Business Lessons 6: Systematic Designation

In all types of management, it is always an essential necessity to properly designate the workforce into the jobs in which they could perform with efficiency.

 

These are some guides for systematic designation of employees:

1. When the employees competence has been determined, give him the job. It is also recommended to allow trainess while good employees are on the job so they could learn from them and their skills. It is best to reorganize after several trainess learn from best workers, the purpose is to share  their best to another field.

2. When the employees competence has not been determined, place him on a temporary designation. The puspose is to minimize possible damage and to check what area of work he could be efficient.

3. When incompetence is proven, demote or dismiss him under management prerogative rule. Demote him if he could be useful in some other minor aspects of work.

4. When his position is protected by law on security of tenure, he may be dismissed by promoting him to a confidential employment category. In that sense, he is no longer protected by security of tenure law.

5. Or assign a difficult undertaking [nearly impossible] for a possible ground of insubordination.

6. Hollow Promotions Techniques:

A. Promote to a position without function

B. Promote to a position which does not exist

C. Promote to an existing office which will soon  be dissolved

7. Avoid designation of two friends in one place, there might be no professional competition.

Systematic designation of employee is an ingredient to an effective management.

Questions on Sound Business Practice

As we all know, the thing called “sound business practice” requires correct thinking and good perspective on things. Everyday, we encounter some difficult questions, some of them may become the basis of our business judgments. The intent of this page is to encourage anyone to ask the question  pertaining to business, and I will surely provide a good answer to it for free.

A friend asked me two days ago and this is her question:

“Someone offers me a free installation services but he provides the materials to be installed, shall I accept it?”

ANSWER:

“Reject it. In business, when someone offers you an advantage at their own expense, it is something either with a concealed intent or a fraudulent element. Do not take the bait of “free services”, it will indirectly ruin your expenses. In philosophy it says, ‘free labor can avail of an unlimited favor’. I hope it helps you.”

You can ask your question too.

Business Lessons 5: Management Guides

Management in business textbooks signifies any operations which deal with the organization, functions of employees, systems of administration, and internal structures of a particular business.

Internal structures would mean any activity in the course of operation of a business. “Management” is different from “Business” because management refers to the administration while business refers to a transaction.

 

Management, most of the time, deals with problems in the arrangement of functions and employment systems.

 

By this virtue, the author suggested seven management guides in the proper treatment of management problems:

 

1. Allocate time to listen on suggestions.

    It is not necessary that you should follow anyone’s suggestion. The purpose of asking their suggestions is to discern how they perceive the management problems. You must not discriminate on who will give suggestion; there is a tendency that you can learn best things from the lowest ranked employee.

 

2. Be skeptical in all kinds of dealings.

    In management, a hasty decision is the most dangerous action. It is not necessary that you should believe in all myths of effective administrations or the most effective solutions to a particular problem.

 

3. Before making a decision, determine whether it is reasonable and practical.

    The conjunction “and” is important to note. It is not enough that it is only reasonable; there is a tendency that a decision may be practical but not reasonable or reasonable but not practical. The two must coexist. What is reasonable and what is practical are questions of facts determined only by situations and circumstances.

 

4. Before defining a problem, the cause must first be determined.

    I call this as PRIORITY OF THE CAUSE PRINCIPLE. Logic proves that a problem is only a result of a cause, solving a problem without knowing its cause is the same as aiming at an unknown target.

 

5. Apply this method in addressing a particular management problem:

    a.]     understand the cause of the problem

    b.]     define the problem and its complications

    c.]     gather relevant facts, informations and data

    d.]     conduct studies, research, observations and experiments

    e.]     eliminate undesirable suppositions

    f.]      formulate the most simple solution

 

6. If there are many solutions formulated, try the most efficient.

    I call this as EFFICIENCY PRINCIPLE. When there are many solutions, the confusing and complicated must be discarded. What is needed is only the most efficient.

 

7. If the problem is resistant to any solution, REORGANIZE the management system.

    I call this as CONTAMINATED MANAGEMENT PRINCIPLE. The only practical solution is restart the whole operation should there be a lethal virus in the management system.

Business Lessons 4: Questions on Capital

One of the first concern in any business is the thing called “capital”. In business, the term “capital” is understood as the prime operational expenses in the commencement of the business.

There are questions, however, which may help eradicating the myths pertaining with capital.

 

Question 1: Is it necessary to have a big capital to commence a business?

Answer:      No. It is enough that a capital may cover the necessary business expenses.

 

Question 2: Should there be a capital to every business?

Answer:      Yes. A business without a capital is no business at all.

 

Question 3: What is included in capital?

Answer:      Capital includes the expenses in the operation of the business, and all its losses. Meaning, capital shall also cover for the losses while the business is on the process of negotiating the mortal stage of its operation.

 

Question 4: When shall the capital terminate?

Answer:      Capital may be terminated after all operational expenses are replenished by gains or the profits of business. The subsequent expenses shall not be considered capital because it may be answered by the gains obtained. Gains is considered only after the recovery of the capital

 

Question 5: Is it necessary to have an actual capital?

Answer:      No. An actual capital is the capital at hand. Business may still commence by using a collateral capital or any other commercial devices and instruments, like checks, mortgages, loans, credits, et.c.

It is not necessary that a capital should always be in cash.

 

Question 6: Should capital always be in money?

Answer:      No. There are substitutes to money which may be used as a capital, like negotiable instruments. An asset, like oratorical skills, may also be utilized as a capital in any religious business.

 

Question 7: Is there a business without capital?

Answer:      No. Capital is essential before the commencement of a business.

 

The Salient Features of Niccolo Machiavelli’s “The Prince”

Niccolo Machiavelli

Born in Florence, Italy on May 3, 1469. He received a quality and classical education typical of the humanist traditions of Renaissance Italy. He became close friends with Cesare Borgia of the powerful Borgia family. Mac [the name used by barrister79 for Niccolo Machiavelli]  lived at a time of continuous political conflict.

Salient Features of “The Prince”

1. Moral principles must yield to every circumstance, especially in such cases where sordid [dirty] and inhuman actions may  be required.

2. It is imperative to do anything necessary to maintain and to hold power.

3. The “Prince” must not be hated, he must endeavor to avoid hatred. It is best for him to be feared and loved, however, if both cannot be possible it is better to be feared than loved.

4. War and ruthlessness are requirements for actual survival.

5. It is understood that apparent cruelties and hostilities may be essential to maintaining stability and power; the end justifies the means.

6. The wisdom to seek advice and counsel only when it is needed.

7. Ethics and politics has no connections, it is entirely different and distinct from each other.

8. The “Prince” should endeavor to be seen as compassionate, trustworthy, sympathetic, honest, and religious. Although in realities, his duties are rarely any of these.

9. The rule of law will yield to the rule of force; the rule of law can only move when it has a considerable amount of force.

10. The “Prince” should maintain a good relation with the people.

Annotation: The significance of propaganda becomes apparent. Its importance is to neutralize the unrealistic expectations of the people. The creation of myths is necessary, people always love to entertain folklores.

11. It is a sin to hamper the people’s laws and customs. If the “Prince” would change it, he may do it either indirectly or gradually. The aim is to allow men to live quietly.

12. A virtuous “Prince” must protect and ally his weaker neighbors and weaken the stronger.

13. He who causes another to become powerful ruins himself.

14. In all difficulties of governance, the only effective means of establishing rule is by force.

15. The “Prince” relying solely on fortune has little chance of survival.

16. The prophetic “Prince” should not rely only on his prophetic sermons. [This was a lesson taken by Mac from the situation of Girolamo Savonarola, a friar of Florence who relied too much with his oratory]

17. All armed prophets have succeeded and all unarmed ones have failed; people are by nature changeable.

18. A “Prince” must group nobles according to whether they support him or not. The ambitious and cunning nobles should be looked upon as enemies to be carefully watched.

19. Support from the subjects is easily accomplished by not doing them harm or by not placing them in threat.

20. In fortifying a city, during stress, a virtuous “Prince” must keep the morale of his subjects high, while removing all dissenters.

21. The “Prince” must know his people, the cultures, the language, the territory and the military.

22. Don’t rely on mercenary armies because they don’t have loyalties. Their motivation to fight is for money. [Observation: By common sense, there is an element of fear of a counter-offer]

23. Don’t rely on auxiliary armies because they are more dangerous than mercenaries. They are united and controlled by competent commandants [Observation: Auxiliaries are considered dangerous because they are borrowed from an ally which may have a military business with the enemies; its possibilities are anchored on the fact that they are controlled by leaders of which the ally has no control]

24. A “Prince” who strives after goodness in all his acts is sure to come to ruin, since there are so many men who are not good.

25. The only ethics that matters is one that is beneficial to the “Prince” in dealing with the concerns of his state.

26. If a “Prince” is overly generous to his subjects, appreciations will be lost because they will only greed for more. Besides, over-generous is not economical – it will only result in grief. Building up a reputation of generosity has a little importance.

27. To avoid hatred, do not interfere with the property of the subjects, their women, or the life of somebody without proper justification.

28. For a “Prince” who leads his own army, it is imperative for him to observe cruelty because that is the only way he can command his soldiers’ absolute respect. [Annotation: This is a lesson Mac learned from Roman history on the armies of Hannibal and Scipio]

29. Between two warring states, it is wiser to choose a side rather than be neutral.

      Reasons: a.] If your allies win, you benefit whether or not you have more power than they have;

                    b.] If you are more powerful, then your allies are under your command; if your allies are stronger, they will always feel a certain obligation to you for your help;

                    c.] If your side loses, you still have an ally [Observation: A loser ally is more advantegeous than having no ally]

30. It is wiser for a “Prince” not to ally with a stronger force unless compelled to do so. It is an important virtue to have the wisdom to discern what ventures will come with the most reward and then pursuing it courageously.

31. The selection of quality servants is reflected directly upon the “Prince”’s intelligence, so if they are loyal the “Prince” is considered wise. [Observation: An impaired servant does not mean lack of quality, what is important is loyalty. Dracula had a perfect servant  although Reinhardt is not so mentally fit]

32. There are three types of intelligence:

      a.] kind that understands things for itself  – which is excellent to have.

      b.] kind that understands what others can understand – which is good to have.

      c.] kind that does not understand for itself nor through others – which is useless to have.

33. The “Prince” should avoid flatteries and flatterers.

34. A prudent “Prince” should have a select group of wise counselors to advise him truthfully on matters only that he inquires of. Any other opinions should be ignored.

35. The “Prince” should be wise enough to be firm and should avoid changing of the minds.

Business Lessons 3: The Business Connections

In business, connection is really an indispensable part; this is due to the fact that no one can live by himself. However, finding the right connection is a question requiring a careful decision.

The traditional meaning of connection is partially changed that thereby promotes the modern approach. The modern view on connection is not anymore limited to partneship or direct link to a particular entity; it is sufficient that there is a “constructive link” to constitute a connection.

It is totally forbidden in business to establish connection to a person without contribution to the enterprise. Contributions cannot always be measured by monetary or financial scale.

Strange as it seems, I considered a business competitor a good connection. They make you careful on your business decisions considering that they are expecting your fall caused by a slight mistake in trade practices. Also, you can learn from their mistakes, successes and possible remedies to a difficult trade problems. You could also research on how they started, how they grow, how they chose the business, or where did they get their supplies, so on and so forth… Somehow, the philosophical connection is significant.

You could also consider as connection some other related businesses who cannot be considered as competitors. Their company and associations are of great gain of intellect. Besides, they can be your supplier when someone needs something not found in your business. In business, you need to let all possible consumers feel that you could provide them anything they want.

You could also consider as a good connection the other unrelated businesses because they may be your host in accommodating your intent of progress; it means that there is a possibility that someday you need to make investments, business extensions and/or trade expansions.

Your consumers and regular clients, of course. They enriched your business. Giving them some rewards and some trade remembrance is insignifcant compared to the values of their existence.

The business associations [for example, La Camara de Comercio], indeed, is a good connection. It is where you learn the worst and best business partners and new techniques in business.

The public, being the advertisers and patronisers.

Legislation for Automatic Civil Service Eligibility

It is an undeniable fact that we have had a lot of high calibered professional who could be useful in the affairs of human civilization, business, politics and administration. Many of them can qualify as a civil servant if not hindered with some unreasonable requisite. However, many of our competent professionals are living in the dark cave of our society on the reason that they lacked the required license or certificates of eligibility issued by a particular office. This incident of our time is considered to be one of the greatest mistake in professionalism.

This humble writer is simply asking for a legislation for automatic civil service eligibility to the degree holders of engineering, masters, doctorate, medicine and law. The reason is simple: so that our nation could use them as an asset to the government operation rather than allowing them to roam around the streets without professional functions.

A legislation for automatic civil service eligibility is not so foreign in the mind with a logical thinking,

first – they were graduates from an institution of which its competence is duly recognised by the state, otherwise, the state will just refuse their continuation to public service or just simply order the closure of the institution should it fail in institutionalized academic standards.

second – their failure in the professional exam does not mean they cannot be useful in the government operations neither would it suggest that they have no learning from the schools; oftentimes the failures were attributed to a wrong examination/questioning systems.

third – attaining the degree in engineering, medicine, law, masters, doctorate are far more intellectually reliable than having a certificate of eligibility issued by an officer who does not even had a degree higher than those mentioned.

fourth – it is humbly proposed that those who had the degree in engineering, masters, doctorate, medicine and law, who does not have the professional license due to some circumstances, be given the automatic civil service eligibility in recognition to the peculiarities and learnings inherent in the course.

Many countries in Europe and Asia relied too much in their universities such that they no longer require any unreasonable requirements for eligibility though they cannot immediately practice their profession due to a practical training requirement; they relied to much in their universities such that they feel they are not worthy to subject professionals to any further complexities after they graduate.

A legislation for their automatic eligibility is required for the commencement of an effective governance.

BUSINESS LESSONS 2: Limited Human Relations

In business, a businessman should act, move and think like a businessman. You should be trustworthy or at least appear to be worthy for anybody’s trust otherwise no one will engage business with you.

How should a businessman act, move and think like a businessman?
To act, move and think like a businessman is no easy task. It is always saddled with a great burden which will certainly limit the ordinary human relation.

Pleas be guided by these recommendations:

1. Limit your shame and embarrassment. Say an absolute NO on matters not necessary to business. Don’t be carried away by personal relations, business is business. Don’t yield to a request by reason of personal relations alone, think always of the business advantage you might gain therefrom – don’t compromise.

2. Limit trust and confidence. There is NO real friends in business; you only have the clients [consumer], the partners, the providers [producers] , the agents. All of them are ready to take advantage against each other when opportunity comes. Nothing prohibits them to betray you at a right time. In business, absolute trust and confidence is only a worthless whim; it is not really required to effectively run a business.

3. Don’t be deceived by the “love” trap. Businessmen usually get an “easy” girl to fill their feelings of emptiness or the need to be loved. This is the first ingredient for disaster. The errors of some businessmen is that they think of their business too much but they don’t think too much about their “love”, they will get that “love” in a hasty manner based on the delusion that they were so busy with anything more important.
Businessmen, please be guided by these line of thought:
a.) Businessmen does not really need love, they need profits and gains.
b.) If they need love, it does not mean a hasty prepaid love. Search for a better and “true love”, dont’ entertain the illusion that you are too busy and that you have no time. A real businessman has full control and absolute management of his time, not a slave of time.
c.) If they need prepaid love, it does not mean a compromise to the business. Love does not mean a ruin to the business. If money can buy “love”, it means that money is much more important than “love”.
Oftentimes, the business bankruptcy is not caused by misadministration or mismanagement BUT by the lover’s squandering – lover that has no regard on the hardships of business efforts.

4. Limit frequent and casual connections. Frequent and casual connections will create an unnecessary personal intimacy if tolerated.

5. Trust NO ONE even your partners, clients, providers and agents. Always be ready on their infedilities; be ready to replace them and to look for alternatives when they bring misfortunes or when they no longer serve their business functions. They are just humans with human motives and betrayal capabilities.

6. Always be suspicious on all dealings and business transactions. When business presentations suggest an extreme gain on your part, there is a greater percentage that it is a deception. Evaluate it properly and reject it when necessary, don’t be tempted by the offered gains for it is only a cheap bait. Remember, business is not only about discussions on gains.

7. Don’t agree on any dealings just because of a friendly smiles and gestures. Human being can always change the appearance in accordance with his purpose.

8. If business concepts are still not clear with your apprehensions, consult an impartial businessman or any business expert. However, to produce a more convincing findings, ask a second opinion from another consultant to double check the reliability of the business expert’s opinion.

9. Close supervision maintains and upgrades the efforts. Don’t allow business agents and associates to take absolute control on their jobs. Issue orders and policies from time to time according to business demands. Failure to abide the issued orders or policies is an insubordination.

10. A businessman should have a firm attitude. An attitude which signifies that you knew your function more than anybody else; an attitude which signifies that you cannot be dictated what to be done.

11. Don’t tolerate and don’t accept flatteries. They are just playing the weakness of human emotions. A businessman should be rational and practical, NOT a conceited animal. Business losses follows flatteries.

12. Don’t yield on the powers of tears. The greatest mistake of mercy is NOT the smiles of the proponent but the tears of those who pity. Businessmen should be aware of this. Tears may be equated with tears but not with money.

If friendship and other special relations will be destroyed in the name of business, abandon that business. BUT if friendship and other special relations will destroy the business, abandon those friends.

IN ALL KINDS OF BUSINESS, TRUST HAS ALWAYS BEEN A GREAT MISTAKE [2005, by PWA]

Barrister79 expresses his gratitude to the businessmen who continued to exchange ideas with generous considerations, THANKS!

BUSINESS LESSONS 1

There are many things to consider before starting a business. Business is not just a wild experiment nor a result of a “guess and try” approach. Many aspiring businessmen failed because of the failure to abide some standards in business preparations.

The great edifice to establish in building a big business is not on its commercial location but in the deep of the person’s mind – the thinking. Before starting ANY business, we should be guided by these standards:

 1. Knowing our capabilitites to handle inconvenience and endurance to any form of difficulties; Business is something which is dealing with different people, papers and procedures.

2. Knowing the kind of business you want to start; Don’t start something which is proven by others to be a good business, it is possible that it is not good for you.

3. Know your financial capability to sustain the expenses of your business in a long term; There could hardly be an instant gain taking into considerations the capital and other business expenses.

4. Know your financial condition and connections in relation to your desired business; Any businessman cannot live without the co-existence of others.

5. Know in advance the common, the rare and the special problems that may be encountered in the business you choose; Knowing it in advance facilitates your thinking on its possible remedies.

6. Know the place of business. Know the clients or the profiles of any prospective consumer. It will give you the hint on the extent of your business in a frame of time.

7. Expand your knowledge on the other EXITS of expenses. This will help you prepare some unknown business incidents.

8. Don’t borrow more than you could pay. It will surely destroy your business. Design a strategic method of payment if your rely too much on your borrowings.

9. Don’t employ many workers. Numbers of laborers doesn’t count, it is on their cooperation. Make an updated seminar or any lectures for them and the business.

10. In fine, it is important that you know the following:

       a.)  The business you want to start

       b.) The business problems

       c.) The business place and environment

       d.) The business finance and the expenses

        e.) The business disciplines  and firm attitudes

       f.)   The business frauds and legal matters

        g.) The expansions and investments

This is for lesson 1