CHAPTER 12, MOTIVATING PEOPLE

1. CHAPTER 12, MOTIVATING PEOPLE Companies Are Judged By The People They Keep

2. BENEFITS OF PERFORMANCE MEASUREMENT/MANAGEMENT • Performance planning • Routine performance measurement/management increases effectiveness of supervision • Opens communication channels • Enhances empowerment

3. BENEFITS OF PERFORMANCE MEASUREMENT/MANAGEMENT • Enhanced learning from recent success or failure • Benchmarking plots a path to success • Maximize strengths and deal with weaknesses • Good for employee morale • Improved performance

4. PITFALLS OF PERFORMANCE MEASUREMENT/MANAGEMENT • ATTITUDES TO MEASUREMENT • Obstacles come from management thinking that: • some jobs can't be measured • measurement is too difficult to work with • there isn't time to measure • measurement is a prompt or cue for punishment • Costs outweigh benefits • Measure too much • Measure too little • Measure the wrong things

5. Where Are We And How Did We Get here? • Most people don’t like to be measured. • Those who do like to be measured are already winners • Those who don’t like to be measured have had some bad experiences • Employee of the month • This is a practice that is very dangerous!

6. Flaws in positive reinforcement • What we presently do to deliver reinforcement is also flawed. • too late to be effective, • we deliver reinforcement to the wrong people, • Don’t know how to be positive, so we choose to do nothing

7. Where Do We Want To Be, And How Do We Get There? • An absolutely perfect performance management system would have the measures collected by the performer, and the motivation to improve come from within the performer. • Wouldn’t it be fantastic to have a group of sales people as motivated and as independent as Olympic athletes..

8. ignore good performance just enough to get by minimum required punish bad performance Figure 12.1 The evolution of reinforcement

9. More than is expected reinforce good performance discretionary effort minimum required Figure 12.2, the opportunities of positive reinforcement

10. Discretionary effort • Discretionary effort, …. is what will make your organization excellent. • There are excellent performers who are simply waiting for the system to offer the reinforcement they need because they cannot find a way to get the positive reinforcement from within.

11. Some principles to follow to make measurement active are: • Make positive reinforcement happen as often as possible • Don’t save up reinforcement until the annual company party. • The reward must have value to the performer • Most people say that the reward for good work is more work!

12. Some principles to follow to make measurement active are: • The reward should be earned • Don’t reward people for things that happen naturally, a meaningful reward should reflect meaningful work. • There should be a celebration

13. What is Positive Reinforcement? • Here is the general rule. “positive” reinforcement can only be defined by the performer. • Here are some short examples. • A manager who was an avid golfer, wanting to reward a team for being “on the ball” gave each member a sleeve of golf balls and a pass for the local golf course at the Christmas office party. • The top sales person at the real estate office reached a new record of sales which netted the firm in excess of $750,000 in commission.

14. “Management by wandering around”. • It would be better if they used “Management by wondering around”.

15. The value of rewards • Rewards don’t have to be expensive, they need only be of trophy value to the performer. • Incentives and rewards are an integral part of reinforcement and money is not always available..

16. People, Our Most Valuable Asset, and most Threatening Liability • We get: • An employee refuses to wear a hard hat in the shop because their hair gets messy. • A drug pusher stands on a street corner defying the law. • An employee steals from the company • You decide to drink beer rather than study performance management. • We need to use the “no-but” rule

17. We want: • What do we want instead? We want performances that add value and make the realization of goals possible. • The employee to wear the hard hat so that safety is in the workplace • Drug pushers to choose a socially acceptable way to support themselves • Employees to use the assets of the company for the benefit of the company • You to study and use performance management so you can get a job and afford good beer • So, how do we get what we want?

18. People choose to performbased on their analysis of the Consequences of their choice • Employees don’t wear hard hats because the consequence is messy hair. • Drug dealers defy the law because the consequence is they make lots of money • An employee steals from the company because the consequence is they will have what they want. • You drink beer because its fun.

19. The performers view of consequences Positive Negative I Get something I want I Get something I don’t want Immediate Future What I get happens immediately What I get happens in the future Certain Uncertain What I get happens every time I perform What I get may or may not happen Consequences, what do they look like. • Figure 12.3, the dimensions of consequences.

20. To the performer To the organization NIC hair gets messy PFU injury could be avoided Putting on the hard hat PIC cash in hand NFU buyer lives could be ruined PIC goods in hand NFU company might go bankrupt Selling drugs PIC having fun with friends NFU possible future career impact Stealing Partying Figure 12.4, how consequences are perceived

21. Which consequences are most powerful? • The lesson learned here is that Positive, Immediate, Certain, (PIC) consequences are very powerful in terms of having people choose to do something and Positive, Future, Uncertain, (PFU) consequences are very weak. • Similarly, NIC consequences are very powerful in getting someone to stop doing something while NFU consequences are weak.

22. Figure 12.5,conflicting perceptions of consequences. • When making a personal income, avoiding immediate cash costs or improving the short term bottom line are up against future, uncertain strategic gains, performers will most frequently choose the short term, thus damaging the long term. • When consequences are managed, performance measurement/management becomes active.

23. Performance Measurement/Management, The role of leaders • Leaders have four specific jobs to do. Each job is done with the full consultation of performers. • Define the results • Put boundaries on the rewards that can be used • Monitor the scope of the distribution of rewards • Monitor the effectiveness of the performance measurement/management system

24. Performance Measurement/Management, The role of leaders • At the same time, leaders have three jobs they should not do. • Don’t offer reinforcement that is not recognized by the system • Don’t participate in celebrations unless you are asked • Don’t abandon the system if there are glitches in the short run.

25. Chapter Summary • Good systems need good people. • There is no sense in examining a process unless at the same time you examine the people who govern the process. • A good people system involves developing a culture that make change safe and rewarding.

26. Closing Remarks • Please remember three things from this book. • Plan for what you want. • Act on the plan • Measure your results • If you can and will do those three things, this study has been a success.