Organisation & Social Environment

Chapter 4 Political Implication

Learning outcomes

At the end of the lesson, you should be able to; explain the political implications in the organisation identify government power and its influence explain the role of labour union and its role in organisation, society and government

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Political Environment
government attitude have direct impact on business environment potential government attitudes are gleaned from political parties manifestos; their blueprints of action if elected

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Political Environment (cont)

Four key governmental roles in a mixed economy such as Malaysia;
1. Entrepreneur

4. Promoter

Mixed Economy

2. Planner

3. Regulator
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Political Environment (cont)

1. Entrepreneur
providing service through its own department or through its agencies (e.g, nationalised industries; major user of resources workers, materials, machines & money) also major provider of goods and services

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Political Environment (cont)

2. Planner governments policies on energy, transport, communication, overseas trade & relations are all long term planning Its attempt to control the overall level and direction of economic activities are results of assessments of where we are now & where we would like to be in 5 years time

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Political Environment (cont)

3. Regulator Business framework is becoming increasingly complex; common law are unable to cope with the complexity Therefore, regulators, on behalf of the government are appointed to intervene and regulate business units This is to ensure competition through monopoly, merger, restrictive trade practices
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Political Environment (cont)

legislation as well as to protect the environment from pollution individual as consumes & employees will be better protected

4. Promoter government provide new opportunities and promotes business through its activities (e.g, UK government promoting R&D through the Science Research Council)
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Political Environment (cont)

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

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Implication of government
Trade and industry Export aid Industrial strategy Competition policy ]consumer protection Technological advance Employment Manpower services Minimum wage legislation Industrial training Health & safety Industrial relation

Transport Vehicle safety Motorway system Road safety

THE FIRM Treasury 1. Control of the economy 2. Control of the public sector

Energy policy; Energy supply Energy conservation New energy sources

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Environment Environmental protection Regional planning Local government policy Water resources

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Trade Union
labor union in American English & trade union in Commonwealth English is an organisation formed by workers; most typically, a single union will represent workers in a particular industry (industrial unionism) or craft (craft unionism), within all or part of a country will be organised to improve and defend wages, benefits, and working conditions
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Trade Union (cont)

in many countries, a union may acquire the status of a legal entity with a mandate to negotiate with employers to maintain and improve wages and working conditions for the workers it represents in such cases, unions have certain legal rights, most importantly the right to negotiate collectively with an employer (or employers) over wages, working hours and other terms and condition of employment
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Trade Union (cont)

meaning that such things are not set unilaterally by management, but must be agreed upon by both parties. in many circumstances, unions do not have such rights and workers may typically threaten strikes or other collective action to pressure employers to negotiate

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Trade Union (cont)

although union political structure and autonomy varies widely from country to country, union leaderships are usually formed through elections

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Q&A

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Next Lesson

Organisation Structure

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