Premium Essay

Organizational Management

In:

Submitted By yekbarmasraf
Words 6653
Pages 27
Chapter 5

The Financial Environment: Markets, Institutions, and Interest Rates ANSWERS TO END-OF-CHAPTER QUESTIONS

5-1 a. A money market is a financial market for debt securities with maturities of less than one year (short-term). The New York money market is the world’s largest. Capital markets are the financial markets for long-term debt and corporate stocks. The New York Stock Exchange is an example of a capital market.

b. Primary markets are the markets in which newly issued securities are sold for the first time. Secondary markets are where securities are resold after initial issue in the primary market. The New York Stock Exchange is a secondary market.

c. In private markets, transactions are worked out directly between two parties and structured in any manner that appeals to them. Bank loans and private placements of debt with insurance companies are examples of private market transactions. In public markets, standardized contracts are traded on organized exchanges. Securities that are issued in public markets, such as common stock and corporate bonds, are ultimately held by a large number of individuals. Private market securities are more tailor-made but less liquid, whereas public market securities are more liquid but subject to greater standardization.

d. Derivatives are claims whose value depends on what happens to the value of some other asset. Futures and options are two important types of derivatives, and their values depend on what happens to the prices of other assets, say IBM stock, Japanese yen, or pork bellies. Therefore, the value of a derivative security is derived from the value of an underlying real asset.

e. An investment banker is a middleman between businesses and savers. Investment banking houses assist in the design of corporate securities and then sell them to savers

Similar Documents

Premium Essay

Organizational Management

...evaluating and producing goals utilizing human resources. The goal of any organization is to increase profitability, increase growth and innovation and introduce new values and culture into the organization. In order for an organization to remain competitive it must have maximum quality, minimum cost and maintain peak performance. The importance of organizational behavior theory and practice has become more important today than in previous years because of rapidly changing and competitive global economy. In order to understand the importance of organizational behavior, we must first define exactly what organizational behavior is and what it covers. The study of people within business is defined as organizational behavior. Organizational behavior is the influences that affect people, decision-making, empowerment, ethics, environmental and social issues, diversity and commitment. Organizational behavior is the study and application of knowledge about how individuals and groups act in organizations. Its purpose is to build better relationships by achieving human, organizational and social objectives. The effects of organizational behavior are complex because of combination of four concepts anthropology, sociology, psychology, and political...

Words: 1804 - Pages: 8

Premium Essay

Organizational Management

...Organizational Management Introduction The amalgamation of the organization is the characteristic that engages the arrangement of the innovative revival systems of the businesses that are integrating into a component with such recently collective scheme of procedures. This procedure of unification of two or extra companies to figure a solitary component of the companies engages an amount of organizational arrangements, which comprise populace, possessions and responsibilities. (L Heracleous, 2001) The procedure of joining all of these schemes is regarded as incorporation. Incorporation is a feature that suits inside the sequence of a business or precise business amalgamation and acquirement sequence wherein ventures buy assimilate and ultimately wind up of the other businesses. One major point that should never be forgotten is to acquire various business concerning papers of the company with whom it desires to amalgamate. Position of Bill Bailey’s on the Merger The chairperson the Utah Opera Organization may well apply the MEI hypothesis relating to the organizing consolidation: Avoiding Merger-Encouraged-Individualism to hold up the unification. According to this hypothesis, unification and acquirement offer businesses with attractive prospects for the market allocation and enhancements, economies of scope through vertical integration as well as technological advancement. (L Heracleous, 2001) This progress also offers workforce with increase and remuneration, which comprise...

Words: 1553 - Pages: 7

Premium Essay

Organizational Management

...Introduction Organizations with an American foundation have placed their time and money in identifying weaknesses and trying to address such weaknesses. It is the belief that by fixing a person’s weakness, that person will begin to perform at an above average level, but this is far from being true (Clifton & Nelson, 1992). In the first two chapters of the book Soar With Your Strengths by Donald Clifton and Paula Nelson (1992), we learn that shifting focus to increasing strengths versus trying to fix weakness is more productive and efficient than the alternate. Important Concepts Concepts Applied to Organizational Management and Leadership: A Christian Perspective Strategies for Implementing the Concepts within an Organization In the first two chapters of the book Soar With Your Strengths by Donald Clifton and Paula Nelson, we learn that shifting focus to increasing strengths versus trying to fix weakness is more productive and efficient than the alternate. The strengths theory does not ignore weaknesses however, it explains that little can be profited by studying what went wrong or is being done incorrectly. 3 Important Concepts Strengths can over shadow the weakness. Essentially if an individual were to diligently hone the skills that they possess and essentially master the strength, it will make the weakness less vulnerable. Understanding your own key strengths is important. To manage yourself effectively, you want to maximize your strengths and minimize your...

Words: 2887 - Pages: 12

Premium Essay

Management and Organizational Behavior

...International Jason C. Christenson MGT 501, Management and Organizational Behavior Module #1, Case Assignment Doing Business Abroad Doctor Ken Myers April 11, 2005 INTRODUCTION: PURPOSE: The purpose of this paper is to answer the assigned questions within this module. By answering these questions, I will gain a better understanding of the important aspects surrounding conducting business abroad. BACKGROUND: This is the first case assignment for MGT501, Management and Organizational Behavior during the spring semester at Touro University International. COVERAGE: I will use background information, combined with outside research to strengthen this paper. I will begin by identifying at least three specific ways that cultural differences would affect doing business internationally. Next, I will discuss some specific skills that global managers need to address the cultural differences. I will then discuss my views regarding expatriate and foreign-national managers by stating the reasons why a combination of managers is the most effective way to deal with these challenges. Finally, I will conclude with a brief summary that highlights the key points made throughout the paper. DISCUSSION: Many foreign markets are considered an untapped resource. The potential for growth in these markets is very high; however the potential can not be fulfilled without strong human resource applications, effective organizational structure, and efficient cultural understanding...

Words: 1595 - Pages: 7

Premium Essay

Organizational Management

...Classical/Scientific management 1 - Classical management theory stipulates that organizations are closed systems that are static and never changing and are unaffected by the outside world. It is concerned with the management of tasks rather than the organization. 2 – Organizations are rational entities where employees work to achieve a common objective. Follow a horizontal structure. Employees do not have monopoly over the tasks knowledge and know how. They are told what to do when to do it and how to do it. 3 - Employees only motivation is to earn money. They tend to use their skills as a bargaining chip for a better wage. For this reasons organizations design jobs in a way to reduce skill levels and minimize employee discretion over activities as well as increase levels of management control. Frederic Taylor incorporated the following ideas in his management theory. 1 – Create work standards and procedures to enhance productivity. 2 – Remove workers discretion and control over their activities. 3 – A systematic collection of knowledge about work processes by managers. A good contemporary example of a scientific management is the fast food chains such as mc donalds or burger king. McDonaldisation is the process where all communicative interactions and personalized relations are replaced by bureaucratized service delivery techniques. Administrative Management. Administrative management was developed by Henri Fayol. It is concerned with the management of the organization...

Words: 799 - Pages: 4

Premium Essay

Organizational Management

...Organizational Performance Management Varilie L. Williams-Garner September 17, 2012 HCS/451 Health Quality Management and Outcomes Analysis Jodie Sapaugh Health care as an industry exists to serve its stakeholders in the safest, most effective and efficient manner; but each organization type and company function differently. Organizations share some similar functionalities and regulatory requirements that provide a path for them to follow. The regulatory requirements demand compliance and a standard performance level creating a need for specialized monitoring and accreditation to support quality improvement on numerous levels. Communication is a key component of the process an organization has adopted to maintain compliance, meet standards and regulatory requirements, and maintain the company’s vision and mission. The process commands the role of risk-management to supervise safety functions and quality-management to supervise the stakeholder satisfaction with the services provided in all aspects. Differences and similarities in functionality for each organization or company runs parallel in the goal of safety and satisfaction through monitoring, improving, and communicating to meet regulatory and compliance requirement standards. Similarities and Differences These organizations share many similarities and yet there are differences amongst the five types of organizations chosen; hospitals, emergency services, assisted daily living, home health care, and...

Words: 3228 - Pages: 13

Premium Essay

Management Organizational Behavior

...Management Organizational Behavior Prof. Agatep Hope Individual Assignment HE YUTIAN (Stephen) Content Page Page1----------Introduction of Apple Page2--------- Organizational culture, design, structure Page3--------- Management of conflict and motivation of employees & Conclusion Page4------- Recommendation& Referencing List If there is a survey about which business you believe is the most valuable and has most revolutionary influence on the society last ten years, it must be true that most of the people will choose Apple. From some professional evaluation about Apple, it describes Apple as an enterprise which has ability to take over the world one bite at a time and is already doing it. As of July 2011, Apple is the largest publicly traded company in the world by market capitalization with 357 retail stores in ten countries and 60,400 permanent full-time employees and 2,900 temporary full-time employees around the world. (Profile: Apple Inc, n.d.)At the same time, its revenue and profit is more than Google and Microsoft combined, and its annual revenue is totaled $65 billion in 2010 and is growing to $108 billion in 2011 miraculously. (Harry Wilson, 2012) Apple not only is one of the most successful enterprises in the world nowadays, but also already is a creative, miraculous and revolutionary company which is founded by Steve Jobs, Steve Wozniak and Ronald Wayne on April 1, 1976 during its starting stage. (Cyrus Farivar...

Words: 2404 - Pages: 10

Premium Essay

Organizational Structure & Management

...1) Given the business situation for Spectrum Brand p. 251, explain how the firm might organize using a Matrix structure for the organization. Matrix structures consist of cross-functional project management teams that are formed to solve problems related to growth, diversification, productivity, and competition. The structure calls for temporary collaboration amongst experts from various functional areas in order to provide flexibility, creativity, cooperation, and fast responses to concerning changes in the market (Ferrell, 2009). Spectrum Brands may use a matrix structure to leverage the success that others have experienced in the food transportation, aerospace, and extractives industries. In food transportation, businesses like Tree of Life have used this structure in supply chain to ensure that vice presidents of inventory management, transportation, and warehousing, individually partner with procurement specialists of different product lines to ensure maximum throughput from distribution centers (Casper, 2009). In aerospace and global extractive businesses like oil, gas, and mining, Matrix structures have been used to integrate dissimilar international business segments under a common goal by mobilizing highly skilled executive teams with global functional roles (Millar, 2008). Spectrum Brand relates to these industries in its mission to diversify the portfolio, requiring a myriad of vendors and a sophisticated supply chain in an international marketplace. 2) Explain...

Words: 1359 - Pages: 6

Premium Essay

Organizational Management

...No organization is perfect. In some organizations the responsibilities are not taken seriously, positions are understaffed, and people do not always get along and even work against each other. These characteristics are even relevant in church organizations. Many people look at churches as not having the same issues to face that organizations outside of religion have to face, but that is far from the truth. Even in churches, globalization and economic crisis have forced spiritual leaders to rethink their strategies and change the way they operate in serving the people. Although organizations outside of religion change structures, roles, and functions when the strategies of the organization changes; churches should and must remain true to the initial strategy and meaning of the church which for most church organizations is to help the lost and weary souls of man. Sometimes this can be difficult to do because the “worlds” system operates in a different way, but the church must live by faith and believe and trust God to deliver them from every obstacle that may keep the organizations structure from failing. Organization structure is defined as the different hierarchies or levels of authority within a company. It describes the positions within the establishment and gives detailed information about the different roles and responsibilities are assigned, how they are managed, and who orchestrates them. Victory Christian Center is a non-denominational church that is dedicated...

Words: 438 - Pages: 2

Premium Essay

Organizational Management

...Presenter Notes Slide 1 – Introduction Slide 2 – Explain the competing values framework: Used in the completion of a cultural assessment of an organization. The horizontal dimension maps the degree to which the organization focuses inwards or outwards (Cameron, 1999). To the left, attention is primarily inwards. To the right, it is outwards. The vertical axis determines the decision-maker. At the lower end, control is with management. The upper end indicates control with employees who have been empowered to decide for themselves (Cameron, 1999). 4 hierarchies explained: Hierarchy – 1. Traditional approach to structure and control that flows from a strict chain of command. 2. For many years, considered the only effective way of organizing and is still a basic element of the vast majority of organizations. 3. Leaders are typically coordinators and organizers who keep a close eye on what is happening. Market – 1. Seeks control by looking outward with particular notice of the transactions cost. 2. Not focused solely on marketing but views transactions as exchanges of value. 3. Leaders are often hard-driving competitors to who seek to always deliver the goods. Clan - 1. Less of a focus on structure and control and a greater concern for flexibility. 2. People are driven through a shared goal and outcome. 3. Leaders act in a facilitative and supportive way. Adhocracy – 1. Greater independence and flexibility than the Clan which is necessary...

Words: 307 - Pages: 2

Premium Essay

Organizational Culture and Management

...Importance of Organisational Culture Organisational cultures are created by people. An organisation’s culture is also created and maintained by the organisations leadership. Organisational culture is important to alphabet games because the culture of the workplace shapes the way the employees act and relate to others both internally and externally. This can have a significant effect on the way the organisation operates. The culture is the feel we get when we walk into an organisation, made up of assumptions, values and norms. The attitude, behaviour and traits that dominate the organisation can affect the way we act with other individuals. Every organisations culture varies. There are four main elements of culture, which are: 1 Basic Assumptions – tells employees how to feel and think about things. 2 Values – what ought to be in an organisation. 3 Norms – the way employees should behave. 4 Artefacts – visual demonstration of the culture. Shared values are beliefs, concepts and principles that underline the culture of the organisation, which determines the behaviour of its employees. These values link an organisation together. An example of shared values in Alphabet games is their extensive experience in software development which has developed into a world renowned reputation for excellence, quality and innovation. This tells the employees what is important to Alphabet games and assumes that employees pay close attention to providing such a...

Words: 918 - Pages: 4

Free Essay

Organizational Management

...Task 2 Diane Jackson Organizational Management Articulation of Response I was asked to analyze the Utah Symphony and Utah Opera merger proposal as Anne Ewers goes forward to manage the merger. I had to plan a proposal for Anne Ewers as she develops new strategies for measuring the success of this ongoing merger process. This art industry depends highly on donations from businesses and foundations. From many struggles, the art industries have developed low revenue, however; the Utah Opera and Utah Symphony need to integrate this merger for reduction of expenses for both organizations. Anne will need to implement other strategic goals that included, retain the audience platform and contract for musicians and key employees. Additionally, I had to implement a scorecard for both organizations showing weakness and strengths with recommendations of these formalities as to how Anne can mitigate these issues through the merger. A1. Utah Symphony Strengths and Weaknesses Financial Strengths Financial Weaknesses Endowment revenue High expenditure structure Profitability Low revenue from fundraising Leadership Strengths Leadership Weakness Keith Lockhart’s positional power as a music director for a symphony and opera. Unfilled CEO position Keith Lockhart’s experience to expand their performances Domineering in his position/partiality with staff A1a. Steps for Utah Symphony (Recommendation) Financial Strengths of the Utah Symphony are endowment revenue and profitability...

Words: 3699 - Pages: 15

Premium Essay

Organizational and Management Theories

...Organizational and Management Theories An Organization Lanique Phillips HCS 514 February 23, 2015 Debra Williams Organizational and Management Theories An Organization When running an organization, there are many factors to take into consideration when one is aiming for success. It is important that as the head of any organization, you partake in various strategies until you reach the one that works the best for the success of the company. Everyone has a say about how an organization should be ran. However there’s more than one way a company can shoot for success while pleasing its employees and clients and staying within set rules and policies. Various theories for success begin with management style. There are different styles an organization can take on depending upon the type of management they choose. With the variety of management styles, there is no wonder people can either fit in with a company or not. When one looks at the systems approach, they will find a variety of ways an organization can manage itself. It merely depends on who the organization focuses on as a whole. Management can choose to focus on work, employee-manger relationship, organizational design, functions of the manager, or adding computer technology to the work (Liebler, 2012). There is also the classic organizational theory that consist of scientific management, bureaucratic theory, and administrative theory. This theory is created for proper...

Words: 1214 - Pages: 5

Premium Essay

Management Organizational Behaviour

...KhongorgerelGankhuu MG371HOA: Mgt& Organizational Behavior Instructor: Frank Conforti August 26, 2014 Homework Assignment #1 Bloomberg Business Week case in the news; page 32-35 1. How does CEO Jelinek’s management approach resemble that of former CEO Sinegal? * -Since they have high level management skills, they especially focus on their wage and health benefits to keep and make their work environment happy in satisfaction condition. Sinegal boosted those benefits when Wall Street repeatedly asked it to reduce and Jelinek has valuable opinion that people need to make a living wage with health benefits. 2. How would you describe Costco’s approach to planning and strategy? * -I would describe Costco’s approach is that they are increasing international presences which are located in EU and Asia. It is good planning move to make global deals. Costco has diverse strategy to increase gross profit and pay the wages, such as they sell and buy more products than anyone and it allows to bulk discount from its suppliers. 3. What is Costco’s approach to managing its workforce? How has this approach influenced the culture and values of the company? * -They pay more than other retailers and 88% of employers have company-sponsored health insurance. However they do not hire business school graduates and 70% of their managers started at the company by pushing carts and ringing cash registers. The Wall Street Journal case in the news; page 75-77 1. How would you...

Words: 579 - Pages: 3

Premium Essay

Organizational and Management Theory

...Organization and Management Analysis HCS/514 Managing in Today’s Health Care Organizations Organizational Theories Organizational theory as it applies to health care introduces a complex and challenging situation. The health care environment introduces challenges to a structured organization which may not be present in traditional business. For example, measuring output may be difficult in an environment of daily uncertainty, it would be nearly impossible to predict or plan for all of the specific tasks, activities and business interactions in any one unit in the hospital setting. Additional challenges include complex, variable work that cannot often be deferred, work performed under emergency circumstances, high degree of precision and low margin for error, services are often interdependent while requiring a high level of coordination, work is highly specialized, government and regulatory implications must be considered, and typically multiple lines of authority. Each of these unique challenges creates a specialized approach at organizational theory and creates a foundation for this unique perspective to organization and health care as a differentiator from a standard business model (Shortell et al, 2011). Determining an organizational structure begins with first establishing the mission, vision, values, and organizational goals. This will set the course for the internal structure and external outcomes management for the organization. In general, when looking at the...

Words: 1400 - Pages: 6