Gabriel’s scarcity rent – it’s management stupid!

To commit or not to commit (treating and spoiling yourself at your post)

11 December, 2007 at 1:50 pm 2 comments

This week Ted Rall surprised me with this cartoon. Whether the situation imprinted here corresponds to the our reality or not it’s for you to decide. There are many firms that only pay lip service to the HR function.

More about Ted Rall can be found in his page here. Ted Rall can be described as a liberal (well, yes, a radical liberal) so the page and his cartoons are not apt for Republicans or even mild democrats. Sometimes he exposes views that are hardly exposed in the US, and very common in the rest of the planet, I migth add. So please beware of the link

Do you work in a company that treats you well? How do you measure that? Do they try to put you in an always changing and turbulent situation only thinking on their profit or, alternatively, do they try to give you clear goals, aligned with the corporate strategy, assign you to fixed and predictable assignments and to the same customer? For your own good of course.

Well, sometimes things are not that simple. And that’s the point of my reflection here. Sometimes better can be worse and worse can be even better.

Take the example of the second company. They value you, your loyalty. You’ve reached stability. You are always assigned to the same customer, a predictable customer that needs the same service each year. Great. You’ve reached the point where you can deliver that assignment relaxedly, where you can sit back and think proudly of your post, your company and your life.

But now lets look at the economics. The the laws of economics always end up coming into play…

You’ll be more expensive each year, yes, that’s seniority. The laws of the market will need increased quality and lower price each year for that service. (Yes, believe it, you’re protected by an entry barrier because you know the customer but others are already climbing the wall offering better service at a lesser price). And you’re being accommodated to your post reducing your employability. That’s your net value!

That means that, you’ll be costing more and more and valuing less and less, while competition is around. Who’s losing here? In time they’ll breach your barrier and you’ll need to face the outside world again.

So it seems that a company that spoils you can really spoil you! Thinking of your career, what’s best for your may not be stability, loyalty or commitment, neither be the rewards for them what you really need.

Entry filed under: b-school, Blogging, HRM, Management, MBA, Thoughts. Tags: .