Understanding the Economic Motives of the Classification Principle
Economic Motives - Definition, Action, Origin, Principle, Classification, Kinds, Example: Every activity carried out by humans must be motivated by the desire to obtain the things we want. in this case it can also be called an economic motive.
Understanding Economic Motives
Economic motives are every reason, encouragement, and activity carried out by a person or entity to carry out an economic action. The word Motive comes from the word motive (English), that is reason or mobilizer. Every reason will encourage people to do an activity, act or action. Every activity, action or action of a person is driven by a desire / motive to achieve certain goals.
Economic Action
Economic Actions are all human endeavors to meet unlimited needs with good consideration based on priorities to achieve prosperity.
Needs are human desires that demand to be fulfilled such as eating, drinking, clothing, housing, education, and so on.
Humans who try or work to earn income, meaning he has done economic action, because humans can use it to meet their daily needs.
Humans try to fulfill their needs starting from the most basic needs (food, clothing and shelter needs) to higher needs (security needs, respect, self-esteem, and self-actualization).
Origin of Economic Motives
Intrinsic motives
Intrinsic motive is the desire to obtain the desired goods or services with one's own awareness. An example of an intrinsic motive is someone who wants to be smart so he must study on his own seriously.
Motif ekstrinsik
Motif ekstrinsik adalah keinginan seseorang untuk memperoleh ba-rang atau jasa yang diinginkan, tidak dengan kemampuan sendiri me-lainkan dengan dorongan dari orang lain. Contohnya ialah seseorang yang ingin memiliki rumah pribadi seperti teman-temannya, maka ia harus bekerja keras untuk memperoleh pendapatan.
Economic Principles
Economic principles are efforts or considerations that are accompanied by the least sacrifice to achieve certain results or with certain sacrifices to achieve the maximum results.
The benefits of economic principles are to obtain maximum results at a certain level (maximum profit) and minimize losses suffered at a certain level (minimum sacrifice).
Classification of Economic Principles
The principle of consumer economics
The principle of producer economics
The principle of distributor economy
Various economic motives
As for the various types of economic motives, including the following:
1. Motives in meeting needs
The motive for meeting needs is a human action that is driven by a desire to fulfill a need. To maintain continuity in life, everyone has a need, both in the form of goods and services that must be met. Usually in a need is unlimited in nature, while the satisfiers are limited.
Therefore, everyone must have a careful and mature calculation in order to get the results that are in line with their expectations. Human tendency that is always to achieve a prosperity for his life. This prosperity can be interpreted as a condition where humans can to fulfill most of their lives.
For example: someone will work hard to get money that money can later be used to meet their daily needs.
2. Motives for making a profit
The motive for making profit is everything that drives people to take an economic action to make a profit. Someone to meet a necessity of life that is motivated by a motive or hope to get a profit / profit.
This motive is an impetus that arises with the aim of getting additional benefits, both in the form of money and goods. By getting a profit it is expected that a person's wealth can increase and he can maintain his survival better.
For example: a clothing merchant sells clothes with very good quality and relatively cheap prices and by serving them very friendly. Many people buy so he gets a lot of profit.
3. Motives for gaining economic power
The motive to get economic power is a desire of people who are already prosperous, but still to carry out an economic action due to the urge to get a power in various business activities in an economy.
For example: In a village that is happening in the election of a new lurah. Pak Ari, one of the lurah candidates, capitalizes on repairing damaged roads in his village, and organizes free medical treatment to the people in his village with the hope that in the village head election, he will get a voice of support from the surrounding community.
4. Motive to get an award
The motive for getting an award is a human action that is encouraged to get an award. Appreciation from others will provide a sense of satisfaction for an actor in economic activity. The award in question is not just to get a compliment or a charter but also wants to be in a higher social status than the surrounding community.
For example: there is a manager or entrepreneur still doing an economic activity with hard work even though he has achieved profits and prosperity. This was done so that he appeared as a reliable and respected manager. This achievement is not uncommon to produce an award from the government and from the business community. For example the manager is classified into the Top Manager version of an economic magazine and the company he manages receives an award from the government.
5. Social motives
Social motives are things that encourage people to take an economic action because they want to help others. Humans are economic creatures who are both social creatures. In addition to paying attention to a self-interest, humans must also care for each other. Social motives namely the encouragement that with an economic action that is done can provide a benefit or advantage for others.
Business Characteristics
In the world of economy, business has the following characteristics:
Social and economic institutions or institutions or organizations
Associated with a variety of goods and services that meet human needs.
Looking for profit, profit or profit.
Determine the appropriate price
There will be a possibility of loss
There are three important things in business, namely: producing goods and services, looking for profit, and maximizing consumer needs.
Types of Activities of a Business
Business activities as an organization, can consist of:
Production: creation of goods and services.
Finance: activities to find the funds needed to carry out trade activities.
Marketing: Activities to inform goods and services, identify consumer desires.
Human resource management: activities to find workers and improve their abilities.
The Purpose Of A Business
The business goal, according to Sternberg, is to multiply the values of company owners through the sale of goods or services. The intended value here is of course economic value or profit, simply the purpose of a business activity is to multiply the profits for the owner of the company or business by selling goods and services. The assertion that multiplying profits is the only objective of business is identical by saying that it is essential that business cannot be separated from capitalism.