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The rinsing of the shield hero
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Introduction to Hedging Instruments: Forwards, Futures, Options, and Swaps Hedging instruments are financial tools used by businesses and investors to mitigate risk. These instruments help protect against adverse price movements in assets such as commodities, currencies, interest rates, or securities. The four main hedging instruments are forwards, futures, options, and swaps. 1. Forwards A forward contract is a customised agreement between two parties to buy or sell an asset at a predetermined price on a specified future date. Key Characteristics: Over-the-counter (OTC): Traded directly between parties, not on an exchange. Customisation: Can be tailored to suit the needs of the parties involved. Settlement: Occurs at the end of the contract, which may involve physical delivery or cash settlement. Risk: Forwards carry counter-party risk, as there is a possibility one party may default. Example: A company that needs to import raw materials in six months may enter into a forward contract to lock in the current price, avoiding the risk of price increases. 2. Futures A futures contract is similar to a forward, but it is standardised and traded on an exchange. This standardisation eliminates counter-party risk. Key Characteristics: Standardised: Contract size, expiration, and other terms are fixed by the exchange. Mark-to-market: Gains and losses are settled daily. Liquidity: Futures are highly liquid because they are traded on exchanges. Regulation: As they are traded on formal exchanges, they are more regulated than forwards. Example: A wheat farmer may sell futures contracts to hedge against a possible decline in wheat prices before harvest. 3. Options Options provide the right, but not the obligation, to buy or sell an asset at a specified price on or before a certain date. There are two types of options: call options and put options. Call Option: Gives the holder the right to buy an asset at a predetermined price. Put Option: Gives the holder the right to sell an asset at a predetermined price. Key Characteristics: Premium: The buyer pays a premium upfront to obtain the option. Limited Risk: The maximum loss is limited to the premium paid. Flexibility: Options can be used for speculative or hedging purposes. Example: An investor holding stocks may buy a put option to protect against potential declines in the stock's price. 4. Swaps A swap is a contract in which two parties agree to exchange cash flows or liabilities over a specific period. The most common types are interest rate swaps and currency swaps. Key Characteristics: Customizable: Like forwards, swaps are often tailored to meet the needs of the parties involved. Counterparty Risk: Swaps are typically OTC instruments, exposing parties to default risk. Common Uses: Used to manage interest rate risk or currency risk. Example: A company with a variablerate loan may enter into an interest rate swap to exchange its variable payments for fixedrate payments, thus locking in stable costs. Hedging instruments are essential for managing financial risk in volatile markets. Each instrument serves different purposes, with varying levels of complexity, risk, and customization. Whether through forwards, futures, options, or swaps, businesses can better plan for the future by reducing exposure to uncertain price fluctuations. Hedging Strategies for Market Risk, Credit Risk, and Currency Risk 1. Hedging Strategies for Market Risk Market risk (also known as systematic risk) arises from fluctuations in asset prices, such as stocks, bonds, commodities, and interest rates, due to economic factors or market volatility. Key Hedging Instruments for Market Risk: Derivatives (Options, Futures, and Forwards): These instruments allow investors to hedge against unfavorable price movements in stocks, commodities, or interest rates. Example: An investor holding a large stock portfolio might buy a put option to protect against a potential market downturn. If the market declines, the put option increases in value, offsetting losses in the portfolio. Short Selling: Investors can sell borrowed assets with the expectation of buying them back at a lower price, profiting from the decline. Example: A fund manager expecting a market decline may short sell stocks to hedge a portfolio against losses. Common Hedging Strategies: Portfolio Diversification: Reducing market risk by spreading investments across various asset classes (stocks, bonds, commodities) and sectors. Using Index Futures: Large portfolios can be hedged using index futures that track the performance of the overall market. If the market declines, profits from the short position in the futures contract will offset losses in the portfolio. Risk Parity: Allocating assets based on the level of risk rather than the dollar amount invested, balancing risk exposure across asset classes. 2. Hedging Strategies for Credit Risk Credit risk refers to the possibility that a borrower will default on a debt obligation. This is especially important for banks, lenders, and institutions dealing with bonds and loans. Key Hedging Instruments for Credit Risk: Credit Default Swaps (CDS): A financial derivative where the buyer of a CDS pays a premium to the seller in exchange for protection against a default on a loan or bond. Example: A bank holding corporate bonds can buy a CDS to ensure they are compensated if the issuing company defaults. Collateralised Debt Obligations (CDOs): These instruments pool together various debt instruments and allow risk to be distributed among multiple investors. Credit Insurance: Companies may use insurance to protect against the risk of a customer defaulting on payments. Common Hedging Strategies: Diversification of Loan Portfolio: Spreading out credit exposures across various industries, geographies, and borrower profiles reduces the overall risk of default. Tightening Lending Standards: Limiting exposure to highrisk borrowers by implementing stringent credit assessments. AssetBacked Securities: Banks can sell loans or bonds packaged as assetbacked securities to reduce their exposure to credit risk. 3. Hedging Strategies for Currency Risk Currency risk (or exchange rate risk) arises from fluctuations in foreign exchange rates, which can affect companies involved in international trade or with investments in foreign countries. Key Hedging Instruments for Currency Risk: Forward Contracts: A firm agrees to exchange a specified amount of currency at a predetermined exchange rate on a future date. Example: A U.S. exporter expecting payment in euros might enter into a forward contract to sell euros and lock in a favorable exchange rate. Currency Options: These give the right, but not the obligation, to buy or sell currency at a specific price. Example: A U.S.based company buying goods from Japan might buy a call option on the yen to hedge against the risk of yen appreciation. Currency Swaps: Two parties exchange interest payments and principal in different currencies to hedge against exchange rate fluctuations. Common Hedging Strategies: Natural Hedging: Companies can offset currency risk by balancing foreign revenue with costs in the same currency. For example, if a company generates revenue in euros, it can also incur expenses in euros, reducing exposure to exchange rate fluctuations. Multi-Currency Invoicing: Firms can invoice in their home currency, shifting the currency risk to the buyer. Currency Diversification: Holding a diversified basket of currencies can reduce exposure to large fluctuations in any one currency. Effective hedging strategies are crucial for managing various types of risks in financial markets. Market risk can be managed using instruments like futures and options, while credit risk can be mitigated through diversification and credit derivatives. Currency risk, often faced by multinational firms, can be hedged using forward contracts, options, or swaps. Each strategy helps firms and investors protect their portfolios, ensure financial stability, and reduce the impact of adverse movements in the financial markets. Portfolio Risk Management Techniques: Diversification, Asset Allocation, and Risk Budgeting Managing risk is a fundamental aspect of portfolio management. Investors use various techniques to control and reduce the risks inherent in investing. Three key techniques used in portfolio risk management are diversification, asset allocation, and risk budgeting. Each of these techniques helps in mitigating potential losses while aiming to achieve the desired return. 1. Diversification Diversification is a risk management strategy that involves spreading investments across different assets, sectors, or geographic regions to reduce exposure to any single risk. The idea is that different assets perform differently under various market conditions, so losses in one investment can be offset by gains in others. Key Benefits of Diversification: Reduction of Unsystematic Risk: Unsystematic risk, which is unique to a specific company or industry, can be reduced by holding a variety of investments that respond differently to market conditions. Improved Stability: A diversified portfolio is less volatile, as the negative performance of one asset can be balanced by the positive performance of others. Methods of Diversification: Across Asset Classes: Investing in a mix of asset classes such as stocks, bonds, commodities, and real estate. Example: A portfolio with 60% equities, 30% bonds, and 10% commodities is more diversified than one solely consisting of stocks. Within Asset Classes: Diversifying within a single asset class (e.g., holding stocks from different sectors like technology, healthcare, and energy). Geographic Diversification: Investing in assets across various countries or regions to mitigate country-specific risks. Example: Holding U.S. stocks along with emerging market equities can reduce risks related to a downturn in one country's economy. 2. Asset Allocation Asset allocation refers to the process of dividing investments among different asset classes (such as stocks, bonds, and cash) to align with an investor's risk tolerance, time horizon, and financial goals. Asset allocation plays a crucial role in portfolio risk management by determining the overall risk-return profile of the portfolio. Key Elements of Asset Allocation: Strategic Asset Allocation: A longterm approach that involves setting target allocations for different asset classes based on financial goals and risk tolerance. Example: A young investor with a longterm horizon might allocate 70% to stocks, 20% to bonds, and 10% to cash. Tactical Asset Allocation: A more active approach that involves adjusting the asset mix in response to short-term market conditions. Example: If the investor expects an economic downturn, they might temporarily reduce exposure to equities and increase exposure to bonds. Types of Asset Allocation Models: Conservative: Focuses on preserving capital with a larger allocation to bonds and cash (e.g., 20% stocks, 80% bonds). Balanced: A moderate risk approach with an equal focus on growth and income (e.g., 50% stocks, 50% bonds). Aggressive: Targets higher returns by investing predominantly in equities, accepting higher risk (e.g., 80% stocks, 20% bonds). Example of Asset Allocation: A 40 year old investor with moderate risk tolerance may allocate their portfolio as follows: 50% equities, 40% bonds, and 10% in alternative investments such as real estate or commodities. The equities provide growth potential, while the bonds and alternative assets offer stability and income. 3. Risk Budgeting Risk budgeting is a method of allocating risk across different components of a portfolio, rather than focusing solely on returns. The goal is to optimise the portfolio’s risk-return profile by distributing risk in a way that aligns with the investor’s objectives and risk tolerance. Key Concepts of Risk Budgeting: Risk Contribution: Each asset class or investment in the portfolio contributes a certain amount of risk (measured by metrics such as volatility or Value at Risk). Risk budgeting ensures that no single asset class dominates the overall risk of the portfolio. Example: A portfolio may contain 60% stocks and 40% bonds, but if the stocks are highly volatile, they may contribute 90% of the portfolio's risk. Target Risk: Investors set a maximum acceptable level of risk (e.g., a portfolio volatility of 10%) and allocate investments so that the total risk remains within this target. Techniques in Risk Budgeting: Risk Parity: Allocates risk evenly across asset classes, rather than allocating capital based solely on return expectations. Example: In a risk-parity portfolio, both bonds and stocks might be balanced in such a way that they contribute equally to the overall portfolio risk, even though the dollar investment in bonds may be larger due to their lower volatility. Value at Risk (VaR): This technique measures the potential loss in a portfolio over a specific time period, under normal market conditions, at a given confidence level. The risk budget ensures that the potential loss stays within acceptable limits. Example of Risk Budgeting: An investor targets an overall portfolio risk of 8% volatility. After analyzing the risk contribution of each asset class, they determine that equities, which currently make up 60% of the portfolio, contribute 70% of the risk. To adhere to the risk budget, the investor may reduce their equity exposure and increase their allocation to bonds or other less volatile assets. Diversification, asset allocation, and risk budgeting are complementary techniques used in portfolio risk management. Diversification reduces unsystematic risk by spreading investments across various assets. Asset allocation ensures that investments align with an investor's goals and risk tolerance. Risk budgeting focuses on managing the contribution of risk from each asset class to create a balanced and efficient portfolio. Together, these strategies help investors achieve a balance between risk and return, ensuring longterm portfolio stability. Risk Mitigation Through Insurance, Securitisation, and Other Financial Engineering Techniques Risk mitigation is a core objective in financial management, and various strategies can be employed to reduce or manage risks. Three major approaches are insurance, securitisation, and financial engineering techniques. Each of these methods helps firms and individuals transfer, reduce, or eliminate certain financial risks. 1. Insurance as a Risk Mitigation Tool Insurance is a traditional risk transfer method that protects against financial losses by shifting the risk to an insurance company in exchange for premium payments. It is widely used to mitigate various forms of risk, such as operational, liability, and property risks. Key Aspects of Insurance for Risk Mitigation: Risk Transfer: The insurer takes on the risk in exchange for a premium, thus protecting the insured party from unexpected financial losses. Indemnity: In the event of a loss, the insurance policy compensates the insured based on the terms of the contract. Customisable Coverage: Insurance policies can be tailored to address specific risks, such as property damage, business interruption, liability, or cyber risks. Types of Insurance for Businesses: Property and Casualty Insurance: Covers physical assets like buildings, machinery, and inventory from risks like fire, theft, or natural disasters. Liability Insurance: Protects businesses against legal liabilities arising from accidents, negligence, or professional errors. Business Interruption Insurance: Compensates for lost income if a business has to halt operations due to unforeseen events. Credit Insurance: Shields companies from losses due to the nonpayment of trade receivables. 2. Securitisation as a Risk Mitigation Technique Securitisation is a financial engineering process that involves pooling various financial assets (such as loans, mortgages, or receivables) and converting them into marketable securities. This process allows firms to transfer risk to investors, thereby reducing their exposure. Key Elements of Securitisation: Risk Transfer: By securitising assets, companies can transfer the risk of default or nonpayment to investors who purchase the securities. Liquidity Creation: Securitisation converts illiquid assets (like mortgages or loans) into liquid, tradeable securities, improving cash flow for the originating firm. Diversification of Risk: Pooling assets with different risk profiles reduces the impact of individual defaults, spreading the risk across multiple investors. Common Forms of Securitisation: MortgageBacked Securities (MBS): Pools of mortgages are bundled and sold as securities to investors, transferring the risk of mortgage defaults. Example: A bank that issues home loans can bundle those loans into MBS and sell them to investors, transferring the credit risk of potential defaults. Asset-Backed Securities (ABS): Similar to MBS, but backed by other types of assets like credit card receivables, auto loans, or student loans. Collateralised Debt Obligations (CDOs): Structured financial products that pool different types of debt, such as loans and bonds, and sell them as securities with varying risk levels. Example: A bank may issue a portfolio of auto loans and then pool these loans into an assetbacked security (ABS). The ABS is sold to investors, who take on the risk of loan defaults. By securitising the loans, the bank reduces its exposure to credit risk and generates immediate cash flow. 3. Financial Engineering Techniques for Risk Mitigation Financial engineering involves the use of complex financial instruments, derivatives, and structured products to manage or mitigate financial risks. These techniques allow firms to hedge against specific risks, optimize capital structure, and improve financial stability. Common Financial Engineering Techniques: Derivatives: Financial instruments like futures, forwards, options, and swaps are used to hedge against price fluctuations, interest rate changes, or currency movements. Example: A company with significant foreign exchange exposure may use currency forwards or options to hedge against exchange rate fluctuations, ensuring predictable cash flows. Options and Futures: Options: Provides the right (but not the obligation) to buy or sell an asset at a predetermined price, allowing firms to hedge against unfavorable price movements. Example: An airline company can buy options on jet fuel to hedge against rising fuel prices. Futures: Standardized contracts to buy or sell an asset at a set price on a future date, commonly used to hedge commodities or financial assets. Example: A wheat producer may use futures contracts to lock in a favorable price for its crop, hedging against a potential price drop. Swaps: These involve the exchange of cash flows between two parties, often used to manage interest rate risk or currency risk. Interest Rate Swaps: Firms can exchange floatingrate interest payments for fixedrate payments to hedge against rising interest rates. Currency Swaps: Used to hedge exchange rate risk in crossborder transactions by exchanging principal and interest payments in different currencies. Example: A company with a variablerate loan may enter into an interest rate swap to exchange its variable payments for fixedrate payments, locking in stable costs. Structured Products: These are customised financial instruments designed to achieve specific riskreturn objectives. They often combine derivatives with other securities to create tailored risk exposures. Example: A structured note that combines a bond with an embedded option, offering downside protection while allowing for potential upside linked to the performance of an equity index. Credit Derivatives: Tools like credit default swaps (CDS) allow investors to transfer credit risk to other parties. Example: A bondholder worried about a company’s potential default may purchase a CDS, which pays out in case of a default event. Example: A company may issue a bond with an embedded call option, allowing it to repurchase the bond if interest rates decline. This financial engineering tool enables the company to mitigate the risk of rising interest rates, reducing future borrowing costs. Risk mitigation through insurance, securitisation, and financial engineering offers businesses a variety of tools to manage and transfer risks. Insurance allows for the direct transfer of risk to an insurer, while securitisation helps companies offload risk by packaging and selling assets as securities. Financial engineering techniques, including derivatives, swaps, and structured products, provide sophisticated ways to hedge market, interest rate, and currency risks. Each approach helps organizations improve financial stability, enhance liquidity, and manage potential losses in a volatile market environment.10 Multiple-Choice Questions About Wudu 1. What is the very first step you must perform before starting Wudu? A) Washing the hands to the wrists B) Having the intention (Niyyah) in the heart and saying "Bismillah" C) Rinsing the mouth D) Wiping the head Correct Answer: B 2. According to the Sunnah, how many times is it recommended to wash the hands, mouth, and nose? A) 1 time B) 2 times C) 3 times D) 4 times Correct Answer: C 3. What are the correct boundaries for washing the face during Wudu? A) From the forehead to the bridge of the nose, and from ear to ear B) From the normal hairline to the bottom of the chin, and from ear to ear C) Only the cheeks and the lips D) From the eyes to the neck, and from ear to ear Correct Answer: B 4. When washing your arms, where should the water start and where must it end? A) From the fingertips up to and including the elbows B) From the wrists to the shoulders C) From the elbows down to the wrists only D) From the palms to the forearms only Correct Answer: A 5. What is the correct way to wipe the head during Wudu? A) Wiping only the neck and back of the head B) Wiping the entire head with wet hands, from the front to the back and returning to the front C) Washing the head thoroughly with running water three times D) Wiping only the hair on the right side of the head Correct Answer: B 6. How should the ears be wiped, and do you need to take fresh water for them? A) They should be washed with running water three times B) They are wiped using the remaining wetness on the fingers after wiping the head, not with fresh water C) They should be wiped with fresh water using a towel D) Wiping the ears is optional and not part of the standard Wudu steps Correct Answer: B 7. Up to which part must the feet be washed completely during Wudu? A) Up to the toes only B) Up to and including the ankles C) Up to the mid-calf D) Only the bottom of the feet needs to be wiped Correct Answer: B 8. What does "Tartib" (Sequence) mean in Wudu? A) Washing the right limb before the left limb B) Performing the steps of Wudu in the specific order commanded by Allah and the Prophet C) Ensuring no parts of the body are left dry D) Repeating each step exactly three times Correct Answer: B 9. What does "Muwalat" (Continuity/Succession) mean during the ablution process? A) Washing each body part immediately after the previous one before it dries B) Using a large amount of water for each step C) Making sure to supplicate between every single step D) Taking a long break between washing the face and the arms Correct Answer: A 10. What is the recommended Supplication (Dua) to say immediately after completing Wudu? A) "Alhamdulillah" three times B) "Ash-hadu alla ilaha illallah wahdahu la sharika lah, wa ash-hadu anna Muhammadan 'abduhu wa Rasuluh" C) "Subhanallah" ten times D) Reading Surah Al-Fatiha Correct Answer: B It is necessary for us to take adequate care of our clothing for the following reasons: Reasons for maintenance of clothes. (a) To make clothes long last. (b) To save costs on new ones. The following are the guidelines to care and maintain our clothes: 1. Sorting: Clothes are sort out in terms of colour and size to enhance thorough cleaning and avoid stains. 2. Soaking: Soak them for easy washing. 3. Washing: We wash clothes in- between our palms or by kneading them in a bowl of soapy water to squeeze out the dirt. 4. Rinsing: This is done in clean water as many times as possible until the clothes are clean. 5. Drying: This is done on the clothes line of clothes hanger and not on the grasses or flower beds to avoid infections. 6. Ironing: This is done either by the electric iron or charcoal box iron. Do not over heat the iron to avoid burning of clothes. 7. Hang the hangable. Examples are coat and gowns. 8. Fold the Foldables. Examples are Wrapper and blouses. Keep them away in the boxes, bags or wardrobes. Before washing your ready made or imported wears, take note of the care label. It has care instruction notifying one on how such clothes could be properly handled. Laundry symbols give laundry instructionsPersonal cleanliness means attending to your personal hygiene regularly, thus keeping your body free from bad odor and infectious diseases. In keeping your body clean, you have to use grooming aids discussed in previous module. Remember that to achieve a clean and healthy body you need to practice good grooming habits as well as good healthy habits. Your Body Regular care of the body is necessary for good health and pleasing appearance. As you grow, you should learn to be responsible to your self. You should never neglect your body. Your body is the temple of the Holy Spirit. That is why , if you take good care of your body, you are in effect taking care of the place where the Holy Spirit resides. You are the “masterpiece of God’s creation” which means to say that you are above all other creations of God. So, it is best to maintain your body clean and healthy. For your own good and in so doing, you are showing your reverence to God, our creator. “Rule of Thumb” to keep your body clean is to take a regular bath. Taking a bath is necessary to remove dust, germs, as well as dirt accumulated from your daily activities. It is invigorating for the act of cleansing stimulates blood circulation. It will give your skin a healthy pinkish glow. Something to read: Home Economics and Livelihood Education 7 Seibo College 31 There are three ways of taking a bath: 1. Full bath It includes washing, shampooing the hair, soaping the whole body and rinsing with clear water. It is a thorough cleansing of the body. 2. Shower A shower bath usually takes a shorter time than full bath. A wash clothe or sponge with thick lather is rub all over the body starting from the navel, then the thigh, joints, armpits, and the rest of the body. Then rinse your body in the shower and pat your body dry with clean towel 3. Sponge bath Use wash cloth or face towel with soap, soak in warm or cold water. Rub it briskly over the body. Rinse the cloth with clean water then use it to remove soap from the body. A sponge bath is usually given to a sick person.The story of The Resurrection of Jesus is very amazing. Resurrection: meaning Jesus rising from the dead. Jesus is alive again. Jesus proved to the people that He is the “Son of God”. Would you like to know the amazing story? Let’s read on! Jesus is Alive! After Jesus died a man named Joseph from Arimathea put Jesus in His tomb. Before Joseph left, he and some men rolled a large heavy stone in front of the tomb. Mary and Mary Magdalene made spices and oils as a sign of respect to Jesus, and went very early to the tomb on the third day to go see Jesus' body. As they were just about at the tomb the earth suddenly shook and an angel came down from heaven. He easily rolled away the stone at the entrance of the tomb and sat on top of it. The women looked at each other and rubbed their eyes, they couldn't believe what they had seen. The angel was so bright, almost as bright as lightning. His clothes were as white as snow. There had been guards watching the tomb so no one would steal Jesus' body. When they saw the angel they fell over and they couldn't move or speak because they were so afraid. Christian Living Education 2 SEIBO COLLEGE 5 Then the angel said to the women, "Do not be afraid. I know you are looking for Jesus who has died. But He isn't here; He has risen just as He said He would! Come and see for yourself, the tomb is empty." The women were confused. How could this happen? They were sure Jesus had died, and now He was alive? They looked in the tomb and the cloths Jesus was wrapped in were lying on the ground, and the tomb was empty. Then the angel spoke again, "If you want to find Jesus He's on his way to Galilee." So the women hurried away. They had been so sad that Jesus was dead and now they were so excited He was alive! They just knew they had to find Jesus, and they had to tell the disciples the good news. As they were running down the path they turned a corner, and there was Jesus. "Greetings," He said. The ladies fell at His feet and worshiped him. Then Jesus said to them, "Do not be afraid. Go and tell my disciples to come to Galilee, which is where they will see me." The disciples came to Galilee, and had heard by this time that Jesus was alive. They were sitting around talking about it, when Jesus walked into the room and said to them, "Peace be with you." The disciples immediately stopped talking. Even though they had heard Christian Living Education 2 SEIBO COLLEGE 6 He was alive, they were shocked to see Him standing there with them. Jesus said to them, "Why do you look at me like you've just seen a ghost? Why don't you believe what you're seeing? Look at the scars in my hands and feet. It is really me! Touch me and see, I am not a ghost but a real person." The disciples’ mouths were open in amazement because they still didn't know what to think. They were so full of joy, and yet it was so impossible. Jesus understood what they were thinking, so He said, "This is what I told you would happen, that everything must happen that has already been written in the Bible." Then Jesus told them, "You have seen these things that have happened, so stay in the city and soon I am going to give you what God has promised you, the Holy Spirit. Jesus had one more person to see. His name was Thomas, and he was one of the disciples that weren’t there when Jesus met with them. Thomas had also heard that Jesus was alive, but would not believe until he saw Jesus with his own eyes. A week later when Thomas finally saw Jesus, Jesus said to him, "Put your finger here; see my hands. Stop doubting and believe." But Jesus continued, "Because you have seen me, you have believed; but it is more amazing for those who don't see me, and believe anyway." Christian Living Education 2 SEIBO COLLEGE 7 Jesus is actually talking to us when He said this. If you believe in Him, without seeing Him He thinks you're very special! That is exactly what faith is, believing in God even though you can't see Him. When we become Christians Jesus automatically gives us the Holy Spirit to live inside of us. The Holy Spirit makes us know when we have done something wrong. We might feel sick to our stomach, or just get a bad feeling, that is the Holy Spirit reminding us that we are doing something wrong, or that we need to stop and say sorry and ask for forgiveness for what we've done. Do you know what we celebrate during Easter Sunday? We celebrate the rising of Jesus from the dead. We celebrate because Jesus shared His new life with us. Through His rising from the dead, we are saved. We also have new life. What do you think we should do with our new life? How can we thank Jesus for sharing His new life with us? Of course, we should do good deeds. When we say good deeds, it is anything that we do that is good. It doesn’t matter how big or small as long as it is good. It would make Jesus very happy if we stop our bad ways and change for the betterThe challenges of working in the new economy recognize: 1.1 Working Today Talent Talented people- What they know, what they learn and what they can achive The source of organisational performance Develop skills and improve What is intellectual capital The combined brain power and shared knowledge of an organization's employees TO orginzations: Intellectual capital resents a strategic asset as human creativity, insight and decision making can be converted into superior performance To individuals: Intellectual capital is a personal asset, one to be nurtured and continually updated Things evolve, make sure we keep updated Intellectual capital: The package on intellect skills and capabilities that set us apart making us valable to potential employers Maintaining your talent: There is no escaping the fact that your career success will require a lot of initiative, self awareness and continuous learning Technology Tech is in our everyday lives Latest developments Smart phone, smart apparel, smart cars, smart homes We struggle to keep up with social media ana staying connected with messaging, full of email and voicemail What happenings as younger workers advance into management Flexibility Work ethic It is critical to build and maintain a high Tech IQ! What is Tech IQ: The ability to use current technologies at work and in your personal life, combined with the commitment to keep yourself updated as technology continues to evolve Intellectual capi5la is a combination of: Commitment x Competency = Intellectual capital How to make the world a better place Globalisation The worldwide interdependence of resources flows, product markets and business competition Under the influence, government leaders worry and about the competitiveness of nations just as corporate leaders worry about business competitiveness Emerging markets will power global growth over the next 20 years. By 2025 overall global consumption is forecast to reach $62 trillion, twice its 2013 level and fully half of this increase will come from the emerging world Consequence: Going to fast in uses resources, inflation, corporate greed It's cheaper to have things made in different countries (wages are low and going down) Shamrock organization 1 leaf - full time employees- standard career paths 2 leaf - “freelancers” 3 leaf - Part times without benefits (first to lose their jobs when employers face economic difficulties) The rising of emerging markets Now account for 60% of all low and medium technology manufacturing worldwide Total value add in high tech manufacturing from a low 26% in the 1970s to 48% at present China strategy to upgrade its industries and move the manufacturing value ching by prioritising 10 sectors Information technology, robotic, aerospace, maritime equipment, modern railway equipment, alternative energy vehicles, power equipment, agriculture equipment, advanced materials, biopharma and medical products Ethics A code of moral principa;s that sets standards for conduct that is “good” and “right” as well as “bad” and “wrong” Enron company huge corruption even in elections same thing happened with The Mechanism 1.2 - Organizations Organizational Purpose An orgnizations is a collection of people working together to achieve a common purpose Unique social phenomenon that enables its members to perform tasks far beyond the reach of individual accomplishment (synergy) The broad purpose of any orginzation is to provide goods or services of value to customers and clients A clear sense of purpose tied to: Quality of products and services Customer satisfaction Social responsibility Can be an important source of organisational strength and performance advantage All organisations are open systems (Systems that interact with its environment for renewal and growth) Organizations as systems All organizations are open systems that interact with their environment Continual process of obtaining resource inputs-people, information, resources and capital- and transforming them into outputs in the form of finished goods and services for customers One simple way to assess the impact of any organisation is to ask the question: How is the world different because it existed Michal Porter - Value Chain Value Creation: Organisations create value when they use resources well to produce good products and take care of their customers One simple way to assess the impact of any organization is to ask the questions: How is the world different because it existed? Triple Bottom Line The 3 Ps of organizational performance Profit - is the decision economically sound? People - Does the decision treat people with respect and dignity? Planet - Is the decision good for the environment? Organizational Performance Productivity: An overall measure of the quantity and quality of work performance with recourse utilisation taken into account Performance effectiveness: An output measure of task or goal accomplishment Performance efficiency: An input measure of the resource costs associated with goal accomplishment. Workplace changes that impact management Focus on valuing human capital Demise of “Command and control” Emphasis on teamwork Pre-eminence of technology New workforce expectations Importance of networking Concern for sustainability 1.3 Managers Importance of human resources and manger People are not ‘costs to be controlled’ High performing organizations treat people as valuable strategic assets Three takeaways 1. Give leaders broad authority 2. Encourage them to think like CEO 3. Challenge strong performers easily with big opportunities Direct support, supervise and help activate the work efforts of others The people who managers help are the ones whose contributions represent the real work of the organisation Levels of management Types of managers Line managers are responsible for work activities that directly affect organization’s output Staff managers use technical expertise to advise and support the efforts of line workers Functional managers are responsible for a single area of activity Quality of work life (QWL) An indicator of the overall quality of human experiences in the workplace QWL Indicators Respect Fair pay Safe working conditions Opportunities to learn and use new skills Room to grow and progress in a career Protection of individuals rights The organization as an upside-down pyramid A manager’s job is to support worker’s efforts The best managers are known for helping and supporting Customers at the top served by worker who are supported by managers 1.4 The management Process Managers achieve high performance for their organizations by best utilizing its humans and material resources Management is the process of planning, organizing, leading and controlling the use of resources to accomplish performance goals All managers are responsible for the four functions The functions are carried on continually Four functions: Planning,organizing, leading and controlling Mintzberg’s 10 Managerial Roles Characteristics of managerial work Long hours Intense pace Fragmented and varied tasks Many communication media Filled with interpersonal relationships Managerial agendas and networks Agenda setting Develops action priorities for accomplishing goals and plans Networking Process of building and maintaining positive relationships with people who can help advance agendas Social Capital Capacity to attract support and help from others Learning The change in a behaviour that results from experience Lifelong learning The process of continuously learning from daily experiences and opportunities Katz’ Essential Managerial Skills Chapter One: Management Today The challenges of working in the new economy recognize: 1.1 Working Today Talent Talented people- What they know, what they learn and what they can achive The source of organisational performance Develop skills and improve What is intellectual capital The combined brain power and shared knowledge of an organization's employees TO orginzations: Intellectual capital resents a strategic asset as human creativity, insight and decision making can be converted into superior performance To individuals: Intellectual capital is a personal asset, one to be nurtured and continually updated Things evolve, make sure we keep updated Intellectual capital: The package on intellect skills and capabilities that set us apart making us valable to potential employers Maintaining your talent: There is no escaping the fact that your career success will require a lot of initiative, self awareness and continuous learning Technology Tech is in our everyday lives Latest developments Smart phone, smart apparel, smart cars, smart homes We struggle to keep up with social media ana staying connected with messaging, full of email and voicemail What happenings as younger workers advance into management Flexibility Work ethic It is critical to build and maintain a high Tech IQ! What is Tech IQ: The ability to use current technologies at work and in your personal life, combined with the commitment to keep yourself updated as technology continues to evolve Intellectual capi5la is a combination of: Commitment x Competency = Intellectual capital How to make the world a better place Globalisation The worldwide interdependence of resources flows, product markets and business competition Under the influence, government leaders worry and about the competitiveness of nations just as corporate leaders worry about business competitiveness Emerging markets will power global growth over the next 20 years. By 2025 overall global consumption is forecast to reach $62 trillion, twice its 2013 level and fully half of this increase will come from the emerging world Consequence: Going to fast in uses resources, inflation, corporate greed It's cheaper to have things made in different countries (wages are low and going down) Shamrock organization 1 leaf - full time employees- standard career paths 2 leaf - “freelancers” 3 leaf - Part times without benefits (first to lose their jobs when employers face economic difficulties) The rising of emerging markets Now account for 60% of all low and medium technology manufacturing worldwide Total value add in high tech manufacturing from a low 26% in the 1970s to 48% at present China strategy to upgrade its industries and move the manufacturing value ching by prioritising 10 sectors Information technology, robotic, aerospace, maritime equipment, modern railway equipment, alternative energy vehicles, power equipment, agriculture equipment, advanced materials, biopharma and medical products Ethics A code of moral principa;s that sets standards for conduct that is “good” and “right” as well as “bad” and “wrong” Enron company huge corruption even in elections same thing happened with The Mechanism 1.2 - Organizations Organizational Purpose An orgnizations is a collection of people working together to achieve a common purpose Unique social phenomenon that enables its members to perform tasks far beyond the reach of individual accomplishment (synergy) The broad purpose of any orginzation is to provide goods or services of value to customers and clients A clear sense of purpose tied to: Quality of products and services Customer satisfaction Social responsibility Can be an important source of organisational strength and performance advantage All organisations are open systems (Systems that interact with its environment for renewal and growth) Organizations as systems All organizations are open systems that interact with their environment Continual process of obtaining resource inputs-people, information, resources and capital- and transforming them into outputs in the form of finished goods and services for customers One simple way to assess the impact of any organisation is to ask the question: How is the world different because it existed Value Creation: Organisations create value when they use resources well to produce good products and take care of their customers One simple way to assess the impact of any organization is to ask the questions: How is the world different because it existed? The 3 Ps of organizational performance Profit - is the decision economically sound? People - Does the decision treat people with respect and dignity? Planet - Is the decision good for the environment? Productivity: An overall measure of the quantity and quality of work performance with recourse utilisation taken into account Performance effectiveness: An output measure of task or goal accomplishment Performance efficiency: An input measure of the resource costs associated with goal accomplishment. Workplace changes that impact management Focus on valuing human capital Demise of “Command and control” Emphasis on teamwork Pre-eminence of technology New workforce expectations Importance of networking Concern for sustainability 1.3 Managers Importance of human resources and manger People are not ‘costs to be controlled’ High performing organizations treat people as valuable strategic assets Three takeaways 1. Give leaders broad authority 2. Encourage them to think like CEO 3. Challenge strong performers ealy with big opportunities Direct support, supervise and help activate the work efforts of others The people who managers help are the ones whose contributions represent the real work of the organisation Types of managers Line managers are responsible for work activities that directly affect organization’s output Staff managers use technical expertise to advise and support the efforts of line workers Functional managers are responsible for a single area of activity Quality of work life (QWL) An indicator of the overall quality of human experiences in the workplace QWL Indicators Respect Fair pay Safe working conditions Opportunities to learn and use new skills Room to grow and progress in a career Protection of individuals rights The organization as an upside-down pyramid A manager’s job is to support worker’s efforts The best managers are known for helping and supporting Customers at the top served by worker who are supported by managers 1.4 The management Process Managers achieve high performance for their organizations by best utilizing its humans and material resources Management is the process of planning, organizing, leading and controlling the use of resources to accomplish performance goals All managers are responsible for the four functions The functions are carried on continually Characteristics of managerial work Long hours Intense pace Fragmented and varied tasks Many communication media Filled with interpersonal relationships Managerial agendas and networks Agenda setting Develops action priorities for accomplishing goals and plans Networking Process of building and maintaining positive relationships with people who can help advance agendas Social Capital Capacity to attract support and help from others Learning The change in a behaviour that results from experience Lifelong learning The process of continuously learning from daily experiences and opportunities Create a quiz with the following questions and answersConvection is… The rising motion of warm air A large volume of air A boundary between two different air masses The weight of the Earth’s atmosphere over an area What are isobars? Storms with strong winds, heavy rains, lightning, and thunder Lines on a map to show high and low pressure The study of elevation This front is associated with thunderstorms, heavy rain, snow, and cooler temperatures. Warm front Stationary front Cold front Occluded front What is a barometer? A tool used to measure temperature An instrument used to measure wind speed An instrument used to measure humidity An instrument used to measure air pressure What is a tornado? Storms with strong winds, heavy rains, lightning, and thunder Large, rotating tropical weather systems A rapidly spinning column of air that has touched the ground What is topography? The study of elevation Lines on a map to show high and low pressure The condition of the atmosphere at a given place and time What are air masses? Large, rotating tropical weather systems The study of elevation A large volume of air with the same temperature What is transpiration? The process of a liquid’s surface changing into a gas The process of a gas changing into a liquid The movement of water through the soil The process of water vapor being released by plants. What is nitrification? The process bacteria use to convert nitrogen gas into ammonium ions The process of turning ammonium ions into nitrites and nitrates. The uptake of nitrates in the soil by the roots of plants. The process of turning nitrates into nitrogen gas Fun Fact: Carbon makes up ___ of your mass. 30% 18% 50% 6% What are the reactants of photosynthesis? Carbon dioxide and water Glucose and oxygen What are the reactants of cellular respiration? Carbon dioxide and water Glucose and oxygen What is a storm surge? Flooding caused by hurricanes Region of air where the air pressure is low Any product of the condensation of water vapor High pressure is… A region of air where the air pressure is greater than that of the surrounding area A region of air where the air pressure is lower than that of the surrounding area. Low pressure is… A region of air where the air pressure is greater than that of the surrounding area A region of air where the air pressure is lower than that of the surrounding area. What causes global winds? Photosynthesis The process carbon goes through Uneven heating of the Earth What can humans do to reduce carbon emissions? We can use renewable energy (ex. solar power) We can use non-renewable energy (ex. fossil fuels) Carbon can form stable bonds with many elements and and makes up the backbone of major macromolecules: carbohydrates, proteins, lipids, and ___ Nucliec acids Glucose Oxygen Nitrogen What weather is associated with low-pressure systems? Bad weather (ex. Cloudy weather) Good weather (ex. Sunny weather) What is fossilization? The burning of fossil fuels The process where fungi and bacteria decompose dead organisms Dead organisms form fossil fuels over thousands and millions of years What is the first step in the formation of tornadoes? Rising air from the ground pushes up on the swirling air and tips it over A large thunderstorm occurs in a cumulonimbus cloud The funnel grows longer and stretches towards the ground The funnel of swirling air begins to suck up more warm air from the ground What is the difference between thunderstorms and regular storms? Thunderstorms have thunder while regular storms don’t Regular storms have thunder while thunderstorms don’t There is no difference What are hurricanes? Rapidly spinning columns of air touch the ground Large, rotating tropical weather systems Storms with strong winds, heavy rains, lightning, and thunderstorms What is not a hurricane fact? They are the most powerful storms on earth They have an average wind speed of 120-180 km/h They lose their power when they travel over cooler waters or land Storm surges cause the most damages What is the difference between weather and climate? Weather is long-term while climate is short-term Climate is long-term while weather is short-term There is no difference