form of simulation used in management training. Both simulation and management games are mathematical models, but they differ in purpose and mode of use. Simulation models are designed to simulate a system and to generate a series of financial and operating results regarding system operations. Games do the same thing except that in games human beings play a significant part; that is, participants make decisions at various stages. The major goals of the management game are:
- To improve decision making and analytical skills.
- To develop awareness of the need to make decisions lacking complete information.
- To develop an understanding of the interrelationships of the various functions of business (accounting, finance, marketing, production, etc.) within the firm and how these interactions affect overall performance.
- To develop the ability to function cooperatively and effectively in a small group situation.
Management games offer a unique means of training accountants and have been used successfully as an executive training device. These games generally fall into two categories: executive and functional. Executive gamesare general management games and cover all functional areas of business and their interactions and dynamics. Executive games are designed to train general executives. Functional games, on the other hand, focus on middle management decisions and emphasize particular functional areas of the firm. Examples of executive games in wide use include XGAME, COGITATE, and IMAGINIT. Examples of functional games include MARKSIM, FINSIM, and PERT-SIM.
simulation exercise designed for management applications and used for training purposes. Management games can be group or individual exercises. Increasing numbers of management exercises are computer applications.
