Now, imagine you are the CEO of a U.S.-based organization. How will the U.S. gov

Question

Now, imagine you are the CEO of a U.S.-based organization. How will the U.S. government’s decision of replacing GDP with GNH affect your organizational strategies?

Consider the following questions for your analysis:

How will your budget allocation for different functional departments, such as finance, marketing,

human resource, training and development, operations, and IT change?

How will your focus on employee engagement change?

How will your payment policies change?

How will your accounting policies change?

Explanation / Answer

This is a debatable topic since GNH and GDP are two sides of the same coin and yet they are very unrelated in their approach to holistic development and measuring well being. While GDP measures development through economic means (how much the couuntry is producing and earning in return), the GNH has much to do with philosophical means of achieving human development like happiness and satisfaction (since GNH was coined by the Bhutanese king based on Buddhist values).

How GNH will apply to all organizational facets is another topic of its own. Economic means and happiness are pretty much the same concept when applied to developmental concepts. Higher income leads to higher levels of development and happiness. So in one sense GDP and GNH both have their own importance since a reputed CEO cannot afford to ignore any one of these measures. If the CEO decides to monetarily expand his/her company, that should go side by side with overall happiness and higher levels of satisfaction among the employee base and customers.

So, keeping in view this strategy of replacing GDP with GNH, most CEOs will continue on with their budget allocation and accounting policies as they did before since, as already mentioned before, economic well being and happiness are parallel concepts. If one company is doing well, its customers and employees including the CEO will be happy and vice versa (economics has theories on satisfaction and well being; its based upon utlity and satisfaction)

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