The more corrupt the state, the more numerous the laws. ~ Tacitus
Tag: Big Government
Modern Management Theory
A company had a vast scrap yard in the middle of a desert. Management said, “Someone might steal from it at night.” So they created a night watchman position and hired a person for the job.
Then management said, “How does the watchman do his job without instruction?” So they created a planning department and hired two people: one person to write the instructions and one person to do time studies.
Then management said, “How will we know the night watchman is doing his tasks correctly?” So they created a Quality Control department and hired two people: one to do the studies and one to write the reports.
Then management said, “How are all these people going to get paid?” So they created positions for a timekeeper and a payroll officer, and hired two more people to fill them.
Then management said, “Who will be accountable for all of these people?” So they created an administrative section and hired three people: an Administrative Officer, Assistant Administrative Officer, and a Legal Secretary.
Then management said, “We’ve had this command in operation for one year now and we’re $318,000 over budget. We have to cut back on overall costs.”
So they laid off the night watchman.
American Management
The Americans and the Japanese decided to engage in a competitive boat race. Both teams practiced hard and long to reach their peak performance. On the big day they felt ready.
The Japanese won by a mile.
Afterward, the American team was discouraged by the loss. Morale sagged. Corporate management decided that the reason for the crushing defeat had to be found, so a consulting firm was hired to investigate the problem and recommend corrective action.
The consultant’s finding: The Japanese team had eight people rowing and one person steering; the American team had two people rowing and seven people steering.
After a year of study and millions spent analyzing the problem, the consultant firm concluded that too many people were steering and not enough were rowing on the American team. The cost of the study drove the project over budget, so the corporation laid off one of the rowers to make the project leaner, to increase the cost effectiveness of the project, and to illustrate to the stockholders that the corporation was willing to make tough corrective decisions. The management team asked the remaining rower to practice weekends and holidays to compensate.
As race day neared again the following year, the American team’s management structure was completely reorganized. The new structure: four steering managers, three area steering managers, and a new performance review system for the person rowing the boat to provide work incentive.
On this race, the Japanese won by TWO miles!!
Humiliated, the American Corporation laid off the rower for poor performance and gave the managers a bonus for discovering the problem.
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