An MBA student writes nothing on Management? Hmm.. So, I break my fast and here is my first (and probably the final) post on management. After spending more than a year at MBA College, I understood that almost everything - including characters and personality of people - are quantified according to the MBA law. I strongly feel that the human element is somewhere lost in all this number-mongering field and only a person who has a pretty good Emotional Quotient (EQ) could become a successful manager. Even the subject “Behaviour in Organizations” is all about measuring people through surveys/numbers. Argh!
I also realized that graphs could be drawn for anything ranging from revenues to number of girlfriends a guy has over his lifecycle. So here are some random graphs I generated when I was thoroughly bored of preparing for some random financial exam that would strengthen the contents of my previous post.
Disclaimer: These graphs are solely my property. If you want to plagiarize my work (which I seriously doubt), please feel free to do so. Don’t bother to give any credit :)
1. What should be your compensation package?
Well, we all have expectations on how much we should be paid. And almost always the thought at the back of our mind is that we are grossly underpaid. Here is a simple graph that illustrates this.
Let’s assume that there exists an ideal line that projects the money that you should get based on the amount of dollar value that you have created for the firm. If this dollar value is easily computable, then all problems are solved. But alas, no firm has a firm procedure to do this and the subjectivity seeps in. And this leads to two new lines - Line A represents the amount that we expect the management to pay us and Line B represents what the management thinks we truly deserve. The gap between the two lines leads you to believe that you have been betrayed! Either lower your expectation or…wait.. sorry, there is nothing else you can do!
2. The myth behind performance appraisal
If you think that your performance rating that you received directly translates to your promotion/hikes/bonuses, you are fool. It isn’t that simple. The following graph should break the myth. There always exists a person who got the same money as you did but performed lower. And there is always a person who performed just as you did and earning more money.
This is the vicious circle of performance appraisal. If you want to feel better, you better start hallucinating that you are the only person in the entire firm in which case the below circle would shrink to a dot.
3. Older the wine, the better it gets
This is not true in most of the cases. As you grow older, you tend to work slower, work lesser, and make slow decisions based on analysis done by others. So, ideally your pay should get lesser as you grow older. But the ability of important-and-difficult-decision-making is supposedly acquired only through experience and this quality deserves more money compared to anything else. I never know if this is fair or not, but seems to be a globally accepted phenomenon.
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