Tweet

Why Rewards Cause Problems #3: Rewards Rupture Relationships

Guest post by: Robert Whipple

Article Overview: It is not unusual to find a reward structure that undermines relationships between people. Often the symptoms are not recognized for a long time. Bad feelings are held under the surface until there is an eventual eruption. This article examines the relationship between rewards and relationships.

Why Rewards Cause Problems #3: Rewards Rupture Relationships

Rewards Rupture Relationships

This caution about rewards makes intuitive sense. If the pie of rewards is only so big, the granting of some pie to one individual will reduce the amount left for the rest. Incentive programs tend to pit one person against another in the scramble to get as much of the "good stuff" as possible. This can lead to all kinds of negative repercussions as people undermine each other, even outright sabotage sometimes occurs. Since the company will do better if there is harmony and good teamwork, the granting of specific performance rewards works at cross purposes to corporate well being. Alfie Kohn puts it this way, "Very few things threaten an organization as much as a hoard of incentive-driven individuals trying to curry favor with the incentive dispenser." (Kohn, 1993, p 113)

So what is a manager to do? Rewarding people for good performance is important to keep that stream of performance going, but if it causes people do undermine each other, it is a net negative force for the organization. I think a good solution is to have both team and individual rewards. They do not both have to be monetary. One time you might give a party for a team that performed well along with individual financial incentives for the few players who did the most to get that performance. Another time, reverse the logic and give a cash bonus to the entire team for a job well done, but couple that with social recognition (no cash) to the lead people on the effort.

By seeking to reward both individuals and groups, you can break the stigma of every man for himself. If you mix up the incentives so there is not a constant or expected pattern, it helps avoid the problem of entitlement.

Creating the right culture, one of trust, also goes a long way at enabling recognition activities from getting out of control. Test for the level of fear in your organization. If it is high, chances are there is no trust, and reward programs will tend to cause a lot of internal strife. If this is the case, go to work on the underlying culture, and fix that first before trying to send out signals using rewards.

Related Articles
  New Study of Corporate Rewards Program Proves...
  What Are The Different Categories Of Employee Rewards And Recognition Programs?
  Motivating Employees in the Workplace
  High Performance
  Motivation with consequences
  Be Patient
  Why Rewards Cause Problems #2: Rewards Can Punish
  Why Rewards Cause Problems #5: Rewards Discourage Risk
  Revealed key elements of a successful customer loyalty programs
  Results are in of a new study...
  Using Total Rewards to Motivate Sales Professionals During Uncertain Economic Times
  Turn Your Resolution Into Success
  Making Money Online: It’s Not as Hard as You Think!
  Rewards and Recognitions to Motivate Employees
  Why Rewards Cause Problems #4: Rewards Ignore Reasons
  How to Overcome the Fears of a First Time Entrepreneur
  Behavioral GoalSetting for Success
  Zero Reward, Zero Recognition: Will That Be Your Dream Company?
  Focus on Problems Not Symptoms To Improve Strategic Execution and Results
  The Risks And Rewards of Being Self Employed

Article Tags: motivation entitlement relationshipsproblems, pay, Punishment, rewards



Related Forum Posts
Entrepreneurs come up with "The Big Idea" - A question we have been asked more than once recently, by both aspiring entrepreneurs and entrepreneurship researchers, is: How do entrepreneurs come up with "The Big Idea"? The most recent case was an MBA student who really wanted to become an entrepreneur but felt he could never come up with a "big idea". Well, in our experience the reality is that most successful entrepreneurs didn't think they were going to come up with a big idea either! Our advice to this MBA was straightforward. Don't look for big ideas, look for problems that need solving. Problems are a much easier starting point and act as a focus for creativity and innovation - providing you can be passionate about it and are prepared to devote an obsessive level of attention to the important details. At our core we are all resourceful, creative creatures once we have a problem in front of us. Ideally the problems that you should seek should be in an area where you have experience / expertise. That will help ensure you really understand the problem and increase the likelihood of you being able to formulate an intelligent and practical solution, incorporating the potential for a competitive advantage. Virtually all the ventures we know arose out of dissatisfaction with the current state of things. Viewing innovation and entrepreneurship as the process of identifying problems, devising potential solutions and then implementing those solutions is often more useful and productive as a perspective.
Meet Mary Sue Milliken - chef and restaurant owner - Mary Sue Milliken will be at our "Launching an Edible Life" event February 4 in Los Angeles ... come join us! Contact aswift@ladieswholaunch.com for registration details. If there's just one thing you need to open a restaurant, it would have to be a stove, right? Think again. When Mary Sue Milliken and her best friend/fellow chef/business partner Susan Feniger opened City Cafe in Los Angeles in 1981, they had no stove or oven, only a hot plate and a hibachi out back in the alley. Humble digs, especially for two professionally trained chefs-Milliken had attended Washburne Culinary Institute, while Feniger studied at the Culinary Institute of America. Their resumes included stints at three-star restaurants in France, Spago in Los Angeles, and Le Perroquet in Chicago, where they met in 1978-the first women working in that restaurant's all-male kitchen. Rich in experience and vision, but not in funds, they were happy to have a restaurant to call their own and quickly began perfecting a unique, multicultural fare, which incorporated recipes from Greek, Indian, and Thai cultures, as well as their own mothers' recipes. Once they expanded to City Restaurant in 1985, they became culinary icons, recognized for their fresh mix of refined culinary technique and exotic Third World flavors, all dished up with down-home charm and playful enthusiasm. Now overseeing 375 employees between the Border Grill restaurants in Santa Monica and Las Vegas and Ciudad in downtown Los Angeles, the partners have also found time to write five cookbooks, including the recent Mexican Cooking Essentials for Dummies; host the popular Food Network shows "Too Hot Tamales" and "Tamales World Tour"; and launch the Border Girls brand at Whole Foods Market. What we learned from Mary Sue: Not every venture will be successful, but every experience will be worthwhile. "You've got to bounce back and just keep going. They're all great lessons to learn." Words of Wisdom "I think we both subconsciously were willing to start in a really meager setting, just because it was an opportunity not to work for a man." Penniless But Passionate "We had come home [from France] with the intent to open a restaurant together, and we didn't have a penny to our names. I was 23 years old. I had not been to college. I had no idea how to launch a business. None. Susan had a degree in economics and had been to chef's school. She's five years older than me. But she also didn't have any idea how to launch a business." Cook What You Know "First of all, you just copy things. But then, it starts to be a very personal cuisine, which is what we basically used those three-and-half years at City Cafe for-to create our own personal style of food. And it was so well-received. It started out as country French food, and it kept expanding all the time." Eclecticism, Not Fusion "We did some really groundbreaking stuff. This was in 1984, and still, when our City Cuisine cookbook came out in '87, people said there's nowhere to put this book on the shelves of the cookbook aisles, because you guys are all over the map. And there just wasn't that kind of integration of different culinary ideas. We never called what we did "fusion." We always felt like we stayed very true to the Greek cuisine, or the Indian, or the Thai, or the Mexican, or the Scandinavian, or whatever it was." On-the-Job Training We slowly started learning about business, so when we launched City Restaurant, which was really the thing that put us on the map, it was a 125-seat restaurant with a full-on kitchen. It was on La Brea. We raised the $660,000, and had to do a whole prospectus. I'll never forget, my net worth was $12,000, and Susan's wasn't much more. But we were able to learn by the seat of our pants, and we've been learning ever since." How Much Is Enough? "We were just making educated guesses-or uneducated guesses. In the end, $660,000 was not enough money at all. We were completely short, and we had to get an angel to come in and sign a guarantee on a bank line of credit for us. Really, it was a stressful opening, because we only had like two-and-a-half days in the kitchen with food before we had to open the doors to the public because we were so broke." Hindsight Is 20/20 "If I knew then what I know now, I would have somehow found some financial bridge so that we could have had a little more practice before we opened. I mean, literally, the first couple weeks, there were nights that we didn't even go home, and we were really burning the candle down to zero." It's a Man's World "I think we were both ready to be on our own. And the prospect of working under men, and working our way up, and trying to fight through all of the barriers, looked less fulfilling than just starting out [on our own]. Even though we didn't even have a stove, we still opted to start out calling our own shots." Know When to Grow "The growth ... it's a really personal thing. It depends on how equipped you are for the challenge and stress of growth, and how your business is doing. I mean, we've grown where things worked out really well, and we've grown where it's created a big strain on the existing businesses, and the new businesses didn't work." On Losing Money "When I look back on it, I think, 'Well, I didn't go to college. That's about how much college might cost me. I'll just chalk it up to experience.' Now I have an even better understanding, and luckily, it didn't happen at a time when I really couldn't afford it. But I'll tell you, being an entrepreneur and being in business is a real roller coaster." A Thankless Job Has Its Rewards "When the Food Network came asking for us to come and promote our second book, and they noticed we were funny and how we finished each other's sentences, they said, 'You girls should have a TV show.' The reason we should have had a TV show was that we did all of this really thankless teaching before that, and I'm not even sure it brought bodies into the restaurant. A lot of people might have looked at it as a waste of time. But I think you never know what skill you're going to develop, [and our teaching gave us the skills we needed to do the Food Network show.]" Be a Great Boss "We learn a lot from our colleagues, and from other companies that we want to be like. We're always looking for innovative ways to really make our workplace so phenomenally attractive that we can't lose good people, and we can attract the best. Those are big goals for us all the time." My Most Rewarding Business Moments... "... are when one of our past employees mentions how working for us made a difference in their lives. It's the best feeling in the world!" Be Good at Everything "You have to be a great leader, as well as a great cook, as well as organized, because it's a business of so many details. I think there are a lot of restaurants that fall through the cracks because they're missing the boat on something, and customers just don't come back." All Work and No Play "You have to be willing to walk away when you have a pile of work on your desk and stuff that you really should get done. You've got to be willing to walk away and clear your mind and be in the moment with your children or your husband, or whoever. You have to convince yourself that it's equally, or more, important than your job." This Featured Lady was profiled by Sarah Tomlinson, a Los Angeles-based freelance writer.


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

Avoid Burnout: Do the Limbo Regularly

Five Ways to Show Honest Appreciation

When Living the Dream isn't enough!

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.