Management Assignment Help
Long term thinking for managing organizations is very important. The higher management must take decisions which benefit the organizations in long term. In reality however, it is observed that organizations tend to take actions and decisions to meet the short term requirement and overlook their impact on the organization in long term. Most of the problems which the organization face are due to this narrow vision which their higher management had before taking decisions to effectively managing the short term and long term requirements of the organization. The higher management in such cases fails to resist the temptations to take decisions which benefit the organization in short term but have little consideration for their long term effects on the organization (Thompson and McHugh, 2002). The recent financial crisis which the world has observed was also caused by the same short term thinking by the managers of the corporate which neglected the adverse effect in long term and thus causing the global financial crisis. The financial firms before the global financial crisis appeared knew that the products which they were selling to the customers were risky and complex. But they ignored the risk in order to compete with the rivals and to give more short term returns to the investors which resulted in this crisis. The recent experience and numerous experiences teach the managers that long term thinking must be given its due importance before decisions are taken by them. The essay discusses the importance of long term thinking and the reasons why the managers had to give preference to short term thinking and how can the temptation for short term thinking can be avoided by them.