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taway_1212 | 7 years ago
Typically, at least in large organizations, the manager is interested in increasing, not decreasing, his budget. Since everything that happens in modern companies is very opaque (i.e. how much actual value is created is not clear for people outside a given business unit), the budget size/headcount is often used as a proxy for value. So, according to this logic, the bigger the headcount, the more important for the company the manager must be, so he can then negotiate a raise, bonus, or a promotion for himself. I agree with Michael O. Church here - managers in tech are mostly one-man PR firms (managing their own reputation). That sucks, but that's the result of our current workplaces in tech getting so complex that judging actual merit is close to impossible.
repolfx|7 years ago
It's common for really large companies to use internal billing. So the IT department for example might charge other departments for their services and have to show it's a profit center. The problem with this of course is that it's also a monopoly, so this hardly incentivises better behaviour. In a situation where other departments can go outside the firm to get what they need, this is almost like outsourcing or divesting that department and it can act as a check on really bad cost:benefit ratios internally.
wjnc|7 years ago
badpun|7 years ago