Trends in Organizational Behavior.

Trends in Organizational Behavior. Impact on the Organizational Behavior The article is d “Will The Cure Be Worse Than The Disease?” and is published in the February 2008 issue of“Fortune” magazine.

Synopsis:

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The Article discusses the current condition of the US feral reserve and the impact of its monetary policy on the economy as a whole. The consumption expenditures are on an ever increasing stage against the low productive growth. still the indicators have been showing a positive growth in terms of GDP. The fed has been busy in speculating dollar supply to keep the interest rates (Shostak, 2008) low just for the sake of encouraging more investment ventures and continuous to do so whenever it observes even a slight decrease in the employment level. However, the unemployment is still increasing because lowering the rates and/or flooding the market with the dollar is not a solution to the problem. Ben Bernanke, the famous economist and current chairman of the board of governors of the Fed is constantly pursuing his current strategy (Lowenstein, 2008). He hasn’t considered the potential threat to the country of facing a major break down in terms of a great depression as was in the horrible recession of 1970s (Fortune, 2008). Several other economists challenge Bernanke on his loose monetary policy and are of the view that the opportunity cost of maintain this trend far much a higher than if we accept to sustain a small tightening to fight back the hikes in inflation and to avoid a shocking recession of the economy (Lowenstein, 2008). The various indices and statistics have further depicted a picture acknowledging a similar result that might be faced by America, if this continues. The dollar has been facing constant depreciation against various currencies of the world including Euro as the most threatening element in terms of trade. The purchasing power is reducing, though export s show a positive growth, the prices of import continue to climb up, thus burdening the foreign reserves day by day. This issue is not only the cause of the rising oil prices but due to the change in priorities and trends in spending. People are hesitant to save and thus consume more than they can and/or they should. This in turn is gradually rusting the economy and exhausting its credit line. The Fed is now considering the threats and is now putting controls on the dollar to regulate and fix its devaluation and monitor the soaring inflation.

Relevance to Course:

The article is relevant to the organizational behavior in term of the effects that it has on the economy. With such unproductive conditions, the employees are confused and face the threat of losing their jobs. They want to have more in terms of salaries/wages and/or compensations due to the inflationary effects on prices of all products. The employers on the other hand are ambivalent on whether to continue operating and/or extending their manufacturing (or servicing) concerns or not. The whole environment is facing a high level of uncertainty. The organizations are losing integration within their departments, divisions and employees (Thompson, 1999). Everyone is busy in their own individual benefit without considering the impact on the whole organization. Thus the organizational behavior in such conditions can be described as one facing the “stand-alone effect”. the concept of organization in the behavior is lost (Thompson, 1999), what remains is self-interest.

Questions:

Q1: What steps need to be taken to restore stability in the environment?

Q2: How should the companies organize their structures so that they can cope up with such situations if they arise in future?

Works Cited

1. Ackroyd Stephen & Thompson Paul (1999) Organizational Misbehaviour. Sage Publications Ltd

2. Lowenstein Roger (2008) Is Bernanke Behind The Curve? Retrieved January 31, 2008, from http://www.huffingtonpost.com

3. Shostak Frank (2008) Why Is Bernanke Trying to Fight the Bear? Retrieved January 31, 2008, from http://blog.mises.

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