Archives for the Month of November 2006 on Alan Valenti: Budding Auto Exec
Simple Problems Often Require Complex Solutions
Weighing the costs and benefits of every decision made, whether it is a business, economic, or social decision is extremely important. In my human resources simulation group, we have discovered that simple solutions are often deceiving. The expected results of our solutions did not always correlate with the goals that we expected them to achieve. This is because increasing wages or adding benefits are not the only factors that determine success. There are many other factors such as competition within the industry, worker morale, and productivity rates that must be correctly interpreted. In my management accounting class, we have begun discussing decisions that managers must make when presented with data about profit in specific product lines. The most obvious solution is not always the best since there are many factors to take into account. Therefore, the goal of any manager is to carefully analyze every decision being made rather than hastily make decisions.