Meaning of Time and Money

In some literal cases in the business world, time is literally equal to money. For example, banks pay interest on monies deposited for some period of time. The longer the principle is left on deposit, the greater the interest which accumulates. Conversely, banks charge interest on monies lent for a specific period of time. The longer the time period, the greater the interest charges (Fleisher, Ray, Kniesner, 395).

Advertising on radio or television also provides a direct example of time being equal to money. In this case, the advertiser pays for a specific block of time during which he advertises his product or service. The goal is to attract more sales from the advertisement than the cost of producing and airing it (Pearce, Figgins, Golen, 640).

Both of these examples, interest and advertising, look at the literal interpretation of time and money. The interest example provides the contrast of time as both a cost and a revenue, depending on whether the business is borrowing money or depositing it, respectively. The advertising example illustrates the concept that time can be bought

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ny as a whole may decide to enter a market or an industry in order to increase its overall productivity, to realize the most money for its time. In fact, the art of successfully managing a company is minimizing the time and maximizing the money associated with activities (Drucker, 93) . Of course, what may seem unproductive today, such as education and retraining, may result in long-term time efficiencies, not short-term. The question is, do managers who use the phrase, "time is money" recognize the long-term ramifications of the statement? The answer is, probably not. Under some incentive programs which hark back to piecework, employees are motivated to produce the maximum of widgets possible. If Employee A finishes 40 widgets in a week and Employee B finishes 30, Employee A is judged the more productive and thus, more valuable, employee. However, the adage "haste makes waste" could be applied if Employee A's widgets have to be returned because of quality errors. While rewarding Employee A for short-term productivity, his bosses are actually increasing the amount of time the company as a whole spends on his widgets, and thus decreasing company productivity. From this standpoint, the phrase, "time is money" may actually
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