Tag: organization

The shocking truth about Employee Reward and Recognition Systems

Written by Derrick C Darden, PhD
Photo by Sharon McCutcheon

Reward and recognition is a proven way to reinforce desired behaviors that epitomize a company‘s culture. But what if the company’s values are distorted and abused by manipulation, pressure tactics, and an acceptance of concealment of information from customers? Many of us see this behavior happening in front of us, yet we refuse to speak up for fear of retribution from our superiors. Even if we don’t say anything, we buy into the bad behavior. There’s a pattern in many cases, a link between unethical behavior, abuse of incentive monetary reward/recognition systems, and organizational cultural norms.

Studies have shown that reward and recognition systems can be a great motivator and an effective way for companies to encourage employees by rewarding and recognizing their achievements. These systems can promote higher performance, engagement, and commitment in the organization. Employees who feel intrinsically valued increase the company’s productivity and retention and reinforce the company’s cultural norms. A survey of employees in four different professions (ground workers, librarian clerks, intake receptionists and medical record assistants) conducted by East Carolina University found a strong correlation between effective motivators – such as  good pay and recognition – and benefits to the workplace Mani (2002). So, reward and recognition works, and industry has put heavy emphasis on praising and recognizing employees’ achievements to promote desired behaviors and organizational norms.

However, the recklessness of a few can transform a perfectly legitimate incentive program into a widespread unethical behavior promoted by the upper management. For example, at the height of the mortgage-backed securities crisis in 2007 and 2008, many financial institutions lost billions of dollars in subprime loans. During the government’s initial investigation, UBS, the largest of these financial companies, acknowledged that part of their massive losses were a consequence of large bonuses for their upper management. The company had promised large bonuses to traders, encouraging them to create mortgages faster to satisfy the gluttony of investors. Many reputable lenders such as Wells Fargo, Morgan Stanley, and Bank of America, to name just a few, all loosened their standards to make loans available to everyone, even those who could not afford them. People with low credit scores and low incomes were sold prime mortgages. Of course, a new phrase was introduced: predatory lending. These financial institutions didn’t verify incomes, but offered adjustable mortgage rates to people who only paid the interest on the loan, but didn’t know the loans would require full payment a few years down the road. Predatory lending caused thousands of people who could not afford their mortgages to walk away for their homes. These companies lost billions, and the American people had to bail most of them out.

In 2011, the Department of Veterans Affairs’ top official began an investigation into why veterans had longer than normal wait times to see the doctor. Many veterans died while waiting to see their doctor for follow-up care or primary care. At the conclusion of this investigation, it was found that many VA employees had covered up faulty patient care procedures used by the VA and that a bonus plan had contributed to unethical behavior. The investigation found that the connected hospitals under investigation had found employee bonuses were connected to the scheduling of patient care; additionally, incentives were paid to doctors to reduce follow-up care to patients. As soon as he learned of this crisis, the Secretary canceled the performance bonus plan. Obviously, he saw the connection. After a large public outcry, Veteran Affairs Secretary General Shinseki handed his resignation to President Obama. In his resignation speech, the Secretary said, “I can’t explain the lack of integrity among some leaders of our health care facilities.” Lives were lost because of unethical practices.

What causes people to act unethically in the workplace? In a Harvard article, a psychologist points out three areas or factors that cause people to cross the unethical line:

Omnipotence – Employees may feel they are above the rules and are entitled to act in the way they want. Left unchecked, the trickle-down of wrongdoing will become a burst of unethical behavior, especially in the workplace. My mother used to say, “Birds of a feather flock together.”   

Cultural Numbness – Playing by another’s rulebook, even when it’s deviant in nature. No matter how high your moral and ethical compass, you keep hanging around, and you gradually begin to accept bad behavior as the norm.

Justified Neglect – Ignoring wrong behavior without speaking out because of fear of losing your sure footing with the powerful boss or manager.

Reward and recognition systems are excellent ways for organizations to promote desired cultural norms and maintain a competitive edge. But these systems can be abused. That’s why all employees must be trained in organizational norms, ethical conduct, and proper behavior. We know that so-called people of high morals may choose to neglect and or ignore improper behavior – and that a lack of ethics can destroy people’s lives.

In other words, unethical behavior can significantly increase the cost of doing business.

What are your thoughts?  

Reference:

Mani, B.G. (2002), “Performance appraisal systems, productivity, and motivation: a case study”, Public Personnel Management, Vol. 31, pp. 141-59.

Distract the Distractive Critic in the workplace

  • Aikido Style

One of the most frustrating experiences at work is having a boss or coworker who gives negative critical comment regarding your work. When there is a consistent barrage of negative criticism, it negatively impacts your self-esteem, feelings, and performance of your day-to-day task. As a matter of fact, it is somewhat common for those that are placed under daily destructive criticism to encounter clinical depression.

The non-necessities: Overlooking his or her comments, moving your desks, and/or expressing your displeasure; are all the non-necessities.

Another strategy that is very effective is similar to the aikido expert who makes use of the power of an opponent and adopts the reverse leverage to conquer him.

When you are being criticized by the distractive critic,rather than attempting to stop him from criticizing you, try to encourage him todo so productively.��

There was a story told by a well-known commercial interior designer. The story was concerning his coworker who usually gives him negative feedback regarding the way the static displays are presented in the office showroom.  His co-worker criticizes, that the colors schemes are poorly combined, in other cases, the layouts of furniture and wall decoration look crowded, and it appears lousy.  So the criticized interior designer thought about his goals and how the critic (co-worker) should proceed to criticize his work in a productive manner.   

The next time the coworker began with the critical comments, he responded with the question, “How can he get it done better?”

This is a response that accurately indicates how criticism communication can be effectively diminished to a sentence. This is what usually happens. If negative criticism tells you, “you are winning.” Now, on the flip side, if the response is: “I do not have an idea,” what you should do is to clarify, “I’m trying my best”. Continue to say “I would be grateful if you do not tell me your criticism anymore unless it’s productive criticism.”  This implies to the coworker not to criticize you, but instead, you are only requesting the manner at which you are being criticized.  It must be productive and not destructive!!! If this doesn’t work, set up a meeting with your immediate supervisor.

In dealing with the boss, use a different strategy, make arequest from your boss to give you some time, so he can productively assess youin your areas of responsibilities.  Iremember the Mayor of New York City, Mayor Koch, he used to ask hisconstituents, “How am I doing?” The framework for your boss should be as such,“How am I doing?” Let him know the area you want him to improve in, and let himtell you how to improve them. Lay emphasis on the fact that you want to be agood employee that adds value to the organization.  If this meeting is successful, express yourappreciation and let him feel how much you benefited from his attention, andtry to get some search sessions consistently, irrespective of how inconsistent,and never forget to execute any valid criticism he poses. Actually, you’ve justtaught your boss how the power of positive criticism can be obtained. This is awin-win case!  Weisinger, H/ Triple D

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Don’t self-sabotage your own success (you have the seeds of greatness) in you!

 

 

 

What holds you back? What is keeping you from reaching your goals? So many of us are so close to having that breakthrough, but we self-sabotage the path that breaks a success. Perhaps fear rips our consciousness in a new relationship; we think of our self-worth as undervalued and marginalize our abilities. We lack the value and belief in ourselves, and we psychologically and sometimes physically self-sabotage our success from having that true break-through.

First, let us define the familiar word “success.” This word means different things to different people. Happiness, wealth, recognition, independence, friendship, achievement, and inner peace. Because we measure success differently, let’s say that it’s an individual thing. No matter what stage in life we are in, victory differs from person to person, even family to family, no matter what socioeconomic level someone may belong to.

    Success is the progressive realization of a worthy goal or ideal. People with goals succeed because they know where they’re going. Whatever we plant in out subconscious mind and nourish with repetition and emotion will on day become a reality. (Earl Nightingale)

As we develop through life, success can be measured by different factors in an individual’s journey. For example, as a teenager, he or she feels successful when he or she gets a new car, has enough money to buy the latest fashion at the mall, or make the sports team in high school.

An individual in their thirties may have a different measure of success by having a house, a successful career path, or a family and kids. Or a 60-year-old may measure success by feeling and living a healthy life. As the old saying goes, “What’s one man success is another man’s failure.”

Success can begin at birth. A child can hear the voice of its mother’s aspirations and real ambitions in the womb. The child grows, and those subtle messages permeate the subconscious as those aspirations continue. As seeds of greatness are planted and watered, they become part of that child’s mental DNA as the mother nurtures and sow those seeds into the child’s life. The future looks bright for that child because of the principle that the sower sows the word belief. High will be that child’s success. Success can be in education, playing an instrument, or playing sports. Greater will be that child’s success because the real seeds of aspiration were sown and watered consistently.

Success can be incubated and displayed in unique and undefined ways. If you ever heard of the term “late bloomer,” no matter how and when those seeds of greatness manifest themselves, and then the flower blooms and gives off its fragrance to the world.

Again, you as an individual may define success differently and in your own unique way, but you must be fulfilled and accomplished. So, what is your definition of success? Be what you love, do something well, contribute something useful, and be yourself.

You decide…

Derrick C Darden, PhD