laitimes

It's time for the "good money" to drive out the "bad money".

author:Wang Rongzeng

For a long period of time, I found a phenomenon: in the same enterprise, two employees with equivalent positions, one is conscientious, hard-working, in addition to their own work, they can always do other work assigned by the leader to do beautifully, and the other is probably basically able to go to and from work on time, everything holds a state of 60 points, and things outside their own work can be less or less, and when the performance appraisal at the end of the year is cashed, we find that the former usually only about 10% more than the latter, which is especially common in many traditional enterprises and institutions.

Over time, the former will feel that the latter's way of working is "cost-effective", and their dedication to work is only one aspect, and at the same time, because there are more work lines, the probability of "being scolded" is far more than the latter, in fact, in many enterprises, "doing more wrong, making more mistakes and being scolded more" is also a very common phenomenon, and more importantly, their own efforts can not get more seen and recognized, and after a long time, they will feel that they are stupid unilateral output.

In the end, the former usually has only two ways out, one is to Xi learn from the latter, work in a Buddhist and step-by-step manner, and become exactly the same as the latter, or even surpass, and the other is to voluntarily resign from the current position, most of them directly leave the existing company. In the long run, the employees left behind in the enterprise are often "the latter", which is what we usually call the phenomenon of "'bad money' driving out 'good money'". For the long-term development of the company, there is no doubt that it will be harmful and not beneficial.

Unfortunately, we found that for a long time in the past, in many enterprises and institutions that pay attention to "balance", they usually adopt the "big pot rice" type of distribution, which is essentially the implementation of the "bad money expels good money" management method, the reason why this way is common in enterprises in the past, and even in many private enterprises, in my opinion, the most fundamental reason is that the business is in good condition, in the context of good business conditions, almost covering up most of the management deficiencies.

In the past month or so, I have visited a lot of enterprises, and in previous years, for enterprises, the end of the year is a happy and worrying node, and very different from previous years, I visited this year's customers, the vast majority of the current are in a state of "worry", they are worried about the difference in this year's business objectives, they are worried about the overall market environment next year. In the companies I have been in close contact with, probably less than 20% of the companies have completed the indicators this year, in fact, even these 20% of the companies are very uncertain and unconfident in their view, or the overall environment in the next 3-5 years.

As the saying goes, "only when the tide is out, can we see who is swimming", and similarly, when the overall business form is not ideal, we see that many enterprises have been very extensive in the past. This Thursday, I attended a human resources salon in Shanghai, and a private entrepreneur mentioned that in the past, they benefited from the rapid development of the market, and the company was able to grow rapidly, and in the past two years, the life of the enterprise is very difficult, in this case, they found that their original business can do a lot of extension, after doing related extensions, it will bring relatively high added value to the company, but he found that their employees are not willing to do things that generate higher added value outside the "main business......

After chatting, we found that the root cause of the lack of motivation of employees is that they invest resources to do these "extra" things and do not get a visible return, so many of them naturally behave in the "more than less" work attitude and way, in fact, after a long time, then there are fewer and fewer people who "have a big picture" and can participate in the additional business provided by the main business. Talking about this, I believe readers can also guess that there is something wrong with the incentive mechanism of this company.

At the scene, I provided two points of my thinking to this private entrepreneur: first, even private enterprises should clearly inform all employees that "tomorrow's big cake has my share", don't underestimate this sentence, this is a "shared benefit" value, if the leader can promise employees that "everyone will make the cake bigger together, and the reference person will have a share of the cake after it is bigger" The second is to establish a set of fair, just and reasonable incentive mechanism, in the past, the company's incentives are basically the boss's decision-making, such a decision-making method for large enterprises, for 00 employees, its adaptability will be lower and lower.

Earlier, I was in a local enterprise in Shanxi Province and a person in charge of a state-owned enterprise to exchange incentive mechanism, he gave me feedback on a more difficult problem he encountered recently, he said that his new superior is the leader of the unit to talk to him, which conveys a meaning, a benefit is so good (the customer's unit in the subdivided industry, in the local strength is second to none) of the enterprise, one-third of the people work is about the same, so I hope that this company can do a favor to the leader, although some employees recommended by the leader are not optimized enough, but also hope that this unit can be hired......

Of course, this unit is still "playing" with the superiors, and the person in charge of the unit asked me what my opinion was, and I said that in a sense, the leader's sentence is not "making something out of nothing", after all, I have also seen a very large unit where only one-third of the people are working normally, and the other one-third are "pointing fingers", and one-third are "lying flat"; In fact, such a business operation and management will face a very big problem, the two-thirds of the people must have someone tossing around, which makes everyone very tired, not to mention, in fact, the one-third of those who work hard will not have a good environment at all, and eventually they may be forced to leave.

As a result, the business will quickly go downhill or even go out of business. Two years ago, I saw that after the restructuring of a state-owned enterprise into an enterprise, because of the lack of understanding of the restructuring plan, the leaders of the enterprise took a few backbones to start a business on their own, leaving behind a very good local enterprise, which was acquired in less than half a year......

Within the enterprise, a big reason for the effective promotion of any mechanism is that the mechanism has a suitable soil, and under the background of good business conditions, "bad money" can often drive out "good money", and in an uncertain environment, enterprises need more good money to drive out bad money, and it is also necessary for good money to be able to deal with future challenges and problems without worries.

Within the enterprise, in order to make the "good money" effectively expel the "bad money", there are three ways to start: first, the senior decision-makers of the enterprise should deeply analyze their own behavior in the "bad money" to expel the "good money", and clearly put forward the management culture that makes the good money can effectively expel the bad money; the second is to establish a scientific and effective performance evaluation/appraisal mechanism, which can really screen out the bad money; the third is that the managers should be able to pull down their faces and strictly implement the company's policies. Many companies have a low target completion rate this year, and there is almost no performance according to the past policy, but some companies are still thinking about how to support their employees.

Earlier, I often heard a sentence in state-owned enterprises - those who are capable are not loyal, and those who are loyal cannot do it. It probably reflects the relationship between good money and bad money (original work, all rights reserved, welcome to pay attention).

About the Author

Wang Rongzeng: Management Consultant, Certified Management Consultant (CMC), Management Trainer, Business Author. Focusing on corporate culture, human resources consulting and training, he is the author of "Improving Management: How to Become an Effective Manager".