We believe that managers distinguish risk taking from gambling primarily because
the society that evaluates them does and because their experience teaches them that
they can control fate. Society values risk taking but not gambling, and what is meant by
gambling is risk taking that turns out badly. From the point of view of managers and a
society dedicated to good management, the problem is to develop and maintain managerial
reputations for taking "good" (i.e., ultimately successful) risks and avoiding
"bad" (i.e., ultimately unsuccessful) risks, in the face of (possibly inherent) uncertainties
about which are which. The situation was described rather precisely to Shapira
(1986) by one senior vice-president. He said, "You have to be a risk taker, but you have
to win more than you lose.
We believe that managers distinguish risk taking from gambling primarily becausethe society that evaluates them does and because their experience teaches them thatthey can control fate. Society values risk taking but not gambling, and what is meant bygambling is risk taking that turns out badly. From the point of view of managers and asociety dedicated to good management, the problem is to develop and maintain managerialreputations for taking "good" (i.e., ultimately successful) risks and avoiding"bad" (i.e., ultimately unsuccessful) risks, in the face of (possibly inherent) uncertaintiesabout which are which. The situation was described rather precisely to Shapira(1986) by one senior vice-president. He said, "You have to be a risk taker, but you haveto win more than you lose.
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