Impact of economy and demographics on Organisation

Ashley Elizabeth By Ashley Elizabeth, 16th Feb 2015 | Follow this author | RSS Feed | Short URL http://nut.bz/384bcnzx/
Posted in Wikinut>Money>Economics

Financial markets have major impact on organizations. However, government intervention into the economic market is likely to affect management functions in organizations.

Impact of economy and demographics on Organisation

Economy and Organizations
Financial markets have major impact on organizations. However, government intervention into the economic market is likely to affect management functions in organizations. As of now, government spending as a share of the U.S. economy is likely to remain at levels not seen since World War II. Beyond that, more government intervention is likely to mean more regulations or at the least, increased enforcement and oversight of regulations already in place. However, some believe that more governmental oversight isn’t the answer. There can never be enough inspectors, accountants, customs officers, and police to ensure that all or even most of these transactions are properly carried out.

The upshot is that regulation cannot be the linchpin of attempts to reform our economy. What is needed is something far more sweeping: for people to internalize a different sense of how one ought to behave, and act on it because they believe it is right.

We have also seen a shift in public opinion as more people have expressed concerns about the growing budget deficit and increased government intervention in the economy. In a poll by the Wall Street Journal, some 49 percent of the respondents said they had a great deal of concern about a greater government role in the economy and business.

What’s important for managers is to stay informed about what’s happening not only in the economic component but in the other external environmental components as well. In fact, there is one other important external component we need to look at demographics.

Demographics and Organization
Have you ever heard the phrase “demography is destiny”? What this phrase means is that the size and characteristics of a country’s population can have a significant effect on what it’s able to achieve. For instance, experts say that by 2050, “emerging economies led by India and China will collectively be larger than the developed economies.”

Small European nations with low birth rates, such as Belgium, Austria, Denmark, Norway and Sweden, will drop off the list of the 30 biggest economies. Demographics, the characteristics of a population used for purposes of social studies, can and do have a significant impact on how managers manage. Those population characteristics include things such as age, income, sex, race, education level, ethnic makeup, employment status, geographic location, and so forth pretty much the types of information collected on governmental census surveys.

Tags

Economic And Social Issues, Economics, Economy And Demographics

Meet the author

author avatar Ashley Elizabeth
Ashley is an expert author and writer who pleased the world with his creative business management tips and ratings. He also blogs for their Fans and followers and provide the solution of their query

Share this page

moderator Mark Gordon Brown moderated this page.
If you have any complaints about this content, please let us know

Comments

Add a comment
Username
Can't login?
Password