations
and job roles. Determining which skills are critical for success, designing effective
assessment methods, and aligning them with hiring processes can be complex.
2. Talent Acquisition and Retention: Attracting and retaining talented individuals with the
right employability skills can be a challenge for employers, particularly in highly
competitive industries or regions. Developing effective recruitment strategies, employer
branding, and offering attractive career progression opportunities are key considerations.
3. Bridging the Skills Gap: Employers may face challenges in bridging the gap between the
skills possessed by job applicants and the skills required for job roles. This may involve
providing additional training and development opportunities, investing in upskilling and
reskilling initiatives, and collaborating with educational institutions to align curriculum
with industry needs.
4. Adapting to Technological Advancements: Rapid technological advancements require
employers to adapt and integrate new technologies into their operations. This can pose
challenges in terms of providing necessary training and support to employees, ensuring a
smooth transition, and managing the impact of automation on the workforce.
5. Promoting a Learning Culture: Creating a culture of continuous learning and skill
development within the organization can be a challenge. Encouraging employees to engage
in ongoing learning, providing opportunities for professional development, and fostering a
supportive learning environment require proactive efforts from employers.
6. Diversity and Inclusion: Promoting diversity and inclusion within the workforce can be a
challenge for employers. Overcoming biases, creating inclusive policies and practices, and
ensuring equal opportunities for individuals from diverse backgrounds require
commitment and ongoing efforts.
12
7. Balancing Short-Term and Long-Term Needs: Employers often face the challenge of
balancing short-term operational needs with long-term strategic workforce planning. It can
be challenging to invest in employability skills development while managing immediate
business demands and resource constraints.
Addressing these challenges requires collaboration between policy makers, employers,
educational institutions, and other stakeholders. By working together, sharing best practices, and
adapting policies and practices to the changing landscape, policy makers and employers can
effectively support the development of employability skills and enhance employment
13
Chapter 2: Self-Assessment
Career planning
Assessment – Exploration – Placement
Career planning is a lifelong process, which includes choosing an occupation, getting a job,
growing in that job, possibly changing careers, and eventually retiring. This may happen once in
our lifetime, but it is more likely to happen several times as we first define and then redefine
ourselves and our goals. Effective career planning prepares you for the world of work before you
graduate and puts you on the right track as early as your first year.
Planning Ahead
Exciting productivity advancements imply that more work will be done with the human mind than
with physical skills. Automation is common in manufacturing, marketing services, and finance.
Automation is spreading to all industries. The starting point for tomorrow's careers are the specific
jobs of today. Tomorrow's skills will likely build upon those required in today's jobs. Career field
progress may move at a differing pace in different fields.
The Work Setting
The future . . . what will it hold? The world of work holds open a massive array of work
possibilities. Work is a significant part of your life. Work alone is not a person's whole reason for
being, but it has historically provided a major influence on how our society views the success of
an individual. Success is often defined in terms of significant work achievements. Even newspaper
obituaries cite these past achievements daily
Life Decisions
Three of the most important decisions people make in life relate to buying an automobile, investing
in a home, and choosing a marriage partner. Hours, days, weeks, and months are spent making
these decisions. Every aspect is usually analyzed very thoroughly. Those decisions usually have
long-term impacts on happiness.
Significance of Planning
This book is directed toward those individuals who are seeking careers in managerial, technical,
or professional fields. Although applicable to a very wide age range, the most directly affected age
category is the 20 to 40 age range.
Life Planning
You are not restricted to one career for your whole life! A person may carry out several unrelated
work roles over time. Why can't you be a business executive, a doctor, and an architect in your
lifetime? Planning involves setting goals that can be realistically achieved. Goals motivate us.
Striving to satisfy goals can be fun. You may have a few major goals and hundreds of sub-goals
that serve as building blocks for your future.
Career Jargon
14
Career planning professionals throw a fair share of jargon at people they counsel. There are several
words that when taken out of context have multiple meanings.
✔ Job: A job is a work situation taken for the purpose of earning wages for completing a task,
a series of tasks, or a definitive piece of work. A job frequently is temporary in nature and
the word seldom implies a long-term commitment to a given type of work. A job rarely
requires a long training period for mastery of the work assigned. A job can be the starting
point or intermediate step in your career.
✔ Career:A career is a work experience that you elect to pursue during a significant period
of time in life. A career involves a relatively long-term Career Jargon Career planning
professionals throw a fair share of jargon at people they counsel. There are several words
which when taken out of context have multiple meanings. Job. A job is a work situation
taken for the purpose of earning wages for completing a task, a series of tasks, or a
definitive piece of work. A job frequently is temporary in nature and the word seldom
implies a long-term commitment to a given type of work. A job rarely requires a long
training period for mastery of the work assigned. A job can be the starting point or
intermediate step in your career. Career. A career is a work experience that you elect to
pursue during a significant period of time in life. A career involves a relatively long-term
Self Assessment
Systems – Functions – Responsibility Levels
Self-assessment is the process of analyzing one-self to mine out information about themselves. If
you want to plan your career effectively, this should be the first thing you do. A self-assessment
should include your interests, values, expertise, personality, skills, and abilities. It should also
include your weaknesses. Write them all on a paper so that it can be easier for you to analyze.
Here’s an overview of the tools you can use to do your self-assessment.
Purpose
A self-assessment is the starting block. A self-assessment is a detailed, thorough analysis of one's
background, interests, and aspirations. Literally hundreds of factors go into the analysis of self.
Which factors to analyze depends to some degree on how you hope to use the assessment. The
reason you prepare a self-assessment is to determine the most important criteria to use in analyzing
your potential career options. The goal is to arrive at an optimal (not a perfect) match between
personal desires and your career alternatives. There could reasonably be many career fields that
would satisfy your needs and desires. Career planning is a decision-oriented process that proposes
to rank order your list of career options. The results of your self-assessment will be used
extensively in your follow-up interviews.
Definition
The self-assessment is more than a mental exercise. It involves putting thoughts on paper and then
prioritizing them in an order that is useful in appraising career directions. Conducting a selfassessment is actually taking a personal inventory. You must first make a list of the items in your
“inventory.” The next step is to assign a value in terms of quantity, quality, and relative importance
to each item. There are many methods that aid in this stock-taking process. Few, if any employers
15
hire managerial or professional applicants solely on the basis of information on resumes or
application blanks. Most employers want collaborative evidence to prove that you have the ability
to perform the assignment in a superior manner. Employers obtain that collaborative evidence via
reference checks and personal interviews. Employers have devised elaborate methods to determine
your abilities, motivation, and potential to achieve.
Reality Check
The reality of a self-assessment extends beyond the career planning theoretical framework. A
properly performed self-assessment boosts your confidence level significantly. You feel more
certain about your skills and capabilities. The self-assessment exercise polishes your awareness of
the skill set that you own and develops materials which you will use later in an interview
presentation. A regularly conducted self-assessment often signals to you that the time is
appropriate to consider a major career or job change. It forces the employment change by alerting
you to the fact that your career satisfaction should be much higher. The results assist in formulating
a new direction in your life that may maximize your longer-term career satisfaction.
Goal Setting
The result of your self-assessment culminates into a statement of your goals. Before you jump into
the work of conducting the self-assessment, you need to convince yourself of its value. It is
impossible to hit a target that you have not set up. Whether your goals are personal, career,
financial, social, or spiritual, they cannot be achieved until you convince yourself that goal setting
is important.
Goals must be written. Broad concepts in your mind cannot be translated into meaningful specifics.
Goals cannot be wandering generalities if they are to be met. Goals must be quantifiable into some
specific time frame. It is best to break goals into both long-term goals and short-term goals so that
incremental progress can be measured for motivational purposes. Goal attainment needs a regular
review process which can serve as a feedback vehicle to force you to stay on your tasks or allow
you to reassess your goals in light of new developments.
Self-Assessment Techniques
There is no one best way to conduct a self-assessment. Several different methods can be employed
independently or in concert to reach the same conclusions. High school and college career
counselors frequently offer personal guidance in the self-assessment. Professional career
consultants offer the same service for a fee. These professionals supplement their impressions
arrived at through skillful probing and analyzing with psychological tests. Psychological tests
provide data which cannot easily be ascertained in personal interviews.
A wide variety of publications, mostly in workbook format, are used in organizing and
synthesizing data about you. With all of this help available from both professional counselors and
publications, the key word to remember is “self.” In the final analysis, a self-assessment must be
conducted by you. Self-assessment is a do-it-yourself project. The result is a very private matter.
Information is drawn, however, from a variety of reputable sources. Ideas and opinions from
friends, teachers, employers, parents, neighbors, clergy, relatives, and others aid in the factgathering process. If inquiries of these people, as well as of the professional career counselor, are
16
properly phrased, great insights can be obtained which improve the validity and accuracy of the
self-assessment.
Autobiography
An autobiography is written in narrative form, in contrast with the outline format of a resume. It
is a personal story. The usual starting point is around the age of 16 and the story continues
chronologically up to the present. Some approaches do not use a chronological pattern. Some
people prefer to document their life history under such headings as family experiences,
professional work activities, education, work experiences, etc. Others prefer to orient the analysis
to skills, values, interests, and personal qualities. The approach matters very little. What is
important is the writing down of thoughts that relate to the past. The past is a good predictor of the
future. The analysis delves into the reasons decisions were made in the past. Future decisions are
likely to draw upon the same set of decision criteria.
Inventories
Inventories are checklists. Their value lies in the fact that they help you identify the words that
best describe your values, interests, personality, etc. The checklist of words or phrases help you
understand the meaning of the concept. The words help jog your memory. Career workbooks often
use inventories as an aid in helping you identify factors which you feel relate to you. In addition
to clarifying the meaning of the characteristic, inventories often provide a system of classifying
variables under a given grouping. Inventories help draw out specific strength and weaknesses.
These people characteristics assist you in assessing why you behave as you do and assist in
predicting future actions.
Psychological Tests
Another important tool used in the self-assessment is psychological testing. Psychological tests
are tools used by a career counselor trained in the use of tests. Tests are measuring devices that
add new bits of information which career counselors’ use in developing a clearer picture of you.
Test effectiveness depends largely on the counselor's knowledge of the scope and limits of the tests
used. Unrealistic expectations on the part of the test taker represent the greatest potential problems
of tests. A certain amount of test information and knowledge must be passed on to the test taker
which will give a much clearer understanding of the results. Only then can the information add the
additional information to the self-assessment process. Basically, tests are predictors of future
performance. Fees are usually associated with administration of psychological tests, and they vary
widely depending upon the number and type of tests administered. It can get expensive when a
counselor's time is factored into the cost.
Types of Tests
Career counselors typically administer one or more of five major types of tests. These five types
of tests are grouped according to the functions they perform. Achievement tests measure mastery
of a given subject such as mathematics, English, chemistry, and so forth.
17
✔ Achievement tests attempt to measure actual learning in a specific subject matter after a
period of instruction. They provide an objective measure of progress and thus are helpful
to career counselors in assessing skill levels and abilities which might later be related to
specific career endeavors.
✔ Aptitude tests purport to measure certain personal characteristics which might indicate the
capacity to acquire some specific knowledge or skill. Aptitude tests try to predict future
success in a given field of study. These tests measure the capacity to acquire certain skills
or proficiencies based on innate ability and past experience. Aptitude tests are most likely
to be the type an employer would use in personnel selection. Aptitude tests cover a wide
range of abilities related to most work areas.
✔ Interest inventories indicate the extent of similarity between a person's
interests/preferences and those of persons already successfully employed in a specified
occupation. The underlying principle is that the more similar the interests, the greater are
the person's chances of work satisfaction in a particular field. The person's chances are
enhanced further if his or her aptitude test shows the necessary aptitudes to perform the
tasks required in the career field.
✔ Intelligence tests are primarily concerned with complexity, level of difficulty, quality, and
rate of mental activity. The score represents measures of intellectual functioning in an
abstract reasoning manner. Intelligence tests are rarely used in career counseling.
✔ Personality tests measure emotional makeup, stability, and the degree of life adjustment.
They are helpful in eliciting feelings, values, and motives. They measure social poise,
intrapersonal characteristics, and maturity. A career counselor using personality measures
must be highly trained and experienced in competently administering and interpreting these
tests.
✔ Norms. A test is a standardized set of measurements of a person's responses to a group of
tasks or questions. More general inferences can be drawn later from the measurements.
Interpretation of test scores requires a data base which provides statistical comparisons. A
norm is the typical score for a specified population group. For example, a mechanical
aptitude score might be compared to the mechanical aptitude of a group of successful
mechanical engineers. Every test has a test manual and other literature which support the
tests and provides information to the career counselor. The test score is meaningful only
when it is used properly by an expert. It must be compared to a relevant data base of an
appropriate population group. When the norm concept is not properly understood, there is
great risk in drawing incorrect conclusions. You must make certain that the career
counselor is competent to interpret tests before using the results in the self-assessment. In
general, the population sample on which the test has been standardized should relate as
closely as possible to the age, socio-economic status, educational level, etc. of the
individual being tested.
✔ Reliability. Reliability refers to how consistently a test measures the same characteristic
in successive measurements. A given individual should get approximately the same results
each time the test is taken. The publishers of most commercial tests have gone to great
lengths to insure reliability within all norm groups.
✔ Validity. Validity determines the extent to which the test measures what it purports to
measure. Validity measures how well the results of the test correlate with the given
18
criterion. For example, an MBA aptitude test score should correlate highly with actual
academic achievement. If the test predicts a high level of academic success, the later
academic grades will be high if the test is valid.
Summary of Assessment Methods
There are many methods that produce accurate pictures of the characteristics making up the selfassessment. Measures of values, interests, personality, and skills are rarely precise. Experts can
aid in the assessing of the measurements and can even offer suggestions on how the pieces might
fit together. In the final analysis, however, only you can legitimately pull all of the factors together
to form an accurate mental and written self-assessment. There is no method of measurement that
brings all of the factors together in a nice, neat package, so your career decision will be speculative.
The degree of risk in your career decision can be minimized by your being as objective as possible
in your self-assessment.
Identify Your V.I.P.S.
You may possess the same educational background and similar work experiences as others. What
makes you a unique human being are your motivational factors. These factors are another
dimension of a person's qualifications and potential for success in a given career field. An
evaluation of motivational factors is subjective, but these factors can make the individual uniquely
fit for particular occupational fields. Thus, an assessment of them is important. They cannot be
accurately identified and evaluated without your total cooperation. Four frequently referenced
personal qualities which aid in the analysis of a realistic fit into various occupational fields are
your Values, Interests, Personal Qualities, and Skills.
Starting Points
Education, work experience, family, and environment are the major factors influencing values,
interests, personality, and skills (your VIPS). Education, work, family, and environment go back
to very early years in your life. Early experiences shape your views of yourself. These are projected
in career choices.
Once your VIPS become set, they are difficult to change. Skills can be manipulated most easily,
but even they are difficult to rearrange and expand once values, interests, and personality have
developed fully. Career goal setting is the ultimate purpose of career planning. Goal setting
emanates from VIPS when they are integrated with real world career options.
Importance of VIPS
Most people find it difficult to write or speak about themselves in terms of their values, interests,
personal qualities, and skills. Most people stumble all over themselves when asked:
✔
✔
✔
✔
What are your values?
What are your interests?
Describe your personality.
Identify your best skills. Why are these questions so difficult?
19
They seem quite important. They are much more important than the mundane items that appear on
most resumes. They obviously have a great bearing on career planning. Education and work
experiences play important roles in career selection. In the final analysis, however, nothing plays
a greater role in career selection (from either the employer's or the employee's perspective) than
your personal VIPS. No matter what the career field, there is nearly always an oversupply of
applicants seeking positions in it. Nearly every job has more than one applicant for it. For a given
opening in a technical, professional, or managerial position, chances are high that there will be
several applicants with adequate education and work experience backgrounds.
How does an employer decide who gets the job? The decision is nearly always based on an
appraisal of the applicants' personal VIPS. The personal VIPS have the most direct bearing on an
individual's ability and desire to accomplish work at the managerial, technical, and professional
level. For example, over the last decade, individuals holding a bachelor's degree in chemical
engineering coming right out of college without any significant experience have been in extremely
high demand. Does every individual with those credentials get a job offer after every interview?
Of course not! Some applicants get nice letters that say, “I am sorry but your qualifications and
interests do not match the . . . .” Why? The reason can most often be traced to an evaluation of the
personal VIPS. Most college graduates barge right into the placement stage of career planning.
Most career changers do the same. What's wrong with that? They have failed to assess the very
points that potential employers will be evaluating. They have failed to investigate the options open
to them that would best use their abilities.
Decision Responsibility
The employer's job decision can become a career decision for you. Personal career decisions are
not so easily rectified. You can easily get locked into a given career field which is not right for
you. Responsibilities and salaries tend to increase as you mature and progress in seniority, and it
becomes more difficult to leave a “well-paying job.” Unhappiness results. Whether accurate or
not, the employer processes information from an interviewee as truth. Through your interview
comments you relay information to employers. The employer makes decisions on the basis of the
information received in the interview, on the resume, and from others who know you. Many
applicants receive turndowns from employers for jobs for which they are eminently qualified. They
may have the right combination of education, experience, and the personal VIPS but yet fail to
communicate an accurate picture. Conversely, many applicants receive job offers and accept
employment in jobs for which they are only marginally qualified. This happens when applicants
transmit inaccurate pictures. Employers and employees both come out losers when these
employees later fail to produce on the job. Increasing the validity of the job interview is more
important to you than to the employer. Although the employer may suffer some economic loss,
you have far more to lose. The validity of an interview for both parties is greatly increased if both
parties know specifically what they are seeking. Playing coy, by either party, increases the odds of
a poor decision. How can the validity be high if you do not really know what you want? The selfassessment phase of career planning controls the goal direction decision, and an analysis of the
personal VIPS starts the self-assessment.
Communicating Your VIPS
20
Employers are addressing the interview validity issue. Most personnel executives now go through
rigorous interview training programs. Recruiters are getting better at the selection process. You
must also get better at packaging the truth. That is not done by interview coaching, polishing the
truth, or deceptive packaging. Those things increase the ratio of offers to interviews, but they fail
to increase the quality of the career decision. Superficial window dressing hurts more than it helps.
Communicating Your VIPS Employers are addressing the interview validity issue. Most personnel
executives now go through rigorous interview training programs. Recruiters are getting better at
the selection process. You must also get better at packaging the truth. That is not done by interview
coaching, polishing the truth, or deceptive packaging. Those things increase the ratio of offers to
interviews, but they fail to increase the quality of the career decision. Superficial window dressing
hurts more than it helps.
Skills
Skills are individual talents which enable a person to perform a given activity. Skills can be taught.
Skills can be learned. Within a skill, there are degrees of proficiency. The situation is not usually
one of skill or no skill, but is one of the degree to which one can perform a given activity. Most
skills can be greatly improved by practice. Practice builds mastery. The range of skill ability
extends from “some awareness and ability” to “excellence of mastery.” Skills gained through
education vary widely depending upon an extensive set of circumstances including level of
education, major field of study, reputation of institution, etc.
Nearly every managerial, technical, or professional job description lists a variety of skills that the
employer considers important in accomplishing the assignment. Employers tend to cover the
waterfront and list every conceivable skill that would be helpful in completing the most frequent
assignments. Rarely are all of these skills really necessary and rarely do employers attempt to
specify the degree of excellence required in each skill. Often these skill listings scare away career
aspirants needlessly. Lack of acceptable skills is one of the most common reasons employers give
for rejecting job applicants. The truth, however, is that values, interests, and personality are the
real factors that cause most employers to reject candidates. Skill Acquisition Skills can be
acquired. The required skills for any career field can be clearly determined. Any job applicant who
has completed a reasonable degree of homework will know before going into a job interview
whether there is or is not a skill match. A carpenter does not apply for a job as a surgeon, of course,
but there are “shades of grey.” Employers seldom find perfect skill matches. Applicants seldom
find perfect skill matches. Compromise by both parties is necessary. Most skills are derived from
education, but the level of educational attainment frequently fails to spell out the specific skills
attained. For example, a four-year liberal arts education equips an individual with hundreds of
skills that are directly career relatable, yet nowhere in the description of educational background
is the skill or the level of the skill articulated. Education is not the only source of skills. Skills also
come from work experience, from personal life experiences, and from play activities.
Types of Skills
Skills break down into three groups:
✔ Data
21
✔ People
✔ Things
The Dictionary of Occupational Titles (U.S. Government Printing Office) is the first and last word
on relating skills to specific occupations and jobs. Many of the skills specified in this book are
found in thousands of job descriptions in all types of organizations that hire people. Each individual
skill is defined in the D.O.T. Many employers use a point system for specifying the skill difficulty
level of the job. It is not uncommon for this point system to be used in the more sophisticated
organizations for establishing salary grades. Some skills require more technical competence than
others. There is a hierarchy of skills depending upon the complexity of the work activity. The three
groups see the skills classified in a decreasing level of complexity.
The lower the level of skill, the more the work activity is prescribed. The higher the level of skill,
the greater the degree of flexibility in the description of the work. This concept is increasingly
important. The higher the level of skills that are held, the fewer the number of positions which will
be available. Specialization by definition denotes fewer people doing the work. There are a lot
more assembly line workers (lower-level jobs) than there are plant managers (higher-level jobs).
On the other hand, you will find less competition for higher level jobs. By definition, there are
fewer people capable of handling the more complex assignments.
A career position beyond your capacities is just as lacking in satisfaction as a position below your
capacities. Being over-employed is not more beneficial to happiness than being under-employed.
Both cause problems.
Skills Inventory
A skills inventory is an essential element in the self-assessment. Questions like “What do I have
to offer?” and “What new skills do I need?” are pertinent. A personal skill inventory requires
thought and guidance. The overall goal is to find the career field that optimally coincides with your
current and future capabilities. An important dimension in both resume preparation and interview
presentation is explaining to a potential employer your level of proficiency in certain basic skills.
Values
Values are feelings. Feelings relate to facts, things, people, and even broad concepts. What is
important in life? Some people might say family, friends, love, security, comfort, community, and
leisure. Others might say career, money, time, education, marriage, etc. Values help people make
choices. They tend to prioritize the factors in our lives. They determine the relative importance of
things which impact upon daily life.
Values Clarification
Value specification and clarification help people understand themselves and guide future planning.
Values help other people understand colleagues and friends by building meaningful systems of
relationships. There are no right and wrong values in a free society. Values derive from the way
an individual has been taught. Values create the ability to accept certain norms and accepted
standards of personal and group behavior. Defining your values helps you get a handle on your
22
self-assessment. If decisions, especially career decisions, are based upon a value system, it is
clearly important to elaborate to yourself a definitive statement of the principles which guide
important decisions in your life. The holding of certain beliefs influences your behavioral pattern.
Actions may be explained by recognizing your value system. You make choices about how you
want to live based upon your system of values. To make a better career decision you need to start
by clarifying the basis upon which your decisions will be made. Everyday life situations call for
thought, decision making, and reasoned action. Different individuals find different solutions to
identical problems. Your actions are based on your beliefs, attitudes, and values. Attitudes, beliefs,
and values impact upon people's decisions and actions. Some types of careers are incompatible
with some people's values, and values help to determine the relative level of satisfaction a person
derives from a career.
Classifying Values
Values take on added meaning when one begins to classify them. Each item in the list could be
placed on a personal like/dislike continuum and they could also be ranked in order of importance
to you. The list is certainly not all-inclusive, but it is representative of values that many people
regard as important.
One way to get a handle on the self-assessment is to first ask the question “How important is (this
value) to me?” A one-line written statement is an adequate response. By the end of that brief
exercise, you will begin to see how you make decisions which are important to career and life
concerns.
Values Appreciation
It is not necessarily imperative that people who share common working hours and similar types of
jobs maintain the same value structure. It is important, however, that work partners be tolerant of
each other's values. Otherwise, the ensuing discord could have major disruptive effects on work
performance. Success is a main concern in career planning. Becoming involved in an unpleasant
work situation is not a sound idea, especially if the situation can be avoided. Although one
employee might be very tolerant of other people's viewpoints, other employees might not be. An
example of this conflict can be found in the case where a “black/ white mentality” locks horns with
a “laissez-faire mentality.” Each party believes his or her point of view is the proper one. Why
should you get boxed into that corner when proper career planning can help avoid such unpleasant
work situations?
Interests
Interests are the things you like or dislike doing. Interests usually spring from a person's underlying
value set. People attach more value to things they like to do and less value to things they do not
like to do.
Values tend to be very stable over a lifetime, but interests change frequently. The range of interests
a person may have is nearly unlimited. What is enjoyable in one period of life is not necessarily
enjoyable in later periods of life.
23
Interests Influence Decisions
Current interests are not concerns that should be quickly turned off in a self-assessment because
they are less permanent. What you like to do in the short-run has a major bearing on what you are
willing to do in the long-run. Whole careers can change as interests change.
Interests profoundly influence career choice. You want to enjoy the work you are doing.
Meaningful employment is a major contributor to career satisfaction. Interests may be less
profound and esoteric than values, but they nonetheless influence which position you are willing
to accept.
Prioritizing Interests
Some people have a very wide variety of interests, whereas others have a great depth of interest in
only a few activities. The variable that narrows interests for most people is time. Time forces
people to pick and choose among a variety of interests. An individual might enjoy boating, tennis,
and football equally well, but due to only 2 to 3 hours of available playing time each day, the
person must choose only one of the activities per day. Career interests and personal interests jell
frequently. As Mark Twain suggested, “Why can't a person do for a living what he would otherwise
do for a summer vacation?” Although play and work occasionally conflict, day, and the person
must choose only one of the activities per day. Career interests and personal interests jell
frequently. As Mark Twain suggested, “Why can't a person do for a living what he would otherwise
do for a summer vacation?” Although play and work occasionally conflict, they frequently
complement each other as well. Value laden words like play and work can force people to do things
they do not like to do. To some people, work is play (fun) and play is work. Interests build upon
values. Career planning means coming to grips with your interests. One can improve his or her
chances for career satisfaction if there is a logical, reasoned relationship between interests and
career. Self-assessment involves determining the degree of your interests in various activities.
Personal Qualities
Judgments about people influence employment decisions. These judgments impact career decision
making. You must assume that judgments about your personal qualities are reasonable, justified,
honest, and motivated by a desire to see you succeed in a given career field. The world is full of
cynics. Whenever decisions about people enter the realm of subjectivity from the realm of
objectivity, the decision maker suddenly becomes suspect.
Subjective Factors
Regardless of the many laws designed to protect employees, subjective factors play a major role
in hiring decisions. One must assume that there are some valid supportable bases for using such
subjective factors in employment decisions. Because subjective factors influence employment
decisions, concern is in order on your career decision. It would be foolhardy to ignore the fact that
personality is a key variable in the decision of whether to enter a career in the performing arts or a
career in marketing. Certain personality types have a better chance of success in a given career
field than other personality types. Measuring personality is a very complicated process. Very
expensive and elaborate tests have been developed to define, describe, and evaluate personality
patterns. It takes an expert to provide an accurate appraisal of personality variables.
24
For most career decisions, an in-depth personality analysis is not necessary. But a realistic
understanding of your personal qualities helps in the evaluation process. Personal Descriptors You
should try to evaluate your personal qualities. Regardless of the career field, every interviewer
completes some sort of evaluation form after an interview. Rarely is an employment decision made
without an interview. The resume and application blank usually adequately describe your work
history and educational level. The interviewer's role is to describe your skills and personal
qualities. Time limits the extent of an interview write-up and evaluation. The majority of
interviewers quickly jot down key words that appear descriptive of the person.
Hopefully, what is written is accurate and valid. Fortunately, you are in charge, not the interviewer.
The impression left in the interviewer's mind comes directly from you. The interviewer's write-up
can be influenced by you.
Communicating Personal Qualities
As a serious career planner, you want the truth written down. Before a true description can be
relayed, you must have a plan as to what information you want to transmit. If garbage is
transmitted, garbage will be written down and decisions will be made (by both parties) on invalid
information. The personal quality component of the self-assessment sets the stage. Even assuming
a perfect combination of education, experience, and skills, a job offer in a career field is not
assured. An employer's assessment of personal qualities is a key factor in the employment decision.
Some experts suggest that this assessment is 90 percent of the decision. You must have a firm
grasp on your personal qualities. Are your personal qualities consistent with those of the majority
of people currently in the profession? How would you know if you had not assessed your own
personal qualities and knew what information to share with an interviewer in order to obtain a fair
and accurate employment decision? What personal qualities appear to be desirable in specific
career fields?
There is little information about that available due to the subjective nature of the topic. It is difficult
to find this data written in books and pamphlets. Several psychological test publishers and
university researchers have done extensive study in this area. Analysis of the norm groups of the
tests forms the best single source of information. The information can be derived through analyses
of the test results by test professionals.
One other good source is people who are currently working in the career field. For the average
person, informational interviewing is probably the best way to obtain personality profiles.
Observation and probing questions can provide fairly accurate pictures. But do not base your
assumed profile on only one or two informational interviews.
Self-Assessment Career Action Projects
Career planning starts with the self-assessment. The only way for you to begin a self-assessment
is to physically put words on paper. Everyone needs some aid in conducting the analysis. Career
projects are designed to provide a logical framework for thought and action to aid you in achieving
a fair self-assessment. Career projects offer a means of dealing with a complex situation. The
career projects build a progressive story about you. As the story unfolds, a wealth of information
25
falls out as if a novel were developing. This is not solely a project in self-analysis. You will find
real applicability for the results when you later move into the placement phase of career planning.
The self-assessment career projects contain answers to hundreds of interview questions which you
will later face. The benefit of the career project in self-assessment is directly proportional to the
amount of time, thought, and effort put into it. The impact that the efforts have on career planning
is significant. The result is truly worth the effort expended.
Autobiography
When written in sufficient depth, an autobiography is one of the most effective methods of selfassessment. Unlike the resume, the autobiography is not simply a brief summary which lists events
and achievements; rather it is written in a prose style as a story. The purpose is to logically draw
out variables that relate to an understanding of the self. Chronological Narrative. The narrative
describes all significant events in your life. It documents all important episodes where turningpoint decisions occurred. To make certain all key points receive appropriate attention and nothing
is left out, you should start by writing the narrative in a historical, chronological sequence of events
placing special emphasis on key decision points. Along with the time sequence of events, the key
decision points form the outline of the biography. These decision points may be education, family,
personal events, or job related episodes. This phase of the autobiography can vary from a minimum
of three typed pages to as much as twenty pages depending upon your background and the depth
of analysis you wish to pursue. It is important to give an explanation and rationale for the various
life transitional points. This analysis brings out important value considerations. These values
produce the interest levels which have great influence on career satisfaction. A straight narration
of a life sequence rarely achieves the overall objective of self-understanding. Values, interests, and
personal qualities surface only after a thorough analysis of life decisions. Write down the rationale
for key decisions in the sequence of events.
Regrouping. This analysis starts with a regrouping of the chronological events. Rework the
analysis under the following headings:
✔
✔
✔
✔
Education
Work experiences
Family background
Professional/social/civic activities
The regrouping should be written in a highly organized but narrative style. Again, discuss the
“why” of each decision made. The major reason for the regrouping is to put the results into an
organized framework which later becomes the basis of the placement phase of career planning.
Your skills and interests begin to form a pattern which makes the later interview presentation and
resume preparation flow into a harmonized communication package. The education section must
not be simply a listing of events. There must be an explanation of the rationales for your
educational decisions and then an evaluation of those decisions after the training was completed.
Try to cover such points as grades, choice of educational institution, majors, courses, faculty, etc.
Cover the decisions that you had the option of making. Your previous work experience includes
full-time, part-time, and summer experiences. Your attitude toward work says much about your
work ethic and career value structure. Discuss both good and bad experiences. Try to show how
each work activity benefitted you. Describe your duties and responsibilities in great depth by
26
analyzing typical days, weeks, and months. Discuss the relationships you had with supervisors,
peers, and subordinates. Highlight key points of advancement and responsibilities given and/or
taken. No job was too insignificant to cover in this analysis. The reason for covering personal
events and social/professional/civic activities is to draw a value and interest profile. Your
flexibility of choice was probably greater in these activities than in any work or educational
endeavor. How did these choices differ? Why did you elect these activities? How did family
background influence these independent choices?
Your family and social background activities have equipped you with certain skills that education
and work could never have provided. What have you learned from these situations? Would you
consider what you have learned to be valuable skills? Are the skills applicable to work
environments? The regrouping of the chronological autobiographical narrative provides new
insights for your decision making. Why did you make certain decisions? Would you make the
same decisions again? These insights begin to bring out your basic value system, your interests,
and your personal qualities. You will draw upon these insights in your employment interviews and
resume preparation.
Autobiography Action Project.
Provide at least one typewritten page each for work experience, education, family background,
and civic/professional/social activities. Try to have at least one single-spaced, typewritten page for
each of these four categories. The autobiography, written in the two different formats, will serve
as the basis for future career planning decisions.
Skill Identification
This project is designated to assist you in identifying your skills, the degree of competence you
possess in those skills, and ways to illustrate that you have the skills. Job descriptions describe a
basic set of qualifications required to do a job. There is occasionally another set of qualifications
which are preferred but are not required. Qualifications may be specified in terms of education or
prior work experience. What an employer is really seeking is a set of skills. Education and
experience frequently serve to develop those skills. However, skills can be developed in a variety
of ways. The means by which skills have been acquired are not always evident in a formal listing
of a person's background experiences and schooling. Thousands of liberal arts graduates are hired
for those positions each year. Sometimes employers have to be taught that certain educational and
work experiences produce directly relatable job skills. Common impressions can be misleading. It
behooves you, then, to know what skills you have and what levels of competence you possess.
Don't assume that employers know which education class and work experience fostered basic
skills.
Values Clarification
Over a period of many years, you develop a unique way of thinking. A personal philosophy appears
to develop and mature during the teen and college years. It evolves from family, religious, social,
and cultural relationships and environments. You take these philosophical frames of mind to your
work settings. It is not necessarily imperative that the people with whom you share your working
hours maintain the same value structure. It is important, however, that you and your work partners
be tolerant of each other's values because intolerance can lead to discord which has major
27
disruptive effects on work performance. Such a setting is not healthy for success. Since success is
one of your main concerns, it makes sense to analyze exactly where you stand. You may be quite
tolerant of others' viewpoints, but employees presently working with a potential employer may not
be as tolerant. A “nuts and bolts” type of person can run at odds with a “thinker” or “dreamer.”
This means that you must first develop a high level of awareness of your own value structure.
Others are not likely to be in as good a position to assess your capacity to fit in with the
environment. By knowing where you are coming from values-wise, you are much better prepared
to chart the lay-of-the-land when you test the potential work setting. The most difficult aspect of
value analysis is assessing the potential work environment. What is needed is an assessment of the
“personal feeling” you get when you approach the work setting. Do you feel comfortable with the
people for whom you work? Are your attitudes in a no-conflict situation with your peers? In the
abstract, there is no way to analyze the values and philosophies of one work setting. It must be
done with a personal visit and/or a temporary work situation. This testing of the work setting is
most frequently possible in cooperative education, internship, summer, and part-time employment
circumstances.
Interest Inventory
Most colleges and high schools have a department that administers a variety of career-related tests
and inventories. These inventories and tests are very useful in helping you gain a better
understanding of yourself. Psychological tests are not the panacea that will show you exactly which
career field is right for you. They are simply very valid and reliable guides which greatly aid in
helping people make more prudent decisions. Interest inventories are very popular among career
counselors. They offer some specific content relevant to career questions. These inventories are
not tests of aptitude. They indicate only the extent of similarities between a person's interests and
those of people who are successfully employed in specific occupational groups. One popular
inventory used by professional career counselors is the Strong-Campbell Interest Inventory. The
output reports are largely self-interpretable, so the feedback of results is well facilitated. They
require little time of the counselor except for the integration of the results into the overall selfassessment. The Self-Directed Search (S.D.S.) is another interest-related career counseling tool
based on Dr. John L. Holland's theory of personality types and environment models. It is selfscored and self-interpretable with a reasonable level of professional instruction. The use of these
interest inventories leads to a systematic exploration of various career fields. The results tell you
which career group has interests similar to yours. It then leaves the follow-up career exploration
to you. There really is no good substitute for taking an interest inventory. Make arrangements to
take one or all of these inventories. Most university counseling services can provide an interest
inventory for you. There is often a charge for this service.
Personal Descriptors
Judgments about a person are made quickly, often in only part of a thirty-minute interview. After
an interview, what descriptors would a recruiter use to communicate your potential to his or her
boss? Descriptors are personal qualities. Whether for a new job, advancement, or performance
appraisal, people are reviewed by others. A written description is usually made. Successful job
performance is more than education, experience, and skills. Motivational characteristics are just
as important. Personal quality assessment is a beginning step in an evaluation of motivation. Will
28
you, given your skills, actually perform up to your highest potential? What will be written about
you? How can you be sure that it is accurate? You must project a true image if you expect an
accurate assessment. It is impossible to cue your evaluator if you do not have a plan yourself. An
evaluator gets information from you. Do you have an accurate image of yourself? How can you
relay this information? Be honest with yourself. An accurate description is essential.
Career Exploration
Process – Realities – Markets
The job hunter asks: What's available? The employer asks: What job do you want? It is like the
classic chicken and egg confrontation which always results in an impasse. Either you or the
employer must compromise. The issue goes much deeper. You do not want just any job. In reality,
you are not willing to let an employer pick a career for you. Most job hunters have some idea of
what they want. The purpose of playing coy is to get the employer to “show his hand” so that a
broader selection is available.
Exploring the World of Work
Specific job decisions must eventually be made. Decisions require choices. Career options must
be developed. Developing these options is what career exploration is all about. Career exploration
is collecting data about types of opportunities in managerial, technical, and professional career
fields. Your goal is to create the highest possible level of career awareness. The only constraints
on this activity are your time, money, and interest. A wealth of career information is available
Systematic Process
It often takes some digging to collect career information even when you know exactly what type
of information you seek. Because of this, a consistent methodology needs to be developed. A
system is needed for collecting, processing, and evaluating the information. Not all bits of the
research effort will be of significant value. In fact, some of the data will be largely worthless. Some
career information sources have greater credibility than others, and just because it is published
does not mean it is accurate.
Collecting
The first phase of collecting may well begin before college and continue throughout your lifetime.
A specific time, however, needs to be set aside to do some stocktaking. Your motivation and career
interest levels usually peak when you find yourself seeking employment. The systematic collecting
should begin each time you approach this decision point.
Evaluating
The purpose of the evaluation is to make some decision using the collected data. The evaluation
represents an integration of hundreds of variables from both the self-assessment and the
exploration.
Integrating
29
Most individuals face important compromises during this integrating process. Some refuse to
compromise between reality and fantasy. Others restart the career information collection process
as they reject the career field. Still others go through the self-assessment process again.
Deciding
In the end, some type of decision filters out. The decision becomes the career objective statement
on a resume. After the career objective statement, focus centers on several appropriate
assignments. The placement action is close to being utilized, but there still may be further
specification and clarification of career interest. The clarifications continue throughout the
placement process.
Work Environment
Systems – Functions – Responsibility Levels
The private enterprise system provides more jobs for more people than all other employment
sectors. The number of career opportunities in private business far exceeds those in government,
education, social services, non-profit organizations professions, and all other employment
possibilities. The magnitude of private enterprise career possibilities is so overwhelming that it is
extremely ill-advised for you to fail to seriously investigate them.
Private Enterprise System
Many people view private enterprise as consisting of only the giant American corporations, but
private enterprise also includes thousands of small, privately owned businesses ranging from the
corner grocery store to the local bank. Most private enterprises are small to medium-size
organizations, and they are usually owned by the person or persons operating them. These
businesses may have only two or possibly two thousand employees
The free enterprise system permits doctors, lawyers, investors, writers, store managers,
distributors, manufacturers, farmers—anyone—to establish an organization for the purpose of
earning a living plus a reasonable profit by investing, and thus risking, teir time and financial
resources. Most of America's giant corporations started as small, independently owned and
operated organizations and grew over the years by the exercise of sound management practices
Profit Corporations
A corporation is nothing more than a group of people working together toward the common goals
of earning a good living for themselves and their colleagues in the enterprise, and of returning a
reasonable rate of return to the individuals who have invested financial resources in the
corporation. Through mutual funds, the stock market, and insurance firms, private individuals own
corporate America. This includes members of labor unions, employees, housewives, and millions
of other private citizens. Most people in America own shares of major corporations either directly
or indirectly.
Individual Proprietorships
30
What is the difference between an individual and a corporation? Legally, there is a body of laws
that separate individuals and corporate entities, but from a working standpoint, there is no
difference. The reasons individual owners of businesses form corporations are to facilitate the
raising of capital to expand the organization and to limit personal and financial liability. In light
of the current trend toward corporate board members and executives being sued, however, the
protection from legal liability may be diminishing. In such a case then, the primary purposes of
incorporating are to spread the financial risk and to provide capital for expansion. The reason
investors are willing to provide financing is to obtain a rate of return greater than what is possible
through investing in other things. Because the risk of loss is greater than that with a savings
account, insurance, and other forms of insured savings, the anticipated rate of return must be better.
One major goal of many individuals is to someday own a business of their own. In surveys of
recent college graduates, large percentages indicate that their goal is to start working for a large
private enterprise, gain work experience, earn and save capital, develop knowledge in a specific
field, and to eventually leave the corporation to start a new business.
Industry Groups
To help understand the composition of the U.S. work force and how you might fit into the overall
design, private enterprise institutions may be viewed as either goods-producing or serviceproducing organizations. The U.S. Department of Labor further classifies these two groups into
several major divisions according to the product or service. Most of the nation's workers are in
industries that produce services, which include education, health care, trade, repair, government,
transportation, banking, and insurance. The production of goods, such as food, buildings, and
minerals, requires less than one-quarter of the country's work force.
Occupational Classifications
As industries grow in the next decade, changes will take place in the occupational structure. Many
jobs will become more complex and specialized, and thereby an even greater number of
occupational choices will be available. Studying broad occupational groups first helps you get a
handle on how to approach a complex job market. The government classifies workers into four
large groups: white-collar workers, blue-collar workers, service workers, and farm workers.
Professional, technical, and managerial workers make up over half of the white-collar group. A
very high percentage of workers in these groups hold college degrees. Another component of the
white collar group is sales workers, and we are seeing an increasing number of workers in this
category also who hold college degrees.
Chapter 3: Career Planning
31
Career planning is an individual activity. In a free society, no giant bureaucratic organization dares
chart courses for you to follow. You cannot survive happily for very long unless you take
responsibility for the course of your life. The declining lifespan of many jobs (and even entire
career fields) demands a personal planning posture. The short job lifecycles may force you to make
“rolling decisions” annually in order to regenerate new career options. Career planning is not just
a new name for job hunting. Career planning is conceptually and practically different. Job hunting
is only one component of career planning.
Planning Ahead: Exciting productivity advancements imply that more work will be done with
the human mind than with physical skills. Automation is common in manufacturing, marketing
services, and finance. Automation is spreading to all industries. The starting point for tomorrow's
careers is the specific jobs of today. Tomorrow's skills will likely build upon those required in
today's jobs. Career field progress may move at a differing pace in different fields. Today's career
plan may not be tomorrow's career plan. You must look upon career planning as a process that
changes over time. Career planning is a bold, exciting, new approach. It will enrich the lives of
young and old alike. Planning implies more work now, but the returns throughout life will pay an
excellent dividend
The Work Setting: The future . . . what will it hold? The world of work holds open a massive
array of work possibilities. Work is a significant part of your life. Work alone is not a person's
whole reason for being, but it has historically influenced how our society views an individual’s
success. Success is often defined in terms of significant work achievements. Even newspaper
obituaries cite these past achievements daily. The premise of this book is that work can be
enjoyable. Your happiness comes about in various ways and from many different things, but the
proper work activity and work environment can be sources of much satisfaction in life.
Life Decisions: Three of the most important decisions people make in life relate to buying an
automobile, investing in a home, and choosing a marriage partner. Hours, days, weeks, and months
are spent making these decisions. Every aspect is usually analyzed very thoroughly. Those
decisions usually have long-term impacts on happiness. Deciding what to do tonight and the
decision about where to go next Saturday night is important to most people. Many hours go into
making “Saturday night” types of decisions. Planning and analyzing before making a decision in
our personal life is very common. This book is about work. All of us need to spend more time
thinking about it. Work is too important to leave to chance. Nonetheless, thousands of people let
their lives haphazardly fall into work activities and allow important decisions to be made for them
by others and by happenstance. Some get lucky. Others pay too high a price for many years. Why
not spend some time planning for a lifetime of work activity? Is that not just as important as the
decision about which car, stereo, or house to purchase? Why do most people spend so much time
on minor decisions in life and so little time on decisions that can mean so much? Your quality of
life is greatly enhanced by a job that makes sense to you.
Significance of Planning: This book is directed toward those individuals who are seeking careers
in managerial, technical, or professional fields. Although applicable to a very wide age range, the
most directly affected age category is the 20 to 40 age range. Career decisions are significant
decisions! Perhaps no other decision that an individual makes has such a major impact on
economic well-being. Careful planning is hard work. It is not always fun. It can be boring. It can
32
be exciting. It is important. Everyone, including you, should prepare a plan. Plans can be modified
as new information arrives. Many people do not bother with career planning. They prefer to roll
with the punches . . . and they sometimes get knocked out of the real meaning of life before they
get started. Satisfaction comes from knowing that you recognized the challenge and then took a
deliberate course of action to achieve your career, life, and personal goals.
Life Planning: You are not restricted to one career for your whole life! A person may carry out
several unrelated work roles over time. Why can't you be a business executive, a doctor, and an
architect in your lifetime? Planning involves setting goals that can be realistically achieved. Goals
motivate us. Striving to satisfy goals can be fun. You may have a few major goals and hundreds
of subtotals that serve as building blocks for your future. The basis of life planning is setting
achievable personal objectives. Career planning is a major element of life planning. For some
work-oriented people, life planning is career planning. The two are always interrelated. This book
zeros in on the career aspects of life planning.
Career Jargon: Career planning professionals throw a fair share of jargon at the people they
counsel. There are several words that when taken out of context have multiple meanings.
✔ Job. A job is a work situation taken for the purpose of earning wages for completing a task,
a series of tasks, or a definitive piece of work. A job frequently is temporary in nature and
the word seldom implies a long-term commitment to a given type of work. A job rarely
requires a long training period for mastery of the work assigned. A job can be the starting
point or intermediate step in your career.
✔ Career. A career is a work experience that you elect to pursue during a significant period
of time in life. A career involves a relatively long-term commitment to a given work
activity. A career requires a significant level of formal education, training, and background
for satisfactorily performing in the work area. It may involve a series of related job
experiences.
✔ Planning. Planning means devising a scheme for doing, making, or arranging a project,
program, or schedule. Planning is a process that occurs over time and one that adjusts itself
when new information becomes available. Planning involves charting a course of action
and then adjusting the course as the situation changes from the originally hypothesized
projection
What is Career Planning?
Career planning is an activity that occurs throughout your working lifetime. It is futuristic. Career
planning is distinct from life planning in that it does not initially attempt to integrate a broader
array of planning variables such as early childhood, family, religion, values, leisure, retirement,
and other personal goals. Career planning is a sub-component of life planning that draws upon
many of the same background variables, but it focuses attention on the work activity and work
environment. There are many instances in which career and life planning cannot be completely
separated. Career planning reverts to solely job hunting unless three activities are addressed
individually and in concert. Assessment, exploration, and placement form the framework of sound
career planning. The concept builds a method of appraising career potential, exploring various
33
alternatives, and implementing an action plan designed to achieve a predetermined set of career
goals.
Career Map: In today's rapidly evolving job market, navigating a successful career requires a
well-thought-out roadmap. A career map serves as a guide, helping individuals strategically plan
their professional journey. It begins with self-assessment, where one identifies their strengths,
interests, and values. By exploring various career options and conducting thorough research,
individuals can set clear goals that align with their aspirations. Understanding the skills and
knowledge required for their chosen path, they can develop a plan to acquire or enhance those
abilities. Gaining relevant experience through internships, part-time jobs, and volunteer work
further strengthens their profile. With a career map in hand, individuals can confidently chart their
course toward a fulfilling and successful professional future.
SMART Goal/Target: In the pursuit of personal and professional success, setting SMART goals
is a powerful tool. A SMART goal is specific, measurable, attainable, relevant, and time-bound.
By incorporating these criteria into goal setting, individuals can establish clear and actionable
targets that propel them forward. Whether it's completing a manuscript, reaching a specific word
count, or securing a publishing deal, a SMART goal provides a roadmap for progress. It ensures
that goals are well-defined, progress can be tracked, and realistic milestones are set. With a
SMART goal in place, authors can stay focused, motivated, and accountable as they navigate the
challenging and rewarding path
34
Chapter 4: Presentation Skills Development
Tips to develop your presentation skills:
✔ Know your audience. What are their interests? What do they already know about your topic?
What do they want to learn? Tailor your presentation to your audience's needs.
✔ Practice, practice, practice! The more you practice, the more confident you will feel when you
give your presentation. Practice in front of a mirror or a friend. Record yourself and watch it
back to see how you can improve.
✔ Be organized. Have a clear plan for your presentation. Know what you want to say and in what
order. Use an outline or a PowerPoint presentation to help you stay on track.
✔ Be enthusiastic. Show your audience that you are excited about your topic. Speak clearly and
with energy. Make eye contact and smile.
✔ Use visuals. Visuals can help to make your presentation more engaging and memorable. Use
charts, graphs, images, and videos to illustrate your points.
✔ Be prepared for questions. Anticipate the questions that your audience might ask and have
answers ready. If you don't know the answer to a question, don't be afraid to say so.
✔ Relax and enjoy yourself! The more relaxed you are, the more confident you will appear. Take
a deep breath and smile. Your audience will appreciate your effort.
Here are some additional tips that can help you improve your presentation skills:
▪
▪
▪
▪
▪
▪
Use active voice. Instead of saying, "The data was analyzed," say, "We analyzed the data."
Use strong verbs. Instead of saying, "We looked at the problem," say, "We investigated the
problem."
Use specific examples. Don't just tell your audience what you did; show them. Use specific
examples to illustrate your points.
Vary your tone of voice. Don't just speak in a monotone. Use a variety of tones to keep
your audience engaged.
Make eye contact. This shows that you are confident and that you are interested in what
you are saying.
Smile. This makes you appear friendly and approachable.
By following these tips, you can improve your presentation skills and give presentations that are
engaging, informative, and memorable.
35
Chapter 5: CV Writing & Video Resume
Your resume is your passport to job interviews.
Resume Preparation Techniques:
A good resume can greatly improve your odds of obtaining an interview. If there is an opening
and if your background fits, you normally will get an interview then or an appointment time for
one later. A well-constructed resume improves your odds, and if you have the time, this direct
approach can produce interviews. If you do get the interview, the resume will facilitate and aid the
interview process. If you fail to land an interview, many employers will keep your resume on file
in the event an opening develops later.
Here's a resume preparation guide:
1. Tailor your resume: Customize your resume to match the job requirements, highlighting
relevant skills and experiences specific to the position.
2. Clear and concise format: Use a clean and professional template for easy readability and
organization of information.
3. Compelling summary or objective statement: Write a concise statement that grabs the
reader's attention and highlights your key qualifications and career goals.
4. Showcase achievements and impact: Emphasize quantifiable accomplishments and
outcomes to demonstrate your value and contributions in previous roles.
5. Highlight relevant skills: Include a dedicated section that showcases your key
competencies, aligning them with the job requirements.
6. Include work experience: List your work history in reverse chronological order, providing
job titles, company names, employment dates, and a brief description of responsibilities
and achievements.
7. Include education and certifications: Detail your educational background, degrees,
diplomas, and relevant certifications.
8. Additional sections: Add sections like volunteer work, internships, affiliations, or projects
to showcase extra experiences and skills.
9. Proofread and edit: Ensure your resume is error-free by carefully reviewing it for spelling,
grammar, and formatting mistakes.
10. Maintain an updated resume: Regularly update your resume to reflect new experiences,
skills, and achievements as you progress in your career.
By following these points, you can create a concise and impactful resume that effectively presents
your qualifications to potential employers.
Resume Content
When preparing the contents of your resume, it's important to include relevant information that
showcases your qualifications and experiences. Here are the key sections to include in your
resume:
36
1. Contact Information: Your full name, phone number, professional email address, and
optionally, your LinkedIn profile.
2. Summary or Objective Statement: A concise statement that summarizes your key
qualifications and career goals.
3. Work Experience: List your professional experience in reverse chronological order,
including job titles, company names, employment dates, and a description of your
responsibilities and achievements in each role.
4. Education: Include your educational background, including degrees, diplomas, and
certifications. Mention the institution's name, degree earned, and graduation dates.
5. Skills: Highlight your key skills relevant to the job you're applying for, such as technical
skills, software proficiency, languages, or specific industry-related competencies.
6. Achievements or Accomplishments: Include a section to showcase notable achievements,
awards, or recognition you have received in your career.
7. Certifications and Training: List any relevant certifications, licenses, or professional
development courses you have completed.
8. Volunteer Work or Community Involvement: Include any volunteer experiences or
community involvement that demonstrates your commitment and contributions outside of
work.
9. Professional Affiliations: Mention any memberships or affiliations with professional
organizations related to your field.
10. References: Optionally, you can provide references or indicate that they are available upon
request. Include the contact information of professional references who can vouch for your
qualifications.
Remember to tailor the contents of your resume to match the specific job you're applying for,
emphasizing the most relevant experiences and skills. Keep the overall length concise and focus
on highlighting the key information that makes you a strong candidate.
Cover Letter
A cover letter is a one-page document that you submit with your resume when applying for a job.
It is your chance to introduce yourself to the hiring manager and explain why you are interested in
the position. A well-written cover letter can help you stand out from the competition and increase
your chances of getting an interview.
The purpose of a cover letter is to:
✔
✔
✔
✔
Introduce yourself to the hiring manager
Explain why you are interested in the position
Highlight your skills and experience that are relevant to the job
Persuade the hiring manager to interview you
Here are the main sections of a cover letter:
37
❖ Salutation: Address the hiring manager by name, if possible. If you don't know the hiring
manager's name, use "Dear Hiring Manager."
❖ Introduction: State your name and why you are writing. Briefly explain why you are
interested in the position and the company.
❖ Body: Highlight your skills and experience that are relevant to the job. Use specific
examples to illustrate your skills and experience.
❖ Conclusion: Restate your interest in the position and the company. Thank the hiring
manager for their time and consideratio
38
Chapter 6: Personal Branding Tools: Unleashing the Power Within
Introduction to Personal Branding
In today's interconnected world, personal branding has become an essential tool for individuals
looking to establish their presence, differentiate themselves, and stand out in various aspects of
life. Whether you are a professional seeking career advancement, an entrepreneur building a
business, or an influencer in the digital realm, personal branding allows you to showcase your
unique strengths, skills, and values to attract opportunities and create a lasting impact.
However, personal branding is not just about self-promotion; it involves a strategic approach
that aligns your authentic self with your professional aspirations. To harness the power of
personal branding, you need the right tools and effective profile management.
Defining Personal Branding Tools
Personal branding tools are the resources, strategies, and techniques individuals use to shape,
develop, and manage their personal brand effectively. These tools encompass both online and
offline elements that help create a consistent and compelling image and reputation. They serve
as enablers to showcase your expertise, build credibility, engage with your audience, and
cultivate meaningful relationships. Let's explore some of the most effective personal branding
tools and profile management techniques you can leverage to unlock your full potential.
Online Personal Branding Tools
1. Website or Blog
Having a website or blog is the cornerstone of your online personal brand. It provides a platform
where you can showcase your achievements, share valuable insights, and establish your
expertise. A well-designed website with a professional domain name and relevant content not
only helps in building credibility but also serves as a hub for all your online activities. Regularly
updating your website or blog with fresh content ensures that you stay relevant and engage your
audience effectively.
2. Social Media Platforms
Social media platforms like LinkedIn, Twitter, Instagram, and Facebook offer incredible
opportunities to amplify your personal brand. Each platform has its own unique characteristics
and audience demographics, allowing you to tailor your content and engagement strategies
accordingly. Consistently sharing valuable content, engaging with your audience, and building
39
relationships through social media can significantly enhance your brand visibility and influence.
It is crucial to maintain a professional and consistent presence across these platforms, aligning
your content with your personal brand messaging.
3. Content Creation
Content creation plays a crucial role in personal branding. Whether it's writing articles, creating
videos, hosting a podcast, or sharing visual content, the key is to provide valuable and relevant
information to your target audience. By consistently producing high-quality content that
showcases your expertise and unique perspective, you establish yourself as a thought leader and
build trust with your audience. Additionally, repurposing content across different platforms
maximizes your reach and impact.
4. Personal Branding Videos
Videos are a powerful medium to convey your personal brand effectively. Platforms like
YouTube, Vimeo, and TikTok allow you to create and share videos that highlight your skills,
share insights, or tell your personal story. By leveraging the power of visuals and storytelling,
you can engage with your audience on a deeper level and leave a lasting impression. Creating a
video series or vlogs that provide value to your audience can help solidify your personal brand
and build a loyal following.
5. Online Portfolio
If you are in a creative field or have tangible work products, an online portfolio is an excellent
personal branding tool. It showcases your past projects, accomplishments, and the quality of
your work. An online portfolio can be a standalone website or integrated within your personal
website, providing potential employers or clients with a tangible demonstration of your skills
and capabilities. Regularly updating your portfolio with new projects and highlighting your best
work ensures that you are always presenting yourself in the best possible light.
Profile Management Techniques
Consistent Branding Elements
To maintain a strong and cohesive personal brand, it's crucial to have consistent branding
elements across all your online platforms. This includes your profile pictures, cover photos, color
scheme, typography, and overall visual aesthetics. Consistency in branding creates a
recognizable identity and helps your audience associate these elements with your personal brand.
1. Brand Messaging
40
Crafting a clear and compelling brand message is essential to effectively communicate your
value and purpose. Your brand message should reflect your unique selling proposition, the
benefits you offer, and the values you stand for. Consistently incorporating this brand messaging
in your content, social media posts, and interactions helps create a strong brand identity and
resonates with your target audience.
2. Engagement and Relationship Building
Building relationships and engaging with your audience is a critical aspect of personal branding.
Responding to comments, messages, and inquiries in a timely and genuine manner shows your
commitment to your audience and helps build trust and loyalty. Actively participating in relevant
online communities, attending industry events, and collaborating with others in your field can
further enhance your personal brand and open doors to new opportunities.
3. Continuous Learning and Growth
Personal branding is an ongoing process, and it's essential to continuously learn and grow in your
field. Stay updated with the latest industry trends, technologies, and best practices. Seek
opportunities to acquire new skills, attend workshops or conferences, and participate in relevant
training programs. By showcasing your commitment to personal growth and development, you
strengthen your personal brand and position yourself as a credible authority in your niche.
4. Monitoring and Adjusting
Regularly monitoring your personal brand's performance and making adjustments based on
feedback and insights is vital to its success. Use analytics tools to track the engagement and reach
of your content, measure the impact of your branding efforts, and identify areas for improvement.
Pay attention to the feedback you receive from your audience and make necessary adjustments
to ensure that your personal brand remains relevant and resonates with your target audience.
In conclusion, personal branding is a powerful tool that allows individuals to shape their image,
build credibility, and create opportunities. By leveraging the right tools and implementing
effective profile management techniques, you can unlock the full potential of your personal
brand. Online personal branding tools such as websites or blogs, social media platforms, content
creation, personal branding videos, and online portfolios provide avenues for showcasing your
expertise, engaging with your audience, and building a strong brand presence. Coupled with
profile management techniques like consistent branding elements, strong brand messaging,
engagement and relationship building, continuous learning and growth, and monitoring and
adjusting, you can guide your personal brand towards success and achieve your goals.
41
Chapter 7: Mastering the art of communication skills
Communication skill is one of the most demanding skills by the employers of the 21 st century.
People with good communications skills are more likely to succeed in life which is contrary to the
people with poor communication skills. Communication skill is not crucial only for a career, it also
affects your personal life and relationship. Miscommunication can cause serious damage to
relationships.
Mastering the art of communication is one of the most important skills a person can ever possess.
What is communication?
Communication is the process of sending a meaningful message to a person.
Proper communication is done when the receiver decodes the message exactly
what the sender meant. Proper communication requires two parties and their
effort.
Types of Communication
There are two types of communication. 1) Verbal communication 2) Non-verbal communication
According to a study done by “Professor Albert Mehrabian” effective
communication 93% depends on non- verbal communication and only 7%
depends on verbal communication. Strangely, people mostly focus on words
than their expressions hence, miscommunications occur.
42
Verbal communication: Verbal communication is done using speech. It is more than
just delivering the message. A good communicator also needs to receive and interpret
messages clearly. Employers highly value those people who can explain clearly and
interpret messages accordingly. There are four verbal communication skill
❖ Listening: Listening is a communication skill that we acquire naturally. But,
mastering the skill needs extra effort. We use our ears and brain to receive and
process the information which is a passive or receptive skill. Listening is
important because, if you fail to listen, you will not be able to interpret or reply
properly. An average adult person spends 70% of their time communicating
with others of which, 45% is devoted to listening, 30% speaking, 16% reading,
and 9% writing. One of the most common listening barriers is that we listen to
half of what the counter person is saying and think about what our reply will
be in the other half. Thus, we lose a major portion of the meaning of what the
person was saying. So, listen carefully till the end.
❖ Speaking: The second most important language skill is speaking. Speaking
skill is one the most difficult skill to master in communication. The words we
utter and the tone we use combines the skill of speaking. Speaking can be
interactive, partly interactive and non-interactive. Talking to a person over
phone or face to face is interactive, giving a speech in front of an audience is
partly interactive and recording a speech on camera or radio is non-interactive
speaking. Improving communication skill require lots of practice.
❖ Reading: The third language skill of verbal communication reading. While
reading may sound easy, some people find it really difficult to read properly.
Reading skill is not about how fast one can read it is about reading and
understanding the message. Practice and consistency can help a person
improve reading skill.
❖ Writing: The language skill is writing. Although for some people writing
skills may not be as necessary as the first two were but the minimum level of
proficiency in writing is required for every person regardless of their
profession. Writing skill is directly related to the speaking skill. Correct
grammar, spelling, and punctuation are some of the elements that make your
writing skill better.
❖ Non-verbal communication: Non-verbal communication is the most
important part of communication. Words can have different meanings when
different types of expressions are added to it. But, most people underestimate
the necessity of non-verbal communication. Non-verbal communication is a
universal way of expressing one's feeling that can be mastered by practice.
Every day we respond to thousands of non-verbal cues including gestures,
43
postures and facial expressions. There are several more non-verbal
communications❖ Facial expressions: A smile or a frown can send a thousand words. Facial
expression is responsible for the major part of non-verbal communication. The
first thing we notice about a person is the look on their face and try to judge
what their mood is. There are some expressions that may be different across
countries but the most common ones like being sad, happy or angry are similar
in other parts of the world.
❖ Body language and posture: Body language is another most common form
of non-verbal communication. Different postures carry a different kind of
meaning and information that helps the communication to be more effective.
Arm-crossing or leg-crossing is known as the defensive posture whereas hands
on the hip is an aggressive posture.
❖ Gestures: Signs are the mostly used non-verbal form of communication.
Although, same sign can mean a different thing in a different region it is crucial
to master the sign language as it carries a great deal of information
❖ Eye contact: Eye gaze is another most important element of nonverbal
communication. Looking, blinking, staring refers to different meanings and
information. Looking at others in different ways convey a different kind of
behavior. Eye contact is an important sign of confidence, respect, and social
communication.
There are few other types of non-verbal communications available. Paralinguistic,
proxemics, appearances, haptic and time are few to mention.
Everything you do in your workplace is a result of communication. Communication
is the heart and soul of an organization. Improper communication can cause a great
deal of loss in business or personal life. Try to master communication skills. Never
underestimate the need for non-verbal communication.
Presentation skills development
Presentation skill is not just speaking in front of a large audience. Talking to
someone in person can also be a presentation. For the majority of the people,
the most fearful presentation is their job interview. Job interviews are a
presentation as well. Your day-to-day teamwork, showcasing your ideas to
others, guiding or training someone requires good presentation skill.
Presentation skill is a communication skill. Mastering the presentation skill can
reduce the amount of miscommunication. Miscommunication is one of the
major reasons for work-related stress. A proper presentation can reduce
miscommunication thus work-related stress.
44
4Ts of Presentation
If you want to give your presentation to an audience. It is important that you know the formula
for a proper presentation. There are 4 Ts of presentation that will help you render a quality
presentation next time.
● Tell them what you are going to tell them: At the beginning of your presentation, you
need to brief the audience about what they will get from you. You can utter the topic of
your presentation and describe what it is. Tell them why this topic is important. At this
point, the audience will have a clear understanding of what to expect from the rest of the
presentation.
● Tell them: This is the main body of the presentation where you will talk about the detail
of the topic.
● Tell them what you have told them: This is the part where you conclude your
presentation. Provide an overview of the presentation. Remind them what you have
already told them.
● Test them: At the end of your presentation, you should allow them to ask questions or
you can ask them queries related to your presentation.
A to F method of sudden speech:
Sudden or impromptu speech is a kind speech that you will not be aware of until the
very moment of the speech. In this kind of situations, A to F method works nicely. It’s
a step by step method that will help you to excel in your next extempore speech.
● A – Appreciation: At the beginning of your speech appreciate the organizer and the
audience for attending there. Be humble and thank the organizer for inviting you.
● B – Best: Now, appreciate the topic that is being discussed there as best suited and
timely. This will make the organizer happy.
● C – Care: Show that you care about the topic of the discussion. Try to share a story from
your life related to that discussion.
● D – Danger: The first three letters created a positive emotion among the audience. Now,
it is time to give them a shock by changing the direction. Explain some of the demerits
about the discussion in a positive manner. Explain further how you and the audience can
help to solve the problem.
● E – Empathy: At this point in time, you have reached the end of your speech. It is the best
time to open the floor for questions. You can ask questions as well. This will create a
two-way communication between you and the audience.
45
● F – Finally: Now is the best time to wrap your speech in the form of finally. Give your
concluding remarks. Appreciate the audience again, thank them and finish your speech.
46
Chapter 8: Building Tech Skills for Graduate Employability
Introduction
In today's digital age, having strong tech skills is essential for graduate employability. Employers
across various industries are seeking candidates who can navigate technology proficiently and
leverage it to enhance productivity and innovation. In this chapter, we will explore various
essential tech skills that can greatly enhance your employability. By developing and honing these
skills, you will be better prepared to succeed in the ever-evolving job market.
Section 1: Computer Skills - Number and Data Skills
Computer skills, particularly those related to numbers and data, are crucial in many professional
fields. Here are some sub-topics to focus on when building your computer skills:
✔ Spreadsheet Management: Learn to use spreadsheet software such as Microsoft Excel or
Google Sheets. Master functions like data entry, formatting, formulas, and data analysis.
Explore advanced features like pivot tables and macros.
✔ Data Visualization: Develop skills in creating visually appealing and informative charts,
graphs, and dashboards. Use tools like Excel, Tableau, or Power BI to present complex
data in a clear and concise manner.
✔ Statistical Analysis: Familiarize yourself with statistical analysis tools like SPSS or R.
Learn to analyze and interpret data using statistical techniques, such as regression analysis,
hypothesis testing, and data modeling.
Section 2: Technical Skills
Technical skills refer to the specific knowledge and abilities required for a particular field or
industry. Here are some strategies to develop and enhance your technical skills:
✔ Research and Self-Study: Stay updated with the latest advancements in your field by
reading industry publications, research papers, and online resources. Participate in
webinars, workshops, or online courses to expand your knowledge.
✔ Hands-On Experience: Seek opportunities to gain practical experience through internships,
projects, or volunteering. Apply your technical knowledge to real-world scenarios and
build a portfolio of your work.
✔ Continuous Learning: Embrace a growth mindset and commit to lifelong learning.
Technology is constantly evolving, so stay curious and open to acquiring new skills and
adapting to emerging trends.
47
Section 3: Online Collaboration Tools (Google Docs, Dropbox, Blogs)
In today's interconnected world, online collaboration tools are essential for effective teamwork and
remote work scenarios. Here are some key tools to focus on:
✔ Google Docs: Learn to collaborate on documents in real-time, edit, and share files with
colleagues using Google Docs. Familiarize yourself with features like commenting, version
control, and simultaneous editing.
✔ Dropbox: Understand how to use cloud storage and file-sharing platforms like Dropbox to
securely store and share files across devices. Learn to set up shared folders, control
permissions, and collaborate with team members.
✔ Blogging Platforms: Develop skills in creating and managing blogs using platforms like
WordPress, Medium, or Blogger. Learn to write engaging content, customize layouts, and
leverage SEO techniques to increase visibility.
Section 4: Excel
Microsoft Excel is a widely used spreadsheet software with numerous applications in various
industries. Here's how you can build your Excel skills:
✔ Basic Functions: Learn fundamental Excel functions such as data entry, formatting, sorting,
filtering, and basic calculations. Familiarize yourself with common formulas like SUM,
AVERAGE, COUNT, and IF statements.
✔ Advanced Features: Explore advanced features like pivot tables, data validation,
conditional formatting, and data analysis tools. These functionalities enable you to analyze
and visualize data more efficiently.
✔ Automation: Use Excel's built-in automation features, such as macros and VBA (Visual
Basic for Applications), to streamline repetitive tasks and improve efficiency. Automate
data entry, generate reports, or perform complex calculations.
Section 5: PowerPoint (PPT)
Presentation skills are crucial in many professional settings. Microsoft PowerPoint is a powerful
tool for creating engaging and visually appealing presentations. Here's how you can improve your
PowerPoint skills:
✔ Design Principles: Learn the principles of effective slide design, including visual hierarchy,
color schemes, font selection, and layout. Use these principles to create visually appealing
and engaging presentations.
48
✔ Multimedia Integration: Explore the integration of multimedia elements like images,
videos, and audio clips into your presentations. Utilize transitions and animations to
enhance the flow and impact of your message.
✔ Storytelling: Master the art of storytelling in your presentations. Structure your content in
a logical and compelling manner, using narratives and visuals to captivate your audience
and deliver a clear message.
Section 6: Software Related to Majors
Depending on your field of study, there may be specific software tools or platforms that are
relevant to your major. Here are some steps to consider:
✔ Research Industry Standards: Identify the industry-specific software tools commonly used
in your field. Consult professionals, faculty members, or online resources to understand the
industry standards.
✔ Skill Development: Acquire hands-on experience with the software tools relevant to your
major. Seek opportunities to practice and develop your proficiency through coursework,
internships, or personal projects.
✔ Certifications: Consider obtaining certifications related to specific software tools or
platforms. Certifications can enhance your resume and demonstrate your expertise to
potential employers.
Section 7: Data Management Tools
In the era of big data, data management skills are in high demand. Here are some key data
management tools to focus on:
✔ Database Management Systems (DBMS): Familiarize yourself with popular DBMS
platforms like MySQL, Oracle, or Microsoft SQL Server. Learn to design, create, and
query databases effectively.
✔ Data Cleaning and Preparation: Develop skills in data cleaning and preprocessing
techniques using tools like OpenRefine or Python libraries like Pandas. Understand how to
handle missing data, outliers, and data inconsistencies.
✔ Data Visualization Tools: Explore data visualization tools like Tableau, Power BI, or
Python libraries such as Matplotlib and Seaborn. Learn to create visually appealing and
informative visualizations to communicate insights effectively.
Section 8: Search Engines
Proficient use of search engines is crucial for efficient research, information retrieval, and staying
updated with industry trends. Here are some strategies to enhance your search engine skills:
49
✔ Advanced Search Techniques: Learn advanced search techniques, such as Boolean
operators, phrase searches, and advanced filters. These techniques allow you to refine
search results and find relevant information more effectively.
✔ Fact-Checking and Source Evaluation: Develop critical thinking skills to evaluate the
credibility and reliability of online sources. Verify information using reputable sources and
fact-checking websites.
✔ Staying Updated: Stay informed about new search engine features and capabilities.
Understand how to leverage search engine tools like Google Scholar, Google Alerts, or
RSS feeds to receive updates on specific topics or keywords.
Section 9: Other Tech Skills (Graphics Design, Programming, etc.)
Depending on your interests and career goals, there may be additional tech skills worth developing.
Here are some examples:
✔ Graphics Design: Familiarize yourself with graphic design tools like Adobe Photoshop,
Illustrator, or Canva. Learn design principles, color theory, typography, and image
manipulation techniques.
✔ Programming Languages: Explore programming languages relevant to your field, such as
Python, Java, R, or JavaScript. Understand basic programming concepts, algorithms, and
data structures.
✔ Web Development: Develop skills in web development technologies like HTML, CSS, and
JavaScript. Learn to create and customize websites, understand responsive design, and
utilize frameworks like Bootstrap or React.
Conclusion
Building tech skills is crucial for graduate employability in today's digital world. By focusing on
computer skills, technical skills, online collaboration tools, software related to your major, data
management tools, search engines, and other tech skills, you will be well-prepared to thrive in a
technology-driven workplace. Remember to stay updated with emerging technologies, practice
hands-on learning, and seek opportunities to apply your skills in real-world scenarios. With
dedication and continuous learning, you can position yourself as a highly sought-after candidate
in the job market.
50
Chapter:9 Subjective Knowledge
Finance Terminologies
✔ Abnormal Return: The difference between an actual return and a benchmark or expected
return or normal return based on the market’s return and concerns security’s relationship with
the market.
✔ Accelerated depreciation: The method of depreciation that writes off the cost of a capital
asset faster than the write-off under the straight-line depreciation method. The three principal
methods of accelerated depreciation are (a) sum-of years’ digits, (b) double declining balance,
and (c) units of production.
✔ Accounts payable: The amounts due to suppliers of goods and services of an organization.
✔ Accounts receivable: Amounts of money owed to a firm by customers who have bought goods
or services on credit. A current asset, the accounts receivable amount is also called receivables.
✔ Accrual accounting:A method of accounting in which revenue is recognized when earned and
expenses are recognized when incurred without regard to the timing of cash receipts and
expenditures.
✔ Accruals: Liabilities for services received for which payment has yet to be made. Examples
include accrued wages, accrued taxes, and accrued interest.
✔ Accrued expenses: Amounts owed but not yet paid for wages, taxes, interests, and dividends.
The accrued expenses account is a short-term or current liability.
✔ Active management: Attempts to identify mispriced securities, or to forecast broad market
trends.
✔ Active portfolio strategy: A strategy that uses available information and forecasting
techniques to seek better performance than a buy and hold portfolio.
✔ Agency costs: Costs of resolving the conflicts of interest among stockholders, bondholders,
and managers. They include the costs of providing managers with an incentive to maximize
shareholders’ wealth and then monitoring their behavior, and the cost of protecting
bondholders from shareholders.
✔ Agency problem: Conflicts of interest among stockholders, bondholders, and managers.
✔ Agency theory: The theory of the relationship between principals and agents. It involves the
nature of the costs of resolving conflicts of interest between principals and agents.
✔ Alpha: In a nutshell, alpha is the difference between a fund's expected returns based on its
beta and its actual returns. Alpha is sometimes interpreted as the value that a portfolio manager
adds, above and beyond a relevant index's risk/reward profile.
✔ Amortization: Process of writing off or liquidating an asset or loan periodically on an
installment basis.
✔ Analyst: Employee of a brokerage or fund management house who studies companies and
makes buy-and-sell recommendations on stocks of these companies.
51
✔ Angel investor: A private wealthy individual that has no association with a venture capital
firm, investment fund, etc. The "angel" invests private money into what he/she believes to be
promising opportunities i.e. normally start-up companies.
✔ Annual report: Yearly record of a publicly held company's financial condition. It includes a
description of the firm's operations, as well as balance sheet, income statement, and cash flow
statement information. SEC rules require that it will be distributed to all shareholders.
✔ Annuity: A series of uniform receives (payments) for a specific number of years, which results
from an initial deposit (receipts).
✔ Appreciation: Increase in the value of an asset.
✔ Arithmetic mean or Average
A measure of mean annual rates of return equal to the sum of annual holding period rates of return
divided by the number of years.
✔ ARBITRAGE
The simultaneous purchase and sale of an asset in order to profit from a difference in the price.
✔ AMERICAN OPTION
An option which can be exercised at any time between the purchase date and the expiration date.
✔ ASKED PRICE
The price a seller is willing to accept for a security, also known as the offer price. Along with the
price, the ask quote will generally also stipulate the amount of the security willing to be sold at
that price.
✔ Auction market
The most integrated market is an auction market, in which all traders’ coverage at one place to buy
or sell an asset.
✔ Asset allocation
The process of deciding how to distribute an investor’s wealth among different asset classes for
investment purposes.
✔ Asset pricing model
A model for determining the required or expected rate of return on an asset. See Also Capital Asset
Pricing Model and Arbitrage Pricing Theory.
✔ Balance sheet
A financial snapshot, taken at a point in time of all the assets the company owns and all the claims
against those assets.
✔ Balloon payment
A payment on a debt that is much larger than other payments. The ultimate balloon payment is the
entire principal at maturity.
✔ Banker’s acceptance
The short-term promissory notes for which a bank (by having “accepted” them) promises to pay
the holder the face amount at maturity.
✔ Bankruptcy
52
The legal mechanism by which creditors take the lead over a company after that company could
not meet it's debt commitments.
✔ Barter
A form of trading where the parties are accepting goods as payment rather than cash.
✔ Behavioral finance
The study of investment behavior, based on the belief that investors do not always act rationally.
✔ Beta coefficient
A measure of the extent to which the returns on a specific stock move with the stock market.
✔ Blue-chip Company
Large and creditworthy company. Used in the context of general equities. Company renowned for
the quality and wide acceptance of its products or services, and for its ability to make money and
pay dividends.
✔ Bond indenture
A legal document specifying the rights and obligations of both the issuing firm and the
bondholders.
✔ Bond rating
A rating based on the possibility of default by a bond issuer. The ratings range from AAA (highly
unlikely to default) to D (in default).
✔ Bond
A security that obligates the issuer to make specified payments to the holder over a period of time.
✔ Bid Price
That a trader of foreign exchange (typically a bank) is willing to pay for a particular currency.
✔ Bid-asked spread
Difference between the price at which a bank is willing to buy a currency and the price at which it
will sell that currency.
✔ BSEC
The Bangladesh Securities and Exchange Commission (BSEC) is the regulator of the capital
market of Bangladesh, comprising Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange
(CSE). The Commission is a statutory body and attached to the Ministry of Finance.
✔ Block Transaction
An order or trade submitted for sale or purchase of a large quantity of securities. A block trade
involves a significantly large number of shares or bonds being traded at an arranged price between
parties, outside of the open markets, in order to lessen the impact of such a large trade hitting the
tape.
✔ Break-even analysis
An analytical technique for studying the relationship among fixed cost, variable cost, profits and
sales volume.
✔ Broker
53
An individual who is paid a commission for executing customer orders. Either a floor broker who
executes orders on the floor of the exchange, or an upstairs broker who handles retail customers
and their orders.
✔ Business cycle
A recurrent cycle of growth, decline, recession, and recovery in the economic activity of a capitalist
country.
✔ Business risk
The risk related to the inability of the firm to hold its competitive position and maintain stability
and growth in earnings.
✔ Buy-side analyst
A financial analyst employed by a non-brokerage firm, typically one of the larger money
management firms that purchases securities on its own account.
✔ Call money
Money put into the money market that can be called at short notice.
✔ Call option
A contract that gives the holder the right to purchase a specified quantity of the underlying asset
at a predetermined price (the exercise price) on or before a fixed expiration dates.
✔ Call provision
A written agreement between an issuing corporation and its bondholders that gives the corporation
the option to redeem the bond at a specified price before the maturity date.
✔ CAMEL rating
A system that assigns a numerical rating to bank based on examiner judgment regarding the bank’s
capital adequacy (C), asset condition (A), management quality (M) , earnings record (E) and
liquidity position (L).
✔ CAPEX
An acronym for capital expenditure.
✔ Capital adequacy
The ability of a bank to meet the needs of their depositors and other creditors in terms of available
finds.
✔ Capital asset
A long-term asset that is not purchased or sold in the normal course of business. Generally, it
includes fixed assets, e.g., land, buildings, equipment, fixtures and furniture.
✔ Capital budgeting
The process of identifying, analyzing and selecting investment projects whose returns (cash flows)
are expected to extend beyond one year.
✔ Capital expenditure
Outlay required for acquiring a fixed asset from which benefits would be available beyond one
year.
✔ Capital gain
54
An increase in the capital value of an asset between the time of its acquisition by its owner and its
sale by that owner.
✔ Capital lease
A lease that does not usually provide for maintenance services, is not cancellable, and is fully
amortized over its life.
✔ Capital structure
The mix of the liabilities and stockholders' equity side of the balance sheet, especially the ratio of
debt to equity and the mixture of short and long maturities.
✔ Capital
The total amount of money or other resources owned or used to acquire future income or benefits.
✔ Cash cow
A company or division of a company that generates a steady and significant amount of free cash
flow. This type of company pays out most of its earnings per share to stockholders as dividends.
✔ Cash flow
The movement of money into or out of a cash account over a specific period of time.
✔ Cost of equity capital
The required return on the company’s common stock in capital markets. It is also called the equity
holders’ required rate of return because it is what equity holders can expect to obtain in the capital
market. It is a cost from the firm’s perspective.
✔ CEO
An acronym for Chief Executive Officer. The CEO is the principal individual responsible for the
activities of a company.
✔ Collateral
Security which is offered to the lender by the borrower, usually in the form of an asset such as
accounts receivable or inventory.
✔ Conglomerate
A corporation that is made up of many diverse, often unrelated divisions. This form of organization
is thought to reduce risk, but may create problems of coordination.
✔ Closed end mutual fund
A closed-end fund is a publicly traded investment company that raises a fixed amount of capital
through an initial public offering (IPO). Thefund is then structured, listed and traded like a stock
on a stock exchange. Also known as a "closed-end investment" or "closed-end mutual fund."
✔ Call option
An agreement that gives an investor the right (but not the obligation) to buy a stock, bond,
commodity, or other instrument at a specified price within a specific time period.
✔ CDBL
The Central Depository Bangladesh Limited (CDBL) is a company set up the banks, stock
exchanges and other institutions to operate the central securities depository in Bangladesh.
55
✔ Capital Market
The market for long-term funds where securities such as common stock, preferred stock, and bonds
are traded. Both the primary market for new issues and the secondary market for existing securities
are part of the capital market.
✔ Call Money Rate
The interest rate on a type of short-term loan that banks give to brokers who in turn lend the money
to investors to fund margin accounts. For both brokers and investors, this type of loan does not
have a set repayment schedule and must be repaid on demand.
✔ Credit Crunch
(Banking & Finance) a period during which there is a sudden reduction in the availability of credit
from banks and other lenders
✔ Country risk
Uncertainty due to the possibility of major political or economic change in the country where an
investment is located. It is also called political risk.
✔ Credit risk
The risk that an issuer of debt securities or a borrower may default on his or her obligations or that
the payment may not be made on a negotiable instrument.
✔ Crowding-out effect
Phenomenon that occurs when insufficient loanable funds are available for potential borrowers,
such as corporations and individuals, as a result of excessive borrowing by the Treasury, because
limited loanable funds are available to satisfy all borrowers, interest rates rise in response to the
increased demand for funds, which crowds some potential
Borrowers out to the market.
✔ Crown jewels
An anti-takeover tactic in which major assets (the crown jewels) are sold by a firm when faced
with a takeover threat.
✔ Cost Leadership
Strategy used by businesses to create a low cost of operation within their niche. The use of this
strategy is primarily to gain an advantage over competitors by reducing operation costs below that
of others in the same industry.
✔ Covariance
A measure of the degree to which returns on two risky assets move in tandem. A positive
covariance means that asset returns move together. A negative covariance means returns move
inversely.
✔ Creditworthiness
56
An assessment of the likelihood that a borrower will default on his or her debt obligations . It is
based upon factors, such as his/her history of repayment and credit score. Lending institutions also
consider the availability of assets and extent of liabilities to determine the probability of default.
✔ Current assets
Assets of a company that are reasonably expected to be realized in cash, or sold, or consumed
during the normal operating cycle of the business (usually one year).
✔ Current liability
Amount owed for salaries, interest, accounts payable and other debts due within 1 year.
✔ Compounding
The ability of an asset to generate earnings, which are then reinvested in order to generate their
own earnings . In other words, compounding refers to generating earnings from previous earnings.
✔ Capital Structure
In finance, capital structure refers to the way a corporation finances its assets through some
combination of equity, debt, or hybrid securities. A firm's capital structure is then the composition
or ‘structure' of its liabilities.
✔ Debentures
Bonds that promise payments of interest and principal but pledge no specific assets. Holders of a
debenture have first claim on the issuer’s income and unpledged assets. These bonds are known as
unsecured bonds also.
✔ Debit card
A payment mechanism that allows for payment of a purchase by an immediate charge against the
purchaser’s account at the financial institution that sponsors the card.
✔ Debt (liability)
An obligation to pay cash or other goods or to provide services to another.
✔ Debt capacity
The maximum amount of debt (and other fixed-charge financing) that a firm can adequately
service.
✔ Debt instrument
An asset requiring fixed taka payments, such as a government or corporate bond.
✔ Dedication
A portfolio management technique in which the portfolio’s cash flows are used to retire a set of
liabilities over time. Also known as cash flow matching.
✔ Defensive companies
Firms whose future earnings are likely to withstand an economic downturn.
✔ Defensive stock
A stock whose return is not expected to decline as much as that of the overall market during a bear
market.
✔ Deflation
A general fall in the level of prices of goods and services throughout an economy. Antithesis of
inflation.
57
✔ Delta
The relationship between an option price and the underlying futures contract or stock price when
trading securities. In general usage, it is the difference between two empirical data points, e.g. the
delta between 4 and 6 is 2.
✔ Depository institutions
Financial institutions that acquire a bulk of their funds by offering their liabilities to the public in
the form of deposits.
✔ Depreciation
The systematic allocation of the cost of a capital asset over a period of time for financial reporting
purposes, tax purposes or bond.
✔ Direct lease
A lease under which a lessor buys equipment form a manufacturer and leases it to a lessee.
✔ Dividends
The portion of a corporation's earnings which is paid to the stockholders.
✔ Dumping
The selling of merchandise in a foreign country at, or, below cost in order to seize market share.
✔ Duration
A measure of the effective maturity of a bond, defined as the weighted average of the times until
each payment, with weights proportional to the present value of the payment.
✔ Differentiation
Result of efforts to make a product or brand stand out as a provider of unique value to customers
in comparison with its competitors.
✔ Debt Covenants/BANKING/ FINANCIAL
Debt covenants, also called banking covenants or financial covenants, are agreements between a
company and its creditors that the company should operate within certain limits.
✔ Discounting
The process of determining the present value of a payment or a stream of payments that is to be
received in the future. Discounting is the method used to figure out how much these future
payments are worth today.
✔ Dividend Policy
The amount of a dividend that a publicly-traded company decides to pay out to shareholders . The
dividend policy may change from time to time. Factors affecting a dividend policy include the
company's earnings for the relevant period and its expected performance in the near future.
✔ DuPont Analysis
An alternative calculation of the return on equity of an investment . DuPont analysis utilizes the
investment's gross book value instead of its net book value. It is calculated as: (Profits / Sales) *
(Sales / Assets) * (Assets / Equity) = DuPont Analysis return on equity
✔ Direct Placement
58
Selling a new issue not by offering it for sale publicly, but by placing it with one of several
institutional investors. Also known as a private placement.
✔ Cannibalization
An act or strategy in which a company introduces a new product into a market where the same
company's products are already well established. A company engaging in corporate cannibalism
is effectively competing against itself.
✔ DSE
The financial marketplace headquartered in Dhaka, Bangladesh. The Dhaka Stock Exchange was
incorporated in 1954, and formal trading began in 1956.
✔ Diversifiable Risk
Investment risk that can be reduced or eliminated by combining several diverse investments in a
portfolio. Non-market (non-systemic) risks are diversifiable risks.
✔ Non-diversifiable Risk
Risk of an investment asset (bond, real estate, share/stock, etc.) that cannot be reduced or
eliminated by adding that asset to a diversified investment portfolio. Market or systemic risks are
non-diversifiable risks.
✔ E/P ratio
The reciprocal of the P/E ratio.
✔ Earnings per share
A measure of common shares’ claim on earnings, defined as the total earnings available for a
firm’s common stockholders divided by the number of shares of common stock outstanding.
✔ Economic risk
Synonymous to business risk.
✔ Economies of scale
The benefits of size in which the average unit cost falls as volume increases.
✔ Economies of scope
Occurs when one firm produces two outputs than two specialized firms could produce.
✔ Effective interest rate
The actual rate of interest earned (paid) after adjusting the nominal rate for factors such as the
number of compounding periods per year.
✔ Efficient frontier
The set of portfolios on the minimum variance frontier, but with maximum expected return for
each given level of standard deviation.
✔ Efficient market
A market in which asset prices instantaneously reflect new information.
✔ Efficient portfolio
A portfolio with the highest level of expected return for a given level of risk or a portfolio with the
lowest risk for a given level of expected return.
✔ Equilibrium interest rate
59
The rate at which the amount investors wish to borrow is equal to the amount investors wish to
lend.
✔ Exchange rate risk
The risk that an investment's value will change because of currency exchange rates.
✔ Exchange rate
The rate at which domestic currency can be converted into foreign currency
✔ Externalities
Economic actions undertaken by producers and consumers that exert external economic effect on
other producers or consumers which escape the price mechanism. Such nonprice effects are also
called spillovers or neighborhood effects.
✔ Face value
The amount that an issuer agrees to pay at the maturity date. Synonymous to maturity value or par
value.
✔ Financial control
The phase in which financial plans are implemented; control deals with the feedback and
adjustment process required to ensure adherence to plans and modification of unforeseen changes.
✔ Financial disclosures
Presentations of financial information to the investment community.
✔ Financial distress
Severe liquidity problems that cannot be resolved without a sizeable rescaling of the entity's
operations or structure.
✔ Financial engineering
Combining or carving up existing instruments to create new financial products.
✔ Financial institution
A financial enterprise that may perform one of several financial services such as accepting
deposits, brokering securities, managing funds, or underwriting securities.
✔ Financial intermediaries
Institutions that connect borrowers and lenders by accepting funds from lenders and loaning funds
to borrowers. These financial intermediaries include banks, investment companies, insurance
companies, or credit unions. Financial intermediaries issue their own securities to raise funds to
purchase securities of other corporations.
✔ Financial leverage
Extent to which a firm relies on debt. Financial leverage is measured by the ratio of long -term
debt to long-term debt plus equity.
130. Financial market
The system in which communication networks, financial institutions and relevant rules and
regulations are established and activated in order to facilitate smooth flow of funds and
corresponding financial instruments/assets. Alternatively, financial market is a mechanism
designed to facilitate the exchange of financial assets by bringing buyers and sellers of securities
together.
60
✔ Financial planning
The projection of sales, income and assets based on alternative production and marketing
strategies, as well as the determination of sources needed to achieve these projections.
✔ Financial risk
The uncertainty of future incomes due to the company’s financing.
✔ Financial statements
The principal published financial data about a company, primarily the balance sheet and income
statement.
✔ Financial structure
Synonymous to capital structure.
✔ Financial system
A system which deals with the supply and utilization of funds to different economic units in most
efficient manner within the institutional framework on most favorable terms and conditions.
✔ Financial year
Any year connected with finance, such as a company's accounting period or a year for which
budgets are made up.
✔ Financing decision
Concerns with determining the best financing mix or capital structure for the firm. An optimal
financing mix should exist in which market price per share could be maximized.
✔ Five Cs of credit
Five characteristics that are used to form a judgment about a customer's creditworthiness character,
capacity, capital, collateral, and conditions.
✔ Fixed assets: The assets of a permanent nature required for the normal conduct of a
business, and which will not normally be converted into cash during the ensuring fiscal
period. For example, furniture, fixtures, land, and buildings are all fixed assets. However,
accounts receivable and inventory are not.
✔ Foreign exchange exposure: The risk that unexpected changes in exchange rates will
impose a loss of some kind on the exposed party. With transaction exposure, the losses to
reported income; with accounting exposure, the loss is to net worth; and with economic
exposure, the loss is to the market value of the entity.
✔ Free cash flow: The cash flow available to a company after financing all worthwhile
investments; defined as operating income after tax plus depreciation less investment. The
presence of large free cash flow is said to be attractive to a corporate raider.
✔ Free market: A market that is free from government interference, prices rising and falling
in accordance with supply and demand.
✔ Future Contract: A contractual agreement, generally made on the trading floor of a
futures exchange, to buy or sell a particular commodity or financial instrument at a
predetermined price in the future. Futures contracts detail the quality and quantity of the
underlying asset; they are standardized to facilitate trading on a futures exchange. Some
futures contracts may call for physical delivery of the asset, while others are settled in cash.
61
✔ Forward contact: A contract that specifies the price and quantity of an asset to be
delivered in the future. Forward contracts are not standardized and are not traded on
organized exchanges.
✔ Golden parachute: Compensation paid to top level management by a target firm if a
takeover attempts.
✔ Gordon model: A valuation model in which the value of a firm is equal to the present
value of all future dividends expected over the life of the firm.
✔ Greenmail
The purchase of a large number of shares in a company, which are then sold back to the company
at a premium over the market price in return for a promise not to launch a bid for the company. It
is sometimes called ‘graymail’.
✔ Gross domestic product
The market value of goods and services produced over time includes the income of foreign
corporations and foreign residents working in the country, but excluding the income of residents
and corporations overseas.
✔ Gross profit margin
Gross profit divided by sales, which is equal to each sales taka left over after paying for the cost
of goods sold.
✔ Gross working capital
The firm’s investment in current assets (like cash and marketable securities, receivables, and
inventory).
✔ Growth company
A company that consistently has the opportunities and ability to invest in projects that provide
rates of return that exceed the firm’s cost of capital. Earnings of this company are higher than those
of average firms.
✔ Growth funds
Mutual funds containing stock of firms that are expected to grow at a higher than average rate; for
investors who are willing to accept a moderate degree of risk.
✔ Growth industries
Industries with expected earnings growth significantly above the average of all industries.
✔ Hedge
A strategy to offset investment risk. A perfect hedge is one that eliminates all possibility of gain
or loss due to future movements of the hedged variable.
✔ Hedged portfolio
A portfolio consisting of a long position in the stock and a long position in the put option on the
stock, so as to be riskless and produce a return that equals the risk-free interest rate.
✔ Hedging
A strategy that negates, in whole or in part, the risk associated with a decision.
✔ Holding period return
The total return from an investment, including all sources of income, for a given period of time.
62
✔ Homemade dividend
Indicates that an individual investor can undo corporate dividend policy by re-investing excess
dividends or selling of shares of stock to receive a desired cash flow.
✔ Homogeneous expectations
Idea that all individuals have the same beliefs concerning future investments, profits and dividends.
✔ Hostile takeover
A takeover of a company against the wishes of the current management and the board of directors
by an acquiring company or raider.
✔ Human capital
The unique capabilities and expertise of individuals.
✔ Indenture
A complex and lengthy legal agreement, also called the deed of trust, between the corporation
issuing bonds and the bondholders, establishing the terms of the bond issue and naming the trustee.
✔ Independent project
A project whose acceptance or rejection is independent of the acceptance or rejection of other
projects.
✔ Index analysis
An analysis of percentage financial statements where all balance sheet or income statement figures
for a base year equal 100% and subsequent financial statement items are expressed as percentages
of their values in the base year.
✔ IndexStatistical composite that measures changes in the economy or in financial markets,
often expressed in percentage changes from a base year or from the previous month.
Indexes measure the ups and downs of stock, bond, and some commodities markets, in
terms of market prices and weighting of companies of the index.
✔ Indifference curve
The expression in a graph of a utility function, where the horizontal axis measures risk and the
vertical axis measures expected return. The curve connects all portfolios with the same utility.
✔ Indirect investment
An investment that an investor has by holding a claim on a financial intermediary that has made
direct investment.
✔ Industry life cycle
Stages through which firms typically pass as they mature.
✔ Industry
A group of firms whose products are perfect substitutes for each other to a common group of
buyers and which are very poor substitutes for all other products in the economy.
✔ Initial public offering
The mechanism of offering shares of a specific firm for the first time for public subscription.
✔ Inside information
63
Nonpublic knowledge about a corporation possessed by corporate officers, major owners, or other
individuals with privileged access to information about the firm.
✔ Insider trading
The purchase and sale of a firm’s securities by its officers (among others) who are seeking to
benefit from their knowledge of non-public information about the firm’s financial prospects.
✔ Insolvency
The condition of having debts greater than the realizable value of one’s assets.
✔ Internal financing
Funds that come from internally generated cash flow. It equals net income plus depreciation minus
dividend.
✔ Interpolation
Estimation of an unknown number that lies somewhere between two known numbers.
✔ Intrinsic value
The present value of a firm's expected future net cash flows discounted by the required rate of
return.
✔ Investment banks
Financial intermediaries who perform a variety of services, including aiding in the sale of
securities, facilitating mergers and other corporate reorganizations, acting as brokers to both
individual and institutional clients, and trading for their own accounts.
✔ Investment company
A firm that sells shares of the company and uses the proceeds to buy stocks, bonds, or other
financial instruments.
✔ Investment decision
Concerns with the allocation of capital to investment proposals, whose benefits are to be realized
in the future. It also includes the reallocation of capital when an asset no longer economically
justifies the capital committed to it.
✔ Investment grade bond
A bond rated BBB and above by Standard and Poor’s, or Baa and above by Moody's.
✔ Issued stock
Shares of common stock put forth into circulation which may be more in number than shares of
outstanding stock.
✔ Issuer
An entity that puts a financial asset in the marketplace.
✔ IRR
An interest rate giving a net present value of zero when applied to the Expected cash flow of a
project. Its value, compared to the cost of the capital involved, is used to determine the project's
viability.
✔ INVESTMENT
In finance, an investment is a monetary asset purchased with the idea that the asset will provide
income in the future or appreciate and be sold at a higher price.
64
✔ Joint venture
Two or more companies forming a new company.
✔ Jumbo loan
A mortgage loan that is nonconforming because the amount of the loan is greater than the
maximum permissible loan specified by an agency.
✔ Junior bonds
Synonymous to subordinate bonds.
✔ Junior lien
A lien subordinated to a previous lien.
✔ Junior mortgage
An overlying mortgage that is subordinate to a prior mortgage in the order of priority.
✔ Junk bond
A high-risk, high-yield (often unsecured) bond rated below investment grade.
✔ Junk commercial paper
Low-rated commercial paper that are issued by the companies facing financial distress.
✔ Just in time
An approach to inventory management and control in which inventories are acquired and inserted
in production at the exact times they are needed.
✔ Lease
A contractual arrangement whereby the owner of any asset allows the other party to the agreement
to use the full services & benefits of the said asset in exchange of some periodic payments.
✔ Lessee
The receiver of the services of the assets under a lease contract.
✔ Lessor
The owner of assets that are being leased.
✔ Letter of credit
A letter from one bank to anther authorizing the payment of a certain sum to the person named in
the letter on certain specific requirements. It is frequently used to guarantee payment of an
obligation.
✔ Leverage buyout
Takeover of a company by using borrowed funds, usually by a group including some members of
existing management.
✔ Leverage ratio
Measures of the relative value of stockholders, capitalization, and creditors obligations, and of the
firm's ability to pay financing charges. Value of firm's debt to the total value of the firm (debt plus
stockholder capitalization).
✔ Leverage
The use of fixed costs in an attempt to increase (or lever up) profitability.
✔ Liability
An obligatory payment to a supplier of a good, a service or funds.
65
✔ LIBOR
Lending rate among banks in the London market.
✔ Lien
The legal right to keep somebody else’s property as security for a debt.
✔ Line of credit
An arrangement whereby a financial institution (bank or insurance company) commits itself to
lend up to a specified maximum amount of funds during a specified period.
✔ Liquidating dividend
Payment by a firm to its owners from capital rather than from earnings.
✔ Liquidation value
The amount of money that could be realized if an asset or a group of assets (e.g., a firm) is sold
separately from its operating organization.
✔ Liquidation
Termination of the firm as a going concern. Liquidation involves selling the assets of the firm for
salvage value.
✔ MUTUAL FUND
An investment vehicle managed by finance professionals that raise capital by selling shares in a
chosen and balanced set of securities to the public.
✔ MORTGAGE
A debt instrument, secured by the collateral of specified real estate property, that the borrower is
obliged to pay back with a predetermined set of payments. Mortgages are used by individuals and
businesses to make large real estate purchases without paying the entire value of the purchase up
front.
✔ Market Order
An order that an investor makes through a broker or brokerage service to buy or sell an investment
immediately at the best available current price.
✔ Marker Maker
A market maker is a firm that stands ready to buy and sell a particular stock on a regular and
continuous basis at a publicly quoted price.
✔ Margin
In finance, a margin is collateral that the holder of a financial instrument has to deposit to cover
some or all of the credit risk of their counterparty.
✔ Merchant Bank
A merchant bank also provides advisory on corporate matters to the firms in which they invest.
✔ Management buyout
A leverage buyout (LBO) in which pre-buyout management ends up with a substantial equity
position.
✔ Manipulation
Buying or selling a security for the purpose of creating a false or misleading appearance of active
trading or for the purpose of raising or depressing the price to induce purchase or sale by others.
66
✔ Market portfolio
A portfolio consisting of all assets available to investors, with each asset held in proportion to its
market value relative to the total market value of all assets.
✔ Market risk
Risk that the stock market experiences lower prices in response to adverse economic conditions or
pessimistic expectations.
✔ Minimum variance portfolio
The portfolio of risky assets with the lowest possible variance. By definition, this portfolio must
have the lowest possible standard deviation.
✔ Monetary base
The most basic monetary aggregate, also termed high-powered money, defined as currency in
circulation (or coins and banknotes held by the public) plus the total reserves in the banking
system.
✔ Noise Trading
A noise trader also known informally as an idiot trader is described in the literature of financial
research as a stock trader whose decisions to buy, sell, or hold are irrational.
✔ NPV
A measure of discounted cash inflow to present cash outflow to determine whether a prospective
investment will be profitable.
✔ Operating leverage
The existence of fixed operating costs, such that a change in sales will produce a larger change in
operating income (EBIT).
✔ Operational risk
The risk of losses because of inadequate management or controls.
✔ Opportunity cost
The cost associated with opportunities that are foregone by not putting the firm’s resources to their
highest value use.
✔ Overdraft
A method of borrowing from a bank where the borrower is given permission by his/her banker to
draw checks for an agreed sum for a specified period in excess of the amount standing to the credit
of his/her account.
✔ Perpetual preferred stock
Preferred stock that does not have any maturity date.
✔ Perpetuity
An annuity with an infinite life, making continual annual payments.
✔ Pledge
The use of a firm’s assets (A/C receivable) as security, or collateral, to obtain a short-term loan.
✔ Portfolio
Holding of more than one stock, bond, real estate asset or other asset by an investor.
✔ Preferred stock
67
A special form of stock having a fixed periodic dividend that must be paid prior to payment of any
common stock dividends.
✔ Price earnings ratio
The ratio of the price per share to earnings per share; shows the taka amount investors will pay for
Tk.1 of current earnings.
✔ Proxy battle/contest
The attempt by a management group to gain control of management of a firm through the
solicitation of a sufficient number of corporate votes.
✔ Primary Market
The primary market is the part of the capital market that deals with issuing of new securities.
✔ Prospectus
A formal legal document, which is required by and filed with the Securities and Exchange
Commission that provides details about an investment offering for sale to the public.
✔ Real rate of interest
Minimum rate of interest that must be earned to allure the investor to invest the resources.
Alternatively it is the nominal interest rate adjusted for inflation.
✔ Risk free rate
The rate of return one would earn on a virtually riskless investment such as a government bond.
✔ Risk premium
The excess return on the risky asset that is the difference between expected return on risky assets
and the return on risk free assets.
✔ Securitization
Pooling loans into standardized securities backed by those loans, which can then be traded like
any other security.
✔ Security (collateral)
Asset(s) pledged by a borrower to ensure repayment of a loan. If the borrower defaults, the lender
may sell the security to pay off the loan.
✔ Shirking
The tendency to do less work when the return is smaller. Owners may have more incentive to shirk
if they issue equity as opposed to debt, because they retain less ownership interest in the company
and therefore, may receive a smaller return. Thus shirking is considered agency cost of equity.
✔ Stock dividend
Payment of a dividend in the form of stock rather than cash. A stock dividend comes from treasury
stock, increasing the number of shares outstanding and reduces the value of each share.
✔ Syndicated loan
A very large loan made to one borrower by a group of banks headed by one lead bank, which
usually takes only a small percentage of the loan itself, syndicating the rest to other bank and
financial institutions. The loans are usually made on a small margin. The borrower can reserve the
right to know the names of all the members of the syndicate. If the borrower states which banks
are to be included it is known as a club deal.
68
✔ Systematic risk
Risk that is attributable to market movements and cannot be diversified away.
✔ Wealth maximization
Maximization of the value of the shareholders. Value is represented by the market price of the
company’s common stock, which, in turn, is a reflection of the firm’s investment, financing &
dividend decisions.
✔ Weighted average cost of capital
A weighted average of the after-tax required rates of return on the firm’s common stock, preferred
stock, and long-term debt where the weights are the fraction of each source of financing in the
firm’s target capital structure.
Banking Terminologies
1. What is SLR?
Statutory Liquidity Ratio (SLR) is the percentage of liabilities and time deposits that commercial
banks need to keep with them in the form of Cash, Gold or Government approved securities. Right
now SLR is 13%
2. What is CRR Rate?
Cash reserve Ratio (CRR) is the amount of funds that the banks have to keep with central bank. If
the central bank decides to increase the percent of this, the available amount with the banks comes
down. Current CRR is 6%
3.
What is the Bank rate?
Rate at which the central bank lends money to commercial banks without any security.
4.
What are treasury bills?
Treasury Bills are the instruments of short term borrowing by the Central/State govt. They are
promissory notes issued at discount and for a fixed period.
5. What is yield?
In finance, the term yield describes the amount in cash that returns to the owners of a security.
Yield applies to various stated rates of return on stocks (common and preferred, and convertible),
fixed income instruments (bonds, notes, bills, strips, zero coupon), and some other investment type
insurance products (e.g. annuities).
69
6.
What is the mark on the market?
Mark-to-market is an accounting practice by which companies value and report their assets,
especially financial instruments, at market price. Market price basically refers to the price at which
the asset, or a similar asset, is trading at in a public exchange.
7.
What is the difference between Cheque and Demand Draft?
Cheque is written by an individual and withdrawn from the account whereas Demand draft is
issued by a bank where you have to pay before issuing.
8.
What are NBFIs and the difference between NBFIs and banks?
Non-bank financial Institutions (NBFIs) are financial institutions that provide banking services,
but do not hold a banking license. NBFIs do offer all sorts of banking services, such as loans and
credit facilities, retirement planning, money markets, underwriting, and merger activities. These
institutions
9.
What is the difference between Nationalized Bank and Private Bank?
A Nationalized Bank is one that is owned by the government of the country. The government is
responsible for the money deposited into the accounts of these banks. Whereas a private sector
bank is one that is owned by an independent individual or a company that is controlled by a few
individuals. In short, the bank is owned by someone else and they run the bank. The person
owning/running the bank is responsible for the money deposited into the accounts of these banks.
10. What is a Repo Rate?
Repo rate is the rate at which our banks borrow from the central bank. Whenever the banks have
any shortage of funds they can borrow it from the central bank. A reduction in the repo rate will
help banks to get money at a cheaper rate. When the repo rate increases, borrowing from the central
bank becomes more expensive.
11. What is Reverse Repo Rate?
This is the exact opposite of Repo rate. Reverse Repo rate is the rate at which the central bank
borrows money from banks. Central bank uses this tool when it feels there is too much money
floating in the banking system.
12. What do you mean by Time Liability?
70
Time Liabilities are the liabilities a commercial bank liable to pay to the customers on their anytime
demand.
13. What are open market operations?
Buying and selling of government securities and bonds in the open market by the Government to
maintain desired liquidity levels.
14. What is Commercial paper?
Commercial paper is a short term unsecured debt instrument.
15. What are various services provided by a commercial bank?
✔
✔
✔
✔
✔
✔
✔
✔
✔
Lockers
Safe custody of funds
Advancing loans
Fund transfers
Periodic payments
Underwriting of shares
Dealing in foreign exchange
Discounting of loans
Overdraft
16. What are NPAs?
NPA stands for Non-Performing Assets. Bank gives loans and advances to its customers. These
loans and advances are bank's assets. When the customers don't repay back the bank's money they
don't perform. Such assets are known as Non-Performing Assets.
17. What are various functions of the central bank?
✔ Government’s banker and performs banking functions for the central and the state
governments.
✔ Bankers of banks
✔ Maintain liquidity in the economy
✔ Regulator of country's financial system
✔ Regulates and facilitates foreign trade advisors to the Government.
✔ Issue currency notes
18. What is an Option in the derivative market?
71
An Option gives the right to Option Holder to buy or sell a commodity during a certain period of
time or on a specific date.
19. What is the Call option and Put option?
Call option - An option which gives right to the Option Holder to buy a certain stock at specified
time and specified date.
Put option - An option which gives right to the Option Holder to sell a certain stock at specified
time and specified date.
20. What is Monetary Policy?
Policy by which a central authority attempts to control liquidity and interest aimed high growth
rate and price stability.
21. What is Fiscal Policy?
Government revenue generation and spending policies that impact the macro economy.
22. What is SWIFT?
Financial messaging network which exchanges messages between banks and financial institutions
23. What is a Mutual Fund?
A Mutual Fund is a pool of funds where investors invest their money for a common objective.
24. What do you mean by 'Investment Banking '?
A specific division of banking related to the creation of capital for other companies. Investment
banks underwrite new debt and equity securities for all types of corporations. Investment banks
also provide guidance to issuers regarding the issue and placement of stock.
25. What is 'Merchant Bank'?
A bank that deals mostly in (but is not limited to) international finance, long-term loans for
companies and underwriting. Merchant banks do not provide regular banking services to the
general public.
26. What is the difference between investment banks and merchant banks?
72
Merchant banks and investment banks, in their purest forms, are different kinds of financial
institutions that perform different services. In practice, the fine lines that separate the functions of
merchant banks and investment banks tend to blur. Traditional merchant banks often expand into
the field of securities underwriting, while many investment banks participate in trade financing
activities. In theory, investment banks and merchant banks perform different functions.
27. What is a Discount Window?
A method by which a central bank supplies a banking system with short-term funds, either by
purchasing Treasury bills or by making secured loans.
28. What is discounting?
Process of finding the present value of a future cash flow or a series of cash flows; the reverse of
compounding.
29. What is Electronic funds transfer (EFT)?
The electronic movements of information between two depository institutions resulting in a value
(money) transfer.
73
Marketing Job Interview Questions
Q 1: What is marketing? What are its core concepts?
Marketing can be referred to as a form of communication with your customers, with the help of
marketing tools. It means building profitable relationships with the customers. Core concepts of
marketing are- Need, want, demand, customer value, satisfaction, competition, exchange and
transaction, segmentation, targeting, positioning, supply chain.
Q 2: Define Marketing Environment.
Micro Environment: The company, supplier, marketing intermediaries (Resellers, physical
distribution firms, marketing service agencies, financial intermediaries), Competitors, and
customers.
Macro environment: Demography, Geography, economical, political, cultural.
Q 3: What are the major factors influencing buying behavior?
Personal factors can be related to the persons age, sex, race, religion, occupation, educational
qualifications, level of authority etc.....
Q 4: What are the stages of buying decision process?
Stages of buying decision process: Problem Recognition, Information search, Evaluation of
Alternatives, Purchase decision, Purchase, Post-Purchase Evaluation.
Q 5: Define Business market and Consumer market.
Business market in simple words is business to business market where in the products or services
of a particular organization are sold to or purchased by other organization or business.
Consumer market means who purchase the products for personal consumption.
Q 6: What are major types of buying situations?
Straight rebuy: Buyer reorder something without any modification.
Modified rebuy: Buyer wants to modify product specification, price, terms or suppliers.
New Task: Buyer purchases the product for the first time.
Q 7: Who are the participants in the business buying process?
⮚ Buying center: All individuals play a role in the purchase decision making process.
74
⮚ Users: who will actually use the product?
⮚ Influencers: affect the buying decisions.
⮚ Buyers: make the actual purchase.
⮚ Deciders: have formal and informal power to select the final suppliers.
⮚ Gatekeepers: Control the flow of information to others.
Q 8: What are the qualities of useful market segments?
A market segment must have the following qualities- Measurable, accessible, substantial,
differentiable and actionable.
Q 9: What is PLC? What are the stages of PLC?
Product life cycle refers to the presence of the product in the marketplace with respect to the ups
and down in its business costs and sales activities. Stages are: Introduction, growth, maturity and
decline.
Q 10: What is Oligopoly? Give some examples of oligopolistic markets.
The market consists of a few sellers who are highly sensitive to each other’s pricing and marketing
strategies. The product can be uniformed or no uniformed, e.g. Telecommunication.
Q 11: What is monopoly? Explain with an example.
The market consists of many buyers and sellers who trade over a range of prices rather than a
single market price e.g. Furniture, Wearing etc.
Q 12: What is pure competition? Explain with an example.
The market consists of many buyers and sellers trading in a uniform commodity. e.g. wheat,
financial securities etc.
Q 13: How do sellers respond to price changes of their competitors?
Competitor’s cost, price and market offerings.
Q 14: How do buyers respond to price changes?
Consumer will base their judgments of a product’s value on the prices that competitors charge for
similar products.
Q 15: What is direct marketing? Give some examples.
Direct communications with carefully targeted individual consumers to both an immediate
response and cultivate lasting customer relationships. e.g. Call any service holder to takea credit
75
card
over
the
cell
Q 16: What is the difference between a marketing mix and a promotional mix?
phone.
Marketing mix: 4P (Product, price, place, promotion)
Promotion mix: Advertising, Sales promotion, personal selling, public relation, direct marketing.
Q 17: What is sales promotion?
Short-term incentives to encourage the purchase or sale of a product or service. e.g.10% discount,
Pantene offers buy one get one.
Q 18: What is public relation?
Building good relations with the company’s various publics by obtaining favorable publicity,
building up good corporate image, and handling or heading off unfavorable rumors, stori,es and
events.
Glossary –Marketing
Advertising: - Any paid form of nonpersonal presentation and promotion of ideas, goods, or
services by an identified sponsor.
Administered VMS: A vertical marketing system (VMS) that coordinates successive stages of
production and distribution, not through common ownership or contractual ties, but through the
size and power of one of the parties.
Allowance: Promotional money paid by manufacturers to retailers in return for an agreement to
feature the manufacturer’s product in some way.
Baby boomers: The 78 million people born during the baby boom following World War II and
lasting until 1964.
Basing point pricing: A geographical pricing strategy in which the seller designates some city as
a basing point and charges all customers the freight cost from that city to the customer.
Benchmarking: The process of comparing the company’s products and processes to those of
competitors, to identify “best practices” and find ways to improve their quality and performance.
Brand equity: The evaluation of customers of a particular brand.
Brand Personality: The specific mix of human traits that may be attributed to a particular brand.
Cannibalization: The situation in which one product sold by a company takes a portion of its
sales from other company products.
76
Catalog marketing: Direct marketing through print, vedio or digital catalogs that are mailed to
select customers, made available in stores or presented online.
Category Killer: Giant specialty store that carries a very deep assortment of a particular line and
is staffed by knowledgeable employees.
Chain store: Two or more outlets that are commonly owned and controlled.
Co-branding: The practice of using the established brand names of two different companies of
the same product.
Concentrated marketing: A firm goes after a large share of one or a few segments or niches.
Consumer generated marketing: Marketing messages, ads and other brand exchanges created
by consumers themselves-both invited and uninvited.
Consumer oriented marketing: The philosophy of sustainable marketing that holds that the
company should view and organize its marketing activities from the consumer’s point of view.
Consumer to business (C2B) online marketing: Consumers search sellers, learn about their
offers and initiate purchases, sometimes even driving transaction terms.
Consumer-to-consumer online marketing: Online exchanges of goods and information between
final consumers.
Consumerism: An organized movement of citizens and government agencies to Improve the
rights and power of buyers in relation to sellers.
Contract manufacturing: A joint venture in which a company contracts with manufacturers in a
foreign market to produce the product and provide its service.
Contractual VMS: Independent firms at different levels of production and distribution join
together through contracts to obtain more sales impact than they could achieve alone.
Convenience store: Small store, located near residential area.
Countertrade: International trade involving the direct or indirect exchange of goods for other
goods instead of cash.
Customer Equity: The total combined customer lifetime values of the entire companies customer.
Customer perceived value: The difference between all the benefits and all the costs of a
marketing offer.
Customization: The Company is able to produce individually differentiated goods whether
ordered in person, on the phone, or online.
77
Customerization: The combination of operational customization and marketing customization. A
customaries company is able to dialog with individual customers and respond by customizing its
products, services and message on a one-to-one basis.
Department store: Carries a wide variety of product lines-each line is operated as a separate
department.
Direct marketing: - Direct connections with carefully targeted individual consumers to both
obtain an immediate response and cultivate lasting customer relationships.
Derived demand: Business demand that ultimately comes from the consumer goods.
Discount store: A retail operation that sells standard merchandise at lower prices and selling at
higher volume.
Environmentalism: An organized movement of concerned citizens and government agencies to
protect and improve the current and future living environment.
Franchise: A contractual association between a manufacturer, wholesaler, or service organization
(a franchiser) and independent business people (franchisees) who buy the right to own and operate
one or more units in the franchise system.
Gatekeepers: People in the organizations buying center who control the information to others.
Innovative marketing: Marketing principle that requires real product and marketing
improvements.
Interactive marketing: Training service employees in the fine art of interacting with customers
to satisfy their needs.
Licensing:- A method of entering a foreign market in which the company enters into an agreement
with a licensee in the foreign market, offering the right to use a manufacturing process, trademark,
patent, trade secret, or other item of value for a fee or royalty.
Market potential: The upper limit of market demand.
Marketing Return on investment (ROI): Dividing net marketing contribution by marketing
expenses.
Marketing Return on sales (ROS): Dividing net marketing contribution by net sales.
Mission statement: Organizations’ purpose-what it wants to accomplish in the larger
environment.
Multichannel distribution system: A single firm sets up two or more distribution channels.
78
Market –skimming pricing: - Setting a price for a new product to skim maximum revenues layer
by layer from the segments willing to pay the high price; the company makes fewer but more
profitable sales.
Market-penetration pricing: - Setting a low price for a new product in order to attract a large
number of buyers and a large market share.
Product Line: A group of products that are closely related because they function in a similar
manner, are sold to the same customer group, are marketed through the same type of outlets or fall
within given price ranges.
Product mix: The set of all product lines and items that a particular seller offers for sale.
Prospecting: Companies identify qualified potential customers.
Pull strategy: Spending a lot on advertising and consumer promotion to induce final consumers
to buy the product.
Push strategy: A promotion strategy that calls for using the sales force and trade promotion to
push the product through channels.
Personal selling: - Personal selling by the firm’s sales force for the purpose of making sales and
building customer relationships.
Public relations: - Building good relations with the company’s various public by obtaining
favorable publicity, building up a good corporate image, and handling or heading off unfavorable
rumors, stories, and events.
Sales promotion: - short-term incentives to encourage the purchase or sale of a product or service.
Social marketing: Programs designed to influence individual behavior to improve their wellbeing and that of society.
Societal Marketing: A company’s marketing decisions should be concerned with consumer’s
want, the companies requirements’ consumer’s long run interest and society’s long run interest.
Super market: A large, low-cost, low-margin, high-volume self service store that carries a wide
variety of grocery and household products.
79
Management Terminologies
1
What is management?
⮚ A set of activities (including planning and decision making, organizing, leading, and
controlling) directed at an organization’s resources such as human, financial, physical and
information with the aim of achieving organizational goals in an efficient and effective
manner.
2
Identify the management process?
⮚ Management involves four basic activities – planning, decision making, organizing,
leading, and controlling. Most managers engage in more than one activity at a time and
move back and forth between the activities in unpredictable ways.
3
What is the task of a first line manager?
⮚ First line managers supervise and coordinate the activities of operating employees.
Common titles for the first-line managers are supervisor, coordinator and office manager.
Positions like these are often the first held by employees who enter management from the
ranks of operating personnel.
4
Identify the basic managerial roles that managers play.
⮚ Basic managerial roles are interpersonal roles (figurehead, leader, liaison), informational
roles (monitor, disseminator and spokespersons) and decisional roles (entrepreneur,
disturbance handler, resource allocator and negotiator).
5
Discuss the art of management.
⮚ The effective practice of management requires a synthesis of science and art, that is, a blend
of rational objectivity and intuitive insight. Managers attain their skills and positions
through the combination of education and experience.
6
⮚
⮚
7
Differentiate between Efficient and Effective.
Efficient: Using resources wisely and in a cost-effective way or in a low cost.
Effective: Making the right decisions and successfully implementing them.
What is Environmental Turbulence?
⮚ Environmental turbulence refers to the amount of change and complexity in the
environment of a company.
80
8
9
10
11
12
13
What is the code of ethics?
⮚ Code of ethics means a formal, written statement of the values and ethical standards
that guide a firm’s action.
What is the concept of whistle-blower?
⮚ A person who exposes any kind of information or activity that is deemed illegal,
dishonest, or not correct within an organization that is either private or public.
What is bounded rationality?
⮚ Bounded rationality is the idea that when individuals make decisions, their rationality
is limited by the information they have, the cognitive limitations of their minds, and
the time available to make the decision.
What is escalation of commitment?
⮚ A decision maker’s staying with a decision even when it appears to be wrong. For
example: when people buy stock in a company, they sometimes refuse to sell it even
after repeated drops in price.
The concept of risk propensity
⮚ Risk propensity means the extent to which a decision maker is willing to gamble when
making a decision.
What is groupthink?
⮚ Groupthink means the practice of thinking or making decisions as a group, resulting
typically in unchallenged, poor-quality decision-making. "There’s always a danger of
groupthink when two leaders are so alike"
14 Job enlargement vs. Job enrichment vs. Job rotation
⮚ Job enlargement: an alternative to job specialization that involves giving the employee
more tasks to perform.
⮚ Job enrichment: It involves increasing both the number of tasks the worker does and
the control the worker has over the job.
⮚ Job rotation: It involves systematically moving employees from one job to another.
15 What is span of control?
⮚ Span of control refers to the number of subordinates a supervisor has.
16 What is the scalar principle?
⮚ Scalar principle (chain of command) refers to authority flows down the chain of
command from the top level to the first or lowest level in the organization.
17 What is a Charismatic leader?
⮚ Charisma in leadership occurs when a leader's authority is based upon what his
followers believe are extraordinary personal traits and qualities of the leader rather
than any formal authority sanctioned by law or office.
18 Transformational vs. Transactional Leader
81
⮚ Transactional leadership reacts to problems as they arise, whereas transformational
leadership is more likely to address issues before they become problematic.
⮚ Transactional leaders work within existing organizational culture, while
transformational leaders emphasize new ideas and thereby "transform"
organizational culture.
⮚ Transactional leaders reward and punish in traditional ways according to
organizational standards; transformational leaders attempt to achieve positive
results from employees by keeping them invested in projects, leading to an internal,
high-order reward system.
⮚ Transactional leaders appeal to the self-interest of employees who seek out rewards
for themselves, in contrast to transformational leaders, who appeal to group
interests and notions of organizational success.
19 What is impression Management?
⮚ A process whereby someone tries to influence the observations and opinions of
others about something. In a typical impression management process within a
business, a manager might attempt to regulate and control information in their
interactions with staff or the general public to give them the most favorable
impression about their company and its objectives.
20 What is communication malfunction?
⮚ This is when plans are not implemented correctly. It can lead to a loss of sales and
customers and eventually the business if not rectified.
21 Personnel Management Vs Human Resource Management
⮚ Personnel management is a predominantly administrative record-keeping function
that aims to establish and maintain equitable terms and conditions of employment.
⮚ Human resource management integrates the traditional personnel management
functions to corporate goals and strategies, and performs additional people-centered
organizational developmental activities.
22 Job description vs. job specification
✔ Job Description is a statement which explains the essential needs of a job. On the
other hand,
✔ Job Specification is a statement which states the least qualifications, required in
the job holder for the performance of a particular job.
23 Recruitment vs. Selection
Basis
Recruitment
Selection
Meaning
It is an activity of establishing contact It is a process of picking up more
between employers and applicants.
competent and suitable employees.
82
Objective
It encourages large
Candidates for a job.
number
of It attempts at rejecting unsuitable
candidates.
Process
It is a simple process.
Hurdles
The candidates have not to cross over Many hurdles have to be crossed.
many hurdles.
Approach
It is a positive approach.
It is a negative approach.
Sequence
It proceeds selection.
It follows recruitment.
Economy
It is an economical method.
It is an expensive method.
Time
Consuming
Less time is required.
More time is required.
It is a complicated process.
24 On the job training vs. Off the job training
⮚ On the job training involves imparting training in the real work environment i.e. it
believes in learning by doing; while
⮚ Off the job training involves imparting training outside the real work environment i.e.
the principle of learning by acquiring knowledge is adopted.
25 What is E-HRM?
⮚ E-HRM is the (planning, implementation and) application of information
technology for both networking and supporting at least two individual or collective
actors in their shared performing of HR activities.
26 Concept of Green HRM
⮚ Green HRM is the emerging topic in current scenario. Research is done on this
topic but researchers argue that employees should be inspired, empowered, and
environmentally aware of greening in order to carry out green initiatives.
27 Training vs. Development
Training
Short-term focus/Task Oriented
Group based (more often than not)
Focuses on the “today” needs
Compliance area strength
Development
Long-term focus/Skills oriented
Individually based
Leads to the “tomorrow” results
Opportunities to develop strategic approach
28 360-degree appraisal or feedback.
⮚ A 360 degree appraisal is a type of employee performance appraisal in which
subordinates, co-workers, and managers all anonymously rate the employee. This
information is then incorporated into that person's performance review.
83
29 Management by Objective (MBO)
⮚ Management By Objectives (MBO), also known as Management By Results
(MBR), is a process of defining objectives within an organization so that
management and employees agree to the objectives and understand what they
need to do in the organization in order to achieve them.
30 What is Action Learning and Adult learning?
⮚ Action learning is an approach to solving real problems that involves taking action
and reflecting upon the results.
⮚ Adult learning is a vital component of the lifelong-learning continuum, covering
the entire range of formal, non-formal and informal learning activities, general and
vocational, undertaken by adults after leaving initial education and training.
31 What is globalization and glass ceiling?
⮚ Glass ceiling: An unacknowledged barrier to advancement in a profession, especially
affecting women and members of minorities. Example: "The first female to break through
the glass ceiling in Engineering"
⮚ Globalization: The process by which businesses or other organizations develop
international influence or start operating on an international scale.
32 What is japanization?
⮚ Japanization is the process in which Japanese culture dominates, assimilates, or
influences other cultures, in general. According to The American Heritage
Dictionary of the English Language, the word Japanize means to make or become
Japanese in form, idiom, style, or character.
33 What is knowledge management?
⮚ Efficient handling of information and resources within a commercial organization.
34 What is psychological contract?
⮚ The psychological contract refers to the unwritten set of expectations of the
employment relationship as distinct from the formal, codified employment
contract. Taken together, the psychological contract and the employment
contract define the employer-employee relationship.
35 What is talent management?
⮚ Talent management refers to the anticipation of required human capital for an
organization and the planning to meet those needs.
36 Identify the basic building blocks of information technology.
⮚ Information technology systems contain five basic components- an input medium,
a processor, an output medium, a storage device, a control systems.
84
37 Identify the basic factors that determine an organization’s information technology
needs.
⮚ An organization’s information technology needs are determined by several factors
most notably, user groups and systems requirements.
38 Discuss the basic types of information systems used by organizations.
⮚ There are several basic levels of information systems- transaction processing
systems, systems for various basic MIS, decision support systems, executive
support systems, artificial intelligence systems, expert systems etc.
39 Define DSS.
⮚ DSS is a decision support system which is an interactive system that locates and
presents information needed to support the decision-making process.
40 What do you mean by transaction-processing systems (TPS)?
⮚ Transaction-processing systems are applications of information processing for
basic day to day business transactions. Example - customer order-taking by online
retailers.
41 What do you mean by scientific management?
⮚ Scientific management is a management theory that analyzes work flows to
improve economic efficiency, especially labor productivity. This theory was
developed by F.W.Taylor
42 What are the elements of the task environment?
⮚ Competitors, suppliers, strategic partners, and regulators.
43 What are the competitive forces of Porter’s Five Forces Model?
⮚ 1. the threat of new entrants (2) competitive rivalry (3) the threat of substitute
products (4) the bargaining power of buyers (5) and the bargaining power of
suppliers.
44 What are the four approaches of organizational effectiveness?
⮚ 1. system resource approach (2) internal process approach (3) goal approach (4)
strategic constituencies approach.
45 What is managerial ethics?
⮚ Standards of behavior that guide individual managers in their work.
46 What are the three basic areas of concern for managerial ethics?
⮚ 1. employees’ attitude to the firm (2) firms’ attitude to the employees (3) firm’s
and employees’ attitude to other economic agents.
47 What is social responsibility?
⮚ Social responsibility is a set of obligations an organization has to protect and
enhance the society in which it functions.
48 What are the four approaches to social responsibility?
(1) obstructionist stance (2) defensive stance (3) accommodation stance (4) proactive stance.
49 What are the levels of international business activity?
85
(a) domestic business (b) international business (c) multinational business and (d) global
business.
50 What is licensing?
Licensing is an arrangement whereby one company allows another company to use its brand
name, trademark, technology, patent, copyright or other assets in exchange for a royalty based
on sales.
51 What is a strategic alliance?
Strategic alliance is a cooperative arrangement between two or more firms for mutual gain.
52 What are the 5 dimensions of individual differences across cultures identified by
Hofstede?
(1) social orientation (2) power orientation (3) uncertainty orientation (4) goal orientation (5)
time orientation
53 What is multiculturalism?
The broad issues are associated with differences in values, beliefs, behaviors, customs and
attitudes held by people in different cultures.
54 What is diversity?
Diversity exists in a group or organization when its members differ from one another along
One or more important dimensions such as age, gender or ethnicity.
55 What is the mission?
Mission is a statement of an organizational fundamental purpose.
56 What are Strategic plans?
Strategic plan is a general plan outlining decisions of resource allocation, priorities, and action
steps necessary to reach strategic goals.
57 What is a tactical plan?
A tactical plan is aimed at achieving tactical goals and developed to implement parts of
strategic plan.
58 What is the Operational plan?
An Operational plan focuses on carrying out tactical plans to achieve operational goals.
59 What is Program?
A program is a single use plan for a large set of activities.
60 What is a Project?
A project is similar to a program but is generally of less use scope and complexity. A project
may be part of a broader program.
61 What is policy?
A standing plan that specifies the Organization's general response to a designated problem or
situations.
62 What is Group?
Group consists of two or more people who interact regularly to accomplish or no supervision
to carry out work related tasks, functions and activities.
63 What is conflict?
86
Conflict is a disagreement among two or more individuals or groups. Conflicts may arises in
both interpersonal and intergroup relationships.
64 What is the role of ambiguity?
Role of ambiguity arises when the sent role is unclear and the individual does not know what
is expected of him or her.
65 What is Contingency planning?
The determination of an alternative course of action has been taken if an intended plan is
unexpectedly disrupted or rendered inappropriate.
66 What is Optimizing?
Optimizing involves balancing possible conflicts among goals.
67 What is Strategy?
Strategy is a comprehensive plan for accomplishing an organization's goals.
68 What do you mean by Strategic Management?
A comprehensive and ongoing management process aimed at formulating and implementing
effective strategies, a way of approaching business opportunities and challenges.
69 Define Effective Strategy.
Effective Strategy is a strategy that promotes a superior alignment between the organization
and it's environment and the achievement of strategic goals.
70 What do you mean by "Scope"?
Scope means, when applied to strategy. It specifies the range of markets in which an
organization will compete.
71 What do you mean by "Strategy Formulation"?
Strategy Formulation is the set of processes involved in creating or determining the strategies
of the organization. It focuses on the content of strategies.
72 What do you mean by SWOT?
SWOT is an acronym that stands for Strengths, Weaknesses, Opportunities, and Threats.
73 What is "Competitive Disadvantage"?
It is a situation in which an organization is not implementing valuable strategies that are being
implemented by competing organizations.
74 What is "Focus Strategy"?
Focus Strategy is a kind of strategy in which an organization concentrates on a specific
regional market, product line or group of buyers.
75 What do you mean by BCG matrix?
BCG metrics is a method of evaluating businesses relative to the growth rate of their market
and the organization's share of the market.
76 What is "Delphi Group"?
Delphi Group is a form of group decision making in which a group is used to achieve a
consensus of expert opinion.
77 Define "Established Market"
87
Established market is a market in which several large firm compete according to relatively
well defined criteria.
78 What do you mean by "Niche"?
Niche is a segment of a market not currently being exploited.
79 Discuss about "Franchising Agreement"
Franchising agreement is a contract between an entrepreneur (the franchisee) and a parent
company (the franchisor); The entrepreneur pays the parent company for the use of its
trademarks, products, and business plans.
80 What do you mean by "Coalition "?
Coalition is an informal alliance of individuals or groups formed to achieve a common goal.
81 What is "Merger "?
Merger means the purchase of one firm by another firm of approximately the same size.
82 What is control?
The regulation of organizational activities in such a way as to facilitate goal attainment.
83 What is budgetary control?
A system of management control in which actual income and spending are compared with
planned income and spending.
84 What is bureaucratic control?
A form of organizational control characterized by formal and mechanistic structural
arrangements.
85 What is decentralized control?
An approach to organizational control based on informal and organic structural arrangements
86 What is strategic control?
It aims at ensuring that the organization is maintaining an effective alignment with its
environment and moving toward achieving its strategic goals.
87 What is operations management?
The total set of managerial activities used by an organization to transform resource into
product service or both.
88 What is manufacturing?
A form of business that combines and transforms resources inputs into outputs
89 What is product service mx?
A natural starting point in designing operations system is determining the product service
mix.
90 What is layout?
The physical configuration of facilities the arrangements of equipment within facilities or
both.
91 What do you mean by just in time (JIT) method?
An inventory system that has necessary materials arriving as soon as they are need so that the
production process is not interrupted.
92 What do you mean by quality?
88
A distinctive attribute or characteristic possessed by someone or something.
93 What is total quality management?
A system of management based on the principle that every staff member must be committed
to maintain high standards of work in every aspect of a company's operations.
94. What is the liaison role?
It is a device for coordination technique. A manager in a liaison role coordinates
interdependent units by acting as a common point of contact.
95. Discuss the basic elements of organization.
Organizations are made up of a series of elements: Designing jobs, grouping jobs,
establishing reporting relationships, distributing authority, coordinating activities,
differentiating between positions.
96. What is job specialization?
Job specialization is the degree to which the overall task of the organization is broken down
and divided into smaller component parts.
97. What is organization design?
Organization design is the overall set of structural elements and the relationships among those
elements used to manage he total organization.
98. What is matrix design?
The matrix design, common approach to organization design, is based on two overlapping
bases of departmentalization. The foundation of a matrix is a set of functional department.
99. What is hybrid design?
Hybrid design is a design that represents a hybrid of two or more of the commons forms of the
organization designs. For example, an organization may have five related divisions and one
unrelated divisions, making its design a cross between an M-form and an H-form.
100. What is conglomerate (H-Form) design?
The conglomerate design is used by an organization made up of set of unrelated business.
101. What is Divisional (M-Form) Design?
The divisional is based on multiple businesses in related areas operating within a large
organizational framework. This design results from a strategy of related diversifications.
89
102 Define motivation.
Motivation is the set of forces that cause people to behave in a certain ways.
103. Which factor determines individual performance?
Motivation, ability and work environment determines performance.
104.What are the main themes of Maslow's Hierarchy of needs theory?
Maslow's Hierarchy of needs theory suggests that the people satisfy five groups of needs in
order, Physiological, security, belongingness, esteem and self-actualization.
105. What is a reward system?
The formal and informal mechanism, by which employee performance is defined, evaluated and
rewarded.
106. What is leadership?
A set of characteristics attributed to individuals who motivate behavior toward the achievement
and help define organizational culture.
107. What are the types of leadership?
Charismatic leadership, Transformational leadership, Strategic leadership, Cross-culture
leadership, Ethical leadership.
108. What is Total Quality Management (TQM)?
TQM is an approach that highlights collective responsibility for product and service quality and
encouraging people to work together to improve quality.
The aim of TQM is to achieve zero defects.
Deming and Juran helped Japanese companies in TQM efforts.
Japanese companies established the Deming prize, an annual award for excellence in quality
control.
109. What are the problems of management in Bangladesh?
1 Lack of competitive business environment.
2 Lack of professional managers.
3 Lack of job security.
4 Lack of efficient managers.
5 Lack of training facilities.
6 Communication and information problem.
7 Poor labor-management relations
8 Political instability.
9 Lack of proper incentive.
110. What is Delegation of Authority?
Delegation is the process by which a manager assigns a portion of his workload to others. It is the
assignment of authority and responsibility for the completion of specific tasks to subordinates. The
chief executive cannot perform all the tasks of the organization himself, so he must share his duties
90
with his immediate subordinates, who in turn delegate to their subordinates and the process
continues until all activities are assigned to persons who are made responsible for performing them
111. What are the merits of Delegation?
3. Delegation gives executives more time for strategic planning and policymaking.
✔ Delegation is a motivational factor. Employees become more satisfied and committed
when they are given an opportunity to tackle significant problems.
✔ Delegation can expedite innovation.
✔ Delegation can be a training ground for executive ability
112. What are the problems in Delegation?
1. A manager may be reluctant to delegate.
2. Fear of being called lazy. Delegation may reveal managerial shortcomings.
3. Low self-confidence. Some managers may worry that subordinates will do too well and
pose a threat to their own advancement.
4. They have a tendency to want to do things personally.
5. Managers have a desire to dominate.
6. Managers may not trust the subordinate to do the job well. They hold that subordinates are
incapable of using authority properly.
7. Poor example set by bosses who do not delegate.
8. Some subordinates are reluctant to accept the delegation because failure may result in a
reprimand.
9. They may feel that there is no reward for accepting additional responsibility.
10. They may prefer to avoid risk and want their boss to take all responsibility.
113. What is Human Capital?
Human
capital is
the
stock
of knowledge, habits, social and personality attributes,
including creativity, embodied in the ability to perform labor so as to produce value.
Alternatively, Human capital is a collection of resources—all the knowledge, talents, skills,
abilities, experience, intelligence, training, judgment, and wisdom possessed individually and
collectively by individuals in a population. These resources are the total capacity of the people that
represents a form of wealth that can be directed to accomplish the goals of the nation or state or a
portion thereof.
114. What are ten C’s of an Amazing Leader?
Leadership qualities are highly sought after; by a business owner and an employer. Leaders can
make a profound difference in their industry, and can be fundamental in positive change. A recent
study has revealed 10 common traits found in great leaders.
1. Competitive spirit. Competition occurs naturally in all environments, and can be seen
when two individuals complete for the same goal. In business, competition can stimulate a
higher quality of service and product development.
91
2. Clutter avoidance. The depth of paperwork or piles on a desk is not necessarily the clutter,
but rather the ability to focus on what is important and not become bogged down with the
busywork.
3. Cohesiveness. When a group of individuals possess bonds linking them to one another and
also to the group as a whole, this is considered a state of cohesion. Leaders can excel when
they are able to sell ideas to their partners. More importantly, a leader can identify which
individual needs convincing and how to approach them.
4. Candidness. The ability to deliver a brutally honest need for improvement while showing
great respect and encouragement. One of the rarest of skills. One approach could be to
reverse roles in a conversation, and encourage the poor performer to recognize the issue on
their own.
5. Crystal-clear vision. It is not easy to decide where you want to be, and even more difficult
to finalize how you are going to get there. Great leaders have a perfect understanding of
what they want, what they know the business will become, and they wholly immerse
themselves making that vision a reality.
6. Curiosity. One of the few emotions that can be linked to effective leaders. An inquisitive
nature tends to represent a thirst for knowledge.
7. Contagious enthusiasm. An intense enjoyment and interest allows a leader to create
themes that inspire. Taking the negative energy of difficult situations and directing it to
positive energy.
8. Crazy. They don’t follow but innovate and create. Once a decision is made they can be
indifferent to the feelings or opinions surrounding it, and only heed the results. All while
preparing to make the next decision. Often their ideas and tireless belief in the goals will
make others simply shake their heads, but even the skeptics will eventually rally around
the leader and support the path.
9. Change agent. The skill to change someone’s behaviors and beliefs, while they raise the
bar on their own performance. It is one this to be the change catalyst, but another to impart
the desire to change on someone else. Not an easy skill to master.
10. Communication. The ability to convey a message and influence behavior, across various
audiences.
115. What are ten C’s of the HRM Model?
The field of HRM has been evolving ever since it came into existence in1970s. HRM
experts have proposed many models to interpret, explain and also advocate HR policies
and practices in tune with specific ideology and philosophy. Among this new genre of
models, Ten C model of HRM is regarded as all-encompassing and a pragmatic model.
Alan Price is the architect of this model who presented it in his book titled Human Resource
Management in a Business Context, published in 1997. There are ten essential principlesthe Ten Cs-in this model. These are:
92
1. Comprehensiveness. The HRM strategy of an organization must include all the aspects
of people management, typically starting from recruitment to post separation programs.
2. Credibility. The HR practices must build trust between staff and top management and
encourage employees’ belief in HRM strategies.
3. Communication. The objectives of organization and that of HRM must be understood
and accepted by all employees. The operating culture in an organization must encourage
openness and be free from all barriers.
4. Cost effectiveness. The reward and promotion system must be fair.
5. Creativity. The competitive advantage of the company must stem from its unique HR
strategies.
6. Coherence. HRM activities and initiatives must form a meaningful whole.
7. Competence. HRM strategy will be crafted in such a way that organization becomes
competent to achieve its objectives with the support of individual competencies.
8. Control. HRM policies and practices must ensure that performance of HR is consistent
with business objectives.
9. Change. The basic premise of HRM strategy must be that continuous improvement and
development is essential for survival.
10. Commitment. The last C Stresses upon that employee are to be motivated to achieve
organizational goals.
Alan Price 10 C model is measurable at the organizational level and success of the model
lies in the tension and balance between the ten Cs.
What are ten C's of Employee Engagement?
1
Engagement is the state in which INDIVIDUALS are emotionally and intellectually
committed to the organization or group. I have witnessed that we tend to leverage outside
consultant when it comes to helping employee realize their potential, however, fail to
leverage fully the existing available leadership to drive employee engagement and
build employees sense of belonging and organization pride.
How can leaders engage heads, hearts, and hands of their people? Here are the 10 C's that
I came across which will not only help in enhancing employee engagement, however,
enable employees to consistently speak positively about the organization to coworkers,
potential employees and customers while engaging in behaviors that contribute to overall
success of business.
Connect: A direct reflection of how employees feel about their relationship with the
immediate boss. Early in my professional life I learned a lesson that when you are people
leaders, your job is to focus on developing your staff and harness their potential. If they
grow, you shall automatically grow. However, whenever in large gathering I ask a
question, Is your managers more interested in his career or yours. The answers is "HIS
OWN". Managers / leaders must learn to inculcate the sense that employee growth and
capability building is at the forefront of their mindset which will enable not only employee
growth, however, their own as well.
93
2
Career: Leaders should provide challenging and meaningful work with opportunities for
career advancement. Employee do look forward to sense of career direction both from short
and long term perspective.
3 Clarity: Leaders must communicate a clear vision. Success in life and organizations is, to
a great extent, determined by how clear individuals are about their goals and what they
really want to achieve.
4 Convey: Leaders clarify their expectations about employees and provide feedback on their
functioning in the organization. It is imperative that leaders / managers sharpen the art of
giving developmental feedback.
5 Congratulate: Exceptional leaders give recognition, and they do so a lot; they not only
coach and convey, however, tend to catch people doing right things and appreciate them.
6 Contribute: People want to know that their input matters and that they are contributing to
the organization's success in a meaningful way.
7 Control: Employees value control over the flow and pace of their jobs and leaders can
create opportunities for employees to exercise this control.
8 Collaborate: Studies show that, when employees work in teams and have the trust and
cooperation of their team members, they outperform individuals and teams which lack
good relationships.
9 Credibility: Leaders should strive to maintain a company’s reputation and demonstrate
high ethical standards that lead them to command the respect of their staff.
10 Confidence: Good leaders help create confidence in a company by demonstrating high
performance standards. While they do so, they also help build the confidence of their
employees by creating a culture where employee capability building, employee growth and
growth from within remains at the center stage of their mindset.
94
Theoretical concepts of Accounting
Question 1: What is account and accounting?
Answer: An account is an accounting record of increases and decreases in a specific asset, liability
or owner’s equity item.
Accounting: Accounting is an information system that identifies, records and communicates the
economic activities of an organization to the interested users.
Question 2: State the accounting equation.
Answer: A= L+ O/E; that means, Assets = Liabilities + Owner’s Equity
Assets: Assets are those resources that give future economic benefits. Example---land, prepaid
rent, cash.
Liabilities: Liabilities are creditors’ claims on total assets. Example --- accounts payable, notes
payable etc.
Owner’s Equity: Owner’s equity is owner’s claims on total assets. It can be expanded as follows:
● Capital: Any item brought by the owner for the business.
● Drawing: Any item withdrawn by the owner for personal use.
● Revenue: Revenue is the income that a company receives from its normal business
activities, usually from the sale of goods and services to customers.
● Expense: Amount spent or cost incurred in an organization's efforts to generate revenue,
representing the cost of doing business.
Question 3: Explain the users of accounting.
a. Internal Users: Internal users are people inside of an organization who plan, organize, and run
business operation and use financial information to make decisions.
● Managers: Managers are internal users of accounting information. Managers need
accounting information to know the growth of organization, to compare the budget with
actual result etc.
● Employee: Employees of the organization require accounting information for the
evaluation of the outcome of the organization and for the appraisal of their performance
during the year.
● Finance Director: Finance Director needs accounting information to know the financial
condition, to collect funds, to utilize those funds effectively.
95
b. External Users: External users are individuals outside of an organization.
✔ Investors: They use accounting information to make decisions to buy, hold, or sell stock.
✔ Creditors: They use accounting information to evaluate the risks of granting credit or
lending money.
✔ Taxing Authority: They use accounting information to compute tax liability.
✔ Regulatory Agencies: They want to know whether the company is operating within
prescribed rules
✔ Labor Unions: They want to know whether the owners can pay increased wages and
benefits.
Question 4: What are the generally accepted accounting principles (GAAP)?
The common set of accounting principles, standards and procedures that companies use to
compile their financial statements. These include the standards, conventions, and rules that
accountants follow in recording and summarizing and in the preparation of financial
statements. Companies are expected to follow GAAP rules when reporting their financial data
via financial statements.
Question 5: What are the Assumptions of Accounting? Explain them.
1. Economic entity assumption: The activities of an entity should be kept separate and distinct
from the activities of its owner and all other entities.
2. Going concern assumption: Under going concern assumption, an entity is viewed as
continuing in business for the foreseeable future.
3. Monetary unit assumption: Under monetary unit assumption, accounting records only the
transaction data that can be expressed in monetary terms.
4. Time period assumption: This assumption allows for the division of businesses operational
activities into artificial time periods for reporting purposes as determined by the business
owners. The company can record information on a daily, weekly, monthly, quarterly and
yearly basis during a time frame they deem relevant.
Question 6: Explain the Principles of Accounting.
1. Cost Principle: The cost principle requires that assets be recorded at the cash amount (or
its equivalent) at the time that an asset is acquired. For example, if equipment is acquired for
the cash amount of $50,000, the equipment will be recorded at $50,000.
2. Matching Principle: According to this principle, expenses are to be matched with revenue
to determine net income
96
3. Revenue Recognition Principle: Revenue should be recorded when the services are
performed or the goods are sold. The revenue recognition principle requires that revenue
should be recorded when it is realized or when it is earned.
4. Full disclosure Principle: For a business, the full disclosure principle requires a company
to provide the necessary information so that people who are accustomed to reading financial
information can make informed decisions concerning the company. The information can be
disclosed either in the body of the statements or notes to the financial statements or through
supplementary documents.
Question 7: Briefly explain the Debit and Credit terms of accounting.
Debit: Debit is an entry on the left side of a double-entry bookkeeping system that represents the
addition of an asset or expense or the reduction to a liability or revenue.
Credit: Credit is an accounting entry that either increases a liability or equity account, or decreases
an asset or expense account.
Question 8: What is double entry system?
In accounting, every transaction has two effects, debit and credit. The double entry system of
accounting means that every business transaction will involve two accounts (or more). For
example, when a company borrows money from its bank, the company's Cash account will
increase and its liability account Loans Payable will increase. If a company pays $200 for an
advertisement, its Cash account will decrease and its account Advertising Expense will increase.
Question9: What is journal?
In accounting, a journal is a record of financial transactions in order by date. A journal is often
defined as the book of original entry.
Question 10: What is bookkeeping?
Bookkeeping is the recording of financial transactions, and is part of the process of accounting in
business. Transactions include purchases, sales, receipts, and payments by an individual person or
an organization/corporation.
Question 11: What is the meaning of Simple entry & compound entry?
Simple entry: If an entry involves only two accounts, one debit and one credit, it is considered a
simple entry.Example:
97
J1
GENERAL JOURNAL
Date
2005
July 1
Account Titles and Explanation
Ref.
Cash
K. Browne, Capital
(Invested cash in the
business)
Debit
Credit
20,000
20,000
Compound Entry: When three or more accounts are required in one journal entry, the entry is
referred to as a compound entry.
Date
Account title & Explanation
Ref.
Debit
Credit
2015
Equipment
July 1
Cash
15,000
Account Payable
5’000
20,000
Question12: What is ledger?
Ledger is a principal book in which the monetary transactions of a business are posted in the form
of debits and credits.
Question 13: What is Adjusting journal entry?
Adjusting entries are journal entries made at the end of the accounting period to allocate revenue
and expenses to the period in which they are actually applicable.
Define Accrual Basis of Accounting and Cash Basis of Accounting.
Accrual Basis of Accounting: Under the accrual basis of accounting, revenues are reported on
the income statement when they are earned and expenses are matched with the related revenues
and/or are reported when the expense occurs, not when the cash is paid. The result of accrual
accounting is an income statement that better measures the profitability of a company during a
specific time period.
Cash Basis of Accounting: Under the cash basis of accounting, revenues are recorded only when
cash is received and expenses are recorded only when cash is paid.
Question 15: Define merchandising company.
A merchandising company is an enterprise that buys and sells goods to earn a profit.
Question 16: Discuss different types of merchandising inventory system.
a. Perpetual – where detailed records of each inventory purchase and sale are maintained. Cost of
goods sold is calculated at the time of each sale.
98
b. Periodic – detailed records are not maintained. Cost of goods sold is calculated only at the end
of the accounting period.
Question 17: Define FOB Shipping Point.
FOB shipping point means buyer has to pay the transportation cost.
Question 18: Define FOB Destination.
FOB destination means seller has to pay the transportation cost.
Question 19: What does 2/10, n/30 mean?
2/10, n/30 means 2 percent discount is available if the payment is made within 10 days of purchase.
Question 20: What does IFRS stand for?
IFRS stands for International Financial Reporting Standards.
Question 21: What does IASB stand for?
IASB stands for International Accounting Standards Board.
Question 22: What does IAS stand for?
IAS stands for International Accounting Standards.
Important Short Notes
Allowance method: A method of estimating uncollectible accounts receivable whereby bad debt
expense is recorded in the same period as the sale to obtain a proper matching of expense and
revenues and to achieve a proper carrying value for accounts receivable.
Bank reconciliation statement: A schedule that explains any differences between the bank’s and
the company’s records of cash.
Cash discounts: Sales discounts that are offered to induce prompt payment.
Cash dividends: A dividend paid to shareholders in cash.
Cash flows: The inflows and outflows of cash and cash equivalents.
Conceptual framework: A conceptual framework deals with fundamental financial reporting
issues such as the objectives and users of financial statements, the characteristics that make
accounting information useful, the basic elements of financial statements (e.g., assets, liabilities,
equity, income, and expenses), and the concepts for recognizing and measuring these elements in
the financial statements.
99
Conservatism: A constraint of financial reporting that means when in doubt choose the solution
that will least likely overstate assets and income.
Consistency: It states that, once you adopt an accounting principle or method, continue to follow
it consistently in future accounting periods.
Current asset: A balance sheet account that represents the value of all assets that can reasonably
expected to be converted into cash within one year. Current assets include cash and cash
equivalents, accounts receivable, inventory, marketable securities, prepaid expenses and other
liquid assets that can be readily converted to cash.
Current liability: A company's debts or obligations that are due within one year. Current liabilities
appear on the company's balance sheet and include short term debt, accounts payable, accrued
liabilities and other debts.
Depreciation: A method of allocating the cost of a fixed asset such as machine, building over its
useful life. For accounting purposes, depreciation indicates how much of an asset's value has been
used
up.
Direct write-off method: A method for recording uncollectible accounts receivable where no
entry is made until a specific account has definitely been established as uncollectible.
Earnings per share (EPS): The portion of a company's profit allocated to each outstanding share
of common stock. EPS serves as an indicator of a company's profitability.
Feedback value: The notion that relevant information helps users confirm or correct prior
expectations.
First-in, first-out (FIFO) method: The first in, first out (FIFO) method of inventory valuation is
a cost flow assumption that the first goods purchased are also the first goods sold.
Income statement: A financial statement that measures the results of operations during the period.
Inventories: Asset items held for sale in the ordinary course of business, or goods that will be used
or consumed in the production of goods to be sold.
Last in, first out (LIFO) method: The last in, first out (LIFO) method operates under the
assumption that the last item of inventory purchased is the first one sold.
Materiality: The constraint that relates to an item’s impact on a firm’s overall financial operations.
An item is material if its inclusion or omission would influence or change the judgment of a
reasonable person.
Merchandise inventory: Inventory that is purchased in a form ready for sale.
Relevance: A qualitative characteristic of accounting information that indicates that it must make
a difference in a decision.
100
Reliability: It refers to the trustworthiness of the financial statements.
Salvage value: Salvage value is the estimated resale value of an asset at the end of its useful life.
Salvage value is subtracted from the cost of a fixed asset to determine the amount of the asset cost
that will be depreciated. Thus, salvage value is used as a component of the depreciation calculation.
Trade discount: A trade discount is a reduction to the published price of a product.
Basics of Cost Accounting
Question
Answer
1
Define Cost accounting.
Cost accounting is the branch of accounting that
involves the techniques for determining and controlling
the costs of products, processes, projects, etc. Cost
accounting assists management in making financial
decisions and planning and control of the organization.
2
Is there any difference between Yes. Expense is a cost that has been expired, used up or
expense and expenditure?
was necessary for generating revenues. These are
reported in the income statement. In contrast,
expenditures are the payment or disbursement. It may
be made for the purchase of assets, a reduction of a
liability etc.
3
What is cost?
Cost can be defined as an amount to be paid or given
up to get something. In other words, cost is the value of
sacrifices to get something.
4
Define expense
Expense is the expired part of costs.
5
How many costing systems are In the manufacturing companies, there are mainly two
there?
costing systems- Marginal and Absorption costing
system.
6
What is Absorption costing?
7
Define Marginal costing
Absorption costing is defined as a method for
accumulating the costs associated with a production
process and apportioning them to individual products.
This type of costing is required by the accounting
standards to create an inventory valuation that is stated
in an organization's balance sheet.
In marginal costing, the variable costs are matched
against the sales value for the period to highlight an
important performance measure.
101
8
Define cost unit
The quantity upon which cost can be conveniently
allocated is known as cost unit.
9
What is cost center?
Cost center is the location, person or item of equipment
(or group of these) for which cost may be ascertained
and used for the purpose of cost control.
1
0
How would you like to define cost A cost object is whatever we are calculating a cost for.
object?
Examples of cost object includes: cost of a single unit
produced or cost of units produced a day or in a batch.
Raw materials consumed are also an example of cost
object
Define manufacturing cost with Manufacturing costs are the costs necessary to convert
example
raw materials into products. In other word, factory
related costs can be defined as manufacturing cost.
Example- Material, labor and Overhead cost.
What is Material or direct material? Material or direct materials are those that go with the
final products. In other word, direct materials are the
ingredients that are converted to finished goods.
1
1
1
2
Labor costs are the payment made to the employees of
the organization. On the other hand, direct labor costs
are the payments to those labors who are directly
involved in manufacturing or making the goods.
1
3
Define labor and direct labor cost.
1
4
Define manufacturing overhead.
1
5
What do you mean by cost Cost behavior refers to the way different types of
behavior?
production costs change when there is a change in level
of production.
1
6
What is the difference between cost Cost is the value of sacrifices to get something. On the
and expense?
other hand, expense is the expired or used part of costs.
1
7
What is fixed cost?
Manufacturing overhead or factory overhead are the
manufacturing costs that cannot be easily traced per
unit. In other words, indirect manufacturing costs
(indirect material and indirect labor) are called
manufacturing overhead.
The costs that remain fixed upto a relevant range. Fixed
costs can also be defined as the cost that does not vary
with the change of the activity level in short run.
102
1
8
Define variable cost.
1
9
What is semi variable cost?
2
0
How opportunity costs can be This is the cost of next best alternative forgone. It is the
defined?
opportunity lost. For example, if a sole proprietor is
foregoing a salary and benefits of $50,000 at another
job, the sole proprietor has an opportunity cost of
$50,000
Define relevant cost.
Relevant costs are the costs relevant for making
decision in specific decision.
2
1
A variable cost is a constant amount per unit produced
or used. Therefore, the total amount of the variable cost
will change proportionately with volume or activity.
Generally, a product's direct materials are a variable
cost.
Semi variable costs contain both fixed and variable
cost. They are partly affected by fluctuation in the level
of activity. Example: Factory supervision, Maintenance
etc.
2
2
Define sunk cost.
Sunk costs are the historical or past costs that have
already been incurred and cannot be recovered by
making a decision now and in future. Example: Market
surveying cost.
2
3
What is avoidable cost?
Avoidable costs are expenses that can be avoided if a
decision is made to alter the course of a project or
business. For example, a manufacturer with many
product lines can drop one of the lines, thereby
eliminating associated expenses such as labor and
materials.
2
4
What is administrative cost?
All executive, organizational and clerical costs are
considered as administrative costs. Simply, costs other
than manufacturing, marketing and selling costs are
administrative costs.
2
5
Define Common costs.
Common costs can be defined as the costs incurred to
support a number of cost objects but cannot be traced
individually.
2
6
What do you mean by conversion Costs that are required to convert the direct materials
cost?
into finished goods are conversion costs. Direct labor
and manufacturing overhead are the conversion costs.
103
2
7
How would you like to define Cost that can be easily traced to a specific cost object.
direct cost?
2
8
What do you understand
indirect cost?
2
9
Define inventorial cost.
3
0
How marketing or selling costs can Costs that are incurred to reach the products or services
be defined?
into the hand of final users.
3
1
What is product cost?
All costs involved in purchasing or manufacturing a
product are the product costs.
3
2
What is period costs?
Costs that are charged in the income statement in the
period in which they occur are the period costs.
Generally non manufacturing costs are the period costs.
3
3
What is the meaning of prime Prime costs are the main costs of a manufacturing
costs?
concern. Direct materials and direct labor costs are
jointly constitute prime costs.
3
4
What do you mean by relevant The range of activities upto which the fixed costs
range?
remain fixed.
3
5
What do you mean by unavoidable Costs a company incurs regardless of the operational
costs?
decisions it makes. Examples of unavoidable costs
include rent, office supplies and some taxes.
3
6
Define imputed cost.
A cost that is incurred by virtue of using an asset instead
of investing it or undertaking an alternative course of
action. An imputed cost is an invisible cost that is not
incurred directly, as opposed to an explicit cost, which
is incurred directly.
3
7
Define activity cost pool.
A bucket in which costs are accumulated that relate to
a single activity measure.
by Costs that cannot be easily traced to a specific cost
object.
Costs that we can store as inventory are inventoriable
costs. Since manufacturing costs remain with finished
goods and finished goods can be stored, all
manufacturing costs are inventoriable costs.
104
E-Business Management Terminologies
7. A/B Testing: Experimenting with two or more versions of a web page to determine which
performs better.
8. Ad Exchange: An online marketplace where advertisers and publishers buy and sell
advertising space.
9. Affiliate Marketing: Earning a commission by promoting and selling others' products or
services.
10. Algorithm: A set of rules or instructions followed by a computer to solve a problem or
perform a task.
11. AIDA Model: A marketing model that represents the stages of customer engagement Attention, Interest, Desire, and Action.
12. Analytics: Collection, measurement, and interpretation of data to gain insights and support
decision-making.
13. Artificial Intelligence (AI): Development of intelligent computer systems capable of
human-like tasks.
14. Augmented Reality (AR): Overlaying digital information onto the real world using
technology.
15. Behavioral Targeting: The practice of delivering targeted advertisements based on users'
online behavior and interests.
16. Big Data: Large volumes of structured and unstructured data are used for analysis and
decision-making.
17. Business Continuity: Planning and preparation to ensure the ongoing operation of critical
business functions in the event of disruptions.
18. Business Intelligence: Gathering and analyzing data to drive business insights and
decision-making.
19. Business Model: Framework describing how a company creates and delivers value to
customers
20. Business Model Canvas: A strategic management tool used to describe, design, and
evaluate a business model.
21. Business Process Automation: Automating repetitive tasks and workflows to improve
efficiency and productivity.
22. Business-to-Business (B2B): Transactions and interactions between businesses rather than
consumers.
23. Business-to-Consumer (B2C): Transactions and interactions between businesses and
individual consumers.
24. Business-to-Government (B2G): Transactions and interactions between businesses and
government entities.
25. Business-to-Employee (B2E): Activities and transactions between businesses and their
employees.
104
105
26. Chatbot: Artificial intelligence-powered program that simulates human conversation for
customer support or information retrieval.
27. Click-through Rate (CTR): Percentage of users who click on a specific link or
advertisement.
28. Cloud Backup: Storing data securely in remote servers to protect against data loss or
system failure.
29. Cloud Computing: Delivery of computing services over the internet instead of local
servers or devices.
30. Cloud Security: Measures and practices to protect data stored and processed in the cloud.
31. Cloud Storage: Storing and accessing data remotely using internet-based servers.
32. Cross-selling: Recommending complementary products or services to customers based on
their previous purchases.
33. Crowdfunding: Raising funds for a project or venture by soliciting contributions from a
large number of individuals online.
34. Customer Lifetime Value (CLV): Predicted net profit generated by a customer
throughout their relationship with a business.
35. Competitive Analysis: Evaluating competitors' strengths, weaknesses, and strategies to
gain a competitive advantage.
36. Content Marketing: Creating and distributing valuable content to attract and engage
customers.
37. Content Management System (CMS): A software application used to create, manage,
and modify digital content on a website.
38. Conversion Rate: The percentage of website visitors who take a desired action, such as
making a purchase or filling out a form.
39. Cost per Click (CPC): Amount paid by an advertiser for each click on their online ad.
40. Conversion Rate Optimization (CRO): Optimizing website elements to improve the
percentage of visitors taking desired actions.
41. Conversion Funnel: A series of steps or stages a customer goes through to complete a
desired action.
42. Customer Engagement: Building and nurturing relationships with customers to foster
loyalty and advocacy.
43. Customer Journey: Visualization of the steps and touchpoints a customer goes through
when interacting with a business.
44. Customer Journey Mapping: The process of visualizing and understanding the steps and
touchpoints a customer goes through when interacting with a business.
45. Customer Relationship Management (CRM): Managing customer interactions and
relationships to enhance satisfaction and loyalty.
46. Customer Retention: Strategies and actions aimed at keeping customers and fostering
long-term relationships.
47. Customer Satisfaction: Measurement of customers’ satisfaction with a product or service.
105
106
48. Customer Segmentation: Dividing customers into groups based on shared characteristics
for targeted marketing.
49. Customer Support: Assistance provided to customers before, during, and after a purchase
to resolve issues and provide information.
50. Cybersecurity: Protection of computer systems, networks, and data from unauthorized
access and digital threats.
51. Data Analytics: Analyzing and interpreting data to uncover patterns, correlations, and
insights.
52. Data Governance: Framework and policies for managing and protecting data assets.
53. Data Mining: Extracting patterns and information from large datasets to identify trends
and insights.
54. Data Privacy: Protection of personal and sensitive information from unauthorized access
and disclosure.
55. Data Visualization: Presentation of data in a visual format to facilitate understanding and
analysis.
56. Data Warehouse: Centralized repository for storing and managing large volumes of data
for analysis.
57. Digital Advertising: Promoting products or services through digital platforms, including
social media and search engines.
58. Digital Disruption: Disruptive innovation caused by the introduction of digital
technologies.
59. Digital Marketing: Marketing products or services using digital platforms and techniques.
60. Digital Signature: Electronic signature used to authenticate the integrity and authenticity
of digital documents or messages.
61. Digital Transformation: Integration of digital technologies into business operations for
improved efficiency and value delivery.
62. Digital Wallet: A software-based system that securely stores users' payment information
and facilitates online transactions.
63. Disruptive Innovation: Introduction of new technologies or business models that disrupt
existing markets.
64. Domain Name: The unique name that identifies a website on the internet (e.g.,
www.example.com)
65. Dropshipping: A business model where a retailer sells products without having to keep
them in stock, as the orders are fulfilled by a supplier.
66. Dynamic Content: Customizing website content based on user behavior, preferences, or
demographics.
67. Dynamic Pricing: Adjusting product prices based on real-time market conditions, demand,
or customer segments.
68. E-business: Conducting business processes electronically using digital technologies.
106
107
69. E-business Integration: Incorporating e-business processes and systems into existing
business operations.
70. E-business Ethics: Ethical considerations and practices in e-business operations and
decision-making.
71. E-business Infrastructure: Physical and digital components that support e-business
operations.
72. E-business Revenue Models: Different ways e-businesses generate revenue, such as
subscriptions, advertising, or transaction fees.
73. E-commerce: Buying and selling products or services online.
74. E-business Strategy: Strategic plan outlining leveraging digital technologies to achieve
business goals.
75. E-business Scalability: The ability of an e-business to handle increased workloads and
growth without significant disruption.
76. E-business Risk Management: Identifying, assessing, and mitigating risks associated
with e-business operations.
77. E-Service: The delivery of services electronically through digital channels.
78. ERP (Enterprise Resource Planning): A system that integrates various business
processes and functions into a unified platform.
79. Email Marketing: Sending targeted emails to a group of individuals to promote products
or services.
80. E-payment: Electronic methods of payment, such as credit cards, mobile wallets, and
digital currencies.
81. Exit Intent Popup: A popup window that appears when a user attempts to leave a website,
often used for capturing leads or offering discounts.
82. Fulfillment: The process of processing, packaging, and delivering orders to customers.
83. Gamification: The application of game elements and mechanics in non-gaming contexts
to engage users and drive desired behaviors.
84. Gamification: Applying game elements and mechanics to non-game contexts to drive
engagement and motivation.
85. Geolocation: Determining and utilizing the geographical location of a device or user.
86. Growth Hacking: A marketing technique focused on rapid experimentation and
leveraging unconventional methods to achieve rapid business growth.
87. GDPR (General Data Protection Regulation): A regulation in the European Union that
protects the personal data and privacy of individuals.
88. Influencer Marketing: A marketing strategy that involves collaborating with influential
individuals to promote products or services.
89. Inbound Marketing: A customer-centric approach to marketing that focuses on attracting
and engaging customers through valuable content and experiences.
90. Information Architecture: The structural design and organization of information on a
website or application.
107
108
91. Innovation Management: The process of managing and promoting innovation within an
organization.
92. Internet of Things (IoT): Network of interconnected physical devices embedded with
sensors and software for data exchange.
93. Internet Marketing: Promoting products or services through various online channels.
94. Intellectual Property: Legal rights and protections for original creations, such as
inventions, trademarks, and copyrights.
95. Java: A popular programming language used for developing various applications and web
content.
96. JIT (Just-in-Time) Inventory: An inventory management strategy where products are
ordered and received as needed, minimizing storage costs and waste.
97. Joint Venture: A business agreement between two or more parties to pursue a specific
project or venture together.
98. JSON (JavaScript Object Notation): A lightweight data interchange format commonly
used for transmitting data between a server and a web application.
99. Jump Page: A web page designed to quickly redirect users to another page or website.
100.
Key Performance Indicators (KPIs): Measurable values used to evaluate
business performance.
101.
Keyword Research: The process of identifying and analyzing the keywords and
phrases that users search for in relation to a specific topic or industry.
102.
Knowledge Management: The process of capturing, organizing, and sharing an
organization's knowledge and information to improve decision-making and efficiency.
103.
KPI Dashboard: A visual representation of key performance indicators and
metrics, often displayed in real-time for easy monitoring and analysis.
104.
Kiosk: A self-service terminal or stand-alone device that allows users to access
information, complete transactions, or perform specific tasks.
105.
Landing Page: Web page designed for a specific marketing campaign to capture
visitor information or encourage action.
106.
Lead Generation: Process of attracting and capturing potential customers' interest
in a product or service.
107.
Machine Learning: A subset of AI enabling computers to learn from data and
improve performance without explicit programming.
108.
Market Research: Gathering and analyzing data to understand customer needs,
preferences, and market trends.
109.
Mobile Commerce (m-commerce): Conducting business transactions through
mobile devices.
110.
Mobile App Development: Creation of applications for mobile devices, such as
smartphones and tablets.
111.
Multichannel Marketing: Utilizing multiple marketing channels to reach
customers and enhance brand visibility.
108
109
112.
Native Advertising: A form of paid advertising that seamlessly blends with the
format and style of the surrounding content.
113.
Net Promoter Score (NPS): A measure of customer loyalty and satisfaction based
on the likelihood of customers recommending a product or service.
114.
Network Effect: The phenomenon where the value of a product or service
increases as more users join or participate.
115.
NoSQL: A database management system designed for storing and retrieving
unstructured or non-relational data.
116.
Newsletter: A periodic publication sent via email to subscribers, providing updates,
news, or promotional content.
117.
Open Rate: Percentage of recipients who open an email or newsletter.
118.
Omni-channel: Integration of multiple channels to provide a seamless customer
experience.
119.
Outbound Marketing: Traditional marketing methods that involve actively
reaching out to customers through advertising, cold calling, or direct mail.
120.
Order Fulfillment: The process of receiving, processing, and delivering customer
orders.
121.
Online Advertising: Displaying ads on websites or digital platforms to reach a
target audience.
122.
Online Reputation: Perception and credibility of a business or individual as
reflected by online information.
123.
Online Payment Systems: Electronic platforms facilitating secure online
transactions.
124.
Online Reputation Management: Monitoring and managing a company's online
image and public perception.
125.
Online Marketing: Promoting products or services using digital channels
126.
Personalization: Tailoring content, product recommendations, or experiences to
individual user preferences and characteristics.
127.
Payment Gateway: An online service that handles the secure transmission of
payment information between a website and a payment processor.
128.
Product Lifecycle: The stages that a product goes through from development and
introduction to market growth, maturity, and eventual decline.
129.
Project Management: The discipline of planning, organizing, and managing
resources to complete a specific project within defined objectives and timelines.
130.
Privacy Policy: A statement that outlines how an organization collects, uses, and
protects users' personal information.
131.
Quality Assurance: The process of ensuring that products or services meet
specified quality standards and customer expectations.
132.
Query String: The part of a URL that contains parameters or data passed to a web
application or server.
109
110
133.
Quick Response (QR) Code: A two-dimensional barcode that can be scanned by
a mobile device to quickly access information or perform actions.
134.
Quantitative Analysis: The examination and interpretation of numerical data for
the purpose of understanding patterns, trends, and relationships.
135.
Quote-to-Cash: The process that encompasses the entire sales cycle from creating
a quote to receiving payment.
136.
Return on Investment (ROI): A measure of the profitability or financial gain
resulting from an investment or business initiative.
137.
Return on Investment (ROI): Measurement of profitability in relation to the
investment made.
138.
Return Policy: Policies and procedures for accepting and processing product
returns.
139.
Retargeting: Displaying ads to individuals who have previously shown interest in
a product or service.
140.
Sales Funnel: Visual representation of the customer journey from awareness to
purchase.
141.
Search Engine Optimization (SEO): Enhancing website visibility and ranking in
search engine results for increased organic traffic.
142.
Social Listening: Monitoring and analyzing online conversations to understand
customer sentiment and trends.
143.
Social Media Marketing: Utilizing social media platforms to promote products,
engage with customers, and build brand awareness.
144.
Supply Chain Management: Coordination and optimization of the flow of goods
and services from suppliers to customers.
145.
Trend Analysis: The examination of historical data and patterns to identify and
predict future trends or market behavior.
146.
User Experience (UX): Overall experience and satisfaction of users when
interacting with digital products or services.
147.
User Interface (UI): Visual and interactive elements of a digital interface through
which users interact.
148.
Upselling: Encouraging customers to purchase higher-priced or upgraded versions
of a product or service.
149.
Value Proposition: Unique benefits and value that a product or service offers to
customers.
150.
Venture Capital: Financing provided to startups and high-potential businesses by
investors in exchange for ownership equity or shares.
151.
Virtual Assistant: AI-powered software providing assistance, information, or task
automation.
152.
Virtual Reality (VR): Computer-generated simulation of a three-dimensional
environment for user immersion.
110
111
153.
Web Analytics: Measurement, collection, and analysis of website data to optimize
performance.
154.
Web Development: Building and maintaining websites for optimal performance
and user experience.
155.
Web Design: Planning and creating visually appealing and user-friendly websites.
156.
Word-of-Mouth Marketing: The organic spread of information and
recommendations from person to person, often facilitated by satisfied customers.
157.
Xenocentric Approach: A business strategy that focuses on catering to the
preferences and needs of foreign or international markets.
158.
Xerox: A company known for its photocopiers and document management
solutions, often used as a verb to refer to photocopying documents.
159.
YouTube Marketing: The use of YouTube's platform and features to promote
products, services, or engage with a target audience through video content.
160.
Yield Management: The practice of dynamically adjusting prices and inventory to
maximize revenue and profitability based on demand.
161.
Yellow Pages: A directory of businesses listed by category, often in printed form,
now also available online.
162.
Youth Marketing: Marketing strategies and tactics aimed at targeting and
engaging younger consumers, typically in the age range of teenagers to young adults.
163.
Yield Rate: The percentage of users who complete a desired action or conversion
out of the total number of users who engage with a website or advertisement.
164.
Zero Moment of Truth (ZMOT): The moment when a consumer researches a
product or service online before making a purchasing decision.
165.
Zigbee: A low-power wireless communication protocol used for connecting and
controlling devices in smart homes and IoT applications.
166.
Zero Inventory: A production and inventory management approach where
products are manufactured and delivered as needed, eliminating the need for stock.
167.
Zealot Customer: A highly passionate and loyal customer who advocates for a
brand or product and spreads positive word-of-mouth.
111
112
Key terms of Tourism and Hospitality Industry
Front Office & Revenue Management:
1. ADR (Average Daily Rate): The average revenue earned per occupied room in a hotel.
2. Allocation: The process of assigning a specific number of rooms to different market segments
or distribution channels.
3. Availability: The number of rooms or inventory available for sale on a specific date.
4. BAR (Best Available Rate): The most favorable rate offered to guests without any restrictions
or conditions.
5. Booking Window: The period of time between the booking date and the actual stay date.
6. Channel Management: The process of managing and optimizing distribution channels to
maximize bookings and revenue.
7. Closed to Arrival: A restriction where no new reservations are allowed for a specific arrival
date.
8. Commissions: The percentage of revenue paid to third-party agents or travel intermediaries for
bookings.
9. Conversion Rate: The percentage of website visitors who make a booking.
10. CTA (Call to Action): A prompt or invitation for potential guests to take a specific action, such
as making a reservation.
11. Daily Pickup: The number of rooms or revenue booked on a specific day compared to the same
day in the previous year.
12. Distribution Channels: Various channels through which hotel rooms are sold, including
websites, online travel agencies, and direct bookings.
13. Forecasting: Predicting future demand and revenue based on historical data and market trends.
14. Front Office: The department responsible for guest services, including check-in, check-out,
and concierge services.
15. Group Block: A designated number of rooms set aside for a specific group or event.
16. Group Sales: The process of selling rooms and services to groups or organizations.
17. GDS (Global Distribution System): A network that allows travel agencies and online platforms
to access and book hotel inventory.
18. House Count: The total number of guests currently staying in a hotel.
113
19. Inventory: The number of available rooms for sale on a specific date.
20. Lead Time: The duration between a booking request and the actual stay date.
21. Market Segment: A specific group of travelers with similar characteristics, needs, or booking
patterns.
22. No-show: A guest with a confirmed reservation who fails to arrive or cancel.
23. Occupancy Rate: The percentage of available rooms occupied by guests.
24. OTA (Online Travel Agency): A website or platform that allows travelers to book
accommodations online.
25. Overbooking: Accepting more reservations than the hotel's available rooms, relying on
cancellations or no-shows.
26. Pace Report: A report that shows the pace of bookings and revenue compared to a
predetermined goal.
27. Parity Rate: Ensuring that the rates offered across different distribution channels are consistent.
28. PMS (Property Management System): A computerized system used to manage hotel
operations, including front office functions.
29. Rack Rate: The standard rate for a room before any discounts or promotions.
30. Rate Fence: Restrictions or conditions that control the availability and pricing of rooms based
on various factors.
31. Rate Management: The process of setting and adjusting room rates based on demand, market
conditions, and competition.
32. Revenue Management: The strategic approach to optimizing revenue by managing room rates,
availability, and distribution.
33. RevPAR (Revenue per Available Room): The total room revenue divided by the number of
available rooms.
34. Room Type: The category or classification of a guest room based on its size, amenities, and
features.
35. S&D (Sales and Catering): The department responsible for selling and managing events,
meetings, and conferences.
36. Segmentation: The process of dividing the market into distinct groups based on various
characteristics and preferences.
37. Stop Sell: A restriction where no new reservations are allowed for a specific date or period.
114
38. Strategy: The overarching plan or approach for achieving revenue goals, including pricing and
distribution strategies.
39. Upselling: Encouraging guests to upgrade their room or add additional services for a higher
rate.
40. Walk-in: A guest who arrives at the hotel without a prior reservation.
41. Wash Factor: The percentage of rooms that need to be left unoccupied for various reasons,
such as maintenance or housekeeping.
42. Yield Management: The practice of adjusting room rates and availability to maximize revenue.
43. CRS (Central Reservation System): A computerized system used to manage and track hotel
reservations.
44. Cancellation Policy: The terms and conditions for canceling a reservation, including any
associated fees or penalties.
45. Ancillary Revenue: Additional revenue generated from non-room sources, such as food and
beverage or spa services.
46. Rate Parity: Ensuring that the rates offered across different distribution channels are consistent.
47. Dynamic Pricing: The practice of adjusting room rates in real-time based on demand,
availability, and market conditions.
48. Walk-in Rate: The rate offered to guests who arrive without a prior reservation.
49. Competitive Set: A group of similar hotels in the same market used for benchmarking and
comparison purposes.
50. Revenue Per Guest: The average revenue generated from each guest, taking into account room
rate and ancillary spending.
Food and Beverage Management:
✔ F&B Service:
1. A la carte: A menu style where each dish is priced separately.
2. Banquet: A large event or gathering where food and beverages are served.
3. Busser: A staff member responsible for clearing and resetting tables.
4. Corkage: The fee charged for opening and serving a bottle of wine brought in by a guest.
115
5. Counter Service: A service style where guests order and receive their food at a counter or selfservice station.
6. Fine Dining: An upscale dining experience with high-quality food, service, and ambiance.
7. Gueridon Service: A tableside service where food is prepared or finished in front of the guests.
8. Host/Hostess: The staff member who greets and seats guests.
9. Maitre d': The head host or hostess responsible for managing the dining room and guest
reservations.
10. Menu Engineering: The process of strategically designing and pricing menu items to maximize
profitability.
11. Plate Presentation: The artful arrangement of food on a plate to enhance visual appeal.
12. Prix Fixe: A menu style with a fixed price for a set number of courses.
13. Sommelier: A wine expert responsible for curating the wine list and assisting guests in selecting
wines.
14. Station: A designated area in the restaurant where specific tasks are performed, such as
beverage service or dessert preparation.
15. Table d'hote: A menu style where a complete meal with multiple courses is offered at a fixed
price.
✔ F&B Production:
16. Batch Cooking: Cooking food in large quantities ahead of service and reheating as needed.
17. Blanche: To briefly cook food in boiling water and then transfer it to cold water to stop the
cooking process.
18. Braising: A cooking technique where food is first browned and then cooked slowly in a small
amount of liquid.
19. Canapé: A small, bite-sized appetizer typically served on a piece of bread or cracker.
20. Caramelize: To cook sugar until it turns into a golden-brown syrup.
21. Deglaze: To add liquid to a pan to loosen browned bits of food and create a flavorful sauce.
22. Emulsify: To combine two liquids, such as oil and vinegar, into a stable mixture.
23. Fillet: To remove the bones from a piece of meat or fish.
116
24. Flambe: A cooking technique where alcohol is added to a hot pan to create a burst of flames
for flavor and presentation.
25. Garnish: A decorative or flavorful item added to a dish for aesthetic appeal.
26. Gratin: A dish topped with breadcrumbs and/or cheese and then browned in the oven.
27. Infusion: The process of steeping flavoring ingredients, such as herbs or tea leaves, in a liquid
to extract their flavors.
28. Julienne: To cut food into thin, matchstick-like strips.
29. Mise en Place: The preparation and organization of ingredients and equipment before cooking.
30. Pan-sear: To cook food quickly over high heat in a pan to achieve a browned exterior.
31. Poach: To cook food gently in liquid, usually water or broth, below the boiling point.
32. Puree: To blend or process food into a smooth, uniform texture.
33. Reduction: The process of simmering a liquid to concentrate its flavors and thicken its
consistency.
34. Roux: A mixture of flour and fat used as a thickening agent for sauces and soups.
35. Saute: To cook food quickly in a small amount of fat over high heat.
36. Sear: To quickly brown the surface of food using high heat.
37. Sous Chef: The second-in-command in the kitchen, responsible for overseeing food production
and managing the kitchen staff.
38. Steam: To cook food by exposing it to steam, either in a steamer or by placing it above boiling
water.
39. Stock: A flavorful liquid made by simmering bones, vegetables, and aromatics for use as a
base in soups, sauces, and other dishes.
40. Tempura: A Japanese frying technique where food is dipped in a light batter and deep-fried.
Housekeeping Department:
1. Accommodation: The provision of lodging or rooms for guests.
2. Attendant: A staff member responsible for cleaning and maintaining guest rooms.
3. Back-of-House: Areas of a hotel or facility not accessible to guests, where housekeeping
operations are conducted.
117
4. Bedding: The sheets, blankets, and pillows used on beds.
5. Check-out: The process by which guests leave their rooms and settle their bills.
6. Cleaning Agent: Chemicals used for cleaning surfaces, such as detergents, disinfectants, and
sanitizers.
7. Concierge: A staff member who assists guests with various services, including arranging
housekeeping requests.
8. Daily Housekeeping: Regular cleaning and tidying of guest rooms and common areas.
9. Deodorizer: A product used to remove or mask unpleasant odors.
10. DND (Do Not Disturb): A sign or indication that the guest does not want to be disturbed and
their room should not be entered.
11. Guest Room Inventory: A record of items present in each guest room, including furniture,
appliances, and amenities.
12. Housekeeping Department: The department responsible for cleaning, maintenance, and upkeep
of the property.
13. Housekeeping Report: A document detailing the status of rooms, including occupied, vacant,
and ready-for-occupancy rooms.
14. Housekeeping Standards: Guidelines and benchmarks for cleanliness, organization, and
maintenance within the property.
15. Housekeeping Supervisor: A staff member who oversees and coordinates housekeeping
operations.
16. Houseman: A housekeeping staff member responsible for assisting with heavy cleaning tasks
and moving furniture.
17. Inspection: A systematic review of rooms and areas to ensure they meet cleanliness and
maintenance standards.
18. Key Control: Procedures and measures to ensure the security and accountability of room keys.
19. Laundry: The department responsible for washing, drying, and ironing linens and uniforms.
20. Linen Room: A designated storage area for clean linens, towels, and other bedding items.
21. Lost and Found: A designated area for storing and cataloging lost items found within the
property.
22. Maid Cart: A mobile cart equipped with cleaning supplies, linens, and amenities used by
housekeeping staff.
118
23. Mini-Bar: A small refrigerator in guest rooms stocked with beverages and snacks.
24. Occupied Room: A guest room currently in use by a guest.
25. Out of Order: A room or facility temporarily unavailable for use due to maintenance or repairs.
26. PMS (Property Management System): A computerized system used to manage hotel
operations, including housekeeping tasks.
27. Preventive Maintenance: Scheduled maintenance activities performed to prevent equipment or
facility breakdowns.
28. Public Areas: Common spaces accessible to guests, such as lobbies, corridors, and lounges.
29. Quality Control: Processes and measures to ensure consistent and high-quality housekeeping
services.
30. Recycling: Separating and collecting waste materials for reuse or processing.
31. Room Attendant: A housekeeping staff member responsible for cleaning and preparing guest
rooms.
32. Room Change: The process of moving a guest from one room to another.
33. Room Inventory: A detailed list of items in each guest room, including furniture, fixtures, and
amenities.
34. Room Status: The current condition or availability of a guest room (e.g., vacant, occupied,
ready, out of order).
35. Safety Data Sheet (SDS): A document providing information about the hazards and handling
of chemicals used in housekeeping.
36. Sanitization: The process of reducing the number of microorganisms on surfaces to a safe level.
37. Slip-resistant Mats: Mats placed in wet or high -traffic areas to prevent slips and falls.
38. Stain Removal: Techniques and products used to eliminate stains from fabrics, carpets, and
surfaces.
39. Stocktaking: Counting and recording inventory levels of supplies and equipment.
40. Sustainability: Practices aimed at reducing the environmental impact of housekeeping
operations, such as energy conservation and waste reduction.
41. Turndown Service: Evening housekeeping service that includes preparing the bed, closing
curtains, and tidying the room.
42. Uniform: The designated attire worn by housekeeping staff to represent the property and
maintain a professional appearance.
119
43. Valet Service: A service provided to guests for cleaning and pressing their clothing.
44. Vacuum Cleaner: A device used to remove dust, dirt, and debris from carpets and floors.
45. Waste Management: Procedures and practices for the proper disposal and recycling of waste
materials.
46. Work Order: A written request or instruction for maintenance or repair tasks within the
property.
47. Workload Planning: Allocating resources and scheduling tasks to ensure efficient
housekeeping operations.
48. Worn and Damaged Inventory: Items that are no longer usable or in need of repair or
replacement.
49. Workflow: The sequence of tasks and activities involved in housekeeping operations.
50. Workstation: A designated area where housekeeping staff perform their duties, such as linen
folding or cleaning supplies storage.
120
Innovation and Entrepreneurship Glossary
● Innovation: The process of creating and implementing new ideas, products, services, or processes
that bring about positive change in various industries and sectors.
● Entrepreneurship: The activity of designing, launching, and managing a new business venture with
the aim of making a profit and taking risks in pursuit of opportunities.
● Technology: The application of scientific knowledge, tools, and techniques to create or improve
products, services, or processes. In the context of innovation and entrepreneurship, technology often
refers to advancements in information technology (IT), software development, hardware, and digital
solutions.
● Information Technology (IT): The use of computers, software, networks, and electronic systems
to store, process, transmit, and retrieve information. IT plays a vital role in driving innovation and
enabling entrepreneurship across various industries.
● Agribusiness: The sector that encompasses the business activities related to agricultural production,
processing, distribution, and marketing. It involves applying innovative practices and technologies
to improve agricultural productivity, sustainability, and profitability.
● RMG (Readymade Garments): The industry involved in the design, production, and sale of
clothing and apparel. In the context of innovation and entrepreneurship, garments may include
advancements in textile manufacturing, sustainable fashion, e-commerce platforms, and supply
chain management.
● Social Entrepreneurship: Entrepreneurial activities that aim to address social or environmental
challenges while also generating sustainable revenue. Social entrepreneurs create innovative
solutions to tackle societal issues such as poverty, education, healthcare, and environmental
sustainability.
● Education: The process of acquiring knowledge, skills, values, and attitudes through various
teaching and learning methods. In the context of innovation and entrepreneurship, education may
involve technological advancements in e-learning, online platforms, educational software, and
personalized learning approaches.
● Merchandising: The activity of promoting and selling products to customers. In the context of
innovation and entrepreneurship, merchandising may refer to creative strategies, branding
techniques, product placement, and retail innovations that enhance customer experiences and drive
sales.
● Food Industry: The sector encompassing the production, processing, distribution, and sale of food
and beverages. In the context of innovation and entrepreneurship, the food industry may involve
advancements in food technology, sustainable agriculture, food delivery platforms, and alternative
food sources.
121
● Travel and Tourism: The industry related to travel, hospitality, and leisure activities. In the context
of innovation and entrepreneurship, travel and tourism may include technological innovations in
booking systems, travel apps, destination marketing, sustainable tourism practices, and experiences.
● Start-up: A newly established business venture typically characterized by its innovative products,
services, or business models. Start-ups are often associated with high growth potential, scalability,
and a focus on disrupting traditional industries.
● Incubator: An organization or program that supports early-stage start-ups by providing resources,
mentorship, networking opportunities, and infrastructure to help them grow and succeed.
● Venture Capital: Funding provided to start-ups and high-potential businesses by investors who are
willing to take on high-risk investments in exchange for equity or ownership in the company.
● Crowdfunding: The practice of raising funds for a project or venture by collecting small
contributions from a large number of individuals, typically through online platforms.
● Intellectual Property (IP): Legal rights granted to individuals or organizations for their inventions,
designs, brands, and creative works. IP protection encourages innovation and enables entrepreneurs
to safeguard their ideas and creations.
● Market Research: The process of gathering and analyzing data about target markets, customers,
competitors, and industry trends to inform business decisions and identify market opportunities.
● Lean Startup: An entrepreneurial approach that emphasizes rapid experimentation, iterative
product development, and validated learning to reduce risks and build successful businesses.
● Scalability: The ability of a business model or product to handle increased demand, expand into
new markets, and grow without compromising its effectiveness or efficiency.
Technopreneurship (IT Focus):
1
Artificial Intelligence (AI): The development of computer systems that can perform tasks that
typically require human intelligence, such as speech recognition, problem-solving, and decisionmaking.
2
Machine Learning: A subset of AI that involves the development of algorithms and models that
enable computers to learn and make predictions or decisions based on data without being explicitly
programmed.
3
Internet of Things (IoT): The network of physical devices, vehicles, appliances, and other objects
embedded with sensors, software, and connectivity, enabling them to collect and exchange data.
4
Block chain: A decentralized and distributed digital ledger technology that securely records and
verifies transactions across multiple computers, ensuring transparency and immutability.
122
5
Cloud Computing: The delivery of computing services, including storage, servers, databases,
software, and analytics, over the internet, enabling flexible and on-demand access.
6
Cyber security: Measures and practices designed to protect computer systems, networks, and data
from unauthorized access, breaches, and attacks.
7
Big Data: Large volumes of structured and unstructured data that are difficult to process and analyze
using traditional methods, often requiring advanced tools and algorithms.
8
Augmented Reality (AR): Technology that overlays digital information, such as images, videos, or
3D models, onto the real-world environment, enhancing users' perception and interaction.
9
Virtual Reality (VR): An immersive technology that creates a simulated environment, allowing
users to interact with a computer-generated world through specialized devices, such as headsets.
10 Data Analytics: The process of examining, interpreting, and deriving insights from data to support
decision-making and improve business performance.
11 Agile Development: An iterative and flexible approach to software development that emphasizes
collaboration, adaptability, and delivering working solutions in shorter timeframes.
12 User Experience (UX): The overall experience and satisfaction that a user has when interacting
with a product, system, or service, focusing on usability, accessibility, and emotional response.
13 User Interface (UI): The visual and interactive elements of a software application or website that
allow users to interact with and navigate the system.
14 DevOps: A collaborative approach that combines software development (Dev) and IT operations
(Ops), aiming for faster and more reliable software delivery and deployment.
15 API (Application Programming Interface): A set of rules and protocols that enable different
software applications to communicate and interact with each other.
16 Data Privacy: The protection of personal and sensitive information from unauthorized access, use,
or disclosure, ensuring compliance with privacy laws and regulations.
17 Cryptocurrency: Digital or virtual currencies that use cryptography for secure transactions and
control the creation of new units, such as Bitcoin, Ethereum, and Ripple.
Business Analytics:
1
Business Intelligence (BI): The process of collecting, analyzing, and presenting data to support
business decision-making and strategic planning.
2
Data Mining: The practice of examining large datasets to discover patterns, correlations, or insights
that can be used to make informed business decisions.
123
3
Predictive Analytics: The use of statistical models and algorithms to analyze historical data and
make predictions or forecasts about future events or outcomes.
4
Descriptive Analytics: The analysis of historical data to understand past performance, trends, and
patterns, providing insights into what has happened in the business.
5
Prescriptive Analytics: The use of data, mathematical models, and optimization techniques to
recommend or prescribe the best course of action or decision for a given business scenario.
6
Data Visualization: The representation of data and information through visual elements, such as
charts, graphs, or dashboards, to facilitate understanding, exploration, and communication of
insights.
7
Key Performance Indicators (KPIs): Quantifiable metrics or measures used to evaluate the
performance and progress of an organization, department, or specific business objectives.
8
Data Warehouse: A centralized repository that stores structured and organized data from various
sources, enabling efficient data retrieval, analysis, and reporting.
9
Data Governance: The establishment of policies, procedures, and standards for managing and
ensuring the quality, integrity, and security of data within an organization.
10 Machine Learning: A subset of artificial intelligence (AI) that uses algorithms and statistical
models to enable computers to learn from data and improve their performance without explicit
programming.
Digital Marketing:
1
Search Engine Optimization (SEO): The practice of optimizing a website or online content to
improve its visibility, ranking, and organic (non-paid) search engine traffic.
2
Pay-Per-Click (PPC): An online advertising model where advertisers pay a fee each time their ad
is clicked, commonly used in search engine advertising and social media advertising.
3
Conversion Rate Optimization (CRO): The process of optimizing a website or landing page to
increase the percentage of visitors who take a desired action, such as making a purchase or filling
out a form.
4
Content Marketing: A marketing strategy that involves creating and distributing valuable, relevant,
and consistent content to attract and engage a target audience, with the ultimate goal of driving
profitable customer action.
5
Social Media Marketing: The use of social media platforms, such as Facebook, Twitter, and
Instagram, to promote products, services, or brands, engage with the audience, and drive website
traffic or conversions.
124
6
Email Marketing: The practice of using email to communicate with customers, prospects, or leads,
typically for the purpose of promoting products or services, building relationships, or driving
conversions.
7
Influencer Marketing: Collaborating with influential individuals or online personalities
(influencers) to promote products, services, or brands to their engaged audience and leverage their
credibility and reach.
8
Customer Relationship Management (CRM): A strategy, software, or system that manages and
tracks interactions with customers, prospects, or leads throughout their lifecycle, aiming to improve
customer satisfaction, retention, and loyalty.
9
A/B Testing: The process of comparing two or more versions of a web page, email, or advertisement
to determine which one performs better in terms of conversion rates, click-through rates, or other
metrics.
10 Marketing Automation: The use of software and technologies to automate repetitive marketing
tasks, such as email campaigns, lead nurturing, or social media scheduling, to improve efficiency
and scalability.
11 Retargeting: A marketing technique that targets individuals who have previously interacted with a
brand or visited a website, displaying customized ads to re-engage and encourage conversion.
Agripreneurship & Food Processing (Agriculture focus)
✔ Precision Farming: The use of advanced technologies, such as GPS, sensors, drones, and data analytics,
to optimize agricultural practices, enhance productivity, and reduce resource wastage.
✔ Vertical Farming: A method of growing crops in vertically stacked layers or structures, often indoors
or in controlled environments, using artificial lighting and soilless cultivation.
✔ Sustainable Agriculture: Farming practices that prioritize environmental stewardship, biodiversity
conservation, soil health, water conservation, and responsible resource management.
✔ Agtech: The application of technology, such as sensors, robotics, drones, AI, and data analytics, to
improve efficiency, productivity, and sustainability in agriculture.
✔ Farm-to-Fork: An approach that emphasizes the transparency and traceability of food products,
ensuring that they are sourced, processed, and distributed in a sustainable and responsible manner.
✔ Plant-based: Food products that are primarily made from plant sources, excluding or minimizing
animal-derived ingredients, often catering to vegetarian, vegan, and flexitarian diets.
✔ Food Delivery Platforms: Online platforms and mobile apps that enable customers to order food from
restaurants and have it delivered to their preferred location.
125
✔ FoodTech: The application of technology and innovation to improve various aspects of the food
industry, including production, distribution, packaging, and food safety.
Applied Entrepreneurial Finance (Business Finance Focus)
✔ Initial Public Offering (IPO): The process by which a privately held company offers its shares to the
public for the first time, raising capital and becoming a publicly traded entity.
✔ Debt Financing: Obtaining funds by borrowing money from individuals, banks, or financial institutions,
with an obligation to repay the borrowed amount plus interest over a specified period.
✔ Equity Financing: Raising capital by selling shares or ownership stakes in a company to investors, who
become partial owners and share in the company's profits and losses.
✔ Angel Network: A group of angel investors who pool their resources, knowledge, and expertise to
invest collectively in promising start-ups or early-stage companies.
✔ Due Diligence: The process of conducting thorough research, analysis, and evaluation of a potential
investment or business opportunity to assess its viability, risks, and potential returns.
✔ Return on Investment (ROI): A measure of the profitability or financial performance of an investment,
comparing the gain or loss relative to the initial investment cost.
✔ Burn Rate: The rate at which a company is spending its available capital or funds, often used to assess
its financial sustainability and runway.
✔ Cash Flow: The movement of money into and out of a business, including revenue, expenses,
investments, and financing activities, crucial for assessing a company's financial health.
✔ 100. Exit Strategy: A predetermined plan for how an entrepreneur or investor intends to exit or liquidate
their investment in a company, typically through methods such as acquisition, IPO, or sale.
Social Entrepreneurship:
✔ Impact Investing: Investments made with the intention of generating measurable social or
environmental impact alongside financial returns.
✔ Triple Bottom Line: A framework that evaluates business performance based on three dimensions:
financial, social, and environmental, aiming for sustainable and responsible practices.
✔ Social Impact Measurement: The process of assessing and quantifying the social and environmental
outcomes and impacts generated by a social enterprise or initiative.
✔ Bottom of the Pyramid (BoP): The socio-economic group consisting of the world's poorest individuals,
often targeted by social entrepreneurs to create inclusive and sustainable solutions.
Manufacturing Industries
126
✔ Assembly Line: A manufacturing process in which a product is assembled by sequentially adding
components or performing specific tasks at various stations along a production line.
✔ Lean Manufacturing: A systematic approach to manufacturing that focuses on reducing waste,
improving efficiency, and maximizing value for the customer by eliminating non-value-added activities.
✔ Quality Control: The processes and techniques used to ensure that products meet specified quality
standards and customer requirements.
✔ Six Sigma: A data-driven approach to process improvement that aims to minimize defects, reduce
process variation, and improve overall quality and customer satisfaction.
✔ Just-in-Time (JIT): A production strategy that aims to minimize inventory by producing and delivering
products or components at the exact time they are needed in the production process.
✔ Kaizen: A continuous improvement philosophy and methodology that encourages small, incremental
changes in processes, systems, and behaviors to achieve higher levels of efficiency and quality.
✔ Total Productive Maintenance (TPM): A systematic approach to equipment maintenance that aims to
maximize machine availability, minimize breakdowns, and optimize overall equipment effectiveness.
✔ Supply Chain Management: The coordination and management of all activities involved in the
sourcing, procurement, production, and logistics of goods and services, from raw materials to the end
customer.
✔ Just-in-Sequence (JIS): An extension of the just-in-time (JIT) concept where components or materials
are delivered to the production line in the exact sequence and timing required for assembly.
✔ Batch Production: A manufacturing method where a set of products or components are produced
together in a single batch before moving on to the next batch.
✔ Continuous Improvement: An ongoing effort to improve processes, products, or services
incrementally over time, often involving the participation and input of employees at all levels.
Service Industries
✔ Service Industry: A sector of the economy that includes businesses and organizations primarily engaged
in providing services rather than manufacturing or producing tangible goods.
✔ Hospitality Industry: A sector of the service industry that encompasses businesses involved in lodging,
accommodations, restaurants, event planning, and tourism-related services.
✔ Tourism: The activity of traveling to different destinations for leisure, recreation, business, or other
purposes, typically involving the use of hospitality services, attractions, and transportation.
✔ Hotel: An establishment that provides lodging, accommodation, and related services to travelers and
guests, offering various amenities such as rooms, restaurants, and recreational facilities.
127
✔ Restaurant: An establishment that prepares and serves food and beverages to customers for on-site
consumption, offering a variety of dining options and culinary experiences.
✔ Catering: The business of providing food, beverages, and related services for events, parties,
conferences, or other gatherings, either on-site or at a remote location.
✔ Event Planning: The process of organizing and managing events, such as conferences, weddings, trade
shows, or corporate functions, including logistics, venue selection, and coordination of various services.
Garments:
✔ Fast Fashion: An approach to clothing production and retailing that emphasizes quickly adapting
to fashion trends and offering affordable, disposable clothing items.
✔ Sustainable Fashion: The movement toward environmentally and socially responsible practices in
the fashion industry, including ethical sourcing, fair trade, and use of eco-friendly materials.
✔ Circular Economy: An economic system aimed at minimizing waste and maximizing resource
efficiency by promoting product reuse, recycling, and reducing reliance on finite resources.
100. Supply Chain Management: The coordination and optimization of activities involved in
sourcing, production, distribution, and logistics to ensure efficient and timely delivery of products.
Education:
✔ Blended Learning: An approach that combines traditional face-to-face instruction with online
learning, leveraging digital tools and resources to enhance educational experiences.
✔ Gamification: The application of game design elements, such as points, badges, and leaderboards,
to non-game contexts to engage learners and enhance motivation.
✔ Adaptive Learning: Educational systems and technologies that personalize learning experiences
and adapt content and pace based on individual student needs and performance.
✔ EdTech: The use of technology, such as educational software, online platforms, and digital tools, to
support and enhance teaching, learning, and educational management.
Merchandising:
1. Branding: The process of creating a distinct and recognizable identity for a product, service, or
company through strategic positioning, design, messaging, and customer experience.
2. Retail Analytics: The use of data analysis and insights to understand customer behavior, optimize
product assortment, pricing, and promotional strategies, and improve retail operations.
3. Omni-Channel Retailing: The integration of multiple sales channels, such as physical stores, ecommerce websites, mobile apps, and social media, to provide a seamless and unified shopping
experience.
128
4. Experiential Retail: Retail strategies that focus on providing customers with unique and immersive
experiences, such as interactive displays, in-store events, and personalized services.
Travel and Tourism:
1. Destination Marketing: Marketing strategies and activities aimed at promoting and attracting
visitors to a specific location or destination, highlighting its unique attractions and experiences.
2. Sharing Economy: An economic model that facilitates the sharing or rental of underutilized
resources, such as accommodations (e.g., Airbnb) or transportation services (e.g., Uber, Lyft).
3. Sustainable Tourism: Tourism practices that prioritize environmental conservation, cultural
preservation, community engagement, and responsible travel behavior.
4. Travel Tech: Technological innovations and solutions that enhance various aspects of travel,
including booking platforms, travel itinerary management, navigation, and travel reviews.
Start-up and Entrepreneurship:
1. Business Model Canvas: A strategic management and entrepreneurial tool that helps visualize and
define the key components of a business model, including value proposition, revenue streams, and
customer segments.
2. Minimum Viable Product (MVP): The most basic version of a product or service that contains
enough features to attract early customers and gather feedback for further development.
3. Angel Investor: An individual who provides capital and expertise to early-stage start-ups in
exchange for equity or ownership in the company.
4. Bootstrapping: A method of funding a start-up by relying on personal savings, revenue generated
from early sales, or minimal external investment.
5. Pivot: A strategic change in a start-up's business model, product direction, or target market in
response to market feedback or changing circumstances.
6. Exit Strategy: A plan outlining how an entrepreneur or investor intends to exit or liquidate their
investment in a start-up, typically through acquisition, initial public offering (IPO), or buyout.
7. Lean Canvas: A one-page visual framework that helps entrepreneurs define and validate their
business model assumptions, focusing on key elements such as problem-solution fit, revenue
streams, and customer segments.
8. Founder: The individual or group of individuals who initiate and establish a new business venture,
taking on the primary responsibilities and risks associated with its success.
Innovation:
129
1. Open Innovation: A collaborative approach to innovation that involves seeking external ideas,
expertise, and resources through partnerships, crowdsourcing, or co-creation with customers and
other stakeholders.
2. Intellectual Property Rights (IPR): Legal rights that protect intangible assets, including patents,
trademarks, copyrights, and trade secrets, enabling creators and innovators to control and profit from
their inventions or creations.
3. Disruptive Innovation: A term coined by Clayton Christensen to describe innovations that create
new markets or disrupt existing ones by introducing simpler, more affordable, or more accessible
alternatives.
4. Blue Ocean Strategy: A business strategy that focuses on creating uncontested market space by
offering innovative products or services that cater to unmet customer needs.
Incubators, Funding, and Support:
1. Accelerator: A program that provides start-ups with mentoring, resources, and access to networks,
typically for a fixed period, to help them rapidly grow and scale their businesses.
2. Proof of Concept (PoC): A demonstration or prototype that validates the feasibility and potential
of a new product, service, or technology before committing to full-scale development.
3. Business Plan: A formal document that outlines a company's goals, strategies, market analysis,
financial projections, and operational details, often used to attract investors or secure funding.
4. Venture Capitalist (VC): An investor or investment firm that provides capital to high-potential
start-ups or early-stage companies in exchange for equity or ownership stakes.
5. Equity: Ownership or shares in a company, representing a portion of its value and giving the owner
the right to participate in profits and decision-making.
6. Seed Funding: Initial capital or investment provided to support the development and launch of a
new business or product, typically in the early stages.
7. Business Model Innovation: The creation or modification of a company's business model to offer
new value propositions, revenue streams, or operational efficiencies.
8. Co-working Space: Shared office spaces that provide infrastructure, facilities, and a collaborative
environment for entrepreneurs, freelancers, and small businesses.
9. Mentorship: A relationship in which an experienced individual (mentor) provides guidance,
support, and advice to a less experienced individual (mentee) to help them develop their skills and
achieve their goals.
Marketing and Sales:
130
1. Customer Relationship Management (CRM): Strategies, practices, and technologies used to
manage and analyze customer interactions and data throughout the customer lifecycle, with the goal
of improving customer satisfaction and loyalty.
2. Target Market: The specific group of individuals or businesses that a company aims to reach and
serve with its products or services, based on demographic, psychographic, or behavioral
characteristics.
3. Market Segmentation: The process of dividing a broader market into distinct groups of consumers
with similar needs, preferences, or characteristics, allowing for more targeted marketing efforts.
4. Value Proposition: The unique combination of benefits, solutions, or values that a company offers
to its customers, differentiating it from competitors and addressing customer needs or pain points.
5. Customer Acquisition: The process of attracting and gaining new customers, often through
marketing campaigns, promotions, and sales strategies.
6. Conversion Rate: The percentage of potential customers who take a desired action, such as making
a purchase, signing up for a service, or subscribing to a newsletter.
7. Brand Equity: The perceived value, reputation, and recognition associated with a brand,
influencing customer preferences, loyalty, and willingness to pay a premium.
8. Content Marketing: A marketing approach that focuses on creating and distributing valuable,
relevant, and engaging content to attract and retain a clearly defined audience.
9. Viral Marketing: A marketing technique that aims to spread information, messages, or content
rapidly through online sharing, social networks, and word-of-mouth, often leveraging social media
platforms.
10. Influencer Marketing: Collaborating with influential individuals or online personalities
(influencers) who have a large and engaged following to promote products, services, or brands.
Social Media and Marketing:
1
Influencer: An individual who has a significant online following and the ability to influence the
opinions, behaviors, or purchasing decisions of their audience.
2
Social Listening: The process of monitoring and analyzing social media platforms and online
channels to gain insights into customer conversations, sentiments, and trends.
3
Engagement Rate: A measure of the level of interaction, such as likes, comments, shares, or clicks,
that a social media post or campaign receives relative to the number of impressions or followers.
4
Viral Content: Content, such as videos, articles, or images, that quickly spreads and becomes
widely popular or shared across social media platforms and online communities.
131
5
Hashtag: A word or phrase preceded by the "#" symbol used on social media platforms to categorize
content and facilitate discovery and participation in specific topics or discussions.
6
Social Proof: The psychological phenomenon where people are influenced or persuaded by the
actions, opinions, or behaviors of others, often observed through social media endorsements,
reviews, or testimonials.
7
Influencer Marketing: A form of marketing that involves collaborating with influential individuals
or online personalities (influencers) to promote products, services, or brands to their engaged
audience.
8
Call to Action (CTA): A prompt or instruction in a marketing message or content that encourages
the audience to take a specific action, such as making a purchase, signing up, or subscribing.
9
Brand Ambassador: An individual who represents and promotes a brand, often through social
media, events, or other marketing initiatives, embodying the brand's values and messaging.
10 Retargeting: A marketing technique that targets individuals who have previously interacted with a
brand or visited a website, displaying customized ads to re-engage and encourage conversion.
E-commerce and Online Retail:
1
Dropshipping: A fulfillment method in which a retailer does not keep inventory in stock but instead
transfers customer orders and shipment details to a manufacturer, wholesaler, or supplier who
directly ships the products to the customer.
2
Conversion Optimization: The process of optimizing website or landing page elements, user
experience, and marketing strategies to increase the percentage of visitors who convert into
customers or take a desired action.
3
Abandoned Cart: The occurrence when a customer adds products to their online shopping cart but
leaves the website without completing the purchase, often indicating lost sales opportunities.
4
Payment Gateway: An online service or software that facilitates secure electronic payment
transactions, authorizing the transfer of funds between the customer, merchant, and financial
institutions.
5
Fulfillment Center: A centralized facility or warehouse used by e-commerce businesses to store
inventory, process orders, and handle product packaging and shipping.
6
User-Generated Content (UGC): Content created and shared by users or customers, such as
reviews, testimonials, photos, or videos, that promote or endorse a brand or its products.
7
Digital Wallet: A virtual wallet or application that allows users to securely store and manage their
payment information, making online purchases and transactions more convenient.
132
8
Subscription Model: A business model in which customers pay a recurring fee at regular intervals,
typically monthly or annually, to access products, services, or content.
9
Mobile Commerce (m-commerce): The buying and selling of goods and services through mobile
devices, such as smartphones or tablets, using mobile-optimized websites or dedicated applications.
10 Personalization: The customization and tailoring of content, product recommendations, or
shopping experiences to individual users based on their preferences, behaviors, or demographics.
Green Technology and Sustainability:
1
Renewable Energy: Energy generated from sources that can be naturally replenished, such as solar,
wind, hydro, geothermal, or biomass, reducing reliance on fossil fuels and minimizing
environmental impact.
2
Circular Economy: An economic model that aims to minimize waste, maximize resource
efficiency, and promote the continuous use, recycling, and regeneration of materials and products.
3
Carbon Footprint: The total amount of greenhouse gas emissions, primarily carbon dioxide,
produced directly or indirectly by an individual, organization, product, or event, contributing to
climate change.
4
Energy Efficiency: The practice of reducing energy consumption or waste while maintaining or
improving the desired output or functionality, often achieved through technology upgrades,
insulation, or behavioral changes.
5
Sustainable Packaging: The use of eco-friendly materials and designs in packaging to minimize
environmental impact, promote recycling and reuse, and reduce waste.
6
Life Cycle Assessment (LCA): A comprehensive evaluation of the environmental impacts of a
product, process, or service throughout its entire life cycle, from raw material extraction to disposal.
7
Greenwashing: The deceptive or misleading practice of making unsubstantiated or exaggerated
claims about the environmental benefits or sustainability of a product, service, or company.
8
Smart Grid: An electricity distribution network that integrates advanced technologies,
communication systems, and sensors to optimize the efficiency, reliability, and sustainability of
power generation and consumption.
9
E-waste: Electronic waste, including discarded or obsolete electronic devices, such as computers,
smartphones, and televisions, which require special recycling or disposal due to their potential
environmental and health hazards.
133
Chapter 10: Company Research
Introduction
In this chapter, we will delve into the importance of conducting thorough company research and
provide you with a step-by-step approach to ensure you acquire the necessary knowledge and
skills to enhance your employability and secure your desired job in your dream company.
1. Understanding the Significance of Company Research
Unlocking Opportunities: Company research is a crucial step in unlocking job opportunities. By
thoroughly researching and understanding your target companies, you gain valuable insights that
can inform your job search strategy. You become aware of their current job openings, hiring
practices, and specific requirements, allowing you to tailor your applications accordingly.
1.1 Making Informed Decisions
A comprehensive understanding of companies and their organizational structures helps you make
informed decisions about your career path. Through thorough research, you gain insights into the
company#39;s values, culture, and work environment. This knowledge enables you to evaluate
whether the company aligns with your professional aspirations, ensuring you make informed choices
about the organizations you pursue.
2. Participatory Approach to Company Research
To facilitate your learning experience and maximize your understanding of company research,
we will employ a participatory approach. This approach involves engaging in various activities
designed to enhance your comprehension and skills in conducting effective company research.
2.1. Creating a Company List
Begin by selecting and creating a list of at least 15 companies that align with your career
aspirations. Consider factors such as industry, company size, reputation, and values to ensure they resonate
with your professional goals. This step allows you to focus your research efforts on organizations that
genuinely interest you.
2.2. Understanding the Job Market Structure
Developing a comprehensive understanding of the job market structure is crucial for navigating your
career path effectively. Explore the hierarchy and organogram of companies within your chosen
industry. By familiarizing yourself with the various job levels, you can identify potential career
progression paths and target positions within the company.
2.3. Exploring Company Types and Business Processes
To conduct thorough company research, delve into the intricacies of different company types,
such as startups, small and medium enterprises (SMEs), and multinational corporations (MNCs).
Each type has its own unique business processes, organizational cultures, and growth
Trajectories. Understanding these differences enables you to tailor your applications and
Interviews to fit the specific expectations and requirements of each company.
134
2.4. Analyzing Job Descriptions and Required Skills
Job descriptions provide valuable information about the skills, qualifications, and experiences
Sought by employers. Analyze job descriptions for positions you aspire to secure within your target
companies. By mapping these requirements, you can assess your current skill set and identify areas for
improvement. This analysis allows you to determine which skills you should emphasize and develop further
to enhance your chances of success.
3. Fitting SMART Goals/Targets
Building upon your company research, it is crucial to align your goals with the specific
requirements of your target companies. Utilize the SMART goal-setting framework to ensure
your objectives are Specific, Measurable, Attainable, Relevant, and Time-bound. By
Incorporating your company research into your goals, you increase your focus and motivation
Towards achieving them. For example, if your research reveals that a particular company values strong
project management skills, you can set a SMART goal to obtain a project management certification
within six months.
4. Leveraging Company Research for Job Applications
4.1. Tailoring Resumes and Cover Letters
Utilize your company research to tailor your resumes and cover letters for each specific Application.
Highlight your relevant skills, experiences, and achievements that align with the company's
requirements. By customizing your application materials, you demonstrate your enthusiasm and
understanding of the organization, increasing your chances of standing out from other candidates.
4.2. Preparing for Interviews
Thorough company research equips you with the knowledge required to excel in job interviews.
Anticipate potential questions and align your responses with the company's goals, values, and
business processes. Showcase your understanding of the industry and discuss how your skills and
experiences align with the company's vision. This preparation demonstrates your genuine
interest and dedication, making a positive impression on the interviewers.
Conclusion
You have completed our guide on Company Research for Graduates' Employability. By following
the step-by-step guidelines outlined in this chapter and embracing the participatory pproach, you
have acquired the essential knowledge and skills necessary for conducting effective company
research. Remember, thorough company research enhances your chances of finding your desired job
and sets you apart from other candidates. Now, armed with this comprehensive understanding, go
forth and secure your dream job in your dream company!
135
Chapter 11: Networking for Jobs: Unlocking Opportunities through Connections
Introduction:
In today's highly competitive job market, the significance of networking cannot be overstated. In addition
to traditional job search methods, networking has become an essential skill for career success. Building and
nurturing professional relationships can open doors to new job opportunities, provide valuable industry
insights, and foster personal growth. In this comprehensive chapter, we will delve into the importance of
networking in the context of employability. We will explore fundamental network concepts, delve into the
power of networks, provide strategies for network development and maintenance, and offer practical tips
for leveraging networks to advance your career.
Network Concepts:
The Importance of Networks:
Imagine finding a hidden gem—an unadvertised job opportunity within a company—while you are on a job
search. How did you discover it? It turns out that a friend of yours, who works in the industry, mentioned it
to you. This scenario illustrates the power of networking. Networks extend beyond traditional job search
methods and enable access to hidden job opportunities that may not be advertised publicly. By leveraging
your network, you can tap into a vast pool of information and connections that can significantly enhance
your career prospects. Moreover, networks facilitate the exchange of knowledge and resources, allowing
you to stay informed about industry trends, gain insights, and connect with individuals who can support
your career growth
Types of Networks:
To maximize your career prospects, it is essential to explore different types of networks. Personal networks
encompass friends, family, and acquaintances who can provide support, referrals, and connections. These
individuals may have insights into job openings, industry trends, or potential opportunities that they can
share with you. Professional networks, on the other hand, include alumni networks, industry associations,
and professional communities. These networks provide access to like-minded professionals and potential
mentors who can offer guidance, advice, and valuable connections. Online platforms, such as LinkedIn and
industry-specific forums, offer a virtual space to expand your network and engage with professionals
worldwide. These platforms can connect you with individuals who share similar interests and career
aspirations, irrespective of geographical boundarie s.
The Power of Networks:
Leveraging Social Capital:
Networking is not just about exchanging business cards and connecting on LinkedIn; it is about building
social capital. Social capital refers to the collective value of your professional relationships. By actively
engaging with others, you can enhance your professional reputation, increase visibility, and create
opportunities for career advancement. When you invest time and effort into cultivating relationships, you
build a strong foundation of social capital that can yield significant benefits throughout your career. For
136
example, attending a conference and striking up a conversation with a keynote speaker may lead to a
valuable mentorship or even consideration for future job openings within their organization. This example
demonstrates how networking can leverage your social capital to open doors and create opportunities that
may not have been otherwise available.
Building Trust and Credibility:
Trust and credibility are crucial elements in successful networking. Authenticity, reliability, and integrity
are key in establishing meaningful connections. When you consistently demonstrate these qualities, people
are more likely to trust you, recommend you for opportunities, and vouch for your skills and expertise.
Networking is not solely about what you can gain; it is about building mutually beneficial relationships
based on trust and credibility. By investing time and effort into building trust with your network, you create
a positive reputation that can lead to valuable opportunities, referrals, and partnerships.
Network Development:
Identifying Your Network:
To begin developing your network, take a moment to reflect on your existing connections. Who are the
individuals within your personal and professional circles who can support your career goals? These
individuals may include friends, family members, former colleagues, mentors, or industry experts. It is
important to recognize the value that each connection brings and identify how they can contribute to your
career development. Additionally, consider potential gaps in your network and explore ways to bridge those
gaps. Actively reach out to colleagues, mentors, and industry experts who can expand your network and
provide new perspectives and opportunities. Attend networking events, both in-person and virtual, to meet
professionals from various industries and build meaningful connections.
Crafting an Elevator Pitch:
Crafting an elevator pitch is a crucial networking tool that allows you to concisely introduce yourself and
convey your skills and aspirations. An elevator pitch is a brief, compelling summary of who you are, what
you do, and what you bring to the table. It should highlight your unique value proposition and align it with
the needs of your target industry or organization. Tailor your elevator pitch to different audiences and
contexts to make a memorable impression. By effectively communicating your strengths and goals, you can
capture the attention of potential employers, mentors, or collaborators, and create opportunities for
meaningful conversations and connections.
Networking Events and Conferences:
Networking events and conferences offer excellent opportunities to connect with professionals in your field
and expand your network. When attending such events, it is essential to be proactive in initiating
conversations and engaging with others. Approach individuals with a genuine interest in their work and
experiences, and ask open-ended questions to foster meaningful dialogue. Actively listen to others and show
curiosity and enthusiasm. Networking events provide a unique platform to establish new connections,
exchange ideas, and gain valuable insights. After the event, make an effort to follow up with your new
connections to solidify relationships. Send a personalized message or connect on professional platforms like
137
LinkedIn. Building on these initial interactions can lead to long-lasting professional relationships,
collaborations, or even job opportunities in the future.
Network Maintenance:
Relationship Nurturing:: Building a network is just the beginning; maintaining and nurturing relationships
is equally important. Regular communication is key to keeping your connections engaged and ensuring that
the relationship remains strong. Keep in touch with your network by sharing relevant industry news,
congratulating them on their achievements, or simply checking in to see how they're doing. Show genuine
interest in their professional journey and offer support whenever possible. By demonstrating your
commitment to the relationship, you strengthen your professional connections and build a network of
individuals who are invested in your success.
Providing Value:
Networking is a two-way street. To build strong and lasting connections, it is crucial to contribute value to
your network. Share your knowledge, insights, and resources with others. Offer assistance and advice when
someone seeks your expertise. By being a resource to others, you create a culture of reciprocity, where
individuals are more inclined to support you in return. Providing value to your network establishes you as
a trusted and reliable professional, strengthening the bond with your connections and increasing the
likelihood of mutually beneficial opportunities.
Leveraging Networks:
Informational Interviews:
Informational interviews are a powerful tool for gathering insights into specific industries, companies, or
job roles. Reach out to professionals you admire and request a brief conversation to learn from their
experiences. Informational interviews not only provide valuable knowledge and guidance but also expand
your network and potentially uncover hidden job opportunities. During these interviews, ask thoughtful
questions, actively listen, and express gratitude for the opportunity to learn from their expertise. Building
relationships through informational interviews can lead to mentorship, referrals, or even future
collaborations.
Online Networking:
The advent of online networking platforms has revolutionized the way professionals connect and engage
with each other. Platforms like LinkedIn, professional forums, and industry-specific communities offer
virtual spaces to expand your professional reach. Optimizing your online profile is essential to make a
positive impression and attract relevant connections. Engage with others by sharing relevant content,
participating in discussions, and offering thoughtful insights. Actively utilize networking features such as
LinkedIn groups or industry-specific forums to connect with professionals who share your interests and
career aspirations. Online networking enables you to build relationships with individuals from around the
world, breaking geographical barriers and expanding your network beyond traditional boundaries.
Mentorship and Sponsorship:
Seeking mentors and sponsors can significantly impact your career trajectory. A mentor provides guidance,
support, and valuable industry insights based on their experience and expertise. They can offer advice, help
138
navigate challenges, and provide an outside perspective to help you grow professionally. Sponsors, on the
other hand, actively advocate for your professional growth within their network. They use their influence
and connections to open doors to new opportunities and actively promote your achievements and potential.
Actively seek out mentors and sponsors who align with your career aspirations. Engage in meaningful
conversations and establish relationships based on mutual respect and shared goals. Their support and
connections can accelerate your career progress, provide valuable opportunities, and contribute to your
overall professional development
Interviewing for Information:
➔ Info Search Objectives: When conducting informational interviews, it's essential to define your
objectives. Are you seeking insights into a specific industry, gathering information about a particular
company, or exploring potential career paths? Clarify your goals beforehand to make the most out
of your informational interviews.
➔ Contact Sources: Identify potential sources for your informational interviews. Reach out to
professionals within your network or leverage online platforms to connect with individuals who
possess the knowledge and experience you seek. Alumni networks, professional associations, and
LinkedIn connections can serve as valuable sources for arranging informational interviews.
➔ Opening Doors: Informational interviews can open doors to new opportunities. Even if a contact
doesn't have an immediate job opening, they may introduce you to others in their network who can
provide valuable insights or connect you with potential job leads. Keep an open mind and be
receptive to unexpected opportunities that may arise from your informational interviews.
➔ Info Search Follow-Up: After an informational interview, it's crucial to follow up with a thank-you
note expressing your appreciation for their time and insights. Additionally, consider sending a
LinkedIn connection request to maintain the connection and continue the professional relationship.
Remember, nurturing these relationships can lead to future referrals or collaboration opportunities.
Career Action Projects:
Contact Network Project: To leverage your network effectively, consider embarking on a contact network
project. Identify key individuals within your network who can offer unique perspectives or potential job
leads. Set specific goals, such as reaching out to a certain number of contacts per week, scheduling
informational interviews, or seeking mentorship. Track your progress and actively engage with your
network to make the most of this project.
Info Search Project: Conducting an info search project can provide valuable insights into a specific
industry or job role. Define the research objectives, gather information from various sources, and analyze
the data to identify trends, challenges, and opportunities within your target area. Share your findings with
your network, participate in relevant industry discussions, and position yourself as a knowledgeable
resource in your field.
139
Collaboration and Professional Development Projects: Consider collaborating with professionals in your
network on projects that align with your career goals. Collaborative initiatives could include co-authoring
an article, organizing a webinar or workshop, or participating in a professional development program. These
projects not only deepen your connections but also enhance your skills, knowledge, and visibility within
your industry.
Conclusion:
Networking is a vital skill for enhancing employability and unlocking new career opportunities. By
understanding network concepts, recognizing the power of networks, actively developing and maintaining
connections, and effectively leveraging networks, you can build a robust professional support system.
Embrace networking as an integral part of your employability toolkit, and position yourself for success in
the ever-evolving job market. Remember, networking is not just about what you can gain, but also about
building meaningful relationships based on trust, credibility, and mutual support. Invest time and effort into
networking, and you will create a network that can propel your career to new heights.
140
Chapter 12:Mock Interviews
Introduction:
In today's highly competitive job market, interview performance plays a pivotal role in securing employment
opportunities. Job seekers often find themselves grappling with anxiety, uncertainty, and self-doubt when
facing real interviews. This is where mock interviews step in as an invaluable tool for preparation and skill
development. The purpose of this chapter is to guide you through the world of mock interviews and provide
you with the essential knowledge and strategies to excel in your next real interview. Mock interviews are
simulated practice sessions that mimic the structure and dynamics of actual interviews, offering a safe and
supportive environment to hone your interview skills.
Understanding Mock Interviews
Mock interviews are an essential component of interview preparation, providing a platform for candidates
to practice their interview skills, gain confidence, and refine their performance. This section aims to deepen
your understanding of mock interviews by exploring their importance and the different types available.
The Importance of Mock Interviews
Mock interviews serve as a crucial bridge between interview preparation and the real interview experience.
They offer a safe and supportive environment for candidates to familiarize themselves with the interview
process, improve their communication skills, and gain valuable feedback. Understanding the importance of
mock interviews can greatly enhance your interview preparation journey. By participating in mock
interviews, you will:
✔ Identify Strengths and Weaknesses: Mock interviews allow you to assess your strengths, such as
effective communication, problem-solving abilities, or leadership skills. They also help you identify
areas for improvement, such as nervousness, weak responses, or inadequate preparation.
✔ Practice and Refine Interview Techniques: Mock interviews provide an opportunity to practice and
refine various interview techniques, such as structuring responses, showcasing relevant experiences,
and demonstrating your fit for the role. Through repetition and feedback, you can enhance your
interview skills and increase your chances of success.
✔ Gain Familiarity with Common Interview Questions and Formats: Mock interviews expose you to a
wide range of interview questions commonly asked by employers. By encountering these questions
in a simulated setting, you can develop effective strategies for answering them and adapt to different
interview formats, including behavioral, situational, or case-based interviews.
✔ Build Confidence and Reduce Anxiety: Mock interviews help alleviate anxiety by familiarizing you
with the interview environment, process, and expectations. As you gain confidence through practice,
you will feel more comfortable articulating your qualifications, engaging with interviewers, and
presenting yourself as a strong candidate.
✔ Learn to Handle Difficult Interview Scenarios: Mock interviews allow you to anticipate and prepare
for challenging situations, such as behavioral probing, hypothetical scenarios, or unexpected
141
questions. By practicing how to navigate these scenarios, you can respond with composure and
demonstrate your ability to handle adversity.
Types of Mock Interviews
Mock interviews come in various forms, each offering unique advantages and opportunities for
improvement. Understanding the different types of mock interviews can help you select the most suitable
format for your needs.
✔ One-on-One Mock Interviews: In a one-on-one mock interview, you engage in a simulated interview
with an interviewer, usually a friend, mentor, or career counselor. This format closely mirrors a real
interview, allowing for personalized feedback and focused attention on your performance.
✔ Panel Mock Interviews: Panel mock interviews simulate the experience of facing multiple
interviewers simultaneously. This format helps you develop the skills necessary to engage with a
diverse panel, manage different personalities, and address multiple perspectives.
✔ Group Mock Interviews: Group mock interviews involve participating in a mock interview with
other candidates. This format encourages collaboration, enhances interpersonal skills, and provides
opportunities to observe and learn from others' performance.
Each type of mock interview offers its own advantages, and it may be beneficial to engage in multiple
formats to gain a well-rounded experience and perspective.
2: Preparing for a Mock Interview
Preparation is key to making the most out of a mock interview experience. This section will guide you
through the essential steps to ensure you are fully prepared before stepping into a mock interview scenario.
Setting Objectives
Before engaging in a mock interview, it's important to define your objectives and goals for the session. By
setting clear objectives, you can focus your efforts and maximize the benefits of the mock interview
experience. Consider the following when setting your objectives:
✔ Areas of Improvement: Reflect on your past interview experiences or self-assess your interview
skills. Identify specific areas where you feel you can improve, such as confidence, articulation, or
handling challenging questions. Setting objectives related to these areas will help you target your
efforts during the mock interview.
✔ Job-specific Skills: Tailor your objectives to the specific job or industry you are targeting. Research
the skills and qualities desired by employers in that field and align your objectives accordingly. For
example, if the role requires strong problem-solving abilities, focus on presenting your problemsolving skills during the mock interview.
✔ Personal Development: Consider your long-term career goals and how the mock interview can
contribute to your overall growth. Maybe you want to work on your leadership presence or enhance
142
your ability to communicate technical concepts to non-technical audiences. Set objectives that align
with your broader professional aspirations.
By setting objectives, you create a roadmap for improvement, allowing you to track your progress and
measure the effectiveness of the mock interview experience.
Researching the Position and Company
In a real interview, employers expect candidates to demonstrate knowledge and enthusiasm for the position
and company. The same applies to mock interviews. Conducting thorough research beforehand is essential
to simulate a realistic interview scenario and maximize the benefits of the practice session. Consider the
following research strategies:
✔ Position Requirements: Review the job description and understand the key responsibilities, skills,
and qualifications sought by the employer. Analyze how your background and experiences align
with these requirements, enabling you to present a compelling case during the mock interview.
✔ Company Culture and Values: Explore the company's website, social media platforms, and any
available news or articles to gain insights into its culture, values, mission, and vision. Understanding
the company's ethos will enable you to showcase your compatibility and genuine interest during the
mock interview.
✔ Recent Developments: Stay up to date with the latest news or industry trends relevant to the
company. Familiarize yourself with recent achievements, projects, or challenges the company has
faced. This knowledge will demonstrate your proactive approach and engagement with the industry.
By conducting thorough research, you will be equipped with the knowledge necessary to answer questions
effectively, showcase your fit for the position and company, and engage in meaningful conversations during
the mock interview.
Logistics of Mock Interviews
To create a realistic mock interview experience, attention should be given to the logistics of the session.
This includes scheduling, selecting interviewers, and creating a suitable interview environment. Consider
the following logistics:
✔ Scheduling: Set a specific time and date for the mock interview, ensuring you have sufficient time
for preparation and reflection afterward. Treat the mock interview as seriously as you would a real
interview, avoiding distractions and allocating dedicated time to focus.
✔ Selecting Interviewers: Depending on the availability of resources, you can choose a friend, family
member, mentor, or career counselor to act as the interviewer. Select someone who can provide
constructive feedback and simulate a professional interview setting.
143
✔ Interview Environment: Create a quiet and professional space where the mock interview can take
place. Remove distractions, dress appropriately, and gather the necessary materials, such as copies
of your resume, a notepad, and a pen.
Taking care of these logistical aspects will help simulate a realistic interview environment, allowing you to
immerse yourself fully in the mock interview experience.
Certainly! Here's an overview of "Section 3: Conducting a Mock Interview":
Section 3: Conducting a Mock Interview
Preparing for the Mock Interview
To make the mock interview experience as realistic as possible, it's important to prepare yourself both
mentally and physically. Consider the following steps:
✔ Dress Professionally: Dress as if you were attending a real interview. Wearing professional attire
will help create the right mindset and simulate a genuine interview environment.
✔ Review Your Research: Refresh your knowledge about the position and company by reviewing the
research you conducted earlier. This will ensure that you are well-prepared to discuss relevant topics
and demonstrate your interest.
✔ Manage Pre-Interview Nerves: It's natural to feel nervous before a mock interview, just as you would
before a real one. Employ relaxation techniques such as deep breathing or visualization exercises to
calm your nerves and boost your confidence.
Interviewer and Interviewee Roles
During a mock interview, it's important to understand and embrace the respective roles of the interviewer
and the interviewee. This will help create a dynamic and realistic practice environment.
✔ Interviewer Role: If someone is playing the role of the interviewer, they should adopt a professional
and objective stance. They should ask questions, evaluate your responses, and provide constructive
feedback based on your performance.
✔ Interviewee Role: As the interviewee, your role is to respond to the interviewer's questions and
showcase your qualifications, skills, and experiences. Take this opportunity to demonstrate your
confidence, communication skills, and ability to articulate your value to the organization. By
understanding and embracing these roles, you can effectively engage in the mock interview and
simulate a realistic interview dynamic.
3.3 Mock Interview Format and Questions
Mock interviews can simulate various interview formats, such as behavioral, situational, or case-based
interviews. It's important to be familiar with different formats and practice responding to a range of interview
questions.
144
✔ Behavioral Interviews: Behavioral interviews focus on past experiences to assess your skills and
behaviors. Practice formulating concise and structured responses using the STAR method (Situation,
Task, Action, Result) to highlight your accomplishments and problem-solving abilities.
✔ Situational Interviews: Situational interviews present hypothetical scenarios to gauge your approach
to challenging situations. Practice analyzing the scenario, identifying key considerations, and
providing thoughtful and well-reasoned responses.
✔ Case-based Interviews: Case-based interviews are common in fields such as consulting or finance.
They require you to analyze and solve a business problem. Familiarize yourself with case interview
frameworks and practice structuring your analysis and communicating your recommendations
effectively.
Prepare for the mock interview by researching common interview questions and developing thoughtful
responses that align with your objectives and the specific interview format.
Evaluation and Feedback
One of the most valuable aspects of a mock interview is the feedback and evaluation you receive. Feedback
provides insights into your strengths and areas for improvement, allowing you to refine your interview skills.
✔ Constructive Feedback: Actively listen to the feedback provided by the interviewer and be open to
constructive criticism. Take notes and ask for clarification if needed. Remember, feedback is meant
to help you grow and improve.
✔ Self-Evaluation: Reflect on your performance after the mock interview. Identify areas where you
excelled and areas that need improvement. Be honest with yourself and use this self-evaluation to
set goals for future practice.
Essential Q&A at Interviews:
Here are 15 frequently asked questions that often come up in interviews:
1. Can you tell me about yourself?
2. What interests you about this position/company?
3. How would you describe your strengths and weaknesses?
4. Can you provide an example of a challenging situation you faced at work and how you handled it?
5. How do you handle stress and pressure?
6. Tell me about a time when you had to work effectively in a team.
7. What are your short-term and long-term career goals?
8. How do you prioritize tasks and manage your time effectively?
9. Describe a situation where you demonstrated leadership skills.
10. How do you handle constructive feedback and criticism?
11. Why do you believe you are the best fit for this role?
145
12. Can you give an example of a time when you had to resolve a conflict with a coworker or team
member?
13. How do you stay updated with industry trends and developments?
14. What motivates you in a professional setting?
15. Do you have any questions for us?
These questions provide a starting point for interview preparation. It's important to tailor your responses to
your unique experiences and qualifications, ensuring they align with the specific position and company
you're interviewing for.