Adapting to ChangesSituational Leadership Assignment

Adapting to ChangesSituational Leadership - Assignment Example The situational model comes with a number of strengths and limitations as described below. The situational leadership engages supple approach to meeting the distinct demands of every situation and individual. This model offers a prescription of understanding the capabilities and the nature of subordinates to enable the provision of exact requirements for better performance of a task. For instance, pushing an individual forward on to a task may work if the concerned party is low on confidence other than the employee who lacks the necessary skills (Carew, Carew & Blanchard, 2008). Putting in mind that employees often present their strengths and weaknesses at work, situational leadership approach enables a leader to personalize his approach towards the employees. This model mainly dwells on the need for leaders to constantly understand the needs of their subordinates. To assess and develop a better understanding of an employee’s abilities and lead him/ her towards performing tasks effectively, it is paramount that communication is used. Thus, the situational leadership model enhances the levels of communication between the leader and the subjects hence increasing the levels of efficiency and productivity in the organization (Fernandez, Cho & Perry, 2010). Most leaders under the situational leadership model are often under constant pressure to analyze their situations prior to making decisions on any action. Other leadership styles emphasizing on leaders following their strengths and innate traits often present more instinctive reactions to problems. Other prominent situational leadership models propose that leaders ought to constantly establish the manner in which their actions offer immediate and long-term motivation to the employees. The major challenge to this question is that each response varies depending on the follower and the situation. Despite the effectiveness of the situational theories, they are always criticized for their rigidity. The

Financial Markets and Institutions Essay Example | Topics and Well Written Essays - 1250 words - 2

Financial Markets and Institutions - Essay Example Another option available to an investor is the financial markets that help to channel money from an individual having surplus funds to an individual who requires the money. By participating in financial markets the investor will get the opportunity to invest in a broad range of securities ranging from stocks, bonds, and Treasury bills to modern financial instruments such as derivatives. Financial markets helps to create wealth by mobilizing personal savings of investors and arranging suitable invest opportunity. The process in turn contributes in creation of national wealth by encouraging investments and savings (Madura, 2012, pp.4-7). Overview of Securities Treasury Bills The maturity of T-bills is less than a year and is hence instrument of money market and not capital market. These instruments are very similar to zero-coupon bonds and hence do not pay interest prior to maturity. The process of issuing T-bills is through competitive bidding where they are sold to investors at disco unt and at maturity they are redeemed at the face value of the bond. The appreciation of bond prices in near future provides returns for investment. The maturity of treasury bills varies from 28 days to 364 days and they are sold weekly through single-price auctions. The minimum amount of investment in T-bills has been reduced from $1000 to $100 and the maximum purchase amount is $5 million. Bonds Bond can be defined as the financial instrument through an institution borrows money from different investor for definite period of time with a fixed interest rate. It can be used by corporate, municipalities and government organisations to fund new projects and for further expansion. Interest rate is also known as coupon rate and interest on bonds can be paid semi annually (every six months) and on the date of maturity principal amount of the bond will be paid to the investor with coupon rate. Bond market is also called as a debt market or credit market which is a financial market where n ew bonds can be issued and trading on existing bonds can be done. It is a long term financial market which includes corporate bonds, notes, bills; US treasury bonds.US bond market is about 44% of global bond market. According to SIFMA (Securities Industry and Financial Market Association) current US bonds market increased from March 2012 to 2013 by 2% to nearly $100 trillion. Currently the yields of US treasuries are varying from 0.05% to 3.89% for 3 months treasuries to 30 year treasuries (Fabozzi, 2007, p.261). Stocks The stock or capital stock of an incorporated business constitutes the equity stake of its owners. It represents the residual assets of company which is due to stockholders after discharging secured and unsecured debt. The stockholder’s equity cannot be withdrawn from company as it is detrimental to creditors of company. The stock of a corporation is partitioned into shares. Additional shares can be authorized by existing shareholders and issued by company. Sh ares represent a fraction of ownership in business. This ownership of share is documented by issue of stock certificate which a legal document is specifying the amount of share owned by shareholder. Stock in the form of shares can be preferred stock or common stock. Preferred stock differs from common stock in the way that it does not carry voting rights. It is entitled to a certain level of dividend payment