Saturday, January 12, 2013

Bonus/ malus management in China

In my last post: I was wondering why Chinese street sweeper are so active and zealous.

As I don't believe that people are more zealous in one country as opposed to another country (even though of course you always have some "common way of thinking in one same country/ city/ family), this must have to do with management.

After discussing with a Chinese street sweeper I now understand how it works!

It is the so called bonus / malus management:
You have a set of rules. The employees should know all these rules and follow them.
If they don't follow one of the rules, they will have a malus on their salary.
If the employee follows well the rules, he will get his total salary and might get some bonus.

As for the Chinese sweeper he has a supervizor.
Every day, the supervisor will check will check if the floor is clean. If not and if the street sweeper is there, the supervisor will ask him to do the work properly. If the street sweeper is not there he will have some malus. Some points are taken off. Each point is worth 4rmb...

A management system dating back for thousand years old?
Clean streets in China are crucial if you want to avoid epidemics.
As there has always been so many people in China! If you have dirty streets, then you will have rats and insects, infections. Therefore street sweeper job is very important. They must do a good job to stop potential epidemics! In imperial China, streets sweeper were already there? I think so.
There was already a management bonus/ malus and a supervision of the work.

However the bonus/malus management system is also a inheritance from communist China. You had supervisor at work, at home and as you would need to write report and get a good notation. You had also supervisor sent by Beijing check local leaders. But this was also the cas in imperial China. They would write report and follow a set of rules: bonus/ malus.

In some future article, I will tell you more about this management system as some of the top Chinese companies still work this way.

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