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Business Economist



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 Business Economist

 

The knower of business economics is called a business economist, but this definition does not give complete knowledge of the business economist’s work and his responsibilities. In fact, a business economist is an officer of an organisation who is appointed to advise the top management on economic matters. “knowledge management has been widely acknowledged” (Arrau 2015). The need for knowledge of management is increasing in different countries, due to which the importance and responsibility of economists having managerial skills in various commercial and non-business establishments is increasing. An economist with managerial skills can solve complex problems of right decision making and future planning through his special knowledge. Therefore, the person who helps in the making of decision-making and future planning is called ‘Business Economist’.

 

 

One of the important functions of management is to make decisions and help them to implement the decisions properly. “Whatever a manager does, it is through decisions” (Drucker 1967). It is known to all that the managers have to perform many tasks on a day to day basis and they have many options to perform these tasks. Which is the best among these options? Determining this is ‘decision’. Terry has said in this regard that “the life of the lovers is the decision-making”. He has further said that “If there is any universal identity of the manager, it is his decision making. Decision is included in all the functions of management – ​​planning, organisation, direction, control etc. Decision making is management seems to be very justified. It is an indisputable truth that decision is the mainstay of business. Today the importance of decision has increased even more because the measure of the ability and success of the managers is determined by the decisions taken by them.

 

Professional economists are employed in decision making and planning for the future and their services are provided to the decision maker. Professional economist is considered a professional person in developed countries. The utility of business economist is increasing continuously.

 

Functions of Business Economist:

 

A business economist is an important executive of a business organisation.

 

The functions of a business economist can be divided into two levels:

 

  1. Intellectual work
  2. selection work

Both the functions are explained below:

 

I.1. Thinking Functions:

 

(i) To know the problem.

 

(ii) To study all the aspects of the problem.

 

(iii) To present the problem in a simple form.

 

(iv) Determining the appropriate time to solve the problem.

 

(1) Concept:

 

The development of ideas takes place in this stage from the direct knowledge about

 

the problem.

 

In this situation the following works:

 

(i) thinking of different options for solving the problem.

 

(ii) Evaluating the various alternatives.

 

(2) Investigation:

 

Facts are investigated in relation to the ideas developed. After knowing the problem, means are found to solve it.

 

The following tasks are involved in this process:

 

 

(i) finding means to solve the problem, and

 

(ii) To find out the obstacles in the solution of the problem.

 

In addition to the above-mentioned works, many scholars have divided some more special works of the business economist into three parts:

 

Specific Functions:

 

The business economist has some specific functions.

Mr. H. I. Ansoff has divided the specific tasks into three parts:

 

(1) Strategic Functions:

The difference between these functions to the business economist

I.2. Duties for Management:

It is the duty of the business economist to help the managers in taking important decisions.

Therefore, his main duties of management are as follows:

 

  1. To Help in Taking Strategic Decisions,

 

  1. To Help in Administrative Decisions,

 

  1. To Help in Operating Decisions,

 

  1. To Help in Formulation of Forward Planning,

 

  1. To Help in Minimizing of Uncertainties,

 

 

  1. To Help in Growth and Improvement,

 

  1. To Help in Improving the Ability to Cope with Change,

 

  1. To Help in Increasing Forward Looking Attitude in Management,

 

  1. To Help in Developing Efficient Methods,

 

  1. To Help in Achieving of Objects, and

 

  1. To assist in the preparation of speeches of the managers on economic matters.

 

II.2. Duties for Society and Nation:

The duties of a professional economist are increasing towards the society and the nation in the present time, consumers and employees, etc., come under the society. Together these two are a big part of a society.

 

Mainly the following are included under these duties:

 

(1) To Help in Making of Schemes for Employee’s Benefit and Welfare

 

(2) To Help in Implementing of Incentive Wage Plans

 

(3) To Help in Continuous Supply of the Products

 

(4) To Help in Checking of Black Marketing

 

(5) To Help in Promoting Employment Providing Schemes

 

 

(6) To Help the Government in Economic Development,

 

(7) To Help the Government in Checking of Tax-Evasion

 

(8) To Help in Maximum Utilization of Economic Resources

 

(9) Giving Suggestions on Economic Problems and giving suggestions on economic problems and

 

(10) Developing Good Relation between Employer and Employees

 

Responsibilities of a Business Economist:

After studying the functions and duties of a business economist, it is necessary to know about his responsibilities. Being aware of the responsibilities is absolutely essential for a business economist.

 

In order to discharge his responsibilities, he should keep in mind the following points:

 

(1) Acquiring of Resources for the Attainment of Objectives:

To achieve the objectives, the main responsibility is to mobilize the resources and achieve them within the given time.

 

(2) To Maintain Reasonable Rate of Profit on Invested Capital:

The business economist must always see that the rate of return on the capital employed in the business keeps on increasing. Therefore, it is his responsibility to keep telling the manager about the measures to increase the rate of profit. If there is any apprehension of reduction in the rate of profit, measures should be suggested to avoid it.

 

(3) Knowledge of Sources of Information and Contacts with Experts:

In order to fulfil his duties, the business economist has to know all the sources on the basis of which information can be given about the economic events and he will have to establish contact with those experts who can give him proper and right advice for fulfilling the purpose. Not everyone can be the knower of everything; Therefore, he will have to keep in touch with experts in different fields.

 

 

(4) To Develop the Decision-Making Process:

Management has to make day-to-day decisions, so it is the responsibility of the business economist to determine such a process for the decisions by which the management can take the decision itself. There are many such incidents in which quick decision has to be taken and time is not available for contact or opinion with professional economist. In such circumstances, if the management is made aware of the decision-making process, then the work becomes much easier.

 

(5) Successful Forecast:

The responsibility of the business economist in relation to forecasting is very high. The success of any plan or decision lies in how accurate the forecast is. Therefore, in forecasting he should use all those statistical, mathematical and modern techniques which can make the future clear.

 

Conclusion

 

Having seriously considered the problem, a business economist selects the best option for its solution. There can be many ways to solve any problem, but problem solving must be done quickly with less resources, choosing that option is a very important task of the business economist. So, the solution to the problem must be such that it is beneficial to all parties involved. It becomes even more difficult if neither side objects. For example, the organization’s problem is “to increase production.” There are two options for increasing production. First through mechanization; And second, by hiring more employees. If the first option is chosen, employers will support it because costs will be lower and production will increase, but the working class will oppose it because unemployment will rise. The second option will be supported by workers, but could be resisted by employers if costs rise as output increases. Therefore, the business economist must choose an option in which neither costs nor unemployment increase. If he succeeds in this, he will be considered a skilled economist. His status in society will be viewed with respect.

 

Reffcences

G.P.ArrauSep2015 https://www.researchgate.net/publication/302466209_Knowledge_Management_in_the_context_of_developing_countries_the_case_of_Chile_paper_given_at_the_16th_European_Conference_in_Knowledge_Management_September_2015_University_of_Udine_Italy

P.F.Drucker Jan1967

https://hbr.org/1967/01/the-effective-decision  

The use of ansoff matrix in the field of business 2017

chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://www.utgjiu.ro/revista/ec/pdf/2017-02.Volumul_2_Special/21_EcobiciL.pdf

 

 

 

 

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