Considering CDs as Protection?

CDs is an abbreviation for Certificates of Deposits. It is a short- to medium-term deposit with a specific fixed interest rate in a financial institution. Moreover, its importance surfaces during unfavorable market trends such as a bear market and it turns into an income-producing debt investment for investors.

The concept of using certificates of deposits during bear market primarily lies on the stability it can offer to investors during a difficult economic time. With CDs, the investor is guaranteed with the principal plus a fixed interest rate at maturity. The period of a CDs term can vary but the usual purchases are quarterly e.g. three-month, six-month, nine-month and yearly e.g. one to five years. One can also look for banks that offer CDs with even longer terms.

Certificates of Deposits behave like time deposits. At the time of purchase, the purchaser commits his or her deposit in the bank for a specific period of time. At this point, the purchaser should already be resolved in leaving a particular sum of investment in the bank for a period of time. Otherwise, a penalty is imposed as a liability to the purchaser if he or she decides to take back the deposit before maturity. But given that all these cautions are properly addressed, CDs offer a guaranteed return with the agreed fixed interest rate even if the market prices fall.

Motivational Drives

The life of a company depends entirely on the profit it makes; the profit depends on the production capability of the company; the production capability depends on technology and the performance people in the company; the performance of the employees depends on their motivation. In short, we could say (with all things being equal), that much of the company’s success should be attributed to the motivation of its employees. If a company wishes to improve itself, the aspect that the company should focus on is the motivation of its employees.

According to David McClelland, there are three motivational drives, namely: achievement motivation, affiliation motivation, and power motivation. Achievement motivation is the drive that induces an employee to work even harder in order that he may accomplish the duties assigned to him and get ahead of everyone.

Affiliation-motivated people, on the other hand are employees who are driven to work better whenever they are with their friends; these people work best in an environment where they feel belongingness.

The last but not the least, people with power drives. These employees tend to perform better whenever they are able to take control of people, tasks and situations. They are motivated by the fact that they can create an impact on their companies.

There are many types of employees in a company. Each of these employees has different motivational drives, and therefore is differently motivated. In order that a company may improve its profit, it should take note of the different motivational drives of its employees.

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