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December 11, 2009 | 4:30 pm
Lessons in business: We not Me
Posted by Noah Alper
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Recently I came across an article in the Economist entitled “The rot spreads.”
The article chronicled the rise of corporate crime in recent years, especially this year due to the recession. It also noted that economic crimes of all sorts were “markedly more common” in firms that made a lot of use of performance based pay.
What is the lesson here? Excessive reliance on performance based pay breeds a culture of self-centeredness and a heightened temptation toward dishonesty. Individual Incentives are important, but teamwork and morale are more important to business success.
That is a lesson we should have learned from the Japanese auto industry and from common sense….years ago.
As we move towards the new decade, let’s hope teamwork will slowly replace me, me, me.
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Teamwork is actually the main factor in every company’s success in their industry. Without the help of all the employees, achieving your goal is impossible.
On the other side, if the company will only focus on incentives, tendency of changing the employee’s attitude would be high. Meaning he/she will be working just because of the incentive even without working honestly.
Starting from the big boss, down to the employees, they need to work as one to meet one goal. Goal in order to make the company a profitable business in a decent way. If this will be disregarded, this might be a big problem in the long run for all parties including the company itself.
I was blown away by the willingness of everyone to brainstorm, cooperate, and share, all in the name of mutual cooperation and individual improvement. Questions of governance in an era of scarcity, and staying true to core principles while accommodating fiscal responsibility were openly and honestly explored.
Ignacio Perez de Vargas
I think its our nature to possess a self-centered attitude. In the long run, selfishness of individuals - boss and his employees, can be a result of the downfall of the companies. Why? Because they might end up losing a great asset (competitive employee) of the company.
Sources like the one you mentioned here will be very useful to me! I will post a link to this page on my blog. I am sure my visitors will find that very useful.
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