Introduction to Business and Management

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Introduction to Business and Management

Individual Exercise 10.1

Question 1

I learned that reducing the Fed funds rate reduces unemployment and increases inflation. Open market operations is an expansionary and contractionary monetary policy used to stabilize the economy. For instance, reducing the Fed funds rate from 3.75% to 3.00% lowers the unemployment rate from 4.52% to 4.10%. Reducing interbank rates lowers the cost of borrowing from commercial institutions and increases aggregate demand (Khan Academy 00:000-04:36). Besides, manufacturers fire more employees to meet the rising demand for products. Reducing interest rates stimulates the economy and reduces unemployment. On the other side, lowering the Fed funds rate increases money supply due to the availability of cheap loans. For example, reducing the Fed funds rate from 3.75% to 3.00% increases inflation from 2.29 % to 2.6%. Therefore, an increase in the money supply causes inflation due to the rising prices in the economy.

Question 2

Fed’s monetary policy influences consumption through the supply of money and product prices. Expansionary monetary policy increases money supply leading to higher product prices.

Interest rates also influence credit card rates. Thus, I spend more when credit card rates reduce and spend less when the Fed increases the cost of funds. Moreover, the monetary policy makes products affordable by controlling inflation. Therefore, monetary policy influences my consumption through the cost of funds and product prices.

Individual Exercise 9C.1-Job Design

Question 1: Mary

The receptionist’s job at the law firm can be enriched task through autonomy feedback. Mary requires autonomy or freedom to choose how to complete her tasks and how to schedule her tasks. More autonomy would increase the responsibility in the law firm. Mary also needs feedback about her performance and to make necessary adjustments to enhance performance.

Question 2: John

John’s can be enriched through skill variety and feedback to enhance performance. John needs skills to support people under the alcohol treatment program. Human services budget limitations contribute to understaffing and increase John’s workload. Thus, he needs skills to serve all the clients. Moreover, John’s job requires the client’s feedback to assess the results and determine areas that require adjustments. Positive feedback would also motivate John to achieve more. Thus, both positive and negative feedback is necessary to enhance job satisfaction.

Question 3: Jose

The insurance company can enrich Jose’s job by increasing autonomy and task significance. Jose needs more autonomy to perform his duties under less supervision and pressure to finish the day’s work. Also, the organization should enhance job satisfaction through the task identity element. Jose should complete all the tasks and predict the outcome without consulting the manager.

Individual Exercise 11A.1-Gaining Power and Influence

Question 1

Margaret is applying her skills to build her power base. For instance, she researches to solve office furniture problems, preparing reports, and hardworking. Margaret is reliable and volunteers for extra work at the organization. She has developed expert power and referent power. Margaret’s expert power is based on her expertise in sales and reporting. Likewise, she derives referent power from her personality and reputation in the organization. Margret’s colleagues admire her hard work and determination to achieve personal and organizational goals.

Question 2

Reporting her assistant may put her goal at risk and diminish her power base. Margaret should have backups to enhance data security. Thus, her colleagues may think that she is not fit for promotion. She should promote teamwork to win her colleagues’ trust.

Question 3

I actions that I have taken to build a power base at school and work include being punctual, honest, trustworthy, and engaging in decision making. My power base includes referent power and expert power. I derive referent power by building trust and admiration from others. For instance, I am a role model to many people through hard work, completing tasks on time, and good communication skills. Moreover, I derive expert power through expertise, professionalism, and experience in the area of specialization.

Works Cited

Fed Open Market Operations. Perf. Khan Academy. 2011. <https://www.youtube.com/watch?v=wDuCOxDxMzY&feature=emb_title>.

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