Price-earnings Ratio


Price-earnings ratios are published daily in newspapers for stock market-listed companies, along with the gross dividend yield, dividend cover and other information about the shares of each company. The method of calculation is what the name suggests:

Price-earnings ratio = stockmarket share price divided byEarnings per share

The stockmarket share price used is the one published in the financial newspapers at the close of business in the stock exchange for the previous evening.

As a generalization, when the price earnings ratio of a company is higher than the average for other companies in the same business sector, the stockmarket expects the company to achieve higher than average earnings per share in the foreseeable future to justify the above-average valuation of the shares.

In certain circumstances, the explanation may be quite different. For example, a takeover bid for the company may be widely expected, and the share price has already increased significantly in anticipation of the price to be offered by the bidder.

It must never be forgotten than the analysis of share prices, and especially the prediction of future changes, cannot be done simply by calculating the various ratios. If this was possible, making a fortune on the stockmarket would be easy. In practice, even the most experienced investment-fund managers would make costly errors of judgment from time to time.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight

Revisiting Leadership


Human beings are designed for learning. Unfortunately, the primary institutions of a society are oriented predominantly toward controlling rather than learning, rewarding individuals for performing for others rather than for cultivating their natural curiosity and impulse to learn. The young child entering school discovers quickly that the name of the game is getting the right answer and avoiding mistakes—a mandate no less compelling to the aspiring managers.

 

Our prevailing system of management has destroyed our people. People are born with intrinsic motivation, self-esteem, dignity, curiosity to learn, joy in learning. The forces of destruction begin with toddlers—grades in school, gold stars, and on up through the university. On the job, people, teams, divisions are ranked—reward for the one at the top, punishment at the bottom. Incentive pay, business plans, put together separately, division by division, cause further loss, unknown and unknowable.

 

Ironically, by focusing on performing for someone else’s approval, corporations create the very conditions that predestine them to mediocre performance. Over the long run, superior performance depends on superior learning. A full one-third of the Fortune 500 industrials listed in 1970 had vanished by 1983.

 

Today, the average lifetime of the largest industrial enterprises is probably less than half the average lifetime of a person in an industrial society. On the other hand, a small number of companies that survived for seventy-five years or longer. Interestingly, the key to their survival is the ability to run experiments in the margin to continually explore new business and organizational opportunities that create potential new sources of growth.

 

If anything, the need for understanding how organizations learn and accelerating that learning is greater today than ever before. In an increasingly dynamic, interdependent, and unpredictable world, it is simply no longer possible for anyone to figure it all out at the top. The old model, the top thinks and the local acts, must now give way to integrating thinking and acting at all levels.

 

While the challenge is great, so is the potential payoff. The person who figures out how to harness the collective genius of the people in his/her organization is going to blow the competition way.

 

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight

Plagiarism and Copyright Violation


Plagiarism and copyright violation are complicated issues, especially in modern technical writing.

Plagiarism is the practice of using someone else’s words or ideas without crediting the source. Many organizations treat authorship of internal documents, such as memos and most reports, casually; that is, if the organization asks you to update an internal procedures manual, it expects you to use any material from the existing manual, even if you cannot determine the original author.

Organizations tend to treat the authorship of published documents, such as external manuals or journal articles, more seriously. Although the authors of some kinds of published technical documents are not listed, many documents such as user’s guides do acknowledge their authors. However, what constitutes authorship can be a complicated question, because most large technical documents are produced collaboratively, with several persons contributing text, another doing the graphics, still another reviewing for technical accuracy, and finally someone reviewing for legal concerns. Problems are compounded when a document goes into revision, and parts of original text or graphics are combined with new material.

The best way to determine authorship is to discuss it openly with everyone who contributed to the document. Some persons might deserve to be listed as authors; others, only credited in an acknowledgment section. To prevent changes of plagiarism, the wisest course is to be very conservative: if there is any question about whether to cite a source, cite it.

A related problem involves copyright violation. Copyright law provides legal protection to the author of any document, whether it be published or unpublished, and whether the author be an individual or a corporation. Unfortunately, some companies will take whole sections of another company’s product information or manual, make cosmetic changes, and publish it themselves. This, of course is stealing.

But the difference between stealing and learning from your competitors can be subtle. Words are protected by copyright, but ideas aren’t. Rare is the manufacturer who doesn’t study the competitor’s users’ guides to see how a feature or task is described. Inevitably, a good idea spreads from one document to another, and then to another. If one manual contains a particularly useful kind of troubleshooting guide, pretty soon a lot of others will contain similar ones. Even though this process of imitation tends to produce a dull uniformity, it can improve the overall quality of the document. Under no circumstances, however, should you violate copyright by using another organization’s words.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please contact www.asifjmir.com, Line of Sight