Management 1 - Entitlement?

I hope that I may use the example in Nancy's previous post, her comment that the enlightened Henry Ford paid his employees above the cost of living to ensure a dedicated workforce.

But, today, the emphasis seems to focus on a worker's entitlement.  It raises many questions, for example, should bonuses be an entitlement?  Are incentives necessary?

This may be my shortest post, as I hope to become part of useful discussion.

Politics 9 - Percentage Formula

I had cause to read the Cyprus Mail this morning, and was driven to write a comment to an article about the trade union of bank employees reorganizing the downsizing of the Bank of Cyprus.  I know, I should improve my prioritizing, i.e., Blog first, then, the media.

The EU has applied draconian measures to the Cypriot economy where some banks have ‘gone under’.  Unfortunately, Cyprus politics has been tied to Greece, and still is.  Hence, the application of strict rules for a much-needed ‘bailout’ by the EU.

The financial story is quite complicated, and would require more space than this Blog allows.  But, with regard to the Bank of Cyprus, the EU Troika forced the bank to freeze 47% of the accounts, and depositors having more than € 100,000 had the excess turned into long term bonds, not to mention a maximum daily withdrawal amount of € 300.

Naturally, many employees were ‘invited’ to accept retirement, and the remainder will experience severe pay cuts.

“The union proposed the percentage of pay-cuts that should be imposed by the banks, as if this were its responsibility. It decreed that cuts for salaries between €2,000 and €4,000 would be 10 per cent, between €6,000 and €8,000 at 20 per cent and over €10,000 at 30 per cent.  The unions dictated that the higher the salary, the higher the percentage cut, which on the surface seemed fair but it is not, because it reduces wage differentials”.

“Why should a senior bank executive, who works long hours, has many more responsibilities and much more pressure suffer a bigger pay cut than someone in middle management with a much easier job? Only unions, the great levellers and enemies of excellence, would think this is good arrangement. In effect, the unions are imposing an income tax policy, which they have no legal or moral authority to do, in the name of workers’ rights and nobody is prepared to challenge them.”

Thus, I felt that a comment should be made, because this has always been one of my favourite subjects.

What is the purpose of a salary increase (All things being equal)?  There are two simple reasons, 1. To reward excellent work, and 2. To adjust for inflation.

Of course, we all know that annual salary increases are regarded as an automatic event, regardless of employee excellence or the cost of living, and that is the first incorrect model.  Furthermore, management tries to use a formula of percentages for salary adjustments which is also unfortunate for employees at the bottom of the scale.

If there is an increase in inflation of 1%, and a related increase to the cost of living, does the CEO’s family annual grocery bill increase by € 2,000 and that of the cleaner only increases by € 200 (Assumes salaries of € 200,000 for the CEO and € 20,000 for the cleaner).  Of course not.  The cost of grocery essentials increases equally for both families.

Therefore, the unions, in this example, are right to apply a varying scale, and those at senior levels should stop complaining.  There are good times and bad times ... this is not a good time.

It is time for using the 3-star hotel.

Please comment via the Blog page (See below).

Politics 8 - Refugees

When one feels like discussing something interesting, it often becomes a debate. Then, we are told never to introduce those two dangerous subjects, Politics and Religion. But, try to discuss immigration and avoid an insulting argument, because immigration combines both politics and religion.

I wrote the following, as a comment, in a newspaper this morning.  Then, realized that I had a Blog, a worthy stage for my act.

Enter, stage right (or left).  No one political party in the world can design an equitable immigration policy, and those religions that preach 'Peace on Earth to all men', seem to forget those words when they leave the church or mosque.

Personally, I like to teach many people the difference between an 'immigrant' and a 'refugee'. In the 'ideal' world, immigrants should not cause major problems, but that assumes that immigration departments adhere to the regulations, i.e., no person (s) should be coming into a country without sufficient funds to support themselves for a defined period of time, or be sponsored by a business (or another individual) for a specific period of time, e.g., three years. After three years, they should qualify for resident or even citizen status.

But a refugee usually has no choice. They come, for various reasons, for fear of their lives. Once their case is proven, I am sure that most of us would be sympathetic to their situation. We may say, 'There, but for the grace of God, go I.' Nevertheless, I need to mention a rarely spoken, controversial point; If, and when, the fearful reason for their acceptance as refugees has passed, they must be encouraged to return to their safe country of origin ... and, from there, apply for immigration. A precedent exists, e.g., a tourist arrives in a country, loves it so much, decides to stay, but must return to their country of origin to apply at the embassy ... and prove educational skills, financial sufficiency, and criminal record, etc.

That is not discrimination.

Travel 8 - Bangladesh - Amazing Photo

I have just discovered this photo in documentation found from my recent stay in Bangladesh.  It is a wonderful example of the political situation found in Dhaka today (Mentioned in my Travel 7 post earlier), whenever there is a hartal (strike).

The attacker (terrorist/anarchist) is a member of the Bangladesh Nationalist Party's youth wing, attacking a group of policemen huddled in a shop doorway.  It is quite noticeable that the police are wearing protective clothing and carrying weapons including a rifle and tear gas guns.  I can only assume, from my experience, that the police either do not have ammunition for their weapons, or they are obeying an order not to shoot.

Opposition Youth Attacking Police

NEW AGE Newspaper

2,000 Page Views

It is very satisfying to tell you that this Blog has just passed the 2,000 page view point.  I hope that something written (or quoted) may be remembered or, at least, given you cause for thought.  Allow me to add that some of you have yet to become 'Followers' ... I hope that you will take a moment to consider this.  Feedback is also most important.