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Reward and Recognition Reinforce Paternalism or Partnerships

Guest post by: Jim Clemmer

Article Overview: It seemed like a good idea at the time. As The Achieve Group (my first training and consulting company) was rapidly growing and hiring new people, I put together a sales incentive and recognition program. It had increasingly bigger prizes, bonuses, travel, and awards with each sales level or "club" achieved. At one of our meetings, I excitedly unveiled my new reward and recognition program.

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Reward and Recognition Reinforce Paternalism or Partnerships

"A chronic record of mediocre performance may indicate, among other possibilities, that there is something wrong with the job itself or with an organizational structure that holds employees responsible for things that they are powerless to control. Turning the workplace into a game show ('Tell our employees about the fabulous prizes we have for them if their productivity improves. . .') does exactly nothing to solve these underlying problems and bring about meaningful change." - Alfie Kohn, Punished by Rewards: The Trouble with Gold Stars, Incentive Plans, A's, Praise, and other Bribes It seemed like a good idea at the time. As The Achieve Group (my first training and consulting company) was rapidly growing and hiring new people, I put together a sales incentive and recognition program. It had increasingly bigger prizes, bonuses, travel, and awards with each sales level or "club" achieved. At one of our meetings, I excitedly unveiled my new reward and recognition program.

It was welcomed with about as much enthusiasm as a thunderstorm at a picnic. "These are the very motivational gimmicks I've been so glad to get away from," said one newly hired sales and consulting veteran. "Yeah. I joined this company to make a difference and prove to organizations that they can succeed by treating their people with dignity and respect. I like money and recognition as much as anyone else, but that's not the reason I am excited about working here," added another meeting participant. "This doesn't fit our values of working together and treating each other as adults. How can we partner with you to build the business if you're dangling carrots in front of us like we're donkeys?" asked a third.

They were right. I humbly put away the plaques and flashy announcements. We had put a lot of time and energy into hiring partners - Achievers or associates whose personal vision, values, and purpose were strongly aligned with those of the company. We didn't want just employees, we wanted people who cared deeply about the business because of what we stood for, where we were going, and why we existed. My proposed reward and recognition program contradicted all that. It was too shallow and crass - even insulting. It threatened to swing attention away from the deep, meaningful issues of principles and purpose and move them to the hollow level of self-interest and selfishness.

Our Values Are Showing

"Well Jones, according to our policy manual you're about due for a compliment!"

I've always felt that managers and leaders use rewards and recognition in very different ways. But I've had trouble understanding what those differences actually were. Chapter 16 of Firing on All Cylinders, is loaded with strategies, techniques, and examples of successful reward and recognition programs and strategies. As I wrote the original chapter for the first edition, rewrote it for the second edition, and watched managers and organizations use the approaches I'd outlined, I was puzzled. Why were the same methods highly successful in one organization and dismal flops in others?

Then I shared the speaking platform with Alfie Kohn a few times and read his book, Punished by Rewards. This controversial book takes the dangers and effects of reward and praise to a negative extreme. I don't agree with all of his conclusions. But he presents thoughtful arguments based on a massive review of research covering this topic.

As so often happens with a good book, Kohn clarified and articulated the issues I'd been struggling with: "All rewards, by virtue of being rewards, are not attempts to influence or persuade or solve problems together, but simply to control... Control breeds the need for more control, which then is used to justify the use of control...Punishment and reward proceed from basically the same psychological model, one that conceives of motivation as nothing more than the manipulation of behavior...Good management, like good teaching, is a matter of solving problems and helping people do their best. This takes time and effort and thought and patience and talent. Dangling a bonus in front of employees does not. In many workplaces, incentive plans are used as a substitute for management: pay is made contingent on performance and everything else is left to take care of itself...If it does makes sense to measure the effectiveness of rewards on the basis of whether they produce lasting change, the research suggests that they fail miserably."

As with so many improvement tools and techniques, the big difference with rewards and recognition approaches has to do with how they're used.

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Home > Leadership > Jim Clemmer > Reward and Recognition Reinforce Paternalism or Partnerships >
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About the Author: Jim Clemmer
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Jim Clemmer's practical leadership and personal growth books, workshops, and team retreats have helped hundreds of thousands of people worldwide improve personal, team, and organizational performance. Jim's web site, http://www.JimClemmer.com, has over 300 articles and dozens of video clips covering a broad range of topics on change, organization improvement, self-leadership, and leading others. Sign-up to receive Jim's popular monthly newsletter, and follow his leadership blog. Jim's international bestsellers include The VIP Strategy, Firing on All Cylinders, Pathways to Performance, Growing the Distance, The Leader's Digest and Moose on the Table. His latest book is Growing @ the Speed of Change.

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More from Jim Clemmer
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Re: looking for partner Re: looking for partner - Partnerships in business can be tricky. Most partnerships fail. Here are a few points to ponder before starting a partnership: - Should have common goal and vision - Level of commitment in business - Expectations from business and each other. - Good sense of self-worth - Financial Position – Have a good experience in related business with strong financial standing I suggest you to go on Google type “Partnership Assessment form” and Partnership Assessment Tool” You find some good results. Further apart from this forum look into on social media and business sites.
Re: Has anyone used the SBA's Micro Loan program? Re: Has anyone used the SBA's Micro Loan program? - [quote="Kevin Lee":1gvayekb]Hi Barbara, Personally, I would prefer to just use my own money, and if I needed more, I would consider enlisting the help of a partner. I want to limit my risk and liabilities as much as possible.[/quote:1gvayekb] I disagree with the partnership advice. The only ship that wont sail is a partnership. Partnerships make business messy and complicated. If you need the funds to expand just expand slower. If you need the funds to stay open you need to look at your business plan a little more closely.
Re: Finding AND Keeping Good People Re: Finding AND Keeping Good People - Employee retention or as you mention “Keeping the Good People” is one of the biggest challenges for any growing business. It takes a huge effort from the entrepreneur’s end. I can come up with the following when it comes to KEEPing the good people- 1. Motivation of the employees 2. Recognition of the needs of the employees 3. Activities to make the employees feel valuable towards the organization 4. Make benefits more accessible 5. Offer profit sharing incentives 6. Create clear career paths at the company 7. Consider telecommuting, job sharing and other flexible working arrangements 8. Incentives are essential and they don't have to be huge 9. Have other managers praise an employee's work 10. Be sensitive to the balance between work and private life
Partnerships Partnerships - I didnt have time to read through everyone's reply here to Robert, However, I read through Roberts first few posts and a few of the other's replies. Partnerships must total 100%, and with three partners, one of you is going to have to hold 34%. I strongly suggest that's the one who invented the product. A lawyer would probably advise you of that anyway. I also suggest that you speak to your own lawyer, find a few who specialize in patent's as well as partnership agreements and consult with them about your concerns. This way you get a few professional opinions. This will ensure that you 1) have professional opinions outside of your group and 2) that your partner (who also happens to be a lawyer) isn't going to pull the wool over your eyes somewhere along the way. Some lawyers are very good at hiding things in contracts...they are caled loopholes. You'd be surprised how many stories i've heard of partners stabbing the other in the back later down the road (even those partners that are family and close friends). You must always look out for number one and protect yourself and in your case, your invention too. You have to absolutely remember one thing...you are the inventor...without you they wouldnt be able to hold a share of your invention. You are "the God" here and honsetly, it's nice to cut them in and share the wealth, but why so evenly? who ever said they get to have so much when you have basically done all the work? If your gut is telling you something is amis, and that's what it sounds like to me...that you're very uncomfortable with this. Listen to your gut instincts. I certainly would make some changes if I were you.
Different types of funding Different types of funding - Business Relationship Funding This is another source of funds that can be overlooked. It may be possible to introduce potential alliances to add value to both parties. It may produce an ultimate exit route in the medium to long term. Joint Ventures: Requires a legal agreement embodying the deal and another company Partnerships: Two companies collaborate with possible funding. Joint working relationships: These are an informal partnership which may be more project specific where the parties can share resources. Agencies: These can be geographical or product specific and generally incorporates a payment for the right to the agency. Distributors: Very like an agency but may not necessarily involve up front payment. Alliances: These do not require a separate company and can be embodied by a legal agreement to work together. Trade investors: Otherwise known as Corporate Partnering. This can be a good way to involve a much larger company in the business with a view to possible trade sale further down the line. Associates: This can be a loose arrangement with no fundamental commitments either way, rather like a preferred supplier. Equity Swop: Two companies exchange shares to a similar value to develop both businesses. Franchises: This can allow the business to grow without further direct investment. Licensing: This involves licensing a product or service to enable others to sell it. This requires you to own the intellectual property.


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