Slide Share 2

Slide Share 2- The Chicago Federal Reserve and Business TheoriesChristina Farmer10/9/16CTAC 354 MW 3:30

What Does the Chicago Fed do?The bankers bank- The lender of last resort if a bank is about to fail.Conducts monetary policySupervises banks to make sure they are following rules put in place (credit rates, required reserves ratio, etc.)Insures stable prices through monitoring the amount of money printed Oversees interest rates and select chairmen vote on the federal funds rate, target inflation rate, etc.Conducts open market operations- takes and deposits money into banks accounts. When there is increased demand for money, they buy treasury bonds. And much more!

I went to the speech by Cindy Ivanac-Lillig from the Chicago Federal Reserve, and we got pens that contain shredded money which is one of their roles. HOW COOL!

Maslows Hierarchy of Needs TheoryWhen applying Maslows Hierarchy of needs to my career of working for the Chicago Federal Reserve, I can look at employees needs in order to be productive, but I can also look at factors that can influence the numbers for economic indicators that I look at every day.

According to the Theory, What Are Our Needs?Psychological needs- needs of the human body that can create psychological noise such as food/water, sleep, and work conditions.Safety needs- humans need to be free from dangers such as low wages, unsafe work conditions, and no time off work for sickness.Affiliation needs- humans need for the giving and receiving of affection/appreciation from co workers/supervisors.Esteem needs- The need for each employee to feel a sense of achievement and accomplishment.Self actualization- The need for humans to constantly be the best version of themselves every day.(Miller, 2015)

Article Summary- Workplace Satisfaction and Productivity are Related The main point of this article was to say that satisfaction and productivity are related. It went on to show 6 tips to increase employee satisfaction, and explain what happy workers can do in the long run for the company. Employees get a drive to succeed, they are more willing to refer the company to a friend, and they have more dedication towards the company if they are happy.Listening, respect, and allowing creativity are main points I highlighted in this article that employees need to encourage in the workplace.

How does the Theory Relate to Our Careers?There is a positive correlation between the amount of job satisfaction (needs met), and productivity.When we are happy, we:Have a drive for success => quality work + good work ethicHave increased dedication => attention to detail + less turnoverAre Allowed to be creative => more ideasAre PositiveFeel listened to and respected => encourages dedication and productivityCreate referrals => more employees and more work done(Edwards, 2015)All of these have been proven through studies to increase productivity

How Does the Theory Relate to Economic Indicators?Productivity- If job satisfaction is low, productivity suffers.Unemployment rate- If and employees needs are not met, their work suffers and they are more likely to get fired which increases the unemployment rate if it is a large enough problem.Average hourly earnings- The more productive an employee is, the more companies make in revenue, which in turn can contribute to higher wages!

Types of Management (Blake and Mouton)Blake and Mouton made the argument that organizations have different levels of concern for people (employees) and concern for production. They agreed that the best managers focus on productivity and employee needs (Miller, 2015). This made me curious what type of environment my future careers may have, so I checked the Chicago Federal Reserves website.

What the Chicago Fed ValuesIf you go to the Chicago Fed website, you will see that they support a inclusive work environment where team members are treated fairly and have equal opportunities, so I would argue they therefore value their employees concerns highly. If you check out their mission statement, you will see that they have responsibilities such as implementing monetary policy, regulating both state and international bank branches, and providing financial services to the government and financial institutions. Due to there huge roles for the US, I would say their concern for production is way high!

Middle of the Road Management or Team Management?Which type of system is better for companies? I would argue we must look at the needs and roles of the company. Most businesses work better under a middle of the road management style where they balance productivity and concern for the members of the organization.Businesses that have a huge role in the USs rules and regulations work better in the team management style because with more pressure to do your job correctly, and an entire countrys lives on the line, you have to value productivity and concern for workers much more.

Chicago Fed- Communication Patterns Content: Task accompanied by maintenance communication, with innovation when things need to be changed. Direction: I would argue that most of their communication is vertical because there is a hierarchy, but they do communicate to many people to reinforce their decisions.Channel: All channels, if you must decide which is used most it is dependent on the employees position in the Fed. Style: The Chicago Fed definitely practices formal communication in every aspect of their job because their decisions are so important to the US and internationally.

Questions for Further ResearchFrom doing this project I like the idea of saving a business. What are some careers I can have that can help save a small business financially?What are the regulations a small business has to follow that may make my job more difficult?

My HomeworkI need to take it upon myself to conduct an interview or job shadow and find the specifics of companies in the industry I am interested in. I need to know their culture, the way they primarily communicate, and their job responsibilities so I know if I will be well suited for the career.

Reference PageEdwards, S. (2015). Examining the Relationship Between Workplace Satisfaction and Productivity. Inc. Retrieved from http://www.inc.com/samuel-edwards/examining-the-relationship-between-workplace-satisfaction-and-productivity.htmlFederal Reserve Bank of Chicago. (2016). Work Culture. In 2015-2016 Federal Reserve Bank of Chicago Areas of Opportunity. Retrieved from https://www.chicagofed.org/people/jobs/our-cultureMiller, K. (2015). Organizational communication: Approaches and processes (7th ed.). Stamford, CT: Cengage Learning.

References ContinuedBureau of Labor Statistics. (2016). Retrieved from www.bls.gov