Reply to post: Re: Cut staff levels to zero for maximum profit with no costs!!

IBM: Those 2 redundancy schemes? We need to 'improve margins' and right quick

Anonymous Coward
Anonymous Coward

Re: Cut staff levels to zero for maximum profit with no costs!!

"There are few who receive the seriously big money (and fewer actually EARN it) so cutting exec's salaries would help but probably not as much as some think."

However, 1990s management think was that reducing the number of levels and pushing decision making authority down vastly improved work done to headcount ratio. By being close to the customer you get productivity benefits which outweigh the cost of the management needed to offshore.

To make it work, though, you need top level managers who are not all part of the same golf or country club set. This may go some way to explaining why British companies suddenly do better when foreign management takes over that isn't part of the mutual backscratching fraternity.

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