How do gold prices impact the world economy ?

 Gold is one of the precious metals in various nations. It is one of the most demanded commodities in several nations but gold prices are still largely driven by global factors. Gold jewelry demand is very high in nations such as China, India, Dubai, and many other nations also. Gold pieces impact global business. Gold prices reflect changes in the US dollar compared to other nations' currencies. The value of the currency is highly dependent on the gold prices in the dollar. Another reason is central banks of various are required to maintain gold in their reserves also for the operation of the economy and controlling the financial situation also. At the moment, gold prices are continually increasing because of inflation. the word gold council is the institute that analyzes gold consumption all around the world. The WGC forecasts and publishes its reports. it will also play the role of a guide for the global gold market. Let us look at those factors which affect the gold price in the world economy. 

Currency market 



In general, gold prices reflect changes in the value of the US dollar compare to other foreign currencies. In short, its an impact on the value of the currency. If the dollar is strong, it means even if the gold price sustains in terms of the dollar then gold will be more expensive in foreign nations so importer nations paid more. That leads to cut demand and put pressure on the gold prices, the prices of gold down in terms of dollars, and pay more in the dollar. In the opposite situation when the dollar is weak because of their economic condition then gold became a more attractive source of investment because it safe way of investment for investors. Therefore the demand for gold increased and pushed the gold price upward. For these reasons gold play important role in the currency market. 



Impact on the strength of the economy 



When the economic condition is very strong other than gold this situation refers to the economy performing well. In these situations, investors attract those commodities that perform well rather than metals like gold. In contrast, in the situation when the economy is not performing well then the demand for stocks and other financial assets then the investor and the policymakers drive toward gold investment for maintaining the cash flow in the market. It is one of the safest ways of investing in gold and cash. 



Impact on the interest rates



The interest rate is also correlated to the price of gold. If the interest rate is very low then it will choose as an alternative to investment gold rather than bonds and other fixed income investments because in return they will pay a very little amount of income and the risk of a substantial decrease in value when a rate rise. On the contrary, situation if the rate of interest is very high then it will beneficial to choose investment in bonds rather than assets like gold because it will give high returns. In this situation, many investors take gold loans for further investment and take advantage of better returns. 



Inflation 



In the case of inflation, gold plays a vital role in maintaining liquidity in the market. Inflation is threatening the value of financial assets like stocks, bonds, and many more. Therefore gold looks more attractive source of investment for storing money. Because inflation creates a lot of uncertainty in the financial market then many investors look for a safe option for investment for using their time and staying away from the risks of geopolitical conflict. In this situation the currency is not a reliable source then it naturally turns towards gold which helps to maintain cash flow in the economy and also helps in pushing prices also. 



Gold price affects a nation's import and export 



The currency value of a nation is strongly reliant on the value of its export and import. If a nation imports excess of its exports then the value of its currency will decline. This situation is work visa versa. Thus, countries that export gold and have a good amount of gold reserves will help strengthen their currency. The prices of gold will increase also. In another word, increasing the price of gold can create a surplus in the nations income.  

On the other hand, if the nation imports a high amount of gold then it will make a weak currency when the prices of gold rise. When the central banks purchase gold, it affects the supply and demand of the domestic currency also. It will create inflation. Gold is a very important factor for printing its currency also because they need to make enough reserves of gold. 



Reserves of gold 



The reserves of gold are very important for the strengthening of the nations economy. Central banks need to make reserves of gold for taking loans from the IMF. This will also help to analyze the situation economy.       



Conclusion 



All these facts and other factors are also moving in different directions simultaneously in the global financial market that will also impact gold. thre is clear how difficult it can be to see the relationship between the gold markets with the economic condition. but I hope this information helps everyone for understanding the fundamental of how the gold market work. It will help you to invest more effectively in the commodities and take advantage of high returns also.     

            

 

Many risks behind IMF global growth outlook of doom

 IMF refers to the international Monterey fund; it is the institution of the united nation that set standards for the global economy intending to strengthen its participatory countries economically. Currently, 189 nations are a member of this organization and the members represent to IMF executive board. A perfect storm of doom has seen pummeled the global economy in recent months, the global growth is undermining. However, the IMF warned on Tuesday that the worst-case scenario is plausible, which would cut the growth at global and see one of the lowest levels of growth in the past five decades. According to the IMF, the reason behind the sharp decrease in growth of the global economy is the Ukraine war, raising the energy and food prices, supply chain disruption, and many others also. These are the reason that the world is suffering from inflation. Central banks are also raising interest rates. The international Monterey fund executives mentioned there are seven reasons behind the global growth outlook of doom that is. 

  1. Sudden stop in Europes gas import 
  2. More persistent inflation 
  3. Escalation of the chains property crisis 
  4. Renewed covid flare-ups 
  5. The Ukraine war 
  6. Supply chain disruption 
  7. Increased in food prices and energy 

These are the seven reasons behind the shaping slowdown in global economic growth. If these seven risk outlooks occur then the global growth will fall by 2 percent in 2023. Let us discuss how these risks affect global growth. 

The gas problem in Europe 

In the escalation of the Russian invasion of Ukraine, according to several reports that since April, the Russian gas pipeline to Europe has been stopped to about 40 percent of the previous year's level. The European government imposed sanctions against Russia because of its war. The pain is not expected to relax anytime soon, and the IMF forecast volume can be declined further. The worst case scenario is a total cession of export gas in 2022 that could be increase inflation world wide and that effect Europe badly with down fall in global economy growth. This will hit the cross border trade also. this make circle back to Ukraine war. 

More persistence inflations 

The inflations are continuously increasing in 2022 all around the world. Inflation is seen in food prices and energy prices at the global level. This inflation is spurring and prompting the government to raise borrowing costs to tamp down the demand. In the worst-case scenario, central banks take action and participate in recession even as costs rise, which will create a scenario that is known as stagflation. The case of inflation creates uncertainty in employment. If the policymakers fail to make an appropriate decision then they can face further complications. However, it is expecting the economy to return to near the pandemic level by the end of 2024. 

Higher food and energy prices

An increase in food and energy prices highly impacts daily life. These raises in price threaten not just family budgets but also social life. The reason behind food inflation is Russias blockade of Ukrainian grain export.  The supply chain disruption is also impact the prices of food and energy also. There are several uncertainties faced at the global level and beyond the global economy, this conflict has created global political fragmentation and geopolitical blocs also. It will impact the smooth working of the global economy and politics also. 

The Ukraine war 

The Ukraine war is the main reason that hit economy at global level. The Ukraine war is not only an impact on the economy but geopolitics also. This conflict creates a lot of nations means the difference in technology standers and cross-border payment systems, currencies, trade of economies, and many more. It will also impact the multilateral cooperation among nations. Thus less interaction on global level issues like climate change, worsening the food crisis, and many other conservable issues. 

Renewing the COVID cases  

It provides relief when we see an ongoing covid outbreak, including the financial support and reworking of Beijing's zero cases covid strategy. This offers some sign of hope in the world's second-largest economy. But the possibility of a large-scale outbreak due to contagious variants means widespread outbreak can be reason lockdown still a real threat to the world. It will impact not only the economy but also the finances. Meanwhile, China is facing trouble in the property sector also. All these things impact globally. It is not expecting all situations under control soon. 

Supply chain disruption  

Supply chain disruption is one of the common reasons for facing a shortage of material at the global level. During COVID globally faces disruption in the supply chain and still it is in a fragile situation. Every nation is not a master in every sector because of its physical structure and environment also. So nations are depending on each for goods and services. Thus supply chains play giant role economic growth of the nation. According to IMF the COVID situation is not under control yet so it can become worst. This will impact the growth of the global economy.

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this guide mentioned all information that impacts the global economy according to IMF. According to IMF, several problems nations are facing still because of mentioned reasons. So it guides how it impacts the economy. Providing prospects about the worst-case scenario of the economy, when situations are not controlled by the policymakers.    

 

 

      

     

 

Rapidly spreading monkey pox outbreak a global health emergency

 Recently the world health organization has reported its highest alert level for spreading monkey pox outbreak, declaring the virus effecting on public health at international level. Now the WHO viewed as the outbreak, this is significant enough that shows the threat to global health. It needs to respond immediately and take steps for preventing the virus from spreading further and potentially escalating into a pandemic. However the declaration does not impose any requirement on government of the nations, it requires take urgent actions. The WHO can only issues guide line and recommendations to member stats and nations, not impose. Member states need to report all events that pose a threat to global health. Now we talk about the monkey pox so it needs to understand  what monkey pox is, how it affects people and what are symptoms of monkey pox.

What is monkey pox?

Monkey pox is reference to wildlife; it is caused by the monkey pox virus. The only similarity between to the chickenpox and monkey pox is that they both are virus. Monkey pox is very similar to smallpox which was finished with roots thorough the global vaccination effort in 1980. There are two virus that formed by orthopoxvirus family. Monkey pox is them And it is not transmissible or form a smallpox in all over the body. Some researchers say it could be mutate and became the greater threat to humans. One study published in 2008 that warned if the monkey pox were to be introduce in unvaccinated population then it could be became an epidemic. Monkey pox can be transmitted person to person this was reveled in 2003 report. Before the 2022 outbreak, the monkey pox founded outside of Africa.  It was first time found in the monkey  in 1958 that is the reason it call monkey pox. It is not originated from the animals and the sources of disease in not found yet.

Common symptoms of monkey pox

The most common symptoms of the monkey pox are fever, headaches, muscle aches, uneasy feeling, and weakness in body. There are a lot of rash also present, resembling pimples and pus filled blister in all over the body including face, mouth, genitals, feet, and hand.

Transmission of virus

The transmission of monkey pox is animal to human. It occurs from direct contact of with blood, bodily, fluids, and mucosal of infected animals. There are several reports also published by various institutes for human transmission. According to CDC says the risk of spreading is contacting with people who suffering from monkey pox closely. In the current outbreak is spreading from person to person contact. It could be developed an infection from the droplet respiratory particles by spreading too much time face to face with the infected person. There are several reports that declared it can spread through direct contact with infectious rash, scabs, or body fluids.

Reported cases on different nations

There are several nations that declared health emergency before the WHO declared. The UN agency announced last month that monkey pox is need consider global emergency, because the cases of monkey pox have increased rapidly in last few weeks. The UN continually is pushing the WHO director general to issues alert in global level. 

The WHO held meeting for collecting evidence and make recommendation to director general before declaring a global health emergency. The committee was not able to reach a conclusion on transmission of monkey pox so they declared health emergency on basis of increasing the cases of monkey pox. They issue the highest alert based on the rapid spread of the outbreak around the global.

According to the WHO report, more than 16000 cases of monkey pox have been reported across the 70 nations as of now in this year and the 77% of cases are reported last early June. The mostly the reason of infection is having sex with the infected person. Five deaths have been reported in Africa this year from this virus. There is no death reports are happen in other nation so far. 

Diagnose

There are different methods uses for diagnosing the monkey pox by clinics but some symptoms must be consider such as rash illnesses, chickenpox, measles, bacterial skin infection, syphilis, and other body infections. If the monkey pox is suspected then the health worker should collect enough samples. It transported safely to laboratory with appropriate capability. Confirmation of monkey pox highly depends on the type and quality of specimen and different types of laboratory test. Specimens should be properly packed with all the appropriate precaution and shipped in accordance with national and international requirement. The polymerase chain reaction test preferred by the laboratory and it gives most appropriate result in accuracy and sensitivity.

Vaccination

as of now nations use vaccination of smallpox. Study shows that it is effective in preventing monkey pox. Right now, there is no availability of vaccination against the monkey pox. There are several research center are working on the vaccination of monkey pox.

Prevention

Nations needs to raise awareness of risk factor and educate people about the measures of monkey pox. They need make a strategy against the spreading of monkey pox. Scientific studies are now underway to assess the feasibility and appropriateness of vaccination for preventing and controlling of monkey pox.             

 

      

Concept of the university management

 University management refers to the concept that all the managers do the same job regardless of the little, management level, position, and many more. In simple word, all the principle of management is the same irrespective of the level of organization. It indicates the manager applies the same principle and skills at all levels of business and different business positions. The transferability of management skills is across countries and industries. But the job of managers differs with the business. Every business required a manager with their particular requirement such manager for survives in unique operations, for the political environment, manager for using different technology. However, there are still considerable controversies about the universality of management process and function. The management has covered worldwide command and acceptability. There are many different points of view about the applicability of management knowledge applicable everywhere or not. There are different opinions of the scholars on the University of Management. Here in this guide, we will discuss the arguments for the university and against as well. 

Arguments for university 

Many supporters say that the basis of management is the same and it can be suitable for all organizations and any nation also. There are some arguments for universal management. 

Management process 

The fundamental of management is the same for every business planning, organizing, staffing, making strategy, leading, controlling, and many more. These are functions that are important for every organization, they are performed by the manager irrespective of the type of business. The process of management is the same for every business and every nation also. 

Applicability of management knowledge 

The management knowledge is almost the same in every business. There are certain things that every manager needs to consider in business irrespective of the area and business. Some things apply to every business and the arguments are listed below.

Culture bounded management is argued by the different economists that every country has different cultures and depends on economic development. Culture includes attitude, tradition, beliefs, and values of society. There are variances in personality traits, and educational, social, political, and economic standards are also different. Since the management process is people-oriented, there is always possible that the application of management principles will always affect by these factors. However, if the basic rules under management operation are varying on nation then the common strategy will not be applicable.

  • Different objectives 

The management is required according to the business's determines. Different businesses have different objectives and goals so the management is linked with the objective. The experiences of management, skills, and competence can neither transferable nor applicable to every business and every situation also. Only analytical knowledge and administrative types of skills can transfer.

Differences in the philosophies 

There is a lot of difference in philosophies of business. Philosophies refer to the general concept and integrated attitudes. A manager can adopt specific philosophy on a particular object, but it is not necessary the same philosophy for every situation of the business. Adopting any philosophy requires different kinds of managerial techniques. According to researchers, no individual could be a great manager in religious, academic, military, and many more because each person is different and one could not able to encompass so much. 

Philosophies exert different influences on management working. They cannot choose one principle that is applicable universally. There are some common rules, principles, and many more that can be applied universally. Like human resources and the applicability of human resources can same but the uses can be different for different objectives? On the other hand, some people cannot differentiate between fundamental management and techniques. They are against universal management based on techniques of management. Techniques differ from person to person and organization to organization, nation to nation but the basics can remain the same. 

Management skills and principles transferable

The management skill and principles can transferable from organization to organization, person to person. When the principle and skills can transfer then they can be applied universally. The skills of a manager are developed through education and training. It same for everyone but the uses of skills can different. Every person can acquire this knowledge everywhere but the one condition if the management is universal. 

The argument in opposition to universal management 

Some experts feel the management cannot be universal because of the cross culture of nations. They also give an argument that one principle can not apply to every situation and field. Some strong arguments show that universal management is not applicable everywhere. 

  1. Cultural difference: Culture is one of the most important factors that affect business strategy. Business strategies include the traditional, religious, and cultural aspects that will not treat scientific temperaments. The differences in culture also restrict business management. 
  2. Objective difference: every business has its object and goals. Some businesses required skilled, professional, experienced managers for their desired goals. So the skills and experience are not transferable to person to another person. Thus universal management approach does not apply to different objectives. 
  3. Environmental changes: every business does not have the same environment at the workplace. So businesses are highly affected by the environment. Environment affects the strategy of business and principles of the business. Thus the universal management approach is not suitable in this situation also.  

 

      

 

 

 

    

 

 

Why chain’s crumbling real estate sector has an edge on the world?

 Chain’s real estate sector is again grabbing the attention of global investors because it is facing a heavy crisis in the property market chain. Chain’s home buyers are losing their patience as the country’s real state crisis threatens to lose its control. Hundreds of thousands of home investors are refused to pay mortgage amounts to unfinished or stalled housing projects. They start a mortgage boycott. 


There are several reports of real states published on 18 July, this situation has been seen in more than 80 cities and 200 projects had faced the crisis of stopping mortgage payments. The amount of mortgage hampered the development of the chain because the amount is around 2 trillion Yuan according to analysts at GF security co. and Deutsche Bank AG. Property investors have collapsed by nearly 60 percent compared to last year, the current year's situation became the worst in the history of china. On the other hand, several analysts expect property sales dropped by 25 percent from January to June along with the zero COVID case strategy. Many property developments have halted because they face a shortage in capital to finish construction. 


Now the situation became worst in china, the real sates developers are getting desperate to attempt to sell homes at whatever sales prices. They are accepting down payments in wheat, garlic, watermelons, and peaches to cater to farmers. 


The market holding of real state chain 


There is a lot of money invested in the chain’s real states. The investment is made by not only the leader but also middle-class man that has put significant money tied to the property market. There is around 7o percent of the nation’s household wealth stored in the property, along with 30 to 40 percent of bank loans book also. According to economists, the local government also holds the revenue from the land sale. 


A working paper published by the national bureau of economic research in 2020. According to that report estimation chain’s real estate sector accounted for 29 percent of the GDP. It is about $4 trillion out of a $14 trillion economy. 


In this situation, there is suffering not only in the middle class but also among several big leaders also. There are credit ratings cut sharply. The big concern about debt repayment has also arisen heavily. 


Indication of three red lines for the chain’s real estate market 


There are several guide lines introduced for better management of the heavy lever raged sector in august 2020. Government introduces the rule that is called three red lines. Three red lines refer to the limited borrowing of real estate firms. According to the tree red line developers need to maintain the three guides which are listed below. 


Developers need to maintain a 70 % debt to asset ratio or lower. 

100% maintain the cap on net debt to equity. 

Developers have enough cash capital in hand to satisfy short-term borrowings, debts, and liabilities. 

If the developers do not maintain these guides then the capability of developers will reduce to take the risk on additional debts. However, there are many reports comes that revealed many firms were using various tactics to take debts. There are many times disguised debts as equity in comparison with the three red line policy. After the investigation, chains of local government debts were listed as account around$ 4 trillion. It is estimated that there is a lot of loss hidden by the global. It can be more than half of the country’s GDP.


What is the impact on the global fallout? 


a major distortion real estate market chain has triggered an alarm bell for the all-around world. It still acts as the manufacturing hub of the world. if the chain’s economy falters then the nations all around also suffer from the slower and more expensive exports. 


Chain is the leader in electronic items and semiconductor manufacture. It has already stalled various sectors such as auto, consumer electronics, and many more sectors also open due to COVID. 


The chain also plays the role of the creditor for developing nations. Many developing nations are depending on the chain's products and infrastructure products also it will be a hard hit for those nations. The government of the chain has sponsored various projects under the belt and road initiatives. Many projects are unfinished such as building sites, highways, power generation, and so on. Thus, if the chain faced a crisis then the whole world also suffer from the slow growth. The real estate crisis will affect the economy. It will also hamper the growth of other sectors such as supply chain, infrastructure, manufacturing, electronic items, and many more. After all the chain’s economy is one of the largest economies in the world. 


 


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Here in this guide, I mentioned all about the crisis of the chain’s real estate. I hope this information will help you understand the situation of the chain’s economy. Mentioned how it will affect the world economy.     


 


 


 


  


 


 


 


   


 


 

Report published by the IEA, global electricity demand set slow in 2022 and 2023tericity

 In recent years, all around the world electricity demand was sharply increased. A recent report published by the international electricity agency said the global electricity demand is seen rising 2.2 percent in 2022 which is lower than the 3 percent that was forecasted in January. It is expected to maintain similar growth in 2023, according to 2022 reports IEA forecasting electricity demand will be down from 6 percent which is the rise in 2021 during the COVID 19 pandemic. In 2021, there are several reports published on electricity shortages all around the world. After the keen shortage of electricity, all the nationals are working on renewable energy to meet the demands of consumers. Here we will discuss the recent report on the international electricity demand of the global. What do IEA reports say about the demand for electricity in different nations that are highlighted below?

The demand of PARIS: there is a sharply slowing in the growth of global electricity demand in 2022 for 2021. There is a time of slower recovery economic growth from the soaring electricity prices, and health restrictions according to the international energy agency of 2021. 

The demand for china: according to the international energy agency, chains' demand for electricity is seen to increase by 3 percent in 2022 but the demand throughout the year remains highly uncertain. The IEA report said that it is expected to increase electricity by 4 percent in 2023; it is time to recover suppressed demand due to the lockdown the year prior. 

Demand in the Middle East: demand in the Middle East is seen sharply increased by 2 percent in both years 2022 and 2023. Africa’s demand for electricity is increased by 4 percent in 2022 which is one percent more than by 2023. 

The demand for Americas: according to a report, America’s demand for electricity is seen growth by 2 percent which is below 1 percent from 2023 at the same time demand for electricity in Europe was less than 1 percent from the expected demand of 2023. 

The demand of India: it is a notable exception slow down in India's electricity demand while high temperatures of India was 7 percent higher the normal so the forecast demand of electricity is 5 percent for 2023. This will affect the price of global electricity in 2022. 

The demand of Asia pacific: electricity demand of Asia- pacific is rising 3.4 percent in 2022 that lower than the previous report and is expected to rise 4 percent in 2023.  

According to IEA, there is a lot of uncertainty in fossil fuel prices and economic growth as well. There are ongoing sanitary measures related to COVID also affect the forecast of global electricity demand.

Increase in renewable energy of supply growth 

  • There is seen fast growth in renewable power generation which is the most important source of generating electricity supply in 2022. This help in the low use of carbon generation that is expected by 7 percent. That will help complete the demand for electricity and lead to a 1 percent drop in fossil fuel generation. 
  • According to IEA, there is the use of renewable energy increased in 2023 which is expected to up 8 percent globally. This is the combination of recovery unclear generation and could displace more gas and coal power use. 
  • This will also help in driving global emissions down half of the percentage in 2022 and expecting one percent in 2023. It helps in the recovery of 2021. 
  • The growth of the use of renewable energy varies from nation to nation. In America, renewable energy uses are expected to continue to drive growth, it is led by the United States, where total renewable energy use is seen up to 11 percent and forecasting growth will see by 6 percent in 2023. This will led to help in the largest emission declines globally.
  • India is also contributing to the use of renewable energy; it is expected to increase the use of coal by 6 percent in 2022 by adding 9 percent to generating renewable energy. 
  • However, global coal use is increased in 2022 according to Europe plans. It has the plan to turn to using more polluted resources in short term for ending the reliance on Russian natural gas, increasing the use of coal by 8 percent while declining 7 percent in gas use.  
  • Europe is the only nation that will increase emissions by 3 percent in 2022, which is expected to fall by 8 percent in 2023. 
  • Chain is not able to generate energy from the goal that is seen falling by one percent a full year. That is not seen the first time; it is continually declining since 2015.
  • There are benefits of the use of renewable sources of energy. It will affect the price of fuel at the global level and growth of economic as well according to report.

Emission in the Asian Pacific region is set to fall in 2022 but it can rise by I percent in 2023 as increment demand growth exceeds additional renewable energy generation.  

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This guide mentioned all about the global demand for electricity in 2022 and 2023 which is forecast by the international energy agency. Trying to comprised all the mentioned information in the report which will help you to understand the fluctuation in energy demand 

in the year 2022 all around the world.      

     

 

 

 

   

 

The European nations are suffering from the gas shortages

 As all know that the European nation is one of the biggest consumers of gas in the world because they required gas for maintaining regular life. Europe is not able to produce enough gas in the domestic market so it imports gas from Russia. Russia is the largest nation that exports gas to not only Europe nations but also the world. In recent years a single nation exports natural gas of around 240 billion cubic meters across the world. Now the situation is considering the increase in demand for air conditioning during the summer, and controlling heat in winter as well but the supply of energy is decreased due to the EU sanctions on Russia. Russia is the greatest exporter of gas to Europe and regular reports measure that European nations are suffering from the huge rises in prices of energy gas. Now let us discuss in detail what the matter of energy crisis in the European nations is.  

The energy crisis in the European nation 


Recently in 2022, the European Council held a special meeting, in this meeting all the member states agreed to adopt the six packages of sanctions against Russia. It includes the complete ban on the importation of seaborne crude oil and petroleum products from Russia by the end of 2022. 


After forbidding the oil and coil products, there are several other leaders have urged a further ban on the trade of natural gas, arguing that existing sanctions are not enough to punish Russia for its reckless invasion of Ukraine. From this, the most of leaders agreed for embargoing natural gas from Russia but they do not analyze the particle consecutions due to the European high depending on it.


As mentioned above Europe is one of the large consumers of natural gas from Russia. During the invasion, Russia exports natural gas to Europe in balk in chip amount. In late June, the supply of natural gas by the Nord stream which is one of the main pipelines of gas supply from Russia to Europe has been cut by 60 percent. In this situation Russia defended the move by city technical issues, several experts believe that the real intention behind this might be to push the price of fuel. It was the warring given by Russia to Europe that sanctions are a double-edged sword. After that European prices index measures that the price of fuel and gas has increased continuously. European is facing high inflation in natural gas prices because of sanctions.


The major four facts of the energy crisis in Europe  


European is facing an energy crisis now and it could be long. Rising the prices of energy costs likely increase not only fuel bill but also increase the other prices pf much other everyday purchase, including the food items. 

Other sanctions on Russia, there are several other reasons behind the European energy crisis and show how the global market is interconnecting to the global energy market. In this guide, four key points will help to understand some of the issues of the energy crisis. 


Recovering global demand strongly 


The demand for gas fell globally by 1.9 percent in 2020 because that was the worst period of pandemic disruptions in the world. However, now the energy demand increased because of the mild winter in the northern hemisphere. 

Recently the report of the global gas security review, the international energy agency share its view that gas demand is likely to rebound by 3.6 across the world in 2021. If all things are not changed then it is predication that in 2024 gas consummation would be increased and growth in demand is approx 7 percent higher than pre pandemic level. This is one of the main reasons for raising the fuel price all around the world. 


Europe is depending on gas imports 


Relying on gas imports is one of the biggest issues facing the energy crisis in the European nation. Production of gas is declined in Europe. The several North Sea of gas is becoming dry. There is almost no gas production in the domestic nation of Europe. These are the reason for increasing the dependency on gas imports primarily relying on Russia and Norway. If Europe wants to alleviate this crisis then it will need to shift gas to coal uses. 


Continues increase in prices


In a recent survey, reports say that there has been a 600 percent increase in European gas prices so far in 2021. In early October there was a 37 percent hike in wholesale prices of gas in 24 hours in the UK. The prices of wholesales also collapse in the UK. There is a lot of inflation in gas prices faced by India also. So nations need to work on renewable gas for further reduction in reliance on fossil fuels from other nations. 


Winter is coming 


In the northern hemisphere, it started in 2021. It punctuated a series of very cold extreme weather events. When the swathes of the US were affected by the polar vortex then it brought snow, ice, and freezing temperatures to south areas. Another very cold northern winter would put additional pressure on the gas system that is already struggling in not only in European nations but also all around the world. Completing the increased demand for gas during cold weather would be a task with low gas stocks available.     

 

 

 

 

 

 

 

 

 

   

       

Evaluation of the human resources management

 Human resources are considered as the most important assets of the business for achieving the desired goals of the business. Human capital refers to man power of business who perform all the business activities. Businesses can use effectively potential human resources for creating a climate that can persistently identify the goals for the business and complete all their efforts. If the business wants success in its goals then they need the best team of human resources. In todays era, business uses many HRD techniques for effective management. This unit provides information for understanding the concept of the human resources development system, a related different era of the mechanism, and the changing boundaries of human resources development. Many eras can classify the evaluation and development of human resources which are following.

The era of the trade union movement 

At the time of the factory system, the condition of the works is very pathetic. After the First World War, the condition of workers became worst. When economic intervention happened then they would consider the worker's situation and try to protect the interest of the workers. Under the commission of labor in India, they set up a committee that performs the Recruitment function along with the settle down all the grievances of workers. After that workers started making groups and associations that were called trade unions for improving their working conditions. The aim of trade unions was the safe grading the interest of workers, prevent exploitation, and solve their problems such as stopping exploitation the child labor, long hours of working, poor working conditions, poor working environment, and many more. These unions do strikes, boycotts, slowdown work, and sabotages for accepting their valid demands by the employers. these activities of the trade unions are providing benefits regarding grievance handling, employee benefits program, collective negotiation, and many more. 

 

The era of social responsibility 

Earlier 20th century, employers' points of view were changed towards workers. The business adopts the humanistic approach towards the workers. The business realized that if they want better results from the work then they need to provide better working conditions, give them training, and make them skillful for better results. The business has to give better working conditions like facility of showers, toilets, reducing the long working hours, and many more. Businesses need to consider workers as part of the family and treat them fairly. This approach will help to get better results from human resources and strengthen the human resources also.

The era of scientific management 

This concept was introduced by Fredrick Winslow Taylor in the USA in the early 20th century. This provides an alternative to the prevailing system of management by incentives. The main focus of this concept is classified into four parts that are following. 

  • Businesses should use scientific methods in setting work standards, setting a fair period of work, and pushing them to the best way of work.   
  • Selection of works depends on the skills of works and adds provision of training, and gets maximum efficient work. 
  • Division of work is very important for business. The clarity in work division between the employers and workers. 
  • A business needs to focus on creating a bond with their work is very important because that will secure performance of work according to their jobs and tasks.

Other than that, businesses need to attach some rewards system for effective work of works that will motivate employees with efficiency. Human capital is the most important source of maximizing the profits of business and growth. 

The era of human relation 

Human resources are the only assets that can connect with felling, emotions, attitude, attachment, and many more. Many experts express their feeling and opinion regarding human capital like creating a good bond between superiors and subordinates. Superior need to take care of the needs of their subordinates, favorable attitude towards work, consider their opinions in business, give them job security, and many more. These activities help in making relationships with their employees. 

The era of behavioral science 

Behavioral sciences refer that a happy and satisfied worker is done productive work for the organization. It believes human behavior help in achieving an efficient performance for business. There are several kinds of research are done by the experts on basis of the disciple of society, anthropology, and social psychology. Behavioral science contributes mainly in the areas of motivation, communication, leadership, organization culture, group dynamics, adoption of changes in the organization, and many more. Behavioral science also focuses on the psychological and social aspects of human behavior in an organization. 

Management of human resources era 

When a large number of employees work together for one goal then it is very important to manage effectively. Business feels that they need to appoint someone who took after the needs of workers and work for their welfare of them. With time the competition is also increased in terms of knowledge, talent, and tetchiness of management of human resources where people are not treated on basis of physiology and social psychology. The complexity of the human resources department increased and makes a separate department that works for providing the best facility to human resources. 

Bottom

In this guide, mentioned all the eras of human development evolved with time in India. This will help you to understand how human resources evolved with time and what the significance of human development evolution is.   

 

 

 

   

 

 

 

       

Management professionalisation

 Professionalization is referred to a certain way of behavior, manners, and etiquette which are performed in a particular environment. Professionalism can be defined based on the culture, integrity, dignity, and ethics of the organization. It plays a vital role in todays business era because it guides what is acceptable behavior in the organization. Professionalism guides not only how one should behave inside of business but also outside of the business as well. All the professionals train the managers and businesses on how to deal with the overseeing organizations. 

In recent times, businesses are adopting globalization and international business policies then the professional behavior became very important for dealing with different people from various countries. For handling different situation professional behavior guide what is ethically right and wrong. 

Professional behavior depends from country to country, business try different ways of behavior according to their culture so that their deal became successful.

Professionalism is the combination of formal and informal communication and etiquette is the main component of the communication. Etiquette communication gives a good impression that will help in the growth of the business.  

How professionalism is a part of management function? 

Professionalism is a very important part of the management functions that are followed. Professionalism defines what ethical behavior must be followed in the organization.

  • Professionalism encourages in the organization by using the appropriate channel of communication in the organization. There is no professional communication that can be the cause of loss. People communicate what is the defect in their behavior they can rectify. Verbal communication is a very important tool for making strong and effective over the prospective of interpersonal relationships among the employees and also strengthens the stakeholders. 
  • Professionalism also strengthens cultural communication for exchanging meaningful information in the business. Cultural communication also includes shared beliefs, value, and ideas, this help in mutual, respect, and harmony, and empowers behavior at all level in the organization. 
  • Professional behavior is also important for maintaining long-term profits and growth. 
  • It also guides and encourages employees for taking professional training. This will help in the better management of the business. 
  • It is very important for the domestic country along with the international country. Every country has its cultural heritage and tradition which is followed by all businesses.
  • Professional guide how business can make effective teams and cooperate  with them for achieving the desired goals of the business. Working with teams is also depending on professional behavior.  
  • Professional behavior is also a source of motivation for employees for implementing the work on time. Employees can be influenced by professional behavior that will help in improving their morale and confidence at all levels of the professional.
  • Professional behavior is a kind of strategy to make unique and difference from other player in the market.
  • Professionalism is a kind of disciple for the organization for creating a better path for the growth of opportunities and future prospective also.

Importance of professionalism in the business 

As all know professional behavior in the workplace is very important. It is necessary for the long-term success of a business no matter either is big cooperation or a small business. Professional work provides confidence in employees' behavior and also improves performance. There are several benefits of professional behavior in business that are listed below. 

Establishing appropriate environment 

Professional behavior at the workplace establishes boundaries between what considerable appropriate office behavior is and what is not. Most employees and manger strengthen the enjoyable or energetic environment, but limits are also put in place that will help in avoiding conflicts.

Strengthening personal improvement 

A business palace provides employees to behave professionally and operate professionally for getting more success. Professional behavior pushes employees to work timely and follow all rules and regulations of business which will make them more professional towards their work. The disciple behavior always develops self-improvement.

Maintaining accountability 

Companies that directly deal with the client are obligated to provide the best possible service and give the best presentation of their company. Professional behavior shows the best presentation in written form of all the documents, reports, business plans, and other services. The impression of a business is very important for attracting more clients for the business growth. 

Making a respectable image 

Professional behavior creates a good image in the market. Maintaining professional behavior prevents all the gossip and inappropriate personal conversation in the market. Keeping the professional behavior towards clients who will impress with the behavior of the company can be the reason the making a good image in the market. 

Minimizes conflicts 

Professional behavior prevents conflicts in the workplace. In any business employees and authorities need to respect each other boundaries. If the conflict arises then it can be resolved effectively in a professional way. Professional behavior in business helps to manage diverse people in one place effectively. It will also help in accepting the diverse opinions of clients and perspectives. Professional behavior helps avoid offending opinions and members as well.

 

Conclusion      

Professional behavior is very important not only for people of one country but also to acknowledge the behavior of other nations. It is very helpful for taking advantage of the competitors in long run. Professionalism is very important for the growth and profitability of the organization. It further helps in creating a new path for maximizing the wealth of the organization. I hope all this mentioned information helps adopt professionalism in the organization.    

 

Organizational structure and different types of organization structure

 Organization structure is defined as a system of ranking order according to relative status or authority in the business. It helps to identify jobs and functions and where employees need to report within the organization. Business needs to adopt this kind of structure for effective operation and also assists business in obtaining their goals for future growth. Business follows a certain type of chat for an effective operation that will help in the best work and management process. There are several types of organizational structure adopted by the business that is discussed in this guide. 

Different types of organizational structure 

Organizational structures are mainly classified into seven types. However, adopting the particular structure varies from business to business. Lets go through all the seven types of structures of organization for a better understanding and analysis of why you might consider each of them important.

Hierarchical organizational structure 

Hierarchical organizational structure was earlier defined as the pyramid shape of an organization. It is the most common type of organizational structure that follows the ranking order from top to the bottom such as starting with the manager or CEO of the business to the low level of employees, and each employee needs to report to their superior. There are a lot of pros and cons of the hierarchical organizational structure. 

Pros 

  • This structure allows a better definition of authority and responsibility. 
  • This structure clears each person reports to who to talk to about specific projects. 
  • Superior needs to motivate employees to best work, clear the career path, and work hard for promotion. 
  • Create a good bond among employees in the department. 
  • Give work according to the ability of employees. 

Cons

  • This is a very traditional structure of the organization that can slow down innovation. 
  • Employees are bound to act in the interest of the department, not for the company or business. 
  • The ranking system of authority can make the low-level employees feel like they have a low level of authority and have not expressed their ideas or opinion in the company.

The organizational structure of functional

Functional structure is very similar to the hierarchical structure. Functional structure refers to a structure that starts with the position of the highest levels of duties distribute to the top and go down to the low level of duties. This structure follows for giving certain positions and functions in the company according to the skills and qualifications. The specialty of this structure is each department has the right to work and manage independently. There are several advantages and disadvantages of this structure that are highlighted below. 

Advantages 

  • The functional structure allows employees to focus on their self-growth as well as their role. 
  • This structure is focused on specialization. 
  • It can help scale the size of the business. 

Disadvantages 

  • This structure does not apply to all types of business. Sometimes it will obscure the process and strategies of the market and product of the company. 

Horizontal organizational structure 

Horizontal structure refers to structure; there are few levels between the upper management and low-level staff or employees. Several businesses use this structure for low-level management until they grow enough for different departments structure. However, several businesses follow this structure for maintaining innovation in the business. There are many pros and cons of the horizontal organizational structure that are listed below. 

Pros 

  • This structure allows employees to be more responsible and makes them more efficient. 
  • Horizontal structure promotes more open communication in business. 
  • It improves coordination and speed of achieving the goals of the business. 

Cons

  • This structure can create confusion among employees because there is a lack of clarity for reporting to superiority. 
  • It is very difficult to maintain this structure once the company or business growth beyond start-up status. 

Divisional structure 

Division structure refers to structure; the company delegates its responsibility and control within the organization. In division, methods can adopt by the large business for effective use of resources. The company makes different departments within the organization and all departments have their marketing, sales team, it teams, and many more required teams. It works effectively for large businesses as it empowers businesses to quick decisions by reporting a few executives. There are several pros and cons of divisions that are following. 

Advantages   

  • Division structure is very useful for large companies for maintaining flexibility.
  • It allows for quick decisions for taking advantage of the opportunity for the growth of the business. 
  • This structure is very important for promoting independence, autonomy, and a customization approach. 

Disadvantages 

  • This structure became very expensive for small businesses along with large businesses. 
  • Divisional structure leads to a lack of communication between the headquarter and divisional departmental.

Matrix structure 

Matrix structure refers to cross-functional teams that adopt for special projects. In this structure, employees follow a dual reporting system. Generally, employees report to their functional department along with the project manager. There are many upper hand and limitations of the matrix structure. 

Upper hand

  • This structure allows superiors to choose employees according to the requirement of the project. 
  • It gives a broad perspective to the organization. 
  • Gives employees them to opportunity use their capability in various ways rather than their original roles. 

Limits

  • There is a lot of confusion and conflicts created between the department manager and project manager. 
  • Employees are struggling between their original roles and other work also. 
  • This structure takes time decision-making process because managers need to report to the dual department.