Labor Costs Continue To Boom Or Change The Old Management Mode.

In February 15th, a large number of small and medium-sized enterprises realized rapid expansion in the form of high input and high consumption of capital, equipment, personnel and technology. When the scale was growing rapidly, their management was extensive and wasteful, and the profit margins dropped sharply or even lost.

Liu boss of a shoe factory in Dongguan has been spitting the bitter water. According to the current wage level, the company has been raised at the edge of losses.

What is the root cause of the "dilemma" of small and medium-sized enterprises? The author focuses on factory management consulting for ten years. In fact, SMEs have not only room to raise wages, but also the potential for profit enhancement.

The reason why enterprises face the pressure of survival is the management mode of primitive and extensive enterprises.

Dongguan family

A large number of small and medium-sized enterprises have achieved rapid expansion by means of high input and high consumption of capital, equipment, personnel and technology. When the scale is growing rapidly, their management is extensive and wasteful, and their profit margins are dropping sharply or even losing money.

It is time for small and medium-sized enterprises to "upgrade and upgrade management", and to benefit from management is the only way for enterprises.

How to reduce costs and improve efficiency? The author gives six management methods for the six major problems existing in enterprises, and the core is "control".

Restricted choice method

Many people do not like to do things according to procedures, and how to make them convenient. As a result, they often make mistakes. Enterprises spend a lot of time and energy on rework and error correction, which greatly raises the cost of enterprises.

Arbitrary, extensive and free choice will inevitably lead to mistakes, costs and inefficiencies.

By restricting employees to do things according to regulations, they are controlled by randomness and extensiveness.

Lateral control method

In view of "relying on leaders to do management, increasing management costs and details out of control", we use horizontal control to establish management and management relationship among departments, positions and processes, so that non leadership managers and operators can manage and mobilize workers' initiative, and liberate leadership, reduce management costs and improve efficiency.

Three factor method

In response to "someone doing things, no one is in charge", three elements control is implemented: criteria (how to do), constraints (who checks) and responsibilities.

That is to say, how to do things must have standards, regulations, inspection, supervision and restriction.

Sectional control method

Now why is the performance appraisal popular in enterprises not effective and formality? The control time is monthly check, and the time unit is too long.

Effective assessment includes not only monthly assessment, weekly assessment, but also daily assessment.

"The day is over, the day is high," and the unit is small and the control is better.

Data flow method

Aiming at the common sense of "making decisions based on feeling and managing by experience", it helps enterprises develop the habit of managing data by data.

A large number of forms and data in enterprises do not work. The most important reason is that people do not like to deal with forms and data.

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The process of establishing enterprise data system and form system is regarded as a process of pformation for managers, especially experienced managers.

Forms circulate, and performance is naturally controlled.

The establishment and effective functioning of the data system create a good foundation for production planning control, cost control and performance appraisal.

Auditing control method

Enterprises do not lack the system and do not lack the process, so they are short of execution.

In view of the drawbacks of enterprises' emphasis on programmes and not on implementation, a auditing mechanism is established.

Audit control method is a very effective way to enhance the executive ability of enterprises.

The so-called audit is repeated inspection.

Enterprises should set up a special audit department, not only to carry out the inspection of the process, system and conference resolutions, but also to check the production tasks in days.

Zhang Ruimin, a management guru, said: "management is a stupid skill. There is no way to do it once and for all. Only by repeatedly grasping and grasping repeatedly, can we not slide down and go up.

Practice has proved that auditing is not only an effective way to rapidly enhance the executive ability of enterprises, but also a magic weapon for training employees to "do things according to regulations" and train professional employees.

The author's research has proved that the above six methods enable enterprises to increase their per capita output value by 2-3 times under the condition of constant personnel and equipment, and the profit margin has increased from 3% to 20%.

Facts have once again proved that SMEs have great potential and benefits can be controlled.

Now why is the performance appraisal popular in enterprises not effective and formality? The control time is monthly check, and the time unit is too long.

Effective assessment includes not only monthly assessment, weekly assessment, but also daily assessment.