How to recognize and reward people

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Chapter 8 of Performance-Based Management by Judith Hale


Chapter 8

Chapter 8How to Recognize and Reward PeopleHow to Recognize and Reward People

This chapter continues with the idea that your job is to steer people, helping them stay the course and stay on course.On going feedback and incentives are used to steerIncentives - are promises of a rewardAn incentive can be a promise of a future reward, such as a bonusesHow to Recognize and Reward People

Rewards - how organizations fulfill the promise.Recognition - how the organization acknowledges and shows appreciation for people Recognition programs may use financial rewards or non-financial rewards.Comparison of Incentives and RewardsFactorIncentiveRewardsWhat it is A promise of a futurereward Something earned toencourage thecontinuation of or theachievement of specificresults, behaviors, oractivities Something given after thefact in appreciation ofgood work oracknowledgement of someresult or achievement Something given toencourage thecontinuation of specificbehaviors or activitiesWhen it occursBefore, during, or after anactivity, event, or resultEither during an activity,after a result, or afterthe factComparison of Incentives and Rewards(cont.)FactorIncentiveRewardsPurpose To encourage andmotivate people to behavein specific ways or toachieve improved results To provide direction To motivate when doneduring an activity To acknowledge whendone after the resultsare inCriteria Tied to desired results May be tied to behaviorsthat lead to resultsTied to desired results orspecific behaviors that leadto resultsPERFORMANCE IMPROVEMENTFirst question to ask- what would I want to accomplish by using incentives or rewards?

Second question - how will I know whether the incentive or reward I did what I wanted it to do?PERFORMANCE IMPROVEMENTPerformance improvement - following a systematic process to identify and use appropriate incentives to get the results you want.Without systematic process, one could potentially reward people who does not contribute to the success.COMMON MISSTEPSThey fail to point out the importance of the work to be done.They discount the significance of a personal thank you, general courtesies, and politeness.They are unclear on their purposewhether they want to encourage specific behaviors or reward results.They fail to link the reward or recognition to performance.They do not reward people fairly or equitably.They think treating everyone the same is best.They think treating everyone differently is best.They reward meaningless results.LEADING AND LAGGING INDICATORS(Leading)The presence of some activities and behaviours improves the odds that the organization will be successful.Examples: following up with customers in a timely fashion or complying with safety proceduresLEADING AND LAGGING INDICATORS(Lagging)Accomplishments are lagging indicators, because they are the results that occurred after people engaged in specific activities and behavioursExamples: amount of product sold compared to quota or customer satisfaction rating received compared to what was expectedLEADING INDICATORSResults happen when managers, supervisors, and workers engage in specific behaviors and activities.Incentive plans can be designed to encourage the behaviors and activities that are linked to results..Leading IndicatorsSupervisory Behaviors -leading indicators of good employee relations and performance such as: Setting clear expectations Giving regular and frequent feedback Regularly displaying common courtesies Saying thank you Being fair when giving people attention or help Explaining the organizations vision and his or her vision for the work unit Showing respect Taking an interest in peoples careersSubordinate BehaviorsActivities and behaviors that are leading indicators of subordinates accomplishments depend on their jobs.Examples: Sales not promising beyond the capabilities of products or services, prepared for client meetingsCustomer Service asking permission before putting a customer on holdTechnicians - arriving early, complete work in one visit

LAGGING INDICATORSaccomplishments or the results that occur at a specific point in time, the end of a project, or after an implementation.

include things like bonuses, merit increases, and promotions.

Lagging indicators ExamplesSAFETY - the incentive might encourage people to hide accidents. The second problem is that it encourages co-workers to exert pressure to hide injuries.SALES - company bonuses were solely based on total sales volume, not margin.Margin - difference between net sales and the cost of the merchandiseRECOGNIZING THE UNSEEN AND THE UNCLEANpeople who work behind the scenes and do work that is overlooked and under-appreciated(housekeeping, maintenance, etc.)

they also experience emotional burnout and their efforts should be acknowledgedPEER RECOGNITIONRecognizing the work done by your fellow co-workers, customers or team mates.

Examples:Im too clever for my job award is given by co-workers when they see a colleague do something very clevercompanies allowing peers to nominate co-workers for awards when they see someone receive outstanding comments from customers.How to Recognize and Reward People

Compensation - Incentive used to pay people fairly.

Meaningful Work - most powerful incentive to perform is the work itself especially if people believe what they do is important.ALIGNING INCENTIVESIt is important to identify the right combination of results and the contributing behaviors.Alignment happens when the incentive plan gets people to behave in ways that lead to desired results.Safety incentives only work when:Clear expectations about all the factors that contribute to performanceGood documentationsummaryPeople who are passionate and have good relations with each other can beat a lousy system.

Look beyond the organization for rewards; come up with some yourself. Start by letting people know how important their work is and how others rely on them.


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