Home Categories political economy Growing wildly in Liangshan Company

Chapter 51 Section 4 Addition and Subtraction

Lin Chong decided to use a mixed play of cost-effectiveness, questioning and flicking.There was a crackling sound, which made Wang Lun dizzy, dazzled and dumbfounded.When Wang Lun woke up, he felt that the situation was not good, so he hurriedly called Du Qian and Song Wan to discuss countermeasures.Who would have thought that Du Qian and Song Wanping would flatter each other on a daily basis, but they lost their minds at critical moments, so they couldn't help Wang Lun at all. "Touching the sky," Du Qian said, "Mr. Wang has always fooled Coach Lin very well, but I don't know where he was instructed by an expert this time, and his reaction was so strong!"

"King Kong in the Cloud" Song Wan said: "Accordingly, Coach Lin has indeed made an indispensable contribution to the company. Why don't we just follow him, meet his request, and give him a salary increase?" Wang Lun shook his head, thinking it was wrong, for three reasons: First, Lin Chong's contribution to the company was his duty as an employee, otherwise, where would the company's benefits and profits come from?Second, giving Lin Chong a salary increase is not just a matter of paying him more money, it will also bring about a very bad demonstration effect. If the employees all ask for a salary increase like him, is it okay?Third, human nature is greedy. With the first salary increase, there must be a second and third time... How can it be a break if the increase is endless?Wang Lun believes that the key to the problem is not whether to raise Lin Chong's salary, but how to find a proper solution.

Du Qian said: "Mr. Wang has a high vision, and we are not as good as him. May I ask Mr. Wang, do you have any good ideas?" Of course there is no good idea, but Wang Lun has always been smart, so he paced up and down in the office. After walking back and forth twice, he suddenly remembered a fable.So he quickly pulled out a book from the bookcase behind him, called "New Fables".One of them, "Three Mornings and Four Nights", tells the story of the sniper. During the Warring States Period, there was an old man named Xi Gong in Song State who raised many monkeys in his yard.Every morning and evening, the sniper will distribute food to the monkeys on time, and each monkey can receive four chestnuts each time.Every day, for several years.After getting along for a long time, the sniper can understand the feelings of the monkeys, and the monkeys can also understand the words of the sniper.

Later, the life of the sniper became more and more difficult, but the number of monkeys increased.He decided to reduce the food supply of the monkeys, and changed the number of chestnuts allocated every day from eight to seven.So he discussed with the monkeys and said, "Starting today, I will give you three chestnuts every morning and four chestnuts every night. Do you agree or not?" When the monkeys heard this, why was there a chestnut missing in the morning?They yelled and yelled to express their dissatisfaction, and jumped around, looking very reluctant. Seeing this situation, the sniper quickly changed his words and said: "Okay, okay, I promise to give you one more chestnut in the morning. However, you also have to promise me one condition, that is, you must reduce one chestnut in the evening. Let's give each other a step." , I will give you four chestnuts in the morning and three chestnuts in the evening, so it should be all right?"

The monkeys were very satisfied with the result of the negotiation and rolled on the ground for joy. Du Qian said puzzledly: "We have read this fable when we were young. The so-called ups and downs originally meant a way of fooling and deceiving people. Later, it was mostly used as a metaphor for people or things that have no rules in words and deeds, change and change, and are capricious. .Sniper is a hypocrite who is good at playing tricks, and those monkeys are a group of fools who have been fooled. But I don’t know what Mr. Wang is going to use this fable for?” Wang Lun replied angrily: "What are you talking about? Just talk about Lin Chong's request for a salary increase! You two are really stubborn. Why do monkeys object to gossip and gossip? It's not because they are easy to fool, but It’s because it’s more scientific to go from day to day than from day to day. The so-called day and night fits with the health regimen of ‘eat enough for breakfast and eat less for dinner’, understand? If you don’t understand, don’t talk nonsense!”

Du Qian and Song Wan were also very knowledgeable, so they immediately stopped talking. Wang Lun continued to express his high opinion.He believes that it is also a good salary strategy to use it in human resource management.There are two strategies for salary design, one is addition and the other is subtraction. Addition is like going around, and subtraction is like going around. The common practice of enterprises is to adopt the performance-based compensation strategy of "low basic salary + high bonus".For example, Zhang San, the basic monthly salary is 10 yuan, and the performance bonus is based on 10% of the sales performance.In this way, Zhang San's income has been adding up—according to the sales performance, the performance bonus is continuously added to the basic salary of ten yuan.

Wang Lun said: "I don't think so. I think the effect of addition is far better than that of subtraction." He took Lin Chong as an example-as the company's deputy general manager in charge of sales, if Lin Chong completed the performance indicators set by the company, You will receive an annual salary of 1,500 taels of silver, but there are two ways to pay this annual salary: (1) Addition: annual basic salary of 500 taels of silver + performance bonus.Among them, the basic annual salary is paid on a monthly basis, and the performance bonus is paid proportionally according to the performance evaluation at the end of the year.Only when the established performance indicators are satisfactorily completed can the full performance bonus of one thousand taels of silver be obtained.

(2) Subtraction: Based on the annual salary of 1,500 taels of silver, if the expected target is not met, the salary will be deducted proportionally, that is, the subtraction will be made on the basis of the annual salary of 1,500 taels of silver. In fact, the results calculated by the two methods are the same, just like the situation between the three and the four and the four and the three. Song Wan asked suspiciously: "Since the calculation results are the same, why do you think subtraction is better than addition?" Wang Lun pondered and said that doing subtraction has three major benefits:

When we add, the value of the talents we use is based on five hundred taels of silver.When we do subtraction, the value of talents we use is calculated on the basis of 1,500 taels of silver.The talent value of 1,500 taels of silver is obviously much higher than the talent value of 500 taels of silver, which can well satisfy the vanity of employees.This is the number one benefit of doing subtraction. When we do addition, the performance evaluation indicators are likely to be useless, because anyway, we can do more and get more, and it’s no big deal if we don’t do what we can’t do.The subtraction method is different. It is equivalent to preparing a pie for you. If you do not do well, you have to subtract half of it.When you have the appetite to eat a pie, half a pie is definitely not enough.In order to feed your stomach, you have to work hard.It can be seen from this that the salary strategy of subtraction can enhance the motivation of employees and help the completion of work goals.This is the second biggest benefit of doing subtraction.

When we do addition, as the employee gradually completes or exceeds the performance appraisal indicators, the total salary he receives may be less than, equal to, or even greater than 1,500 taels of silver.The subtraction is different. The salary paid by the enterprise can only be less than or equal to 1,500 taels of silver, so that the labor cost can be effectively controlled and the standardized management of salary can be realized.This is the third major benefit of doing subtraction. Subtracting is a gimmick, but it has a very different motivating effect than adding.Don't look at this little gimmick, it's a great management science!

After listening to Wang Lun's analysis, Du Qian and Song Wan looked at him stupidly, and sighed after a long while: "Mr. Wang, your IQ is really unpredictable. We can't help but admire you!"
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