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Ask HN: Why do corporate failures always seem to punish the wrong people?

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Re: Ask HN: Why do corporate failures always seem to punish the wrong people?

#62
post #44

My question is if this power dynamic is different in organizations with strong unions?

I am not in one, but from what I heard the answer is sort of. You usually end up with two corrupt power hierarchies fighting each other - the corporation and the union. That's better than just being subject to the whims of one that's aligned against you, but it's not ideal.

A good place to see the difference is an Airline. Strong unions, like the pilot's union...makes for very different outcomes for them versus the salaried/non-union HDQ type workers.

But yes you're right it really depends on power dynamics.

Re: Ask HN: Why do corporate failures always seem to punish the wrong people?

#63
> how do these people consistently survive their self-inflicted disasters?

Well, being at the top of the org chart in the first place is naturally insulating. But since HN is a forum attached to a startup fund, I wanted to put two cents in for how this happens even when there’s no incompetence.

Before I do that, I’ll be clear that I’ve personally seen incompetent execs make massive mistakes and survive. Working for a game studio acquired by Disney for a decade, we had a new one every 2 or 3 years and they’d shut down studios on a whim just to make their Excel sheets look good. One closed our small research division one day because he didn’t see revenue. He got reamed by the board for it and whined the reaming had been the worst day of his career. Boo hoo. But didn’t get fired. Disney tried to shut down the studio on the heels of a billion dollars in profit from this studio because they couldn’t figure out how to make a sequel or think of a new game, and because there were was some big tax incentive to getting the hundred or so people off the payroll. It seemed short sighted in the extreme.

Anyway, the complete answer to your question also needs to acknowledge that planning business is difficult, and whole companies and departments both fail all the time. As a worker, we don’t always see how the sausage is made and where the income is coming from, but management can be pretty messy, it’s not clockwork and people can’t predict the future. There are a lot of reasons that departments or companies can be closed for no fault by anyone, worker or manager. And, while there are plenty of incompetent decisions made, it’s also true that sometimes best effort managing still results in people losing jobs. In those cases, it’s possible and occasionally the right thing to do to keep a manager who tried hard to save things, even if they couldn’t. And there’s a gray area, and a lot of narrative, in between competence and incompetence too. I have no doubt in your case there was incompetence, but whether the disaster was self-inflicted or was even a disaster is viewed differently from the top. They might be talking about it as having averted a larger disaster.

Re: Ask HN: Why do corporate failures always seem to punish the wrong people?

#64

I've seen a fair share of personalities in middle/upper management. My hypothesis is that in large organizations, people that operate at that level often exhibit more survival skills that are ruthless than moral. A common characteristic I've seen is they manage "up" well and are often not good managers themselves. So if they control the narrative with their management, even when they screw up everything, its articula…

The term is "corporate psychopath". These are people that just do not see other people as people. I was a director (via an acquisition) for a global-mega-corp and it's literally a fucking game for the people at the top.

Yes, the term of art is “resources”. Human Resources

We are onboarding resources We are cutting resources We are shifting resources

Re: Ask HN: Why do corporate failures always seem to punish the wrong people?

#66
The easiest (but not necessarily best or most effective) way to survive corporate life is to give your boss quiet, make your peers happy, and your direct reports miserable. Therefore, naively, people look very different depending on whether they are your direct reports, your peer, or your boss. Your partner is below him looking up; he looks very different from the standpoint of the executive looking down at him.

Case in point: budget cuts and layoffs are not fundamentally speaking failures from a business perspective. Sometimes, an executive just wants the money spent elsewhere, on some shiny new project. Often enough, failures to produce expected revenue do not have unambiguous scapegoats. Frequently, executives just suck at oversight - determining for themselves how things are going instead of letting their direct reports control the narrative and tell them how things are going.

There are further reasons: the consequences are harder for mid-level fires than for low-level fires. For one, there are much fewer open positions the more senior of a title you expect, and termination may simply result in early retirement. The personal consequences are worse compared to firing people with less seniority, who are perceived as having many more jobs open to them to find (for the sake of argument, leave aside for the moment the continued enshittification of hiring processes and actually getting hired anywhere, for any job). This is important both internally - executives don't want junior employees to perceive promotions as notice they'll soon be terminated - and externally, as disgruntled ex-employees have more influence on bad-mouthing their ex-employer if they are more likely to belong to the same upper socioeconomic groups. Firing 30 lower-level employees, by contrast, doesn't have the same effect on internal morale, or on external reputation among executive peers (just look at how many layoffs happened in the last few years).

The advice for most people is the same, because employment stability is an illusion:

  * Love your calling, not your employer.
  * Live below your means. The key challenge in life is how to desire less.
  * Stay in touch with recruiters and take an interview loop at least once a quarter.
  * Have a backup plan. It doesn't need to be fleshed out, just real enough in your mind.

Re: Ask HN: Why do corporate failures always seem to punish the wrong people?

#67

I am surprised that you even ask this question. Do you expect it to be different? It is the oldest story in any kind of human community, from tribes to empires, from marriages to enterprises: they're ruled through is politics not justice. Meritocracy and justice is just the order that we want the world to be, the ideal state. Its entropy and normal state is politics and this as nothing to do with justice.

I don't think everyone wants a meritocracy, I sure as hell don't want it. Having some sort of disability in a meritocracy would be even worse than now for example.

When people try to get to meritocracy it can also impose serious costs on society, both social and monetary cost. The imperial examination in China (which some would argue was the closest to a meritocracy) brought little advancement to China despite the fact that China was probably the wealthiest region until the 12-13th century. It did make the brightest/richest people study for years, sometimes decades of their life to produce little value after succeeding (except for themselves). You might argue that this isn't a meritocracy but I think we'll get similar behaviour no matter how you define 'merit'.

Re: Ask HN: Why do corporate failures always seem to punish the wrong people?

#68

The purpose of a system is what the system does. -- Stafford Beer

The most cogent reply I have seen here.

She and/or you have a false conception of what a big five corporation is, or how it works. Yous probably also have a false conception of how relations of production under capitalism work as well. The man higher up the hierarchy at the FAANG has a better grasp of how these things work. Often, people don't realize their conceptions were wrong until they get let go.

That she worked tirelessly, was well liked does not matter. That in this short life we have, that she skipped vacations to devote more time to the company does not matter.

You said the person above her is not smart but he clearly is - he is higher up and survived and she is lower down and was cut.

Insofar as it being healthy for these companies for him to be there - him being there is in the nature of the corporation and perhaps its intrinsic infirmities, just as it is intrinsic to relations of production under capitalism.

One would hope that something as dramatic as not only him being over her, but him staying and her going would disabuse you of these notions. Especially the idea that she had sone kind of relationship within the corporation where working tirelessly and skipping vacations would engender any loyalty on the part of the corporation's higher managers and owners.

Re: Ask HN: Why do corporate failures always seem to punish the wrong people?

#70
You're under the assumption that corporations (especially big ones) are some form of meritocracy. Don't believe the bullshit, it's all about politics, timing, and luck (in that order).

Publicly-traded companies always put short-term profits over anything else; if they don't demonstrably do that, the leadership exposes themselves and the company to shareholder lawsuits. I've been at a BigCorp where layoffs happen at the end of each quarter to look good on the balance sheet, only to hire most of those people back. Rinse and repeat.

Again, this has nothing to do with "doing a good job" or being a model employee. The days of working hard and getting rewarded are dead and buried, and the MBAs are the ones with the guns and shovels.

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