Bus 1050 1st Edition Lecture 23 Outline of Last Lecture I. John Stuart Mill, Of Profits from The Principle of Political EconomyII.Charles Mackey, The Tulipomania from Extraordinary Popular Delusions and the Madness of CrowdsOutline of Current Lecture II. Management (Human Resources)III. Abraham Lincoln, Letter to Horace GreeleyIV.Lorimer, from Letters from a Self-Made Merchant to His SonV.Carnegie, An Employer’s View of the Labor QuestionVI.A Few Good Men Current LectureManagement (Human Resources) This is the process of managing people. The question is, how do we get people to be more productive? How do we maximize the productivity of one’s employees? One needs to be efficient, under the assumption that one’s competitors will also be efficient.Human Resources One incentive to make people more productive is monetary, another is the sense of enjoying what one does, another is some combination of the two, another is discipline (the motivation is fear), and there others.Benefits (Healthcare, Dental, 401K especially when the company does matches, paid vacation, paid sick days, tuition reimbursement, legal expenses, stock options where you’re given the option to buy shares of the company of the fixed price, and all of these are measured by money) There are various companies that believe that the only way to get their employees to be productive is with monetary incentives. Abraham Lincoln These notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.In 1862 Abraham wrote a letter to the New York Tribune, which was predecessor to the New York Times. Horace Greely, the person who wrote the longest op-ed, wrote a letter where he complained about Lincoln lack of focus when it came down to abolishing slavery. But in reality the war was not about abolishing slavery; it was about the south feeling like the abolishment of slavery was a direct attack on their economy because they felt like their economy depended on slavery. But studies have shown that, that was not the case. In this letter Lincoln shows Horace that he did not understand what Lincoln was saying initially. Lincoln made it clear that he was against slavery, but as the leader of the nation his responsibility was to save the Union because if the U.S. would have stayed as two different political entities we wouldn’t be as productive. His objective is to save the Union, not to eliminate slavery. His job is to provide for the continuous success of the joint states. CEO should say what do I have to do to make the entire organization successful and this is exactly what Lincoln did. George Lorimer (Letters from a Self-Made Merchant to His Son) Subordinates tend to envy the boss because they think he/she makes the rules but believe they don’t have to follow them. But Lorimer states that the boss is the only one who must follow all of the rules at all times because it’s the boss that sets the precedent. Also, a boss has to answer to all those above and below him/her. There is nothing more destructive to leadership/leader than putting one’s employees down. There is nothing wrong with pointing out when something does something wrong. Some advice given is to be slow to hire and quick to fire. When an employee is not productive it’s not okay to fire them immediately because the law prevents it and most companies give seconds chances and what not. They do this because they feel bad for the person. Doing this is not in the best interest of the organization because it doesn’t help them and it doesn’t help the organization. As a result, there’s a vacancy and the company will hire the first person that walks through the door. If you never say anything bad about somebody they’ll think they’re the best person in the worldand they’ll continue to act that way. Carnegie (An employers view of the labor question) If you look at the history of the industrialized world, in effect, is the revolution.Small organizations know each other by name and greet each other, while with large organization people don’t even know the CEO and this speaks to the unrest. Three solutions: 1) co-operation, which won’t work because we are not all equally capable. Mentrained to affairs are men who are already accomplished. It’s unlikely that worker owned companies would succeed. 2) Arbitration, which Carnegie argues that a retired men of affairs does not exists. But this is not accurate for today but it may have been back in the day. People who own an enterprise have much more of an invested interest. 3) The problem lies in money. We need to fix the money issue and everyone will be happy. We must seek a plan where employees receive higher wages when prices are high and vice versa. The solution is “sliding scale” wages. The source of the problem is money. Pg.420 What are the implications of this proposal? This sounds like a commission. But it’s not a commission because a commission is a production of sales. The more effort, the harder you work, the more you get paid. But for Carnegie’s third solution is not based on the effort. One would be defeating oneself if one works harder. The men will be happy if we tie their pay according to the price of steel. But would they actually be happy? Tie their compensation to the price of steel. As a worker, one would like a fixed wage because it’s consistent and certain, which means one may pay their bills, etc. Risk is uncertainty. Carnegie’s proposal places the element of risk (attributable to commodity prices) on the workers wages. This probably will not solve the issue. He is transferring the risk to the workers and saying that they will be happy. A Few Good Men clip Administer code red and kill the man. The commander is Kendrick and is questions by defense council, Kathy about how he treated the man. We are dealing with how employees respond to conditions.The lesson is that he was given an order to not sneak food to the officer and he was punished for it. So next time he will follow the rule in order to avoid