Mintzberg’s Model of Organizational Structure

Management expert Henry Mintzberg  proposed that traditionally organizations (profit making or not for profit) can be divided into five components. In practice organizational structure may differ from proposed model. Factors influencing organizational structure are industry norms,   size, experience, culture, external forces (competition, inflation, minimum wage legislation etc). Components identified by Mintzberg is useful for understanding the workflow of organizations. The structure of an organization can be defined simply as the sum total of the ways in which it divides its labor into distinct tasks and then achieves coordination among them” –  The Structuring of Organizations,  Henry Mintzberg. 1. Strategic Apex Strategic   apex is the most senior level in the organization. Management working at this level is referred as Continue reading

An Overview of Indian Capital Market – History of Indian Capital Market

The capital market in India is a market for securities, where companies and governments can raise long term funds. It is a market designed for the selling and buying of stocks and bonds. Stocks and bonds are the two major ways to generate capital and long term funds. Thus, the bond markets and stock markets are considered as capital markets.   The Indian securities market consists of primary (new securities) market and secondary (stock) market in both equity and debt. The primary market provides channel for sale of new securities while the secondary market deals in trading of previously issued securities. The issuers of securities issue new securities in the primary market to raise funds for investment. They do either Continue reading

Difference Between Money Market and Capital Market

In order to understand what the differences between things are you first need to understand what each of the items is. In this case before you can understand the difference between money market and capital market you are going to need to understand what money market is and what capital markets is. Once  you understand the two  items are it will  be easier to see what the difference or differences are between the two markets. What is Money Market? Basically the money market is the global financial market for short-term borrowing and lending and provides short term liquid funding for the global financial system. The average amount of time that companies borrow money in a money market is about thirteen Continue reading

History of Management Practices

The history of management is a long-standing one, with human life comes the need to manage and control. Looking back through time, one can easily see from where the idea of management developed, grew, and turned into what people know as the modern form of management. In current time, managers are often thought of as sitting in a cushy office wearing a suit and tie, but little do most know that today’s managers have stemmed from ancient Egypt, China, and even back to the paleolithic times. Management has existed for as long as humanity and it will most likely only continue to further evolve, grow with the time, and fit into more modern aspects of managing. The origins of management Continue reading

Major Participants and Players in Financial Markets

In the financial markets, there is a flow of funds from one group of parties (funds-surplus units) known as investors to another group (funds-deficit units) which require funds. However, often these groups do not have direct link. The link is provided by market intermediaries such as brokers, mutual funds, leasing and finance companies, etc. In all, there is a very large number of players and participants in the financial market. These can be grouped as follows : The individuals: These are net savers and purchase the securities issued by corporates. Individuals provide funds by subscribing to these security or by making other investments. The Firms or corporates: The corporates are net borrowers. They require funds for different projects from time Continue reading

Introduction to Financial Instruments

Often investors invest through financial assets or financial instruments or securities. Investments that represent debt, ownership of a business or a legal right to acquire a part of ownership interest in business are called securities. There are a number of financial instruments which are traded in the money market. The important financial instruments are Treasury Bills, Certificates of Deposits, Commercial Bills, Commercial Papers, etc. The money market instruments have maturity period upon one year. Money market instruments are highly liquid, short-term debt instruments which mature in less than 12 months, and normally pay continuously varying returns. These involve no or very little degree of risk. The money market instruments pay return to investors in the form of discount at the Continue reading

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