Novel Training for Employees

Two men met in a cafeteria. They discussed among other things the prevailing salary structure and perquisites in some organizations in the vicinity. The conversation is recorded below.

Alex: Globalization has brought many changes. It has introduced modernization everywhere. The latest impact is in the salary structure and compensation package. They give liberal salary, performance bonus, fringe benefits, gifts and stock options. The quantum is also very substantial .This is the reason why some persons in their early twenties own BMWs, posh villas and portable mistresses.

Arthur: I also noted these developments. But there is one organization where a totally different compensation practice prevails. It is innovative.

Alex: What is it?

Arthur: The Company faced cash crunch. They devised a scheme by which each employee is given a package of goods produced by the company in lieu of salary. The employees are told to sell them and keep the sales proceeds.

Alex: Why does the Board think of such crude methods?

Arthur: No. No. They consider it as innovative. According to them it is designed to build core competence. By selling the products the employee develops marketing ability. Each employee will feel the pulse of the market while selling and ultimately become an efficient marketing manager.

Alex: But that gives evidence of core incompetence too!