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Fire-hit Davao BPO wants to reopen in 2 months

DAVAO CITY — Suspending the company whose 37 employees died in a fire just two days before Christmas here will result in about P97 million in lost salaries in the information technology-business process management industry, an industry association official said.

“That is why we have to find a way to enable SSI to resume operations,” said lawyer Samuel R. Matunog, president of the Information and Communication Technology Davao, on Monday in reference to the company’s impending suspension of operations.

The Philippine Economic Zone Authority announced it was suspending the company after 37 of its employees died following the fire that razed the NCCC Mall on Dec. 23.

Mr. Matunog said his association is urging the government to lift the suspension order as the company, which started its operations in the city in 2008 as a market researcher using telephone interview services, has started looking for a new location for its operations so that its 500 employees could resume their jobs.

The company said it is planning to resume operations within the next two months in another site in the city.

The company announced that even with the employees not at work, they continue to receive their salaries. It is also “exploring (other) avenues to provide them with employment.”

It added that it has continued to “reimburse employees for personal effects that were destroyed in the fire. Additionally, Research Now SSI is [providing counseling for employees and victims’ families.”

As assistance to the victims’ families, it said it has raised about $115,000 in funds.

A Davao City councilor has proposed that companies use photo luminescent paints in hallways and fire exits as to help employees leave burning buildings.

Councilor Maria Belen S. Acosta, head of the public safety committee of city council, said in other countries glow-in-the-dark paint is in use “to guide persons to emergency exits and other possible means of egress especially when the power goes out.” — Carmelito Q. Francisco

Trump’s ‘madman’ rhetoric may have scared North Korea to talks — analysts

SEOUL — US President Donald J. Trump’s notoriously threatening rhetoric towards nuclear-armed North Korea — which has drawn comparisons with Richard Nixon’s “madman theory” of diplomacy — may deserve some credit for bringing Pyongyang to talks, analysts have said.

The two Koreas held their first official dialogue in more than two years this week, agreeing the North would send its athletes to next month’s Winter Olympics in the South and paving the way for further discussions.

The meeting represented a significant improvement after months of confrontation, during which Pyongyang carried out multiple missile tests and by far its biggest nuclear detonation to date.

At the same time Mr. Trump was blamed for heightening tensions with his threats to rain “fire and fury” on the North — now the title of an incendiary book on his presidency — and assertions that its leader Kim Jong-Un was on a “suicide mission.”

Since Mr. Kim inherited power in 2011, North Korea has made rapid progress towards its goal of developing a missile that can deliver an atomic warhead to the United States, which significantly strengthens its negotiating position.

In his New Year speech Mr. Kim said Pyongyang had accomplished “the great, historic cause of perfecting the national nuclear forces.”

But some analysts now say that despite the hermit state’s achievements and the defiance of its propaganda, Mr. Trump’s chest-thumping threats provoked real fears within the North’s elites, pushing them to seek ways to dial down tension.

Alexander Vorontsov, head of the Institute of Oriental Studies of the Russian Academy of Sciences, was in Pyongyang for meetings towards the end of last year.

While there, he spoke to officials who “feared that the US was already trying to shape the battlefield for a military operation against the North,” he wrote Wednesday on the website 38North.

They seemed “truly baffled” that the South was unaware Mr. Trump was inching closer to war, Mr. Vorontsov said, while “Pyongyang, they maintained, is under no such illusions.”

Trump administration officials have repeatedly said that military action is an option on the table. Washington has held several joint exercises with allies South Korea and Japan this year, and deployed three aircraft carriers to the area at the same time.

There was “growing concern” in Pyongyang, Mr. Vorontsov said, that “different elements of a combined arms operation against North Korea are being methodically rehearsed and that ‘zero hour,’ as they put it, is not too far away.”

‘PROFESSIONAL WRESTLING MATCH’
The unpredictable US president is believed by some to be employing the playbook of his predecessor Richard Nixon, whose “madman theory” aimed to scare opponents into concessions by cultivating an image of recklessness.

It was Mr. Nixon himself who coined the term, according to his chief of staff H.R. Haldeman, whose autobiography quotes the disgraced president describing his intended message as: “We can’t restrain him when he is angry — and he has his hand on the nuclear button.”

At times, Mr. Trump has appeared to echo the approach wholeheartedly.

As his top diplomat sought an opening with Pyongyang in October, the president tweeted: “I told Rex Tillerson, our wonderful Secretary of State, that he is wasting his time trying to negotiate with Little Rocket Man” — his nickname for Kim.

“Save your energy Rex, we’ll do what needs to be done!” he added.

At the UN General Assembly he raised the prospect the US would “totally destroy” North Korea, prompting Mr. Kim to respond with a personal pledge to “surely and definitely tame the mentally deranged US dotard with fire.”

“Never before have two leaders in command of nuclear arsenals more closely evoked a professional wrestling match,” wrote a New Yorker columnist at the time.

Go Myong-Hyun, an analyst at the Asan Institute of Policy Studies, said US actions had “instilled considerable fear in Pyongyang unlike in South Korea.”

“So they came to talks to secure strategic space,” he said.

North Korea’s refusal to expand the agenda of Tuesday’s talks was intended to draw out the process “to avoid possible US military action,” Mr. Go added.

Despite a handful of agreements reached Tuesday, the North Korean delegation did not respond to Seoul’s proposal for talks on family reunions, and said its nuclear and missile programs — which it says it needs to defend itself — were not up for discussion with the South.

South Korean President Moon Jae-In on Wednesday thanked Mr. Trump for his efforts, saying he had played a “very big” role in realizing the talks.

But former US secretary of state John Kerry has described Mr. Trump’s tweets as creating “chaos politics” and many analysts say that in the long term, the US leader’s approach will be counterproductive.

The president had been “talking to the world’s most dangerous state like a petulant man-child,” Robert Kelly of Pusan National University wrote at the weekend.

“Honestly, Trump just made everything worse, and his rhetoric almost certainly convinced the Kimist elite that going for nukes was wise.”

The 45th president of the United States, though, has no doubts where credit lies for getting the two Koreas together.

“We were the ones,” he told a cabinet meeting Wednesday. “Without our attitude, that would have never happened.” — AFP

LandBank deal to acquire Postbank cleared by regulator

THE Philippine Competition Commission (PCC) approved the acquisition by Land Bank of the Philippines of Philippine Postal Savings Bank, with the latter intended to serve as the domestic network of the Overseas Filipino Bank.

“PCC has approved the acquisition by Land Bank of the Philippines (LandBank) of Philippine Postal Savings Bank (PostBank),” PCC Chairman Arsenio M. Balisacan said in a social media post on Thursday.

PostBank will act as the remittance marketing arm for the Overseas Filipino Bank — the creation of which was a campaign promise of President Rodrigo R. Duterte.

In September, Mr. Duterte authorized the acquisition through Executive Order No. 44.

Finance Secretary Carlos G. Dominguez III told reporters on Thursday that the new bank will be launched on Jan. 18.

He has said that the takeover will require about a P1 billion capital infusion.

LandBank President and Chief Executive Officer Alex V. Buenaventura said the new bank is scheduled to conduct pilot operations in Dubai.

Mr. Buenaventura has said that the Overseas Filipino Bank’s authorized capital is P1 billion, with P300 million classified as preferred capital open to overseas Filipinos to invest in, and P700 million in paid-up common shares. — Elijah Joseph C. Tubayan

Getting the message across

“Signaling” has become a new management watchword. It means consistency with a brand image or a value system by being ever mindful of unintended messages. These signals include official statements, types of sponsored events, hiring, and even office attire.

Communication can be indirect. What is not said is as important as what is. Spokesmen explaining what goodwill from an intruder means (there will be no new incursions) is signaling that the status quo of the already occupied and built-on areas are just fine — is that clear?

Leaders (whose behavior consumes us) can signal preferred directions, even by expressing contrary thoughts. The talent of “reading between the lines” is prized in a subordinate. The public pronouncements of transparency and integrity need to be outwardly practiced. And yet, certain decisions need to be made which require some bending of the rules. A leader would rather delegate this downwards, but not too explicitly.

Reading between the lines and deciphering the meaning of blank spaces separating words require a subtle reading of signals. The trick of actually seeming to contradict the boss in an independent move but actually furthering his hidden agenda is a delicate undertaking. Isn’t a subordinate who truly understands what the boss wants someone to be prized?

When a CEO receives an unsolicited proposal, say involving a relative in a transaction to provide services to a non-family corporation, he will publicly instruct the subordinate in charge of the bid process to avoid the accusation of nepotism and instead independently decide on the strict merits of the case. (I’ve not made any commitments to my relatives on this bid.) This overly emphasized pronouncement provides a clue for the faithful vassal to connect the dots. The decision is packaged as an independent judgment against the boss’s explicit (but disregarded) orders not to favor a relative. She is not really related by blood, but merely a town mate. And although she does not offer the lowest cost, she dresses well, and is very persuasive.

CEOs, no matter how loudly they profess welcoming criticism, independent thinking, and vigorous dissent even in meetings, can privately admit to a close circle of intimates (including the one serving coffee) that the personality fitting this description really pisses him off. (I get a headache when he talks to me.) Such a signal reaches the corporate hit man who takes his cue and proceeds to implement the unordered but devoutly wished outcome. Soon, the fall of the pain-in-the-ass is greeted a little sadly by the boss — it’s too bad that we are now deprived of such an independent point of view. But it’s surely a lot quieter in the office — can I have more coffee?

Still, history records the possibility of mixed signals. The 12th Century tale of Thomas Beckett and his king, Henry II is the classic case of vassals trying too hard to please their master. A close friend of Henry, Beckett was first appointed Chancellor and then, even not a priest, Archbishop of Canterbury. In many cases of conflict with the King, including whether clerics should be tried in ecclesiastical or civil courts and the excommunication of supporters, Henry despaired of the independence of his friend and appointee. Offhandedly, he declared, “Will no one rid me of this troublesome priest?” Seeming to have been given the signal, some nobles kill Beckett in his own cathedral. Henry is remorseful at this turn of events and makes a pilgrimage to Rome to beg forgiveness from the Pope himself. Beckett was later canonized as a martyr and became the symbol of religious resistance to worldly power.

It is the fate of overeager subordinates who on their own implement an unexpressed order (maybe even a contrary one) to deal with the consequences. In case their action turns sour, the next victim could be the over-eager interpreter of messages from above.

What refuge is there for the subordinate who seems to go against the publicly expressed wishes of his boss? The defense that one has unfortunately misread the signals is the fate of a bumbler who has to justify actions that seem to have been independently taken on behalf of the boss.

Getting the message across should be straightforward. Unfortunately, what the boss says publicly is not always what he really believes. But telling the difference between pronouncements and real wishes can be a hazardous undertaking… but not for the misunderstood boss.

 

A. R. Samson is chair and CEO of Touch DDB.

ar.samson@yahoo.com

Brain drain hits PHL but ‘relatively attractive’ to expats — IMD

THE PHILIPPINES is in a tier of countries affected by brain drain but remains somewhat attractive to expatriate workers, international business school IMD said, citing the results of a study.

It said the worst cases of brain drain are to be found in Croatia, Greece, Bulgaria and Brazil.

In the same tier as the Philippines are Mexico, China and India, which IMD characterized as having “somewhat high levels of brain drain but… able to remain relatively attractive to expat professionals.”

The top tiers consist of Norway, the Netherlands, Canada and Singapore in one group, and Iceland, Finland and the Czech Republic, where brain drain is low while attractiveness to expatriates is high.

The study, conducted by IMD professors Shlomo Ben-Hur and Arturo Bris with Jose Caballero, found that the key drivers for countries enjoying talent advantages include legislation that promotes scientific research, liberal immigration laws, and political stability.

It also cited the agility and adaptability of companies to market changes, and the inclusiveness of their cultures, which makes them attractive to foreign talent.

The quality of a country’s education system, health care system, and pay levels were also cited as factors.

Your Weekend Guide (January 12, 2018)

Comedy nights

IT will be a night of laughs as Teatrino and Comedy Manila present Funny Fridays: Can’t Stop Laughing on Jan. 12, 8:30 p.m., at the Teatrino, Greenhills Promenade, San Juan. Tickets are at P500. Tickets are available at TicketWorld (www.ticketworld.com.ph, 891-9999) or Teatrino (722-8310 local 116 or 721-2949).

Cynthia Alexander album release

SOS Movement and Organisasyon ng Pilipinong Mang-aawit (OPM) present Cynthia Alexander in a concert to launch the release of her new album, Even Such is Time, Jan. 13, 7 p.m., at the Music Museum, Greenhills Shopping Center, San Juan City. She will be joined onstage by her guest Ben & Ben. Aside from CDs, the singer has made Even Such is Time available for digital download through bandcamp. All proceeds from the download go into a work fund which will cover the cost of future recordings. Tickets are available at TicketWorld (www.ticketworld.com.ph, 891-9999). For more information, contact the Music Museum at (721-6726).

SINGER Cynthia Alexander — CYNTHIA ALEXANDER’S FACEBOOK/PHOTO BY PAUL JAVIER

The Art of Medicine

TO mark its 50th anniversary and held in partnership with the UP College of Medicine Class 1995, The Saturday Group of Artists presents the opening preview of The Art of Medicine on Jan. 13, 6 p.m. at the Saturday Group of Artists Gallery, 4th Level, Edsa Shangri-La Mall East Wing. For ticket inquiries, contact Honey (0922-414-8585) or Carla (0927-864-1111). Tickets will also be available at the gallery.

Films set in cities

A SCENE from Stalker

THE Museum of Contemporary Art and Design (MCAD) at De La Salle-College of Saint Benilde (DLS-CSB) will be screening features and a documentary that focus on the cities as an integral part of the narrative. To be shown on Jan. 12 and 14 is Andrei Tarkovsky’s award-winning Stalker. Dubbed as one of the best films of the latter half of the 20th century, it is based on the novella Roadside Picnic by Boris and Arkady Strugatsky. It follows two men escorted by their guide, the Stalker, into The Zone, a highly guarded post-apocalyptic wasteland, in search of the mythical space The Room, which fulfills a person’s innermost desires. To be shown on Jan. 17, 19 and 21 is Gary Hustwit’s documentary Urbanized which discusses how cities are designed, and features some of the world’s foremost thinkers, policy makers, planners, architects, and builders. Francesco Rosi’s landmark movie on political corruption in post-war Italy, Hands Over the City, will be presented on Jan. 24, 26 and 28. The film won the Golden Lion Award at the 1963 Venice Film Festival. All screenings will be held at the MCAD Multimedia Room, with two showings on Wednesdays and Fridays, at noon and 3 p.m., and at noon on Sundays, and are free and open to the public. MCAD is located at the School of Design and Arts Campus, Pablo Ocampo Ave., Malate, Manila. For inquiries, e-mail mcad@benilde.edu.ph or call 230-5100 local 3897.

 

Equities decline as market corrects after climb

LOCAL EQUITIES dropped on Thursday along with regional markets due to rising global bond yields.

The bellwether Philippine Stock Exchange index (PSEi) gave up 1.2% or 107.04 points to finish at 8,813.25 on Thursday.

The broader all-shares index reflected this performance as it finished with a 0.83% decline or 42.76 points to 5,101.41.

“Market corrected today (Thursday). This was precipitated by the increase in international bond yields…which are rising because most markets are normalizing, they’re reducing the stimulus placed on the market,” Diversified Securities, Inc. equities trader Aniceto K. Pangan said in a phone interview yesterday.

Regina Capital Development Corp. Managing Director Luis A. Limlingan noted an accelerated rise in the yield of 10-year US treasury notes. German yields were also reported to be the highest since end-October.

“Treasuries had a bumpy ride which saw yields tick up to 2.59% before retreating back to 2.55% level,” Mr. Limlingan said.

Due to the rise in yields, the Dow Jones Industrial Average closed flat with a decrease of 0.07% or 16.67 points to 25,369.13. The S&P 500 index closed 0.11% or 3.06 points lower to 2,748.23, while the Nasdaq Composite index slipped 0.14% or 10.01 points to 7,153.57. 

Nevertheless, Diversified Securities’ Mr. Pangan noted that yesterday’s decrease is a healthy correction for the PSEi.

“We have already gained more than 5%, so it’s just rational that investors will go on profit taking. The correction is a healthy correction considering how fast the market appreciated,” he said.

The mining and oil sector was the lone sub-index that ended in positive territory, rising 0.28% or 34.19 points to 11,897.71. The rest of the counters ended in the red, with most losing more than 1% from the previous trading day. Property dropped 1.89% or 77.54 points to 4,005.12; holding firms went down 1.16% or 106.29 points to 8,989.44; and services shed 1.04% or 17.09 points to 1,618.95.

Industrials also slipped by 0.98% or 115.19 points to 11,575.95, while financials were down 0.14% or 3.25 points to 2,317.47.

A total of 919.10 million issues switched hands on Thursday. Total value turnover was at P7.74 billion, higher than Wednesday’s P6.53 billion.

Losers outpaced advancers, 120 to 88, while 54 names closed flat.

Foreign investors snapped a four-day buying streak as the market recorded a net foreign outflow of P878.96 million yesterday, against inflows of P626.45 million on Wednesday.

Most Southeast Asian stock markets also dropped on Thursday, tracking Asia and Wall Street overnight which snapped a six-day rally on investor concerns that China, the world’s biggest holder of US Treasuries, might slow or halt its bond buying.

Benchmark 10-year Treasury yields jumped to a 10-month high.

Asia shares ex-Japan were down 0.50% as of 0400 GMT. — Arra B. Francia with Reuters

SEC sets new rules for the registration of investment companies

THE Securities and Exchange Commission (SEC) has set new rules for the registration of investment companies that would keep the Philippines at pace with global standards. 

The country’s corporate regulator published on Thursday the implementing rules and regulations (IRR) of Republic Act No. 2629, also known as the Investment Company Act (ICA). The IRR amends ICA Rule 35-1 initially published in 1998. 

Investment companies applying for registration are required to include the word “fund” in their corporate name, with the primary purpose stating that they will “engage in the business of investing, reinvesting, or trading in securities or other investment assets.”

The rules require investment firms to have a minimum subscribed and paid-up capital of P50 million. The SEC will allow for a lower paid-up capital of at least P1 million if the firm applying for registration is part of a group of companies already being managed by the same fund manager who has a track record of at least five years. 

To provide accountability and transparency, firms offering their securities will be required to submit a registration statement which the commission has the right to reject should it contain false or misleading information or found to have defrauded investors. 

A prospectus will likewise be made available to the investing public through a fund distributor. In the prospectus, the company will discuss the use of proceeds of the issuance, profile of prospective investors, its business experience for the last five years, and risk management procedures, among others.

An investment company is allowed to make use of the SEC’s shelf registration program, where it can issue funds in one or more tranches based on a single registration statement, so long as the company informs the commission of any material changes at least 30 days prior to the offering or sale of securities.

The SEC also set a “fit and proper rule” for fund managers, which assesses the latter’s top officials based on their honesty, fairness, and integrity; diligence, competency, and capability; and financial soundness. Fund managers must also have an investment company adviser license.

The fund manager also has the responsibility to submit reportorial requirements on behalf of the investment firm.

“The fund manager shall submit to the commission a monthly issuance and redemption report of shares or units under oath executed on its behalf by its treasurer or any other officer holding an equivalent position,” according to the IRR.

An independent custodian would have to be appointed by the investment firm, which will hold all proceeds from the sale of securities. Independent custodians should be a universal or commercial bank with trust license, a non-bank entity with trust license, a custodian bank accredited by the Bangko Sentral ng Pilipinas, or a registered securities depository.

Meanwhile, the initial minimum investment and additional investment made by investors will be determined by the company as stated in its prospectus.

“Unless otherwise provided in the prospectus and approved by the commission, the shares of units sold by the investment company shall be on a cash basis. Installment sales are prohibited,” read the IRR.

The new rules will take effect on Jan. 26. — Arra B. Francia

Two DENR officials relieved

ENVIRONMENT SECRETARY Roy A. Cimatu has relieved two officials in connection with illegal logging. While the two officials were not named, Mr. Cimatu said in a statement he will not hesitate to bring charges against any employee or official of the Department of Environment and Natural Resources (DENR) who will abet such illegal activities, especially in the light of Typhoon Vinta unleashing flash floods in Zamboanga del Norte which led to 59 deaths last December. Mr. Cimatu conducted an aerial inspection in Zamboanga del Norte on Thursday to observe the damage blamed on logging operations that had allegedly violated the Integrated Forest Management Agreement (IFMA). According to this agreement between the DENR and private firms, companies can harvest lumber except from residual trees in exchange for the establishment and development of industrial tree plantations. Following this, Region 9 officers had undergone a ‘reorganization” of officials. Mr. Cimatu has also ordered a review of 104 IFMAs to check on violators and suspended the operations of Dacon Group of Companies’ South Davao Development Co., Inc. and Sirawai Plywood & Lumber Corp in Sibuco. DENR data showed that there are 51 IFMAs in Mindanao, 10 of which are in Region 9. — Anna Gabriela A. Mogato

Clippers stun Warriors

From the outside looking in, you think the Warriors would win running away. It doesn’t matter that Stephen Curry will be in street clothes after having tweaked his right ankle during shootaround. After all, the defending champions are slated to ply their trade at the Oracle Arena, where they are a heady 16 and six. In addition, they’ll be welcoming Kevin Durant back from a three-game absence due to a strained right calf even as the Clippers, as handicapped as an 18-and-21 slate suggests, won’t have top dog Blake Griffin to lean on.

Fast forward three hours, and conventional wisdom finds itself on the wrong end of a supposedly sure thing. The Clippers not only bucked their hitherto poor showing away from the Staples Center; they actually earned their second straight win on the strength of an outstanding second half. Sure, the O was rocking, especially with Kevin Durant going for 40 on an ultra-efficient 14-of-18 clip from the field, including a six-of-seven mark from three-point territory. On the other hand, they were nowhere near their usual sharp selves on defense, as good an indication as any that they missed Klay Thompson, who also sat out the match.

Still, credit goes to the Clippers, who kept pace with the Warriors from the get-go and then shifted to higher gear after the break. When the battlesmoke cleared, they presided over a shellacking that had them sporting a .495 shooting percentage overall en route to 125 big points. And for their first win over the Dubs in three years, they have Lou Williams to thank the most; he put up a career-high 50, a whopping 27 in the third quarter, when the Clippers began to blow open what looked to be a close encounter.

If nothing else, the shocker proves that anything — absolutely anything — can happen in the National Basketball Association. In a battle of crosstown rivals, the extreme underdog prevailed. The Clippers don’t have a lot to be thankful for this season, but the triumph over the Warriors still counts as a step in the right direction.

 

Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994. He is the Senior Vice-President and General Manager of Basic Energy Corp.

When should you recognize workers?

We’re planning to improve our employee reward and recognition program. Our current system provides a formal ceremony which is done monthly, quarterly, and yearly. Aside from this, is there any other appropriate time to give due recognition to people? Please help. — Other Options.

This poor fellow has a bad habit of coming home drunk. He had gone so far that he would fall into bed fully clothed, pass out, and then snore loudly all night long. Finally, his wife who was losing so much sleep because of his snoring that she went out to consult a doctor. She said: “Doc, I can’t take it any longer. If you’ll only tell me how to keep my husband from snoring, I’ll pay you anything.”

The doctor said there was no problem at all. He could give her the answer and he wouldn’t even charge her. He told her that whenever her husband passed out and started to snore she was to take a ribbon and tie it around his nose, and his snoring would stop. That night, her husband came home drunk as usual, fell across the bed fully dressed, passed out, and started snoring.

The wife got up, pulled a blue ribbon from her dresser, and tied it around his husband’s nose. Sure enough, the snoring stopped. The next morning, the wife, fully refreshed after a good night’s sleep, was preparing breakfast and asked her husband who just got out of bed.

“Honey, where were you last night?” The husband still fully clothed with yesterday’s shirt and pants, looked in the mirror and seeing the blue ribbon around his nose, replied: “I don’t know. But wherever I was, I must have won first prize!”

It seems that everyone in the corporate world is so drunk talking about employee recognition that people are inquiring about my public seminar on noncash employee rewards this month. Whatever the reason, they know the importance of employee rewards and recognition that they’re looking to understand new ideas and strategies.

Monthly, quarterly, and yearly reward intervals seem like common sense. Doing it more (say, weekly awards) may not look significant to the employees after some time. If we are to continue examining the frequency of employee awards, then it can only be classified into two — ratio and interval:

Ratio has two components that include “variable ratio” when the award is to be done at random so that employees do not know when it is to be given. On the other hand, there’s such a thing as “fixed ratio” when the award is to be awarded at a certain nth milestone. For instance, a factory worker gets a cash bonus of one thousand pesos for every 500 zero-defect products that he made.

Interval awards have two components. This includes a “variable interval” when the reward is given at a random average length of time since the last award. For example, giving an award after every few days. The other component is called “fixed interval” or the giving of awards after a fixed period of time, which is happening in your case — monthly, quarterly, and yearly.

This means you only have to consider varying your approach to include say, a “fixed ratio.” You can give awards not only to individual workers but to teams and departments as well if they have accomplished a certain target like having one thousand working days without an accident in a factory. In the service industry, which includes banking and call centers, you can vary this approach by giving awards to those concerned if they reach 40 work hours without a customer complaint.

Given all of these options, what is the most effective type of employee award? Personally, the best type that I know is often unrestricted by formality of ratio and frequency. It is best that we do it casually and informally with concerned workers who have displayed consistent work performance. Why wait for monthly, quarterly, and yearly awards to happen when you can do it right away, in front of people attending a department meeting, for instance?

This is challenging if only people managers have that positive mind-set of actively catching people doing something right, instead of being fault-finders. Immediate recognition, done spontaneously, is much better than delayed gratification. However, this requires a personalized approach by people managers that must be made independent from corporate-wide practice.

Why should this be so? In the first place, you don’t need a formal system from the human resource department to write a short, crisp, specific and clearly worded commendation letter to a person who worked hard over and above the standard requirements. And you don’t even have to wait for the annual performance appraisal to document it. Whatever approach it takes, like taking a person to lunch or giving him a best-selling book is more than appreciated by people.

In doing this, you have to personally know the worker, his interests, hobbies, career aspirations, and other personal details like his birthday, home address, number of children, and name of spouse, among others. If you don’t know these basic details, then it may be difficult for you to motivate people, even in the presence of formal awards where material things are given.

ELBONOMICS: It’s better to suffer in silence if everyone knows about it.

 

elbonomics@gmail.com

Search widens as California mudslide toll hits 17

MONTECITO — Rescuers used dogs and helicopters to search for victims on Wednesday of powerful mudslides which left at least 17 people dead in a southern California community that is also home to major celebrities including Oprah Winfrey.

Heavy rains on Tuesday sent rivers of waist-high mud and debris flowing from the hills into Montecito and other towns in Santa Barbara County northwest of Los Angeles, which are still recovering from last month’s ferocious wildfires.

“We are saddened to report that the death toll has now risen to 17,” Santa Barbara County Sheriff Bill Brown told reporters, saying it had been “another extremely challenging day.”

At least 28 people were injured, authorities said, while 30,000 remained subject to mandatory evacuation orders.

The US Coast Guard released footage of a couple, their two young children and two dogs being plucked from their roof and hoisted up to a helicopter in baskets.

Yellow bulldozers were clearing the roads of tons of sticky brown mud in Montecito and other towns as utility workers restored downed power lines.

Talk show host Oprah Winfrey, who has been touted this week as a possible 2020 candidate for the White House, was among those affected by the mudslides.

Ms. Winfrey posted a video of herself outside her Montecito mansion wading through near-knee deep mud.

Talk show host Ellen DeGeneres was another Montecito resident impacted by the storm.

Ms. DeGeneres posted a picture on Twitter of herself standing in mud next to a downed tree near her home.

“This is the street in front of our house,” she said. “I don’t know anything about our house yet. I’m heartbroken for our community of Montecito.” — AFP