Explain the functions and responsibilities of managerial economist.Ripunjay Tiwari
Ans. Functions – The specific functions of managerial economists are given below-
(i) Capital projects
(ii) Sales forecasting
(iii) Analysis of underdeveloped economies
(iv) Economic analysis of competing companies
( v) Industrial market research
(vi) Pricing problems of industry
(vii) Economic analysis of agriculture
(viii) Production programmers
(ix) Environmental forecasting
(x) Advice on foreign exchange.
Responsibilities – The most important requirement for a managerial economist is that his objectives must coincide with that of the business. Because in most of the cases, the firms try to maximize profits on their
invested ~capital, the managerial economist must also help in attaining this goal. So long as he maintains that conviction and helps increasing the ability of the firm to maximize profits he will be a successful managerial economist. The second main responsibility of a managerial economist is to try to
make as accurate forecasts as possible. Generally, every decision taken by a management has implications going beyond the present, while, on the other side, future is rather uncertain. Hence, it is essential and obligatory for a managerial economist to make future forecasts in such a way that the risks involved in the uncertainties of future are minimized for the firm. He will have to make these forecasts on the basis of data on the. market conditions, the general economic environment, the government policies, etc. He uses the techniques of probability for forecasting. A managerial economist is supposed to forecast the trend and shifts in the activities of importance to the firm; be it sales, profits, demand, cost etc. If a forecast along with its possible applications for the firm is available, the management can follow a more orderly course of business planning. If a managerial economist can go on providing successful forecasts at
the needed time, he is bound to be a successful executive. Here, some points are required to be mentioned. First, if a managerial economist sees that the presented forecast has undergone a” change because of some sudden and unaccounted factors, it is his responsibility to work out the new forecast and present it at the earliest possible time. By drawing timely and prompt attention to changes in forecasts, a managerial economist serves well both the management and his own interest. Secondly, the caliber of a managerial
economist is usually judged by his ability to obtain essential information quickly . by personal contacts rather than by lengthy research from either the readily available sources or obscure reference sources.
Finally, a managerial economist will contribute adequately only when he is a member of full status in the business team. He must be ready to take up challenging tasks. Whenever some special assignments come to him, he should be ready to undertake them with full seriousness. It is for the managerial
economist that he makes his services essential and most sought after, both with the help of his ability, training and experience as well as due to his capacity to win continuing support for himself and his professional ideas. For the latter, an essential condition is that he can put even the most sophisticated ideas in the easiest and common language and in a convincing way.