Can someone who already written the GMAT, evaluate my below essay plz?
"The best strategy for managing a business or any enterprise is to find the most capable people and give them as much authority as possible"
Discuss the extent to which blablabla...........
Reply -
As businesses are growing bigger every day, managers are trying to figure out innovative ways to manage businesses. The strategy stated in the quotation above is good but definitely not the best strategy. Following paragraphs will highlights merits and demerits of the strategy stated above.
There is no doubt that managing a business or enterprise needs most capable people. If enterprise gives them maximum authority, these capable people will give best of them. These people will perform because the trust a business shown in them. Authority will help employees to use the resources for the best of the business. Former GE CEO Jack Welch had used this model to increase GE's revenue and profit many fold.
Too much of authority is liable to abuse. Employees can use this unquestioned authority to exploit the resources for their own advantage. Exploitation of authority can cost an enterprise very dearly. Recent sub-prime crisis in the US and Europe has proved this. CEO's, department head, VPs were given unlimited power. Authorities used by these people initially helped the organizations. Later on excess of authority led to move the control out of top management. Some executive with high authorities at the auto company bet billions of dollars on currency future without the knowledge of CEO and made billions of losses.
There is need to balance the authority given to the capable people. So, they will not use the authority for the detriment of the organization. The organization need to make sure that these people have enough power to let them perform well. But at the same time need to make sure that they don't abide by the rule of the organization and rules of law.
