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MGT502 - Organizational Behaviour

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    zaasmiZ

    Which of the following is a strategy of risk management that is employed by investors to reduce or minimize the chances of loss? MGT201
    Diversification

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    zaasmiZ

    If a project require Rs.17200 initial investment and its expected cash flow Rs.5100 continuously 05 year what will be its IRR?
    If a project require Rs.22430 initial investment and its expected cash flow Rs.7500 continuously 05 year what will be its IRR?
    If a project require Rs.1065000 initial investment and its expected cash flow Rs.350000 continuously 05 year what will be its IRR?

    (17,200) (22,430) (1,065,000) (1,000,000) 1st year 5,100 7,500 350,000 150,000 2nd year 5,100 7,500 350,000 150,000 3rd year 5,100 7,500 350,000 150,000 4th year 5,100 7,500 350,000 150,000 5th year 5,100 7,500 350,000 150,000 14.74% 20.00% 19.22% 150,000 15% 150,000 150,000 150,000 150,000 TIPS 8.14%

    Ø Initial investment will be written with minus sigh for example (-17200)
    Ø Cash flow will be written according to chronological order for example in first cell cash flow of first year will be written and respectively other years.
    Ø If at last year 02 cash flow happen than it will be written in one cell for example if last year cash flow of 5th year is (5100 & 4500). It will be considered as 9600 in 5th year.
    Ø After completing all the parameter. Click a cell and Insert the IRR function
    Ø Write = Irr( drag all the cash flow in the bracket) press inter key for example =IRR(F10:F15)
    Ø (F10:F15) ( F10 to F15 consist of initial investment & all cash flow chronological order
    Ø If it demand guess give it to 0.1 otherwise leave it
    Ø Result will be 15%, now you have split it in two decimal place for accuracy

    How to calculate the IRR by help of MS Excel.xlsx

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    zareenZ

    MGT502
    Questions 1: What type of organization design would best suit the needs of DiskGate -It, Inc., in your opinion? Justify your choice.
    Answer:
    Organizational design: Mechanistic Design for Diskgate-IT, Inc.
    Justification:
    • As employees are not highly qualified so they should work as a team under a supervisor or manager to accomplish.
    • Vertical communication is applicable in this scenario which is only achievable by adopting mechanistic design.
    • Strict rule and regulation should apply.
    • Throughout the channel representative chain of command and responsibilities to be considered.
    • Assign every employee a specific job description to adopt.

    c95e9290-141b-42ef-9024-4f7b63c9e769-image.png

    Questions 2: What type of organization design would best suit the needs of Think-It, Inc., in your opinion? Justify your choice.
    Answer:
    Organizational design: Organic Design for Think-IT, Inc.
    Justification:
    • AS employees are highly qualified so they should work independently.
    • Having highly qualified bring up more creative and open-minded ideas to adopt by implementing organic design.
    • Decision making should be decentralized under one person.
    • Minimal Standard of procedures to be adopt by employees.
    • This design is more adoptable and flexible to highly qualified employees during any change.
    • Cross functional communication between departments.

    fd8cc985-5882-44bd-ac28-145ce1b0223c-image.png

    References:
    • Leonard. (2018). Organic Structure of organizational design. [Online] Available https://smallbusiness.chron.com/organic-structure-organizational-design-58657.html
    • Ordoro. (2012). Mechanistic organization vs organic organization [Online] Available https://blog.ordoro.com/2012/07/15/mechanistic-organization/

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    zareenZ

    Employee Morale

    Corporate donations allow companies to take active interests in their own communities and can also lead to a huge boost in employee morale. If a company chooses to make a corporate donation, workplace culture can improve with increased employee involvement and a positive general attitude. According to a 2016 Deloitte study on volunteering, millennials were “twice as likely to rate their corporate culture as very positive” if their company participated in workplace volunteer activities. Employees respect companies that care for their community–it simply makes employees feel good, and increases the emotional attachment to their employer.

    Increased Marketing

    Philanthropic businesses are some of the most powerful in the world. For example, Apple matches employee donations, and has donated more than $78 million to charities through 2015. Charitable sponsorship is a great way to do good in your community, while also gaining marketing experience. Donations put your company’s name out there, especially if you sponsor some kind of event. Just make sure that the event or charity mirrors your own company’s goals. For example, if your company makes sporting equipment, consider sponsoring local sports teams or tournaments. That will show your current and future clients that you really care about your business and your community.

    Tax Deduction

    This is one of the most immediate benefits of corporate donations. You may not instantly see how your contribution benefits your community, but you will quickly notice the tax savings. Of course, businesses shouldn’t donate with the sole expectation of financial gain, but there are fiscal rewards for helping a charity in need. Businesses can usually receive tax deductions from sponsoring charities or events, but your should make sure to follow the rules and go about the process in the right way in order to comply with all tax requirements.

    It’s Good for Your Community

    Charitable contributions have numerous benefits, but the most important one is obvious: you should give back to your community. Charitable donations help better your community, and the public will notice if a company is making a real effort to improve its surroundings. Your company’s charitable donations could help improve schools or parks, giving children safe places to learn and play. If you choose to donate to a nonprofit organization that conducts medical research, you could also help in the effort to cure diseases. The opportunities are endless and extremely helpful.

    One way to engage employees to participate is to align the company’s donation choices with causes that have the greatest meaning to your workforce. For example, Brixio, a tech company based out of Lehi, Utah, chose to donate to the Livestrong Foundation after several of Brixio employees’ loved ones were diagnosed with cancer. Josh Aston, Brixio VP, said there are a lot of reasons why companies don’t donate to charities, but you can always help initiate change. “Not every company can be a social change company,” Aston said. “However, we are starting to actively bring up our partnership with Livestrong to those we do business with, getting the idea of social giving planted within them.”

    There are many reasons why your company should make charitable donations, and any reason that motivates you is a good one. Donating to charities can help change your business and work culture. It can also have a dramatic impact on others. So pick a cause that you believe in and make your community a better place to live. It’s good for business.

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