How to distribute Overtime Labor cost of Exempt employees – Story of a joint family

A Prelude, but not a Pre-requisite to this blog is
Why reporting OT hours is important – A Lesson I learnt from my mom

Introduction

Joint families? Extended families living under the same roof with an ecosystem in which everyone supports one another. There are differences among members, but the common goal is the success of the whole family. In one such joint family (furniture builders since generations) there lived 4 brothers.  Their parents (Exec Management) live in the same house and are responsible for keeping the family tied together.

 Bro 1 Manages day to day affairs of the house like Finances, making sure all kids are taken care of, buying household supplies, etc. Overhead & Admin
 Bro 2 Goes out and finds people who are in need of furniture in their homes and convinces them to buy furniture from their 4th brother Sales and Proposals
 Bro 3 Builds and maintains the house like building new rooms, or furniture, etc. as the family keeps growing with more kids. Sometimes, he invents new type of furniture, which the Bro 4 can later mass produce and sell. Capital Cost
 Bro 4 Builds and ships the furniture. He also collects cash from his customers after he ensures the customers are happy with the product. Operations / Cost of Goods Sold

All the children (employees) of the house work for typically one of the brothers and are compensated with a fixed weekly allowance (exempt employees!!). There are a few children, though, who work for multiple brothers on a regular basis or a brother is helping another brother by lending one of his children.

The Story

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Why reporting OT hours is important – A Lesson I learnt from my mom

When I was young, I got a fixed weekly allowance. I was expected to do my chores of cleaning, laundry, grocery runs, et al, But, no matter how good or bad I was, whether I helped mom with the dishes or not, I would get that allowance and I would not be asked how I spend it or ever be threatened that you would not get it. You would think I was not motivated to do my household chores, but you’re wrong… Every school year my allowance went up slightly and I was allowed to marginally negotiate for my allowance. So, I grew up in an environment where I was an Exempt employee.

As I was growing up, I kept a journal and on the last page of the journal was the year’s calendar. I gave myself a star everyday I went overboard to help mom. During my appraisal, I would count my stars and remind mom of the incidents when the stars happened. She remembered all the black stars, so am sure she had a journal of her own 🙂 Turns out I was mostly a star employee of my mom and used to work much more than expected and it helped with my annual raise or she was not maintaining her journal well enough. Most importantly, it taught me the importance of maintaining a quick record of any extra time spent on doing my normal job duties.

Continue reading “Why reporting OT hours is important – A Lesson I learnt from my mom”

Why ERP needs nurturing after go-live

This damn ERP will never get better!!! It’s been almost 6 months now and I can’t get the reports and new issues crop up everyday!!!

Ever heard this before?

Over the years, I’ve seen clients getting frustrated for not being able to get their money’s worth after spending hundreds of millions and then there is painful change management. This frustration comes from the top and runs deep in the organization’s veins down to the intern hired for 2 weeks for data entry.

Top management complains: they can’t see the reports with accurate data from the system after spending millions.   Continue reading “Why ERP needs nurturing after go-live”