Tuesday, 7 October 2014

Comments on Harvard Business Review article: The rise (and likely fall) of the talent economy

The Hindu, a few days ago, reprinted a Harvard Busines Review Oct. 2014 article titled, The rise (and likely fall) of the talent economy, http://www.thehindu.com/business/Industry/the-rise-and-likely-fall-of-the-talent-economy/article6471593.ece [HBR link, multiple pages and so a little cumbersome to read, http://hbr.org/2014/10/the-rise-and-likely-fall-of-the-talent-economy/ar/1]

My comments (and a few short extracts of the article in quotes):

Ravi: Hmm. I did not realize that IBM marked that sort of change in the financial world (a non natural resources company making it to the top 50 mainly on creativity of its employees). Sure, it was really big in the computing world, but changing the status quo in the world of big business? That was something that I had not realized. When one thinks about it though it is not surprising at all.

...

"By 2013 more than half the top 50 companies were talent-based, including three of the four biggest: Apple, Microsoft and Google."

[Ravi: What a great change in 50 years! This is some food for thought.]

...

Ravi: After tax income of $1 million earners going from $340,000 to $725,000!!! That is more than double! I think Reagan brought in this change with his brand of economics (Reaganomics, http://en.wikipedia.org/wiki/Reaganomics).

...

"Our basic grievance with today’s billionaires is that little of the value they’ve created trickles down to the rest of us. Our current system of rewarding talent actually makes the economy more volatile."

[Ravi: Coming from Harvard Business Review I think that is some statement. Though I have read only a few HBR articles and so do not know whether they normally print articles of this type.]

...

Ravi: I think India is also facing this dramatic rise in income inequality issue big-time. And politicians are raising it in their current political campaigns where they promise to give more money and benefits to the poor, as compared to previous state governments (Haryana and Maharashtra states are in election mode). One thing seems to be clear - a dramatic rise in income inequality creates social tension, whether the country be an affluent Western country like the USA or UK, or a developing country like India. I recently viewed a BBC Hard Talk program where a British academic was interviewed about his book arguing for reducing income inequality in Britain, The author highlighted the very high income of British bankers as compared to other fields in Britain.

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