Re:There’s no such thing as “a startup within a big company”
by AtlasBarfed on Friday February 19, 2021 @04:22PM
(#26198197)
UnitedHealthCare is an example of this on steroids.
UHC basically can't show a huge profit. Otherwise they'd be subject to investigations and pilloried for profiting off of the misery that is the US health care system.
But they make money hand over fist, because... it's the US healthcare system, and they have an effective monopoly/dominant cartel position as one of the four pigs at the trough (trial lawyers, doctors, insurance, drug/device companies). So instead of profits, a gigantic management tree has built up, and the managers take all the money.
Then tell their workers they aim for the bottom third of market compensation.
Colleges seem to me the same way: no "profits", but suck in huge amounts of money as the tuition skyrockets. Hmmm, and suddenly a huge administrative/management/MBA apparatus has appeared in higher education? You don't say.
Salary was basically a contract with employees to take steady income and employment (once upon a time ....) while the management layer and stockholders will eat the gravy. Motivation in that contract is strictly around 1) access to management for the "ambitious" and 2) don't get fired for the rest.
Hand in hand in IT with not being able to get things done quickly is that doing things quickly is high risk, and that violates the core motivation of almost everyone in the #2 don't get fired crowd.
UHC basically can't show a huge profit. Otherwise they'd be subject to investigations and pilloried for profiting off of the misery that is the US health care system.
But they make money hand over fist, because... it's the US healthcare system, and they have an effective monopoly/dominant cartel position as one of the four pigs at the trough (trial lawyers, doctors, insurance, drug/device companies). So instead of profits, a gigantic management tree has built up, and the managers take all the money.
Then tell their workers they aim for the bottom third of market compensation.
Colleges seem to me the same way: no "profits", but suck in huge amounts of money as the tuition skyrockets. Hmmm, and suddenly a huge administrative/management/MBA apparatus has appeared in higher education? You don't say.
Salary was basically a contract with employees to take steady income and employment (once upon a time ....) while the management layer and stockholders will eat the gravy. Motivation in that contract is strictly around 1) access to management for the "ambitious" and 2) don't get fired for the rest.
Hand in hand in IT with not being able to get things done quickly is that doing things quickly is high risk, and that violates the core motivation of almost everyone in the #2 don't get fired crowd.
Salaries = risk aversion.