Fritz Heider’s Balance Theory

  By admin | August 8, 2011 - 7:51 am | Management 14 Comments

Fritz Heider’s Balance Theory is a motivational theory of attitude change proposed by Fritz Heider, which conceptualizes the consistency motive as a drive toward psychological balance. Heider proposed that “sentiment” or liking relationships are balanced if the affect valence in a system multiplies out to a positive result.

For example: a Person who likes an Other person will be balanced by the same valence attitude on behalf of the other. Symbolically, P (+) > O and P < (+) O results in psychological balance.

This can be extended to objects (X) as well, thus introducing triadic relationships. If a person P likes object X but dislikes other person O, what does P feel upon learning that O created X? This is symbolized as such:

* P (+) > X
* P (-) > O
* O (+) > X

The goal is now to understand the relationships between each pair (P-O, P-X, O-X), in terms of:

  • L: liking, evaluating and approving, or
  • U: A more general cognitive unit that is formed, such as similarity or belonging.

 

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Markowitz Model

  By admin | August 1, 2011 - 1:37 am | Economy 1 Comment

A model for selecting an optimum investment portfolio,devised by H. M. markowitz. It uses a discrete-time, continuous-outcome approach for modeling investment problems, often called the mean-variance paradigm. See Efficient frontier.

Harry Max Markowitz (born August 24, 1927) is an American economist and a recipient of the John von Neumann Theory Prize and the Nobel Memorial Prize in Economic Sciences.

Modern Portfolio Theory

A theory on how risk-averse investors can construct portfolios to optimize or maximize expected return based on a given level of market risk, emphasizing that risk is an inherent part of higher reward.

Portfolio theory deals with the value and risk of portfolios rather than individual securities. It is often called modern portfolio theory or Markowitz portfolio theory.

The key result in portfolio theory is that the volatility of a portfolio is less than the weighted average of the volatilities of the securities it contains. The standard deviation of the expected return on a portfolio is:

√(ΣWi2σi2 + ΣΣWiWjCovij)

where the sums are over all the securities in the portfolio,
Wi is the proportion of the portfolio in security i,
σi is the standard deviation of expected returns of security i, and,
Covij is the covariance of expected returns of securities of i and j.

Two Kinds of Risk
Modern portfolio theory states that the risk for individual stock returns has two components:

Systematic Risk – These are market risks that cannot be diversified away. Interest rates, recessions and wars are examples of systematic risks.

Unsystematic Risk – Also known as “specific risk”, this risk is specific to individual stocks and can be diversified away as you increase the number of stocks in your portfolio (see Figure 1). It represents the component of a stock’s return that is not correlated with general market moves.

For a well-diversified portfolio, the risk – or average deviation from the mean – of each stock contributes little to portfolio risk. Instead, it is the difference – or covariance – between individual stock’s levels of risk that determines overall portfolio risk. As a result, investors benefit from holding diversified portfolios instead of individual stocks.


Figure 1

 

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6 Smart Keyboarding Tips Make You Healthy

  By admin | July 26, 2011 - 2:04 pm | laptop accessories Leave a comment

When we learn MBA knowledge, read MBA books, we have to type with our keyboard to record the knowledge. I am always type with my Compaq Presario CQ60 Keyboard and feel so tired, so I collect some tips good for our health when we typing.

1.Try an ergonomic keyboard. As always, the right ergonomic product can help you achieve your goals. Try a left-handed keyboard, a mini keyboard (great for maximizing space), or even a split keyboard for maximum comfort.

2.Neutral positioning. This just means that you never bend or cock or angle your body, and especially your hands, in an awkward way. Your hands should form a straight line with your wrists, forearms, and elbow.

3.Keep your hands and fingers curved. Instead of locking your fingers, your hands should naturally curve into a loose ball as they float over the keys.

4.Float your hands. Your hands should also hover over the keys, rather than hanging on them.

5.Confirm proper keyboard placement. Your keyboard should sit flat on a surface, or ideally, at a slightly negative slope away from your body. It should rest about two inches above your legs, about an inch below your elbow height. The space bar on your keyboard should be perfectly centered to your body.Your keyboard and mouse should be right next to each other.

6.Rest on your palms. When you do need rests, rest on the palms of your hands or try a a wrist rest. Never put extra pressure on your wrists unnecessarily.

That is the 6 tips tell you how to keep your healthy when you are typing. Apart from that, you should also keep your laptop healthy, so you can type all the way.

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Chaos management

  By admin | July 18, 2011 - 6:30 am | Management Leave a comment

Chaos management is a catalyst for change in organizations. We provide tools and solutions for collaborative, equitable, and participatory work through consultation, facilitation and education.

Chaos management is about “issue storms”….swirling, turbulent flows of information that blow up when people try to deal with complex issues. Our world is increasingly dominated by issue storms. Our lives are issue driven and chaotic. Our interaction with others is complex and unpredictable.
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Symbolic View of Management

  By admin | July 4, 2011 - 10:42 am | Management Leave a comment

The view that managers have only a limited effect on substantive organizational outcomes because of the large number of factors outside their control.

The traditional view of managers is that they have virtually unlimited control over the organization and its purpose, functions and operations and therefore that they alone are responsible for all its successes and failures. This can be called the omnipotent view of management. There is a second, and growing, point of view that suggests that much of the successes and failures of organizations is determined by external factors that cannot be controlled by managers. This is the symbolic view of management. Most likely a combination of both points of view provides the best explanation of management power and control

Symbolic view of management and performance appraisal

Under the Performance Appraisal of Moral, Ability, Diligent, Performance. The Point of Appraisal need to differ. Due to too many uncontrolled Factors, Then we need strengthen the percentage of Ability and Performance. If we concentrate more on the Result, It would make there are nothing relatives bewteen Stuff effort and result. And The Apprasial Result influence the Pay and Job Promotion. Then it would Frustrate the stuff posibility.

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