Self interest implies selfishness which has a negative connotation for many cultures.
Western cultures like to use the word “independence” to describe individualism; whereas Eastern cultures are not ashamed about promoting and surviving through collectivism. There is also a sense of independence in Eastern cultures, but to my knowledge, it is sometimes driven by self-consciousness (unwilling to give others trouble). Yet, we cannot deny that all of us, in any culture, have various degrees of this motivation to “make things happen for ourselves”. Hey, Steve Jobs got his success for himself. Before he had to become the breadwinner for a family, he was already climbing the ladder of the type of success admired by the general public.
Now, employees do have their own self-interest that we can appeal to. The usual mainstream suggestion would be to give them a sense of ownership, instead. But to give each employee a fulfilling financial ownership or psychological ownership over the success of the business would be an endless, exhausting effort. How can we ensure that everyone has equal (strong) sense of ownership? Not pertaining to this method, my wise uncle offers negotiation with his employees regardless of their performance. If they do well, their sick parents or family might be better taken care of because he gives rewards to those who decide to be honest, quietly, and of course they get to keep their jobs with increasing salaries over time. If they under-perform or cheat, they will not gain any favors from him, which usually makes them feel isolated and eventually turn in their resignation. So, really, rewarding self-interest which translates into desirable professional performance, in this case, proves effective, where my uncle manages to maintain over 5 stores with employees exiting voluntarily. Lean and mean! And for employees, it is really within their interest to do well and maintain their integrity with such a reward system. [Perhaps, this loose benefits system which allows the expression of silent favoritism should be replicated.] At the end of the day, the self-interest of the owner (my uncle) and the employees is being consistently promoted.
Now, is it really bad or evil to acknowledge self-interest? Well, it surely seems so in the world of the “altruism” industry (the non-profits or social entrepreneurship realm). Some say non-profit workers and social entrepreneurs have to survive (whether it is with bare necessities or with luxury; let’s not condemn personal preferences). Agreed! Development workers do enjoy their business or first class seats on the plane, nonetheless. Social entrepreneurs do enjoy profits and publicity. But in reality, for example, religious leaders and politicians are being criticized for their lavished lifestyles, especially in the midst of a financial recession, high unemployment or poverty. So these “public interest professions”, when put under the spotlight, get scrutinized. Sometimes, I question importers of fair-trade items who claim that they help producers of third-world origins and profit from product mark-ups. Artisans or producers earn a very little portion of the sale price of their products, while the importers or resellers earn a big chunk of it. I can also question leaders in microfinance organizations who get high compensations while the beneficiaries of the loans struggle to repay.
“We repeatedly get caught in this conflict between our professed moral principles and the real reasons why we do things—to wit, our self-interest.”, said Saul Alinsky on his book, Rules for Radicals. Good cause … is it good cause for others or for the self? Let’s not deny that in most, or all, cases it is for both. Corporations with advertised CSR programs get good image. Non-profit workers get personal fulfillment and a decent living. Social entrepreneurs get to pursue their passion and economic interests.
“Self-interest, like power, wears the black shroud of negativism and suspicion.” Yet Aristotle, in his lifetime, acknowledged that “… self-interest plays as prime moving force in man’s behavior.” So why do we often, in our minds, deny self-interest? Is it because “… it appears shameful to admit that we operate on the basis of naked self-interest, so we desperately try to reconcile every shift of circumstances that is to our self-interest in terms of a broad moral justification or rationalization.”? So why can't we not just be honest about it?
Saturday, January 28, 2012
Sunday, January 1, 2012
New Year, New Courage
It was a gift talking to an uncle whom sometimes takes time to counsel some of his nieces and nephews about life. He counseled me about workaholism (and the consequent weight loss and stress). He’s been there, he said, and it was not a good place to be. A good place to be is to know limits and talents.
Entrepreneurship and workaholism. What a love/hate relationship.
Going back to school with such a high opportunity cost was not easy. Leaving the oilfield behind and job offers was frightening at the least. Choosing a private school in DC and living there was not a completely informed decision. [Texas messed up my financial sense.] Being in school by spending savings, while being an entrepreneur who needs capital, is quite foolish, allegedly. But schooling is such an investment. Eyes and doors have opened. Horizon has broadened. Confidence and humility are tested.
And then the conversation shifted. Of course this uncle reads and keeps up with the global economies and domestic politics. There was a discussion about how the Chinese frugality put them where they are today. There is an uprising of middle class, new wealthy individuals, along with spoiled children. Can the West keep up? He said, maybe not, they like to spend, as peoples and a nation.
The subject somehow evolved to managing a country, and ultimately to something he is much more familiar with, managing a business with multiple branches. Exercise of power is key. Loose leadership is necessary. It is like managing a small country, he said.
What a perfect timing to catch up on Saul Alinsky’s Rules for Radicals that talks about power and self-interest, two things that have become my uncle’s main devices. An entrepreneur must know its powers, because “to do a thing well a man needs power and competence”, according to Jesuit founder St. Ignatius.
“It is impossible to conceive of a world devoid of power; the only choice of concepts is between organized and unorganized power. .. Every organization known to man, from government down, has had only one reason for being – that is, organization for power in order to put into practice or promote its common purpose.”
My uncle’s power as the business owner and his intellectual competence shines as he spends most of his time in Surabaya, my hometown, and pays two visits monthly to his 5-6 stores. Theft is highly expected. He stands outside to outsmart opportunistic employees. Knowing the accounting and inventory system inside out, planning each conversation before each visit, using rehearsed persuasion to investigate and interrogate, politely provoking their mental state to confess petty thefts, and getting them at an increasingly uncomfortable position until they voluntarily quit. Employees of 4 or 5 years still deservce such treatment if they cheat. Money speaks; sometimes it takes up to a few 100,000 Rp notes to get a confession. Of course, these tiny monetary gifts are rewards for honesty and loyalty, because employees’ mothers and kids get sick and it is easy to reward silently by referring to kindness. “Hey, I heard your mother was hospitalized this past week, and you don’t need to tell anybody here’s some …” is the way to end a successful back-room questioning. My uncle does not need to keep his stores and employees on constant watch. In fact, he needs to be away from them to be able to engineer his ingenious tricks, often written down in Chinese letters to avoid readability (and he giggles as he told me this). Loose leadership.
Self-interest is the key to get optimum performance from anybody. To be continued.
Entrepreneurship and workaholism. What a love/hate relationship.
Going back to school with such a high opportunity cost was not easy. Leaving the oilfield behind and job offers was frightening at the least. Choosing a private school in DC and living there was not a completely informed decision. [Texas messed up my financial sense.] Being in school by spending savings, while being an entrepreneur who needs capital, is quite foolish, allegedly. But schooling is such an investment. Eyes and doors have opened. Horizon has broadened. Confidence and humility are tested.
And then the conversation shifted. Of course this uncle reads and keeps up with the global economies and domestic politics. There was a discussion about how the Chinese frugality put them where they are today. There is an uprising of middle class, new wealthy individuals, along with spoiled children. Can the West keep up? He said, maybe not, they like to spend, as peoples and a nation.
The subject somehow evolved to managing a country, and ultimately to something he is much more familiar with, managing a business with multiple branches. Exercise of power is key. Loose leadership is necessary. It is like managing a small country, he said.
What a perfect timing to catch up on Saul Alinsky’s Rules for Radicals that talks about power and self-interest, two things that have become my uncle’s main devices. An entrepreneur must know its powers, because “to do a thing well a man needs power and competence”, according to Jesuit founder St. Ignatius.
“It is impossible to conceive of a world devoid of power; the only choice of concepts is between organized and unorganized power. .. Every organization known to man, from government down, has had only one reason for being – that is, organization for power in order to put into practice or promote its common purpose.”
My uncle’s power as the business owner and his intellectual competence shines as he spends most of his time in Surabaya, my hometown, and pays two visits monthly to his 5-6 stores. Theft is highly expected. He stands outside to outsmart opportunistic employees. Knowing the accounting and inventory system inside out, planning each conversation before each visit, using rehearsed persuasion to investigate and interrogate, politely provoking their mental state to confess petty thefts, and getting them at an increasingly uncomfortable position until they voluntarily quit. Employees of 4 or 5 years still deservce such treatment if they cheat. Money speaks; sometimes it takes up to a few 100,000 Rp notes to get a confession. Of course, these tiny monetary gifts are rewards for honesty and loyalty, because employees’ mothers and kids get sick and it is easy to reward silently by referring to kindness. “Hey, I heard your mother was hospitalized this past week, and you don’t need to tell anybody here’s some …” is the way to end a successful back-room questioning. My uncle does not need to keep his stores and employees on constant watch. In fact, he needs to be away from them to be able to engineer his ingenious tricks, often written down in Chinese letters to avoid readability (and he giggles as he told me this). Loose leadership.
Self-interest is the key to get optimum performance from anybody. To be continued.
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