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Wednesday, May 27, 2015

THE LAW OF DIMINISHING RETURNS - ECONOMICS AND #UGANDA PAY ATTENTION

Most of my friends and family know about the Law of Supply and Demand.  They also know about the Law of Diminishing Returns.

Supply and Demand is easy.  High Demand compared to Supply leads to lower prices.  High Supply compared to Demand leads to lower prices.

To understand this, one only needs to think about an over supply of tomatoes and Uganda is not a country that processes too much.  In this case, the tomatoes become very cheap with over supply because we are not processing them into long lasting products.  Most of my non Ugandan friends get this very easily.

Now let us talk about Diminishing Returns.  You invest a lot hoping to get return on your investment. Everyone does their best and you reap profits.  At one point in time, your workers become burned out from long hours and produce less via mistakes in what they do.  In that case, you need to give a break to your workers. OR else, every mistake they make while burned out will cost you a lot of money to fix the errors.  Give your people a break so they can refresh and return in form and produce.

Some companies have instituted forced vacation and you are not allowed to use our phone or access your social media so  that you can relax, rejuvenate and spend time with the people who matter.  This avoids the Law of Diminishing Returns to set in.  In fact, if you do research, most of the biggest corporations in the world have systems in place to avoid employee burnout.  You can burn out one employee to beat a deadline but if that employee collapses on the job, you now have an employee you have to pay and then a temp to do their work.  So you end up paying 2 people to do the work.  STOP burning out your people because the health benefits will cost you a lot of money.

Canada has strict employment and work safety regulations.  Most times you have to pay the salary of the person you burned out while paying someone to replace them.  It is your choice.  Treat your people right and avoid burning them out and then you will not end up paying two people at the same time which erodes your bottom line.  An employee who needs time off should never be considered as a lazy one because most have experience that a replacement off the street cannot do.

Think about it.  Allow your people time and support them so that they do not get burned out to cost you money for replacing them. If you do  not believe me on this one, ask Apple and Google who moved a lot of their work to China where employees were jumping off the 5th floor to their death as the pressure was too much.  Foxcom - anyone?  This is coming near you so as a manager, beware.  You can move the job anywhere but do you want to be responsible for work burn out and have people die and you end up with the blood on your hands?

The law of diminishing returns is very evident in Uganda.  We see many in our own parliament who sleep in sessions.  Give them a holiday or retire them.  This is common sense.

For God and My Country
Moncton, Canada
Born and Raised in Uganda (Bududa District)
Martha Leah Zesaguli (Nangalama)
BELIEVE! I wept because I had no shoes until I saw a man who had no feet." Ancient Persian saying  I am a Social Justice and Human Rights Activist. Find me on Face Book.  All my opinions are mine and do not reflect on any employer or organisation. 
Mobile +1-506-871-6371
http://nangalama.blogspot.ca/2015/05/the-law-of-diminishing-returns.html

Tuli Bakoowu.

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