Despite what you might hear from Washington or in the media lately, businesses are NOT charities. They are NOT created to 'transfer wealth' from the owners to the employees without regard to the 'bottomline.' They are not there to generate jobs and wages and benefits without regard to return on their dollar. All that is political propaganda that will work to the detriment of any business if they try to follow it as a business plan.
It’s important – from Day One - for employees to understand that you, as a manager or as a business owner, are in business to make a PROFIT. That profit may be for stockholders, partners or yourself, but the primary function of any business is to make a profit. That means you want to make money. As SHOCKING of a concept as that is in the ‘New America,’ it’s one that NEEDS to be told to your people right from the start.
It's nice that you are able to create compensation for your employees in terms of salaries and benefits, but that product or service you generate to create the money for paying your employees does NOT come from donations or taxes. It comes from honest planning, work, marketing, sales and cash flow from YOUR hard work. That’s how businesses REALLY work, not by confiscating the dollars of your customers and giving it to your employees with no eye on the bottom line.
One of the hardest obsticles I had to overcome when I was starting out in management as a young man was the 'guilt' being directed at me for trying to maintain and increase production levels of union employees. It was my job to insure my people were doing a ‘fair day’s work for a fair day’s pay.’ That is antithesis to what unions stand for today.
That was when we finally brought the union people into a meeting with their stewards and business agents for a little honesty session. The point they needed to understand was I was the one who put on the tie and suit, left the security of the union to work in corporate America where companies expect their managers to show a profit. As hard as it was for them to hear, I was not Santa Claus and the company was NOT a charity. They were not getting paid the same as managers because they chose to be in a union and work for an agreed upon rate. At the same time, they were expected to do their best to keep my company in a competitive position against my competition. As basic of a concept as that SHOULD seem, they failed to see how that was their problem. But it was. If MY boat sank it was taking down all hands. Including the union people.
We are now seeing that very thinking come to fruition in America as unions try to bleed companies – with the added help of Washington – while the companies are going out of business and EVERYONE is out of work – and Washington is seeing less and less in tax revenues.
What is the basic business model that is playing out before our very eyes??? If the bottom line is ignored the company WILL fail. Once the company fails there are NO jobs, wages or benefits to be had. Welcome to ‘Reality 101.’Someone needs to call Washington and explain this basic concept to THEM. They are not getting the point.
It’s important – from Day One - for employees to understand that you, as a manager or as a business owner, are in business to make a PROFIT. That profit may be for stockholders, partners or yourself, but the primary function of any business is to make a profit. That means you want to make money. As SHOCKING of a concept as that is in the ‘New America,’ it’s one that NEEDS to be told to your people right from the start.
It's nice that you are able to create compensation for your employees in terms of salaries and benefits, but that product or service you generate to create the money for paying your employees does NOT come from donations or taxes. It comes from honest planning, work, marketing, sales and cash flow from YOUR hard work. That’s how businesses REALLY work, not by confiscating the dollars of your customers and giving it to your employees with no eye on the bottom line.
One of the hardest obsticles I had to overcome when I was starting out in management as a young man was the 'guilt' being directed at me for trying to maintain and increase production levels of union employees. It was my job to insure my people were doing a ‘fair day’s work for a fair day’s pay.’ That is antithesis to what unions stand for today.
That was when we finally brought the union people into a meeting with their stewards and business agents for a little honesty session. The point they needed to understand was I was the one who put on the tie and suit, left the security of the union to work in corporate America where companies expect their managers to show a profit. As hard as it was for them to hear, I was not Santa Claus and the company was NOT a charity. They were not getting paid the same as managers because they chose to be in a union and work for an agreed upon rate. At the same time, they were expected to do their best to keep my company in a competitive position against my competition. As basic of a concept as that SHOULD seem, they failed to see how that was their problem. But it was. If MY boat sank it was taking down all hands. Including the union people.
We are now seeing that very thinking come to fruition in America as unions try to bleed companies – with the added help of Washington – while the companies are going out of business and EVERYONE is out of work – and Washington is seeing less and less in tax revenues.
What is the basic business model that is playing out before our very eyes??? If the bottom line is ignored the company WILL fail. Once the company fails there are NO jobs, wages or benefits to be had. Welcome to ‘Reality 101.’Someone needs to call Washington and explain this basic concept to THEM. They are not getting the point.
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