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Article: The economic impact of managerial decisions and policies.
- Article from:
- Industrial Management
- Article date:
- September 1, 1991
- Author:
CopyrightCOPYRIGHT 1991 Institute of Industrial Engineers, Inc. (IIE). This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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The Economic Impact Of Managerial Decisions And Policies
All the decisions in an organization have some economic impact either on expenses or on revenues. In general it is not easy to attach a numerical value to each decision because of the lack of a defined algorithm for doing the calculation. In this situation managerial decisions are made on an intuitive basis since there is nothin better. Although some managers support their decisions with arguments phrased in economic terms such as, "this action will save money," such arguments are not supported rigorously. Moreover, they may be in error even if calculated properly; however, they are good arguments for helping ...