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because his role is to make sure the company makes profit
he is managing a project on behalf of his company where the project is to make profit and keep the company growth and sustainability
I agree with Raja and Ahmed Shareef
Otherwisw the Manager would mess up the GDP of company.
Not economics, needs to know and manage Finance!
Economics (love it or hate it) is the basis of corporate world we are in now, everything we do has an economical value, other than that it would be a redunduncy that needs elemination, if we want to create a new department or initiate a project, management asks you about financial ratios like ROI, NPV, IRR.
A manager would supposedly have part in the creation of company value, and is essentially doing transactions within the company or out. Hence, you need to make sure you are costing the company less than the value you are adding, and you need to be able to plan, budget and control the department expenses, and same thing if you work on projects.
Any business is established for profit making! In turn it utilizes various resources resulting in employment, market growth, etc. As a Manager, i must be aware of business economics which impacts an organization and ensure our actions are in the gamut of business principles established. This is very much essential for ensuring the sustainabilty of a business in today's competitve world and ensure we make continuous growth. A continuous growth ensures continued employment for the people who depend on this organization. This is a win-win situation for any organization to have and it is essential every manager must have an understanding of business economics.
Economics is social science that deals with the production, distribution, and consumption of goods and services and with the theory and management of economic systems. Manger manages this economic systems to achieve the goals of the organization. Thus manager must have the in-depth knowledge of economics.
An organization is managed by its managers (management) who are supposed to play active roles in their concerned departments and in other activities jointly require their concentration to uplift the organization. The knowledge of economics helps management in doing various analysis and effective decision making processes. A very common example is the law of demand and supply need to be considered with other factors while pricing decision (increase/decrease) is to be made.
Hello Muhammad,
It is very easy. He has to know how to count one by one...
He is working not only through his staff but he has some budget and responsibility of his subordinates and theirs family.
He has to keep the company growth and sustainability.
With best regards,
Mike H.
I believe that not only the manager, but every person related to administration, should have some basic knowledge of economics. If a member of staff doesn't understand the basic principles of economics, they will not be in a position to understand that the most important objective of running an organization is to stay in the green, make a profit. Hence, for managers, it is essential to know and understand basic economics.
