Executive summary Essay Example | Topics and Well Written Essays - 500 words - 1

Executive summary - Essay Example However, he did not provide concrete assurance of the accounting tactic. This puts the financial position of pension companies at stake. In addition, this is controversial since the move could undermine governments efforts to support, by placing against something solid or rigid, the pension system. As a result, workers worry on the strain the tactic will put on other government agencies designed to protect the retirement of workers. The policy make companies pile up pension bills. In the end, companies struggle to keep up with the mounting bills. It therefore, becomes hard for them to compensate their clients ending up losing customer trust. They become insolvent and unable to meet their obligations to retirees down the road (Monga, 2). Decline in interest rates increases the present value of the deferred pensions. This increases corporate pension deficit since the monetary value of money decreases with time. This is clearly confirmed by Millan who asserts that the largest pensions in U.S have accrued up to $252 billion funding deficiency, which has shot up by $66 billion within a period of one year. Furthermore, Pension Benefit Guaranty Corporation encounters significant financial challenges. It is funded by premiums paid by pension plans that depend on how many beneficiaries are in a plan. However, those premiums are not enough to cover the costs. When the trust funds are finished, the most likely solution will be a transfer from general revenues, meaning that taxpayers will incur the bill (Monga, 2). Financial management and accountancy for a company is fundamental. With the implementation of the policy, corporations are compelled to channel their cash to activities they had not planned for. For instance, International Paper Company had set aside $ 1 billion to fund its $12.5 billion plan. With this policy, the money had to be put to other investments and projects not

Knowledge Management Coursework Example | Topics and Well Written Essays - 3000 words

Knowledge Management - Coursework Example Knowledge management is highly reliant on people. The staff, the employees all carry knowledge about the company and they are the ones that carry out knowledge management. At the end of the day information technology does play a great part but the human factor is way bigger and way more necessary. Information technology will help in developing a knowledge management system and the success will depend on how well the information is organized and stored. The information however comes from the human beings. It is important for them to be encouraged by the organization. There should be a very caring, social and interactive organizational culture for knowledge management to thrive. Often companies used to restrict access to information; often employees would not bother sharing information with others with regards to their own personal promotion or job safety. But now organizations have modernized, they take concrete steps to make sure that the culture is more open, more relaxed and everyo ne is more at ease. Knowledge sharing only takes place when the culture is open to it, people are at enough ease to open their minds up and share their knowledge with superiors and inferiors both. Knowledge rather than capital or labour is the only meaningful resource a company has according to Drucker(1993). Capital and labour are actually pretty volatile resources when you think about it. They provide you with stability but there is no guarantee that they won’t leave you. Capital can be lost when faced with a crisis, employees leave and all of them don’t stay for a long time but knowledge is one factor that is constant. It can be stored in repositories for ages; it can be further analyzed and disseminated. Every human process result is a key success factor which should be stored. All the developed economies are now moving from industrial to knowledge based economy as they realize the importance. Defined broadly â€Å"KM is the process through which organizations ext ract value from their intellectual assets† (Kaplan, 2002). Intellectual assets in this case are their employees and managers not the information technology systems that a company has. Employees spend a lot of time in a company; they learn the inputs, processes, outputs. The experience they gain is extremely valuable though intangible. This true information has to be stored somewhere; an employee can leave anytime and can take the expertise to another organization. Knowledge management is made in two dimensions. One is to manage the existing knowledge by creating repositories, knowledge compilation, arrangement and categorization. The second is the activities of knowledge acquisition, creation, distribution and application. (Stenmark, 2001) Knowledge management also consists of administering the knowledge assets of the organization which is the human resource. Knowledge modelling is a process that helps in achieving those goals. Knowledge management includes identifying and map ping knowledge within the organization. The end objective is to generate enough amount of knowledge that the business can gain competitive advantage. Knowledge management also observes the whole lifecycle of an organization, from the beginning to the possible end. It sees how the organization has changed over time, how it has adapted to the external environmental challenges and how it became successful (Mathi, 2004).