CAPITULO 1: THE PERSON AND HUMAN NEEDS

- To understand organizations we must understand what man is.

- The man is a). An unfinished being (unsatisfied, that is why it has needs). b). A being
that depends on others for satisfaction.

- The needs are:

o Materials (have)

o Cognitive (Know / Do)

o Affective (Being-Serving)

- Materials: related to the material world and things external to us.

- Cognitive: needs related to increasing operational knowledge and being able to control
reality

- Affective: linked to achieving satisfactory relationships with other people. Needs to love
and be loved.

- Dimensions of the Person:

o Body 0 Nec. Materials 0 Have

o Intelligence 0 Nec. Cognitive 0 Know / Do

o Will 0 Affective 0 Being/Serve

- The 3 types must be developed; The will moves the intelligence, but the intelligence
guides the will, so if I want to learn to love I have to learn to think.

CAPITULO 2: BALANCES IN THE ORGANIZATION

Dimension of the Person Needs Plan Dimension of the Organization

Body Materials Have Effectiveness

Intelligence Cognitive Know / do Attractiveness

Will Affective Being / serving Unity

- What the Company gives

o In material terms, the company can give money or assets. This should be in the formal
system.
o In the Cognitive, the company can give power and security. Increase the wealth of the
position, rotation, promotions, promotions, etc. It must be in the formal system that ideas
are taken into account.

o Emotionally, the company can provide concern and service to employees. This manifests
itself in the work environment.

- What the Employee gives

o In material terms it gives productivity

o In the cognitive aspect it gives knowledge, creativity, intelligence, ingenuity, etc. This is
reflected in the way “How” the above productivity is achieved.

o Emotionally, it can offer “Loyalty” and “Trust”.

CAPITULO 3: REASONS FOR THE ACTION

- Motivation is the drive to act to achieve satisfaction.

- For this, the person evaluates a priori the possible satisfactions of the different actions.
We choose the one that gives us the most motivation.

- Motive is how much we consider something valuable.

- Action Results:

o Extrinsic Result: it is the result that depends on the other person. It is the reaction
achieved (R)

o Intrinsic Results: what happens to the person who performs the action (I). This change is
learning.

o Transcendent Result: what happens to the other (Other´).

- The 1st and 3rd are external to the one who acts. The 2nd only depends on the action and
not on the other.

- In an action, all 3 results are given even if the intention was to search for only one of
them.

- Reasons for Action:

o Extrinsic Results: seeks extrinsic results to satisfy material needs.

o Intrinsic Motives: seeks learning, seeks intrinsic results to satisfy cognitive needs.

A Operational learning: acquisition of knowledge or technical skill. It can be + or -. Ex.

Practicing golf without technique is negative learning.
A Structural learning (self-control): it is oriented towards the best future achievement of
transcendental results. It can be + or -. It is positive when it increases the ease of achieving
transcendental results. It is negative when you get used to not caring about what happens to
others when making decisions.

o Transcendent Motives: seek change (benefit) in the other person. This change can be any
of the 3 areas of the person but it is always in the other person.

Reason Interest Purpose sought Time dedicated Consequence on who acts

Extrinsic Own Satisfy my need The least Have

Intrinsic Learn Satisfy my knowledge Until I stop learning Professional development

(operational learning)

Transcendent Service Satisfy the needs of others Whatever is needed Personal Development
(Learn. Structural)

- Win by Serving: You only serve while you earn more. The goal is to satisfy extrinsic
motives. The goal is not to serve, but to win.

- Serve Winning: seeks to serve others. That's the goal. Customer profit and loyalty comes
later as a consequence.

Dimensions Person Needs Results Action Reasons for the Action Value of the Action

Body Materials Reward Extrinsic Efficacy

Intelligence Cognitive Self Intrinsic Efficiency

Will Affective Other´ Transcendent Consistency

- Decision making criteria:

o Efficiency: it is the degree of satisfaction with the results obtained compared to the effort
used. Ex. If the seller is satisfied with the commission or praise received, then the sale was
effective.

A Validity: the action is valid if the reaction solves the problem.

A Operability: the action is operational if it is feasible for the agent. Ex. For a seller to be
able to overcome the difficulty of selling.

A Instrumentability: if the action is operative for the other. Ex. If the client can bear the
cost.

o Efficiency: it is the value that the internal results produced by the action have for the
person who executes it. Ex. For the seller, it will be more efficient the more operational
learning satisfies him. It will be efficient if the next time you sell your operation has
increased.
o Consistency: it is the value that the results produced by the action have on the other
person. An action is consistent if instrumentality increases. To evaluate consistency you
have to put yourself in the other person's shoes, see if he knew the reasons why I do what I
do, he would continue to trust me.

CHAPTER 4: HUMAN MOTIVATION

Dimensions of Motivation:

- There are two dimensions in the motivation to do something regardless of the motive
sought with the action: Rational and Spontaneous Dimension.

- Motivation is the impulse to do something, evaluating a priori the satisfactions that the
possible actions will generate. Two types of knowledge are involved in this evaluation:
experimental and abstract knowledge.

Type of knowledge Dimension Motivation

Experimental 0 Spontaneous (attractiveness of action)

Abstract 0 Rational (convenience of action)

- Spontaneous Motivation: it arises almost automatically as a result of our personal

experience. Ex. Drink water when we are thirsty. Drinking water is the attractive option,
just as staying away from fire is also the attractive option according to past experiences.

- Rational Motivation: arises as an analysis of information that is not experienced. These

allow us to evaluate which options are convenient. Ex. Not drinking water when we have a
fever and are thirsty because it hurts us, even though it is the most attractive, it is not the
most convenient. Ex. A firefighter who approached the fire because it is the most
convenient thing to do despite not being the most attractive.

Components of Self-Control

Spontaneous motivation influences automatically, rational motivation influences through

self-control.

Self-control is the person's ability to control the impulse of spontaneous motivation. Self-
control makes it easier for some unattractive actions to be operational.

Self-control has 2 components so that rational motivation can control the impulse of
spontaneous motivation: Rationality and Virtuality.

- Rationality: the decision maker's ability to correctly use abstract knowledge to realize
that an action is convenient and consistent.

- Virtuality: it is the ability to want the convenient alternative.

- The degree of self-control will depend on the degree of rationality (being able to identify
consistent alternatives) and virtuality (wanting to do what is consistent).
- Self-control = Freedom (ability that allows you to act according to what you want).

Threats to motivational quality

- Cowardice: lack of ability to assume the “opportunity cost” to perform a consistent but
unattractive action.

- Rationalization: consists of deforming reality to make it reasonable and in accordance

with our interests.

learn to think

The antidote to nationalization is to learn to think. The steps for this are:

- Detect the real problem or need: identify what threatens effectiveness because it weakens
the conditions that allow benefits to be obtained. These conditions are knowledge and
attitude. You must identify which are real problems and which are pseudo-problems or
whims.

- See who is responsible for dealing with the problem: those that we cannot solve or that by
doing so make the problem worse should not be taken as problems. “It is raining” is not a
problem because we cannot avoid it, it is an environmental fact. The problem is “that we are
getting wet” and that is if we can solve it. High interest rates, competitive environment, etc.
are not a problem.

- Generate feasible alternative solutions: imprecise options such as “have someone do

something”, “form a committee to deal with the issue”, increase motivation”, etc. are not
solutions. They are not alternatives either, but rather criteria: taking care of profitability,
reducing costs, meeting customer needs, etc.

- Define evaluation criteria: it must be analyzed for effectiveness, efficiency and

consistency. The criteria must allow us to discriminate alternatives, they must be few, and
weighting weights must be established.

- Decision and Action: This ability must be developed until it is

unconsciously that we do it.

How to Improve Motivational Quality

1. Develop courage:

- That is, developing virtuality, which is more important than rationality. Virtuality helps
rationality because only those who make the effort to do so think well. The motivation to
think (the previous steps) are not spontaneous, haste, comfort, lack of time are excuses; You
must grow in virtuality to increase motivational quality.

- Rationality helps virtuality by presenting new alternatives.

- The increase in virtuality is achieved when one learns to pay the opportunity cost and
this is only achieved permanently for transcendent reasons, since it is the only way to
repeatedly choose a less attractive action.
- The case method improves rationality and coaching improves virtuality.

2. Motivational conflict resolution

- There is intramotivational conflict (Efic = and Consist = ; Efic ↑ and Consist ↑ )

and
intermotivational (Efic ↑ and Consist ↓ ; Efic ↓ and Consist ↑ ).

- The latter are what ↑ quality motivation, the former is not. The latter are rare. The
growth of Motivational Quality depends on choosing the most consistent option.

3. Rectification of Own Reasons

Internal exercise where one changes the reasons why one does what one does. It does not
need a change in action, only in motive and it is not necessarily necessary to externalize it, it
is only internal.

How to Motivate Transcendentally

1. Promote Transcendent Motives

Actions contrary to transcendent motives should never be encouraged. Nor should they be
prevented.

They are prevented when we look at achieving objectives without seeing the “way” in which
they are achieved.

You should always motivate yourself with transcendent reasons, if the other person is not
motivated, then you just go down a step and motivate yourself with another type of
motivation. You should always start at the top and work your way down.

2. Teach

Help to see the consequences of one's own behavior towards others, since many times it is
not done with bad intentions, but rather due to ignorance or omission of analysis of the
results at the 3 levels.

3. Give the example

It is the central element of the transcendental motivation strategy.

The command is to make people “do what I want” however the best way to do that is “make
people want to do what I want”.

Relationship between Motives and Motivation

Motivation Reasons We call it…

Spontaneous Motivation Intrinsic Motives Does not exist

Extrinsic Motives Spontaneous Motivation for Extrinsic Motives A

Transcendent Motives Spontaneous Motivation for Transcendent Motives B

Sentimentalism

Rational Motivation for Intrinsic Motives Rational Motivation for Extrinsic Motives C
Operational Learning

Extrinsic Motives Drive to learn

Transcendent Motives Rational Motivation for Transcendent Motives D Structural Learning

CHAPTER 5: DIMENSIONS OF THE ORGANIZATION: DECISION-MAKING CRITERIA.

1. EFFECTIVENESS

It is the ability to operate (offer products) through the satisfaction of extrinsic motives of
employees.

Efficiency = Resources - Incentives

Conditions of Efficacy: depends on 2 factors:

a) . Generated Resources: what customers are willing to give for the products.

b) . Minimum Necessary Incentives: for employees to work. The company is more efficient
the smaller the amount of incentives.

Incentives are not just costs (according to the paradigm in use) since, for example, the
owner of a company does not think that dividends are a cost. Rather, they are an incentive
for him to continue working. If you only had extrinsic reasons and no such incentives
existed, then you close the company.

Considering compensation as a cost or incentive tells us whether we consider the person as

inside or outside the company.

For example, if the owner considers the salary of his managers as a cost, then he considers
them as “labor suppliers.” And vice versa, if financial managers consider dividends as a
cost, then they see shareholders as “capital providers” just like a bank.

Measuring Effectiveness

How you view salaries influences how effectiveness is measured. If the company is
considered to be only the shareholders, then the effectiveness will be the net profit. And if
employees are considered as part of the company, then effectiveness is the added economic
value (sales – production costs), here the salaries of employees are not a cost but part of the
benefit or profits.

Effectiveness: Obligation of the Organization

Every company must overcome the point where R=I. Although this is a necessary but not
sufficient condition. Sufficient conditions include learning and unity, then effectiveness will
be maximum in the long run. Future effectiveness is not a function of current effectiveness,
but of attractiveness and unity.

Efficacy: Decision Criterion

Efficiency is therefore a criterion to take into account, but not the exclusive one.

How to maximize effectiveness:

a) . Increasing the resources generated: either increasing income or decreasing costs.

b) . Reduce incentives

The market will increase resources when the products adapt to its needs and this is what
concerns the rational motivation for transcendent reasons of the producer.

For incentives to decrease, it is important that producers have an important component of

intrinsic and transcendent motives and thus reduce the minimum necessary incentives.

II. ATTRACTIVENESS

It is the second dimension or purpose of the organization. It is the company's ability to

operate through the satisfaction of employees' intrinsic motives.

It is the degree of internal motivation (sum of intrinsic and transcendent motives). That is,
what they would do even if they did not receive external incentives.

It is the degree to which people participate voluntarily, what people are willing to give
spontaneously.

The degree of attractiveness coincides with the quality of the spontaneous or informal
system in terms of support or hostility to the formal system.

A boss's managerial ability depends on knowing how to see the impact of his or her
decisions on both effectiveness and attractiveness.

Measuring Attractiveness: Attractiveness is not quantifiable, but it can be measured using

indicators such as staff turnover, satisfaction surveys, etc.

Attractiveness as a decision criterion.

Theory X carrot and stick approach, workers are lazy by nature, they need to be supervised,
motivated. They are guided only by extrinsic motives.

Mc Gregor's theory Y considers attractiveness but does not differentiate intrinsic and
transcendent motives. Maximizing attractiveness accustoms employees to thinking about
their own interests and not the good of the group. Furthermore, employees do not always
differentiate between apparent and real needs.
Efficiency and Attractiveness

They are not always aligned, sometimes they contradict each other. Maximum
attractiveness is achieved when people do what they want, which reduces effectiveness.
Some actions that increase efficiency are unattractive to the person doing them.

But if they increase attractiveness, we reduce the minimum incentives necessary for people
to do these actions that increase effectiveness.

III. UNIT

It is the third variable to maximize effectiveness. Attractiveness does not always increase
effectiveness. Sometimes unattractive actions reduce it. Transcendent motives always
increase it because the employee identifies with the customer's needs.

Unity is the organization's ability to satisfy employees' transcendent motives and satisfy
their emotional needs.

One measure of this is trust among employees and their identification with the company.

Unity is the part of attractiveness due to transcendent motives. From now on we will call
attractiveness the spontaneous component for intrinsic reasons and Unity the rational
motivation for transcendent reasons.

The degree of unity of the company is the degree of identification of employees with what it
does.

Unit Conditions

1. Formal system quality

They are the interactions in the operating system: that the product being sold meets the
quality specifications, well-defined standards and procedures, clear delegation processes,
pleasant work environment, orderly and clean layout, etc. It is the company's intended way
of operating.

In the short term the SF is the most important for the unit.

It is very difficult to identify with a company that does things badly and has no intention of
achieving them.

2. Quality of the Informal System

It is the motivational quality of employees in terms of actions that seek the quality of service
in operations.

This is the most important thing in the long term. Improving it is not a technical problem
but a motivational and leadership problem.

3. Communication Quality
The value of operations must be communicated to employees. If the SF and the SE have a
minimum, communication increases unity, if there is no minimum, then communication is
a detectable manipulation that will destroy unity.

The SF and the SE are reality, trying to camouflage this reality with lies deteriorates
communication and unity,

Unit Measurement

The minimum of unity is when employees consider the company to be fair. It occurs when
no one in the company feels deceived or treated unfairly.

Empower Unity: Only Way to Maximize Efficiency.

Efficiency (E) = Resources (R) - Incentives (I)

If there were only ME, the incentives would tend to be equal to R

If there is also MI, the incentives will decrease

If there were also MT in addition to R, they would increase. This maximizes efficiency

When unity is complete, everything possible is feasible. When not, some possible actions
are not feasible because there is no necessary trust.

Furthermore, the lack of unity increases transaction costs (security, surveillance,

accounting books, supplies, etc.)

Laws of the Pérez López Organization

1. The organization requires a minimum of efficiency and attractiveness to survive

2. The minimum efficiency required in an organization can decrease if its attractiveness

increases.

3. The increase in unity allows the long-term growth of the other dimensions:
attractiveness and effectiveness.

Organization Diagnosis

CHAPTER 6: LEADERSHIP

What is a leader:

The hierarchical position does not make someone a leader, it only makes them a manager
or ruler or leader. You will only be a leader to the extent that you contribute to the unity of
the organization.

Leader Dimensions:
1. Strategic Dimension: it is the ability to increase efficiency, that is, increase the economic
value produced.

You are a good strategist if you increase effectiveness without deteriorating unity or
distinctive competence.

2. Executive Dimension: it is the ability to improve attractiveness, it is the ability to adapt

operations to those jobs or tasks that people with greater talent are inclined to perform for
intrinsic reasons.

You are a good executive if you achieve good levels of attractiveness without deteriorating
effectiveness or unity.

3. Leadership Dimension: it is the ability to increase unity, it is the knowledge of

encouraging people to act motivated by transcendent motives.

A manager is a leader if he or she manages to increase mutual trust and identification while
achieving effectiveness and attractiveness.

These dimensions are different and irreducible to each other, that is, having one of them
does not automatically mean having the others.

A manager will be able to make the organization grow if he has the minimum necessary in
each dimension.

The Strategist:

When others only see problems, the strategist sees opportunities. He not only finds
business opportunities, but takes advantage of them, is entrepreneurial and takes the
initiative. Develop strategies that improve effectiveness.

This ability is not acquireable, but rather one is born with it. Training only develops or
improves it.

The Executive:

He is someone who knows how to discover capabilities and opportunities in people and also
knows how to take advantage of their talents and abilities to increase the company's
distinctive competence: the coordinated and differentiated know-how that contributes to
effectiveness. He is an expert in issues of structure and organization, delegation,
communication, etc.

They are good communicators of difficult objectives to large numbers of people despite the
sacrifices that are necessary.

You also have to be born with this capacity, it is not acquireable.

Leader:

They are the people who, in addition to having the skills of strategists and executives above
the minimum, care that their people develop a sense of duty and understand the impact of
their actions on other people. It seeks to improve people by promoting their rational
motivation for transcendent reasons.

Unlike the previous two, leaders are not born, but are made with effort to improve their
rationality and virtuality.

They are trainers of other leaders.

The leader has 2 characteristics: - Professionalism: intellectual virtues, thinks well.

- Exemplarity: moral virtues, knowing how to love.

Manager Profiles:

S,s or eStrategy

E,e or Executive

L,l or Leadership.

Non-Leaders:

1. Mediocre (s,e,l): Lacks strategic, executive and leadership qualities; and has not acquired
human virtues (rationality and virtuality). He doesn't get any achievements. His lack of
virtuality leads him to have no aspirations and since he does not change easily, it is
preferable to remove him from the company.

2. Tyrant (S,e,l): He has strength and drive, but he has no principles. Fall into
rationalizations. Its strength comes from coercive power. He has rational motivation and
cunning oriented toward extrinsic motives. Helps others only spontaneously (sometimes
they are harsh and sometimes paternalistic). He doesn't know how to delegate, he does
everything to have more power. The solution is to improve your rationality and make you
see the impact of your actions on others. Help you delegate organizational issues to
executives with a better profile.

3. Demagogue (s,E,l): He is the typical salesman (in the bad sense of the word). His
strength is persuasive power and he manipulates people. Attentive to organizational issues
and consensus. He knows how to satisfy people's whims (felt but not real needs). The
solution is also to help you think realistically, so that you unmask your rationalizations and
can develop virtues.

4. Manipulator (S,E,l): His coercive power is combined with persuasive power, but he lacks
principles because he has also fallen into rationalizations. The solution is high-level
personalized mentoring that helps you get outside of yourself and sincerely care about
serving others.

These 4 profiles are very rigid and difficult to change.

With Leadership qualities:

1. Good-natured (s,e,L): in reality he is not a leader, because he does not meet the
minimum effectiveness and efficiency. He occupies that position by chance, political
reasons or inheritance. He is kind but useless, his affable character is rather a weakness. He
hasn't done anything bad, but he hasn't done anything good either, he is incapable. The only
solution is to train him (rarely feasible) or relocate him where his sense of service is useful.

2. Prestigious (S,e,L): the danger comes from falling into exhibitionism, if your motivation
is predominantly spontaneous, if you help others because it is born to you and not as a
consequence of the development of virtues (rational motivation). It requires associating
with someone else who compensates for your executive weakness (like the next profile and
vice versa) and not neglecting organizational issues so as not to diminish attractiveness.

3. Persuasive (s,E,L): he does not know how to start businesses as well as the previous one,
he is a great consolidator of companies in operation and knows how to identify and get
together with people who have the strategic capacity that he lacks. Communicates very well
without manipulations. People believe in what they say. Like the previous one, there is a
risk that if your motivation is spontaneous, you will fall into verbalism or empty rhetoric
that jeopardizes effectiveness. If the prestigious person has to be put to start projects, this
one has to be put to unite them.

4. Leader (S,E,L): is rare. He is a leader trainer. His strength is in his example.

Profile Profile Strength Concern Achievements Dangers Solution Attitude to Change

Se-l Mediocre Does not have Does not have Does not have Laziness Termination Rigidity

Se-l Tyrant Coercive Power Success E (acp) Ambition Values, improve rationality

sE-l Demagogue Persuasive Power Status A (acp) Presumption Virtues

SE-l Manipulator Coercion and Persuasion Power E (acp)

A (acp) Unscrupulous Tutoring

se-L Good-natured “Heart” Sentimental Does not have Incapable Relocation Training
Flexibility

Se-L Prestigious Authority Skills E (alp) Display Start

sE-L Persuasive Friendship Attitudes A (alp) Verbalism Cohesive

Se-L Leader Exemplarity Development and Service U (alp) Self-complacency

Decentralization Growth

Incompetence itself: diagnosis and solutions

- recognize our incompetence

- distinguish between those that can be overcome and those that cannot be overcome
- improve the surmountable ones (generally related to moral aspects)

- apply some remedies: self-discipline, self-control, humility (to identify arrogance and
selfishness), generosity, patience (with the most clumsy)

- Coaching: find a personal advisor

- Humility and prudence to live with insurmountable incompetence, trying not to affect
others.

CHAPTER 7: POWER AND AUTHORITY: WAYS TO INFLUENCE OTHERS

Potestas (power) is the socially recognized power

Autoritas (authority) is socially recognized knowledge

- Coercive Power is the ability to influence the behavior of others by appealing to extrinsic
motives.

- Persuasive power when intrinsic motives are appealed

- Authority when appealing to transcendent reasons.

Authority is granted informally, coercive power is given by the formal system, it comes with
the position.

Authoritarianism coincides with power when used without authority.

The authority

Authority is the characteristic of the leader.

It is associated with the person regardless of the position held.

The limit of authority is the freedom of subordinates.

The power

Coercive power is, for example, giving a reward

The persuasive power is, for example, inviting dialogue.

The limits of power are given by the formal system.

The formal system is the set of activities planned in the organization regardless of whether
they are written or not. It is made up of two subsystems:

- The operating system: the expected actions of people are in the function manuals.

- The distributive system – Incentives: is what people are expected to receive in exchange
for complying with the operating system. It must be linked to a control system.

The spontaneous system is the set of unforeseen actions that occur in the organization, on
the occasion of carrying out the actions planned in the formal system. They are the free
actions of people.

The managerial task consists of improving the formal system as much as possible, but
fundamentally it consists of governing the spontaneous system: the knowledge and
motivation of people.

The limits of the operating system are that it cannot foresee everything that can happen
because people are free in addition to the complexity and effectiveness of that.

Orders must be interpreted to be able to fulfill them better.

In addition, a control and information system is needed to control the formal system, again
this will be better the more it covers the formal system, but it should not be lost sight of that
the costs of this should not exceed the benefits offered.

Tyranny is the abuse of the use of coercive power. Managers frequently complain about a
lack of power when what they lack is the ability to increase attractiveness or unity.

Coercive power is used to influence people through extrinsic motives. But it should be used
well and in emergency situations such as when it is not possible to stop to explain the
appropriateness of an action and to deter or avoid bad behavior from people who do not
respond in any other way.

The minimum use of power is to prevent subordinates from commenting on acts of injustice
with other people. Not using it is wrong.

Persuasive power serves to influence through intrinsic motives. It influences through the
spontaneous system and is also associated with the person and not the position. It is similar
to authority, in that it influences through the spontaneous system, but if it is detached from
respect for the other person it becomes manipulation.

How authority grows

It grows when persuasive and coercive power is used well.

When used with competence and good intention, seeking attractiveness and unity.

How authority is lost

- When power is not used when it should: to prevent unjust actions. This slowly destroys
the office and attractiveness if it is not detected in time. Furthermore, it is unethical. It is
common in young managers who seek to ingratiate themselves with subordinates the easy
way. He must be taught to use power well.

- Useless use of power: more power is used than necessary, or it is used for things that do
not increase effectiveness. This causes attractiveness and authority to decrease. This
happens more frequently than the previous one (it is usually called “particular management
style”), which kills authority faster. It should stop being done and if the error was
discovered by others an apology should be apologized. By stopping doing this, people will
realize little by little and regain confidence.

- Unfair use of power: occurs when people's rights are consciously affected. It is a
fulminant deterioration of authority.

Use of Standards

The rules should be few and clear

They must be understood by everyone

For minor offenses, minor sanctions, etc.

If a wrong rule is verified, it must be corrected

CHAPTER 8: COMMUNICATION WITHIN THE COMPANY

Since the objective of a company is for people to achieve results, they must be coordinated.

Every manager has 3 basic functions:

- Define and Decide what has to be done (definition of the purpose)

- Communicate tasks to people (structuring the purpose)

- Motivate those people to do them (implementation of the purpose)

What is communication?

It is not just distributing information, but exchanging knowledge.

For this it is necessary:

- Truth: walk in truth, let our thoughts adapt to reality

- Veracity: coherence between what is thought and what is said

- Loyalty: consistency between what is said and what is done.

Communication must help people to walk in truth, to ensure that their words are truthful
and their actions are loyal.

Communication is the link between the definition of what should be done and the
motivation of people.

It is very important that knowledge conforms to the truth, otherwise the will will reject
something good or accept something bad.
Fundamental Threats to Communication

Think well or Falsehood or training/study

Speak well or Lie or Communicate

Act well or Disloyalty or Motivate

Falsehood: the better it is communicated, the worse it is because the concept is wrong. You
should study better before making hasty judgments.

Lie: saying something with the intention of deceiving. Do it intentionally regardless of

whether it is true or false. When a person says something false, they are not necessarily
lying; It is important to differentiate it. Communication must be selective depending on
whether the interlocutor has the right to the information.

Disloyalty: is someone who is not faithful to the word given with their actions. In this case
the problem is not communication (if it is true and truthful), but motivation. He knows but
he doesn't want to. The unit is destroyed in an accelerated manner.

More important than how it is transmitted (audio-visual media) is what?

The hierarchical line must be respected but you must know when to jump over it if
necessary.

CHAPTER 9: THE DELEGATION

Temperament is the congenital component of a person's way of being that influences

spontaneous reactions.

Character is the component acquired as a result of the exercise of one's freedom. It implies
that intelligence thinks what is correct in each situation, regardless of the spontaneous
impulse. Character corrects temperamental impulse tendencies.

The combination of both shapes the personality of an individual: their way of being and
acting.

Due to his temperament, a person can be found in 2 extremes:

- Absorbent: you tend to be decisive and try to be everywhere. He is proactive, always takes
the initiative. This makes it independent and tends to centralize. (shoot and then ask)

- Abdicating: tends to avoid making decisions. It is reactive, behaves passively in the face
of problems and decides based on circumstances. This makes it more dependent and tends
to decentralize. (where is Vicente going? Where people go).

We all have a little of both. In principle it is neither good nor bad. Depending on the
problem, we must look for the convenience of one or the other.

However, spontaneously one is not a delegator, but only an absorber or abdicator. One is a
delegator by decision of intelligence. Depending on the circumstances, you must decide
whether to be abdicant, absorbing or delegating.

What is delegate?

Delegation takes place when a person in charge transfers some decisions to another person
in charge. It supposes a transfer of the power necessary for the delegate to make decisions
for the fulfillment of what has been delegated.

In reality what is delegated is a little of the power. For this reason, the delegation process is
limited to the formal system.

It is impossible to delegate authority, since this is the respect that others have for your
professional competence. This is not delegated, but is earned by example, professionalism
and good use of power.

Delegating is giving autonomy to the delegate. It is not delegated so that exactly what one
would have done is done, but rather so that one decides within a decisional framework with
autonomy.

When delegating, the 3 functions of management are carried out: it is necessary to specify
what is going to be done (strategy), what type of decisions and means are transferred to the
delegated person (coordination) and to get it done (motivation).

The Delegation Process

1. Examination of the reasons for delegating: it is up to the decision maker. The reasons
will be analyzed later.

2. Definition of the decisional field: it is the type of decisions that the superior transfers to
the subordinate, establishing limits and general criteria for action. Ex. Decide on credits for
clients up to a maximum amount, investment decisions according to company policies,
choose suppliers as long as they meet the requested requirements, etc.

You have to be precise about what is given and what is not, to avoid future confusion about
the subordinate's powers. This should be done by the superior, although the subordinate
can participate and increase attractiveness.

3. Choosing the delegate: examine the candidate, evaluate his or her management capacity
and verify whether it is reliable to delegate it to him or her.

4. When to Delegate: evaluate the following circumstances:

• If the delegater is new or has already been delegating

• If the person receiving the delegation is new to the company

• If the decisional framework that is going to be delegated includes actions that are going to
be carried out for the first time or are routine. Delegating what you don't know is similar to
abdicating.
• If the company is in normal situations or must take urgent measures.

5. Delegation Approach: clearly communicate what is being delegated and the rules of the
game. You must make sure that the subordinate understood clearly.

6. Execution of the delegation: corresponds to the subordinate. The boss can help the
subordinate make the decision, but if he intervenes, he has not delegated.

There are degrees of delegation (these are imperfect delegations):

• Assign a task: this is when a person performs it but is not responsible for the results, such
as selling something, manufacturing a part, moving a letter, etc.

• Assignment of certain responsibilities: these are tasks but more complex and the person
in charge is responsible for achieving certain goals. Example, an executive who is in charge
of managing the sales department where he is responsible for sales results. It is similar to
delegation but the decision framework is very limited and implies the need to request
authorization from the boss to decide.

7. Reappraisal: monitoring by the boss about how the subordinate is implementing

decisions.

Delegation does not transfer responsibilities. When delegating, decisions are transferred
and responsibility is shared. The subordinate is responsible for the execution and the boss
for having delegated that task to that subordinate.

Not wanting to assume the responsibilities of the subordinate when they make mistakes, as
well as assuming the achievements of the subordinates, are failures of leadership.

Delegating requires both those who are delegated and those who delegate, it requires them
to trust the person and be willing to assume possible losses; this would only be done for
transcendent rational reasons.

Delegation and Relationships in the Structure

8. Hierarchical relationship: between the superior (formally responsible for the objective)
and the subordinate.

9. Coordination relationship: occurs between co-responsible for a joint objective. The

rights and obligations are identical. Right to be informed, obligation to inform. Right to
have the decisional framework respected and obligation to respect that of the other. This
relationship is more complicated than the hierarchical one because a good part falls into the
informal system.

10. Support Relationship: each person in charge has a different and complementary
objective to that of the other people in charge. Both have hierarchical but non-functional
autonomy with respect to the other. Ex. The line area and the staff area.

Reasons for Delegating: Decision Criteria

1. Delegation and Effectiveness:

It is delegated to achieve better results. It is imperative for organizations with a certain level
since direct supervision and informal communication would not be enough to direct the
organization.

If delegation is only done for extrinsic reasons, the control system will be based exclusively
on results and in the medium and long term it can be dangerous. In this case, if the results
are lowered, delegation will stop; It will only be delegated when the boss cannot cope, which
is why it is a technical delegation, or distribution of tasks.

2. Delegation and Attractiveness:

Delegation that seeks to increase efficiency and attractiveness.

It is a delegation, but it is unstable, because it is only maintained as long as the results do

not suffer much.

- Team learning is sought.

- You have to explain why

- Avoid explaining how, let the subordinate decide.

- We must support it with information and resources

- Set delivery times

- If it is a large project, delegate in parts

- Set goals

- Not reprimand, but support and advise.

It should be ensured that the subordinate enjoys being in charge of that responsibility.

It is advisable to ensure that the subordinate is willing to accept the delegation, so as not to
force him or her to do something that he or she does not want or does not feel ready for.

However, there is no real concern for the subordinate; It is a negotiated psychological

delegation, which seeks acceptance of objectives.

The existing danger is sentimentality, giving the subordinate a new toy. This easily falls into
manipulation. You must be clear with the subordinate. If you delegate because you are too
busy, you should tell them.

Here the control system is not based on results, but based on objectives, it considers the
increase in attractiveness based on reasoning, opinions, suggestions, etc.

3. Delegation and Unit:

The aim is to increase efficiency, attractiveness and unity.

It is delegated so that the subordinate learns to make correct decisions, evaluating them
completely for himself. It is about developing distinctive competence, but also unity in the
organization and informal authority in the organization.

The control system is more sensitive to learning than to results and seeks to make
intentions explicit. It is a control, not by objectives, but by real needs.

If the subordinate does not do it because he does not know, extrinsic incentives and
punishments are inefficient and unfair.

If the subordinate does not do it because he does not want to, a process must be initiated to
make him aware of his lack of leadership, encouraging him to change. If they do not
respond, the degree of delegation should be reduced and the transfer of power restricted
and even their services terminated.

The intention is to ensure that the delegate is capable of developing and being a leader who
detects real needs. A leader cannot teach this to many people at the same time, at most to a
few who depend directly on him.

When effectiveness drops greatly and it becomes very urgent to find results, control must be
centralized and dialogue must be held to help obtain those results.

Common mistakes in delegation

- Fear of Delegating: the superior is afraid of losing power, perhaps because he thinks that
no one can do things as well as him or due to lack of trust in his delegates and wants to
centralize everything. What happens is that since it does not have time for everything, it is
ineffective and produces a progressive loss of authority and leadership.

- Impersonating the Subordinate: when the superior interferes in making decisions that he
has delegated to his subordinate. This deteriorates effectiveness and attractiveness and
unity.

- Lack of Loyalty of the boss with the Subordinate: The boss impersonates the delegate and
presents the subordinate's inefficiency as an excuse. It is a more serious case because it
deteriorates the unit more. The correct thing to do would be to transfer the complaint to the
subordinate and help him resolve it.

- Not Taking Responsibility: The boss considers that the person responsible for what is
delegated is the subordinate and not him.

- Appropriating the Successes of the Subordinate: it is an abuse of power and attacks the
extrinsic motives of the subordinate and also reduces attractiveness and unity. It must be
clear before starting that the achievements will be yours and the responsibility is shared.

- Taking Everything for Granted and Not Talking: The boss does not encourage open
communication and makes the subordinate assume things and make mistakes that could
have been avoided.
- Delegating looking for a “Scapegoat”: rationalized cunning typical of a manipulative
tyrant. Trust dies immediately.

- When the boss Complains about the incompetence of his Subordinate: motivated by
spontaneous motivation. He doesn't realize that it is his responsibility because he chose it
and delegated that to him.

CHAPTER 10: PERSONNEL SELECTION

The power of a company depends on the quality of the formal system and the capacity of its
managers.

The workers are responsible for 15% of the problems and the formal system for 85%, and
these are the responsibility of the management that designs them. However, workers are
responsible for a high percentage of the solutions while managers are only responsible to
the extent that they enable the channels that allow the workers' full potential to be
actualized.

Recruitment should not be looked at as an expense, but as an investment, just like the
purchase of machinery, we must analyze which is the best option to reduce the costs of
repeating the process.

Of the 3 functions of the manager (definition of what needs to be done, coordination and
distribution of tasks and motivation), recruitment is a part of the second, when the person
to distribute the task is not within, we must look for him or her.

It is recommended that each boss choose his team or at least have a say in his choice and
that this option be taken into account.

Selection Phases

1. Planning personnel needs. It must be integrated with the 3 dimensions of the

organization: strategy, attractiveness and unity. It is preferable to fall short than exceed, so
that when you have to cut staff you do not incur layoffs.

Firing people as the first strategic resource is a sign of the value of people to management
and their lack of judgment to grow without planning.

Growing too much has negative repercussions in all 3 dimensions: in effectiveness (due to
the increase in the incentive fund), in attractiveness (dysfunctions in coordination, message
of incompetence, etc.) and in unity (loss of authority, use unnecessary power, and
generation of false expectations, and waste of time and resources in separating personnel).

Outward growth should be a consequence of inward growth and not the other way around.

2. Job Analysis. It is the boss's obligation to prepare a job description that includes specific
objectives, as well as expected performance. When a position becomes empty, it is a good
opportunity to rethink it (due to possible accumulations of unnecessary work over time).

3. Recruitment of Candidates. It is always advisable to search within the company first.

Failure to do so decreases the attractiveness of the employees seeking that position, as well
as the unit due to possible feelings of injustice.

4. Pre-selection of Candidates. Filter out people who clearly do not meet the requirements
out of respect for your time and that of the company.

5. Interview

6. Usual tests.

Candidate Characteristics

1. Your motivational quality: will be greater to the extent that you consider the impact on
others when making decisions. A person who works for what they get from the company is
not necessarily out of self-interest, it depends on what they do with these obtained
resources. The sense of thrift and austerity can be signs of an attitude of service as long as
they are not like stinginess. It should be considered to avoid hiring destructive acchievers
who focus on the short term and destroy the unit.

2. Professional Competence: the knowledge and experience you have that helps improve
the company's distinctive competence. One way is to look at past achievements and results.

It is important to see your intrinsic motivation to learn as this will increase your knowledge
of knowing how to do.

Admission errors usually cause problems for the company, for the person, and are usually
expensive. For this reason, recruitment must consider all 3 dimensions.

The 3 aspects of the candidate must be evaluated:

Physical Ability: professional qualification, determination, drive.

Temperament: Extroverted, proactive, absorbing, sympathetic, nervous, etc.

Character: emotional intelligence, initiative, patience, joy, humility, equanimity, service to

others.

The interview

It is the most used selection instrument and an essential step to conclude the process. One
should try to know the motivational quality and certain temperamental and professional
characteristics of the candidate.

Every manager used to talking to his subordinates to find out their expectations,
motivations, complaints, needs or problems should know how to do it.

- Interviewer Qualities

You must have a cultural and professional level equal to or higher than the interviewee,
since both are interviewed and a valuable interviewee can be lost due to a bad impression.

The interviewer must have high motivational quality otherwise he will be unable to identify
if the interviewee has this quality. You could also try to hire someone with a low
motivational level so that they do not overshadow you. A true leader knows how to
surround himself with people better than him.

The interviewer must show mutual trust to facilitate the sincerity of the interviewee,
especially if the interviewee is shy, elderly, unemployed, etc.

Leadership quality should be the common denominator of every interviewer; this reduces
the risk of hiring negative elements in the organization. This is more important the more
responsibility the position has.

- Interview Evaluation

- From the point of view of effectiveness: since it is an objective of both parties, it must be
explained to the interviewee what is going to be demanded of him and what he will receive
in return. To evaluate future success it is always good to review past success, but in a CV
everyone is successful. It also helps to ask open questions such as: What do you like most
about your job? What are the most important objectives you hope to achieve in the new
position? You must evaluate whether the remuneration meets the interviewee's
expectations and not create false illusions or deceive.

- From the point of view of attractiveness: the interview must make it possible to evaluate
the profile and professional background of the candidate, as well as his suitability for the
job in question and the career path possibilities that the organization can offer. It must
allow the candidate to know the characteristics of the position they would perform from the
point of view of their professional future. The interviewer must evaluate the attractiveness
that the position generates for the person being evaluated. For this, it is important to ask
questions that allow them to know their medium and long-term professional objectives and
whether the position satisfies their intrinsic motives.

- From the point of view of the Unit: it is advisable to show the candidate the importance
that the company shows for him, not make him wait too long and receive him and offer his
hand. The location of the interview and the layout of the offices should facilitate a relaxed
and pleasant atmosphere. The interviewer should review the CV before the interview to
avoid re-questioning. The questions should revolve around the CV to avoid intruding into
the candidate's life. However, you should try to discover the why and for whom of the
decisions you make and the criteria you value when deciding. You should talk to him about
the climate and his expected behavior, but without bragging about the company because it
may have the opposite result than expected.

- Interview Questions

Efficiency Attractiveness Unity

Obvious - You have achieved good results in your professional experience - You would like
to be a boss

- You acquired great experience in your previous job

- How you value your professional career - You appreciate people

- You know how to put yourself in the place of others

-How about your spirit of service?

Theoretical - What importance of the achievement of high efficiency in the company

- What is the value of money - How do you think a manager can professionally develop his
subordinates - What are the responsibilities of a good financial manager?

- How to treat a difficult client or subordinate?

- How important are human relationships to you?

- What aspects of your previous company would you have liked to change?

Correct - Are you responsible for the profitability of your department? As?

- What were your duties as a boss in your previous job?

- How much do you earn per month?

- What was the increase in sales you achieved last year?

- How did you achieve that increase in profits?

- What is the biggest challenge you have overcome? - What are your hobbies.

- What types of tasks do you feel most comfortable with?

- What evolution would you like your professional career to have?

-How would you treat a person who is capable and creative but cannot channel that ability
towards obtaining results?

- Would you prefer to work with deadlines or have them handled by you?

- What gives you the most satisfaction about your previous job? -Which people would you
like to work with? Which ones not?

-How do you relate to your co-workers?

-How do you receive orders?

- Worst defect and greatest virtue?

-How would you evaluate a manager?

- What aspect of your previous job are you most proud of?

- How do you delegate?

- If you have fired someone, why did you do it?

- What was the straw that broke your patience?

-How did you manage to motivate your employees?

Obvious and theoretical questions should be avoided.

When a subordinate leaves the company, it is necessary to find out with an exit interview
whether he is leaving due to a decrease in his motivation to be in the company or an
increase in his motivation to leave it. The first is when people do not want to be in the
company and measures must be taken to prevent this from happening to other employees.
The second is when the stimulus comes from outside, such as a proposal in another
company or a personal issue.

When the incentive to leave is extrinsic, it is easily remedied, just offer more money or
increase status. If they are intrinsic reasons, the position can be redefined so that the
person develops better professionally. If the cause is for transcendent reasons, it must be
clarified if it is due to communication problems that led the person to make erroneous
inferences. If this is not the case, the case must be analyzed, identifying the causes.

CHAPTER 11: TRAINING AND EDUCATION

Efficiency and Training

From the point of view of effectiveness, it is more about training to improve performance,
rather than training. The goal is to have more productive people.

Therefore, they are trained in deeply practical and immediately applicable technical topics
(“look carefully at how this machine operates and what buttons you have to use”).

In the area of effectiveness, the main argument for a person to agree to training is
economic: if you learn to do it better, you will be more productive and earn more. There is
no dialogue, the superiors are the ones who decide what, when and how to train.

They tend to be massive and in the workplace.

Examples of these trainings are learning to use machinery, software, processes, or even
languages, learning to read and understand well.

Attractiveness and Training

From the point of view of attractiveness, what is sought is broader professional

development.

The aim is to awaken their talents, fill their gaps, improve their way of working and develop
their professional potential.

The contents are less technical and more scientific and humanistic. Nowadays,
interdisciplinarity between sciences and literature is necessary.
The fundamental thing about training is to teach how to think, that is, to develop rationality
to solve problems (two phases: detect real problems and look for solutions). This rationality
is acquired with the development of intellectual virtues such as prudence or practical
reason.

Unity and Training of Leaders

At the level of unity we already speak of training in the full sense. It is not only about
developing rationality but also virtuality, that is, the strength to overcome one's own
spontaneous motivation when it drives it in a direction other than that shown by rationality.

In addition to teaching thinking (educating intelligence), it teaches loving (educating the

will). What is sought is development as a person, self-improvement, that is, the
development of moral virtues.

It must be taught in a personalized way. And this type of training can only be given by
someone who has the qualities of a leader and in an environment of trust and friendship.

Training at this level means - Showing the consequences of actions on others.

- Give the example.

A person deepens his training when he learns to love what is good. We must not only do
what is good because it seems good to us or because we feel better doing it, but because it is
what we should do.

Learning to love is the development of moral virtues, the ease of loving what is good, of
which the most important are prudence, justice, sobriety and integrity.

This training in real values is the key to a leader's way of leading and the only way to train
leaders.

There are 4 phases in learning:

1. Unconscious ignorance: the person is not even aware of what he does not know.

2. Conscious ignorance: it is the first step of learning: realizing what one is missing.

3. Conscious ability: imperfect learning. Similar to when you learn to drive a car and have
to think about every movement.

4. Unconscious capacity: last phase where what has been learned is internalized and
applied naturally.

CHAPTER 12: PROMOTION AND PROMOTIONS IN THE ORGANIZATION.

Promotion and Command

Promotion is the most common way to motivate people (motivate them so that their
motivation to belong to the company is at least greater than that of leaving).
The generalized idea takes promotion as an increase in the level of command, but if
command is considered to be the degree of influence of a person, the concept is expanded. A
person can have a lot of influence but not have control (for example, a child can have a lot of
influence in a home but no one would say that they have control).

In the strict sense, command means government, that is, the extent to which a person's
judgments and decisions influence the organization. So the promotion of a person means
the increase in their level of government, in other words, the increase in their power to
shape the actions of the organization in accordance with what said person deems
appropriate.

The promotion can be classified in 2 ways:

1. By the way it is granted:

- Formal promotion: you are given more power and your decisions are more influential
because of this. It is communicated to the entire company.

- Informal promotion: judgments and opinions have weight and indirectly influence the
organization through the person or persons who have the power to decide.

2. Due to the content or matter that is influenced.

- External promotion: the individual's control over what he or she must receive from the
organization increases: remuneration, status, etc.

- Internal promotion: the person's control over what he or she has to contribute to the
organization is increased: his or her own work.

- Personal promotion: the person's control over what other people who belong to the
organization have to receive or give to it is increased.

Promotion and Decision Making Criteria

1. Promotion for effectiveness.

The degree of effectiveness is promoted, those who deliver results and demonstrate their
ability as a strategist are promoted. The goal is to balance what is given with what is
received as well as encourage greater performance.

It is an external promotion.

2. Promotion for attractiveness.

It is promoted with the aim of increasing attractiveness and distinctive competence. Those
who show initiative in improving the spontaneous system with their ideas, suggestions, etc.,
that is, those who demonstrate executive ability, are promoted.

It is an internal promotion, as it increases the degree of control and freedom: performance

of functions with greater responsibilities and autonomy to work. It should be more or less
formal.
3. Promotion for unity.

Those who have achieved results and have a leader profile are promoted. You are given
more control over people.

Normally promotion involves changes in the 3 types, increase in salary, degree of freedom
and command over others.

Promotion and Motivational Quality

1. Increase in Remuneration

Although no one dislikes it, the person motivated by transcendent motives will not find it as
satisfying.

It is positive if the increase in remuneration is associated with the company's gratification

for its transcendent reasons.

2. Increased Autonomy.

Greater control over what they give to the company: flexible schedules, participation, etc.
Suitable to satisfy intrinsic motives. It can be dangerous if the person's motivation is only
extrinsic, there is a risk that they will use the greater freedom for their benefit.

Like the previous one, if the person has transcendent motives, they will not be motivated,
what they want is to serve.

3. Increased control over people.

Suitable for people with rational motivation for transcendent reasons because they will try
to help the people in their care.

If the person's motivation is only extrinsic, this promotion is dangerous. And if they are
only intrinsic, there is a risk of manipulation.

In summary, if people's motives are:

1. Extrinsic: informal promotion is not enough to motivate it and both internal and
personal promotion are dysfunctional for the organization. It is advisable to increase his
remuneration without increasing autonomy or command unless he changes his attitude.

2. Intrinsic: external promotion does not motivate and personal promotion can be
dangerous. One solution is a horizontal transfer to break the routine. Like the previous one,
it is best not to increase the command unless you change your attitude.

3. Transcendent: external and internal promotion are insufficient. It is the ideal profile to
increase your power over others.

The appropriate thing is to promote with remuneration those who have extrinsic reasons,
with autonomy those who have intrinsic reasons and with command those who have
transcendent reasons.
A serious mistake is to promote with command people who only have extrinsic motives,
even if they have achieved positive results.

For this, it is essential to identify the motivational quality of people. You have to give little
by little and constantly evaluate. It is preferable to promote informally first.

When you promote someone, you send a message that requires evaluating what the impact
will be in the 3 dimensions. It can generate false expectations or it can resent people who
expected the promotion. It is good to have clear rules and be prepared to justify why a
person was promoted if necessary.

When a company promotes only for extrinsic and intrinsic reasons, sooner or later a more
or less hidden struggle is generated between employees, which destroys unity and
identification with the company.

CHAPTER 13: REMUNERATION

It is not logical that to improve their economic situation, a person necessarily has to move
up.

The way money is distributed among the organization constitutes a key message, perhaps
the most important, beyond rhetoric about valuing people.

The mechanistic model considers that the company is only the shareholders and therefore
the expense in remuneration is a cost that must be minimized by paying the minimum
possible to maintain constant quality levels, according to the laws of supply and demand.

The more fixed part there is in the remuneration, the more binding relationship there is
with the company, the more variable it is, the more it resembles a services or subcontractor
model.

Pay for Effectiveness

According to the criterion of effectiveness, remuneration is established based on the results

(productivity) that the worker contributes. Therefore, according to this criterion, the
remuneration will tend to be totally variable, the contract will have defined terms and will
be maintained as long as the wdor is positive.

To calculate remuneration, an attempt is made to identify what the worker's contribution is,
using various techniques such as number of sales, time and motion method, accounting
concepts, etc. In addition, criteria such as market average, degree of business maturity, risk
of going to the competition, etc. must be taken into account.

With remuneration, the bond that is fostered is of interest.

Remuneration not only has value in itself, but also has a comparative value of recognition.
If a person who earns well finds out that another person with equal performance earns
more, then he or she will feel a little dissatisfied.

Contribution to results should be a criterion, the main one, but not the only one. Therefore,
it is not advisable to only increase remuneration through promotion, especially if the new
position includes management. Command should be given by other criteria and not by
results.

Characteristics:

- It must be clear.

- The calculation method must be easily understood by everyone.

- It must be known before starting work.

- Payment must be made as soon as possible after completing the work.

- The remuneration policy must guide people's behavior towards the company's strategic
goals.

Giving back for Attractiveness

Remuneration alone does not increase attractiveness or distinctive competence. Intrinsic

motives must be emphasized.

The variable part must be linked to effectiveness and the fixed part to attractiveness. The
fixed part must be related on the basis of the employee's potential contribution to the
company's greatest distinctive competence, so it will be related to the category of the
position, the type of responsibility assigned, and the professional profile of the person
occupying it.

This allocated amount should be important but the main one because distinctive
competence is achieved with effectiveness and not with the ability to achieve it. The fixed
part is an “advance payment” of the expected results.

Non-required contributions should be encouraged and rewarded through suggestions and

ideas that generate savings through extraordinary payments. This type of remuneration
satisfies intrinsic motives. In reality, what this achieves is not to discourage suggestions.
This prize must be variable without limit, but rather based on a fair portion of the savings or
income achieved with the idea. It should be given to the person who generated the idea and
not to the boss.

Retribution and Unity

Remuneration alone does not build unity, identification or trust within the company. But it
is an ingredient that allows, given other conditions, the unit not to deteriorate. On the
contrary, unexplained or ununderstood deficiencies in compensation destroy unity.

There must be a part of the remuneration for circumstances such as illnesses of employees
or children, pregnancies, etc. It must be not significant, but symbolic, but it must exist. It
must be given in the form of advances, extraordinary payments, insurance, etc. It must be
non-significant because the company is not a charity, but when it does not care about
people, this idea that the company is not a charity would be just an excuse.
Seniority should not be an important criterion for remuneration but should not be
punished. Just like women's pregnancy. Punishing this destroys unity, but when it is well
understood and carried out by bosses it reinforces unity.

Considerations:

- Do not promise what you are not sure can be fulfilled.

- There should not be excessive salary differences.

- There must be a transparent criterion to justify the allocation of salaries.

- The remuneration must reasonably cover your needs and those of your family.

- It should facilitate the rest of people, especially those who do not have an 8-hour
schedule.

- Keep in mind that remuneration sends an implicit but eloquent message of how the
company values people's work.

- It is worth considering the convenience of setting high incentives that encourage

unethical behavior.

- Equity in the distribution of profits. It can generate discomfort when not all those who
participate in the results share the benefits.