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1. The Pareto principle has become entrenched in management thinking: 80 percent of effects are created by 20 percent of causes. We regularly hear such glib statements as “20 percent of our customers account for 80 percent of our sales.” The text furnished other examples of the Pareto principle. Conduct research on the Internet to find at least one example of the 80/20 rule that has taken place in the last six months. Perhaps a recent product recall will prove fruitful, such as one model of a product creating the vast majority of the problems. At the same time, see whether you can find evidence that refutes the reliability of this principle or rule. In other words, can you find a current example of a situation in which 20 percent of the causes did not produce 80 percent of the effects?
2. How might the Pareto principle apply to the profits an automobile company earns on the sales of its vehicles?
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3. At one time, some companies hired talented people at a good salary with the assignment to simply “do something useful, and profitable.” Were these hiring managers irresponsible? What kind of worker could perform well in such a position?
4. An important part of management is dealing with people. Where is the human touch in any of the techniques?
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