Author View on the It Is not in Mans Nature to Maximize Statement - Essay Example

Business Management The ment - "It is not in man's nature to maximize" means that man does not have an inclination to reach to the utmost. In the context of business management, this statement indicates that man does not possess the enthusiasm, drive or urge to reach to the highest possible number or quantity in terms of profits and revenues. I do not agree with this statement because if in business there was no vision of profit maximization or revenue maximization then would the status of business industry have been same It is understood even by a novice that whatever actions and decisions are taken in a firm are all related to the ultimate goal of profit maximization. In contrast to the statement under discussion, I feel that man has a very strong urge to maximize. If it was not so then the world we are living in today, would had been a much different and under developed place to be in. The crux of all this can be derived from the fact that growth of business, multiplicity of business - man starts with one and keeps on maximizing the product numbers and range to grow higher and higher etc. is not possible without the man's inherent nature to maximize. The industry is replete with examples of businesses being started as local businesses and then becoming national and finally global. Man is always looking for avenues of expansion. We keep expanding and maximizing. Our society or the consumer at large has always wanted to maximize its satisfaction. The role of business is to create avenues and give options so that this desire can be fulfilled in the best possible way. By doing so the goal of maximizing profits by the production and sale of products and services that in turn maximizes the satisfaction of the society at large gets fulfilled too. Without maximization the implications on the business would have been such that there would have been a dramatically poor growth of the world and its economy. The thought of the world we are living in now would have meant a very bizarre scenario without any sign of reality. It would have been treated as a dream, which would never ever become true. The vast and rapid changes that have overwhelmed us over the years are the fruit of the nature of maximization inherent in man. Because of the nature of maximization in man, we are confident that the entire global economy and business scenario is destined to see escalating growth in future. Due to the man's nature of maximizing the business that is being done all over is real and not a mere vision. Today the issue of diversification is a hot subject in the business circuit. What is diversification Through it the different businesses try to expand their business. What is expansion It is - the will to maximize. Then can a statement like "It is not in man's nature to maximize" be true No matter what the product is, diversification has always been in the agenda. For example those who are selling chocolates are diversifying in the field of biscuits and other related or unrelated products. Those who are selling magazines wish to launch targeted new editions. They try to offer demographic selectivity to the customers. Apart from their regular issues they try to take out demographic editions like - editions for the affluent readers, for health conscious people, for those who love traveling, for 60 plus people etc. These are just the examples of two products opting for maximization of their products and naturally their profits. There are thousands of products in the market. Every business is adopting some or the other agenda of expansion. Hence using the path of maximization everyone is trying to maximize the positive implications of their businesses. Apart from diversification, innovation is also becoming a buzzword. According to Hegde and Krishna (1993. p. 40) "Yet another example of maximizing opportunity to "innovate and excel" has been that of two men who indeed strove to "electrify" our world of today - the German, Werner Von Siemens who created the electric generator and the American, Thomas A Edison who invented the electric bulb. They were quick to perceive the technological opportunities opened up by the world of electricity and became one of the world's earliest "innovators"." Thus there is no doubt that man always knew how to maximize the available resources and there is ample proof that he has always excelled by doing so. In business different marketing tools like repositioning a product or promoting a product in a better way might not increase the profits but certainly improve the revenue status. These are all examples of the man's nature to maximize. One example, which can be best related to the automobile industry is remodeling or upgradation of a product and projecting it as a new product to the existing customers. This is again a technique that has its roots in the man's desire to maximize at all conditions. The strategic choices like market penetration, diversification, product development, market development etc. that are used to develop the existing businesses are all implications of man's ability to maximize. Time is the most important asset of business. If business managers and executives manage time efficiently and skillfully then no one can stop them in attaining their objectives. Stress is being laid on to maximize this business asset too. The more the business managers maximize their efforts, the more nearer they will come to their collective goal. Not only time management should be maximized but there should also be maximization of collaboration. The successful firms have all treaded this path to reach where they are and have set an example for others to emulate them. Hence optimum way of working, collaboration of each and everyone's skill and knowledge in the team has always paid well. Exploitation to the fullest is the mantra for success. Growth of the business industry is all based on the amalgamation of these ideas and practices. Human relationships are considered very important by all human beings. Its importance is being stressed in business firms too. If this approach is being brought to the businesses then there is naturally some reason behind it. What has proven to work wonders over the years will do wonders in the business context as well. Hence there is no doubt that the maximizing theory is used for the betterment of the business. The implications of man's nature to maximize are immensely profitable to the business. There are many examples all around us that indicate that there has been profit maximization not only by using complex techniques but also by using simple guidelines of our day-to-day positive living. This era of functional diversification and geographical expansion strongly point towards the advantages of man's nature to maximize in all spheres. It should be highlighted here that it's not only due to the instances of man's nature to maximize that we are experiencing such flourishing times of business. Instead we have coupled the man's natural instincts to the modern technology to usher in the change. But we should not forget that all the advanced man made technology that we are using are nothing but an extension to the idea that man likes to maximize and this is why he has made progress in so many fields. One activity complements the other and enhances the output of all activities. Certain strategies in management have been adopted from the man's nature and no doubt these business strategies are delivering wonderful results. Importance is being laid on effective communication at all levels to ensure success. Executives at the top management to the staff at the lowest level are being trained to understand that speaking and listening are both essential tools to remove communication gap. By removing communication gap the aim is to achieve success. If man aims to achieve success by maximizing the communication skills then how can it be concluded that man does not possess the nature to maximize. Where there is maximization the business is sure to flourish. This is the reason why all business schools are dedicating an important part of their curriculum to inculcate good communication skills in our future market leaders. More and more firms are introducing ways of relaxation for their over stressed employees. Facilities like gym, music, meditation etc. are being introduced in firms. What is the idea behind this To maximize the stress free environment in the work place. Why is the management doing all this To maximize the working capability, working conditions, mental balance, and concentration levels of its employees. By maximizing all this management wants to achieve a better work force. The better workforce will help in increase of productivity. All this without doubt will make the business more healthy and profitable. So maximization at all spheres of business is directly related to the growth of the business. Every business follows a set of ethics. Without ethics no business is able to reach where it is intended to. If we relate these business ethics to the economic theory of profit maximization, then we find that good ethics and good businesses are interrelated to each other as business ethics can be placed within opportunity costs. From this angle, profits are at center of all the activities and practices related to business. So the desire to maximize is showcased also in the ethics that were considered just a set of principles. Regardless of the market structure i.e. whether the market follows oligopoly, monopolistic competition, monopoly or perfect competition; one aspect of business is common to all and that is profit maximization. Apart from profit maximization firms also aim to maximize their production and the sale of their output. By doing so they do not always aim towards maximizing profits but at least aim to maximize their revenues. The implications of the above mentioned aspects might differ in different market structures but we get to know one thing that whatever the strategy of working is or whatever the technique of success is followed, all are being guided by the nature to maximize. Hence the root cause of all the activities is same. Apart from the profits and revenues the firms also try to maximize goodwill in the society. They know that only profits cannot ensure the firm's success because profits may vary from time to time, but once the goodwill is created, no one can shake the position of the firm in the eyes of the consumers. So people behind those firms, who engage in social welfare should not be mistaken as people who do not have the nature to maximize. They too are maximizing in their own way. This kind of maximization does not bring monetary gains but prove to be fruitful in the long run. Apart from the day-to-day activity of growth, revenue and profit maximization; more and more companies are turning towards social welfare as everyone has realized that only those who aim for maximization in all spheres are going to survive. Hence the nature to maximize is a key to survival. Its implications in particularly business is immense and beyond any other truth. Not only social welfare but also the maximization of organizational development has also helped in the long run. We can take the example of Japan. All over the world, employees and organization development activities of the Japanese firms are being followed. They have set a good example of how to achieve success. According to Rue and Byars "Organizational development (OD) is an organization wide, planned effort managed from the top, with a goal of increasing organizational performance through planned interventions in the organization. In particular OD looks at the human side of organizations. It seeks to change attitudes, values and management practices in an effort to improve organizational performance. The ultimate goal of OD is to structure the organizational environment so that managers and employees can use their skills and abilities to the fullest." (1992, p.434) Going by this viewpoint we will have to believe that human nature rules and transfers its characteristics to all the developments taking place around us. Since business is considered the focal point of all development and growth, it cannot remain untouched from the positive implications of human nature to maximize. If any business tries to deviate from the human ideology of maximizing then there are grim chances of success. Any thought that states - that man does not have the will to maximize or grow is the essence of failure. When the very foundation of thought is wrong how can one succeed because the seed of growth originates in man's mind. A very good example of high thinking or in other words the thought of maximizing and transformation of this thinking to action is the example of General Motors mentioned by Hegde and Krishna. General Motors was about to collapse when Alfred P Sloan, Jr, overtook it. It took him thirty years to make it the world's largest automobile company. It was his vision of maximizing all that was available in terms of resources, manpower, perseverance, patience and knowledge to make it reach the zenith. In the words of Hegde and Krishna (1993, p.40) "Sloan had practiced the "innovative approach" perhaps long before the term was coined." Hence it's now that we have started crediting different theories to measure the success and effort behind it. But man's nature of maximizing was always in him. Only now it has been considered as a strategy or approach to define his achievements. To conclude I would say that I completely believe that it is in man's nature and blood to maximize. Had it been anything different the implications on the business scenario would have been completely grim. Thanks to this virtue in man, that we have seen so much of advancement in all the spheres of our lives and most strongly in the business sector as business rules the world. The nature to maximize rules the man's actions to excel in all that he does. Word count: 2332 References Hegde, Y.S., and Krishna, R., 1993. The A to Z of Management Skills. New Delhi: UBSPD. Rue, L.W., and Byars, L.L., 1992. Management Skills And Application. 6th ed. USA: IRWIN. Read More