Differentiation and Enterprises

Is there any relationship between the type of enterprise and the execution of differentiation policy. Well I thought about it and did some research and this is what I found.

Implementing new policies like differentiation and other Change Management interventions is easier in Private Enterprises and easier said than done in PSU’s and govt. depts..

There is a tendency in PSU’s to resist differentiation between top performing and under performers. With the concept of Unions and job security in PSU’s and govt. organizations it is hardly possible to fire the bottom 10% performers before they start spreading the inefficiency syndrome and party culture in an organization.

In private organizations with hardly any concept of Life Time Employment the above problems are not encountered and differentiation can be exercised easily. Thjs also creates continuos improvement even in the best with best being recruited all the time leading to a multiplier effect and a gain of immense employee productivity and effectiveness.