Management Report Project on Work Performance

Abstract The objective of this research is to find out if there is any correlation between work performance and job satisfaction through a sample study of sales personnel working in different banks. Additionally, this research sought to understand whether job satisfaction is linked to both work motivation and employee’s perceived style of leadership by Managers. With the help of surveys and interviews conducted with the participants, it was established that job satisfaction was positively related with work productivity. Similar essay: Argyles Communication CycleWork motivation and employee’s perceived style of leadership were also established as positively related with employee job satisfaction. These findings suggest that to increase work productivity, managers may be required to elevate the level of job satisfaction in employees, which may be potentially accomplished via a participative approach to leadership and effective motivation of employees. However, as the study is correlational in nature, the limitations of the current research are indicated under Discussion. Literature ReviewRelationship between Job Satisfaction and Productivity The most-used research definition of job satisfaction is by Locke (1976), who defined it as â€Å"a pleasurable or positive emotional state resulting from the appraisal of one’s job or job experiences†. There are other researchers and studies that support this notion of relationship between job satisfaction and productivity indicating that org anizations increasing job satisfaction is not only to benefit its employee but also for the organization financial advantages.As cited by Edward E. Lawler, job satisfaction is related to productivity as this comes from a path goal theory of motivation that has been stated by Georgopoulos, Mahoney and Jones, Vroom, Lawler and Porter. According to them, people are motivated to do things which lead to rewards that they value. In this case, a path-goal theory would predict that high satisfaction will lead to low turnover and absenteeism because the satisfied individual is motivated to go to work where his needs are being satisfied.As quoted by Dailey and Kirk, 1992, job satisfaction and organisational commitment share an inverse relationship with absenteeism and turnover intention, factors that can sharply cut bottom line. Adverse consequences include lower productivity and morale, and higher cost of hiring, retention and training. Thus, the reverse holds true whereby lower frequencies of absenteeism and turnover could lead to potentially higher contribution to organisational economic productive gains.In a research done by National Research Institute for one of the largest Food Services providers in the United States, it was suspected that employee satisfaction was the cause for high employee absenteeism, ruling out other tangible factors. Findings showed that low job satisfaction was evident; the National Business Research Institute (NBRI) Root Cause Analysis indicated that a gap existed between employees and the organization's short and long term goals, vision, and mission.Proposed recommendations from NBRI included several measures to relay management's strategic plans to the lowest-ranked employee and ensuring each and every employee’s daily activities were aligned according to such plans. Thereafter, subsequent employee survey results showed significant increases on employee satisfaction, enhancing Total Company Employee Satisfaction dramatically.Emplo yee Satisfaction Scores took a turn for the better, from a Weakness (below the 50th percentile of the NBRI Normative Database) to being Strength (above the 75th percentile of the NBRI Normative Database) in only six months. What’s more, employee absenteeism was reduced by more than 60%. With this correlation, Organ (1988) found that the job performance and job satisfaction relationship follows the social exchange theory in which employees’ performance constitute a giving back to the organization from which they get their satisfaction.Recognising the fact that low job satisfaction leads to low productivity, in turn aggravating organisational performance, it is imperative organizations assess the strength of the relationship between employee job satisfaction and productivity level because of underlying implications on redesigning certain aspects of work. A study was conducted by Shanu and Gole (2008) on the satisfaction level of 100 managers from 15 private manufacturing firms. A job satisfaction instrument assessing areas such as recognition, monetary remuneration, working conditions, nature of job, and future advancement was used.Then, these survey findings were compared with performance evaluations done by executives of assorted companies. In the wake of this, it was discovered that performance levels are consistent with high satisfaction scores. This is congruent with a review of 301 studies, revealing that job satisfaction bolsters up work performance, with a higher inclination towards professional jobs, compared to less complex jobs (see Saari & Judge, 2004). While there are studies to show this correlation, the present study was concerned with whether job satisfaction is significantly associated with performance in the economic aspect.In a study conducted on 42 manufacturing companies, Patterson, Warr, and West (2004) found that- holding other factors like company size, previous productivity, and industrial sector constant- productivity (fin ancial value of net sales per employee) is positively correlated to job satisfaction In another study, Herzberg et al. (1959) stated that (positive) satisfaction is due to good experiences, and that these are due to `motivators' – achievement, recognition, the work itself, responsibility and advancement.Dissatisfaction is due to bad experiences caused by `hygiene' factors – supervisors, fellow workers, company policy, working conditions, and personal life (Herzberg et al. , 1959). Therefore, it is unable to ascertain if job satisfaction is positively correlated with economic productivity or whether an inverse relationship exists. The present study seeks to reaffirm findings from the bulk of research in favour of the notion that satisfied employees are more labour productive. Relationship between Motivation and Job SatisfactionThe level of performance of employees relies not only on their actual skills but also on the level of motivation each person exhibits (Burney et al. , 2007). A motivational framework, built on the premise of how employees should be managed, affects job satisfaction. Herzberg's (1959) two-factor theory of motivation attributes ‘pay and benefits' to one of the hygiene factors, in that the exclusion of this causes job dissatisfaction (Hugh Greenway & Tim Runacre, 2008). As Argyle (1989) explains, positive job atisfaction is due to motivators such as achievement, recognition, the work itself, responsibility, and advancement, while dissatisfaction is due to bad experiences caused by hygiene factors such as salary, supervision, company policy, relations with fellow workers, and conditions of work. Lawler (1973) has a theory known as discrepancy theory which states that workers measure job satisfaction based on what they receive versus what they expect to receive, and a comparison in which an actual outcome level is lower than an expected outcome level would lead to dissatisfaction (Castillo & Cano, 2004).However, in another theory of motivation known as equity theory, it states that motivation is affected by workers’ perception of how fairly they are being treated, with employees evaluating their inputs/outcomes by comparing them with the inputs/outcomes of others (Castillo & Cano, 2004; Luthans & Doh, 2009). If the ratio of inputs to outcomes is similar to the inputs and outcomes of others, equity exists. Inequity exists when the ratio of inputs to outcomes is unequal to the inputs and outcomes of others (Castillo & Cano, 2004; Luthans & Doh, 2009).Job satisfaction is then associated with the perception of equity, while perceptions of inequity will result in dissatisfaction with this belief having a negative effect on job performance (Castillo & Cano, 2004; Luthans & Doh, 2009). The common factors shared by the different theories of motivation are the implication of a need for effective motivation in order to make employees satisfied with their jobs. Castillo and Cano (2004) examining in an ear lier study on 148 faculty members reported that all of the job motivator factors identified by Herzberg (1959) were moderately or substantially related to overall job satisfaction.Such findings shed light on how organisations can enhance productivity by considering provision of motivators such as recognition or improving on such motivators so as to heighten job satisfaction. In order to attain optimal profits, it is necessary to ascertain the link between motivation and job satisfaction through extensive foraging for substantial evidence. Most importantly, the present study will illustrate that existence of motivators to propel employees to reach for organisational goals has a favourable impact on labour productivity via enhancement of job satisfaction.Leadership Style and Job Satisfaction In an organisation, the performance of staff is not only affected by motivation and job satisfaction but it is also affected by the leadership style adopted by the organisation. Leadership is defi ned as a process through which others are influenced to channel their efforts in the direction of attaining their goals (Luthans & Doh, 2009). Organizational leadership sets the tone in the effectiveness of organizations, as well as plays a vital role in job satisfaction.Positive interactions among organisational leaders and members give rise to mutual respect, trust, and the ability to generate a sense of hope for the future- a much needed ingredient for job satisfaction to blossom from such relationships (Ackfeldt& Coote, 2005; Farh, Podsakoff, & Organ, 1990). Moreover, there is research that shows the existence of the relationship between leadership style and job satisfaction. The National Business Research Institute (2007), examining factors of job satisfaction, surveyed more than 15,000 employees, largely white collar, from all levels of participating organizations in the United States.Leadership is identified as the prominent factor contributing to job satisfaction, a phenomen on evident in organizations. There is a relationship between managers’ leadership styles and employees’ job satisfaction, illustrated in a sample of 814 employees of a national hospital. According to Rad and Yarmohammadian (2006), a strong correlation between leadership behaviours and job satisfaction prevails, citing that employee job satisfaction depends upon the style of leadership of managers.It was realised that a trend emerged from studying the sample group; a participative leadership style of managers dominates where this is a style of leadership in which subordinates are led through a reliance on task-oriented and people-oriented approaches. In Luthans and Doh (2009) findings, participative leaders adopt a non-authoritative tone, empowering employees, together with consulting with them, delegating responsibilities, and enabling mutual decision-making. As well, another study on the influence of leadership style on job satisfaction included 220 individuals coming from diverse industries like manufacturing, education, and overnment. Research findings showed a consistency with the earlier sample study, denoting that task and relational leadership style were positively associated with subordinate job satisfaction (Madlock, 2008). In all, it is essential to bear in mind that participative approach to leadership comprising task and relational behaviours may not be the best â€Å"one style fits all† style of management due to the vast differences among organization’s cultures, leaving one to engage in other styles of leadership where appropriate. (Yarmohammadian, 2006).Among other things, participative leadership is more popular in technologically advanced nations and may increasingly abound as countries mature economically (Luthans & Doh, 2009). Therefore, it is vital to further justify through the current study if job satisfaction increases via participative leadership style. If such a relationship is confirmed, it is assumed that job satisfaction shares a positive association with productivity; participative leadership by managers could potentially boost employee productivity. The Current StudyThe present study examined the relationship between job satisfaction and productivity where respondents are seventy-three employees working in 2 local and 2 foreign banks based in Singapore. The intent is to affirm if employees’ level of work motivation and managerial leadership style gives rise to varying levels of job satisfaction. The participants in the study were Relationship Managers recruited from the sales departments of the local banks, namely United Overseas Bank (UOB) and Post Office Savings Bank (POSB), as well as from the foreign banks Standard Chartered and Citibank N.A. The scope of work required by the employees across the different organizations was similar, with the Relationship Managers being responsible for revenue generation by selling financial products. These organizations were selected f or the present study to ascertain whether job satisfaction relates to employee economic performance in terms of labour productivity. In the banking sales sector, where productivity is measured in terms of financial value of net sales per employee, this provides a pecific measure of the construct and permit correlational analysis with job satisfaction scores, precisely the reason for the choice of the banking sales sector being the main subject of this present research. Three instruments assessing work motivation, leadership style of managers, and job satisfaction were given to the participants. Participants could respond freely to the survey questions according to their own perceptions. Every participant’s labour productivity figures were provided by the respective managers of the four sales departments.Lastly, the Method furnished additional details regarding the assessment instruments. Hypotheses It was anticipated that labour productivity would be positively associated wit h job satisfaction. It was also predicted that both work motivation and employees’ perceived use by managers of participative leadership would be positively related to job satisfaction. Method Participants One Hundred working adults, out of which 50 were females and 50 were males, aged from 21 to 40 (M= 30. 9 years, SD= 5. 37) constitute the respondents for this study.These respondents, each having worked in these banks from 1 to 10 years (M= 5. 41, SD= 2. 58), were chosen from the sales acquisition departments within the main branches of 2 local banks and 2 foreign banks based in Singapore. Materials The tools required for the purposes of the present study come in three different assessments. Firstly, using The Leadership Style Questionnaire by Northouse (2001) measures task and relational leadership style to collate a general leadership profile representative of the participative approach to leadership.According to Anderson, Madlock & Hoffman, 2006 (cited in Madlock 2008), this instrument has reported scale reliabilities ranging from 0. 92 to 0. 95, and comprises 20 items measuring task and relational leadership styles on a 5-point Likert scale (1= strongly disagree to 5= strongly agree). The second instrument, adapted from the Work Motivation Behavior Scale of the Akinboye’s 2001 Executive Behavior Battery, is a 15-item questionnaire incorporating a 4-point Likert scale (1= strongly agree to 4= strongly disagree).The third item measuring job satisfaction was rated by the 8-item Abridged Job in General scale (Russell, Spitzmtiller, Lin, Stanton, Smith & Ironson 2004, cited in Madlock 2008) that was based on a 5-point Likert scale response (1= strongly disagree to 5= strongly agree). The Abridged Job in General scale was reportedly said to have a reliability of 0. 87 (Russell et al. 2004, cited in Madlock 2008). Attached in Appendix 1, 2, and 3 respectively is a copy of the Leadership Style Questionnaire, the Work Motivation Instrument, and the Abridged Job in General scale.Apart from these data obtained from the research instruments, branch department mangers provided the labour productivity of each employee based on the financial value of the nets sales revenue per month per employee for the past 12 months. Procedure A telephone discussion with each of the four banks’ main branch’s sales acquisition departments’ managers on the possibility of conducting a study investigating the links between leadership style, employee motivation, and job satisfaction which in turn predicts productivity was done.After consenting to the terms of the research, the researcher scheduled a half hour for the employees of each of the four banks at a time convenient to them. Meanwhile, delivery of the informed consent form and instructions for the three assessments, packed in an envelope, was arranged to each participant. All participants were given an explanation regarding the nature of the research, including clearing any doubts they might have, pertaining to the research. Sealed envelopes containing the questionnaires completed and handed by the participants to the respective manager would be collected from the latter in a week’s time.On the same day of collection, the month-end financial net sales figures of each employee for the duration of the past 12 months were obtained from the managers in order to compute monthly mean sales revenue figures as an index of labour productivity for each participant Results A computation of statistics for each assessment tool was done. The mean of job satisfaction was 23. 88 (N= 100, SD= 2. 46), the mean work motivation score was 38. 76 (N= 100, SD= 3. 94), while the mean score of employees’ perception of leadership style was 83. 98 (N= 100, SD= 6. 10).Monthly financial net sales figures for the past 12 months of each participant were to yield mean monthly sales revenue figures after which the mean of the averaged monthly sales revenue figures of all participants was found to be 14,265. 62 (N= 100, SD= 2,653. 47). Simple regression regressed productivity on job satisfaction. Results show that job satisfaction was positively associated with productivity, accounting for 20. 04% of the variance in productivity (R= 0. 66, p; . 001). Through multiple regression analysis, it was found that motivation and perceived leadership style affected the varying levels in job satisfaction scores.Work motivation and perceived leadership style were both positively correlated with job satisfaction, accounting for 19. 5% (R= 0. 66, p; . 001) and 16. 26% (R= 0. 24, p; . 001) of the variance in job satisfaction respectively. Discussion The present study, conducted on a pool of white collar professionals, looked into the relationship between labour productivity and job satisfaction, as well as examined whether job satisfaction was associated with work motivation and employees’ perceptions of managerial leadership style.Results tabulated from th e survey which was measured utilizing self, peers or supervisor assessment indicate that job satisfaction was moderately correlated with labour productivity, a finding that lends support to the body of research suggesting that greater job satisfaction is indicative of higher work performance (Argyle, 1989; Saari & Judge, 2004; Shahu & Gole, 2008).However, even when the economic aspect of performance, or more specifically, of labour productivity was examined, average job satisfaction still indicates to be correlated significantly with performance, as consistent with Patterson M, 2004 study of 42 manufacturing companies indicating that company mean overall job satisfaction was significantly associated with and predictive of economic performance.However, even with the result that accounts for such relationship between work productivity and job satisfaction, it is difficult to infer that job satisfaction is the direct cause to that outcome. As it is widely known that correlation does no t equate to causation, it cannot be concluded with certainty that satisfied employees evidence greater productivity as a consequence of their being satisfied with their jobs, as the reverse could be true that productivity actually accounts for job satisfaction or a third variable could influence the outcome of the relationship between both.As for the third variable there is some evidence to suggest that redesigning jobs to enhance job features such as task identity, task significance, skill variety, autonomy, and feedback may increase job satisfaction (Argyle, 1989), as it has been proposed that such features provide job satisfaction (Hackman & Oldham, 1980, cited in Argyle, 1989). What can be extrapolated from the findings of the current study is that job satisfaction makes up a proportion of the variance in employee productivity.This implies that a focus on improving employees’ level of satisfaction with their jobs may elevate labour productivity figures. Motivation and Job Satisfaction The findings obtained from the present study suggest that work motivation is positively associated with job satisfaction. Most research has indicated moderate to substantial correlations between Herzberg’s (1959) job motivator factors and overall job satisfaction (Castillo & Cano, 2004) which is no surprise that there is a positive correlation between both.If motivators such as recognition, achievement, nature of the work, advancement and responsibility determine job satisfaction as purported by Herzberg (1959), then motivating employees via a focus on improving such aspects of a job may serve to make individuals more satisfied with their jobs. Castillo and Cano (2004) found that amongst the job motivator factors that were associated with job satisfaction amongst college faculty members, recognition best explained the variance among faculty members’ overall level of job satisfaction.Interestingly, Herzberg’s (1959) assumption that hygiene factors r elate to or determine dissatisfaction was supported, as it was found that the factor of working conditions was the least motivating aspect of faculty members’ jobs, implying that employees were least satisfied with the context in which their job was performed (Castillo & Cano, 2004).Management may thus need to seek out creative methods to motivate workers by providing opportunities for advancement, achievement, and through the cultivation of a sense of responsibility and autonomy as individuals are motivated to excel because of intrinsic needs such as achievement, recognition, self-development, and meaning derived from performing work. More importantly, what Castillo and Cano’s (2004) findings suggest is that work should provide recognition through acts of notice or praise by colleagues, superiors, and management to increase job satisfaction.In the studies that have reported relationships between job satisfaction and work performance, it has been noted by Argyle (1989) that the correlations are greater for employees in supervisory or professional jobs. Also, job satisfaction predicts performance, with the relationship being even stronger for professional jobs could be due to the possibility that in such jobs, job performance is less contingent on external pressures such as task speed or wage incentives and more on motivation (Argyle, 1989).To the degree therefore that work performance or productivity depends upon employees’ level of job satisfaction, motivation at work holds an indispensable role particularly with respect to white-collar professional jobs in terms of its potential influence on job satisfaction. To conclude if motivation directly determines job performance are well beyond the scope of the current study.Further research is thus warranted in this area that will permit inferences about whether work motivation causes job satisfaction or work performance, or whether job satisfaction instead influences motivation. Leadership Styl e and Job Satisfaction In the present study, leadership style was indicated to be positively related to employee job satisfaction. This finding is of value because it supports the research findings that indicate that leadership behaviour of managers has an important influence on subordinate job satisfaction (Madlock, 2008).It appears from the current findings that as the perceived use by employees of a participative style of leadership in which task-centered and people-centered approaches are combined to lead subordinates, employees are more satisfied with their jobs. Such a finding is of direct relevance to organizations because the present research has also indicated a link between employee job satisfaction and work productivity in such a manner that increased levels of job satisfaction are associated with increased labour productivity.Thus, the extension of the current research by investigating the link between employees’ perceived leadership style of managers and job sati sfaction provides organizations with a further area of focus to potentially maximize job satisfaction and thus to enhance performance of employees. Conclusion The organizational goal of helping employees find satisfaction in their work should be one of paramount importance, as it may be to the mutual benefit of the employer and employee. The present study suggests that employees tend to perform more productively when they are satisfied with their jobs.In order to capitalize on employee job satisfaction to potentially increase performance of employees, ways of maximizing job satisfaction may encompass managing workers by selecting a participative style of leadership, as well as by motivating employees by ensuring that relevant intrinsic needs such as recognition are fulfilled though appropriate restructuring of the job. Such endeavours may then be advantageous for organizations in terms of productivity gains in the likelihood that job satisfaction is improved upon. Appendix 1 LEADERS HIP STYLE AND WORKPLACE QUESTIONNAIREDirections: Think about how often your immediate supervisor engages in the described behaviour. For each item, select the number that best represents the behaviour that your immediate supervisor is most likely to exhibit. 1 Strongly disagree2Disagree 3Neutral 4Agree 5Strongly agree My immediate supervisor†¦ 1. Tells group members what they are supposed to do. 1 2 3 4 5 2. Acts friendly with members of the group. 1 2 3 4 5 3. Sets standards of performance for group members. 1 2 3 4 5 4. Helps others feel comfortable in the group. 1 2 3 4 5 5.Makes suggestions on how to solve problems. 1 2 3 4 5 6. Responds favorably to suggestions made by others. 1 2 3 4 5 7. Makes his or her perspective clear to others. 1 2 3 4 5 8. Treats others fairly. 1 2 3 4 5 9. Develops a plan of action for the group. 1 2 3 4 5 10. Behaves in a predictable manner toward group members. 1 2 3 4 5 11. Defines role responsibilities for each group member. 1 2 3 4 5 12. Comm unicates actively with group members. 1 2 3 4 5 13. Clarifies his or her own role within the group. 1 2 3 4 5 14.Shows concern for the personal well-being of others. 1 2 3 4 5 15. Provides a plan for how the work is to be done. 1 2 3 4 5 16. Shows flexibility in making decisions. 1 2 3 4 5 17. Provides criteria for what is expected of the group. 1 2 3 4 5 18. Discloses thoughts and feelings to group members. 1 2 3 4 5 19. Encourages group members to do quality work. 1 2 3 4 5 20. Helps group members get along. 1 2 3 4 5 Appendix 2 HOW MOTIVATED ARE YOU IN DOING YOUR JOB The following questions ask you how motivated you are in completing your job.Please indicate your response based on the following scale. (1 Strongly Agree to 4 Strongly Disagree) 1. You always put in your best effort in the things you do. 1 2 3 4 2. You exceed what you are suppose to accomplished 1 2 3 4 3. Your environment affects your mood in performing your task 1 2 3 4 4. You have a group of helpful colleagues th at make your work pleasant 1 2 3 4 5. Your pay is low so you perform at the minimum. 1 2 3 4 6. You work just to satisfy your basic needs 1 2 3 4 7. To have career advancement is important to you. 1 2 3 4 8.If you are lowly paid but given recognition for you work, you feel good. 1 2 3 4 9. You feel you are part of the organisation. 1 2 3 4 10. Do you feel enthusiastic about your current job. 1 2 3 4 11. Do you feel enthusiastic if you are given a new job scope 1 2 3 4 12. Are you looking forward to achieve the organisation goal. 1 2 3 4 13. You feel discourage when you are asked to perform a new task 1 2 3 4 14. You feel that you are important to the organisation 1 2 3 4 15. Overall, you feel the organisation plans for your future. 1 2 3 4Appendix 3 HOW SATISFIED ARE YOU WITH YOUR JOB QUESTIONNAIRE The following questions ask you about how you feel about your job at work everyday and how satisfied are you. Please indicate your agreement or disagreement on the following statements by indicating your appropriate response based on the following scale. 1 Strongly disagree2Disagree 3Neutral 4Agree 5Strongly agree 1. At this very moment, I am very enthusiastic about my work. 1 2 3 4 5 2. Right now, I feel fairly satisfied with my present job. 1 2 3 4 5 3. At present, each moment at work seems like it will never end. 1 2 3 4 5 4.At this moment, I am finding enjoyment in my work. 1 2 3 4 5 5. Right now, I consider my job rather unpleasant. 1 2 3 4 5 6. My job gives me a sense of achievement. 1 2 3 4 5 7. The amount of support and guidance I receive from my supervisor. 1 2 3 4 5 8. The overall quality of the supervision I receive in my work. 1 2 3 4 5 References FACTORS EXPLAINING JOB SATISFACTION AMONG FACULTY Jaime X. Castillo, Extension Specialist New Mexico State University Jamie Cano, Associate Professor The Ohio State University Journal of Agricultural Education 1) Locke, E. A. (1976). The nature and causes of job atisfaction. In M. D. Dunnette (Ed. ), Handbook o f industrial and organizational psychology (pp. 1304). Chicago: Rand McNally. 2) Organ, D. W. (1988). Organizational Citizenship Behavior – The Good Soldier Syndrome. (1st ed. ). Lexington, Massachusetts/Toronto: D. C. Heath and Company. 3) Herzberg, F. , Mausner, B. and Snyderman, B. B. (1959), The Motivation to Work. New York: Wiley. 4) Fred Luthans and Jonathan P. Doh, (2009), ‘International Management, Culture, Strategy, and Behavior 7th edition’, Mcgraw Hill, New York 5) http://www. nbrii. com/Employee_Surveys/Satisfaction. html 6) Dailey, R.C. and Kirk, D. J. (1992), â€Å"Distributive and procedural justice as antecedents of job satisfaction and intent to turnover†, Human Relations, Vol. 45, pp. 305-17. 7) West, M. and Patterson, M. (1998), â€Å"Profitable personnel†, People Management, Vol. 4, pp. 28-31. 8) Grant, L. (1998), â€Å"Happy workers, high returns†, Fortune, p. 81. 9) Hian Chye Koh, El'fred H Y Boo feb 2001. The link betwe en organizational ethics and job satisfaction: A study of managers in Singapore, Vol. 29, Iss. 4; p. 309 10) Ackfeldt, A. , & Coote, L. V. (2005). A study of organizational citizenship behaviors in a retail setting.Journal of Business Research, 58(2), 151-159 11) Farh, J. , Podsakoff, P. M. & Organ, D. W. (1990). Accounting for organizational citizenship behavior: Leader fairness and task scope versus satisfaction. Journal of Management, 16(4), 705-721. http://proquest. umi. com. eproxy. ucd. ie/pqdweb? index=5&did=1674096061&SrchMode=1&sid=3&Fmt=6&VInst=PROD&VType=PQD&RQT=309&VName=PQD&TS=1277568831&clientId=13279 12) Ali Mohammad Mosadegh Rad, Mohammad Hossein Yarmohammadian, (2006) â€Å"A study of relationship between managers' leadership style and employees' job satisfaction†, Leadership in Health Services, Vol. 9 Iss: 2, pp. 11 – 28 13) Paul E Madlock. The Journal of Business Communication. Urbana: Jan 2008. Vol. 45, Iss. 1; p. 61 Fishing for the right people Hug h Greenway, Tim Runacre. Training Journal. Ely: Mar 2008. pg. 41, 4 pgs Burney, L. and S. K. Widener. 2007. Strategic performance measurement systems, job- relevant information, and managerial behavioral responses – Role stress and performance. Behavioral Research In Accounting (19): 43-69. Shadare Oluseyi . A, Hammed, T. Ayo 2009 â€Å"Influence of Work Motivation,

Valuating & Financial Prediction of Fortescue Metals Group Ltd

| Valuating & Financial Prediction of Fortescue Metals Group Ltd| AFX9540 BUSINESS FINANCE| | | | Executive Summary This report is written to offer a business analysis of Fortescue Metals Group Ltd (FMG) where there will be a discussion on the background of the company, its return on the pre-post announcement of raising funds, the capital structure during the global financial crisis in comparison to its peers and the estimation on the share valuation in comparison to the actual share value. Fortescue Metals Group (ASX:  FMG) is an Australian iron ore mining company.The company has holdings of more than 87,000 km? in the Pilbara region of Western Australia making it the largest tenement holder in the state. It is listed as FMG on the Australian Securities Exchange (ASX). In 2008, the group loaded its first iron ore shipment bound for China. Fortescue have at least 10 Chinese steel mill contracts lasting for around 10 years. Baosteel was the first company to receive their iron ore. F or the share valuation, the report uses the CAPM model to determine the prevailing cost of capital and also uses the dividend discount multistage model to predict the share price for the company.The components of the CAPM model (i. e. risk free rate, company beta, Market return and growth rate) are calculated and predicted on historical data. The valuation data is then compared with the actual market price of the shares for the corresponding years and a brief analysis is then performed on the economic and internal reasoning behind any variance encountered. Table of Contents Executive Summary2 1. 0Brief overview of the company4 2. 0Capital Structure4 2. 1Funds raised by the company4 2. 2Usage of the fund5 2. 3Announcement date for the issue5 2. 4Share-return pre and post announcement5 2. Market return same period6 2. 6 Market Perception6 2. 7 Effect of recent financial crisis7 3. 0 Valuation of FXJ shares7 3. 1Risk free rate calculation8 3. 2Market rate calculation8 3. 3Beta calculat ion9 3. 4CAPM Calculation10 3. 5Growth rate calculation10 3. 6Share valuation11 3. 7Comparison of valuation vs. actual data12 3. 8 Evaluation of the variation13 4. 0 Conclusion13 Appendix 1: Cash rate target14 Appendix 2: Market data for beta calculation14 Reference & Bibliography†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 16 . 0General background of the Firm Fortescue Metals Group Ltd is the New Force in Iron Ore and has joined the world's leading producers of iron ore. Since the Company was formed in 2003, its extraordinary growth has been unparalleled. Listed in the S;P/ASX 50 share index, Fortescue has firmly established itself as one of the world's largest producers and sea-borne traders of iron ore. From Construction to Production Construction of Fort escue's port, rail and mine project commenced in February 2006 with the turning of the first sod at the Company's port site at Anderson Point in Port Hedland.Just two years later in 2008, the open-access rail infrastructure was complete and  operations were underway  at the Fortescue Herb Elliott Port and at the Company's first minesite, Cloudbreak. Shipping started on 15 May 2008 and Project Completion was achieved within months. On 18 July 2008, Fortescue's fifth anniversary, the Company successfully mined, railed and shipped at a rate of 24mtpa (Million ton per annum) for a one month period. In the first full year of operations, Fortescue mined, railed and shipped more than 27 million tonnes of iron ore to customers in China. FinanceFortescue's project was founded on the raising of A$3. 7 billion capital, including A$1 billion equity, during two finance road shows in August 2006 and July 2007. The August 2006 raising was the largest single high-yield Asia-Pacific transaction, the largest high-yield bond project financing ever, one of the largest corporate bonds out of Australia and one of the largest global bond issues in the sector. Since then Fortescue has grown to become an S;P/ASX 50 company. Over 55,000 Australians have become shareholders in the proudly Australian founded and managed company.A substantial increase in Fortescue's Resource Inventory to 10. 03 billion tonnes in March 2011, including 1. 6 billion  tonnes of Reserves,  positioned the company as one of the world's major resource houses. This massive Resource Inventory was achieved in record time and was delineated from approximately 10 per cent of  Fortescue's 88,000 square kilometres of Pilbara tenements. 2. 0Capital Structure of the Firm 2. 1Funds raised by the company 1,326,316 number of Ordinary Shares were issued to generate A$6. 3 million. 2. 2Purpose of Fund 1,326,316 number of Ordinary Shares were issued as payment for a distribution of A$6. million due under the A$140m, R edeemable Preference Share issued with maturity on or before February 2017. 2. 3Announcement date of the issue The initial announcement date for this issue of the Ordinary Share was 15th September 2010. 2. 4Share return from two days before the announcement date to two days after the announcement. Holding Period Return=Ending Price-Beginning PriceBeginning Price ? 100 Holding Period Return=p1-p0p0 ? 100; P1 = Ending Price, P0 = Beginning Price | Date| Open| High| ow| Close| Volume| Adj Close*| 17 Sep 2010| 4. 87| 4. 92| 4. 83| 4. 84| 25,307,700| 4. 82| 16 Sep 2010| 5. 2| 5. 02| 4. 85| 4. 86| 15,360,000| 4. 84| 15 Sep 2010| 5. 03| 5. 08| 4. 99| 5. 03| 11,614,800| 5. 01| 14 S p 2010| 4. 99| 5. 07| 4. 97| 5. 02| 10,319,500| 5. 00| 13 Sep 2010| 4. 91| 5. 01| 4. 90| 4. 97| 14,643,800| 4. 95| | Closing price adjusted for dividend and splits Before the Announcement Date: Holding Period Return=p1-p0p0 ? 100 So, HPR=5. 02-4. 914. 91 ? 100 = 2. 24% After the Announcement Date: Holding Period Return=p1-p0p0 ? 100 So, HPR=4. 84-5. 025. 02 ? 100 = -3. 59% 2. 5Market Return same period | Date| Open| High| Low| Close| Volume| Adj Close*| 17 Sep 2010| 4,657. 70| 4,692. 50| 4,657. 0| 4,685. 10| 1,523,846,600| 4,685. 10| 16 Sep 2010| 4,703. 00| 4,707. 70| 4,648. 90| 4,650. 00| 1,813,657,000| 4,650. 00| 15 Sep 2010| 4,670. 10| 4,710. 50| 4,669. 90| 4,702. 70| 1,644,565,600| 4,702. 70| 14 Sep 2010| 4,661. 40| 4,688. 90| 4,661. 10| 4,669. 10| 1,422,233,600| 4,669. 10| 13 Sep 2010| 4,613. 30| 4,660. 90| 4,612. 70| 4,654. 20| 1,433,713,600| 4,654. 20| Closing price adjusted for dividend and splits Holding Period Return=Ending Price-Beginning PriceBeginning Price ? 100 Holding Period Return=p1-p0p0 ? 100; P1 = Ending Price, P0 = Beginning Price Before the Announcement Date:Holding Period Return=p1-p0p0 ? 100 So, HPR=4669. 10-4613. 304613. 30 ? 100 = 1. 21% After the Announcement Date: Holding Period Return=p1-p0p0 ? 100 So, HPR=4685. 10-47034703 ? 100 = -0. 38% 2. 6Market Perception From the above analysis it can be seen that the share performance of the company and the market was stable during the pre and post two days of the announcement. Previously before the announcement the performance of both is going the similar path (upward movement). On the other hand post announcement illustrated negative result (-3. 59% against -0. 38%) for Fortescue Metals Group Ltd.There might be two causes behind this; one, the share price have been over estimated for which the price had to be adjusted. Secondly, the investors did not take the fund raising issue positively as they might think it would not generate much fund for the company’s growth and thus unable to generate enough wealth for them. 2. 7Effect of recent financial crisis | | BlueScope| Fortescue Metals| Mount Gibson| OneSteel| Net Gearing| 2007| 0%| 0%| 0%| 46. 65%| | 2008| 0%| 0%| 25. 42%| 56. 72%| | 2009| 0%| 9%| 6. 29%| 28. 22%| | 2010| 14. 82%| 169. 90%| 3. 97%| 21. 45%| | 2011| 24. 43%| 183. 43%| -| 38. 36%|Table 1: Gearing ratio-peer analysis of Fortescue Metals Group Ltd. We can conclude that the recent financial crisis did not affect the industry’s capital structure. As of now the mining industry is going boom. In the time of recession, most of the companies will not have enough profit to repay a debt so; investors are more interested in investing in mining industry rather than some other industry. By using the gearing ratio, it can be seen that Fortescue’s degree of leverage is higher, the more higher the  company is considered risky. However Fortescue Metals Ltd is very strong with their high growth rate compared to its competitors.For them paying off the debt would not be a big issue as they are enjoying three benefits which are; one, mining industry is going boom; two, Australian dollar (AUD) getting stronger; and three, Fortescue’s operations are well placed to maintain the 55mtpa rate across the 2012 financial year while development to 155mtpa conti nues in a mixture of brownfields and greenfields projects, scheduled to take place through to June 2013. 3. 0Valuation of shares The dividend discount multistage model is a procedure for valuing the price of a stock by using predicted dividends and discounting them back to present value.The idea is that if the value obtained from the dividend discount multistage model is higher than what the shares are currently trading at, then the stock is undervalued. Formula P0 = D11+R The required return can be calculated using the CAPM (capital asset pricing model) model, which becomes the cost capital of the project. Formula CAPM: E(r)= Rf+[? i (Rm-Rf)] 3. 1Risk free rate calculation The benchmark interest rate in Australia was last reported at 4. 75 percent. In Australia, interest rates decisions are taken by the Reserve Bank of Australia's Board.The interest rate needs to be adjusted yearly using the Effective Annual Rate. EAR = (1+in)n-1 EAR| 2011| 2010| 2009| Calculation| (1+. 0475/365)36 5-1| (1+. 0396/365)365-1| (1+. 0479/365)365-1| Rf| 4. 86%| 4. 03%| 4. 90%| Table 2: Risk Free rate 3. 2Market rate calculation The calculation of market return will include statistics from 5 years to counteract any data abnormality from recession or seasonal spikes. | 2005| 2006| 2007| 2008| 2009| 2010| 2011| Calculation| 4,229. 93,546. 1-1| 5,034. 04,225. 9-1| 6,310. 65035. 4-1| 3,947. 85,345. 8-1| 3,947. 85,345. 8-1| 4,324. 83,934. 4-1| 4,659. 84,309. -1| Return| 0. 1928| 0. 1912| 0. 2532| -0. 1549| -0. 2615| 0. 0992| 0. 0811| Average Market return based on five years performance is: Rm2011 = (0. 2532-0. 1549-0. 2615+0. 0992+0. 0811)5 = 0. 0034 = 0. 34% Rm2010 = (0. 1912+. 2532-0. 1549-0. 2615+0. 0992)5 = 0. 0254 = 2. 54% Rm2009 = (0. 1928+0. 1912+0. 2532-0. 1549-0. 2615)5 = 0. 04416 = 4. 42% 3. 3Beta calculation: The beta is taken from FinAnalysis. Beta (? ) is a number describing the relation of its returns with those of the financial market as a whole. The beta coefficient is a key parameter in the capital asset pricing model (CAPM).It measures the part of the asset's statistical variance that cannot be removed by the diversification provided by the portfolio of many risky assets, because of the correlation of its returns with the returns of the other assets that are in the portfolio. Formula for Beta is: i=1n[Ri-ER]2n-1 Data from 2009 to 2011 has been used and a data of 3 years is used to calculate the beta. | 2009| 2010| 2011| ?| 0. 91| 0. 80| 0. 88| A beta of greater than 1 indicates that the security's price will be more volatile than the market. Fortescue Metals Ltd has a beta of 0. 88; therefore it is less volatile than the market. 3. CAPM Calculation: Hence, using Capital Asset Pricing Model (CAPM) as Required Return E(r)= Rf+[? i (Rm-Rf)] | 2009| 2010| 2011| Calculation| 4. 90% + [0. 88(4. 42%-4. 90%)]| 4. 03% + [0. 88(2. 54%-4. 03%)]| 4. 86% + [0. 88(0. 34%-4. 86%)]| Return| 4. 48%| 2. 72%| 0. 88%| Table 4: Cost of Capital 3. 5Growth Rate Calcula tion Growth rate calculation represents the  compounded annualized rate of growth of a company's revenues, earnings, dividends, etc. The formula for growth rate = Return on equity X Plowback ratio = ROE ? (1-DividendEPS) This growth rate will be used for the calculation of share prices for the last three years.ROE, DIV and EPS from 2009 to 2011 are shown below: | 2009| 2010| 2011| ROE| 13. 62%| 51. 57%| 75. 36%| DIV ($)| -| -| 7. 0| EPS ($)| 21. 90| 22. 12| 31. 88| Table 5: Financial data g2011 = ROE(2011) (1- Div(2011)/EPS(2011)) = 75. 36%(1-7/31. 88)= 58. 81% g2010 = ROE(2010) (1- Div(2010)/EPS(2010)) = 51. 57%(1-0/22. 12)= 51. 57% g2009 = ROE(2009) (1- Div(2009)/EPS(2009)) = 13. 62%(1-0/21. 90)= 13. 62% Below is the summary of the data discussed: Components| 2009| 2010| 2011| Er| 4. 48%| 2. 72%| 0. 88%| Rf| 4. 86%| 4. 03%| 4. 90%| Rm| 4. 42%| 2. 54%| 0. 34%| ?i| 0. 91| 0. 80| 0. 88| | 13. 62%| 51. 57%| 58. 81%| Table 6: Summarisation of component 3. 6Share Valuation To calculat e the value of the shares, we need to determine the method of valuation so; mixed stage dividend model can be used to calculate the value of the share. Bearing in mind the business nature, we can see an average of 41. 33% growth which is abnormally high. For the purpose of calculation we will presume this high growth rate will continue for another 40-45 years at least. As it is a new mining company and as we know that the return comes late so, the growth rate is high even after a long term.From 2053 onwards we assume that the business will grow at 7% rate, which we believe is a conservative approach, as because by then there will be many mining companies opening both domestically and internationally. China is progressing very fast and by next 15-20 years they will level up, not just China; India, South Africa, South America etc are also catching-up fast, so due to the high competition the market would not remain the same and it will change consecutively as forecasted. The valuation calculation will take this assumption towards establishing the model. P2009=i=20092012D0 (1+g)i(1+Ke)i + Pi(1+Ke)iP2010=i=20102012D0 (1+g)i(1+Ke)i + Pi(1+Ke)i P2011=i=20112012D0 (1+g)i(1+Ke)i + Pi(1+Ke)i | Growth Rate| Net Cash Flow| Cost of Capital| | D2009| | -13,643| 4. 48%| | D2010| | 1,877,963| 2. 72%| | D2011| 41. 33%| 4,206,365| 0. 88%| | D2012| 50%| 4,906,922| 0. 92%| | D2013| 55%| 6,767,080. 65| 0. 99%| | D2014| 60%| 10,435,594. 64| 0. 99%| | D2015| 60%| 16,587,385. 22| 0. 96%| | D2016| 60%| 26,477,415. 36| 0. 98%| | D2017| 60%| 42,346,454. 77| 1%| | D2018| 60%| 67,743,188. 44| 0. 95%| | D2019| 60%| 108,379,297. 7| 0. 96%| | D2020| 60%| 173,398,415. 1| 0. 98%| | D2021| 60%| 277,429,356. 2| 1%| |D2022| 60%| 443,881,664. 5| 0. 98%| | -| -| -| -| | D2052| 8. 19%| 13,101,273,811| 0. 98%| | D2053| 7%| 22,933,861. 67| 0. 98%| | | P2009| 3. 89| | P2010| 3. 61| | P2011| 5. 46| Table 7: Summary calculation 3. 7Comparison of valuation vs. actual data From the valuation calculated thr ough the process, now we will compare that with the actual data from the market. Year| Valuation Data| Actual Data| Variance| Comment| 2009| 3. 89| 3. 64| -6. 40%| Undervalued| 2010| 3. 61| 3. 96| 9. 64%| Overvalued| 2011| 5. 46| 5. 98| 9. 43%| Overvalued| Table 8: comparison of actual and calculated data 3. Evaluation of the variation The valuation of the shares seems to be in the right track compared with the market trend. Nevertheless, post state gives a more variable scenario. Dividend was replaced by using the net operation Cash Flow per share. The operation cash flow only represents the cash flow in the company’s operation activities; whilst the company also have investing activities and financing activities. Thus, only use of the operation cash flow in the valuation has a high percentage of uncertainty. According to the table above, the actual price is undervalued.The valuation can be endorsed to the lower than expected risk premium in the market resulting from the con trolled risk free rate determined by the government. Another issue can be AUD getting stronger compared to USD, resulting additional dent on the nominal cost of capital for the company. In the later part of the table, the actual price is overvalued. In order to illustrate this phenomenon, one possible reason is inflation. Inflation is an overall general rise in prices. As we know, global financial crisis happened few years back, the effect of the financial crisis was significant on the whole market and caused inflation.Therefore, due to inflation, the market prices are higher than the actual prices. Another possible reason is some unpredicted economic/natural events happened during this period and lead to movements of the market price. On the other hand the factors can be attributed to the assumptions and predictions using the calculation components. CAPM formula and Beta calculation has its own risk and de-merits. The growth rate is strongly manipulated by the industry’s lan dscape, economic status and political issues.The information available could also affect the actual share prices in the market which will impact on decision making for share buyers/sellers. The share price valuation will be varied from one investor to another depends on their information. As there is an existence of asymmetric information in the market, one cannot estimate the share price exactly the same with the actual share price. Besides, the investors behaviour are different between one another, hence, the pattern of the actual share price is not only based on market returns in general, but also depends on whether the level of the risk that the investors are willing to bear. . 0Conclusion In conclusion, we need to consider about inflation and unpredicted events when we investigate the market price. In addition, we need to distinguish nominal interest rate and real interest rate when we calculate. Appendix 1: Cash rate target: Effective date| New cash rate| Adjusted cash rate| | | 2011| 4. 75| 5 May 2010| 4. 75| 2010| 3. 96| 7 Apr 2010| 4. 50| | | 3 Mar 2010| 4. 25| | | 2 Dec 2009| 4. 00| | | 4 Nov 2009| 3. 75| | | 7 Oct 2009| 3. 50| | | 8 Apr 2009| 3. 00| | | 4 Feb 2009| 3. 25| 2009| 4. 79| 3 Dec 2008| 4. 25| | | 5 Nov 2008| 5. 25| | | 8 Oct 2008| 6. 00| | | 3 Sep 2008| 7. 00| | |Appendix 2: Market Data for beta calculation: Date| Open| High| Low| Close| Volume| Adj Close| 3/10/2011| 0. 81| 0. 94| 0. 79| 0. 89| 18267300| 0. 89| 1/09/2011| 0. 85| 0. 9| 0. 74| 0. 82| 16091200| 0. 82| 1/08/2011| 0. 87| 0. 92| 0. 68| 0. 85| 15948300| 0. 85| 1/07/2011| 0. 98| 1. 01| 0. 86| 0. 88| 11603100| 0. 88| 1/06/2011| 1. 09| 1. 09| 0. 94| 0. 98| 17479100| 0. 98| 2/05/2011| 1. 32| 1. 33| 1. 03| 1. 08| 21843500| 1. 08| 1/04/2011| 1. 29| 1. 37| 1. 25| 1. 32| 17067200| 1. 32| 1/03/2011| 1. 29| 1. 3| 1. 17| 1. 29| 18402900| 1. 29| 1/02/2011| 1. 34| 1. 46| 1. 28| 1. 3| 14583200| 1. 3| 4/01/2011| 1. 4| 1. 42| 1. 33| 1. 35| 10259000| 1. 5| 1/12/2010| 1. 37| 1. 46| 1. 36| 1. 4| 1 8060000| 1. 4| 1/11/2010| 1. 44| 1. 49| 1. 32| 1. 37| 15254000| 1. 37| 1/10/2010| 1. 45| 1. 55| 1. 4| 1. 45| 12209300| 1. 45| 1/09/2010| 1. 47| 1. 57| 1. 44| 1. 47| 10714700| 1. 47| 2/08/2010| 1. 48| 1. 52| 1. 33| 1. 44| 12983000| 1. 43| 1/07/2010| 1. 3| 1. 51| 1. 29| 1. 48| 10254300| 1. 46| 1/06/2010| 1. 52| 1. 52| 1. 26| 1. 32| 17287600| 1. 3| 3/05/2010| 1. 72| 1. 76| 1. 4| 1. 51| 19697600| 1. 5| 1/04/2010| 1. 79| 1. 83| 1. 72| 1. 73| 12311100| 1. 71| 1/03/2010| 1. 62| 1. 86| 1. 62| 1. 8| 16808300| 1. 78| 1/02/2010| 1. 7| 1. 88| 1. 64| 1. 65| 17412500| 1. 63| 4/01/2010| 1. 74| 1. 88| 1. 7| 1. 73| 13261300| 1. 71| 1/12/2009| 1. 63| 1. 75| 1. 56| 1. 74| 8904800| 1. 72| 2/11/2009| 1. 55| 1. 77| 1. 52| 1. 63| 11449600| 1. 62| 1/10/2009| 1. 72| 1. 8| 1. 52| 1. 61| 14759100| 1. 59| 1/09/2009| 1. 46| 1. 75| 1. 42| 1. 72| 18761900| 1. 7| 3/08/2009| 1. 49| 1. 55| 1. 4| 1. 47| 18455600| 1. 46| 1/07/2009| 1. 19| 1. 48| 1. 07| 1. 48| 15136300| 1. 46| 1/06/2009| 1. 15| 1. 35| 1. 15| 1. 22| 156 24600| 1. 21| 1/05/2009| 1. 18| 1. 18| 0. 99| 1. 14| 15047200| 1. 13| 1/04/2009| 1. 01| 1. 19| 1. 01| 1. 18| 16260500| 1. 17| 2/03/2009| 0. 95| 1. 08| 0. 8| 1. 01| 18923300| 1. 01| 2/02/2009| 1. 35| 1. 39| 0. 92| 1. 08| 9490000| 1. 07| /01/2009| 1. 64| 1. 76| 1. 25| 1. 4| 5383300| 1. 39| 1/12/2008| 1. 4| 1. 67| 1. 33| 1. 63| 7776700| 1. 62| 3/11/2008| 1. 94| 2. 09| 1. 12| 1. 35| 8740000| 1. 34| 1/10/2008| 2. 75| 2. 76| 1. 85| 1. 92| 6877000| 1. 9| 1/09/2008| 2. 82| 3. 11| 2. 59| 2. 64| 7193700| 2. 62| 1/08/2008| 2. 65| 3. 05| 2. 58| 2. 82| 10400800| 2. 79| 1/07/2008| 2. 9| 3. 2| 2. 57| 2. 75| 8612800| 2. 72| References & Bibliography * http://www. asx. com. au/asx/research/companyInfo. do? by=asxCode&asxCode=FMG * http://www. investsmart. com. au/shares/asx/Fortescue-Metals-Group-FMG. asp * http://www. fxj. com. au/shareholders/Fairfax_AnnualReport_2011. df * http://www. fmgl. com. au/IRM/Company/ShowPage. aspx/PDFs/2147-13354473/Appendix3 bAllotmentofShares * http://au. finance. ya hoo. com/q/ao? s=FMG. AX * http://datanalysis. morningstar. com. au. ezproxy. lib. monash. edu. au/af/company/issuedcapital? ASXCode=FMG&page=1&resultsperpage=25&xsl_predicate=&xsl_start_year=1999&xsl_end_year=2011&active=ISU_Sec1&xsl_start_date=1999-01-01&xsl_end_date=2011-12-31&xtm-licensee=dat#Active_ISU_Sec2 * http://www. asx. com. au/asx/statistics/announcements. do? by=asxCode&asxCode=fmg&timeframe=Y&year=2010 * http://www. specthuntley. com. au. ezproxy. lib. monash. edu. au/af/company/mainview? ASXCode=FMG * http://au. finance. yahoo. com/q/hp? s=FMG. AX&a=06&b=1&c=2008&d=05&e=30&f=2011&g=m * http://www. asx. com. au/research/market-statistics. htm ——————————————– [ 1 ]. http://www. fmgl. com. au/IRM/Company/ShowPage. aspx/PDFs/2147-13354473/Appendix3bAllotmentofShares [ 2 ]. http://au. finance. yahoo. com/q/hp? s=FMG. AX&a=08&b=13&c=2010&d=08&e=17&f=2010&g=d [ 3 ]. http: //au. finance. yahoo. com/q/hp? s=%5EAORD&a=08&b=13&c=2010&d=08&e=17&f=2010&g=d [ 4 ]. ttp://www. bluescopesteel. com/investors/annual-reports [ 5 ]. http://www. igo. com. au/IRM/content/investor/annualreports. htm [ 6 ]. http://www. mtgibsoniron. com. au/pages2/InvestRelations. aspx? PageID=IR_AR [ 7 ]. http://www. aspecthuntley. com. au. ezproxy. lib. monash. edu. au/af/company/annualratios? ASXCode=OST&xtm-licensee=finanalysis [ 8 ]. http://www. investopedia. com/terms/d/ddm. asp#axzz1aBqlpkfj Table 3: Market return [ 9 ]. http://www. tradingeconomics. com/australia/interest-rate [ 10 ]. http://www. aspecthuntley. com. au. ezproxy. lib. monash. edu. au/af/company/annualps

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Project 3 Information System Security Plans - Research Paper Example Then, with todays rapidly changing political, economic, and importantly technical environment increasing the threat for the federal agencies, it becomes paramount for those agencies to adopt a strong security plan. In that direction, the Information Technology Laboratory (ITL) at the National Institute of Standards and Technology (NIST) has developed guidelines on the ways to formulate and adopt a security plan. â€Å"NIST SP 800-53 contains the management, operational, and technical safeguards or countermeasures prescribed for an information system† (Swanson, Hash & Bowen, 2006). Among the various parts of the NIST’ security plan, the focus will be on the four sections of General Description, System Environment, Laws, regulations, and policies, and finally Security Control Selection. So, when a federal agency like Department of Defense (DoD) adopts a security plan, these four sections can contribute optimally to the process and so the discussion will about why are thes e sections are important and how they can be applied in DoD. All federal agencies or systems including DoD reflect some to extreme level of sensitivity and because of that it requires protection for its physical IS system and its virtual data as part of secured and good management practice. In that direction, DoD adopted a risk-focused security plan and guidelines of NIST in 2014 after dropping its longstanding DoD Information Assurance Certification and Accreditation Process (DIACAP). DoD transitioned to NIST considering its effectiveness, in-depth focus and at the same user-friendly nature. â€Å"The NIST library of security controls (in NIST publication 800-53 Rev. 4), currently in use at most civilian agencies, are much larger and the controls more granular, yet easier to understand and implement, than DIACAP, say those familiar with both methods†

Business Conditions Analysis (1) Essay Example | Topics and Well Written Essays - 500 words

Business Conditions Analysis (1) - Essay Example During this time span, there is considerable amount of decline or downfall in the economic activities. On the other hand, the definition of expansion, which is used by the committee, is that it is the time span between the trough and peak of the economic cycle. During this time span, the economic activities increase by a considerable rate (NBER(a)). The method used by the committee for determining the dates of the important events of the business cycle is inefficient in terms of identifying temporary shifts in the recession and expansion. As, the committee only take its decisions on the basis of the pre-defined definitions and has no method of identifying that the contraction or expansion are only temporary interruptions or actual (NBER(a)). Along with this, there is no appropriate definition of economic activity. For this purpose, the committee takes help from different economic measures which are used to determine the overall broad activity. Some of these measures, which are used by the committee, are product based real Gross Domestic Product (GDP), income based real Gross Domestic Product (GDP), and the real income of the economy (NBER(a)). Apart from these broad economic indicators, Business Cycle Dating Committee also sometime uses the narrow economic indicators which are not able to cover the whole economy, for example the industrial production determine by the index of the Federal Reserve and the real sales. Although, use of these narrow economic indicators along with the broad economic indicators can result in the problem of double counting the of the industries and sectors included in both indicators but still these narrow economic indicators can be beneficial when there is conflict between the broad indicators (NBER(a)). It is also important to establish, that the method used by the committee for the determining peaks and troughs is completely different from the two