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Businesses exist to make money, not just to give people in power a place to harumph about. More productivity IS important, because without that, businesses are
by viewer5 12y ago
Businesses exist to make money, not just to give people in power a place to harumph about. More productivity IS important, because without that, businesses are losing out on potential income, and that's not what businesses like to do.
- programminggeek 12y agoYou'd be surprised how much ego can factor into decisions that are about "making more money" or "making the business more productive". Things like saving face, not wanting to look stupid, or wanting to look cool to impress friends is a huge part of business.
- GFischer 12y agoHowever, there are huge agency problems between the stated goals of a business (mainly, to make money for its shareholders), and the CEOs interests - where ego, power, and making money for himself might be more important than long-term decisions involving productivity. http://en.wikipedia.org/wiki/Theory_of_the_firm http://en.wikipedia.org/wiki/Theory_of_the_firm Apparently most relocations are closer to the CEOs home, for example: https://news.ycombinator.com/item?id=8604202 https://news.ycombinator.com/item?id=8604202 New buildings are also monuments to the CEO (or President, or whatever authority builds it).
- Florin_Andrei 12y ago> Businesses exist to make money That's the perspective of the owner at the very top. > just to give people in power a place to harumph about That's the perspective of the management crowd.