The Molecular Business

This entry is part 26 of 34 in the series 2011C

TEACHER: Today we are going to talk about a dynamic new business idea. It is, perhaps, the first really original business concept since the establishment of free enterprise. It is called the MOLECULAR BUSINESS and is designed to benefit the many instead of the few.

In the beginning of civilization men and women worked instinctively together for the benefit of the tribe or group. Each person had his job, but generally the assets of the group were shared equally according to need, except in cases where the strong took from the weak. There were jobs but no business as we now know it.

As the tribes gathered together and formed kingdoms private business began to be created and people found that by their superior intelligence, hard work, and cunning that they could gain an advantage over their neighbors as long as they found favor in the sight of the king. Thus men began to be divided into two general classes: The rich and the poor. In those days financial security was almost impossible even for the rich for all their wealth could be confiscated by a displeased ruler. The poor generally had no private business or job at all, but were often slaves with no hope for financial abundance.

The third stage of business evolution appeared after the establishment of the democratic society and the freeing of the slaves. At this point we see the establishment of big business and the emergence of the entrepreneur. In this age we find that competition has reached a high point. Everyone in our world today is either directly competing or working for someone who is competing for their share of the market place.

We are now reaching a point in history where there will emerge the next great evolutionary step in business, and we already see foreshadowings of it in the business world. Can you guess what is replacing the competitive business?

STUDENT: I’m not sure.

TEACHER: Have you heard of cooperatives?

STUDENT: Yes.

TEACHER: Can you tell me how they work?

STUDENT: Basically, there is no one owner, but employees and stockholders all own and operate the business cooperatively.

TEACHER: I’m sure you have also heard of profit sharing haven’t you?

STUDENT: Yes.

TEACHER: Tell me how you understand this principle.

STUDENT: I understand that the employees are paid in addition to their wages a percentage of the net profits of the business.

TEACHER: Why do you suppose that cooperatives and profit sharing programs have been so successful?

STUDENT: I suppose that they help keep the employees involved.

TEACHER: Even the corporation that sells stock requires a high degree of cooperation and group effort. Such a company has many owners and many people directly benefit from its profits. The corporation, profit sharing, and the cooperative all foreshadow the next great stage of business evolution that will replace the competitive society. Can you guess what that is?

STUDENT: It looks like we are moving towards greater cooperation. (The student may not give this exact answer so the teacher may have to guide him toward it.)

TEACHER: We will soon leave the competitive society and enter a cooperative one. The New Testament gives us an ideal to which the cooperative society will strive. Turn to Acts 4:33 “And the multitude of them that believed were of one heart and one soul: neither said any of them that ought of the things which he possessed was his own; but they had all things common.”

Would you say here that it would take a great deal of cooperation to have all things in common as did the early Christians?

STUDENT: Yes.

TEACHER: It gives us the basic reason as to why they could cooperate to this extent. Can you find it?

STUDENT: It says that they were of one heart and soul.

TEACHER: If everyone is of one heart and soul then competition automatically ceases and cooperation is the natural course. Cooperative efforts if forced will never excel over a competitive effort, but if cooperation happens naturally then the results will exceed a competitive group.

The key to making a cooperative effort work is to have one mind and heart toward the task at hand whether it is converting the world to Christianity, making a marriage work, or running a business. Let’s talk about this principle in the creating of a successful business. Would you say that most of the people working for the various companies have one heart and mind directed to the benefit of the business or is it that there are generally only a few dedicated toward the good of the whole and the majority are dedicated to getting the most money with the least effort?

STUDENT: I would say that the latter is true.

TEACHER: But if everyone were of one mind and heart this would not be the case. Therefore, we must discover those principles which cause separation in business and correct them. Can you name some of the divisions or classifications of people involved in a typical company?

STUDENT: There are the owners and non owners; management and labor; those who make a lot of money and those who do not.

TEACHER: Would you agree that as a general rule that the owners are much more concerned about the health of the company whereas the non-owners are more concerned about their paycheck?

STUDENT: Yes.

TEACHER: Would you also agree that there is generally distance between labor and management because labor is at the mercy of management and has little input as to how the company is run, and management often has little sensitivity toward the concerns of labor?

STUDENT: That sounds correct.

TEACHER: And would you further agree that those who are low on the pay scale often feel jealous and separative from those who make a lot of money?

STUDENT: Yes.

TEACHER: The old saying decrees that “The taste of the pudding is in the pie”. We can see in real life that there is little social intercourse between owners and non owners; management and labor; the rich and the poor. Have you noticed this?

STUDENT: Yes.

TEACHER: All three of these problems keep the people from being of one heart and mind, but the Molecular Business will correct them all.
First, the division between owners and non-owners will be eliminated because in the Molecular Business all will be owners. Each payday the worker is paid not only with money but a portion of his recompense is in the form of increasing Company ownership, generally in the form of stock. The division of owners and non-owners thus comes to an end as all are owners to some degree. Do you think this would make people feel more involved with their company?

STUDENT: Yes.

TEACHER: Solving the division between management and labor is a little more complex, but still relatively simple. The Molecular Business management is somewhat comparable to our democratic government whereas existing business government is comparable to totalitarian governments such as Cuba where all authority is invested from the top down instead of from the bottom up. Do you understand the difference of authority placement between the US and a totalitarian state?

STUDENT: I think so. In Cuba the leaders have supreme authority, but in the United States the people do – at least in theory.

TEACHER: Let us describe it this way. The authority in Cuba is from the top down. That means that those in high positions have complete power over those below them. The higher can criticize the lower, but the lower cannot criticize or even suggest that the higher may be wrong.

In the United States the lower can criticize the higher and has power to remove the governing authority from power. The higher can also criticize the lower but is very hesitant to do so for he does not want to offend those who elected him. Thus he only makes a criticism when he is sure he is accurate. Have you heard the President or any other elected official criticize the common man lately?

STUDENT: Only at their peril.

TEACHER: On the other hand, did you notice that the first thing a totalitarian leader does when he gets in office is blame all the troubles of the nation on the common slothful worker?

STUDENT: I do seem to recall that.

TEACHER: Which system do you think works the best: government authority from the top down as in totalitarian states or from the bottom up as is supposed to be in the United States?

STUDENT: The US, of course.

TEACHER: Doesn’t it seem logical that if the bottom up governing system works so much better with a nation that it would also work better with a business?

STUDENT: I suppose.

TEACHER: Doesn’t it also seem strange that the business world has held on to the top down government that belongs to the dark ages and has never in history switched completely to bottom up management?

STUDENT: I suppose it does.

TEACHER: The Molecular Business has a democratic government with control from the bottom up. This concept will revolutionize the business world and dramatically increase the economic stability of the individual.

Let us examine exactly how the bottom up approach in the Molecular Business works as compared with the status quo:

If you work for a regular company today you often begin as a common worker and over you will be a foreman, supervisor, or some type of “boss.” This boss is always right and if you see a better way you normally remain silent. He has complete power over your job and can terminate you on a whim. In essence, for eight hours a day you are his slave. If you have a good master your job will be tolerable, but if your boss is a tyrant you can loose all sense of freedom and you experience for eight hours a day what those in a dictatorship experience all their waking hours.

By contrast, the supervisor in the Molecular Business does not have any such totalitarian power over your job. He can only suggest that you be terminated. And who do you think he has to suggest it to?

STUDENT: His Boss.

TEACHER: His boss would have nothing to do with it, but the supervisor could only suggest termination to your local group of fellow employees. After that they will vote and the manager has to have a two-thirds majority before he can fire you. One of your fellow employees can challenge the boss for his job and call for a vote. If he succeeds they will change positions. Can you see how this will have the effect of taking away your fear of the boss, but making him work harder to get along with your fellow employees?

STUDENT: Yes.

TEACHER: In a regular company if you want to get a promotion you have to catch the attention of your manager and somehow convince him you are the one for the next promotion. Have you noticed that those who are often promoted are those who are best at making a show when the manager is around?

STUDENT: Yes.

TEACHER: Who are the ones who really know whether or not you are doing a good job?

STUDENT: The fellow workers.

TEACHER: Your fellow workers are usually with you much more than the manager and they tend to be less biased then the manager. Thus in the Molecular Business any promotion you attain has to be voted on by them. Who do you think decides whether or not you should be nominated for the position of a new supervisor, for instance?

STUDENT: The follow employees.

TEACHER: This may surprise you, but neither your boss nor the employees decide this, but you do. Isn’t the first qualification of a good manager the fact that one must believe that he can do the job, and, above all, want the job?

STUDENT: I guess so.

TEACHER: Therefore, if you believe you can do a better job than your current supervisor all you have to do if you want the job is to challenge the person for his position. Unless two thirds of the employees object the group will have an election and after the votes are tabulated you will be the new manager if you receive the most votes.

Now you are the new supervisor and you are aware that you can be replaced at any time by one of your subordinates are you going to have an incentive to do a good job?

STUDENT: I would think so.

TEACHER: Do you think you will try hard to treat those under you with consideration and kindness?

STUDENT: I would imagine so.

TEACHER: Now you are a supervisor and have learned the ropes you begin to study the position of the area supervisor and realize that you could do a much better job than the person currently there. If you desire you can challenge that person for his job just as you previously did with your supervisor. If all your fellow supervisors vote for you instead of the current position holder you will move up again. You can continue to challenge and replace superiors until you reach your highest level of competence.

In a regular business a person of talent is often viewed as a threat by his superiors and is suppressed in a low position for many years, but in the Molecular Business he will be able to advance very quickly. Why will this be good for the Company?

STUDENT: Key positions will always be held by people of talent who will be better able to help the Company.

TEACHER: Even people who have a good rapport with management will have to work many years to reach their highest level, but can you see how in the Molecular Business any person can reach his highest level of competency in a short fraction of the time?

STUDENT: Yes.

TEACHER: This also corrects a problem that has been called THE PETER PRINCIPLE which states that in a large company each person raises to his highest level of incompetence. In other words, a person is promoted until he reaches a position he cannot do well then he is promoted no more. Neither is he placed back in a position where he is competent. Instead he is locked into a position where he is incompetent, unhappy, and able to make the working lives of others miserable.

In the Molecular Business this would never happen for when a person reaches a position wherein he does not perform well then it will not be long before he is challenged and replaced. It is obvious that this will be benefit the company, but do you also think it will benefit the individual replaced in the long run to be in a position he can do well rather than one where he can not?

STUDENT: Yes.

TEACHER: Can you see how the Molecular Business will create a situation here where the individual has more freedom and can express ideas without fear of getting fired?

STUDENT: Yes.

TEACHER: Can you see how this concept in the Molecular Business will end the division between management and labor and help them come closer to the goal of one heart and one mind?

STUDENT: Yes.

TEACHER: The third area that creates division among employees in a regular company is the great differences we find in the pay scale. Those who make a lot of money rarely are seen socially with those who do not. This third cause of division is also eliminated in the Molecular Business. This solution may sound radical at first until the whole picture is presented, but all employees in the Molecular Business receive the same take home wage whether he be president of the company or a new worker on the assembly line. Now we realize that common workers would be easy to hire at any reasonable wage, but I’ll bet you are wondering how we can hire and keep management level employees that could make $100,000 or more with another company than with us. Is that right?

STUDENT: Yes. I am curious about that.

TEACHER: Let us say that the pay scale established by the Molecular Business (and these could vary with different businesses) is $40,000 a year. Very few people who are currently making from $100,000 and up will be attracted to us. But remember this that most of them started at a much lower pay scale. Don’t you think that there is a lot of very talented people out there that would start with us for $40,000 and would stay with us if they saw enough benefits?

STUDENT: Possibly.

TEACHER: They will stay with us because they receive payment with more than money. Remember that we told you that all workers are also owners?

STUDENT: Yes.

TEACHER: The employees (more appropriately called co-owners) are paid with stock or ownership in the company in addition to their take home wage. With every paycheck they receive an increasing ownership in the company as well as cash. Now we told you that all receive the same take home wage. Nevertheless, superior performance or responsibility still needs some kind of reward or bonus doesn’t it?

STUDENT: Yes.

TEACHER: In other words, people need incentive, don’t they?

STUDENT: Yes.

TEACHER: In the Molecular Business incentive is created in two ways. First there will be a high degree of involvement and employee satisfaction. Secondly, instead of using money, stock is used as the physical incentive

As we stated all employees from the greatest to the least receive some payment in stock, but this payment varies according to the importance of the person’s position. The entree level worker, for instance, may receive something like two hundred dollars worth of stock a month whereas higher management or workers with essential skills may receive $5,000 to $10,000. That amount of value ought to give some incentive, shouldn’t it?

STUDENT: One would think so.

TEACHER: This principle creates an extension of the most motivated worker in the world. That is the small business owner. Have you noticed how some business owners will work as many as 14 hours a day sometimes seven days a week just to get his business going?

STUDENT: Yes.

TEACHER: In addition to sacrificing family and pleasures the successful small businessperson, when he is starting a company, will pay himself only what he needs to live on and put the rest back in the company. Why is he willing to do this?

STUDENT: So he can have working capital.

TEACHER: He sacrifices now to obtain working capital in the hopes that his business will be successful. And if it is then he can draw out all the money he needs for pleasures later. He will also be financially independent and not have to work so hard. That’s pretty good incentive isn’t it?

STUDENT: It seems to be.

TEACHER: It is an incentive that has been proven to work. Now the Molecular Business will operate on this principle. Visualize all the workers in a large company as one entity that owns a business. The many people cooperating as if they were one take from the company what they need to live on now and receive the rest of their payment in the form of stock so working capital remains available for expansion. If the company is successful the stock will multiply in value and the workers can eventually cash this in and obtain all the pleasures they want in life as well as financial independence. That sounds like a good idea doesn’t it?

STUDENT: Yes.

TEACHER: To make this principle work the employees are not actually issued the stock on their payday, but it is credited to them. They can receive the stock and cash it in on three occasions. The first is if they are terminated or quit the company. The second is if they retire. It would make a nice retirement income wouldn’t it?

STUDENT: Yes.

TEACHER: The third reason for cashing it in is very interesting. The desire of many enterprising individuals is to be financially independent and have a business of their own. If they wish to create another business that is an extension of the mother Molecular Business then they can cash in their stock, and possibly even get a loan from the company, and create a business of their own. A lot of people would really like to own their own business wouldn’t they?

STUDENT: Yes.

TEACHER: On the other hand, workers do not have quit or wait for retirement to receive greater financial benefits. As the company makes greater profits where do you think the extra money will go?

STUDENT: The employees.

TEACHER: That’s right. As profits increase the take home salary of all the workers increase. If the company is successful eventually all the workers will receive a substantial wage. That would create one happy family of employees wouldn’t it?

STUDENT: It surely would.

TEACHER: When the principle of the Molecular Business proves that it can create more success than anything now existing then many other businesses having financial troubles will want to come under the umbrella of the mother company. The beauty of this is that all businesses under the Molecular Principle will not compete, but cooperate with each other because if one benefits they all benefit. The mother company corresponds to the Constitution and the branch companies are liken to the independent states. Can you see that if the Molecular Business really is superior that many other companies will join it?

STUDENT: Yes.

TEACHER: And if it does far outperform the orthodox business then it is only a matter of time before all businesses are molecular isn’t it?

STUDENT: I would suppose

TEACHER: That would really change the world for the better wouldn’t it?

STUDENT: It would seem so.

TEACHER: We stated at the beginning that there are three things that keep workers in a state of separateness: income differences, management-labor relations, and the fact that some are owners and others are not. Can you see how the Molecular Business ends these differences?

STUDENT: I believe so.

TEACHER: Can you see how, when these principles are implemented that the people involved in the Molecular Business will really be of one heart and one mind?

STUDENT: Yes.

TEACHER: Is this something you would like to participate in?

STUDENT: I really would.

 

Copyright 2011 by J J Dewey

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