8th September 2008, 03:04 PM
Posted by diggingthedirt:
Just like anyone else, the owners of such companies do want to make money for themselves. However, in my experience, they usually have two other motivations that usually get a higher priority:
1. Make sure the business survives;
2. Make sure the business grows, up to a point.
The point concerned is usually either the point where the owners/partners no longer feel they can manage the company in that form, or the point where it gets too big for them to carry the financial liabilities themselves. Both of those points vary according to the abilities, resources and numbers of the owners/partners.
Most such owners/partners will pay themselves a salary, just like any employee. The salary concerned is not always necessarily much more than they pay other employees. Any surplus after that is usually ploughed back in to the company, contributing to its survival and growth.
One big difference between employees and owners is that it is common for owners to reduce their own salaries, defer payment, or even waive them altogether, if they have a cash-flow problem. That might be because the company is having a hard time, or because it is doing very well but really needs to invest in infrastructure or staff to maintain that success. I promise you that this really does happen; my own father, who was MD of his own company, didn't take a salary for 5 years at one time - he lived on expenses and benefits in kind, but didn't take any actual money. He wasn't unique.
It is true that, once a fee has been agreed for a defined piece of work, an unscrupulous and profit-oriented business may look for ways to cut corners. However, that isn't unique to archaeology either - just have a think about building contractors. So, you need to monitor anyone doing the work to make sure they do it properly.
One of the key roles played by consultants includes monitoring archaeological contractors to:
- make sure they do fulfil all their contractual obligations;
- make sure they only get paid for work actually done;
- make sure they don't do extra work (to get paid extra) unless there is a good reason for it.
That role is exactly equivalent to the role played by an architect during the construction phase of a building, or the civil engineering consultant during the construction of a bridge, and so on.
1man1desk
to let, fully furnished
Quote:quoteActually, although CSR is a good thing, that is not what I am making a case for. My case relates to good business management, not CSR. You make part of my point for me when you say:rimarily for 1Man1Desk. I'm intrigued by this concept of 'moral imperative' but still feel uneasy... You are making a business case for Corporate Social Responsibility...
Quote:quote:Investing in both people and infrastructure will lead to a better service to our clients. This will increase sales and profit resulting in a greater yield that can then be reinvested in the business.What you have to consider is the primary motivation of the managers of small-medium businesses, which would include all or most archaeological units in the UK. These are not publicly-quoted companies with shares on the stockmarket. They are either the commercial wing of a charity or council, or companies privately owned by an individual or a small partnership. I will focus on the private companies, as these are the areas where the profit motive is most applicable.
Just like anyone else, the owners of such companies do want to make money for themselves. However, in my experience, they usually have two other motivations that usually get a higher priority:
1. Make sure the business survives;
2. Make sure the business grows, up to a point.
The point concerned is usually either the point where the owners/partners no longer feel they can manage the company in that form, or the point where it gets too big for them to carry the financial liabilities themselves. Both of those points vary according to the abilities, resources and numbers of the owners/partners.
Most such owners/partners will pay themselves a salary, just like any employee. The salary concerned is not always necessarily much more than they pay other employees. Any surplus after that is usually ploughed back in to the company, contributing to its survival and growth.
One big difference between employees and owners is that it is common for owners to reduce their own salaries, defer payment, or even waive them altogether, if they have a cash-flow problem. That might be because the company is having a hard time, or because it is doing very well but really needs to invest in infrastructure or staff to maintain that success. I promise you that this really does happen; my own father, who was MD of his own company, didn't take a salary for 5 years at one time - he lived on expenses and benefits in kind, but didn't take any actual money. He wasn't unique.
Quote:quote:...The imperative is commercial not moral, and this is particularly problematic in archaeology where the market is an artificial creation, with buyers purchasing a service that enables them to discharge a planning condition.Archaeology is certainly not unique in the 'artifical' nature of the market. The same could be said for any other environmental field, although it does not stop there, and most of those other fields are fully commercialised.
Quote:quote:It is true to say that any organisation must obtain at least as much as it spends, but lets be honest here. To obtain more in archaeology is most easily achieved by doing less archaeology.Actually, that is not true. The fee paid is usually proportionate to the scale of work, so you get more for doing more.
It is true that, once a fee has been agreed for a defined piece of work, an unscrupulous and profit-oriented business may look for ways to cut corners. However, that isn't unique to archaeology either - just have a think about building contractors. So, you need to monitor anyone doing the work to make sure they do it properly.
One of the key roles played by consultants includes monitoring archaeological contractors to:
- make sure they do fulfil all their contractual obligations;
- make sure they only get paid for work actually done;
- make sure they don't do extra work (to get paid extra) unless there is a good reason for it.
That role is exactly equivalent to the role played by an architect during the construction phase of a building, or the civil engineering consultant during the construction of a bridge, and so on.
1man1desk
to let, fully furnished