Tuesday, 30 December 2008

The annual corporate battle

The end is near. The end of the year I mean, and to say that this year is an eventful one is certainly an understatement. As the year comes to an end, it also marks the beginning of an annual affair in the corporate world. No, I am not referring to the annual year-end reporting period… I am referring to a battle… a domestic one… one that is going to be even more intense this year…

I am referring to the battle for bonus allocation…

31 Dec is a very common year-end period for a lot of companies. But unknown to many, that while the accountants slave it out to report the numbers, there are those in the corporate world who will commence their battle to justify their “performance”.

In a big corporation, it is common to have more than 1 unit or department that generates revenue. For example, a big corporation like General Electrics have manufacturing business, aircraft servicing, capital, etc. Sometimes, a single company can have multiple revenue centre too. Take a bank for example, it has the corporate banking unit, consumer banking unit, debt capital market, treasury, etc.

Sometimes, when a business deal is struck, it can be difficult to ascertain which revenue centre is to be recognised for the credit. It may be easier if the company is a product-based company, though still possible. But it becomes messy when a company is service-based. Mind you, being recognised is crucial as it converts to increment and bonus at the end of the year…. $$$$$!

A very real example, which I think many are aware is this thing about how that little mp3 device called iPod… is dying a slow death. And do you know who or what is killing iPod? It’s none other than the… iPhone.

I heard (which means it could be untrue) that the iPod unit in Apple is blaming the iPhone unit of killing their own kind. It may not be the case in Malaysia but people around the world prefer to buy an iPhone instead of an iPod, which makes perfect sense really. And due to this, iPod is not doing as well as it used to be. Come payment of bonus, guess who in Apple will be pocketing a fat pay cheque?

Trust me, the “battle” to get oneself recognised for the credit can be a bloody affair. You have absolutely no idea how one is willing to go just to make sure one’s bonus is secured, even at the expense of others. And due to the current economic turmoil, the bonus pool is much smaller, which in turn will intensify the battle.

In the place where I work, I have already witness small battle happening since months ago. As the accountants need to separate the bonus provision between departments, this is going to be a bloody war.

20 comments:

pablopabla said...

Better to work in a smaller company ;)

Anyway, how many have you slained in your battle? :D

day-dreamer said...

Happy 2009~

Life for Beginners said...

Me, I'm just glad I'm on leave from my office, then. LOL

myop101 said...

well, i still prefer my ipod... some things are better segregated...

Huei said...

r u in the war? =P

sigh..how nice would it be..to get bonuses..i've been working for 3 yrs+ now..n have no idea how that feels like..n won't be having any idea of that anytime soon!

anyway

HAPPY NEW YEAR!!! Have a GREAT one!!!

masterwordsmith said...

Thought-provoking article ...thanks Zewt!

Here's wishing you and yours a blessed 2009!

May each day be filled with joy, laughter, happiness, fulfilment and satisfaction.

cheers

sc said...

Happy New Year Zewt! Looking forward to more mind stimulating posts from you next year

Flyboy said...

My company never fails to give away bonus, including this year. I am blessed to work here. Happy New Year 2009 !!!

Purple~MushRooM said...

Still have bonus? I thought all freezed?

Happy New Year!!! May 2009 brings you lots of joy, happiness, laughter, luck and money!! Oh.. and sex too! ;)

gina said...

luckily, I am not into iPod or iPhone.. whatever.. Haha!

Happy new year, Zewt!

Andrew said...

hi bro!! just wanna wish you a blessed new year and God bless!! see you soon and plz practise your net shots.. hahaha =D LOL

Kadus_Mama said...

It has been long since i last dropped by here..
I just want to wish you a wonderful NEW YEAR 2009!!

vincent said...

This is very true.

I don't know how far it is true, but before Northern Rock's collapse, they allowed people to pay their monthly house loans through their credit cards.

So you imagine that - the same bank gives a housing loan and at the same time transfers that same loan back to themselves in a way. All because it was obvious that the housing loans department wanted to beef up their sales, as did the credit card department.

Ultimately, tragedy occurs.

zewt said...

pablopabla - hahaha... i am a good person, i seldom slay anyone :P

day-dreamer - same to you...

life for beginners - well, you're only away from the battleground, not the battle.

huei - seriously??? no bonus for 3 years. that really sucks leh.

masterwordsmith - not provoking enough :). thanks for the wishes.

sc - hope i can keep them coming...

zewt said...

myop101 - i wanna sell my iPod video already :P it's definitely iPhone for me in a few months time.

Flyboy - hello there, welcome to AZAIG. wow, what company is that?

purple-mushroom - still got, but will be peanuts. and they only cut the bottom. i got a way to check that... i will blog about it later.

gina - it's a good thing. and dont buy wii too :P

Andrew - i am a smasher lah... as long as my jumping smashes are still deadly, i am happy. haha!

Kadus_mama - hello there... thanks for dropping by again...

vincent - that must be the most creative way to make money from your own channel... evil. and wow...u agree with me? that's something new for the year hah!

taxy said...

Sacrifice the Pawns. Meanwhile, the Queen gets to fly all over the Board just to "protect" the lame one-step-at-a-time King. Damn liability to efficiency is what I say. The Knights shoulda staged a coup a long time ago.

kyliemc said...

i think iphone is more worthwhile because it has the functions of ipod as well... guess that is the reason which kills ipod...

my bonus never exceeds rm 400 because of company policy... :s gosh....

zewt said...

taxy - in the meantime, i shall do some castling.

kyliemc - 400!!!!!!!!!! that's... ok... i shall not say anything...

kyliemc said...

ya... :( i was shocked... big time... co policy is a largely misused word...

zewt said...

kyliemc - change job... seriously....