Budgeting Basics and Beyond

Chapter 25. Using Management Games for Executive Training

Management games offer a unique means of teaching business managers and financial executives financial and managerial concepts and developing their strategic abilities. More and more companies, as well as virtually all MBA programs across the nation, are using management games as a basic teaching tool for industrial training programs. Games have also found their way into university and corporate executive development programs. In addition, researchers are using games to determine their effectiveness in teaching strategic thinking skills.

The management game is a form of budget simulation. The distinction between a game and a budget simulation is subtle. Both are mathematical models, but they differ in purpose and mode of use. As discussed in the previous chapters, budget simulation models are designed to simulate a system and to generate a series of quantitative and financial results regarding system operations. Games are a form of budget simulation, except that human beings play a significant part in games. Game participants make decisions at various stages; thus games are distinguished by the idea of play. The major goals of the game play can be summarized as follows:

• Improve decision making and analytical skills

• Facilitate participants' understanding of the external environment simulated

• Integratively apply the knowledge, concepts, and skills acquired in various business courses

• Develop awareness of the need to make decisions ...