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Henry Ford said his management principles could be applied to schools, hospital and the railways. PA Images

Op-ed The civil service should be run as if it were a company

Simon Cunnane, a reader of TheJournal.ie, has been following the commentary on civil servants’ ‘privilege days’ – and believes those running it could learn a little from the management style of Henry Ford.

THE NEWS THAT civil servants will hold on to their two ‘privilege days’ following a ruling by an arbitration board has been greeted with a lively debate in TheJournal.ie’s comments section. One reader, Simon Cunnane, articulates his thoughts on the ruling:

FOR the record, I don’t hate the public sector. I just hate the way it’s run. The recent coverage of “privilege days” only serves to reinforce my view.

The “Yes, Minister” style of management is fun to watch in a sitcom scenario but efficient, it is not.

People have commented here and in other forums that a country is not a company and should not be run as one: “A Taoiseach is not a CEO”, “The people are citizens, not worker bees”, “There are too many variables”, “The types of decisions are varied and complex”.

All ridiculous arguments, of course. It’s all about processes.

I’m reading Henry Ford’s “Today & Tomorrow” at the moment and while my interest is predominantly manufacturing (as was his), Ford applied his principles of factory management to schools, hospitals, railways and farming. His take was that everything should be in private ownership as only then will real efficiencies become apparent.

Morale improved drastically

His employees were the highest paid in the industry. In 1914 he stunned the American industrial world by DOUBLING the hourly rate he paid his employees and also by reducing the work day from 9 hours to 8. “It was the best cost-cutting measure we ever made” he stated. Absenteeism fell sharply, morale improved drastically and efficiency increased exponentially.

His opinion was that his employees should also be his customers and that the more that people were paid, the more cars they would buy from Ford as well as being able to provide for their families quite comfortably. He did all this while DRAMATICALLY REDUCING the cost of producing a car.

He didn’t believe in a bonus culture or piece rate. All staff were paid a basic wage for working 8 hours a day, 5 days a week with no overtime. Some staff were members of trade unions but the unions never had a dispute because the staff were paid well above average.

Henry Ford was the most logical thinker of his time. He broke everything down to the bare facts and figures and saw everything as a process. He had TWO layers of management – Office (Administration) & Shop (Production). The supervisors in each area were also regular workers and only became supervisors if problems arose, which they rarely did.

The best way today is not necessarily the best way tomorrow

In the private sector, companies manage processes and find the most efficient way of doing each one. The best way today is not necessarily the best way tomorrow and people are encouraged the find new and better ways of doing it. In most cases, they are not given, nor do they seek, a bonus/pay rise/extra days holiday for doing this as it’s part of a very transparent agreement between the company and its employees.

The public sector is also made up of a number of processes. Different processes, perhaps, but no less complex than those in the private sector. Processing a passport application is a process. Teaching a child is a process. Open heart surgery is a process. You find the best way today, do it, improve it and get paid a fixed wage for doing so.

While members of the civil service are public servants, they are the administrators of the state and as administrators, they should be paid accordingly (LESS, basically).

On the other hand, it is my belief that nurses, teachers, guards & other front line public sector staff should be paid €100,000 net per year. Why? Because the job they do is one of the most important in our society. The protect us, take care of us and help us to learn. But they are frustrated in their jobs, blocked from implementing ideas and tied down by a system that eventually converts many of them from qualified, motivated people to the public sector worker everyone loves to hate – “The Entitled One”.

Of course, for this new 6-figure salary, my future government will expect a number of things in return:
  • Privilege days – Gone.
  • Bonus culture – Gone.
  • Overtime – Gone.
  • All forms of monetary reward outside of the basic salary – Gone.
  • Oh and by the way, the school year will be extended to 46 weeks.
  • Annual training will be conducted for 2 weeks per year and holidays will be 4 weeks maximum.
Identify the process. Find the best way of doing it. Do it. Improve it. Repeat.
A country is not a company. But it should be run like one.

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71 Comments
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    Mute Diarmuid Lucey
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    Oct 31st 2016, 9:20 PM

    Out of a population of 325 million how can either Trump or Clinton be the the two candidates left for presidency?

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    Mute Robert Burke
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    Oct 31st 2016, 9:39 PM

    Trump beat a field of 17 republican candidates while receiving the greatest number of votes from any republican candidate in history.

    I get people don’t like his rhetoric but if I’m being honest I don’t see how everyone says he is such a terrible candidate.

    He wants to clean up corruption in Washington by imposing term limits and stopping lobbying by former government officials. He wants to repeal and replace Obamacare. Give the biggest tax cut in the nations history.

    He wants to tax US corporations who leave the U.S. For cheaper labour markets and he will stop TTIP, TPP and TISA and lead the return to nation state democracy where countries negotiate with each other on an individual basis. He wants to reform the university payment scheme to make it more affordable to all Americans.

    He said he wants to put an end to the imperialistic policy and the only foreign engagement he speaks of is that he wants to work with Russia and Syria to defeat ISIS.

    Whether he can implement all these policies if he manages to win, remains to be seen, but if he brings change from the Washington establishment who have done nothing for the poor in America and their imperialistic policies abroad I think he will surprise a lot of people.

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    Mute frash
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    Oct 31st 2016, 10:40 PM

    Clintonites don’t really know themselves why they hate Trump. They don’t care about democracy or peace they just care that Trump offends their senses a little and all the right people seemed to be going with Clinton.. ask any of them why she is a good bet and see what answers you get

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    Mute Dave O Keeffe
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    Oct 31st 2016, 11:23 PM

    I care that Trump has never been told no and taken it seriously. I care that he has shown poor judgement repeatedly. I care that hire chickened out of one of his major policies upon meeting a president. I care that he has never done a thing for anybody that doesn’t share his bloodline.

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    Mute Patrick Gough
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    Nov 1st 2016, 12:48 AM

    diarmuid stop stating the bleeding obvious.

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    Mute Scutterjocks O'reilly
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    Nov 1st 2016, 1:35 AM

    @Diarmuid Lucey: ducking voodoo magic man

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    Mute Seán O'Keeffe
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    Nov 1st 2016, 2:05 AM

    Can i please get some of what you’re smoking?

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    Mute Eamon Mac Gowan
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    Oct 31st 2016, 9:15 PM

    Hillary should be tried for Treason, I can’t understand how anybody could vote for such a disreputable woman.

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    Mute Simon
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    Oct 31st 2016, 9:34 PM

    @Eamon Mac Gowan: Oh I dunno. Maybe because her competition is DONALD TRUMP

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    Mute Eamon Mac Gowan
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    Oct 31st 2016, 9:43 PM

    @Simon: He’s just a loudmouth, he’s not responsible for hundreds of thousands of deaths like Hillary is.

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    Mute Watcher-on-the-Wall
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    Nov 1st 2016, 12:11 AM

    @Eamon Mac Gowan: Yet,

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    Mute Dave O Keeffe
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    Nov 1st 2016, 12:32 AM
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    Mute Eye_c_u
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    Nov 1st 2016, 12:37 AM

    Think you need to check definition of treason there Lad. Secondly, evidence that she killed hundreds of thousands please? Please if it’s rt or any other cookey site don’t bother. I for one look forward to president Clinton visiting Ireland

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    Mute Patrick Callahan Grisley
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    Nov 1st 2016, 10:57 AM

    @Eamon Mac Gowan: Evidence of these “hundreds of thousands of deaths”?? Is it from these terrible emails that are still going to amount to nothing?

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    Mute Fintan Oflaois
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    Nov 1st 2016, 12:20 PM

    @Eamon Mac Gowan: “Hillary should be tried for Treason —”

    You obviously know little about the law and it has escaped you that no responsible prosecutor would ever bring charges against anyone unless there was enough evidence at hand to make conviction even a remote possibility. That is the way things are still done in the USA, where the rule of law is respected.

    They do things differently in Russia, where the whims of Trump’s best-buddy Putler override the rule of law. On the subject of Trump’s dealings with the New Stalin and his underlings, let us hope that enough evidence is eventually uncovered to put Trump on trial for treason, and the chances of a conviction might be a lot bigger than you think.

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    Mute Eamon Mac Gowan
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    Nov 1st 2016, 8:05 PM

    @Fintan Oflaois: Is that how they do it in Finland?

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    Mute Seymour business
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    Oct 31st 2016, 9:17 PM

    I get the media is reporting on as many Angle’s as possible regarding the election. But this story is ridiculous.

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    Mute Sinead Hanley
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    Oct 31st 2016, 10:51 PM

    Why would the media like Trump. He is not one bit PC. The oversensitive cant take him. I cant see a problem with him.

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    Mute Patrick J O'CONNOR
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    Oct 31st 2016, 11:19 PM

    @Seymour business:
    Totally agree. Story says only 3% Blacks for Donald Trump. Do newsmedis people really think so low of Afro-Amaricans!
    Here’s the real score on Afro-Americans for Donald Trump.
    —”Black Likely Voters for TRUMP @Rasmussen_Poll
    Oct 3 – 9%
    Oct 6 – 12%
    Oct 7 – 13%
    Oct 10 – 14%
    Oct 11 – 19%
    Oct 12 – 19%
    Oct 13 – 24% !
    http://www.thegatewaypundit.com/2016/10/trump-track-win-black-votes-gop-candidate-since-1960/
    8:07 AM – 13 Oct 2016

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    Mute Dave O Keeffe
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    Oct 31st 2016, 11:51 PM

    Aww bless did you forget to read the rest? Your own link shows it in decline since then, back down to 16%. If you’re going to play with facts try using the most recent ones rather than just using what you like

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    Mute Rob Cahill
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    Nov 1st 2016, 10:50 AM

    @Sinead Hanley: “The oversensitive cant take him.”

    I can’t take him because he is physically repulsive. I don’t even listen to what he says because he doesn’t mean a word of it. And America is in for a shock if he gets in because everything he lied about pretty much everything. I’m probably more religious than him FFS.

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    Mute A hater
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    Nov 1st 2016, 6:42 PM

    Well you’re a triggerable little cuck. Repulsive? Bit emotive. I can get why people don’t like him, he’s pretty much a f you incarnate and it’s precisely addressed to the likes of you.

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    Mute eastsmer #IRExit
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    Oct 31st 2016, 10:05 PM

    So there are some nice ‘Dublins’ out there !

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    Mute Dave McCrea
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    Nov 1st 2016, 12:13 AM

    @eastsmer #IRExit: are you from Cork or Waterford?

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    Mute John Kennedy
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    Oct 31st 2016, 10:46 PM

    Do they have Dublin 4 Georgia or Dublin 12 Georgia???

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    Mute Shawn Rahoon
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    Oct 31st 2016, 9:06 PM

    Rainy night in Dublin!

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    Mute John003
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    Oct 31st 2016, 9:58 PM

    The story goes barman in Dublin Georgia on hearing someone was from Dublin Ireland says in amazement
    “Gee there is a place in Ireland named after Dublin Georgia “

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    Mute Philip Gerard
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    Nov 1st 2016, 5:04 PM

    I’m not saying that all Trump supporters are misogynistic, racist, ill-educated bigots…but all misogynist, racist, ill-educated bigots are voting for him. Can’t wait to watch Putin’s orange puppet get smoked next week.

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    Mute Rob Cahill
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    Nov 2nd 2016, 9:36 AM

    @Philip Gerard: I hope he wins, To see all those idiots faces when they realise he is not one of them would be worth it.

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