The Rule of Law and the Cafeteria

One of the hallmarks of a free and prosperous society is the rule of law, and more importantly that those rules apply to everyone. All should be equal before the law, which should not award different legal status or rights to various “classes” of people. Such was the triumph of English law, which applied to King, noble, and commoner alike (at least de jure but not necessarily de facto—however the latter seldom ended up in writing). If the laws apply to the governors as well as the governed, then society will likely benefit from better rules, as the governors will feel the same pain or benefits they impose on everyone else. People will also feel more secure in their persons and possessions and thus create more value for society if they know they can rely on rules, like “thou shall not steal” applying to those who rule over them.

The same should be true inside the firm. Although different rules may apply for different job descriptions, the same core rules should apply to everyone, so that those making the rules can personally experience feedback on their burdens or blessings. The result should be good rules for the firm that promote a healthy work environment.

A good example can be found in the in the cafeteria at Koch Industries (Café Koch). A few months ago, Koch changed food vendors. The food had always been pretty good, and many employees speculated that the company was trying to save money and that they were about to lose what had been a benefit. That was until someone said, “Hey, Charles Koch (the CEO) eats down here too, so it’s not like he’s not going to know if the food goes bad.” All of a sudden people stopped worrying about the impending switch in food vendors. If employees know that changes affecting them will also affect those making them, then they are less likely to worry and more likely to “buy in” to the changes made.

Incidentally, more people are eating in Café Koch, which is undoubtedly improving morale and productivity. And if the food ever slips, Charles Koch won’t need a memo, just his lunch. 

Comments

[Wondering]

If classes don\\\'t exist, or different rules apply, why are hourly employees treated differently than salaried employees? Mr Koch\\\'s book was given to all salaried employees but hourly employees had to request the a copy while supplies lasted...

[Alastair Walling]

Wondering,

You make a good point, but I think you draw the definition of “class” too broadly. The point of the post was that the rules should apply to everyone equally—not that they should all be given the same decision rights, compensation, or copies of Mr. Koch’s book. If a salaried employee is out of compliance or compromising safety, then he or she is going to be in just as much hot water as an hourly employee. Secondly, I am afraid you have been misinformed as to all hourly employees not receiving copies of Mr. Koch’s book. Distribution decisions regarding the book were left up to the heads of the various Koch companies. In many cases, all employees in a business received the book, which meant that lots of hourly employees actually received copies. You are correct to point out that all salaried employees did receive copies of the book. One of the reasons for this is that with a salary comes a heightened responsibility to help teach and apply MBM throughout the business. Thus, management believed a copy of the book would help them to do an important part of their jobs. Ok, I admit the “while supplies last” thing is a little gimmicky, but it is something you hear all the time. The idea here is probably to get everyone to request copies in a short period of time, so the appropriate large orders for printing can be placed. If requests from Koch employees that did not automatically receive copies exceed supplies by a large enough margin, then I am pretty sure that more books would become available. However, if you cannot get a copy just let me know, and I will be happy to send you one.

Thanks for the comment,

AL