Delegation of Tasks Essay Example | Topics and Well Written Essays - 1000 words

Delegation of Tasks - Essay Example This will not only decrease the workload on a particular individual, but also help develop decision-making abilities and a more responsible outlook, amongst one's team of subordinates. Delegating workloads is a prime authority that comes with position. When one delegates a particular task, one needs to keep in mind, the capacity of your subordinate who would be delegating the task assigned by you. Analysing whether or not he is capable of doing justice to the piece of work, will help avoid workload mismanagement. In addition to this, a clear line of communication must prevail, since your subordinates need to comprehend what exactly you expect out of them and how the particular task needs to be handled. A combination of capability and communication transforms delegation of work into an easy task. Here is an analysis on what could be the varied criteria, requisites and guidelines one has to keep in mind, before delegating tasks: It is but obvious that one needs to share control over the tasks delegated, with the subordinate assigned to perform the tasks. One may feel insecure about one's authority getting diluted or worried if the task delegated will be completed as perfectly as one would deal with it. In such cases, one needs to ensure that one spells out each and every step one would adopt, in completing the task, to one's subordinate. This way, they would utilise the same knowledge in future tasks. You can still retain your hold by supervising their work processes at regular stages. Catering Information: Delegation translates into meaning that one trusts one's subordinate to make effective usage of his decision-making abilities. It signifies that their decision- making abilities must be of a superior quality and therefore, access to information is the key here. Only factual, error-free and clear information can aid rightful decision-making. This information can be in the form of interpersonal exchanges, company information or even information obtained from the computer and the web. This way, communication is not hurdled and tasks are carried out with equal managerial expertise. Pragmatic Approach: As an employee occupying an authoritative position, one needs to realise that not all employees at varied levels have the same level of knowledge or for that matter, the technical know-how. You need to explain how exactly a particular procedure needs to be followed, along with the detailed explanation of the steps. This way, there will be no miscommunication or miscomprehension. Therefore, making allowance for those with lack of knowledge about your own specialisations or work processes is integral to raise the confidence levels of those involved with carrying out your delegations. Involvement: As the delegating authority, one tends to get too involved with the project you delegate and thus, appear readily

The Capital Asset Pricing Model Essay Example | Topics and Well Written Essays - 1000 words

The Capital Asset Pricing Model - Essay Example The equation that is applied in the calculation of CAPM for the assets is as follows: E(Ri) =RF +?i [E(RM) - RF] Where, E (Ri) = expected return of the ith level. Rf = risk-free return of an asset (such as short-term government securities), ?i = beta coefficient of ith level, and (RM) = Expected return on the market. The main aim of the CAPM model underlies the identification of the market portfolio as the tangency portfolio between supply and demand in balance. However, there are several theoretical limitations that have hindered the operations of the model, in the manner that these limitations will likely cause deviations in the process of applying the model particularly between the reality and the model. These limitations can be broadly classified as: a. Being based entirely on unrealistic assumptions. b. Testing the model’s validity is quite difficult. c. Its betas will not remain stable over a long duration of time. Based on these limitations, the model is accepted to hav ing been based on several assumptions most of which are not realistic. The CAPM model supposes that the investors are always risk-averse hence, are most likely to select the investment portfolios that are efficient, and which will be based on the standard deviation or variance and expected returns of the returns from the assets (Whitman & Diz, 2013.p.85). a. Unrealistic assumptions Based on the unrealistic assumptions, it is also hard to find a security that is risk free. For example, while a highly liquid short term government security may be considered as risk free, it will be unlikely that the government will default on the security. This is because of the inflation rate which is another significant factor that will affect the portfolio’s returns. This is because; a portfolio’s variance or standard deviation is usually assumed to be an adequate measurement for a investment’s risk level, which is normally certified under the assumption of returns being normall y distributed. However, in practice, there are several other risk measures that will play an important role in the determination of an assets’ degree of risk (Pahl, 2009.p.345). The returns on assets, under the CAPM, are required to take the form of a normal distribution model. Consequently, the return on the assets in the real world may be non-normal and irregularly distributed. b. Difficulty in determining the model’s validity Additionally, it is difficult to assess the validity of the model in the testing of returns of assets. This is because most of the model’s assumptions may not be critical as a result of the practical validity of the model. Consequently, this model recognizes that different investors have different abilities for investing hence; the cost of their investments will be largely expected to have an effect on the efficiency of the portfolio. Additionally, since the portfolio markets tend to be frictionless, it is likely expected that there woul d be no transaction costs, taxes and restrictions on the nature of trade offered. However, theoretically, this act as a limitation for this model as frictionless markets may not be in existence in real practice. Consequently, while the model might assume that assets in the market are infinitely divisible to be held or traded on, the best option would be to have the market portfolio include all the opportunities of investment available in the market, and with a market value. As such, it is