The Fish Rots from the Head Down


“I’m having trouble with my team,” a manager explained. “We make too many mistakes.  Quality is a concern.  We have too many accidents.  People miss too much work.  Today’s employees just don’t seem to take pride in their work.”

I asked if he would be OK if I visited with his team and he said, “Sure, if you think that might help.”

Several members said, “He doesn’t get here on time himself and he sometimes leaves early.”  Others’ comments included: “He doesn’t wear the new safety vests; says they are too hot.  Why should we.”  “He berates us about meeting schedule when he knows that some of the parts need reworking.”

When I mentioned these behaviors to the manger, he said, “I’m the leader.  Why should I have to do everything they do?  I have a reserved parking space.”

This manager apparently operated as a do-as-I-say, not a do-as-I-do leader.  Employees study their leaders constantly and leaders’ actions overpower their words.

You want employees to come to work on time; show up early yourself.  You want quality work; show a passion for quality.  You want people to work safely; demonstrate safe practices with your behavior.  Teams, like fish, rot from the head down.

 

Be Wary of Using Financial Incentives to Motivate


Part 2 of 5 on Employee Pay

I believe in “pay for performance.”  That is, higher performers deserve greater pay.

However, financial incentive and bonus systems often result in less performance plus other unintended consequences.

Psychologist Sam Glucksberg, in his famous candle experiments, predicted that cash awards would motivate teams to produce better solutions faster.  However, the opposite occurred.  Teams that had opportunities to earn larger cash awards actually took longer to complete their work.

A number of studies in actual companies show that financial incentives often lead to less, not more, performance.  Additionally, incentives may encourage jealously, turnover, and cheating.

In an effort to improve food quality, a large canning company offered bonuses to employees who found insect parts in their food products.  Guess what happened.  Employees started bringing insect parts from home, tossing them into the process and later discovering the parts and claiming bonuses.

For very repetitive work, incentive systems may actually increase performance.  But for assignments that require problem solving, incentives change the focus from “get the best solution” to “do what you have to do to get the award.”

What then is the best way to reward high producers?  How about just paying them more based on managers’ judgements?