Reward Systems & lo's LO14191

Eugene Taurman (ilx@execpc.com)
Mon, 07 Jul 1997 09:10:35

Replying to LO14130 --

Sally Hadfield said in Intro -- Sally Hadfield LO14056

"Of course, one of the first areas of focus is the performance
management/rewards and recognition systems. I firmly believe that it is
the process that matters and that systems can either enhance or inhibit
the process.

I would be very interested to what thoughts you all have on this question.
What emphases in performance management increase a sense of shared vision?

Measurements measurements measurements. Management causes vision to be
shared by actions. Measures with action based on those measures create the
beliefs in an organization. Act on is very simple but very broad: agenda
items at the boss staff meeting, machines fixed or not fixed, reprimands
given and not given, product not shipped , thank yous as well as ignoring
good and bad deeds. etc. etc.

The only way in which vision is deployed is by management actions. Those
actions tell people what is important to the organization and to their own
personal success.

How do we transmit effective ways of conversing about performance?

Our organization is worried about poor performance. What steps have
people taken to manage this perennial question? "

I insist that we measure deviation from perfect performance. (error rate.
or numerical measures which ever is possible) In that way we tell the
members of the organization what is important for all processes important
to the success of the organization. That also tells them what is important
to their own success. We select macro indicators that cross functional
lines and from those we develop micro measures at each level down to the
toes of the company.

It is important to think this through because measures exist and actions
exist in every organization. These are causing attitude and behavior. Most
managers have not taken time to think it through so they get the behaviors
caused by an unplanned consequences system.

Often managers want to ignore the consequence system within their
companies but that is not possible. They have on whether they want it or
not, whether they are involved or not.

Gene

Eugene Taurman
interLinx
ilx@execpc.com
http://www.execpc.com/~ilx

People will ultimately perform in accord with the way they are measured
and rewarded.
Control is preconditioning

William L. Ferrara
Penn State University
1975

-- 

Eugene Taurman <ilx@execpc.com>

Learning-org -- An Internet Dialog on Learning Organizations For info: <rkarash@karash.com> -or- <http://world.std.com/~lo/>