Business
Economics Of Effective Management
The economics of effective management refers to the principles and strategies used to optimize resources and achieve organizational goals. It involves making efficient use of available resources, such as labor, capital, and technology, to maximize productivity and profitability. This approach emphasizes the importance of cost-benefit analysis, strategic decision-making, and effective allocation of resources to drive business success.
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3 Key excerpts on "Economics Of Effective Management"
eBook - PDF- Chester Alexis C. Buama(Author)
- 2019(Publication Date)
- Society Publishing(Publisher)
Basically, managerial economics is the science which deals with how to use uncommon or rare resources and future planning in the management. Managerial economics spreads over economic theory and various methods to business and decision made by top management executives or managers. Managerial economics has application in both profit and non-profit sectors. Managerial economics offers a wide-ranging action of putting economic theory into the operation and various significant methods which help in management decision making. Managerial economy states that a decision is said to be coherent and sound if given the primary goal of the organization to maximize the profit. The nonprofit organization (NPO) is defined as one of the common or non-specific organizational forms which work collaboratively with profit organizations as well as governmental bodies. The importance of the sector of NPO in enhancing sustainable development especially in developing as well as developed countries, where states and markets often fail is commonly recognized in the works on organizational behavior and development. 4.1. INTRODUCTION Managerial economics can be defined as the integration of economic theory with business practices. Economic theory and business practices will help the management in making decisions and future planning. Managerial economics supports and helps to manage the staff such as managers and decision makers of an organization. Managerial economics helps the manager to find an optimum solution for the obstacles which are being faced in the activities of an organization. Managerial economics makes use of economic theory and concepts. Managerial economics help various levels of managers in planning or strategizing reasonable managerial decisions. The fundamental key of managerial economics is the microeconomic theory of the organization. Managerial economics can be used to reduce the gap between the economics in theory and economics in practice.
eBook - PDF- Kumar, K Nirmal Ravi(Authors)
- 2021(Publication Date)
- Daya Publishing House(Publisher)
2: Economic Principles of Farm Management We know, economics is the study of the allocation of scarce resources among unlimited wants and needs. It is concerned with how best and what efficient way to allocate limited resources to various alternative uses. As discussed in the earlier Chapter 1, the farm is a production sub-system in an economy, and normally identified as a business venture, The farmer employs various resources in the production programme and the important farm managerial decision is to boost the economic efficiency of resources. The ability of a farmer to organize, allocate and achieve economic efficiency of resources mainly depends upon their managerial capacity. So, management is concerned with decision making. Like in any business venture, the farmer is the manager of a farm business and he decides how best to use his limited resources. The basic principles that guide the farm managerial decisions are provided by the general economic theory. Applying these basic production economic principles in the art of managing a farm business is known as Farm management. The managerial decisions taken by the farmer through employing the basic economic principles on the farm enable the farmer to organize resources and manipulate them to his advantage, so as to control and determine the relationship between input and output when the exact conditions of the farm production environment is not fully known. The exact and full knowledge about a farm situation is not always possible. However, the farmer must make decisions, even if it may turn out to be wrong. The art of management involve, minimizing (or reducing) the possibility of getting the wrong results by using past information, experiences, getting advises from experts or extension advisors etc. A good manager is flexible and responsive to changes in order to avoid getting wrong results. In general, farm managerial decisions are mainly meant towards achieving profit maximization in the business.
eBook - PDFProperty Rights and Managerial Decisions in For-profit, Non-profit and Public Organizations
Comparative Theory and Policy
- K. Carroll(Author)
- 2003(Publication Date)
- Palgrave Macmillan(Publisher)
What appears to be an efficient allocation of resources in this limited analysis may not be. The next two chapters examine the important concept of efficiency that is applied to analysis of organizations and a framework for consid- ering the diversity of organizational forms that exist in most economies. 3 Efficient Decisions in Organizations and Social Welfare The objective of economic analysis is to promote efficient use of scarce resources. In this chapter I examine the concept of efficiency invoked in economics in general and the ways in which this concept is applied to analysis of managerial decisions in organizations in particular. I begin with an illustration of a simple neoclassical model of efficient decision making in a competitive economy. Following this are applications of this model to decision making in alternative organizational forms. I then discuss the limitations of the model with respect to applications to organizations. Included here is a discussion of bounded rationality. Efficiency criteria In the economic analysis of organizations, managerial decisions in an organization are efficient when these decisions maximize net benefits to the organization (that is, net private benefits). These privately efficient decisions are said to be socially efficient when they also maximize net benefits to society (that is, net social benefits). In the typical analysis all benefits and costs considered are economic. This approach is characterized as unbounded rational optimization, based on the assumptions of a perfectly competitive market economy.1 A market so defined works smoothly as producers (sellers) and consumers (buyers) interact. Their individual decisions, based on self-interest to achieve their own objectives, ultimately direct resources to the use most highly valued by both groups (society).
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