Balneus

Australian Lefty on Politics, Governance, Science and Info Management

Mitsubishi MANAGERS mucked up

Posted by Dave Bath on 2008-02-06


I haven’t seen anyone in the press correctly assign blame for the closing of the Mitsubishi plant in SA.

Some have argued for better industry assistance, some blame the taste of the Australian public.  At least no-one blames the efforts of the workers. 

Mitsubishi has been making cars that are unsuited to the times, so the fault lies with those who decided to make cars in a shrinking segment: senior executives from between 10 and 3 years ago.

It doesn’t take a genius to realize that in many things, consumers want smaller and more efficient.

I wonder if each of those executives received a performance bonus?

This is an example of a general problem: senior managers and executives are too highly rewarded, even if they screw up, and and special bonus should only be given after the time it takes for their decisions to take effect: between 2 and 5 years in most businesses.

There is too little incentive for senior managers and executives to actually perform.

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