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Lessons in change management

According to Wikipedia, "Change Management is a structured approach to change in individuals, teams, organizations and societies that enables the transition from a current state to a desired future state. Successful change requires the engagement and participation of the people involved. Change Management provides a framework for managing the people side of these changes.

While this concept applies to various affiliations, it is most applicable to employee relations. Under current western business systems, Change Management for the economic health of a company is a matter of instituting a system where employees share the rewards of production in a manner that is proportionate to individual performance.

Employees in western economies can be broadly divided into two categories. The vast majority work solely to earn a living. While many are good, productive employees, their entire purpose for work is to provide for their needs and wants. Consequently, one job is as good as the next and the job they hold is the one that provides the highest level of compensation for the effort they are willing to put forth. For them, if money were no object, they would work at something entirely different or possibly not work at all. In contrast, a minority of employees work for the purpose of doing something they love or something they strongly believe in without regard to the standard of living provided by that work.

Both categories of worker are necessary for any successful business venture. Generally, the best leaders come from the second category as these tend to willingly align themselves with the goals of the organization and therefore direct their subordinates in a manner that most efficiently achieves those goals. However, it is the subordinate employees that ultimately produce the product or service for which the organization was formed. Therefore, the secret to efficient production is to structure a system that rewards individual performance and helps workers understand that their own maximum compensation will be achieved when their employer is most profitable due to the efforts of his employees. Because the employer's success is contingent on the efficiency of those employees, it is to his benefit to encourage their efficiency by making compensation directly proportionate to individual performance.

Throughout the recent history of western economies, employee compensation has been governed by multiple parameters, most of which were unrelated to


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