Monthly Archives: June 2014

Transformational Leadership style of James MacGregor Burns

James BurnsEffective leaders do not steer his team from the “outside”. They join a team and motivate people to set goals and directives that can be used by people to identify correctly. The purpose of the company into a common goal and taking ownership of their work.

James MacGregor Burns leadership expert introduces the concept of transformational leadership. He compared this with the kind of leadership Transactional leadership, in which leaders are basically “bargain” with the people he led, exchanging something of value to something else – give money to people in exchange for their work is a glaring example on the transaction.

Transformational leadership is different. According to Burns, this occurs when one or more people engage with others in such a way that leaders and followers mutually encourage one another to higher levels of motivation. This type of leadership is a ‘transformation’, not an ‘exchange’. The same process in which leaders and followers involved as part of the same effort. People were pushing and supporting each other. They are involved in the objectives of the company and claim ownership of their work. The transformational leader must lead by example to give. They should be able to win the trust, admiration, loyalty and respect from colleagues.

Jarvis Snook, CEO of the UK building group Rok, recalled his experience as a manager of a job in a local building company early in his career. He talked about labor: “They are paid a minimum wage that can be paid by the company and no one asked them about how their views and opinions. The main reason for them to come to the workplace is to chat with friends. I talked to them about customer service. ‘If Mrs Jones wanted the bedroom behind decorated in time for Christmas then keep it there for an hour in the evening and we will pay you overtime. “The company has never done this before. It requires quite a difficult process. Labor is just a tool. Performance is improved and Snook was appointed as a member of the board of directors of the company. “

“It takes a long time for me to reach the goal of all my efforts, but I have changed the perception of the employees about themselves. They have become a valuable part of the company, not the instrument. They are becoming more enthusiastic about work.”

Leaders work as part of a team. They motivate and inspire his men as part of a group effort. Transformational leadership requires personal characteristics that can give a good impression. The successful leader must earn the trust, admiration, loyalty and respect of his colleagues. Successful transformation begins with the support itself. Colleagues encourage each other. The leaders themselves afterwards motivated and supported by his team. People feel they have a job and be rewarded personally if the company achieve success.

Five Steps to Achieve Dreams

finance tipsAt the beginning of this year, you may already have plans to do the things you want to do or have plans to own a home or other assets. To be able to realize your wish, the one that you have to do is the need to manage your finances well so that your plan can be realized.

Your plan may be the same this year with your plan in the last year. But due to lack of planning until the end of the plan live plan. The ideals you to have savings, pay off debt, own a home or a vehicle has not been achieved. You can not realize your plans. So, do not let this year pass without any valuable thing you can get.

Manage finances requires discipline on your part. Do the following things to manage your money.

1. save

Prioritize to save. For some people this is quite difficult because they feel they lack the income to cover daily needs so that it seems impossible to save. However, in managing finances, this is the main thing that must be done. The trick is to immediately save money after payday. You can store it in a bank or in a safe enough. Set aside some of the money will help to reduce the desire to spend it.

The amount of money saved, at least 5% of earnings. Immediately set aside this section. You can also follow the existing programs in the bank every month which will be debited the amount of money or you are required to deposit it.

2. Budget

Budget noted how the revenue is used. Creating a budget will help to monitor, control and even reduce your expenses. By knowing anywhere or spend any income, you will be helped to achieve your financial goals.

In order to achieve your financial goals, then do not let your expenditure is greater than income or unbalanced budgeting. Distinguish between needs and wants. Often, we spend is the things we want though not necessarily the things that we really need. Remember, that there are financial goals you want to achieve.

3. Plan

It is important that you make a plan. For example, as we have planned to have a house or apartment. If you do not have the money to buy it, it can be in installments. Just make sure your calculations correctly so that you do not have unnecessary debt.

It’s also good if the backbone to take insurance plan that can protect a family that in case of a bad thing does not really affect the finances. Parents can also plan for the pension fund in order not to burden their children later.

4. Investment

Choosing the right investments can increase the coffers of your savings. Before you start investing, you should first learn about investing is that you better understand and not be deceived. We recommend that you choose a safe investment with additional rational. Do not get tempted by interest or the result of excessive investment.

5. Balanced

Do not sacrifice your physical health or emotional family merely wanted to accumulate wealth. If sick or there is a problem in the family, there will be no inner peace held. As a result, the mind becomes confused and there may be a lot of money spent to solve this problem.

These five steps will help you achieve your financial goals and make the results of your hard work is not in vain. Helping you own property as the fruit of the hard work that can be enjoyed. Life is uncertain. So, while you still have the opportunity to set aside your income, do it so as not to regret in the future.

Know Your Cash Flow

financial managementThe term cash flow has been too often heard in every conversation that is business oriented. Start of those roadside businesses, retail trade, business hawkers until they were driven from the building skyscrapers flashy always talk about cash flow. Whatever the business, cash flow key. So, what is called the cash flow?

Cash flows arguably fancy term in the business world. Whatever type of business, you may not be separated from cash flow problems.

Once you start talking about business, it is almost impossible not to talk cash flow. He is very strategic, play a vital role in the activities or operations of the company. Even in households even though the individual level, a cash flow problem does not escape from the subject of conversation.

At the individual level, for example. When the calendar is already showing the old date, a lot of people who complain pocket thin, tight, drag, or a variety of other terms that describe how the money is held in the hand’ve lived a little, while spending to meet the needs can not be stopped.

People who like this have problems in managing personal cash flow or its cash flows. Clever people manage cash flow she always count when the money should come out and what the expenses are incurred.

If need be postponed, so he does not need to spend money to buy the current needs. By doing so, its cash flow is always maintained and the main needs can be met.

Addition of expenditure is only done if there is additional income, so between spending and revenue is always maintained in a stable condition or healthy.

Well, about the pattern of financial management as well and it certainly applied in households, firms, or organizations that pay attention to continuity or sustainability. For companies, let alone that has the status of a public company, cash flow is very important.

Once the importance of cash flow, a businessman likened the cash flow is king in the company, not the CEO or board of directors or board of Commissioners. The reason is simple, cash flow was the one who determined the course of the company, life and death of the company, not the CEO, directors and commissioners.

If there is no cash flow, directors will not be able to do anything. Smart as any CEO or board of directors, and any sophisticated planning and expansion will be done, if it is not supported by healthy cash flow then all that means nothing.

Therefore, in connection with the 2010 publication of the issuer’s financial statements ended 31 March, should concern investors or market participants do not just drawn to the classic problems such as balance sheet and income statement.

Two things that are important in the financial statements, but it is also very important to note is the problem of a cash flow statement. Cash flow is the part that should not be missed.

Why? A frequent mistake is the belief or assumption that if the revenue and profit rose or rose nice, firm performance also shines. Such an assumption is sometimes like trap of thinking a lot of people.

Therefore, the increase in revenue and profit does not necessarily indicate a good cash flow conditions. There is a company in terms of balance sheet and income statement good, it turns out its cash flow sag, dry.

Cash flow for a company is like energy. The smaller the stored energy means that the limited mobility of the company. Furthermore you can imagine, what can be done by a company whose energy is limited? Want to capital expenditure can not, and it would also not be able to.

If the cash flow condition is not managed properly, a company like this has had its day. Well, you certainly do not want to buy shares of companies like this do not you? Therefore in the analysis of financial statements, do not forget to consider the company’s cash flow.