Capital structure Research Paper Example | Topics and Well Written Essays - 2500 words

Capital structure - Research Paper Example ure of an organization; however, the uptake of debt has several implications to a business, first, debt leads to an organization having to increase the business risk. The enterprise’s business risk goes up due to its high contribution to the enterprise, in this case, the high contribution of debt such as in option one leads to the debt holders having a high control of the enterprise. As a result, the organization or investment becomes vulnerable for takeover, if the business does not meet the interest payments, as goes into bankruptcy. Secondly, reduces the stake of the enterprise shareholders in that they have to work on servicing the debt at the expense of making profits, which a business’s prime objective(Martin & Baker, 2013). In the consideration of debt options, it is important to consider the debt period, in most cases, long-range debts are highly favorable since the organization utilizes the funds for a long period before repaying the sum value of the bond. Hence, the organization is able to enjoy a return on the investment and even re-invest the excess funds or paid dividends to equity and other shareholders in the business. Short time range bonds such as option three, four and five negatively affects business shareholders, this is because, the business is forced to source for funds and pay the creditors irrespective of whether it has generated profits or not, the bottom line is that the business has a responsibility to repay the funds within the agreed period. Given the long-term nature of projects, the funding requirement leads to complications, as the return may not be realized in good time to pay the sum value as per that date. When this situation arises, the business becomes ripe for takeover according to the provisions of business law. In the light of these, careful considerations have to be made before the business can settle on certain kinds of financing and the activities upon which funding is needed. Careful evaluation can give the

Motivation In The Workplace Essay Example | Topics and Well Written Essays - 2250 words

Motivation In The Workplace - Essay Example For managers to set effective motivation strategies, they need to understand that they cannot make the employees do anything. What they can do is to create the right settings that will motivate the workers. Motivated workforces are more productive since motivation infuses positive energy into the organizational tasks. Motivation is applicable to the open-system perspectives, the organizational learning perspectives; the high-performance work practices perspectives, and the stakeholder perspectives. The high-performance work practices perspective Workplace motivation is a very complex issue to many managers since the system of motivation is not constant, but it alters. The workforces’ motivation can be looked in two perspectives, which includes the internal and external motivators (Stein 2007). All the motivators are the practices, which can lead to high performances in a corporate. Some of the motivators entail the positive reinforcement, right ways to discipline the workers, fair treatment, workers’ needs satisfaction, setting of goals, restructuring jobs, and setting the best reward systems (Stein 2007). Fair treatment The leaders of organizations should ensure that all individuals are treated fairly and equally. Fair treatment will motivate employees to partake actively in the work place tasks, and this augments their performance (Podmoroff 2005). Fair treatment augments cooperation, which increases the outputs too. If the managers treat the workers fairly, it will increase their loyalty to the organization. Workers loyalty is very vital in any firm since it makes the workers committed to their tasks. For example, an organization is fair when an employer asks for a special consideration and he, or she is denied because another employee was denied some times back. In addition, fairness in a firm can be shown when an employee who always comes to work on time daily, is not treated the same as the one who comes to work when late every day (Podmoroff 2005). Setting organizational goals In all companies, the leaders should sett goal so that the performance of the workforce is escalated. The goals are v ital since the workers will know what they need to produce and this can make them to devise new ways of production. Goals are effective in raising performance especially if they are difficult but easy to attain. Too difficult goals can demoralize the employees and this can make the performances suffer. In order to ensure that the workers are motivated by the goals and to increase their commitment, the managers should ensure that the workforces accept the goals. Goal setting is a useful way of motivating employees because the workers will work towards the set goals in a motivated way. For goal setting to be effective in motivating the workforce, the leaders should ensure that they regularly give feedbacks regarding the achievements. This is vital since the workers will be convinced that the goals they set are practicable. Additionally, the goals should be very specific and not vague or too general. For those workers who have realized their set goals, they should be recognized by rewa rding them to further motivate them. The realization of goals implies that the workers’ performances have increased (Salvendy 2012, p.413). Positive reinforcement Positive reinforcement is the way a firm strengthens the desirable behaviours by rewarding them. If the corporate leaders praise the workforce for behaving in certain ways, there are high chances the workers will continue behaving in the same ways so that they can get more praises. Positive reinforcement is vital in increasing the firm’s performance. If behaving in certain ways can make the organization realize its goals faster, the leaders of