Something about the Philosophy of Commerce and Business.
“By taking profit maximization as an objective of business, the economists have led to the formulation of an economic theory of business. ”
With the growth in business activity the world over there has been great divergence as far as the business philosophy and thought is concerned. Some people have codified commercial or business practices while others have laid emphasis on the managerial part of business.Some thoughts have also been devoted to scientific management, bureaucratic management and values of management. By taking profit maximization as an objective of business, the economists have led to the formulation of an economic theory of business.
The application of business principles to commercial functions like banking, transport, insurance etc. has also been discussed in detail. Such like features of commerce and business thought have become quite popular these days.
A modern variant is the structural theory of business. Structural theory of business puts stress on the work to be done and the situation under which it is to be done. It is work, which matters at the end of the day. In an aggressive business world, the effectiveness of a concern is closely linked to the methods that are followed by it.
Superior and enhanced methods help in enhancing the competence of employees. So logical techniques, procedures and principles are the main planks of a structural philosophy of business.
The next facet of structuralism is the surroundings under which the work is done. The environment has an undeviating influence on the work taken on. A good environment is coupled with excellent performance.
In fact, theories about various business practices depend upon the nature of activities. For example, accounting is different from commercial services. So, the philosophy that goes behind these branches of business ought to have certain peculiarities and special features. Structural theory is quite helpful in giving meaningful interpretation to different concepts used in commercial practices.
The stress of this theory is on practices undertaken by a business. Various business activities don’t have standardized practices. Practices depend upon the nature of business or commercial activities.
These days emphasis is on knowing that how practices help in driving the guidelines or philosophy of commerce and business. Inclination is towards developing a pragmatic theory of business that encompasses almost every aspect of commerce and business in its totality.
Author - DeeKay
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