Recent research suggests the reasons behind inequalities widening between rich and poor, between growing inequalities within countries of an ‘inequality gap’ that is widening. According to a 1991 study a key contributing factor has been development of organisation culture and management as a tool and method of business. This links directly to the of work of Taylor in his The Scientific Method of the 1920s on work rationalisation and efficiency thinking .
An Economist article recently published called ‘Revisitng Ricardo’ suggested the reasons for this disparity lay in education. It seems better educated and higher skilled individuals who develop business acumen skills create networks with individuals and organisations in advancing economies that help them move to higher standards of living. On the other hand the uneducated and unskilled who are unable to do this, get even further behind and even lose access to their previous connections to wealthier individuals.
The gap is widening. Wealth is moving to smaller and smaller group of individuals, companies and countries. Consequently economic development can help the top but hurt the bottom.
One definition of economic development points to factors such as good early education, high savings, investment in infrastructure such as roads, water, electricity. In developed economies some people have privileged views of education, housing and work. While in poorer economies many families have little access to higher standards of living or access to education for their children.
Another factor influencing economic disparity is the rise of automated jobs. Where once highly skilled craftsmen passed their skills from father to son, the work in the 20th century was considered mostly algorithmic and with the rise of technology was reduced to a script or formula, whether in computer programing, accounting law. This type of work is susceptible to the carrot and stick incentive, and work that is now easily automated.
These types of jobs in the 21st century are now automated, creating algorithms for tasks, automating work by establishing a set of instructions to follow to one conclusion, that is one algorithm for solving it. This becomes repetitive, uncreative and as a result of deskilling creating a newer class of ‘poor’ and ‘uneducated’.
However rise in the growth of another type of work based on heuristics is increasing, because it is hard to automate. Most new roles being created are in heuristic work. This requires a good deal of business acumen and creativity as no algorithms exist for it and requires devising a novel solution. For example, working as bank teller is mostly algorithmic, but creating a marketing campaign is mostly heuristic. You have to come up with something innovative and new.
Research suggests that because these types of roles require a higher degree of creativity and business acumen, it is harder to incentivize financially in effective ways, since these incentives appear to reduce productivity, according to motivational studies. While these individuals want to be well rewarded financially for their work on an external level, there is an intrinsic reward on an internal level of working in creative and challenging ways. There is an intrinsic need of all people to progress.
Business acumen is fast becoming an important skill for the future.
Executive Talent Consulting specialises in partnering with organisations to source highly innovative talent who have a high degree of business acumen. Permanent & Contracting www.executivetalent.com.au Contact Us info@exeuctivetalent.com.au
