Rus Articles Journal

For what to pay a salary or For what efficiency indicators are necessary?

Ask somebody for what he gets paid? Depending on answers of people, they can be divided into three categories absolutely accurately. The first are people who got stuck that they should be someone to achieve the objectives and some situation in society. They are called bytel from the word to be . Such people consider that they need to pay money only for the fact that have a certain status in society.

You met such people. Here dialogue of the head with one of them:

- What you made in the life? What was your product?

- Well, I became a professor! I received this long-awaited status of the associate professor!

- is good. And what you made?

- I what, it was not clearly expressed? I also made it! I ten years as honored associate professor!

Probably, it is necessary to agree about terms. Under production receiving some product which is suitable for an exchange for values is understood. It can be the baked bread or the company which as a result of work of the head extended several times, - something finished and having cost. In exchange for a product people are ready to pay money, or to give other support.

We will assume that you the rector of university. What product of university? Certainly, educated students . But if you hire bytel as the associate professor, receive as result of its activity anything, but not educated students as all its efforts are directed to obtaining the status. Bytel - it is almost clinical case, unfortunately very widespread.

There is one more type of people. These people are concentrated only on actions, them the end result of the work not really worries. They consider that just to perform some operations is the most valuable, and this already in itself praiseworthily and, of course, good payment.

Maker is in much best state, than bytel . Here approximate option of dialogue.

- What was your product?

- Oh, you know, I much and hard work. Awfully I am tired. Huge volume of work. But I cope.

- is good, but what your product was?

- Well, I tell. I spent all these hours at work, and broke twelve pencils, I do drawings. Yes, I constantly do these damned drawings. This my calling.

- Yes, but what you made?

- you what, you scoff? I work on drawings, I well draw and I do it all day.

Such dialogue is familiar to you? You resemble here and there, and you will find quite a lot bytel and makers . The people inclined to receive a salary for time spent at work. People who want money just in an award that they with you. Makers are not so bad, there are many types of work which they can charge.

The third category is small in comparison with the first two. It creators . These are those who create a value added. Those who are aimed at receiving result, know what is a product, can call the products made by it earlier and provide proofs.

Here real conversation with 16 - the summer guy:

- What your product?

- Oh, is good that you asked. Well, for example, the house constructed

-???

- I mean not that house which we together with the father built. There is one more, small, I constructed it the hands. And itself designed the sewerage. I had a book as it to do.

This boy now the plant manager, to the word.

Not all creators such nuggets, but all of them quietly argue within I made that, I created it . I brought the companies of milliondollar of profit - in lips of the seller it either lie, or it creator .

Now let`s return to the name of article. For what we pay people a salary? For the status, for actions or for a product? If to think properly, then the answer is obvious. Only for a product. Even to bytel and to makers .

With distribution of the ISO 9001 standard many enterprises entered at themselves management on the basis of indicators. And often, these indicators note what the hell, for example, opinion of heads on subordinates in points. There is no guarantee that this assessment will be objective.

I as the consultant, constantly I correct systems of indicators at various enterprises. And the reason for which I write this article, that misunderstanding of idea of indicators is global. It goes from old Soviet KTU (Individual Performance Factor), is fixed in the balanced system of indicators of Norton and Kaplan (good, but not perfect system) and is based on the general misunderstanding of an essence of a subject.

Indicators have to reflect a product of the organization, division, a post. All indicators have to be objective, available to check or inspection, it has to be some thing which is simple for seeing and counting. Otherwise you right there open injustice doors, to abuses and impossibility of use of such most powerful tool as planning on the basis of indicators.

Respectively in order that it is correct to formulate an indicator for some area, you need to give at first exact definition to a product which production is expected. And this product could be counted. It is that and will be the main indicator.

The main indicator of the autoenterprise - the car. They can be counted, isn`t that so? But just to note the number of the released cars there would be insufficiently that we could judge how there are affairs at the enterprise. What else indicators, except quantity of a product have to reflect?

According to classical system L. Ron Hubbard, at a product only three characteristics. Quantity, quality and viability. That is, in our example with cars, they have to be issued in enough and with sufficient quality to satisfy needs of clients and the enterprise, and they have to not break long. Each of these characteristics can be objectively found and counted.

the Number of the released and sold cars and their profitability will give a picture of a financial condition of the enterprise if also the third indicator - expenses of the enterprise for the same period is known. Everything is very simple.

The service of quality has the technology, but the product - the car certified on quality as a result turns out. It gives us an indicator of quality of a product (you can count the certified " cars;) and an opportunity to operate it.

the Number of claims from buyers, accidents because of the producer, statistics of breakages in a warranty period are objective indicators of viability. Here everything is clear.

But we have an administrative personnel which has concrete products too. Human resources department makes employees, accounts department makes in time the handed-over accurate reports, etc. I specially simplify real formulations in order that they were easily perceived in article.

I is responsible for each of these products the specific employee. For as gets paid. More for anything.

If to understand it, then injustice in payments, misunderstanding, an overexpenditure of funds, pangs of conscience " will disappear; I did not pay in addition to it misunderstanding with labor unions I recommend to pay people low salaries and high awards which are corrected depending on personal indicators. And also to encourage tendencies to growth of indicators.

If to pay for a product which can be expressed statistics, unproductive bytel and makers it is left the enterprise. And it will be filled productive makers and creators . It is necessary to make only correctly advertizing about hiring. But it already another story altogether.