Evolution of Management Theory and Practice

EVOLUTION OF
MANAGEMENT
THEORY AND
PRACTICE

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Understanding of economic issues such as government policies, labour markets, income
distribution and employment, and their impact on the business environment.......................3
Understanding of monetary policy and supply and demand for money. Implications of
different aspects of the demand for money............................................................................6
3. Understanding of fiscal policies focussing on taxation and its macro- economic effects,
social security contribution, pensions and benefits. As part of the explanation of fiscal
policies, the report should also evidence an understanding of public expenditure deficits and
the sustainability of public debt..............................................................................................7
4 Discussion on the role of various primary and secondary capital markets such as stock
markets and bond markets in raising money for investment. The report should also include a
discussion on crowd funding and crypto currencies...............................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Evolution management is demonstrated as the process of thought which was begin in the
early days of man. Evolution management was started when man realized needs to live. There
are various economics issues which has been faced by the world economy or the countries and
regions which include inequality, labour issues, emerging markets, prospects for growth and
inflation along with influence of new technology. Monetary policy it is adopted by the monetary
authorities of a nation in order to manage and control money supply and interest rare. Monetary
policy is defined as the macroeconomic policy and this policy is usually laid down by central
bank. This policy primarily involves interest rate and supply of money and it is demand side in
the terms of economic policy which has been used by the government to accomplish
macroeconomic objectives which include consumption, inflation, liquidity and growth. Fiscal
policy is demonstrated as the tax policies and government expenditure which impacts on
macroeconomics conditions and economic conditions which include demand for inflation,
employment, and services and goods as well as economic growth. Capital markets they are
defined as investments and savings which are bought among the suppliers of capital, those are in
need of capital. Capital market are those in which current securities have been sold and issued
and they are also known as primary market and in addition secondary market are those in which
already issued securities have been traded among investors(Bagire and Namada, 2015).
MAIN BODY
Understanding of economic issues such as government policies, labour markets, income
distribution and employment, and their impact on the business environment.
Economic issues are those which have been faced by the count6ries or regions and world
economy and it includes labour issues, prospects for growth and inequality as well as emerging
markets and the effect of latest technology. The primary issues of the economic is unlimited
wants, there is scarcity of many resources they are provided in a limited quantity such as finite
fossil fuels, due to the reason of scarcity there always remains a sustained opportunity cost. If
any resource is consumed as one good this means another resource cannot be consumed.
Consequently the feature of the economic they have been concerned about how to distribute the
resources in the society in order to make them fair as well as more efficient use of resources.

There are micro economic problems monopoly and the problems of externalities, volatile prices,
recession, poverty and inequality and inflation.
Unemployment
 The group of peoples entering in the job market are larger compared to the jobs created.
 There might be possibility that rural and urban migration may increase because of the
employment opportunity.
Poverty
 In equality in income
 Increment in population
 Unemployment
There are some changes which influence the government policy on industry and business which
include more demanding customers, increasing competition, along with rapidly changing
technology, market orientation, require of improving human resources, Threat occurring from the
multinational corporation, loss of budgeting, improving focus on exports, corporate vulnerability.
1. Increasing competition – Firms and the business they have been facing competition
exclusively not only from new local entrants but they are also facing competition from
multinational competitors. They need to compete with the remaining world.
Liberalization as well as market orientation they usually create some situation regarding
competition.
2. Changing of technology in an environment- Presently technologies have been changing
rapidly in an environment and they are found quite helpful for the firms because they
helps firm to enhance their services and goods as well as methods and equipment’s for
the purpose of surviving in the market along with to face the levels of competition.
However presently producers have been utilising best world class technology. This
process probably leads to the more investment in the terms of development in innovation
product as well as in research and development (Feldman and Worline, 2016).
3. More demanding customers- Because of increasing competition this process has
extended the choice of the customers in the terms of services and goods. Therefore in this
way customers have been becoming demanding day by day. There are number of new
schemes which have been evolved by the firm in order to drag the attention of the
customers in the larger customer oriented markets.