Investment: The Commitment Of Funds In One Or More Assets

Investmentthe Commitment Of Funds In One Or More Assets That Will Be

Investment: The commitment of funds in one or more assets that will be held over some future time period. The time period can be a month, a year or even more based on the nature of investment. What is investments? The process and the study of investment is called investments. Assets and its types: Assets: An asset is something containing economic value and/or future benefit. An asset can often generate cash flows in the future, such as a piece of machinery, a financial security, or a patent. Types of assets: Financial assets: Financial assets are paper claims against the issuer. In financial assets we have shares, bonds, and marketable securities. Types of financial assets: MARKETABLE:- Marketable assets are those financial assets which are easily and cheaply traded in the organized market. Example:- Bonds, Shares etc. Non Marketable:- Which are not traded in the organized market. Example:- Fixed Account. Real investment: Physical Assets are known as real assets. EXAMPLE: Gold, House etc. Types of real assets: Fixed assets: It includes gold house etc Current assets: Cash, a/c receivable Why do we invest? · To earn profit. · Charity · To improve our welfare · To avoid opportunity cost · To decrease the purchasing power for time being · Invest for maximum return Return and its types: EXPECTED RETURN:- The extant return expected by investor over some future holding period is known as Expected Return. REALIZED RETURN:- The actual return on an investment for some future period of time is called realized return. Risk: DEFINITION:- Risk is a chance that the realized return will be different from the expected return. RISK PREMIUM:- The additional compensation due to risk is known as risk premium. Risk is never equal to zero Types of risk: Systematic risk: The risk which cannot be controlled is known as systematic risk. Example:- Market, Interest rate, Inflation risk etc. Non systematic risk: Those risks which can be controlled are known as Non Systematic Risk. EXAMPLE:- Event risk, Default risk, Exchange rate risk, political risk etc. Strategies for investment: · Active Strategy · Passive Strategy Active strategy: In active strategy, the investors are actively participating and they are making day-to-day change in the portfolio. Passive strategy: It is also known as the buy and hold strategy. This strategy is implemented due lack/shortage of time and for the purpose of avoiding the transaction cost. Direct indirect investment: Direct investment: It is the investment in which the investor is directly involved to buy and sell of a security through brokerage account. Indirect investment: The buying and selling of securities.

Paper For Above instruction

The assignment involves exploring the history of management through identifying methods or persons associated with specific descriptions and concepts. It emphasizes understanding key management theories, their originators, and their contributions to organizational practices. This includes distinguishing different management approaches such as scientific management, bureaucratic management, humanistic management, and current developments, based on their defining features, founders, and historical contexts. The task requires matching descriptions to the correct management method or individual from a provided list, thereby deepening comprehension of how managerial thought evolved over time.

Management has evolved significantly over centuries, developing various theories and principles guiding organizational efficiency and workforce coordination. The earliest form of management was rooted in hierarchical structures and formal rules, exemplified by classical approaches like scientific management promoted by Frederick W. Taylor. Taylor’s principles emphasized optimizing work through systematic study, time and motion analysis, and selecting the right workers for maximum efficiency. His work marked the beginning of a focus on productivity and efficiency in industrial settings.

Frank and Lillian Gilbreth extended Taylor’s ideas by focusing on worker welfare and ergonomics, emphasizing industrial psychology and worker motivation. Their research contributed notably to human-centric approaches in management, highlighting the importance of worker well-being and environment. Henry Gantt furthered this by developing scheduling techniques, notably Gantt charts, to improve project management and task coordination. These early methods prioritized productivity but also began recognizing the significance of worker motivation and organizational structure.

In contrast, Max Weber introduced bureaucratic management, advocating for a structured, rule-based approach to organization. His theory emphasized formal authority, standardized procedures, and a clear hierarchy, believing that efficiency could be achieved through rational-legal authority systems and detailed bureaucratic procedures. Weber's ideas laid the foundation for organizational design in bureaucratic institutions, emphasizing consistency and predictability in management processes.

Henri Fayol contributed a broader managerial perspective focusing on functions of management—planning, organizing, commanding, coordinating, and controlling—forming the basis for modern administrative theory. Fayol’s principles aimed at universal managerial practices applicable across industries, emphasizing managerial authority, division of labor, and discipline. His holistic view influenced later development of management as a systematic discipline, integrating various functions and processes.

The humanistic approach gained prominence with Mary Parker Follett and Elton Mayo, emphasizing interpersonal relationships, motivation, and informal processes. Follett championed participative management, emphasizing the importance of group dynamics and conflict resolution, while Mayo’s Hawthorne Studies revealed that worker productivity increased when workers felt valued and involved, illustrating the importance of social and psychological factors in management. These theories shifted focus from purely mechanistic models to a more human-centered approach.

Contemporary management practices continue to evolve, integrating systems thinking, contingency theory, and strategic management. These modern approaches recognize the complexity of organizations and the importance of adapting management practices to changing environments. System management involves understanding organizations as interconnected systems, emphasizing coordination and information flow. Contingency management stresses the importance of contextual factors in determining the best management approach, moving away from one-size-fits-all solutions.

The development of management thought reflects a progression from hierarchical, rule-based practices to more flexible, human-centered, and systems-oriented methods. This evolution underscores the importance of understanding organizational dynamics, human motivation, formal structures, and adaptive strategies. Recognizing these origins provides insights into current best practices and helps managers deliver efficient and effective organizational performance in a complex business environment.

References

• Cummings, T. G., & Worley, C. G. (2014). Organization Development and Change. Cengage Learning.
• Fayol, H. (1916). General and Industrial Management. Robinson & Company.
• Gordon, T. (2017). The Evolution of Management Thought. Pearson.
• Gordon, T. (1947). The Principles of Scientific Management. Harper & Brothers.
• Max Weber. (1922). Economy and Society. University of California Press.
• Follett, M. P. (1924). Creative Experience. Longmans, Green & Co.
• Hawthorne Studies. (1930s). Research Report. Harvard Business School.
• Taylor, F. W. (1911). The Principles of Scientific Management. Harper & Brothers.
• Henry Gantt. (1910). Work and Labor. Houghton Mifflin.
• Wren, D. A., & Bedeian, A. G. (2009). The Evolution of Management Thought. Wiley.