1、Whats wrong with reward, recognition, and incentive systems?First, they dont work There are no credible data to show that any long-term benefit results from such programs. There are data, however, that show that they do harm. They often set up a form of internal competition in which people strive to
2、 look good and look better than their fellow employees. Sometimes looking good becomes more important than doing well. People pass problems on to others elsewhere and later in the system. Dont let the problem appear to happen on my watch. People will circumvent the system for personal gain, causing
3、havoc to the system. People will strive to look good even when it may hurt the customers. Sears auto-service personnel - in order to meet their monthly profit quotas - provided unnecessary repairs and replaced perfectly good parts. The customers paid dearly so that the repair shops could look good.
4、The reward programs undermine teamwork and cooperation Employees - or groups of employees - competing for a prize (merit pay, contests, rewards, etc.) will regard each other as adversaries. They will act as though they are not part of the same organization, working for common goals, serving the cust
5、omers together. Instead, they may try to subvert each othersefforts. Recognition and merit programs often reward those who are lucky and pass by those who are unlucky Far and away the biggest single factor that determines output is the system and its capability. The systems capability is independent
6、 of the people doing the work. But not independent of those who design and approve the system. If everyone in your company did his or her best, day in and day out, you would affect only a negligible proportion of your current quality or productivity problems. Most of your problems are built right in
7、to the system. Those who get rewards are those who are lucky enough to work in a system with fewer inherent problems. (The machines work well, the materials are appropriate, the training is good, the policies promote a good work environment, the methods of work are well tested and perfected, etc.) T
8、hose who dont get the rewards are - by and large - those unlucky enough to work in dysfunctional systems. Merit and reward systems create cynics and losers In one Milwaukee company, which had an annual Employee-of-the-Year award ceremony, I had an opportunity to meet with the years winner. I was sur
9、prised to learn that she was not proud of her award. She was embarrassed by it. She saw the whole ceremony, with all its hoopla and pizzazz, as an occasion invented by managers, so that they could pose as employee-sensitive. She had two reasons for her cynicism: There were plenty of employees whom s
10、he felt deserved recognition as much as or more than she did. She was convinced that the honor was bestowed on her because her boss was the CEOs favorite. The selection process oozed of internal politics. Secondly, she said, If we were treated with respect and decency on a daily basis, I would not b
11、e so skeptical of the sincerity behind this event. On one day a year, management honors its employees. On all the other days, we are treated like objects of utility.The greatest management conceit is that we can motivate people. We cant. Motivation is there, inside people. Our people were motivated
12、when we hired them and everyday, when they come to work, they arrive with the intention of doing a good job. Managers cannot motivate. They can, however, de-motivate. Herzberg established this over 30 years ago (Herzberg, Frederick One More Time: How Do You Motivate Employees? Harvard Business Revie
13、w, September-October 1987, pp. 109-120. This is a reprint with commentary, of an earlier classic paper.) The greatest managerial cynicism is that workers are withholding a certain amount of effort that must be bribed from them by means of various incentives, rewards, contests, or merit pay programs.
14、 Most managers are not conscious of such a pessimistic belief, but many of their motivational programs are conducted as though this cynical premise were true. The greatest waste of managerial time is time spent trying to manipulate peoples minds and infuse motivation into them. Managers time would b
15、e better spent doing the following: Remove the demotivators. Ask people what gets in the way of their doing work they are proud of. Remove those obstacles to pride in work. Focus on improving the processes. You and everyone in your company need to become more aware of what systems and processes are,
16、 and how to study them, and improve them. Focus on customers. Something that provides a lot of gratification and satisfaction to employees is to know that customers are excited about the products and services. Bring awareness of customers into your organization on a daily basis. This takes hard work
17、 and true leadership. Dont waste any more time or energy on perpetuating myths and pretense. Get on with it! 4. Mobility of top management (too much turnover causes numerous problems) 5. Running a company on visible figures alone (many important factors are “unknown and unknowable.” This is an obvio
18、us statement that runs counter to what some incorrectly claim Deming taught that you can only manage what you measure. Deming did not believe this and in fact saw it as a deadly disease of management) 6. Excessive medical costs 7. Excessive legal damage awards swelled by lawyers working on contingen
19、cy fees Obstacles to success Belief that automation computers and new machinery will solve problems Trying to copy existing solutions without understanding why they work “our problems are different” Obsolete business schools that do not teach how to manage Teaching tools without a framework for usin
20、g them Reliance on inspection Reliance on QC department Blaming work force for problems when it is really the system False starts or teaching the latest without a plan of how to use them or their impact or what it will take to get there Zero defects means nothing unless someone wants to buy it Inade
21、quate testing of prototypes Consultants know more than us (they do not, they may have some places for you to go, but they do not know why you are where you are) Out of control action plan OCAP Action limits (+/- 3 SD) warning limits (+/- 2 SD) Phase I and Phase II Phase I use Shewhart, Phase II use
22、cumulative sum and EWMA Cusum and EWMA charts for Phase II chapter 5 section 8 and 9 for when detection of small moves in SD are required. Should you use attribute or variables charts? Variables tell you when you are moving off of desired, attributes are less likely to do so, it is usually easier to
23、 find what the problem is from variables data SPC is a passive statistical method for process management, DOE and using distributions to make decisions about causal agent is proactive find the cause of variation The Seven Deadly Sins of Management by Lonnie Pacelli Pride. Envy. Gluttony. Lust. Anger
24、. Greed. Sloth. You either recognize these as the seven deadly sins or as themes for prime-time television. Nonetheless, you were probably taught as a child that these are bad and you shouldnt do them. For purposes of this article, do as you were taught and think bad when you commit these similar si
25、ns in the workplace. As leaders, we are continually being introduced to new techniques and theories. Hammer &Champys Business Process Re-engineering Model, McKinseys 7-S Framework, and Kenichi Ohmaes 3Cs Strategic Triangle are all examples of strategic models designed to help leaders think about the
26、ir business in different and innovative ways. What sits on top of all of the models and frameworks, though, are a series of foundational attributes that every leader should possess if he or she is going to have demonstrated, sustained success as a leader. In my career as a leader, Ive been fortunate
27、 enough to experience a broad array of leadership situations where sometimes I enjoyed fantastic success, and at other times experienced dismal failure. In looking back at my failures, many of them had nothing to do with a theory, framework, or technology that was utilized. The failures had to do wi
28、th cracks in my own foundational attributes which left me vulnerable as a leader. Ive boiled these down to seven key sins which this article will focus on to help you become a more effective leader. Sin #1 - Arrogance Ever known a manager that consistently claimed to know more than the rest of the team? How about one that was unwilling to listen to opposing views? Isnt this just a sign of confidence?s wrong with that?Confidence as a manager is crucial as p
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