Worse. Its about management bonuses. "Should we compensate floor mechanics better in our factory? How would that affect my bonus this quarter? It would be smaller? Then hell no." That's all it takes to explain myopic businesses. And so much of our manufacturing sector are motivated in just this way.
Self-interest is not necessarily myopia. The problem in your example is that payroll somehow affects a manager's bonus which is asinine (not saying it's not common).
