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> It boggles my mind, given the big money involved, why so many people continue to bet huge sums of cash on the proven short-term penny-wise/pound-foolish idiocy of MBA-think.

A lot of this "idiocy" is in fact rational (if unethical) behavior. At many large companies, upper management is rewarded for short-term gains. In response, these managers adopt strategies that produce short-term gains. If these gains can be boosted by risking the company's future, that too is a rational trade-off: The managers will be long gone when the company falls into decline, but in the meantime they will have collected a lot of pumped-up bonuses.

When people are paid today to burn tomorrow, why are we surprised that they reach for the matches?




> A lot of this "idiocy" is in fact rational behavior. At many large companies, upper management is rewarded for short-term gains.

The fact that microoptimizations that are harmful to the company in a broader perspective are rational on the part of individual mid-level managers working within the incentive framework provided by upper management, doesn't mean they aren't idiocy on the part of the upper management responsible for creating the incentive framework.

In fact, that means they are idiocy on the part of upper management.

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I guess that conclusion would depend on whether the upper managers expected to better off (a) by staying at the same company for life or (b) by pumping the short-term returns and then using them as a shortcut to a better position at some other company, where the long-term consequences won't be felt.

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Well, from what I have seen about the business people, their preferred method is b. Since by going to some other company, they can get higher salary, usually higher than the raise they'd be getting.

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