Sunday, October 13, 2019

Acting like an MBA (a 'suit')

I wrote a few months ago about 10 years of post-graduate study, mentioning that I have learnt a great deal throughout these years although to be honest, I haven't seen myself applying much of the material. Thinking about this the other day, I realised that this statement isn't quite true.

Over the past few months, the CEO set up a series of weekly meetings at Karmiel, discussing various aspects of the work there. These meetings are one after the other, so I arrive at about 8:45 am, immediately join one meeting, then return home several hours later after participating in six or seven consecutive meetings. I make contributions to these meetings, but sometimes it's very difficult to get a word in when the CEO is talking strategy. The CEO has withdrawn himself from these meetings from the beginning of September, passing the chairmanship to a vice president so I have found myself making more and more contributions, finally acting like an MBA. 

Also, the new manager of the furniture factory (appointed after the sudden death of my friend Ya'ir) came without a business background (one wonders why he got the appointment), so I have been working with him on a weekly or fortnightly basis, bringing him up to speed and explaining all kinds of things; basically being an MBA. The other day, he once again expressed his thanks for the time that I have devoted to him; I told him that, apart from this being part of my job, it has also been instructive and enjoyable for me as well. This allows me to come out of the shade of the CEO and to apply material which I learnt during the MBA studies.

I think that there should be a raise in my salary, but I have my doubts whether this will happen (although nothing will happen if I don't ask). As I remarked to the furniture manager, when things go well, one doesn't investigate problems too deeply, but when business results are poor (and they have been recently), one investigates thoroughly. How can one justify a salary increase when results are poor? 

There are two other aspects of salary which ought to be taken into account. One is scarcity: how scarce is the ability that one brings to a job? This assumes that everyone can perform manual labour, so this is not scarce and results in a low wage. Few people can successfully manage a company, so this ability is scarce and should be awarded proportionally. I think that even fewer people can combine between business knowledge and the ability to enhance an ERP system: I provide a various scarce ability and so should be suitably rewarded.

The other aspect is responsibility: again, manual workers have little or no responsibility for the final product or how well a company performs, whereas responsibility increases as one ascends the management chain. I advise but do not take business decisions; my responsibility is lower than one might think. My work has little effect on the bottom line. I can make people more efficient but I can't make the company more successful.

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