Archive for the ‘Harvard Business Review’ tag
Knowledge workers and the doll wars
Rosabeth Moss Kanter makes an interesting point on her blog at The Harvard Business Review when she writes about a successful legal action brought by Mattel, owner of the Barbie brand against MGA Entertainment Inc which owns Bratz.
Former Mattel designer Carter Bryant was charged with intellectual property theft because the company said he had the idea for Bratz while working for Mattel. The company’s contracts make it clear inventions made while working for the company become its property.
So, if your current employer does things badly and you know a way to do them better, you now need to halt your thinking processes while you serve out your notice or you could find yourself on the nasty end of a writ. It’s a twist on the idea an knowledge worker is someone who is paid to think for a living.
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- Why Should Mattel Get Future Plans For New Bratz Dolls? (techdirt.com)
Does high executive pay deliver performance?
In 1982 management scientist Peter Drucker said no executive should make more than 20 times the pay of a company’s workers. He was spot on then and his point stands today. However, I’d phrase things slightly differently:
No executive is worth 20 times the pay of an ordinary worker.
So why are companies willing to pay some executives many hundreds times the pay of ordinary workers?
It;s not because they deliver ’shareholder value’ because its been shown repeatedly there’s almost no correlation between company performance and executive pay.
John Mackey at the Harvard Business Review blog has an interesting perspective on this issue:
If CEO compensation is primarily driven by competitive markets, then how come the ratio was only 24 to 1 back in 1965 and is about 300 to 1 today? Surely the market demand for good CEOs is no greater today than it was 45 years ago or 25 years ago. Are CEOs today really worth that much more than their comparable peers were worth just a few decades ago?
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- Why Sky-High CEO Pay Is Bad Business (blogs.harvardbusiness.org)
- Peter Drucker says knowledge workers are an asset (billbennett.co.nz)
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