 Pareto’s Principle - Between Practical Validation and Scientific Deception -Mircea Udrescu
Romanian Statistical Review Supplement, 2013, vol. 61, issue 2, 205-218 Abstract: We believe that in any situation where the contribution to the effort is uneven, the higher contribution is given by the ratio of those who participate in the contribution. Most of the times, in most human actions, the contribution of those who bring their contribution to the achievement of a common effort is uneven. Therefore, in an unequal world, over 50% of effort shall be obtained by the intake of less than 50% of those who take part in it, and more than 50% of those who participate in such an effort contributes less than 50% of the mass of that contribution. It argues that managers favor complexity, which is responsible for the increased costs, and indirect principle of Pareto constitutes the fingertips therapy are obvious managerial philosophy of syllogisms. Any sequential analysis of firms with the best economic results may show that only about 20% of the products ensures that 80% of turnover. Considering the dimensions of the current economic activity, we are entitled to believe that such tips were followed scrupulously by policymakers who have taken over the leadership of the Romanian society immediately after the revolutionary year 1989. Since I was taught that businesses are prone to squandering and wastefulness is conditional upon the complexity and each other, it was not hard to be convinced of it decision-makers a simple affair will always be better than one. As such, he became an enthusiastic return to the property system had in the late ' 40s, he actively supported the idea of "resitutio in integrum", major State-owned firms were divided into dozens of smaller firms (see the national power system, unfortunately, Fls, etc.), what is each other, and particularly agriculture cooperative property and the State was divided into millions of private plots. What was the economy became complex in two decades very simple but painfully unsatisfying. We have but one consolation: everything is according to the Pareto principle For those who support the principle of Pareto as the only valid argument is enough to enact: wastefulness is favored by complexity; effectiveness would be different in terms of acceptance of simplicity; most of the activities are already useless, poorly designed, poorly co-ordinated, imperfectly executed and here are irrelevant, since 80% of them are interested in 20% of the products; the smallest part of the activities is appreciated by customers, and the greater part of the activities is uninteresting; the true productive force is already choked by vast productive reality; poor grades, a lot, which already covers 80% of the total, are saved by a small number of excellent results, etc. The wise man's advice: to lay at three-fourths of productive activities in order to focus on that which is now the most advanced. Keywords: principle; efficiency; cost; effectiveness; value; profit; competitiveness; price; product; sum; decision (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:rsr:supplm:v:61:y:2013:i:2:p:205-218 Access Statistics for this article More articles in Romanian Statistical Review Supplement from Romanian Statistical Review Contact information at EDIRC. |
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