45.3k views
5 votes
Why might organizations include multiple non-financial criteria in a screening model for projects?

1 Answer

5 votes

Final answer:

Organizations include multiple non-financial criteria in project screening to make informed decisions considering the complexity and uncertainty of business environments, improving efficiency and stakeholder equity.

Step-by-step explanation:

Organizations might include multiple non-financial criteria in a screening model for projects due to the complexity of business environments and the need to address imperfect information. By incorporating criteria such as employee attributes, equity among stakeholders, and environmental impact, organizations can make more holistic and informed decisions. Criteria like motivation, timeliness, and the ability to get along with others provide insights into an individual's or a project's likely success beyond mere financial returns. Similarly, ensuring the equitable distribution of costs and benefits among stakeholders promotes a more efficient and conflict-free project environment. In the context of engineering and design, variables like pollution, energy source sustainability, and commuter comfort are vital for creating projects that are viable in the long term and accepted by the community.

User Zeb Rawnsley
by
8.1k points