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Introduction
Managers are supposed to make decisions which are based on paradigms departing from information processing and traditional rationality models. This happens under crisis conditions with little information and time for choice consideration. Recently, management literature has seen theoretical and empirical support for tacit knowledge and intuition in decision process, no prominent role has been played by role of emotion. Human resource managers are custodians for decisions made in the organization about people and there is much weight carried by these decisions in terms of financial and ethical terms. (Salvatore, 2000 pp12-13).
There are environmental regulations and increase in related compliance costs. Environment is seen as a major factor that determines future competitiveness. Determining the factors that influence the making of environmental investment decisions is of major interest. Research in the past has been looking at how economic factors influence health, safety and environmental decisions. Behavioral factors has been explored by the dissertation specifically responsibility and accountability levels and resulting policy and managerial implications. The increased regulatory requirement and external accountability influence EHS decisions of the firm through development of theoretical model incorporating the reputation effects on the decisions. Empirical study determines whether the company is able to pursue reputation benefits by increasing external accountability. The data from council of the economic priorities shows positive relationship between levels reputation and internal accountability system.
Evidence shows that role of internal accountability on EHS performance is being provided by deployment of accountability on environmental performance in the organization. Although there is commitment of top management to EHS performance, increased accountability level for EHS performance makes improvement in the area. There is evidence provided by empirical research on how behavioral factors such as reputation and accountability levels influence investment decisions. (Baye, 2007 pp24-26)
Interpreting how demographic changes will affect economic activity over the next decade or two using the course materials
In many countries that are developed, demographic change is largely unprecedented. There are limitations to systematic analysis of fiscal and economic consequences as common task of contributions that are collected. In Germany, empirical evidence is lacking and what needs to be brought forth is theory based projections and predictions. Many theoretical models are applied and are devised under conditions where population is growing with stable age composition. Conventional economic wisdom fail to capture numerous channels where there is spread out of effects of demographic change. (Salvatore, 2000 pp14-15).
There is potential impact of ageing in the economy because ageing affect economies through the changes balance between investment and savings. Changes in investment and savings bring about real interest rates adjustment which is tampered by production factors that flow internationally. Life cycle theory shows that individual smooth their consumption throughout their lifetime. Income will be relatively lower when individuals are young or retired and savings follow hump-shaped pattern where savings are higher during working life. Ageing population increases proportion of households who have lower rate of savings and reduced private savings. Ageing population exerts pressure on the public finances because there is increase in number of beneficiaries while the contributors to the system continue to shrink. (Maurice, 2001 pp11-15).
References
Salvatore D. (2000): Managerial economics in Global Economy: South-Western Pub, pp 12-15.
Baye M. (2007): Managerial Economics and Business Strategy: McGraw-Hill, pp 24-26.
Maurice C. (2001): Managerial Economics: McGraw-Hill, pp 11-15.
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