Contracts between Employers and Employees


If an employee has contract to be employed for a certain firm for a specified period of time, and the employer breaches the contract by dismissing the employee, damages recoverable would generally be the unpaid salary at the time of dismissal. Some courts allow the employee to collect wages up to the period of time at which a new job is found, as long as the employee “mitigates damages” by actively seeking employment. On the other hand, if the employee walks out without cause, then the employer may recover the cost of replacing the employee. This would include any additional salary that must be paid to the new employee which is greater than the previous employee’s salary.

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, and my Lectures.

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Foreign Licensing


The method of going global through the use of contractual agreements is foreign licensing. Such an agreement grants foreign marketers the right to distribute a firm’s merchandise or use its trademark, patent, or process in a specified geographic area. These arrangements usually set certain time limits, after which agreements are revised or renewed.

Licensing offers several advantages over exporting, including access to local partners’ marketing information and distribution channels and protection from various legal barriers. Because licensing does not require capital outlays, many firms, both small and large, regard it as attractive entry strategy. Like franchising, licensing allows a firm to quickly enter a foreign market with a known product or concept. The arrangement also may provide entry into a market, which government restrictions close to imports or international direct investment.

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, and my Lectures.

Benefits of Using Teams


Teams are coherent groups of people with complementary skills who work together towards a specified goal. Teams are often the most efficient way of working, and their benefits include:

  1. The members achieving more by working together than they would by working separately or in large, unstructured groups;
  2. Improved motivation and effort;
  3. Flexibility to deal more effectively with change;
  4. More imaginative solutions to new problems; fewer mistakes, as faults are spotted by other members;
  5. Fair division of work, resources and rewards.

Nelson Mandela asked, ‘How can one individual solve the problems of the world? Problems can only be solved if one is part of a team.’ Notice that there is a difference between a team and a group of people who are simply working together. A team is a cohesive set of people who are motivated to achieve common goals. Simply collecting different people does not give a team, as they don’t trust each other, bring along internal politics, don’t share common goals and so on. Twenty people in a room don’t make a team. Team doesn’t just happen. They have to be developed, facilitated and motivated.

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, and my Lectures.

 

Franchises


A franchise is a contract arrangement by which the owner of a trade name, trademark, copyright, or process grants permission to others to use this property in selling goods or services under specified conditions.

The purchaser of a franchise (franchisee) obtains the advantage of offering a well-known or unusual product that may already have wide appeal. The franchisee  also receives the benefit of mass buying and advertising. Typically, the buyer of a franchise may pay a flat fee for the franchise as well as an additional percentage based on sales. The franchisee may also be required to pay a fractional share of the franchisor’s promotional costs and to purchase certain supplies from the franchisor.

Contract and sales laws pertaining to franchises are comparatively new. If the franchise involves the resale of goods or food, both the franchisor and franchisee will usually be liable under a breach of warranty if the food or other merchandize is not wholesome or proper from the consumer’s standpoint. However, tort liability to a third person is usually the responsibility of the franchisee alone. In a case where the franchisee’s truck struck  and negligently injured a pedestrian , the franchisor would normally have no responsibility.

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, and my Lectures.

 

Termination of Agency Agreement


  1. Termination by expiration of the specified period in which the agent has to act. The courts say that the agency was for a “reasonable” time if no specific duration was stated in the agency agreement. The meaning of “reasonable time” is construed by the courts on a case-by-case basis, depending on the nature of the agency, the difficulty of accomplishment, and other controlling factors.
  2. Termination by specific agreement to do so between the principal and the agent.
  3. Termination by death or legal incapacity (insanity and so on) of either the principal or the agent. Most courts also hold that bankruptcy of either the principal or the agent terminates the relationship. However, the agent may still dispose of the principal’s property that is being held at the time of the bankruptcy.
  4. Termination through revocation by the principal. The agency contract is one that the principal is allowed to end at any time without giving any reason.
  5. Termination by withdrawal of the agent. This may be done at any time in an agency at will. If the agent is operating under a contract for a specified time of service or until a certain event is accomplished, the agent will be liable of damages to a principal who was not at fault in bringing about the termination.
  6. Termination by loss or destruction of the subject matter or by change of circumstances. The agent’s authority is lost if the subject matter is seriously disabled, lost, or destroyed.
  7. Termination by rescission. The general rules of law concerning rescission apply to agency contract.

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, and my Lectures.

 

Implementing the Sales Program


As with any kind of management, implementing a sales program involves motivating and directing the behavior of other people—the members of the sales force. To be effective, the sales manager must understand why the people in his or her sales force behave the way they do. Then policies and procedures can be designed to direct their behavior toward the desired objectives.

The model of the activities involved in implementing a sales program suggests that five factors influence a sales rep’s job behavior and performance:

  1. Environmental variables: Regardless of how highly motivated or competent salespeople are, their ability to achieve a particular level of job performance is influenced—and sometimes constrained—by environmental factors. The ability to reach a given sales volume, for instance, can be affected by such things as the market demand for the product being sold, the number and aggressiveness of competitors, and the health of the economy. Similarly other elements of a firm’s marketing mix, such as the quality of its products and the effectiveness of its advertising, can affect a salesperson’s ability to reach a high level of sales performance.
  2. Role perceptions: To perform adequately, a salesperson must understand what the job entails and how it is supposed to be performed. The activities and behaviors associated with a particular job are defined largely by the expectations and demands of other people, both inside and outside the organization. Thus, a salesperson’s job (or role) is defined by the expectations and desires of the customers, sales manager, other company executives, and family members. The salesperson’s ability to do the job well is partly determined by how clearly the sales rep understands those role expectations. Also, the salesperson may sometimes face conflicting demands, as when customer wants a lower price but company management refuses to negotiate. The salesperson’s ability to resolve such conflicts helps determine success or failure on the job.
  3. Aptitude: A salesperson’s ability to perform the activities of the job is also influenced by the individual’s personal characteristics, such as personality traits, intelligence, and analytical ability. No matter how hard they try, some people are never successful at selling because they do not have the aptitude for the job. Of course, different kinds of sales jobs involve different tasks and activities, so a person with certain characteristics may be unsuited for one selling job but tremendously successful at another one.
  4. Skill levels: Evan when salespeople have the aptitude to do their jobs and an understanding of what they are expected to do, they must have the skills necessary to carry out the required tasks.
  5. Motivation level: A salesperson cannot achieve a high level of job performance unless motivated to expend the necessary effort. A person’s motivation is determined by the kind of rewards expected for achieving a given level of performance and by the perceived attractiveness of those anticipated rewards.

A sales manager can use several policies and procedures to influence the aptitude, skill levels, role perceptions, and motivation of the sales force. Implementing a sales program involves designing those policies and procedures so that the job behavior and performance of each salesperson are shaped and directed toward the specified objectives and performance levels.

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, Lectures, Line of Sight

Forward Contracts


Forward contracts are similar to futures contracts in that they are agreements to buy and sell an asset at a certain time in the future for a certain price. However, unlike futures contracts, they are not traded on an exchange. They are private agreements between two financial institutions or between a financial institution and one of its corporate clients.

 One of the parties to a forward contract assumes a long position and agrees to buy assets at a certain specified date for a certain price. The other party assumes a short position and agrees to sell the asset on the same date for the same price. Forward contracts do not have to conform to the standards of a particular exchange. The delivery date in the contract can be any date mutually convenient to the two parties. Usually, in forward contracts, a single delivery date is specified, whereas in futures contract, there is a range of possible delivery dates.

 Forward contracts are not marked to market daily like futures contracts. The two parties contract to settle up on the specified delivery date. Whereas most futures contracts are closed out prior to delivery, most forward contracts do lead to delivery of the physical asset or to final settlement in cash

 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

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