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First off, I'm can't speak to Google's "maximizing profit" or what is wrong with Google doing it. I don't know anything about Google outside of what I read on t
by bdavisx 13y ago
First off, I'm can't speak to Google's "maximizing profit" or what is wrong with Google doing it. I don't know anything about Google outside of what I read on the internet.
I can speak firsthand to seeing what happens when a company tries to maximize profit -- actually two companies.
One was a life insurance company with about 1,300 employees; another a tech company with around 500. The life insurance company was bought out by a large conglomerate and then a "management consulting / efficiency" company was brought in to "help". What really happened was the consulting company decided who was going to get laid off and who wasn't. While there was some dead weight in the company, many of the people laid off were not the dead weight - not sure how they really decided, but the outcome was not good from a personnel standpoint - it might have been from a profit standpoint initially. After that, morale was destroyed as well as the management culture becoming poisonous. Example: IT director charging departments for new computers and then keeping them for his area and giving the other departments his old ones. Basically it became a dog-eat-dog company that was eventually purchased by AIG - and most of us can remember what happened to that company.
The other company was a software and consulting company that was run by one of the founders until he decided to step back from the day to day operations (after he made a boatload of money) and have his accountant friend run the company. Prior to this, the company was one of the best to work for in the area. Its consultants were considered top-notch and the benefits were incredible. Since the accountant took over, morale is horrible and benefits are way down. I could go into detail, but you can find examples of bad cost cutting and morale busting decisions all over the internet - it seemed like this company did a lot of them.
The point is, maximizing profit often comes at the expense of the people who work for the company; and isn't good in the long run for the people or the company.
- jdreaver 13y agoI wouldn't call that an example of maximizing profit. I would call it a great example of poor management, and a lack of forward thinking. Now, those terrible managers might have thought that they were maximizing profits, but like you said, they eventually failed.
- adventured 13y agoYou're talking about short-term, temporary gains. There are two types of maximizing of profit: long term, and short term. The strategies required to execute them are polar opposites. If the insurance company laid off productive workers that significantly contributed to their ability to earn a profit, then what you describe is the opposite of maximizing profit for the long haul. What it sounds like, is the insurance company got swallowed up by a vampire looking to suck the life out of it for a short term gain.