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Economics/Decision Method


In all developing countries, if you go to any government department and ask for any help from a Management level offices, they never take a decision and direct you properly. Why a  decision is delayed ?

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For centuries, almost all countries in the world (including USA, Oil rich Arab nations etc..) were ruled by British Empire. Britishers reserve the right to take any decision to themselves, and do not permit any other locals to take decisions. This has penetrated into the genes of all local populations and made them to have a fear to take any decision.

In the current millennium, dominated by the Internet and E-business, the Management decision has assumed a broad-base. But still all go by the traditional concepts. Your question is an eye-opener to expose the new dimensional decision methods  to the world

Management decision, from 1940s (just after the 2nd World war), was considered as an exclusive right of the head of the organisation. It was a legacy left behind by the great world wars 1 and 2, where the decision maker was a Commander or General (or an appropriate rank within a brigade), and the others should be dedicated soldier type followers.

The productivity of any strategic attack was measured by the ratio of the Output territory area captured with reference to the quantum numbers of men + artillery + other facilities provided.

Too many men + artilleries or too many escort boats + a war ship, were detectable by the enemy radar. If they are too less then the battle team is prone to failure.  The probability of success was studied by sending different quantum mix and the optimum was obtained by a trial and error experience. These in peace time, assumed a mathematical dimension called “Operations research” for optimising the profit or minimising the losses of a corporate organisation.


Lowering the Cost per unit of the Output product ,  indirectly improves the profit of that product at a constant price and universally assists the continued existence and growth of the companies. Hence, the companies made attempts to increase the productivity by a variety of management decisions.

The most obvious methods involve automation and computerisation which minimise the tasks that must be performed by the human. Recently, better and simpler decisions are being used that involve ergonomic design and worker comfort. It was found that a comfortable employee, can produce more than a counterpart who struggles through the day. In fact, some studies claim that decision to raise workplace temperature can have a drastic effect on office productivity. Experiments done by the Japanese Shiseido corporation also suggested that productivity could be increased by decisions to perfume or deodorise the air conditioning system of the workplaces.

Till 1990, the management decision motivators were constrained to the methodology, performance and profitability of individual corporate sectors.


During the post-2nd world war period (1947 to 1991) there was a Cold war situation in the world. It was a Geopolitical (Territorial superiority), Ideological (Ruling strategy superiority), and Economic (International superiority) struggle between the capitalistic United States +  its allies (West), and the communistic Soviet Union + its allies (East). It lasted from about 1947 to the period leading to the collapse of the Soviet Union on December 25, 1991.

During this period, both the Eastern and Western nations in cold war, drastically increased aggregate supply of various goods to prove their superiority. They deployed various management decision techniques to get quantitatively more output with a possibly less input. This inducted an increases  in the aggregate demand for these goods in the international market, covering the neutral, developing and under developed nations.

These in turn, not only decreased  the unemployment situation in both the Eastern and Western nations, but attracted a large scale immigration of labour from the developing and under developed world.  As a result, the international inflation  remained stable.


Just after the end of cold war, during 1990s (from 1990 to 1999 inclusive) there was an economic expansion in the United States leading to a complex series of economic, social, technological, cultural and political changes with increasing interdependence, integration and interaction between people and companies in far off locations. Key forces shaping this decade were the a global recession, due to the shift in the manufacturing process as well as the product delivery to remote locations, popularisation of personal computers, "dot-com" boom and the drastic rise in the Internet activities, particularly beginning from  the early 1990s.

The Management decision in this period assumed a new dimensions of continuous research and development, computer aided designs, information on any latest developments in infinite dimension, a  small physical output creating a large value, while a large physical output creating only a small value.  As a result, everything which were big or maxy prior to 1990s, started assuming the dimension of mini, covering both the products and processes. (Automobile, Camera, Computers, Mobile, TV, tele conferences, exchange of  commercial/surgical experiences etc…)

It was a take-off period for a Globalised management decision methodology. The Western front used a private capitalist approach and the Easterners followed a fully state owned communist approach in these methodologies. These drastic increases in quantum output with economized input started influencing the society more broadly, by improving living standards, creating income, and generating economic growth. Because of this, there were drastic changes in patterns of social behaviour, resulting from new communication technologies and changed/broadened male-female relationships. (See the author’s web page at


The internet started providing latest and tested on-line decision experiences on any product or the process.  This added a  the dimension of getting these on-line updates, moderate, innovate, prepare a suitable spot-decision and apply to a given situation.  

The input and output management decisions have become more crucial in the productivity level of organisations.  Thus the management decision in the current millennium is globalised. Then implicitly the term productivity is also gets globalised. Hence both Management Decision and Productivity should be measured together with reference to a common globalised unit.


As a result of globalization and internet links, the scope and the concept of decision has broadened to a two dimensional unit, integrating the productive needs of the corporate sectors as well as the socio-economic status of the nation. Corporate survival now depends on the National socio-economic survival, through the broadened E-business, globally scattered operation, appealing and attracting international social groups.  Also the intangible factors of Psychological, Social, International and Universal dimensions have assumed a priority influence on the decision dimension of all the sectors. This is applicable to the Management decisions in both private and government sectors. (Note : SED = Socio-Economic Development unit).

1) Management decisions are optimum when  SED goals/Input decisions > 1  &  SED goals/Output  
decisions > 1, Subject to  Output decisions/Input decisions > 1
2) Productivity = SED goals/Input > 1  & SED goals/Output > 1 subject to Quantum (Output/Input)> 1.
3) Social rate of return is important than Quantum rate of return.
4) Intangible elements  are important than  tangible elements.(Psychological, Social, Inter national, and Universal).
5) This is universally applicable to all developed/developing/under-developed nations.
6) This is proved and supported through an Algebraic Model.

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Basically a B.Sc (Physics) from the University of Madras, India. Started the career in production engineering under German and Italian experts. MBA in Management from IIM, Ahmedabad (India). Ph.D (Management) from the University of Bomaby (the first ever awarded in this subject). Headed the computer centres of Multi nationals; "Data Processing expert" of the Commonwealth, London (To implement World Bank and UNDP Computer softwares); "Consultant Adviser" to the Caribbean Development Bank (CDB), Barbados. Associated with Nobel Laureate in Economic Science-1979, Arthur Lewis (Past President of CDB) & 4 more on his introduction. Visiting professor to many universities. A Trained ISO 9001:2000 Quality Auditor. Over 40 years of combined experience in Accounts, Computer Software, Economics, Engineering, Management, Science, Technology, Research & Development and Qulaity systems. Author of over 60 Application Research papers. Currently a free-lance consultant in ISO Quality Systems, Socio-Economic development acceleration, Innovative software designs. Can answer any question in Theoritical/Applied-economics with an in-depth and innovative dimension. I DO NOT ANSWER : 1. STATISTICAL data & analysis. 2. PRIVATE questions, as they do not appear for PUBLIC view & search 3. Examination & Project report oriented questions. Website


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