How can policies affect organizational profitability? What could be the policy dimensions that, in the end, actually deviates the organizational wealth? This could be a huge topic to discuss further on.

Let’s start with macro level policies. First of all, macro policies like monetary and fiscal policies are the core drivers of every economy and eventually affect the organizational wealth and value of both the public and private corporations. For instance, expansionary monetary policy increases the money supply in the economy and consequently the level of investment increases, spiking the chances of higher organizational profitability. Decrease in level of Cash Reserve Ratio (CRR), implementation of Open Market Operations (OMO), reduction in Bank Rate (BR) are some of the most popular macro level monetary tools affecting the overall operations and eventually bottom lines of the organizations. After all, all these tools and techniques, as the components of macro level policies, are the most responsible factors affecting organizational profitability. The same is the case with the fiscal policy and its measures.

Now moving on the micro level policies, how could we not talk about organizational policies, guidelines and other parameters, constituting micro level policies for organizations and setting organizational boundary. Every organization, public or private, has their corporate goals and to reinforce their organizational goals, all these organizational always come up with their organizational policies. Be the policy profit oriented, societal oriented, human oriented or any other aspirations, all these policies significantly affects the organizational bottom line, consequently fluctuating organizational overall wealth and generating significant effects on their stakeholders.

Thus, no matter whatever is the internal or external operating or business environment, the macro and micro level policies are the core drivers of organizational bottom line.

Evident to all, though micro level policies can be controlled with organizational efforts, as macro level policies are the results of the national economic stances, these policies have huge weights on the organizational dimensions. Thus, every managers or directors of both the public and private corporations ought to update themselves with the existing and potential macro level policies to cope up with the potential market dynamics and compose micro level policies compatible with the external forces.