MANAGERIAL ECONOMISTRoles and

Responsibilities

A managerial economist can play a very important role by assisting the management in using the increasingly specialized skill and sophisticated techniques which are required to solve the difficult problems of successful decision making and forward planning.

1.Environmental studies An analysis and forecast of external factors

constituting general business conditions are of great significance since every business firm is affected by them. Certain important relevant questions in this connection are as follows;

What is the outlook for the national economy? what are the most important economic trend? What phase of the business cycle lies immediately ahead?

What about population shift and resultant ups and downs in regional purchasing power?

Role of a managerial economist

What are the demand prospects in new as well as established markets?

Where are the market and customer opportunities likely to expand or contract most rapidly?

What the prices of raw materials and finished products are likely to be?

Is competition likely to increase or decrease?

What are the main components of the five year plan?

What is the outlook regarding government’s economic policies and regulations

2.Business operation A managerial economist can also

be helpful to the management in making decision relating to the internal operations of a firm in respect of such problem as price, rate of operations, investment, expansion or contraction. Certain relevant questions are;

What will be a reasonable sales and profit budget for the next year?

What will be the most appropriate production schedules and inventory policies for the next six month?

What changes in wage and price policies should be made now?

How much cash will be available next month and how should it be invested?

3.Specific functions Managerial economist can play the

following specific functions are; Sales forecasting Industrial market research Economic analysis of competing companies Pricing problem of industry Capital projects

Production programmes Security or investment analysis Advice on trade and public relations Advice on foreign exchange Economic analysis of agriculture Analysis of underdeveloped economies Environmental forecasting

4.Economic intelligence Managerial economist may also provide

general intelligence service supplying management with economic information of general interest. In fact, a good deal of published material is already available and it would be useful for a firm to have someone who understands it.

5.Participating in public debates Many well known business economist

participate in public debate. Their advice and views are being sought by the government and society alike. Their practical experience in business and industry adds stature to their view.

6.Indian context Managerial economist is expected to

perform the following functions; Macro forecasting for demand and supply Production planning at micro and macro

level Capacity planning and product mix

determinations Economics of various production line Economics feasibility of new production

lines or processes and projects

Assistance in preparation of overall development plans

Preparation of periodical economic reports bearing on various matters

Preparing briefs, speeches, articles and papers for top management for various chambers, committees, seminars, conferences.

RESPONSIBILITIES OF A MANAGERIAL ECONOMIST

Managerial Economist has a significant role in managerial decision making. His responsibilities are

Maximization of Profit.

To alert management if there is an error in forecast.

Establish and maintain many contacts with individuals and data sources.

To keep the management informed of the economic trends.

He must be able to earn full status on the business team

A managerial economist has a very important role to play by helping the management in successful decision making and forward planning. But to discharge his role successfully, he must recognize his responsibilities and obligations. Managerial economists can contribute significantly to the profitable growth of firms and effective solution of their problems.

CONCLUSION