18 cases showing how inefficient the existence of "enterprise"

BySebastiaan ter Burg

Economists think that "companies are very efficient in terms of economy", and even in economic reference books and mathematical models, even the premise that "companies are efficient" Every talk tends to be promoted with, and, economistRobin HansonSays. However, in reality, companies are like inefficient lumps, and various inefficient cases Hanson has been looking at are introduced in the past.

Overcoming Bias: Firm Inefficiency
http://www.overcomingbias.com/2014/07/firm-inefficiency.html


◆ 01: Corporate crisis situation increases productivity
When companies face market competition, productivity often rises explosively. But if productivity can be expected to improve, why can not we do the same thing before we face a crisis situation?

◆ 02: Surplus person who always exists
Companies have fewer employees than other employees. These talented people are first dismissed when the company's performance gets worse or when it is acquired but never dismissed when the performance is good.

◆ 03: "Because it was not invented here ..."
The company prefers to make changes to what was created inside the company, but I do not like to modify what other companies developed and became famous for.

◆ 04: Environment difficult to report
One thing to be done in many companies is "to prevent bad news from being known to the boss". This seems to be handled as if the person reporting bad news to the boss, as the person who reported is sometimes treated as a person who caused the problem, which is a bad feature that slows the information transmission in the enterprise I will.

ByValeriy osipov

◆ 05: Yesman
A boss who does not put out his own opinion as a story can listen to his opinions and compare it with his own opinion. However, most bosses tend to impose their opinion on their subordinates and punish if there are subordinates who oppose their opinions. As a result, some enterprises are overwhelmed by Jesus' man, meaningless communication increases.

◆ 06: M & A(Mergers and acquisitions of companies)
When a company acquires or merges another company, a lot of money is wasted, and Hanson cites this as inefficient.

◆ 07: The existence of rules that only become poison
Rules that prevent companies' acquisitions such as "imposing economic penalties" or "making investors not be able to acquire stocks" are totally inefficient.

◆ 08: High salary CEO
In many cases it is paying to the CEO a salary that is disproportionate to the amount the company actually earns,This is obviously an inefficient actAnd Hanson.

◆ 09: Excessive meeting
Unnecessary meetings are repeatedly performed in many companies, Hanson's argument. Hanson says that the conference being held in many companies is that there are too many participants, the meeting time is too long, and the frequency of opening is too high.

ByMaryland GovPics

◆ 10: Excessive interviews
Knowing the performance on the actual job of an employee through an interview is thatDifficult thingsis. However, interviews are held again and again, and we will cut down the working hours of our employees.

◆ 11: biased evaluation
The manager always gave a high evaluation to the employee himself / herself who hired himself and the person himself / herself who did not hire himself consistently.

◆ 12: Excessive authority
What you would like to see often in your opponent who evaluates your work. Since employees feel a lot of pressure in front of such people, "excessive authority of boss" tends to get in the way to make employees work more efficiently.

◆ 13: Slight test
Product tests highlight what companies do not understand yet, but the tests are also often reluctant to do.

ByNASA Goddard Space Flight Center

◆ 14: Few Achievements
There are many people in the enterprise that make predictions from the results so far. However, most of the companies have not got a respectable achievement that can make accurate evaluation.

◆ 15: pride boast
Those who do not boast about their achievements themselves are not consistently looked at by companies, even if the superior abilities of employees have been appraised from surroundings.

◆ 16: Information does not reach every corner
The existence of a group or departmental division within a company makes it possible to keep secret information of various information without being informed to other segments. However, if various segments within the company cooperate towards the same direction, it will be possible to grab the greater success, Hanson said.

◆ 17: a novelty consultant
For some advice, companies often hire management consultants. However, advising obtained from management consultants is just a casual thing, and it is all that employees can derive.

◆ 18: Telecommuting at home
Teleworking can be a huge cost cut, but it is not adopted much.

ByJeremy Hiebert