Ten Laws Of Enterprise Management

In business management, and even in daily life, there are some things we must not know.

Peter principle

Each organization is made up of different positions, ranks or classes, each of which belongs to a certain level.

Peter's principle is a conclusion drawn by American scholar Laurence Peter after studying the related phenomena of personnel promotion in organizations.

In all kinds of organizations, employees always tend to be promoted to some incompetent position.

Peter's principle is sometimes called "climbing up".

This phenomenon is everywhere in real life: a qualified professor is not competent after being promoted to a university president; an excellent athlete has been promoted to be an official in charge of sports, but has nothing to do.

For an organization, once a large number of people are pushed to its incompetent level, it will result in overstaffing and inefficiency of the organization, resulting in mediocrity getting out of the way and stagnation of development.

Therefore, this requires a change in the pure "employee based on contribution and promotion".

Law of wine and sewage

The law of wine and sewage is to pour a spoonful of wine into a bucket of sewage and get a bucket of sewage. If we pour a spoonful of sewage into a bucket of wine, we will get a bucket of sewage.

In any organization, there are almost a few difficult characters. The purpose of their existence seems to be to mess up things.

Worst of all, they are like rotten apples in the box. If they are not handled in time, they will quickly infect and destroy other apples in the fruit box.

The terrible thing about rotten apples lies in its amazing destructive power.

An honest and able person can be engulfed in a chaotic department, and a virtuous person can quickly turn an efficient department into a loose sand.

Organizational systems are often fragile, based on mutual understanding, compromise and tolerance, and are easily violated and poisoned.

Another important reason for the extraordinary ability of saboteurs is that destruction is always easier than construction.

A skilled craftsman spends much time elaborately crafted ceramics, and a donkey can be destroyed in one second.

If there is such a donkey in an organization, even if there are more skilled craftsmen, there will not be much decent work done.

If you have such a donkey in your organization, you should remove it immediately; if you can't do it, you should put it in.

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Bucket law

The law of the bucket is about how much water a bucket can hold. It depends entirely on its shortest piece of wood.

That is to say, any organization may face a common problem, that is to say, every part of the organization is often uneven, and the inferior part often decides the whole.

The "bucket law" is different from the law of wine and sewage. The latter discusses the destructive power of the organization. "The shortest plank" is a useful part of the organization, but it is worse than the others. You can't throw them away as rotten apples.

Strength and weakness are relative, and cannot be eliminated. The problem is how much you tolerate this weakness. If it is serious enough to become a bottleneck in your work, you will have to act.

The Matthew effect

In the New Testament Matthew, there is such a story: before a king goes on a long journey, he gives 3 servants a silver coin, and orders, "you go to business, and when you come back, see me again."

When the king came back, the first servant said, "master, you gave me a piece of silver, and I made 10 yuan."

So the king rewarded 10 cities.

The second servant reported, "master, I have earned 5 yuan for a piece of silver you gave me."

So the king rewarded 5 cities.

The third servant reported, "master, you have given me 1 pieces of silver, I have been wrapped in my towel, for fear of losing, and never bring them out."

So the king ordered the 1 servants of the third servants to give the first servant to the first servant and said, "whoever is less, he will take all he has."

Give him more and give him more. "

This is the Matthew effect, which reflects a common phenomenon in today's society, that is, winner takes all.

For the development of enterprises, Matthew effect tells us that if we want to maintain an advantage in a certain field, we must expand rapidly in this field.

When you become a leader in a particular field, even if the investment reporting rate is the same, you will be able to gain more benefits than your weaker peers.

If we do not have the strength to expand rapidly in a certain field, we must keep looking for new areas of development so as to achieve better returns.

Zero sum game principle

Zero sum game is a game where players lose and win. One side wins, the other loses. The total score of the game is always zero. The principle of zero sum game is widely concerned. It is mainly because people can find "zero sum game" in every aspect of society. The glory of winners is often hidden behind the glory and bitterness of losers.

In twentieth Century, mankind experienced two world wars, rapid economic growth, scientific and technological progress, global integration and increasingly serious environmental pollution. The concept of "zero sum game" was gradually replaced by the concept of "win-win".

People began to realize that "egoism" is not necessarily based on "harm".

Through effective cooperation, a happy situation is possible.

But from "zero sum game" to "win win", it requires all sides to have the spirit of sincere cooperation and courage. Do not play smart tricks in cooperation, do not always want to occupy other people's petty advantages, abide by the rules of the game, otherwise, the "win-win" situation will not be possible, and ultimately the losers are the partners themselves.

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Washington cooperation law

The law of cooperation in Washington says: one person is perfunctory, two people encourage each other, and three people will never accomplish anything.

Somewhat similar to our "three monks" story.

Cooperation between people is not a simple addition to manpower, but rather more complicated and subtle.

In this cooperation, assuming that each person's ability is 1, then the cooperation between 10 people is sometimes much more than 10 times, sometimes even smaller than 1.

Because human beings are not static things, but more like the energy of different directions, and mutually promoted, naturally achieve twice the result with half the effort.

In our traditional management theory, there is not much research on cooperation. The most direct reflection is that most of the current management systems and behaviors are devoted to reducing unnecessary consumption of manpower, rather than using organizations to improve human efficiency.

In other words, the main purpose of management is not to make everyone do the best, but to avoid excessive internal consumption.

Watch law

The law of watches is that when a person has a watch, he can know what time it is. When he has two watches at the same time, he can not be sure.

Two watches can not tell a person more accurate time, but will make the watch lose confidence in the right time.

The theorem of watches gives us a very intuitive inspiration in the management of enterprises, that is, the management of the same person or an organization can not adopt two different methods at the same time, and can not set two different goals at the same time. Even everyone can not be commanded by two people at the same time. Otherwise, the enterprise or the person will not know what to do.

Another meaning of the watch theorem is that no one can choose two different values at the same time, otherwise your behavior will be in chaos.

Unworthy law

It is not worth the law that the most intuitive expression is: what is not worth doing is not worth doing well.

This law seems to be simpler, but the importance is neglected.

It is not worth the law to reflect people's psychology. If a person is engaged in something he thinks is not worth doing, he will often cynicism and perfunctory attitude, not only the success rate is low, but even if he succeeds, he will not feel much achievement.

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Therefore, for individuals, one should choose among a variety of alternative goals and values, and then strive for it.

"Choose what you love and love what you choose, which will stimulate our morale and our peace of mind."

For an enterprise or organization, it is necessary to analyze the character characteristics of employees and assign jobs reasonably. For example, those who have strong desire to work independently or take the lead in completing work with certain risks and difficulties, and give timely recognition and praise when they are finished, so that employees with strong attachment will participate more in the work of a group.

At the same time, we should strengthen the sense of employee's recognition of the enterprise goal, and let the employees feel that their work is worthwhile, so as to arouse the enthusiasm of the staff.

Mushroom management

Mushroom management is a management method for many organizations to treat beginners. Beginners are placed in a dark corner (an unimportant department, or a work of errands and errands).

I believe that many people have experienced such a "mushroom" experience. This is not necessarily a bad thing. Especially when everything is just beginning, when a few days, "mushrooms" can eliminate many of our unrealistic fantasies, let us get closer to reality and see the problem more closely.

An organization generally treats the new employees equally, and there is no big difference from starting salary to work.

No matter how talented you are, at the very beginning, you can only start with the simplest things. The experience of mushrooms is like cocoons for growing young people, a step that must be experienced before the emergence.

Therefore, how to effectively walk through this section of life, learn from it as much as possible, mature and set up a good and reliable personal image is a topic that every young person who has just entered the society must face.

Occam's razor law

In twelfth Century, William, Occam of England, advocated the theory of name only. He only admitted what existed. He thought that the universal concept of empty objects was useless and unnecessary, and should be ruthlessly shaved.

He advocated that "if not necessary, do not increase entities".

This is what we often call "Occam razor".

This razor once threatened many people and was considered heresy. William himself was thus persecuted.

However, it has not damaged the sharpness of this knife. On the contrary, after hundreds of years, Occam's razor has been sharpened by history and has already surpassed the narrow field, and has extensive, rich and profound significance.

Occam's razor law can further evolve into simple and complex laws in business management: to make things complicated and simple, to make things simple and complicated.

This law requires that when we deal with things, we must grasp the main substance of the matter, grasp the mainstream, solve the most fundamental problems, especially let it be natural, do not mix the lover and the land, so that we can handle the matter well.