Plant and Real: Difference between pages

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imported>Doug Williamson
(Flag that all rates in first example are effective annual rates.)
 
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''Psychometric profiling - Belbin team roles.''
1.  


Plant is one of the nine clusters of individual behaviours identified in the Belbin team roles model.
A term which has been restated to exclude the effects of inflation.


For example, if £100 is invested for a year at a nominal rate of 10% and inflation is 2%, we can say that the nominal rate is 10% but the real rate is only (1.10/1.02) - 1 = 7.84%, all rates being expressed as effective annual rates.


Characteristic '''''behaviours''''' of the plant role include:
This is because goods which cost £100 today will cost £102 in a year's time.
* High creativity
* Generating ideas
* Solving difficult problems in unconventional ways


Therefore only a 7.84% return has been made if we take into account the new prices of goods.


Related ''strengths'' include creativity, imagination, free-thinking.


Notice how the inflation rate and the real rate compound together to produce the nominal rate, for example:


Associated ''weaknesses'' may include ignoring incidentals, preoccupation preventing effective communication, absentmindedness, forgetfulness.
(1.02 x 1.0784) - 1 = 10%.




When either the inflation rate or the real rate is low, the result is approximately the same as simply adding or subtracting rates.


==See also==
For example when the nominal rate is 6% and the inflation rate is 4%, the real rate is approximately:
* [[ACT Competency Framework]]
* [[Behavioural skills]]
* [[Belbin team roles]]
*[[Completer finisher]]
* [[Co-ordinator]]
*[[Implementer]]
*[[Monitor evaluator]]
*[[Psychometric profiling]]
*[[Resource investigator]]
*[[Shaper]]
*[[Specialist]]
*[[Teamworker]]
* [[Working effectively with others]]


6% - 4% = +2%.


==External link==
(Calculated more strictly, it would be (1.06/1.04) - 1 = +1.92%, all rates being effective annual rates.)
[https://www.belbin.com/ Belbin Team Roles webpage]


[[Category:Commercial_drive_and_organisation]]
 
[[Category:Influencing]]
Taking another example, when the nominal rate is 3% and the inflation rate is 4%, the real rate is approximately:
[[Category:Self_management_and_accountability]]
 
[[Category:Working_effectively_with_others]]
3% - 4% = -1%.
[[Category:Planning_and_projects]]
 
(Calculated more strictly, it would be (1.03/1.04) - 1 = -0.96%.)
 
 
 
2.
 
Inflation-proof.
 
 
3.
 
Tangible. For example the ''real assets'' of a business would include its stock, plant and machinery.
 
 
4.
 
''Real property'' means land and buildings.
 
 
5.
 
Real-life issues and opportunities are those with a strong foundation in practical experience. 
 
(Contrasted with other issues which are considered to be more theoretical.)
 
 
6.
 
''Options''. Relating to an operational decision or outcome.
 
 
7.
 
''Economics''. Referring to the part of the total economy which excludes financial markets and financial services.
 
 
== See also ==
* [[Real interest rate]]
* [[Real rate]]
* [[Nominal]]
* [[Real option]]
* [[Real economy]]
* [[Effective annual rate]]

Revision as of 07:27, 14 July 2014

1.

A term which has been restated to exclude the effects of inflation.

For example, if £100 is invested for a year at a nominal rate of 10% and inflation is 2%, we can say that the nominal rate is 10% but the real rate is only (1.10/1.02) - 1 = 7.84%, all rates being expressed as effective annual rates.

This is because goods which cost £100 today will cost £102 in a year's time.

Therefore only a 7.84% return has been made if we take into account the new prices of goods.


Notice how the inflation rate and the real rate compound together to produce the nominal rate, for example:

(1.02 x 1.0784) - 1 = 10%.


When either the inflation rate or the real rate is low, the result is approximately the same as simply adding or subtracting rates.

For example when the nominal rate is 6% and the inflation rate is 4%, the real rate is approximately:

6% - 4% = +2%.

(Calculated more strictly, it would be (1.06/1.04) - 1 = +1.92%, all rates being effective annual rates.)


Taking another example, when the nominal rate is 3% and the inflation rate is 4%, the real rate is approximately:

3% - 4% = -1%.

(Calculated more strictly, it would be (1.03/1.04) - 1 = -0.96%.)


2.

Inflation-proof.


3.

Tangible. For example the real assets of a business would include its stock, plant and machinery.


4.

Real property means land and buildings.


5.

Real-life issues and opportunities are those with a strong foundation in practical experience.

(Contrasted with other issues which are considered to be more theoretical.)


6.

Options. Relating to an operational decision or outcome.


7.

Economics. Referring to the part of the total economy which excludes financial markets and financial services.


See also