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Manager part of economic and human resourse Decission based on information The Manager, who is responsible for planning and directing the work of a group of individuals, monitoring their work, and taking corrective action when necessary. For many people, this is their first step into a management career.Managers may direct workers directly or they may direct several supervisors who direct the workers. The manager must be familiar with the work of all the groups he/she supervises, but does not need to be the best in any or all of the areas. It is more well. WHAT IS ECONOMICS ? Economics is the production, distribution, and consumption of goods and services. The term economics comes from the Ancient Greek (oikonomia, "management of a household, administration") from (oikos, "house") + (nomos, "custom" or "law"), hence "rules of the house(hold)". Current economic models emerged from the broader field of political economy in the late 19th century. A primary stimulus for the development of modern economics was the desire to use an empirical approach more akin to the physical sciences. Economics aims to explain how economies work and how economic agents interact. Economic analysis is applied throughout society, in business, finance and government, but also in crime, education, the family, health, law, politics, religion, social institutions, war and science. The expanding domain of economics in the social sciences has been described as economic imperialism. DEFINITION ON ECONOMICS"Economics is the science which studies human behavior as a relationship between given ends and scarce means which have alternative uses.´-- Lionel Robbins, An Essay on the Nature and Significance of Economic Science (London: MacMillan, 1932) There are 2 types of economic ± 1. MICROECONOMICSMicroeconomics, which examines the behavior of basic elements in the economy, including individual markets and agents as consumers and firms, buyers and sellers. 2. MACROECONOMICSMacroeconomics, which addresses issues affecting an entire economy, including unemployment, inflation, economic growth, and monetary and fiscal policy. 18/11/2010
What is managerial economic?
Managerial economics is a study of application of managerial skills in economics, more over it help to find problems or obstacles in the business and provide solution for those problems. Problems may be relating to costs ,prices, forecasting the future market, human resource management, profits etc. 1.Managerial Economics micro-economic in character. 2. Managerial Economics largely uses that body of economic concepts and principles, which is known as µTheory of the firm¶ or µEconomics of the firm¶. In addition, it also seeks to apply Profit Theory, which forms part of Distribution Theories in Economics. 3. Managerial Economics is pragmatic. It avoids difficult abstract issues of economic theory but involves complications ignored in economic theory to face the overall situation in which decisions are made.
Nature of managerial economics:
1. Micro Economics 2. Theory of the firm 3. Managerial Economics is Pragmatic (practical in outlook) 4. Managerial economics is normative 5. Using inputs from Macroeconomics 6. It is concerned with Normative Economics
Scope of managerial economics:
1. Resource Allocation 2. Demand Analysis and Forecasting 3. Cost and Production Analysis 4. Pricing Decisions, Policies and Practices 5. Profit Management 6. Capital Management 7. Strategic Planning
Environmental or external issues
· Economic Environment · Social environment · Political Environment · Technological Environment · International environment
WHAT IS RESOURCES? Resources include the time and talent people have available, the land, buildings, equipment, and other tools on hand, and the knowledge of how to combine them to create useful products and services.
Important choices involve how much time to devote to work, to school, and to leisure, how many dollars to spend and how many to save, how to combine resources to produce goods and services, and how to vote and shape the level of taxes and the role of government. people appear to use their resources to improve their well-being. Well-being includes the satisfaction people gain from the products and services they choose to consume, from their time spent in leisure and with family and community as well as in jobs, and the security and services provided by effective governments. Sometimes, however, people appear to use their resources in ways that don't improve their well-being.
Characteristics of resources
Resources have three main characteristics:
y y y utility, quantity (often in terms of availability), consumption.
Types of resource
1. Natural resources
Natural resources are derived from the environment. Many of them are essential for our survival while others are used for satisfying our needs.
2. Human resources
Human beings are also considered to be resources. Human Resources defined as a human¶s skills, energies, talents, abilities and knowledge that are used for the production of goods or the rendering of services. In a project management context, human resources are those employees responsible for undertaking the activities defined in the project plan.
3. Tangible / intangible resources
Resources may be split into tangible and intangible resources. Tangible resources are those resources like equipment, vehicles which have actual physical existence; Intangible resources are things like corporate images, brands and patentes that are present but cannot be grasped or contained.
What is Demand?
Demand is how much of something people want. It sounds a little bit harder to measure, but it really isn't. To measure demand, we can use a very simple numbering system, just like the supply
one. If 8 people want baseball cards, then we can say that the demand for baseball cards is 8. If 6 people want apples, then we can say that the demand for apples is 6.
In economics, demand is the desire to own anything, the ability to pay for it, and the willingness to pay. The term demand signifies the ability or the willingness to buy a particular commodity at a given point of time.
Elements of the Law of Demand :
1. 2. 3. 4. 5. The quantity of a well defined good or service that: People are willing and able to buy. During a particular period of time. Decreases/increases as the price of that good or service rises/falls All other factors remain constant.
What is supply?
supply is how much of something is available. For example, if you have 9 baseball cards, then your supply of baseball cards is 9. If you have 6 apples, then your supply of apples is 6. The total amount of a good or service available for purchase; along with demand, one of the two key determinants of price. It is determined by: (1) Price: producers will try to obtain the highest possible price whereas the buyers will try to pay the lowest possible price both settling at the equilibrium price where supply equals demand. (2) Cost of inputs: lower the input price the higher the profit at a price level and more product will be offered at that price. (3) Price of other goods: lower prices of competing goods will reduce the price and the supplier may switch to switch to more profitable products thus reducing the supply.
MBA FALL BATCH 2010 B1036