4 Political Implication

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Organisation & SocialEnvironment

Chapter 4

Political Implication


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Module Code and Module Title Title of Slides

Learning outcomes

At the end of the lesson, you should be able to;

explain the political implications in theorganisation

identify government power and its influence

explain the role of labour union and its rolein organisation, society and government


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Political Environment

government attitude have direct impact onbusiness environment

potential government attitudes are gleaned

from political parties manifestos; theirblueprints of action if elected


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Political Environment (cont)

Four key governmental roles in a mixed economysuch as Malaysia;

1. Entrepreneur

3. Regulator

2. Planner4. PromoterMixed Economy


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1. Entrepreneur

providing service through its own departmentor through its agencies (e.g, nationalisedindustries; major user of resources workers,materials, machines & money)

also major provider of goods and services


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2. Planner

governments policies on energy, transport,communication, overseas trade & relations are

all long term planning

Its attempt to control the overall level anddirection of economic activities are results of

assessments of where we are now & wherewe would like to be in 5 years time


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3. Regulator

Business framework is becoming increasingly

complex; common law are unable to cope withthe complexity

Therefore, regulators, on behalf of the

government are appointed to intervene andregulate business units

This is to ensure competition throughmonopoly, merger, restrictive trade practices




legislation as well as to protect the environmentfrom pollution

individual as consumes & employees will be

better protected

4. Promoter government provide new opportunities and

promotes business through its activities (e.g, UKgovernment promoting R&D through theScience Research Council)




Other examples; encouragement of trade,provision of college based courses providingskilled personnel for industry and commerce



Implication of government

EmploymentManpower services

Minimum wage legislationIndustrial trainingHealth & safety

Industrial relation

Trade and industryExport aidIndustrial strategyCompetition policy]consumer protection

Technological advance

Treasury

1. Control of the economy2. Control of the public

sector Energy policy;Energy supply

Energy conservationNew energy sources

TransportVehicle safety

Motorway system

Road safety

Environment

Environmental protection

Regional planningLocal government policy

Water resources

THEFIRM



Trade Union

labor unionin American English & trade unionin Commonwealth English

is an organisation formed by workers; most

typically, a single union will represent workersin a particular industry (industrial unionism) orcraft (craft unionism), within all or part of acountry

will be organised to improve and defend

wages, benefits, and working conditions



Trade Union (cont)

in many countries, a union may acquire thestatus of a legal entity with a mandate tonegotiate with employers to maintain and

improve wages and working conditions for theworkers it represents

in such cases, unions have certain legal rights,most importantly the right to negotiatecollectively with an employer (or employers)over wages, working hours and other termsand condition of employment



Trade Union (cont)

meaning that such things are not set unilaterallyby management, but must be agreed upon byboth parties.

in many circumstances, unions do not have suchrights and workers may typically threaten strikesor other collective action to pressure employersto negotiate



Trade Union (cont)

although union political structure and autonomyvaries widely from country to country, union

leaderships are usually formed through elections



Q & A



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