Pay Good Wages I A Lot Money;

¶ … pay good wages I a lot money; I a lot money I pay good wages." (Robert Bosch) Explain quote, means . Using concepts textbook, (Contemporary Management, 7th Ed. Gareth R. Jones & Jennifer M. George) apply explain managerial significance.

Contemporary Management

The quote that Robert Bosch said is "I don't pay good wages because I have a lot of money, I have a lot of money because I pay good wages." What he meant by this is that the salaries he paid his employees were not the result of his wealth, but his wealth was the result of paying good salaries to his employees. In other words, he valued and acknowledged his employees' work.

The success of Robert Bosch and his businesses are relied on his management skills. This refers to innovation, but also to people management skills. Most of Robert Bosch's businesses were innovations, technological advancements. But there are also other ingredients that significantly contributed to his success. Bosch knew how to manage his employees in order to keep them motivated and to help them improve their performance. In addition to this, Bosh understood that employee satisfaction is very important in his companies' success. Bosch did not want companies to function, he wanted his companies to become leaders for generations in the industries they addressed. In order to reach this objective, Bosch knew he needed his employees' loyalty. This loyalty must be cultivated through long periods of organizational development focused on the improved of his employees' skills, and abilities, but also on their motivation.

Robert Bosch understood that in order for his businesses to be successful, his employees had to be successful, and to consider themselves successful at their jobs. These employees consider themselves successful at their jobs if they feel their job is valued. There are several strategies used in human resources management intended to reveal appreciation towards employees, and to increase their motivation. Some of these strategies are represented by financial stimulation, other strategies are based on acknowledgment of employees; work, and others are based on providing employees with certain benefits intended to help them satisfy certain needs.

Robert Bosch tried to combine financial stimulation with acknowledgement of employees' work (Jones & George, 2010). Therefore, he paid high salaries to his employees, and acknowledged the importance and quality of their through quotes. When he stated that he has a lot of money because he paid good wages, he acknowledged the importance of his employees' work.

The process of innovation and its success relies on the management of people involved in this process. Robert Bosch is one of the entrepreneurs that knew how to plan this process, how to assess the resources it requires, and how to manage the staff involved in this process. The organizational culture that Bosch developed within his companies helped him develop successful innovative businesses.