Reference no: EM132809879

Creating the Achievement Workplace

In organizations that are winning the competitive struggle of the mar- ketplace, there is a clear strategy that fits the opportunities of the mar- ketplace. Further, there are usually wonderful developments taking place deep inside the organization. For example, a large electrical util- ity that has been undergoing re-creation-level change for several years celebrated the work of a supervisor and her team that was able to pro- duce savings in excess of $50,000 per year. In the same company, a team in accounting was able to reduce account receivables exceeding 90 days by 90 percent. In a high-technology company, an accounts receivable clerk was conducting a routine phone call to a customer when he learned about a major problem in a recent delivery. He called the sales representative, and she was able to take immediate action. The cus- tomer was so impressed with the firm's responsiveness that it turned all competitors away.

In every organization, marvelous events occur every day. People cover for each other when one is overwhelmed with work. Products are sometimes hand-delivered to a customer (internal or external), even though it is not part of someone's job but is desperately needed. The talent within a firm is sometimes just incredible, and this presents a potential reserve that few executives truly understand, believe, or know how to engage.

In this book we have presented tools for implementing the strategy of an enterprise. These tools work because they are based on the science and concepts of understanding human behavior. As we have stated, human behavior is a function of four forces:

Focus-the antecedents of communication that defines what needs to be done

Feedback-the measures, information, and data used to track how one is doing

Competencies-the know-how and capabilities to do what needs to be done

Rewards-the consequences, usually positive, that one receives or believes will be received for doing what needs to be done, based on a desired action or result

Strategies, goals, and accountabilities come before the behaviors and, if effective, get them started. Measures are the systems to track how well performance is progressing; measures are the information life force of an organization. The competencies are the skills and abilities that people need to perform the desired functions and that are acquired or developed within the organization. The most powerful force, how- ever, is the consequences of actions, which determine whether or not people will continue or increase the desired behaviors or discontinue or decrease them. Will people find value in their efforts, or will they find them unfulfilling or frustrating? Are they doing the desired actions because they have to or because they want to? The primary challenge of leaders is to use rewards and consequences in a sincere and strategic manner to create win-win outcomes.

There are those who believe that consequences just reflect a "carrot and stick" relationship between managers and employees. Taken to an extreme, this reflects a tyrannical approach to leadership; this produces a culture of compliance. Further, there are those who seek to protect their employees from the threats and forces of the organization, with the hope that loyalty will provide the spirit for high performance. These companies then create entitlement and dependency-oriented organizations. This reflects a paternalistic approach to leadership.

An achievement-oriented environment results when the goals and roles are clear, measurement and feedback are frequent, and contribu- tions and results are recognized often. Achievement comes from doing something of which one can be proud. It often requires concentrated or extra effort. The reinforcement, whether it comes from inside oneself or from someone noticing the value that is created, is positive. The feel- ing is that one wants to do it again. In the achievement-oriented orga- nization, this relationship between action and consequences occurs thousands of times every day. The daily practices of executives, man- agers, and employees reinforce the desired actions of others as a regular habit. The beauty of this process is that it is simple to understand and clearly valuable to all. The opportunity for the organization is that few companies do this on a regular basis. Here is a unique way to establish competitive advantage.

The Primary Purpose of Reward Systems

Organizations can create conditions in which people find a wide variety of rewards in the work they do. Some of these rewards come from the work itself, some from peers, some from customers, and some from managers or supervisors. There are conditions within the workplace that encourage and reinforce people for serving their cus- tomers in a manner that achieves a win for the customers and a win for themselves.

Reward systems should be designed with the central purpose of pro- viding people with an opportunity to share in the achievements of their contributions. The process does not imply that people are not already performing at a fully competent level. Rather, it is aimed at continually improving performance at a rate that is faster than that of competitors. Sincerity is key to the effective use of consequences. If reward systems are established as a way to manipulate people, they are likely to fail. If, on the other hand, they are established to reinforce progress, achieve- ments, and service to the customers, they are very likely to succeed.

In making the transition to a more achievement- or performance- based organization, there are those who will seriously resist the change. They will complain about it, criticize it, or encourage others not to respond. If the leaders yield to this resistance, the more the "resisters" will be rewarded for their efforts and the less that will go to those who support the change. The best strategy is to ignore the resisters and focus attention and rewards on those who do respond, adapt, and become energized. If executives yield to those who resist desired change, they will create an environment where change can be ignored or resisted, and the innovators will feel defeated. The ability to adapt to a changing market will be diminished by the very people who are responsible for the organization's leadership.

Question:

Can someone help me explain this two sections thoroughly?