http://www.business2.com/b2/web/articles/0...,652324,00.html
The above link will take you directly to an article in Business 2.0 entitled "Stop Picking Workers' Pockets". I must admit that the article really shook my basic beliefs, especially after having run a business with employees (well, one employee anyway). Unfortunately, you have to be a paid subscriber to read the article. So I will provide you with some of the thought provoking statements that Jeffrey Pfeffer makes. And hopefully U can come up with the necessary funds to subscribe, read, and change!
Here are some selected quotes from the article (I don't have a subscription to the electronic version but I do subscribe to the mag)
"When large companies slip into financial quagmires, it always amazes me to see where they turn first for a hand up -- to their hourly workers and other front-line employees, who are asked to take pay cuts."
"But if you think hourly rates of pay determine a company's - or a country's - competitive advantage, you're wrong."
"For many companies, the difficult truth to acknowledge is that hourly pay rates have little to do with company success, and that forced givebacks can often be a losing stategy."
"Yes, Southwest pays a higher rate than United or US Air, even though US Air is running scared as Southwest enters its Philadelphia hub."
"...being successful depends less on price and costs than it does on innovation, product and service quality, and customer loyalty."
"Instead of punishing hourly workers, companies ought to consider targeting senior executives, witholding not just raises but also retention packages and retirement benefits. Instead of blaming every strategic error and poor performance on labor rates, look at the usual suspects - quality and service - and focus on fixing these proven ingredients to success."
By Jeffrey Pfeffer, June 16, 2004
Jeffrey Pfeffer is the Thomas D. Dee II Professor of Organizational Behavior at Stanford University's (a small school somewhere near San Francisco) Graduate School of Business
I must add that Jeffrey is a little off on some points. He suggests that an innovative pilot might continually prompt atc for "shortcuts" and implement (own their own initiative) cost savings measures such as single engine taxi. I can forgive him for these as I'm certain he's never been involved in aviation operations.
Well, my thoughts after reading the article several times over is that the problem with U management is one on motives and intent. If they wanted to, they could come up with a way to maybe stretch out the snapback provisions, maybe ask for a deeper cut for the next twelve months of say 15%, and get to work on the things that they can change to make the company more efficient. This while cheering on the workforce and providing a vision that all "stakeholders" would embrace.
jm
The above link will take you directly to an article in Business 2.0 entitled "Stop Picking Workers' Pockets". I must admit that the article really shook my basic beliefs, especially after having run a business with employees (well, one employee anyway). Unfortunately, you have to be a paid subscriber to read the article. So I will provide you with some of the thought provoking statements that Jeffrey Pfeffer makes. And hopefully U can come up with the necessary funds to subscribe, read, and change!
Here are some selected quotes from the article (I don't have a subscription to the electronic version but I do subscribe to the mag)
"When large companies slip into financial quagmires, it always amazes me to see where they turn first for a hand up -- to their hourly workers and other front-line employees, who are asked to take pay cuts."
"But if you think hourly rates of pay determine a company's - or a country's - competitive advantage, you're wrong."
"For many companies, the difficult truth to acknowledge is that hourly pay rates have little to do with company success, and that forced givebacks can often be a losing stategy."
"Yes, Southwest pays a higher rate than United or US Air, even though US Air is running scared as Southwest enters its Philadelphia hub."
"...being successful depends less on price and costs than it does on innovation, product and service quality, and customer loyalty."
"Instead of punishing hourly workers, companies ought to consider targeting senior executives, witholding not just raises but also retention packages and retirement benefits. Instead of blaming every strategic error and poor performance on labor rates, look at the usual suspects - quality and service - and focus on fixing these proven ingredients to success."
By Jeffrey Pfeffer, June 16, 2004
Jeffrey Pfeffer is the Thomas D. Dee II Professor of Organizational Behavior at Stanford University's (a small school somewhere near San Francisco) Graduate School of Business
I must add that Jeffrey is a little off on some points. He suggests that an innovative pilot might continually prompt atc for "shortcuts" and implement (own their own initiative) cost savings measures such as single engine taxi. I can forgive him for these as I'm certain he's never been involved in aviation operations.
Well, my thoughts after reading the article several times over is that the problem with U management is one on motives and intent. If they wanted to, they could come up with a way to maybe stretch out the snapback provisions, maybe ask for a deeper cut for the next twelve months of say 15%, and get to work on the things that they can change to make the company more efficient. This while cheering on the workforce and providing a vision that all "stakeholders" would embrace.
jm
