The Pareto principle means that 80% of effects are the result of 20% of causes. More than a century ago, Italian economist Vilfredo Pareto researched land ownership in Italy and came to conclusion that 20% of population owned 80% of land. However, now the Pareto principle is used in many other spheres of life including management and controlling. Some risks will lead to more negative consequences if they are not controlled. Managers often have to act like control freaks in order to minimize the number of risks and their possible consequences. For example, they may apply ABC-analysis for ranging inventory by the level of control and accuracy of records. Some managers have to micromanage in order to control the work of employees. Micromanagement is too focused on details and probably it is not the best approach for limiting the number of risks, because it leads to inability to focus on the bigger issues. The Pareto Principle does not work, because managers focus on 100% of tasks and do not trust their subordinates to whom they could delegate some of the tasks. In the meantime, there are some managers that are reluctant to take actions that are important for correcting deviations, because they do not see any incentives. They might also refuse to acknowledge deviations and instead justify their actions, if they do not want to show that they are incompetent or wrong in some issues.
Personally, I disagree with the statement “If something isn’t broken, it shouldn’t be fixed”. People, companies and other private or public organizations have to be ready for tackling different kinds of problems. For example, airline companies must be excellent in crisis management although the risk of aircraft crash is very low. Companies in other industries also should have a plan how to behave if a market situation dramatically changes. For example, companies in the financial sector should always be alert. However, some managers are obsessive with controlling and as it was written above such attitude contributes neither to effectiveness of company’s performance nor to employees’ satisfaction.
Good Creative Writing On Controlling
Type of paper: Creative Writing
Topic: Management, Managers, Control, Company, Time Management, Pareto, Risk, Risks
Pages: 2
Words: 350
Published: 03/30/2023
Cite this page
- APA
- MLA
- Harvard
- Vancouver
- Chicago
- ASA
- IEEE
- AMA