The biggest problem with a large company is that it can't accurately measure each employee's contribution. It averages everyone's contribution.
In a large company, you get paid what you expect if you work hard in general. You can't be obviously incompetent or lazy, but no one thinks you're going to put all your energy into your work.
You can't say to your boss, I'm going to work ten times as hard, please increase my pay ten times as well! Because the company already assumes you're working at full capacity and, more importantly, can't actually measure your contributions.
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2. Suppose a company manufactures a certain consumer product, an engineer makes it with various features, a designer designs a beautiful shell, and a marketer convinces customers that it is a product worth having. How would you rate each person's contribution to the sales of this product?
Also, how much of the sales of the newest product should be attributed to the staff of the previous generation of products, who have built the image of this company as a reliable source of quality?
There is simply no way to clearly break down everyone's contributions one by one.
You want to work harder, but your work is lumped in with the work of many others, and that creates problems. In a large company, individual performance cannot be measured individually, and others in the company will drag you down.
3. salespeople are an exception to the rule. They generate income that is easy to measure, and their salary is often a percentage of sales. If a salesperson wants to work harder, he can do so right away and automatically get paid more on a percentage basis.
There is also a position that is measurable, and that is a senior management position where they are responsible for the performance of the entire company. Senior managers, like salespeople, are forced to prove themselves with numbers. A CEO who performs poorly cannot excuse himself from saying he did his best. If the company is performing poorly, he is performing poorly.
Unfortunately, the company can't afford to pay everyone like a salesman. Salespeople work individually, while most employees work in groups.
4. but even if it is not possible to measure the contribution of each employee, there is a way to get an approximation, and that is to measure the contribution of a small team.
The revenue generated by the entire company can be measured, and if the company has only one employee, then you can know exactly what his contribution is. So, the smaller the company, the more accurately you can estimate everyone's contribution.
A startup company may have only 10 employees, so the people factor that affects revenue is only 10 at most. this means that you better find great people to work with, because their work is averaged with yours.
5. A large company is like a giant Roman battleship, with a thousand rowers rowing together to propel it forward. However, two factors make it go no faster. One factor is that each rower doesn't see the difference between rowing harder and paddling harder.
If you pick 10 people out of a thousand, at random, and put them in a small boat, they are likely to row faster. The strong, strong rower is motivated by seeing that he personally has a significant impact on the boat's forward speed. If someone is slacking off, others can easily spot it and will complain about it.
If you pick ten of the best rowers from a large boat and form them into a team, that's when the advantages of a small boat of ten really show. The small team brings all sorts of extra incentives that will be brought to bear on them.
The most important thing here is that you've picked the best rowers, each in the top 1% of the top 1,000 rowers. It's so much more satisfying for them to average their work with the other top performers than it is to average it with the mediocre ones.
6. this is what a startup is really all about.
Ideally, you and other people who are willing to work their asses off to make a team together for a higher return (compared to working for a big company). A startup isn't just a team of ten people, it's a team of ten like minded people.
Steve Jobs once said that the success or failure of a startup depends on the first ten people who join the company. I pretty much agree with that, although I think that it's really just the first five people that determine success or failure.
The advantage of a small team is not that it's small, but that you can choose the members. We don't need the "smallness" of a small village, we need the "smallness" of an all-star first team. 7.
7. The bigger the team, the closer each individual's contribution is to the overall average.
So, all things considered, a very capable person staying in a large company can be a very bad thing for him, because his performance is being dragged down by other people who can't do the job. Of course, many factors come into play, such as the fact that the person may not care much about the rewards, or that he prefers the stability of a large company.
However, someone who is very competent and cares about rewards will usually perform better and feel more satisfied themselves in a small team of similar people.