Chapter
Layers of People in Companies
39:54 - 46:06 (06:12)
The incentive in companies is to have layers and layers of people where the top performers are unknown over time, as it promotes hiring and promotion of personnel. The existence of the 80/20 principle where 20% of people do 80% of the work would still exist, but at a higher level, sharing of information would be limited as layers are added in a company.
Clips
The speaker explains the differences between the 80/20 rule and the 15/20 rule regarding top performers.
39:54 - 42:58 (03:04)
Summary
The speaker explains the differences between the 80/20 rule and the 15/20 rule regarding top performers. The speaker argues that hiring fewer, more qualified people and paying them well is a better business strategy than hiring many people.
ChapterLayers of People in Companies
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As companies grow larger, layers of management are needed for communication and coordination, often resulting in higher salaries for those who manage larger teams.
42:58 - 46:06 (03:08)
Summary
As companies grow larger, layers of management are needed for communication and coordination, often resulting in higher salaries for those who manage larger teams. However, this growth also comes with investment in communication and coordination.