FACILITY DIFFERENTIAL

when a senior executive has the ability to make money for the organization or greatly raise statistics and when this ability has been demonstrated, that executive should have facilities. This ability is often discoverable by the absence of the executive from post for a period or when the executive is pulled off by emergencies. In such a time the income of the org may sink. The degree the income shrinks is the facility differential of that executive. It is worth that much to the org in facilities to have the executive on post. Example: with that executive on duty-income $8000 per week. With that executive absent-$5000 per week. This is the facility differential of that executive. It is, in this example, $3000 per week. This means that the org could afford $3000 per week extreme to provide that executive with facilities for his work to keep him from overload. For it will lose $3000 a week if this executive is distracted or overloaded. (HCO PL 16 Nov 66)