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Rewards & Punishments: Ineffective Management 101

Submitted by Organize on Wed, 08/03/2005 - 10:52am.

INC. Magazine

November 1987

No Contest

By Alfie Kohn

[This is a slightly expanded version of the original article.]

Long before anyone was talking about team-building or Theory Z -- less than a decade after World War II, in fact – a sociologist named Peter Blau compared two groups of interviewers at a public employment agency. Those in the first group competed fiercely to fill job openings. In the second group, interviewers worked cooperatively, making sure to tell each other whenever a new position opened up.

Which interviewers filled significantly more jobs? If you guessed the second group, it may be because you're already aware that cooperative effort is the key to productivity. You may also know that since Blau’s report was published, a pile of other studies have proved this principle again and again. Some of that research has filtered into real-world workplaces, and some managers have seen for themselves how much sense it makes to have people working with each other rather than against each other.

Still, old myths die hard and the idea persists that competition promotes excellence. I’ve been studying the subject for the last five years, weighing the research from many different fields, considering the impact of competition not only in the workplace but also in the classroom and on the playing field. My conclusion is that optimal productivity not only doesn’t require competition; it seems to require its absence. The best amount of competition in your company is none at all.

Notice that I’m not complaining about excessive or inappropriate competition. I'm saying competition itself -- which simply means requiring one person or group to fail in order that another can succeed -- is inherently counterproductive. Similarly, I’m not offering a “soft” argument against competition, basing my objection solely on its destructiveness to us as human beings. I’m saying that competition also makes no sense from the perspective of the bottom line. It holds people back from doing their best.

Look at it this way: if so many Americans regard work as a chore (as is suggested by such recent bumper stickers as work sucks but I need the bucks and I owe, I owe, so off to work I go), an environment that pits us against one another might just have something to do with it. In many workplaces, each employee is led to regard everyone else as obstacles to his or her own success. In place of companionship and collaboration, there is only suspicion and rivalry. Can it really be surprising that the same rat race that feels so unpleasant also translates into reduced productivity?

Surprising or not, here's what the research makes clear:

* Competition creates anxiety. Even when the tangible stakes (salary and promotions) aren’t high, the prospect of winding up a loser is extremely distressing. The unique pressure produced by having to defeat others -- and risk being defeated -- tends to inhibit performance.

* Competitors can’t exchange ideas or share skills. Let me in your office for a few days and I can destroy your employees’ ability to communicate effectively. I can replace their trust in each other with hostility. I can make sure their work is redundant, with each one tackling problems that someone else has already solved. How can I do all this? By making them compete against each other.

* Competition distracts people from the task at hand. Although our society often confuses them, victory and excellence are actually two very different ideas. They’re even experienced differently. To focus on winning, on beating out a colleague, is often to divert attention from the work itself. Optimal performance depends on finding that work satisfying and challenging in its own right -- not on seeing the work as a means toward some external goal such as being Number One.

If contests and other forms of competition are still utilized by managers, it may be because of the old canard that motivation will dry up without the inducement of victory. But the desire to push oneself to succeed rarely comes from having to defeat someone else. It comes, ideally, from intrinsic interest -- being in love with the challenge itself. Failing that, it can come from comparing one’s performance with some absolute standard or with how one did last year. It also can be inspired by the fulfillment of cooperative work. In any case, competition is at best unnecessary and at worst a serious impediment to quality work.

David and Roger Johnson, professors of education at the University of Minnesota, have performed 26 separate studies to determine whether competition or cooperation is more conducive to learning. The results: cooperation promoted higher achievement in 21 of the studies, while two had mixed results and three found no significant differences. That should be of interest to any manager whose employees spend part of their time learning skills and absorbing information.

Better performance was not the only advantage of cooperation, the Johnsons found. Freed from the pressure of having to beat each other, students developed higher self-esteem. Their enjoyment of the subject matter increased, and they came to accept each other more readily -- even those with different backgrounds and abilities. These findings, of course, have profound implications for the workplace.

The research does suggest that competition on a temporary basis can sometimes be an adequate motivator for simple, rote tasks. But when higher level problem-solving or creativity is involved, there is no surer way to undermine quality than to set up a contest.

The problem isn’t just with competitive structures. It’s also with competitive individuals -- particularly managers. A 1983 study of 310 laboratory technicians by Dean Tjosvold of Simon Fraser University and his colleagues found that subordinates who worked for a competitive leader were largely dissatisfied with their jobs; the happy, motivated employees were those whose bosses were cooperatively inclined. That finding nicely complements Tjosvold’s other research, which has shown repeatedly that cooperation in the workplace translates into much better decision-making and higher productivity. It's not only more humane to work together but more efficient as well.

Does this mean that a manager need only circulate a memo reminding people that “we're all in this together”? Hardly. A manager’s job -- and it may well be his or her most important job -- is to structure cooperation by creating a supportive climate and carefully building teams of people that produce better work collectively than any team member could turn out individually. “Creative, independent geniuses do not drive innovation in organizations; invigorating, supportive teamwork does,” says Tjosvold. And developing that teamwork is the responsibility of managers, who are “the architects of cooperation through which things get done.”

The foundation of cooperation is what social scientists call “positive interdependence”: a cooperative group sinks or swims together. In practice, that means all group members work for the same goal and use the same resources. The result is a shared group identity and a sense of accountability that comes from having others depend on you – a powerful motivator indeed. (In a competitive environment, the only stake others have in your performance is a desire to see you fail.)

Cooperation should not be confused with a state of perfect harmony where everyone thinks alike. Conflict is both inevitable and desirable; disagreement produces change and challenges mistaken decisions. The question is not whether conflict will exist, but whether it will take place in the context of competition, where people are trying to score points and beat each other, or cooperation, where everyone has the same goal of reaching the best possible solution. Cooperative conflict involves what the Johnsons call “friendly excursions into disequilibrium.”

Some managers have understood the need for teamwork but persist in hanging on to competition by forcing the teams to compete against each other. The research suggests that competition among groups, like competition among individuals, is both unnecessary and undesirable. Working against a common enemy isn’t necessary for success or for camaraderie. It just creates warlike hostilities and closes off the possibility of sharing ideas and talents with others in the company. Real cooperation doesn’t require triumphing over another group.

Of course, not all sorts of competition can be eliminated immediately. The race for promotion results partly from the pyramid-like structure that defines most American corporations. Competition among corporations, meanwhile, is, for better or worse, central to our economic system. But other sorts of rivalry can be ended with surprisingly little effort. By allowing for cooperation to replace needless competition, an office full of unhappy, anxious, unproductive people who are required to struggle against each other can be transformed into a productive, happy place to work.

http://www.alfiekohn.org/managing/nocontest.htm

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Organize Says:
Thu, 08/04/2005 - 9:51am

Starbucks Accused of Overtime Violations

Coffee purveyor Starbucks Co., which has positioned itself as a socially responsible corporate citizen, has been hit with a pair of lawsuits accusing the company of cheating its managers and assistant managers out of overtime pay. Starbucks denies any wrongdoing.

The Seattle-based retailer is the latest of hundreds of companies to face lawsuits filed under California's unique labor laws, challenging the exempt status of managers and assistant managers. Taco Bell recently agreed to pay $13 million to settle an overtime lawsuit involving 3,100 restaurant managers and assistants in California.

Under state law, employers must pay overtime unless an employee qualifies for an exemption, which, among other things, requires that he spend more than 50% of his time on management duties. "It's so apparent to anybody who walks into a Starbucks that the managers are doing the same work as the subordinates," said Dennis Moss, a Santa Monica lawyer who is representing two managers in a suit filed in Los Angeles County Superior Court. "If you are out there making coffee or cleaning a cappuccino machine, it's not managerial time. It's not exempt."

In a statement issued Thursday, Starbucks said it has done nothing wrong.

"Although it is not our policy to comment on pending litigation, Starbucks feels strongly that it has carefully complied with all applicable laws regarding the employment conditions of its partners, and we intend to vigorously investigate and defend these lawsuits," the statement said.

"The welfare and working conditions of our partners [employees] have always been, and will continue to be, the highest priority to Starbucks."

One of the two plaintiffs in the Los Angeles case, Olivia Shields, said managers are expected to work at least 40 hours a week on the floor--making and serving coffee, ringing up orders, cleaning and stocking.

Shields, who has been on disability leave since June 6, said she has worked at seven Starbucks outlets on Los Angeles' Westside since 1998, first as an hourly coffee server, then as an assistant manager and, for more than two years, as a manager. She said management duties take 10 to 20 hours on top of the floor work.

"You can't be making drinks and running the business," she said. "I spend my 40 hours on the floor and spend the rest of my time managing the business."

Shields said September, at the end of the company's fiscal year, was the hardest month because she has had to cut back on the hours of subordinates to meet corporate labor cost goals. For the last three years, outside contractors, such as window washers and other heavy cleaners, also have been cut during the last quarter, forcing Shields to pick up those duties as well, she said.

"That has meant working 60-hour weeks just to make Wall Street happy, come Oct. 1," she said. "It's the last quarter of the year that we die. You can barely move by October."

A Seattle native, Shields said she was one of Starbucks' first customers and was eager to work for the company she believed was a socially responsible business that treated its employees well.

"They said, 'When we grow, we're not going to change,' " she said. "They've changed drastically."

Shields' suit and another one, filed June 20 in Oakland, both seek class-action status and, if granted, could be combined to represent an estimated 1,000 current and hundreds of former managers and assistants. Both suits demand pay at time and a half for all overtime worked over the past four years.

A lawyer representing two managers in the Oakland case, Erin Day, said the salaries of assistant managers and managers she has spoken to range from $27,000 to $38,000 a year.

"They give them a title and the key to the store, and they work them as much as possible," she said. "It keeps their budgets low because they work them long hours and pay them a salary without any overtime."

http://www.diversityatwork.com/news/aug01/Starbucks.htm

no gods no masters

Organize Says:
Tue, 08/16/2005 - 9:11am

Raise Those Raises

By: Peter Rebhahn

Penny-pinching bosse would like to believe tha financial incentives don' motivate staffs an research has supporte their claims. But one stud confirms what employee have known all along money matters

Nina Gupta, Ph.D., professor of business administration at the University of Arkansas, analyzed 39 studies conducted over four decades and found that cash motivates workers whether their jobs are exciting or mundane, in labs and real-world settings alike.

So why the belief among some corporate consultants that money is irrelevant? "It's a myth," she says. Among the other fictions the study destroys: The beliefs that financial incentives are punitive, make workers lazy and lead to diminished quality.

Employers guarding their payrolls needn't worry. Gupta acknowledges that money isn't the only thing that concerns employees. Money's influence has its limits. Beyond a certain point higher salaries will make employees happier, but it won't buy better performance. Still, she warns that employers who dole out small merit raises--less than 7 percent of base pay--may do more harm than good. "Small raises can actually be dysfunctional in terms of motivation because employees become irritated that their hard work yielded so little," she observes. She advises employers who must give small raises to be careful about linking them to results, and scrupulous about being fair.

Gupta says that her study should put an end to debate about the power of money, but probably won't. "If you admit that money is important, then you have to spend it," she notes, and many employers aren't ready for that. "They'd rather do gold stars. They're a lot cheaper."

http://cms.psychologytoday.com/articles/pto-19990501-000009.html

no gods no masters

Organize Says:
Thu, 08/18/2005 - 10:56am

Pros & Cons of Pay for Performance
by Scott Hays
Somewhere in Corporate America, a human resources manager is tweaking her company's employee-incentive program. Maybe she's dumping last year's customized giveaways for this year's weekend getaway packages. Perhaps she's jettisoning the annual casino-awards party in favor of discreet distribution of personalized thank-you cards. What drives her is the theory that rewards and bonuses motivate employees to do their jobs better.

Still, it's only a theory -- and one that a number of CEOs and human resources managers believe is no more valid than the notion that dispensing food to a rooster every time he pecks the piano guarantees he'll soon play Beethoven. In fact, no one out there really knows if incentive programs truly work, and a number of you are convinced they can cause significant harm.

Pondering proffers

Are incentive programs good for the company or bad for morale? It depends on whether the rewards help support corporate goals, such as increased profit and customer loyalty, or if they merely engender unhealthy competitiveness and back-stabbing among employees.

Seven years ago, CEO and president Rob Rodin eliminated all individual incentives for the 1,800 employees at Marshall Industries, an El Monte, California-based distributor of electronic components. To your average outsider, this may have seemed like a great way to cripple an entire workforce -- take away the American Express certificates and Alaskan cruises and motivation drops faster than a helium balloon rises. After all, who wants to slog away at work if there's no food in the dispenser?

Rodin analyzed the five-year earning potential of each employee, concocted a formula, then went person-by-person and assigned salaries. Profit-sharing potential was set at the same percentage figure for each employee, regardless of salary, based on the company's overall performance. "It wasn't as if we imposed communism," Rodin says, "but our company was divided by internal promotions and contests. We weren't working together with a common vision. Managers were fighting over the cost of a new computer because no one wanted to put it on his P&L, and departments were pushing costs from one quarter into the next to make budget. Fundamentally, we eliminated these distractions. Now we have collaboration and cooperation among sales people, and between divisions and departments."

And, he says, productivity per person has almost tripled.

Last year in Portland, Oregon, president and CEO Mary Roberts discontinued a bonus program for the 200 employees at Rejuvenation Inc., a company that manufacturers decorative brass lighting fixtures. The manufacturing managers, Roberts maintains, begged her to discontinue the program because craftsmen were stealing parts from other craftsmen to meet quotas, and workers were pacing the production of fixtures to gobble up overtime, then working like maniacs to achieve production bonuses.

"Incentive programs create competitiveness, and that's not necessarily best for a company like ours that's growing," says Roberts. "I don't think people are motivated by rewards and bonuses. I think they're motivated because they're excited about their jobs or because they're doing something that provides a service to the world."

Then why do so many companies claim otherwise -- that incentive programs, administered effectively, improve company performance? "Personal recognition can be more motivational than money," asserts Bob Nelson, author of 1001 Ways to Reward Employees (Workman Publishing, 1994). "You can obtain from your employees any type of performance or behavior you desire simply by making use of positive reinforcement."

At Dallas-based Texas Instruments (TI) Incorporated, rewards are used to foster loyalty. Recruiting and retaining employees is a nasty battle zone in the competitive semiconductor industry. Therefore, the company offers a unique and creative compensation package that includes bonuses as well as non-cash recognition ranging from personalized plaques to country ranch parties, movie tickets to golf lessons, team shirts and jackets to footballs and train kits. The number of TI employee recognitions between 1996 and 1997 jumped 400 percent from 21,907 to 84,260.

"Our managers wouldn't use a non-cash recognition program if it didn't bring value to the employees," says Kathy Charlton, TI's manager of workplace vitality. "We're part of an aggressive industry. Our people work hard and long hours. Rewards make a difference in their attitudes and performance. Hey, everyone has a need to be recognized, and not just once a year when there's a formal review process. And when recognition is tied to effort, you end up getting more bang for your buck."

Do rewards undermine corporate goals?

It's wildly unrealistic to assume that all incentive programs work, or that by taking away individual rewards, productivity per person will triple. Maybe that's why commissions and bonuses and other rewards programs seem always half-assembled -- no one has figured out yet how to devise the perfect system. Even though TI's Charlton emphatically defends her company's incentive programs, she has never been able to definitively link motivation and productivity to non-cash rewards. And although Marshall Industries' CEO Rodin loves to trumpet his company's new nonincentive system, some naysayers claim that, for example, salespeople will never perform without commissions.

According to a 1996 survey sponsored jointly by McLean, Virginia-based Wirthlin Worldwide and O.C. Tanner of Salt Lake City, 78 percent of CEOs and 58 percent of HR vice presidents say their companies feature rewards programs recognizing performance or productivity. Two-thirds of each group report their interest in service awards is constant, while about one-quarter claim their attraction to such programs is actually increasing.

"If you want to impact the bottom line, you must invest in people, and not just with money, but also with recognition rewards," says Steven Kimball, director of communications with O.C. Tanner (a provider, it should be noted, of corporate service/recognition award programs). "It's a matter of common sense and motivation theory that has been with us forever that says people work for more than just a paycheck. That should be proof enough."

However, John Parkington, practice director of organization effectiveness for the San Francisco office of Watson Wyatt, argues that in the past two decades, companies focused too much on measuring efficiency and production. In the process, he says, they weeded out anyone with entrepreneurial spirit. In other words, if you wanted to speed up the assembly of, say, brass lighting fixtures, and you weren't particular about quality, workers could be spurred to meet quotas by financial incentive. But that's not exactly want employers today want. These days, they want someone to design software that speeds up the assembly line.

The new economy demands that employees at every level be creative problem solvers, and this is where it gets sticky for managers to design strategies for creating high-performance organizations. "Now companies are asking themselves: 'What can we do to reward people for solving problems, for being innovative and for growing the top line,'" explains Parkington. "Managers have to be smart and inventive enough to figure out new ways to reward their employees for this sort of behavior."

But can you encourage this kind of thinking with team shirts and train kits? Parkington believes a company that wants people to take job-related risks must let employees know what's expected of them, offer them encouragement, provide the resources for innovation and proffer rewards with perceived value.

Certainly, money isn't the only incentive for people to stay with a company. In a 1998 "American @ Work" survey conducted by The Loyalty Institute of Aon Consulting in Chicago, 1,800 employees ranked pay only 11th as a reason for remaining with an employer, behind such factors as open communication with managers, ability to challenge the status quo, and opportunities for personal growth. Money is especially weak as an incentive when it comes to encouraging employees to think more creatively.

Be careful not to punish employees with rewards.

Non-cash rewards don't engender increased quality, productivity or creativity, either, says Alfie Kohn, one of America's leading thinkers and writers on the subject of money as motivator, and author of Punished by Rewards (Houghton Mifflin, 1993). He believes rewards programs can't work because they're based on an inadequate understanding of human motivation. One of the most thoroughly replicated findings in social psychology, he points out, is that the more you reward people for doing something, the more they tend to lose interest in whatever they did to get the reward. And when interest declines, so does quality.

"You can get people to do more of something or faster for a little while if you provide them an appealing reward," says Kohn. "But no scientific study has ever found a long-term enhancement of the quality of work as a result of any reward system. Bribes and threats can get you a short-term effect, but that's it."

Kohn says rewards may actually damage quality and productivity, and cause employees to lose interest in their jobs. Why?

Rewards control behavior through seduction. They're a way for people in power to manipulate those with less power.

Rewards ruin relationships. They emphasize the difference in power between the person handing out the reward and the person receiving it.

Rewards create competitiveness among employees, undermining collaboration and teamwork.

Rewards reduce risk taking, creativity and innovation. People will be less likely to pursue hunches, fearing such out-of-the-box thinking may jeopardize their chances for a reward.

Rewards ignore reasons. A commission system, for example, may lead a manager to blame the salesmen when they don't meet quotas, when the real problem may be packaging or pricing. "Managers typically use a rewards system because it's easy," adds Kohn. "It doesn't take effort, skill or courage to dangle a doggie biscuit in front of an employee and say, 'Jump through this hoop and this will be yours.'"
The bottom line on growing the top line.

Cara Finn is vice president of employee services at Mountain View, California-based Remedy Corp., a software company that builds and distributes applications for business processes. To remain competitive in the hothouse of Silicon Valley, her company during the last four years has doled out to some 750 employees incentive rewards ranging from American Express gift certificates to spot bonuses and movie tickets. Only recently has Finn structured a "quality of life" program in which employees receive rewards after they've been with the company three, five or seven years.

"You can't separate longevity from performance," she says. "If an employee has been with our company for three years, he's performing." And because Remedy is a publicly-held company, with the attendant inevitable ups and downs, Finn believes rewards also help even things out. "We hold tightly to the philosophy that rewards are good, but they should neither be a deterrent nor a reason for someone leaving or coming to our company." Instead, the suggestion coming out of the Chicago-based National Association of Employee Recognition is to change your corporate culture using positive reinforcement on a daily basis to transcend those traditional programs that so often feel manipulative.

Barry LaBov, CEO of the Fort Wayne, Indiana-based LaBov & Beyond, a marketing communications company, suggests every good human resources professional find new ways to offer incentive rewards that help support specific corporate goals. "People are people and they want to be recognized," he says. "The programs that fail revolve around rewarding performance that doesn't support company goals. Improving sales performance, for example, is not enough. Today you need programs that support such issues as profitability, loyalty and customer satisfaction. And you have to do it without alienating other people within the organization."

If you're one of those people who still can't take it as gospel that the more you reward an employee the more he or she gets innovative and creative -- because it's not just about the money in the first place -- then maybe you need to listen to Kohn, who still firmly believes there's a solution to all the madness surrounding employee incentive and rewards programs. Sure you can motivate people with the proverbial carrot and stick, he says, but motivate them to do what? To work for the long-term interest of the company, or for some short-term personal goal? "Rewards are a matter of doing things to employees," he stresses. "The alternative is working with employees, and that requires a better understanding of motivation and a transformation in how one looks at management."

Kohn quotes from management theorist Frederick Herzberg, who said: "'If you want people motivated to do a good job, give them a good job to do.'" In other words, create an organization in which people feel a sense of community, maximize the extent to which employees are brought in on decisions large and small, and "dump your company's rewards program," adds Kohn. "You need to pay your employees well, pay them fairly, and do everything possible to get their minds off money and on work."

Of course, the elimination of commissions and other rewards programs doesn't guarantee quality. In reality, it takes real talent and courage to create a workplace in which employees feel important, where their work matters to them, and where they care about each other -- with or without an incentive program.

http://hr.monster.com/articles/incentiveprograms/

no gods no masters

Organize Says:
Thu, 08/18/2005 - 11:45am

Smart talk, too little action plagues firms, organizational researchers claim

BY KATHLEEN O'TOOLE

Make no mistake -- reading this alone won't solve your problems. That's the underlying message of a new business book on the "knowing-doing gap" by Stanford Professors Jeffrey Pfeffer and Robert Sutton.

Why would you read a book that doesn't promise overnight wealth, beauty or fame? Because Pfeffer and Sutton explain five brick walls that many firms fail to break through when they try to learn from other firms' successes. Well-known researchers of organizations, the authors spent four years comparing successful and not-so-successful companies to find out what keeps many business executives from moving beyond reading, thinking and talking about good ideas to actually implementing them. The book, published this month by Harvard Business School Press, is titled The Knowing-Doing Gap: How Smart Companies Turn Knowledge into Action.

Related Information:

Why managers won't let go: 1/28/98
Pfeffer, an organizational researcher in the Graduate School of Business, and Sutton, who does similar research in the School of Engineering, argue that the gap between knowing and doing is actually greater than the gap between knowledge and ignorance in companies today. American workers and managers consume large amounts of knowledge annually about how to do their jobs better. In 1996, for example, 1,700 business books were published, $60 billion was spent on company training, and at least $43 billion on management consultants. American business schools also turned out 80,000 new MBAs. The knowledge conveyed by these methods isn't always consistent, but a large chunk of it is based on systematic research, and the authors say they find that business people often agree on what are good practices. In interviews and surveys, business people often admit, however, that they don't follow those good practices.

The authors, in part, blame higher education and the consulting industry for this gap in knowing and doing.

"Business schools and consulting firms do play an important role in teaching and spreading knowledge about what ought to be done," Pfeffer says. "The problem is that for MBA students and management consultants there is a strong premium placed on saying smart things and so little emphasis placed on sticking around to make sure that organizations actually do smart things. MBA education, especially at top schools, focuses on case discussions where students gain status and get good grades for making pithy statements, which are almost never longer than one minute."

Management consultants may talk a little longer, Sutton says, but they mainly produce "written reports or a stack of PowerPoint slides, not the actual implementation of management practices or systems."

Talk also is overestimated because it is human nature for people to quickly categorize each other, the authors say. The person who sounds smartest in a meeting is likely to get a high rating because it takes much longer to find out if his or her actions are also smart. People also change jobs so quickly that it is hard to know what they have accomplished. This has led to the "unstated but widely followed belief that talk is something that happens now, and action is something that happens later," Sutton and Pfeffer write.

For instance, managers often make decisions and talk about them to employees but have no implementation strategy or way of monitoring progress.

Besides hollow talk, the authors list four other sources of inertia: debilitating fear; destructive internal competition; poorly designed, complex measurement systems; and mindless reliance on precedent. They point to companies such as IDEO Product Development, The Men's Wearhouse, SAS Institute, Barclays Global Investors, Fresh Choice and others to illustrate how some companies are able to avoid or overcome these action inhibitors.

The Men's Wearhouse, for example, is a clothing chain where executives stay in touch by waiting on customers when they are in the stores. They also emphasize their core values about how people should relate to one another by giving employees who are caught shoplifting a second chance and by monitoring sales transactions and reprimanding those who hog all the walk-in traffic for themselves.

A strong organizational memory also can undermine performance, the authors say. People need to make some activities automatic in order to be efficient, but following tradition also leads to mindlessness. "Experiments by behavioral scientists show that when people do something even a single time, this past action often becomes an automatic, or mindless, guide for future action, even when the action undermines a person's performance."

When people's theories aren't articulated, the authors say, "they can't be refuted with data or logic." One group of employees tackled this problem by spending three days identifying "sacred cows." "Every participant had to identify two 'personal cows' and to devise a plan for attacking them the following Monday morning."

The information revolution has enlarged two other roadblocks to action, the authors say. Information technology has made it possible for companies to collect all sorts of data, and many are overusing measurements to try to judge performance and confusing themselves in the process. The other problem is thinking of "knowledge" as a tangible asset, rather than of "knowing" as a process that people undertake.

In a 1997 Ernst & Young survey about "knowledge management" systems, firm respondents reported investing in knowledge repositories such as intranets and data warehouses. The systems "rarely reflect that crucial knowledge, including technical knowledge, is often transferred between people by stories, gossip and by watching one another work," Sutton says. "This is a process in which social interaction is often crucial and is impossible to capture on a web page, a spreadsheet, drawing or photograph."

The more successful firms have inexperienced people watch the more experienced and the latter constantly coaching the former, which is the learning-by-doing way that people are trained for in professions involving life and death, such as surgeons, airplane pilots and U.S. soldiers.

Implementing new business practices also requires measuring progress, but too many firms use data to judge the performance of individuals and work units that accountants developed for stockholders. People who compete with each other to meet budget targets often neglect other aspects of the company and its future development. "As long as accountants have control of internal measurements, not much will change," the authors advise.

In addition, some firms measure workers on too many dimensions. Quoting research by others, the authors say that "human beings can keep only about seven things in their heads at any one time. Having more than 20 indicators of performance in six categories dilutes the attention employees can pay to any single issue."

Sutton and Pfeffer sharply disagree with executives and business reporters who are enamored of so-called tough bosses who inspire fear in the workplace. "There is a mistaken idea that because competition has apparently triumphed as an economic system, competition within organizations is a similarly superior way of managing. This is not just a sloppy use of analogies but has real consequences that hurt real people and real organizations." Competition against other companies can build teamwork, they say, but internal competition undermines teamwork and makes people afraid to learn from trial and error.

Sutton and Pfeffer finish with a point-blank reminder that their book is just "a lot of talk. Now it is up to you and your colleagues to turn this knowledge into action -- to not just read, think about and discuss the interesting issues involved in the difference between knowing and doing." SR

http://news-service.stanford.edu/news/1999/october27/knowdo-1027-a.html

no gods no masters

externalRMT Says:
Tue, 09/06/2005 - 4:41pm

I agree..we are asked to account for evry bit of our time..but ask any seasoned manager...the program they use for posting a schedule ..can take a verteran manager up to three hours of thier monday...all time is given a label..training time..order and recieve time.admin time and non coverage.but to really analize your business..ie the pastry order ..or to do a competent schedule you must be left un interrupted,,not gonna happen..,if you are in the PARKING LOT ON YOUR LUNCH and you get a phone call.,youre taking it..stabucks wants you to have time worked =time paid..and are very adamant that there be no off the clock..i agree..but you cannot truly run your business,order what you need ,train new people,do a 30-45 mins interview per applicant that you wish to condsider AND do a three-four hour stretch at the computer doing the schedule and be on the floor at the same time..it takes the most well trained team of seasoned partners to do that..and when do you have time to develpoe that if you stil do all of the other!!

mwpugln Says:
Thu, 09/20/2007 - 8:26am
rhoebe Says:
Wed, 08/12/2009 - 6:13am

Team building refers to a wide range of activities, usually in a business context, for improving team performance. It deals with tome management, business ethics and business development. los angeles team building

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