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by vinay_ys
846 days ago
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That's because we as humans like predictability. And hence, stock market rewards predictability. So, a large company's finance department allocates, say, travel budget, to all divisions based on their past year's travel spend +/- some margin. So, now, if you are division head, you are going to make sure your travel spend for the current period is at least as high as last cycle to ensure your travel budget for next cycle doesn't shrink. This means you may encourage your employees to use that travel budget by traveling even if such travel wasn't absolutely necessary. This happens all the time with all sorts of budgets in all sorts of organizations. |
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