Hym "Do you know why people are paid a static rate as opposed to a per task payment for services rendered?
Well, I read an article once (I can't remember from where) about a tech company. They make video games or something. (Assuming the article was true) They decided to
switch from paying an hourly wage to a 'per task completed' payment system. And what happened? Well... Productivity skyrocketed. So much so that the company could not sustain the 'per task completed' payment system. People were completing tasks ahead of schedule and working more (in general) to make as much as they could. If there was a 1 to 1 correlation between hard
work and profit everyone would
work as hard as possible to make as much as possible. But that isn't the
case. That CAN'T be the
case. The hierarchy MUST bottleneck. Sure, you can
work hard. Sure, you can be promoted up. If not, you can change jobs. It doesn't have to be YOU who remains at the
bottom. But I does have to SOMEONE. Every business needs
bottom level labors. And it needs them INDEFINITELY otherwise businesses can't sustain themselves. The correlation between hard
work and profit must remain below 1. So what is it? At your average business. It is something that must be
set by business owners. You can't promote everyone who works for you. So what is it? .4? .5? I don't have the answer. But it's something do consider when taking about the national productivity rate..."
