Negative Impact 🚫 of Politics and Economics in the Business Sectors of Venezuela 💲

in #politics5 years ago (edited)

What happens in Venezuela?

The purpose of this essay is to analyze the impact that Venezuelan politics and economy has generated on the productivity of the different business sectors. Thus, understanding the Venezuelan political and economic system has become a difficult task for analysts who have tried to study this case. For some, it considers that Venezuela has a difficult system to classify, and identifies itself as a sui-generis model, which translates into Latin meaning "of its kind" (Karl, 1997).

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Venezuela is currently going through a long process of political, economic and social decline, which still does not show the signs of improvement. The old economic model based on oil revenues, of a rentier Venezuela, has been due to the misapplication of the public policies of the National Executive. And this has had a direct impact on the productivity of the different business sectors in the country. Understanding, by productivity as the measure that has been well combined and used resources to meet specific desirable results, that is, productivity is equal to the results achieved among the resources used (Bain, 1985).

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On the other hand, Venezuelan industries have a great challenge in this situation, because it is difficult to maintain their profitability and sustainability over time, due to all the factors that participate in their against, thus causing a negative impact on their productivity. Thus, there are determining factors of this, such as: the quality and disposition of the raw material, the implementation of new technologies, the automation of processes, the availability of machinery, tools and equipment, the capacity of production of the plant, the level of education of the staff, as well as the motivation and management of the managers and administrators of the organization. The way these factors interrelate within the business sectors has an important effect on the productivity resulting from them.

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However, the success of Venezuelans abroad leaves human capital in organizations, being these the most important resource of them. Therefore, there are problems such as: personnel perform functions and activities that are not responsibility for their burden and under the same economic benefits, which do not cover their basic needs. And as you have these people, they have lower performance within organizations and therefore do not meet the goals and objectives of a fullness. On the other hand, companies currently decide to replace their raw materials, other national ones that fulfill the same function, first because they do not have the money to import and secondly to reduce their production costs.

So, from a national perspective, the increase in productivity is one of the strategies to increase national wealth. A more appropriate use of resources results in a decrease in waste levels and helps to conserve limited resources or more costs. Therefore, without an increase in productivity that balances them, all wage increases, other costs and prices will only mean higher inflation. A constant increase in productivity is the only way any country can solve such oppressive problems as inflation, unemployment, a deficit trade balance and unstable monetary parity (Bain, 1985).

Finally, within this scenario, where adversity tends to be the normal working conditions, the best response to the Venezuelan economic and political situation is to work on quality care, maintain or improve productivity and reduce costs. Thus, productivity and quality are the weapons that an organization has, in order not to increase prices to minimize the negative impact of the constant increase in operating costs.

Bibliographic references

  • BAIN, David (1985). Productivity. The solution to the problems of the company. Mexico: Mc Graw-Hill de México, S.A.

  • Rincón de Parra, Haydeé, Quality, Productivity and Costs: Analysis of Relations between these Three Concepts. Actualidad Contable Faces [online] 2001, 4 (January-June): [Date of consultation: May 18, 2019] Available at: http://2011.redalyc.org/articulo.oa?id=25700405 ISSN 1316-8533

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