Employee Satisfaction


Employees expect more from their jobs now than they used to. Today’s affluent employees often demand work that provides some self-fulfillment, whether it is on the assembly line, in middle management at a multinational corporation, or in managing a fast-food franchise.

Business pays attention to these needs—and to the problems that can occur when they are not met. Poor productivity, high absenteeism, and sloppy workmanship are expensive by-products of worker dissatisfaction. So all sizes of businesses are making efforts to improve employee performance and satisfaction. Involving employees in key decisions, making jobs more interesting, and providing employee counseling are several of the ways in which they are doing it.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

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Setting Standards


Having standards is not enough. They must be the correct standards. By correct means not too low, not too high. If you set them too low you will lose productivity; valuable resources will be wasted. Low standards are also demotivating. Challenge and job satisfaction go hand in hand. When standards are too low people become sloppy in their work. When they can do their jobs with their eyes closed, their attention is lost and needless errors are made.

Standards that are too high are a problem as well. When standards are unrealistically high, the manager has no yardstick for determining how well the people performed. The standard is meaningless. Standards that are too high are also demotivating. If people know that the standards are impossible, they will reason “Why try at all? We can’t reach them anyway.” The standards become a source of frustration. If people consistently strive to meet the standards without success, they will feel like failures which will eventually affect their morale and performance.

The goal is to set standards high enough so that people have to work exceptionally hard to reach them and low enough so that they are attainable.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Complacency Breeds Failure


Once they are making a lot of money, many salespeople, for instance, tend to get complacent. They get lazy and sloppy and stop attending to the basics. The same thing happens in many different areas when people or teams are successful. Success, is the goal, the finale, the reward, the finish line. Because it is viewed as the end and not the means, there is a tendency to think we’ve got it made when we achieve our goal. We think we know the basics, have the skills and drills down, and start taking success for granted. The result is, we get killed into complacency and slack off.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Lectures, Line of Sight

Managing Cash and Liquidity


In a turbulent environment, cash returns are important, if not more important, than reported profit returns. Cash returns lead to liquidity, and liquidity is a top priority consideration whenever risks and uncertainties surround a business situation, as they do in so many cases today. Cash and liquidity put any company in a better position to withstand a surprise blow, adapt to sudden changes, and capitalize on the narrower windows of opportunity that are commonplace in a turbulent environment.

This doesn’t mean that profits and profit growth are not important. The whole purpose of any business enterprise is to maximize profits and profit growth, but this objective will  not be achieved if business unit managers do not focus more time and attention on managing their cash and liquidity. Any entrepreneur that has lived through a start-up knows the importance of cash and liquidity. The entrepreneur knows from experience that a business can go bankrupt even while it is reporting profits. But it will never go bankrupt as long as its cash and liquidity positions are strong. Most corporate executives understand this point also, but many do not follow through to make sure it is sufficiently stressed or understood at the operating level. This is where the problem lies. Most business unit managers who operate under a corporate umbrella tend to overlook the importance of managing their own cash and liquidity and look instead to the corporation as a never ending source of funds.

The results are apparent in most corporations. Capital expenditure proposals tend to be a “wish list” often justified on project volume gains or cost savings that never occur. Working capital is allowed to build without adequate regard for carrying costs on the cash commitment. In short, overinvestment in plant and equipment, and working capital often serves as a buffer to cover sloppy business practices and control. These are practices that inevitably lead to an investment base that is too big for the business and to marginal profit returns.

Many operating managers in a corporation are not even aware of the costs incurred while excess capital is tied up in the business. This is not an exaggeration. Just ask any four or five business unit managers how much it costs to carry their inventory. Most of them will acknowledge an interest cost of, say 7—8 percent, but few will recognize that total carrying costs, which include storage, taxes, obsolescence, and shrink, actually run closer to 30 percent in today’s environment. We would also bet that none of them have such charges against their earnings, even though it is a very legitimate cost of doing business.

Not every company operates this way. Most corporate executives are not tough minded or rigorous enough in challenging cash commitments, and most business unit managers have more cash tied up in their business than required.

Ideally, every manager should think like a small business entrepreneur with his or her own money at risk. If this were the case, we would not see so many companies with bloated balance sheets and marginal returns. Left on their own, most business unit managers do not think this way, however. Life is not easier when you can draw almost at will on coroprate resources to meet the payroll, build inventories, and buy supplies, tooling and a lot of equipment. Under such conditions you don’t have to worry very much about how to make ends meet.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight