MANAGERIAL ECONOMICS; Diagnostics into Business struggles in Africa and managerial approach applicable

Modern Business has to contend with serious problems like radical legislation, alien propaganda and shifting of public opinion in Africa, which forces rapid changes in business methods and policies, including the effort of management to shoulder an increased burden of national responsibility. As always in the past, industry will have to take first place in paying the enormous tax bills for social and political innovations. The only preposition for industry now, is to take care of added responsibility and do the job profitably.

No intelligent student of business conditions, could deny that industry is facing many challenges in management, because of the rapid shifting of political and economic scenes. On one side, all business must endure the pressure of increasing taxes and higher costs in production, while the other side, require as a matter of necessity for businesses to comply with the new laws and unfamiliar demands due very largely to manufactured public opinions in Africa.

“Since 1933, the major problems of industry appears to have been in the field of labour and there is nothing to indicate that, the problems will be solved in the near future” (McCormick, 1933). In all of my analysis to find basic causes and express them in the simplest possible terms, arrived to the conclusion of two simple primary causes of all labour troubles, which are;

1.The actual unfairness on the past of employers, expressed in unsatisfactory working conditions, working hours and inadequate wages

2. The ignorance on the part of employers as to controlling human factors and the ignorance on the part of the employee regarding the processes, merchandizing, managements and profits of business


Clearly, the responsibility for the elimination of these causes, rests entirely on modern management. If the African situation is criterion, we cannot expect any government to enter into educational campaign which does not advance the interests of its political domination.  Businesses must find a way, not only to satisfy the reasonable desires of it workers, but also to protect them against dangers to themselves, when attempts are made to mislead them by false political and social prophets.

As earlier lamented on the challenges facing management in businesses within the continent of Africa, it will be appropriate on the bases of this paper to recommend a management approach, seen as realistic and valuable instrument for enterprises striving to grow in Africa, based on series of experimental test conducted over the years with this module and the fruitful testimony thereof from an enterprise whose name has been re-held based on the owner’s request.

The module is termed as Multiple Management System; It is a business management approach whereby Senior Management Board (SMB) and Junior Management Board (JMB) are setup simultaneously under the same business to oversee the complete governing of the corporate structure of the business, with both board having a designated role to play for a specific goal obtaining, yet meet regularly to brainstorm and charter an efficient pathway for the Enterprise growth. It must also be observed that, the multiple management system offer no general panacea, nor does it furnish any magic formula for the solving of labour problems. The module will not work, if an organization is dominated with selfish desire to make the largest possible profit at the lowest possible cost or used as a means of deception to pacify workers by falsely representing that, they are taking part in management, it will result in havoc.

If the Multiple management system  module is properly adopted, it help to serve and forewarn workers of the business and protect them with the truth. It furnishes a common ground for complete understanding and tends to eliminate disagreements between employer and employee by harmonizing their interests.

It must be observed, all radical movements create class struggle and depend for their advancement on the false premise that employer and employee are natural enemies with divergent and antagonistic interests. The class struggle should have no place in industrial countries, and it cannot be promoted among workers who know that, throughout the history of the world, wherever it has existed, the working class pay it inevitable penalties in exploitation, inadequate wages, forced labour and misery. I therefore submit that, all arguments of radicalism lose their appeal when they meet the fact that, in reality, the Interests of the employer and the employee, capital and labour are so intimately related as to be almost identical.

Analyze the arguments of the communistic theorists and radical organizers, and you will find that, they invariable appeal to the unthinking emotions and the weakest of the human factors. Obviously the only effective defense is the irresistible appeal to logical thinking and a stimulation of the wholesome creative elements of human mind, under a system of co-operation and absolutely fair dealing.

For many years, the best thought in industry growth, has been gradually adopting methods of profit sharing and other means of expressing the relationship of interests. Multiple management system approach goes further, to intelligently cut off selfishness because it not only require fair division of profits but also the utilization of the spirits of justice and equity. It brings an enthusiastic return of contributions of ideas and activities which improve the business. It wipes out the demoralizing elements of class distinction, establishes the development of the business as the major objective of all and guide the thought of the entire organization into a constructive channels.



Charles P. McCormick (1933) McCormick System of Management, the efficiency magazine, Kent House, 87 Regent Street London.


Emmanuel Tweneboah Senzu, is a Professor of Frederic Bastiat Institute of Cape Coast Technical University Ghana. Experts in Managerial Economics, Monetary Economics, Investment Banking, Applied Econometrics and Quantitative Analytics. |

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