Managerial competence involves setting achievable objectives and organizing work efficiently. Incompetent management can sometimes outperform well-run places due to budget constraints. Efficiency improvements are often against organizational interests. A story illustrates how budget cuts during an economic crisis can lead to future budget increases. Competent management hinges on the ability to set and achieve objectives with limited resources. Optimization and relinquishing resources can be seen as losing in the zero-sum game of resource allocation. Companies must navigate the delicate balance between achieving goals and managing resources effectively to succeed.
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