MGMT448 Blog 2
When it comes to making the most important decisions in regard to resource allocation within a company, I believe it depends on the type of company and the type of product you are selling. The claim that staffing is the most important of any company is one that is very tough for me to support simply because the staffing costs of companies have a vast range. To be more specific, even companies with high staffing costs can have costs that outweigh those costs. An example that comes to mind is the hiring manager for a sports stadium. I have no real knowledge of the job, but I imagine employees for concessions and other various low-level jobs that are required to host events are easier to find and have a much lower cap for the cost to the company if they fail.
So, when companies choose to spend more money and resources to areas like marketing or product design, I believe it is because that company either sees a reward worth the risk of those plans or they believe that their product is good enough to be sold by anyone. This can be a very bad way to see things because having the correct people can make a product better, but I can imagine that there are CEOs and entrepreneurs that see their product as the reason for their success and not the other around them. This is probably the biggest weakness of choosing to not spend enough on the staffing process, bad hires can lead to a cycle of never being tested on the idea of the company, and a failing company that will not change will never succeed.
