Power of Organization Essay Example | Topics and Well Written Essays - 750 words

Power of Organization - Essay Example On the other hand, his workers can work more or less diligently, group together to form a union, to leave, and so on. On the part of managers, they can engage in activities called organizational politics to increase their power and pursue goals that favor their individual goals (George & Jones, 2005). French & Raven (1959) developed a scheme of five categories of power: reward, coercive, legitimate, referent and expert power. According to them, reward power is formal and depends on the ability of the power-wielder to confer rewards. Coercive power, on the other hand is compelling people to behave in particular ways or giving sanction of noncompliance. In legitimate power, the role carries authority, having something to do with the relative position and duties of the holder of the position within an organization. It is the ultimate source of an individuals power in an organization (George & Jones, 2005). On the other hand, referent power pertains to personal attributes or charisma, or interpersonal skills. People with this power are liked because of who they are, not just because of their expertise (George & Jones, 2005). Meanwhile, expert power refers to those of specialists or simply, expertise. This type of power is usually highly specific and limited to the particular area in which the expert is trained and qualified. Use of power creates and eliminates conflict. Conflict behaviors may create and eliminate conflict. Thomas (1985) reports that conflict has two dimensions, each representing an individual’s intention with respect to a conflict situation. The two dimensions are cooperativeness, attempting to satisfy the other party’s concerns, and assertiveness, attempting to satisfy one’s own concerns. Five different combinations of these two dimensions are said to create conflict behaviors. Competing behavior, for example is assertive, uncooperative. Meanwhile, accommodating behavior is unassertive, cooperative. Avoiding

The Role of Investment Bankers Essay Example | Topics and Well Written Essays - 1250 words

The Role of Investment Bankers - Essay Example As far as the role of investment banker is concerned, it encompasses three major activities: origination, risk bearing, and distribution. Origination requires decisions about the type (e.g., debt, equity), quantity, price, timing, and other features of the new securities issue and the determination of the method of distribution. Risk bearing comes into play when the issue is a firm-commitment offering, in which the underwriter buys the securities from the issuer at a fixed price and resells them to the public. It is by far the most common form of underwriting. If the price of the securities falls before they can be resold, the underwriter will suffer a loss, thus the risk associated with this activity. Occasionally, underwriters suffer substantial losses due to abrupt declines in some underwritten offerings. The investment bankers have been the subject of more industry analysis than has the overall broker-dealer industry. Pugel and White ( 210-14) studied the investment-banking industry using the structure-conduct-performance paradigm in a consideration of allowing commercial bank affiliates to underwrite corporate securities. Rogowski and Sorensen Investment banking has always been a highly profitable but risky business for securities firms. Before Rule 415 was enacted, underwriting was very profitable, especially for the leading firms. Some of the profits were the result of entry barriers into the ranks of the top underwriters. But with Rule 415, the profitability of underwriting traditional corporate issues has declined. Now, the high-profit lines are not quite as profitable, although, there are always opportunities for securities firms, because of the ever-changing market conditions. For example, the opening of Eastern Europe may provide an area in which the ability of Wall Street firms to develop new products might be put to good use. As the Eastern European countries introduce more market-oriented approaches to economic management, there may be a need for unique securities instruments that would be compatible with the types of ownership that will emerge in these countries. (Mandelker, 683-94) The riskier economic environment and the importance of innovations and diversifications for securities firms call for a new regulatory approach. The central focus of federal securities regulation has been to provide investors with sufficient material information to make informed investment decisions, to prohibit fraud in connection with the sale of securities, and to provide a safe and sound securities industry environment. (Dale, 3-13) The broad regulatory charge of protecting investors and maintaining fair and orderly markets grew out of the stock market crash of 1929 and the fraud, securities price manipulation, and other practices that took place before the crash. In the current, more volatile environment for securities firms, regulators must be more responsive to the needs of the regulated firms. Important new financial instruments have helped securities firms manage the increasing risks they face, and the regulators should facilitate the development of these instruments. Entry into the basic