Topics Covered Discounted Cash Flows. NetProfits OIncremental Cash Flows STreatment of Inflation Separation of Investment Financing Decisions SExample: Blooper Industries Irwin/McGraw-Hill

How Firms Organize Their Investment Process Some “What If” Questions Sensitivity Analysis Break Even Analysis Flexibility in Capital Budgeting Decision Trees Options

Managing Organizational Change Change is an inevitable, pervasive, persistent, and permanent condition for all organizations Organizations' futures depend on their ability to master change Effective managers must view managing planned

Organizational Structure and Design Manager Subordinate Subordinate Subordinate Organizational Design Purposeful and goal-oriented process Decisions/actions to predetermine the way employees do their work Organizational structure Relatively stable relationships and processes of the organization

Types of Decisions Programmed Nonprogrammed Repetitive and routine Novel and unstructured decisions and where a decisions required for definitive procedure is unique and complex developed to handle them management problems. McGraw-HillInwin

Communication Defined The transmission of information and understanding through the use of common symbols from one person to another Common symbols may be

Vroom-Jago Leadership Model Based on the Vroom-Yetton Model Normative model or set guidelines Situations determine appropriateness of degrees of participative decision-making No one single leadership style was appropriate Leader needs to be flexible to change styles to fit specific situations

Leadership Defined The process of influencing other to facilitate the attainment of organizationally relevant goals. Three Important Variables People Who are being lead Task What people are performing Environment

The Concept of Power POWER INFLUENCE e Relationship between two Relationship between people two people o The potential to influence Induce someone to e capability to get someone behave in a certain to do something

Contemporary Perspective on Intergroup Conflict CONFLICT FUNCTIONAL DYSFUNCTIONAL Confrontation between Confrontation or groups that enhances interaction between and benefits the groups that harms the