16 June 2009

Demanding Performance is not always productive.

Most organization demand performance. 'Faster, Higher, Stronger' is the mantra of all management gurus. This is all that MBAs are taught and expected to achieve. Collateral damage is acceptable as long as profits are greater. Is this really the right way??

Here's an which proves otherwise:
BPO cabs supposed to reach the respective offices on time with passengers. To improve productivity and performance, the cabs are not paid if they arrive late. Every year the time taken for a round trip is reduced to boost performance!

Passengers take their sweet time to leave their home and sit in cabs. This inedvetably delays cabs. In addition the road congestion is at an all time high. To make up lost time, cabs drive rash and this is the for regular accidents where BPO cabs are involved.

It would be great to have performance criteria to drive responsibly but this in no way benefits the company. Hence this is never a performance criteria.

Same is the case with being environmentally friendly. Companies adopt policies like shuttign down AC to reduce electricity usage thus saving $$. None will be willing to accept drastic steps which would result is being more environmentally friendly by less cost effective.

Sad but true, Leaders of today are only focussed on profits. Other business perogatives do not matter to them. This same ideoogy flows down the management chain to the workers.

2 comments:

  1. Such firms can pick a leaf from the guide-book of Dominoes Pizza delivery.... there the delivery people are not penalized for late deliveries...despite the "30 minutes or free" company policy!

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  2. I believe earlier they used to penalize the delivery boys. Over time they realized that their quality was impacted so reverted the order.
    In hte case of cabs, its the employee who is impacted and there is no direct relation of this with quality of customer delivery. My guess is companies can live with that :-)

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