OPINIONEvery economic agent expects to obtain, claim, or buy something in property. Thus, in the long run, it is property rights that set the "game rules" in society.
In a company, employees' roles and responsabilities represent property rights. Property rights enable the businessman to capture the value that they have created and given to the client. And this value can be utilized by the businessman to create additional value. Property rights provide a strong incentive for businessmen to take care of and improve their property, in order to increase its value in the long run. Property rights, or game rules, create incentives for the employees to manage their departments in a correct, efficient, and prudent way.
Growing companies need to establish programs that will maintain their employees focused and committed. An excelent program is to give higher management the opportunity of becoming company stockholders. If this participation is to resemble property rights, employees must "earn" their stock as they create value for the company owners. Employees who believe in the company's future will be ready and willing to buy stock.
A society without property rights will crumble. A society that watches over its property rights awards those who invest time and energy in the creation of value for others. If this is the environment you want for your employees and your company, consider making a clear definition of property rights, or game rules, in your company.
Write to us at agg@guate.net