Market economy

An economic system in which economic decisions and the pricing of goods and services are guided solely by the aggregate interactions of a country's citizens and businesses and there is little government intervention or central planning. This is the opposite of a centrally planned economy, in which government decisions drive most aspects of a country's economic activity. Investopedia explains 'Market Economy' Market economies work on the assumption that market forces, such as supply and demand, are the best determinants of what is right for a nation's well-being. These economies rarely engage in government interventions such as price fixing, license quotas and industry subsidizations. While most developed nations today could be classified as having mixed economies, they are often said to have market economies because they allow market forces to drive most of their activities, typically engaging in government intervention only to the extent that it is needed to provide stability. Although the market economy is clearly the system of choice in today's global marketplace, there is significant debate regarding the amount of government intervention considered optimal for efficient economic operations. socialism Socialismdefined as a centrally planned economy in which the government controls all means of productionwas the tragic failure of the twentieth century. Born of a commitment to remedy the economic and moral defects of CAPITALISM, it has far surpassed capitalism in both economic malfunction and moral cruelty. Yet the idea and the ideal of socialism linger on. Whether socialism in some form will eventually return as a major organizing force in human affairs is unknown, but no one can accurately appraise its prospects who has not taken into account the dramatic story of its rise and fall. apitalism, a term of disparagement coined by socialists in the mid-nineteenth century, is a misnomer for economic individualism, which ADAM SMITHearlier called the obvious and simple system of natural liberty (Wealth of Nations). Economic individualisms basic premise is that the pursuit of self-interest and the right to own private property are morally defensible and legally legitimate. Its major corollary is that the state exists to protect individual rights. Subject to certain restrictions, individuals (alone or with others) are free to decide where to invest, what to produce or sell, and what prices to charge. There is no natural limit to the range of their efforts in terms of assets, sales, and PROFITS; or the number of customers, employees, and investors; or whether they operate in local, regional, national, or international markets. Planned, market and mixed economies

Market, planned and mixed economies Three main sets of decisions need to be made by the economic system - what to produce, how to produce, and how to share out the product of the economy. A market economy is one in which answers to the three questions above are determined by buyers and sellers interacting with each other without government interference. By contrast, a planned economy is one in which a central planning agency such as the government makes the major economic decisions. A mixed economy includes elements of both the market and the planned economies. Those (and there are few of these left today) that favour the centrally planned economy argue that the government (central planners) are best placed to meet the needs of all the people of a particular society. Those in favour of the free market argue that central planning wastes resources and that the market makes sure that consumers get what they want produced, while competitive firms supply it at a profit. The reality is that most societies operate some form of mixed economy. In the UK we have a mixed economy. Most decisions are made by the market - e.g. when you buy goods in supermarket you vote with your money for the goods that you want to buy. However, some decisions are made by the government e.g. those relating to road building, school and hospital construction, the supply of medicines in hospitals etc. In the UK, the emphasis is on letting the market make most decisions because of its high level of efficiency in responding to customer preferences. However, some decisions must be made by the government on behalf of society e.g. decisions about military spending, and public education.

value,assumption,belief in OD
Presentation Transcript
VALUES, ASSUMPTIONS, AND BELIEFS IN ORGANIZATION DEVELOPMENT(OD) : VALUES, ASSUMPTIONS, AND BELIEFS IN ORGANIZATION DEVELOPMENT(OD) PRESENTED BY: MEETU DHIMAN

introduction : introduction A set of values, assumptions and beliefs is characteristics of OD, distinguishing OD from other improvement/change strategies. The field of OD rests on a foundation of values and assumptions about people and organizations. These beliefs help to define what OD is and guide its implementation.

definitions

Slide 4: Values, assumptions and beliefs provide structure and stability for people as they attempt to understand the world around them. OD values tends to be:

Slide 5: Intellectual climate prevalent then, the initial enthusiasm for scientific management; bureaucracy and authoritarian leadership, gave way to increasing doubts about the organizational practices as theory and research pointed out their limitations, dysfunctions and negative consequences. Organization development practitioners formulated a set of values and assumptions regarding people, groups, and organizations i.e. Humanistic, Optimistic, Democratic.

Early statements of od values and assumptions : Early statements of od values and assumptions Values are an integral part of OD. In 1969, Warren Bennis proposed the OD practitioners(change agent) share a set of normative goals based on their Humanistic/Democratic philosophy. He tested the following normative goals: Improvement in interpersonal competence. A shift in values, so that human factors and feelings come to be considered legitimate. Development of more effective Team Management i.e. capacity for functional groups to work more competently. Development of increased understanding between and within working groups in order to reduce tension. Development of better methods of conflict resolution. Rather than the usual bureaucratic methods, which rely mainly on suppression, compromise and unprincipled power more rational and open methods of conflict resolution are sought.

Slide 7: Development of organic rather than mechanical/mechanistic systems. This is a strong reaction against the idea of organs as mechanisms which managers work on like purchasing buttons.

definition : definition According to Bennis, The basic value underlying all OD theory and practice is that of CHOICE. Though focused attention, and through the collection and feedback of relevant data to relevant people, more choice becomes available and hence better decisions are made. Richard Beckhard, in 1969, described several assumptions about the nature and functioning of organizations, held by

OD practitioners, as tested below: The basic building blocks of an organization are groups(teams) so the basic units of change are groups and not individuals. An always relevant change goal is the reduction of inappropriate competition between parts of the organization and the development of a more collaborative condition. Decision-making in a healthy organization is located where the information sources are rather than in a particular role or level of hierarchy.

Slide 9: Organizations, sub-unit of organizations and individuals continuously manage their affairs against goals. Control are interim measures, not the basis of managerial strategy. One goal of healthy organization is to develop generally open communication, mutual trust and confidence between and across levels. People support what they help create. People effected by a change must be allowed active participation and a sense of ownership in planning and conduct of the change. Values and assumptions

value,assumption,belief in OD
Presentation Transcript
VALUES, ASSUMPTIONS, AND BELIEFS IN ORGANIZATION DEVELOPMENT(OD) : VALUES, ASSUMPTIONS, AND BELIEFS IN ORGANIZATION DEVELOPMENT(OD) PRESENTED BY: MEETU DHIMAN

introduction : introduction A set of values, assumptions and beliefs is characteristics of OD, distinguishing OD from other improvement/change strategies. The field of OD rests on a foundation of values and assumptions about people and organizations. These beliefs help to define what OD is and guide its implementation. definitions Slide 4: Values, assumptions and beliefs provide structure and stability for people as they attempt to understand the world around them. OD values tends to be:

Slide 5: Intellectual climate prevalent then, the initial enthusiasm for scientific management; bureaucracy and authoritarian leadership, gave way to increasing doubts about the organizational practices as theory and research pointed out their limitations, dysfunctions and negative consequences. Organization development practitioners formulated a set of values and assumptions regarding people, groups, and organizations i.e. Humanistic, Optimistic, Democratic.

Early statements of od values and assumptions : Early statements of od values and assumptions Values are an integral part of OD. In 1969, Warren Bennis proposed the OD practitioners(change agent) share a set of normative goals based on their Humanistic/Democratic philosophy. He tested the following normative goals: Improvement in interpersonal competence. A shift in values, so that human factors and feelings come to be considered legitimate. Development of more effective Team Management i.e. capacity for functional groups to work more competently. Development of increased understanding between and within working groups in order to reduce tension. Development of better methods of conflict resolution. Rather than the usual bureaucratic methods, which rely mainly on suppression, compromise and unprincipled power more rational and open methods of conflict resolution are sought.

Slide 7: Development of organic rather than mechanical/mechanistic systems. This is a strong reaction against the idea of organs as mechanisms which managers work on like purchasing buttons.

definition : definition According to Bennis, The basic value underlying all OD theory and practice is that of CHOICE. Though focused attention, and through the collection and feedback of relevant data to relevant people, more choice becomes available and hence better decisions are made. Richard Beckhard, in 1969, described several assumptions about the nature and functioning of organizations, held by OD practitioners, as tested below: The basic building blocks of an organization are groups(teams) so the basic units of change are groups and not individuals. An always relevant change goal is the reduction of inappropriate competition between parts of the organization and the development of a more collaborative

condition. Decision-making in a healthy organization is located where the information sources are rather than in a particular role or level of hierarchy.

Slide 9: Organizations, sub-unit of organizations and individuals continuously manage their affairs against goals. Control are interim measures, not the basis of managerial strategy. One goal of healthy organization is to develop generally open communication, mutual trust and confidence between and across levels. People support what they help create. People effected by a change must be allowed active participation and a sense of ownership in planning and conduct of the change.