Rewarding Employees Quotes

Good strategy requires board members to think beyond the boardroom and recognize and reward employees who demonstrate stewardship behaviors.

Talent is indispensable, although it is 'always' replaceable. Just remember the simple rules concerning talent: Identify It, Hire It, Nurture It, Reward It, Protect It. And when the time comes, Fire It.

A salary is, to a man's employer, what his wife's vagina is to his wife: a tool used to (1) reward; and (2) control him.

When employees see each other as teammates and encourage each other to do a better job, everyone in the company shares in the rewards.

To paraphrase Einstein, insanity is expecting employees to do one thing while rewarding them for doing something else.

An 'Employee of the Month' is a titled given to someone who best helped someone else actualize their dream—in that particular month.

My life has been filled with unexpected disappointments and tragedies that led to incredible and rewarding opportunities.

With his final blow delivered, he pulls me up toward him, first by my hips, and then by my hair. Groping my breasts and kissing me, he is full of congratulations. ‘Well done, Megan, you took your punishment well. Now it’s time for your reward.

Is it really necessary to reward the CEO with several million dollars? Why isn’t it logical or common sense to pay the minimum-wage employee another quarter, give a quarterly fifty-dollar bonus, or even provide a two-hundred-dollar gas gift card?

The history professor Nelson Lichtenstein told me, “What you can’t measure, you can’t reward,” and that may be why executives are so focused on work hours. For decades, the corporate world has been consumed with metrics. Managers love tangible measures by which they can determine success or failure. Work hours is one of the easiest ways to measure employee performance, but total hours worked is a meaningless statistic.

The travails of being an employee include not only uncertainty about the duration of one's employment, but also the humiliation of many working practices and dynamics. With most businesses shaped like pyramids, in which a wide base of employees gives way to a narrow tip of managers, the question of who will be rewarded - and who left behind - typically develops into one of the most oppressive of the workplace, and one which, like all anxieties, feeds off uncertainty. Because achievement in most fields is difficult to monitor reliably, the path to promotion or its oppositie can acquire an apparently haphazard connection to results. The succesful alpinist of organizational pyramids may not be the best at their jobs, but those who have best mastered a range of dark political arts in which civilized life does not usually offer instruction.

Give people a voice, encourage, motivate and reward them

Don't miss work and never be late. Your boss will appreciate it, and he will reward you by shaking your hand in gratitude after he lays you off.

Pizza as a reward at work, gotta love it. Personally, I'd rather have that than a raise. Give me a pizza, boss, and let me know you truly value the work I do.

bonuses don't really motivate workers. Once they reach a certain baseline salary, money is no longer the main driver. They need something more. Reams have been written about the Millennial generation's hunter for impact and meaning at work. In one way, I think Millennials (and Generation Z) are not so different from the rest of us. They just voice the desires the rest of us have learned to keep quiet.

People act in ways to maximize their self-interest within a company, so create incentives that align employee's objectives with the organization's mission statement. Reward compliance with core values as much as profitability, especially in the face of competitive pressures.

Throughout history, the life of a businessperson always involves some risk; the higher the risk, the greater the reward. On the other hand, the life of an employee in any workforce involves minimal to no risk at all, resulting in a lifetime full of steadiness with little to no accomplishments during this lifetime. However, there is a crucial factor which can also be considered as a trait or characteristic that made many remarkable men and women throughout history reach high levels of their career paths, which is considered to be “success” in our modern world: Audacity.

[Studies have found] that the typical entrepreneur earns less monetary compensation than her employee counterpart. Why then do so many entrepreneurs willingly engage in what is inherently risky activity? Because the additional psychic rewards—being one’s own boss, pride in self-accomplishment, and so forth—make the entrepreneurial endeavor worthwhile even if the entrepreneur does not gain the mega-prize. This, in turn, helps explain why entrepreneurs have a comparative advantage relative to large companies in attempting to discover and commercialize breakthrough innovations. Because a not insignificant portion of the entrepreneur’s “income” from her activity is psychic, the entrepreneur is the low-cost provider of radical innovation.

As we move toward the employee-less society, where ideas become currency and innovation gets rewarded more than manual or managerial services, you will have the opportunity to live a life you want to. In I Was Blind but Now I See, I wrote about how people no longer needed a home or an education. How both are leashes that society has created to hold you down and prevent you from growth.

When I tried to access one of the other entertainment libraries, Vintage Movies, the system informed me that I wouldn't be granted access to a wider selection of entertainment options until I had received an above-average rating in three consecutive employee performance reviews. Then the system asked me if I wanted more information on the Indentured Employee Entertainment Reward Program. I didn't.

A good culture is like the old RIP routing protocol: Bad news travels fast; good news travels slow. If you investigate companies that have failed, you will find that many employees knew about the fatal issues long before those issues killed the company. If the employees knew about the deadly problems, why didn’t they say something? Too often the answer is that the company culture discouraged the spread of bad news, so the knowledge lay dormant until it was too late to act. A healthy company culture encourages people to share bad news. A company that discusses its problems freely and openly can quickly solve them. A company that covers up its problems frustrates everyone involved. The resulting action item for CEOs: Build a culture that rewards—not punishes—people for getting problems into the open where they can be solved.

Finally, the memo said that Yahoo was full of employees who were “lacking the passion and commitment to be a part of the solution. We sit idly by while—at all levels—employees are enabled to ‘hang around.’ Where is the accountability? Moreover, our compensation systems don’t align to our overall success. Weak performers that have been around for years are rewarded. And many of our top performers aren’t adequately recognized for their efforts.

Moments of pride commemorate people’s achievements. We feel our chest puff out and our chin lift. 2. There are three practical principles we can use to create more moments of pride: (1) Recognize others; (2) Multiply meaningful milestones; (3) Practice courage. The first principle creates defining moments for others; the latter two allow us to create defining moments for ourselves. 3. We dramatically underinvest in recognition. • Researcher Wiley: 80% of supervisors say they frequently express appreciation, while less than 20% of employees agree. 4. Effective recognition is personal, not programmatic. (“ Employee of the Month” doesn’t cut it.) • Risinger at Eli Lilly used “tailored rewards” (e.g., Bose headphones) to show his team: I saw what you did and I appreciate it. 5. Recognition is characterized by a disjunction: A small investment of effort yields a huge reward for the recipient. • Kira Sloop, the middle school student, had her life changed by a music teacher who told her that her voice was beautiful. 6. To create moments of pride for ourselves, we should multiply meaningful milestones—reframing a long journey so that it features many “finish lines.” • The author Kamb planned ways to “level up”—for instance “Learn how to play ‘Concerning Hobbits’ from The Fellowship of the Ring”—toward his long-term goal of mastering the fiddle.

How to build a strong culture44 1. Have strong hiring filters in place. Explicitly filter for people with common values. You need to be careful that this does not act as a mechanism to inadvertently filter out diverse populations. You can have both a common sense of purpose and a diverse employee base at the same time. See later sections and the interview with Joelle Emerson for more information. 2. Constantly emphasize values day-to-day. Repeat them until you are blue in the face. The second you are really sick of saying the same thing over and over, you will find people have started repeating it back to you. 3. Reward people based on performance as well as culture. People should be rewarded (with promotions, financially, etc.) for both productivity and for living the company’s values. 4. Get rid of bad culture fits quickly. Fire bad culture fits even faster than you fire low performers.45 This chapter focuses on #1 above:

His goal was to ensure that once we had gone public and everyone’s stock had vested, we had a compensation system that was transparent and competitive, benchmarked against our peers. One that would ensure the long-term health of the business. He wanted to reward past and present partners and employees, yet leave enough in the pot for generations to come. It required a lot of analysis, but also a lot of judgment, understanding what people thought and felt and smoothing out any perceived differences.

Burned-out, stressed-out, and frazzled leaders foster organizations that experience high turnover, low employee engagement, steep healthcare costs, and dysfunctional teams that often work against one another. The current models of leadership require organizations to motivate their people largely with fear and extrinsic rewards. Though no one argues that these forms of motivation can produce short-term results, they are usually accompanied by distrust and cynicism in the workplace, which have long-term negative consequences.

Management gurus push employees in large companies to be bolder and more entrepreneurial. The reality is: employees tend to be risk-averse. From their perspective, this aversion makes perfect sense: why risk something that brings them, at best, a nice bonus, and at worst, a pink slip? The downside is larger than the upside. In almost all companies and situations, safeguarding your career trumps any potential reward. So, if you’ve been scratching your head about the lack of risk-taking among your employees, you now know why. (However, if employees do take big risks, it is often when they can hide behind group decisions.

these children of praise have now entered the workforce, and sure enough, many can’t function without getting a sticker for their every move. Instead of yearly bonuses, some companies are giving quarterly or even monthly bonuses. Instead of employee of the month, it’s the employee of the day. Companies are calling in consultants to teach them how best to lavish rewards on this overpraised generation. We now have a workforce full of people who need constant reassurance and can’t take criticism. Not a recipe for success in business, where taking on challenges, showing persistence, and admitting and correcting mistakes are essential.

Executives and managers need to consider how introverts—at least half of their employees—produce. Employees require energy to produce and, conveniently, introverts come with their own generators. Instead of trying to entertain us, mute the chatter and give us some space. Instead of rewarding the introvert with a party, give her a gift certificate to a restaurant, spa, bookstore, or coffeehouse. Instead of requiring attendance at a staff retreat, give introverted employees their assignments and send them to private cabins. Instead of insisting that introverts attend meetings, give us the option to submit written ideas. Employers are learning that, for many employees, less is more: less discussion, fewer meetings, and less so-called fun.

Our quest for heroism is awkward. Not the obvious heroism that earns medals and applause but the heroism of daily life. Go to Princeton and you’re an educational hero; run a marathon and you’re an athletic hero; make loads of money and you’re a financial hero--the alpha hero of our culture. Each occupation and role in life has its own exacting rituals for advancement and reward, from the employee of the month parking space to stock options. The point is not the Princeton degree or the marathon medallion or the money or the parking space, it’s what these things say about us, that we are special and unique; that momentarily at least, we have risen head and shoulders above the clamoring masses to be giddily succored by premonitions of divinity.

the hidden benefits of the introverted temperament—for workplaces, personal relationships and society as a whole. Introverts may be able to fit all their friends in a phone booth, but those relationships tend to be deep and rewarding. Introverts are more cautious and deliberate than extroverts, but that means they tend to think things through more thoroughly, which means they can often make smarter decisions. Introverts are better at listening—which, after all, is easier to do if you’re not talking—and that in turn can make them better business leaders, especially if their employees feel empowered to act on their own initiative. And simply by virtue of their ability to sit still and focus, introverts find it easier to spend long periods in solitary work, which turns out to be the best way to come up with a fresh idea or master a skill.

After many years and hundreds of interviews with workers in every conceivable profession, she has found that employees have one of three “work orientations,” or mindsets about our work. We view our work as a Job, a Career, or a Calling.14 People with a “job” see work as a chore and their paycheck as the reward. They work because they have to and constantly look forward to the time they can spend away from their job. By contrast, people who view their work as a career work not only out of necessity, but also to advance and succeed. They are invested in their work and want to do well. Finally, people with a calling view work as an end in itself; their work is fulfilling not because of external rewards but because they feel it contributes to the greater good, draws on their personal strengths, and gives them meaning and purpose. Unsurprisingly, people with a calling orientation not only find their work more rewarding, but work harder and longer because of it. And as a result, these are the people who are generally more likely to get ahead. For

God. JAMES 2 : 23 Many organizations today fail to tap into their potential. Why? Because the only reward they give their employees is a paycheck. The relationship between employer and employee never develops beyond that point. Successful organizations take a different approach. In exchange for the work a person gives, he receives not only his paycheck, but he is also nurtured by the people he works for. And nurturing has the ability to transform people’s lives. I use the BEST” acronym as a reminder of what people need when they get started with my organization. They need me to . . . Believe in them Encourage them Share with them Trust them Nurturing benefits everyone. What people wouldn’t be more secure and motivated when their leader believes in them, encourages them, shares with them, and trusts them (BEST)? People are more productive when they are nurtured. Even more important, nurturing creates a strong emotional and professional foundation within workers who have leadership potential. Later, using training and development, a leader can be built on that foundation.

The Seventh Central Pay Commission was appointed in February 2014 by the Government of India (Ministry of Finance) under the Chairmanship of Justice Ashok Kumar Mathur. The Commission has been given 18 months to make its recommendations. The terms of reference of the Commission are as follows:  1. To examine, review, evolve and recommend changes that are desirable and feasible regarding the principles that should govern the emoluments structure including pay, allowances and other facilities/benefits, in cash or kind, having regard to rationalisation and simplification therein as well as the specialised needs of various departments, agencies and services, in respect of the following categories of employees:-  (i) Central Government employees—industrial and non-industrial; (ii) Personnel belonging to the All India Services; (iii) Personnel of the Union Territories; (iv) Officers and employees of the Indian Audit and Accounts Department; (v) Members of the regulatory bodies (excluding the RBI) set up under the Acts of Parliament; and (vi) Officers and employees of the Supreme Court.   2. To examine, review, evolve and recommend changes that are desirable and feasible regarding the principles that should govern the emoluments structure, concessions and facilities/benefits, in cash or kind, as well as the retirement benefits of the personnel belonging to the Defence Forces, having regard to the historical and traditional parties, with due emphasis on the aspects unique to these personnel.   3. To work out the framework for an emoluments structure linked with the need to attract the most suitable talent to government service, promote efficiency, accountability and responsibility in the work culture, and foster excellence in the public governance system to respond to the complex challenges of modern administration and the rapid political, social, economic and technological changes, with due regard to expectations of stakeholders, and to recommend appropriate training and capacity building through a competency based framework.   4. To examine the existing schemes of payment of bonus, keeping in view, inter-alia, its bearing upon performance and productivity and make recommendations on the general principles, financial parameters and conditions for an appropriate incentive scheme to reward excellence in productivity, performance and integrity.   5. To review the variety of existing allowances presently available to employees in addition to pay and suggest their rationalisation and simplification with a view to ensuring that the pay structure is so designed as to take these into account.   6. To examine the principles which should govern the structure of pension and other retirement benefits, including revision of pension in the case of employees who have retired prior to the date of effect of these recommendations, keeping in view that retirement benefits of all Central Government employees appointed on and after 01.01.2004 are covered by the New Pension Scheme (NPS).   7. To make recommendations on the above, keeping in view:  (i) the economic conditions in the country and the need for fiscal prudence; (ii) the need to ensure that adequate resources are available for developmental expenditures and welfare measures; (iii) the likely impact of the recommendations on the finances of the state governments, which usually adopt the recommendations with some modifications; (iv) the prevailing emolument structure and retirement benefits available to employees of Central Public Sector Undertakings; and (v) the best global practices and their adaptability and relevance in Indian conditions.   8. To recommend the date of effect of its recommendations on all the above.

HR can and should serve as advisors to organizational leadership to develop strategic workforce plans that link to the organization’s strategic plan to ensure that the right people are on board so that the firm can meet its objectives and fulfill its mission. HR partners with line management to provide development opportunities to maximize the potential of each and every employee. HR advises management on total rewards programs (compensation and benefits) and rewards and recognition programs designed to minimize costly employee turnover and to maximize employee engagement and retention.

Do you have a recognition and rewards system in place that allows you to immediately applaud top performers? How can you create scoring systems that immediately reward employees for the behaviors you want? Have you seen evidence of “gamification” in your workplace? Perhaps it’s worth reading one of Gabe Zichermann’s blog posts and discussing it with your management team.

According to famed psychologist David McClelland, there are three basic types of motivation: 1) Achievement, 2) Authority and 3) Affiliation. Achievement Seekers Those who seek Achievement are looking for the following things: They attain realistic but challenging goals. Achieving the task is its own reward. Financial reward is a measurement of success. Security/status are not the primary motivators. Feedback is a quantifiable measure of success. They seek improvement. Authority Seekers Employees who seek Authority are looking for the following things: They value their ideas being heard and prevailing. Having influence and impact is the most important reward. They show leadership skills and enjoy directing others. Increasing personal status and prestige is important. Affiliation Seekers Employees who are motivated by Affiliation are looking for the following things: They need friendly relationships and are motivated by interaction with others. Being liked and held in high regard is important. They are team players. Emotions are a larger motivating factor than quantifiable data. They are in tune with others’ feelings and seek to make others happy.

Generation Y is said to have a sense of entitlement. Many employers complain of the demands their entry-level employees often make. But I, as one observer, do not believe it is a sense of entitlement. This generation wants to work hard and is willing to work hard. What we perceive as entitlement is, in fact, impatience. An impatience driven by two things: First is a gross misunderstanding that things like success, money or happiness, come instantly. Even though our messages and books arrive the same day we want them, our careers and fulfillment do not. The second element is more unsettling. It is a result of a horrible short circuit to their internal reward systems. These Gen Yers have grown up in a world in which huge scale is normal, money is valued over service and technology is used to manage relationships. The economic systems in which they have grown up, ones that prioritize numbers over people, are blindly accepted, as if that’s the way it has always been.

Our research and extensive interviews with executives and senior practitioners in the digital transformation process revealed that digital leaders think differently about high performance. In successful digital organizations, pushing the performance envelope, rewarding high performance, and learning how to invest in “optimal” mindsets are all critical parts needed to drive and sustain digital changes. “Overall, starting with a feeling of optimism promotes hope and overrides any other sentiments in your work. What would happen if all your employees felt different about coming to work? There would be a different buzz about the building. There would be a different outlook that would help people look forward to what’s next and what’s coming up. This optimism and hope creates an environment that inspires people to seek out their best and find levels of performance that maybe before they never thought were attainable. Starting with this whole new and different chemistry, any workplace is far better suited to achieve its goals and be its best, even in times of difficulty or adversity.” —Pete Carroll, head coach, the Super Bowl Champion Seattle Seahawks

I am fond of pointing out to entrepreneurs and executives that “in theory, you don’t need practice.” What I mean is that no matter how brilliant your business model and growth strategy, you won’t be able to build a real-world (i.e., non-theoretical) blockbuster company without a lot of practice. But that problem is magnified when you’re trying to blitzscale. The kind of growth involved in blitzscaling typically means major human resources challenges. Tripling the number of employees each year isn’t uncommon for a blitzscaling company. This requires a radically different approach to management than that of a typical growth company, which would be happy to grow 15 percent per year and can take time finding a few perfect hires and obsessing about corporate culture. As we will discuss in more detail later in the book, companies that blitzscale have to rapidly navigate a set of key transitions as their organizations grow, and have to embrace counterintuitive rules like hiring “good enough” people, launching flawed and imperfect products, letting fires burn, and ignoring angry customers. Over the course of this book, we’ll see how business model, growth strategy, and management innovation work together to form the high-risk, high-reward process of blitzscaling.

Each of these decisions is instead made either by a group of peers, a committee, or a dedicated, independent team. Many newly hired managers hate this! Even once they get their heads around the way hiring works, promotion time comes around and they are dumbfounded that they can’t unilaterally promote those whom they believe to be their best people. The problem is that you and I might define our “best people” differently. Or it might be possible that your worst person is better than my best person, in which case you should promote everyone and I should promote no one. If you’re solving for what is most fair across the entire organization, which in turn helps employees have greater trust in the company and makes rewards more meaningful, managers must give up this power and allow outcomes to be calibrated across groups.

My work was interesting and rewarding, but still I had to be careful not to let it consume me. I felt I owed that to my girls. Our decision to let Barack’s career proceed as it had—to give him the freedom to shape and pursue his dreams—led me to tamp down my own efforts at work. Almost deliberately, I’d numbed myself somewhat to my ambition, stepping back in moments when I’d normally step forward. I’m not sure anyone around me would have said I wasn’t doing enough, but I was always aware of everything I could have followed through on and didn’t. There were certain small-scale projects I chose not to take on. There were young employees whom I could have mentored better than I did. You hear all the time about the trade-offs of being a working mother. These were mine. If I’d once been someone who threw herself completely into every task, I was now more cautious, protective of my time, knowing I had to maintain enough energy for life at home.

Specifically, they argue that digital technology drives inequality in three different ways. First, by replacing old jobs with ones requiring more skills, technology has rewarded the educated: since the mid-1970s, salaries rose about 25% for those with graduate degrees while the average high school dropout took a 30% pay cut.45 Second, they claim that since the year 2000, an ever-larger share of corporate income has gone to those who own the companies as opposed to those who work there—and that as long as automation continues, we should expect those who own the machines to take a growing fraction of the pie. This edge of capital over labor may be particularly important for the growing digital economy, which tech visionary Nicholas Negroponte defines as moving bits, not atoms. Now that everything from books to movies and tax preparation tools has gone digital, additional copies can be sold worldwide at essentially zero cost, without hiring additional employees. This allows most of the revenue to go to investors rather than workers, and helps explain why, even though the combined revenues of Detroit’s “Big 3” (GM, Ford and Chrysler) in 1990 were almost identical to those of Silicon Valley’s “Big 3” (Google, Apple, Facebook) in 2014, the latter had nine times fewer employees and were worth thirty times more on the stock market.47 Figure 3.5: How the economy has grown average income over the past century, and what fraction of this income has gone to different groups. Before the 1970s, rich and poor are seen to all be getting better off in lockstep, after which most of the gains have gone to the top 1% while the bottom 90% have on average gained close to nothing.46 The amounts have been inflation-corrected to year-2017 dollars. Third, Erik and collaborators argue that the digital economy often benefits superstars over everyone else.

Many executives, for their part, want the economic advantages of customer loyalty but ignore the inspirational side of NPS. They forget that it’s impossible to create loyal customers without first inspiring a team of employees so they become promoters themselves. Who would go out of their way for a customer unless he or she is proud and inspired to be part of the team? And while there are many ingredients of employee engagement—the right training and development, rewards, opportunity for growth, the feeling of being valued, and so forth—the real foundation is this: employees must be able to treat customers and colleagues in a manner that makes them proud. When leaders and their teams consistently treat people right, when they can be relied upon to do the right thing, then an organization can truly be worthy of loyalty.

Welch and Conaty had implemented a 20-70-10 performance ranking system, where GE employees were sorted into three groups: the top 20 percent, the middle 70 percent, and the bottom 10 percent. The top workers were lionized and rewarded with choice assignments, leadership training programs, and stock options. The bottom 10 percent were fired. Under Immelt, the forced distribution was softened and the crisp labels of “top 20 percent,” “middle 70 percent,” and “bottom 10 percent” were replaced with euphemisms: “top talent,” “highly valued,” and “needs improvement.

Find ways to say yes. Employees will reward you by making your workplace more vibrant, fun, and productive. One

About 41 percent of mothers are primary breadwinners and earn the majority of their family’s income. Another 23 percent of mothers are co-breadwinners, contributing at least a quarter of the family’s earnings.30 The number of women supporting families on their own is increasing quickly; between 1973 and 2006, the proportion of families headed by a single mother grew from one in ten to one in five.31 These numbers are dramatically higher in Hispanic and African-American families. Twenty-seven percent of Latino children and 51 percent of African-American children are being raised by a single mother.32 Our country lags considerably behind others in efforts to help parents take care of their children and stay in the workforce. Of all the industrialized nations in the world, the United States is the only one without a paid maternity leave policy.33 As Ellen Bravo, director of the Family Values @ Work consortium, observed, most “women are not thinking about ‘having it all,’ they’re worried about losing it all—their jobs, their children’s health, their families’ financial stability—because of the regular conflicts that arise between being a good employee and a responsible parent.”34 For many men, the fundamental assumption is that they can have both a successful professional life and a fulfilling personal life. For many women, the assumption is that trying to do both is difficult at best and impossible at worst. Women are surrounded by headlines and stories warning them that they cannot be committed to both their families and careers. They are told over and over again that they have to choose, because if they try to do too much, they’ll be harried and unhappy. Framing the issue as “work-life balance”—as if the two were diametrically opposed—practically ensures work will lose out. Who would ever choose work over life? The good news is that not only can women have both families and careers, they can thrive while doing so. In 2009, Sharon Meers and Joanna Strober published Getting to 50/50, a comprehensive review of governmental, social science, and original research that led them to conclude that children, parents, and marriages can all flourish when both parents have full careers. The data plainly reveal that sharing financial and child-care responsibilities leads to less guilty moms, more involved dads, and thriving children.35 Professor Rosalind Chait Barnett of Brandeis University did a comprehensive review of studies on work-life balance and found that women who participate in multiple roles actually have lower levels of anxiety and higher levels of mental well-being.36 Employed women reap rewards including greater financial security, more stable marriages, better health, and, in general, increased life satisfaction.37 It may not be as dramatic or funny to make a movie about a woman who loves both her job and her family, but that would be a better reflection of reality. We need more portrayals of women as competent professionals and happy mothers—or even happy professionals and competent mothers. The current negative images may make us laugh, but they also make women unnecessarily fearful by presenting life’s challenges as insurmountable. Our culture remains baffled: I don’t know how she does it. Fear is at the root of so many of the barriers that women face. Fear of not being liked. Fear of making the wrong choice. Fear of drawing negative attention. Fear of overreaching. Fear of being judged. Fear of failure. And the holy trinity of fear: the fear of being a bad mother/wife/daughter.

This line of inquiry has other benefits. Employees should be able to look at themselves in the mirror and feel strongly that they matter to the organization, that they contribute in significant ways, that their absence would significantly hurt its results. If they can say those things honestly, they will feel far more secure and confident in their own value. It will also advance their careers at any company that recognizes and rewards

But we cannot expect people to take risks, by speaking up or in other ways, if by so doing they will get fired. Good leaders must cre- ate environments in which employees feel that making evidence- based decisions will always be rewarded, no matter what outcome occurs. The ideal organizational environment encourages everyone to observe, collect data, and speak up. The bosses who create such environments are risking only one thing: a few bruises to their egos. That is a small price to pay for increasing the flow of new ideas and decreasing the risks of disasters.

Emerging operating models also mean that talent and culture have to be rethought in light of new skill requirements and the need to attract and retain the right sort of human capital. As data become central to both decision-making and operating models across industries, workforces require new skills, while processes need to be upgraded (for example, to take advantage of the availability of real-time information) and cultures need to evolve. As I mentioned, companies need to adapt to the concept of “talentism”. This is one of the most important, emerging drivers of competitiveness. In a world where talent is the dominant form of strategic advantage, the nature of organizational structures will have to be rethought. Flexible hierarchies, new ways of measuring and rewarding performance, new strategies for attracting and retaining skilled talent will all become key for organizational success. A capacity for agility will be as much about employee motivation and communication as it will be about setting business priorities and managing physical assets. My

In 2017, two former Planned Parenthood employees appeared in a Live Action video, revealing that the organziation imposes abortion quotas on its clinics and incentivizes workers to convince women to choose abortion.70 Sue Thayer, former manager of the Planned Parenthood clinic in Storm Lake, Iowa, told Live Action that executives would reward clinics with pizza parties or extra paid time off if they met their abortion targets. Clinics that didn’t offer abortions were given quotas for abortion referrals made to other Planned Parenthood facilities. “I trained my staff the way that I was trained, which was to really encourage women to choose abortion and to have it at Planned Parenthood because it counts towards our goal,” Thayer said.71 Former Planned Parenthood nurse Marianne Anderson told Live Action, “I felt like I was more of a salesman sometimes, to sell abortions. We were constantly told we have quotas to meet to stay open.”72

Skilling developed a performance review system for Enron that consisted of grading employees annually and summarily firing the bottom 15 percent. In other words, no matter what your absolute level of performance, if you were weak, relative to others, you got fired. Inside Enron, this practice was known as “rank-and-yank.” Skilling considered it one of the most important strategies his company had. But ultimately, it may have contributed to a work environment that rewarded deception and discouraged integrity.

TABLE 1-2 Assessment of problem preferences Assess your intrinsic interest in solving problems in each of these domains on a scale of 1 to 10, where 1 means very little interest and 10 means a great deal of interest. Design of appraisal and reward systems __________ Employee morale __________ Equity/fairness

The irony is, in the midst of the pressure this creates for both companies and employees, employees also want a culture of accountability. Cultures with a poor accountability structure create a toxic work environment that under-values star performers, incorrectly rewards poor performers, and leaves leaders feeling confused and overwhelmed. In the end, the best employees leave for a culture with greater accountability so that they are no longer adopting the slack of employees who are not being held sufficiently accountable.

Part of maintaining that consistent drumbeat is for leadership to behave in a consistent way that reinforces the culture and values of the company. For example, often organizations reward people who achieve results without regard for how they achieved them, rather than asking: Did they do it in a way that’s consistent with our culture and values? This tendency to celebrate and reward the “what” instead of the “how” is one of the ways companies lose their character as they grow. You need a clear vision not only of what you want to achieve but also how you want to achieve it, and you should share that vision, loudly and often—especially if your company has achieved scale and you’re cascading those messages to five thousand, ten thousand, or fifteen-thousand-plus employees. With more people, there is more distance from the leadership—which means you need to pound the drum harder and more often just to be heard.

INCENTIVES – “From all business, my favorite case on incentives is Federal Express. The heart and soul of their system—which creates the integrity of the product—is having all their airplanes come to one place in the middle of the night and shift all the packages from plane to plane. If there are delays, the whole operation can’t deliver a product full of integrity to Federal Express customers. And it was always screwed up. They could never get it done on time. They tried everything—moral suasion, threats, you name it. And nothing worked. Finally, somebody got the idea to pay all these people not so much an hour, but so much a shift—and when it’s all done, they can go home. Well, their problems cleared up overnight.” – Here Charlie is talking about incentives. All of us who have held hourly jobs know that if workers are paid by the hour they will work more slowly than if they are paid them by the job. Why? Because if they are paid by the hour, they have an incentive to work more slowly in order to put more hours on the clock and make more money. But if they are paid by the job, there is an incentive to work quickly so they can get onto the next job and make more money. Federal Express aligned management’s goals with employee incentives. With hourly pay their employees were never in a hurry, but when pay was given for a specific task—getting a plane loaded—suddenly they were in a rush to get the job done. The key wasn’t paying workers by the task or shift; the key was letting them go home if they finished early, which was a kind of financial reward in that they were getting paid for the full shift even if they left early.

Degradation of work. Compelling the people in an organization to focus their efforts on the narrow range of what gets measured leads to a degradation of the experience of work. Edmund Phelps, a Nobel Prize winning economist, claims in his book Mass Flourishing: How Grassroots Innovation Created Jobs, Challenge, and Change that one of the virtues of capitalism is its ability to provide “the experience of mental stimulation, the challenge of new problems to solve, the chance to try the new, and the excitement of venturing into the unknown.”9 That is indeed a possibility under capitalism. But those subject to performance metrics are forced to focus their efforts on limited goals, imposed by others, who may not understand the work that they do. For the workers under scrutiny, mental stimulation is dulled, they decide neither the problems to be solved nor how to solve them, and there is no excitement of venturing into the unknown because the unknown is beyond the measureable. In short, the entrepreneurial element of human nature—which extends beyond the owners of enterprises—may be stifled by metric fixation.10 One result is to motivate those with greater initiative and enterprise to move out of mainstream, large-scale organizations where the culture of accountable performance prevails. Teachers move out of public schools to private schools and charter schools. Engineers move out of large corporations to boutique firms. Enterprising government employees become consultants. There is a healthy element in this. But surely the large-scale organizations of our society are the poorer for driving out those most likely to innovate and initiate. The more that work becomes a matter of filling in the boxes by which performance is to be measured and rewarded, the more it will repel those who think outside the box.

Thus, there is a gap between the measureable contribution and the actual, total contribution of the agent. As a result, measured performance (such as an increase in the division’s profits or a rise in the company’s stock price) may actually lead to the organization getting less of what it really needs from its employees. Moreover, there was an inevitable distortion of incentives created by the quest for simple, quantifiable standards by which to measure and reward performance

I learned from that exchange with Leslie that the entire bonus system is based on the premise that you can reliably predict the future, and that you can set an objective at any given moment that will continue to be important down the road. But at Netflix, where we have to be able to adapt direction quickly in response to rapid changes, the last thing we want is our employees rewarded in December for attaining some goal fixed the previous January. The risk is that employees will focus on a target instead of spot what’s best for the company in the present moment.

highly engaged employees will remain motivated despite adverse circumstances, such as limited resources, equipment failures, time pressures, and so on. In contrast, employees with low levels of engagement will tend to appear motivated only under favorable conditions or when attempting to reach tangible, short-term goals that will yield personal reward.

Management by objective (MBO) which means purposeful leadership to achieve a strategic objective is one of the keys to successful airline management. MBO is also referred to as Management by Results – MBR. This is a system where subordinates coordinate with their superiors to achieve the desired objective. Under this principle, the goals of the organization are linked to employee goals. Management objectives are made to meet operational objectives. And both management and operational objectives are made to achieve organizational long-term objectives. Organisational objectives are linked to the vision and mission of the organisation. The team is made aware of the achievable goals of the organization and unified effort is exerted in that direction; on the other hand, the employee whose performance is noteworthy will be rewarded by the organization. This builds a transparent and clean work culture on one hand and the other unclogs communication blocks.

In fact, most years, actively managed funds do not do any better than “passive funds” that simply replicate the stock market index. In fact, the average US mutual funds underperform the US stock market 52 —they seem to have borrowed the language of individual talent but not the talent itself. A large part of the premiums paid to financial sector employees are almost surely pure rents ; that is, rewards not for talent or hard work but for nothing more than having lucked out in landing that particular job.

Today, America is more feudal than democratic. One man—Jeff Bezos—has enough capital to end homelessness in the U.S. ($20 billion), eradicate malaria worldwide ($90 billion), and pay 700,000 teachers’ salaries. Bezos makes the average Amazon employee’s annual salary every ten seconds. Yes, we are a country that rewards genius, but we used to be one that showed kindness and generosity to those in need.

right seat means that each of your employees is operating within his or her area of greatest skill and passion inside your organization and that the roles and responsibilities expected of each employee fit with his or her Unique Ability®.1 This is a concept created by Dan Sullivan and is a registered trademark of The Strategic Coach, Inc. In the book Unique Ability, authors Catherine Nomura, Julia Waller, and Shannon Waller explain that everyone has a Unique Ability®. The trick is to discover yours. When you’re operating from within your Unique Ability®, your superior skill is often noticed by others who value it. You experience never-ending improvement, feel energized rather than drained, and, most of all, you have a passion for what you’re doing that presses you to go further than others would in this area. When this combination of passion and talent finds the right audience, it naturally creates value for others, who, in return, offer you greater rewards and more opportunities for further improvement. It’s like your personal core focus. When a person is operating in his or her Unique Ability®, he or she is in the right seat.

Ultimately, the character of an organization, much like the character of individuals, is defined through times of adversity and how well its leadership focuses on the purpose behind the company. It is made up of not just the public moments but the millions of moments that no one sees. From senior leaders through middle managers to frontline employees, the character of the organization takes shape in small decisions. These decisions are all influenced by what the organization truly values, what it recognizes and rewards in its people. For us, like many, our character is developing every day.

1 = Very important. Do this at once. 2 = Worth doing but takes more time. Start planning it. 3 = Yes and no. Depends on how it’s done. 4 = Not very important. May even be a waste of effort. 5 = No! Don’t do this. Fill in those numbers before you read further, and take your time. This is not a simple situation, and solving it is a complicated undertaking. Possible Actions to Take ____ Explain the changes again in a carefully written memo. ____ Figure out exactly how individuals’ behavior and attitudes will have to change to make teams work. ____ Analyze who stands to lose something under the new system. ____ Redo the compensation system to reward compliance with the changes. ____ “Sell” the problem that is the reason for the change. ____ Bring in a motivational speaker to give employees a powerful talk about teamwork. ____ Design temporary systems to contain the confusion during the cutover from the old way to the new. ____ Use the interim between the old system and the new to improve the way in which services are delivered by the unit—and, where appropriate, create new services. ____ Change the spatial arrangements so that the cubicles are separated only by glass or low partitions. ____ Put team members in contact with disgruntled clients, either by phone or in person. Let them see the problem firsthand. ____ Appoint a “change manager” to be responsible for seeing that the changes go smoothly. ____ Give everyone a badge with a new “teamwork” logo on it. ____ Break the change into smaller stages. Combine the firsts and seconds, then add the thirds later. Change the managers into coordinators last. ____ Talk to individuals. Ask what kinds of problems they have with “teaming.” ____ Change the spatial arrangements from individual cubicles to group spaces. ____ Pull the best people in the unit together as a model team to show everyone else how to do it. ____ Give everyone a training seminar on how to work as a team. ____ Reorganize the general manager’s staff as a team and reconceive the GM’s job as that of a coordinator. ____ Send team representatives to visit other organizations where service teams operate successfully. ____ Turn the whole thing over to the individual contributors as a group and ask them to come up with a plan to change over to teams. ____ Scrap the plan and find one that is less disruptive. If that one doesn’t work, try another. Even if it takes a dozen plans, don’t give up. ____ Tell them to stop dragging their feet or they’ll face disciplinary action. ____ Give bonuses to the first team to process 100 client calls in the new way. ____ Give everyone a copy of the new organization chart. ____ Start holding regular team meetings. ____ Change the annual individual targets to team targets, and adjust bonuses to reward team performance. ____ Talk about transition and what it does to people. Give coordinators a seminar on how to manage people in transition. There are no correct answers in this list, but over time I’ve

A similar dynamic exists when managers sit down to give employees their annual review and salary increase. The employees focus on the extrinsic reward—a raise, a higher rating—and learning shuts down. I

Unfortunately, many companies provide employees only with the illusion of feeling free and alive, as opposed to feeling trapped, at work. Even periodic pay increases and other financial rewards may only have this kind of illusory effect, especially if employers, albeit unconsciously, use such instruments in a way that fosters worker attention solely on the paycheck rather than on the reason(s) for their work. In this regard, it is perhaps worthwhile to point out that Frankl viewed the will to money as a primitive form of the will to power.

Thus, multiple regression requires two important tasks: (1) specification of independent variables and (2) testing of the error term. An important difference between simple regression and multiple regression is the interpretation of the regression coefficients in multiple regression (b1, b2, b3, …) in the preceding multiple regression model. Although multiple regression produces the same basic statistics discussed in Chapter 14 (see Table 14.1), each of the regression coefficients is interpreted as its effect on the dependent variable, controlled for the effects of all of the other independent variables included in the regression. This phrase is used frequently when explaining multiple regression results. In our example, the regression coefficient b1 shows the effect of x1 on y, controlled for all other variables included in the model. Regression coefficient b2 shows the effect of x2 on y, also controlled for all other variables in the model, including x1. Multiple regression is indeed an important and relatively simple way of taking control variables into account (and much easier than the approach shown in Appendix 10.1). Key Point The regression coefficient is the effect on the dependent variable, controlled for all other independent variables in the model. Note also that the model given here is very different from estimating separate simple regression models for each of the independent variables. The regression coefficients in simple regression do not control for other independent variables, because they are not in the model. The word independent also means that each independent variable should be relatively unaffected by other independent variables in the model. To ensure that independent variables are indeed independent, it is useful to think of the distinctively different types (or categories) of factors that affect a dependent variable. This was the approach taken in the preceding example. There is also a statistical reason for ensuring that independent variables are as independent as possible. When two independent variables are highly correlated with each other (r2 > .60), it sometimes becomes statistically impossible to distinguish the effect of each independent variable on the dependent variable, controlled for the other. The variables are statistically too similar to discern disparate effects. This problem is called multicollinearity and is discussed later in this chapter. This problem is avoided by choosing independent variables that are not highly correlated with each other. A WORKING EXAMPLE Previously (see Chapter 14), the management analyst with the Department of Defense found a statistically significant relationship between teamwork and perceived facility productivity (p <.01). The analyst now wishes to examine whether the impact of teamwork on productivity is robust when controlled for other factors that also affect productivity. This interest is heightened by the low R-square (R2 = 0.074) in Table 14.1, suggesting a weak relationship between teamwork and perceived productivity. A multiple regression model is specified to include the effects of other factors that affect perceived productivity. Thinking about other categories of variables that could affect productivity, the analyst hypothesizes the following: (1) the extent to which employees have adequate technical knowledge to do their jobs, (2) perceptions of having adequate authority to do one’s job well (for example, decision-making flexibility), (3) perceptions that rewards and recognition are distributed fairly (always important for motivation), and (4) the number of sick days. Various items from the employee survey are used to measure these concepts (as discussed in the workbook documentation for the Productivity dataset). After including these factors as additional independent variables, the result shown in Table 15.1 is

When researchers at the University of North Texas and Yale tried to understand why families gradually increased their fast food consumption, they found a series of cues and rewards that most customers never knew were influencing their behaviors.1.24 They discovered the habit loop. Every McDonald’s, for instance, looks the same—the company deliberately tries to standardize stores’ architecture and what employees say to customers, so everything is a consistent cue to trigger eating routines. The foods at some chains are specifically engineered to deliver immediate rewards—the fries, for instance, are designed to begin disintegrating the moment they hit your tongue, in order to deliver a hit of salt and grease as fast as possible, causing your pleasure centers to light up and your brain to lock in the pattern. All the better for tightening the habit loop.1.25

Discussions of entrepreneurship tend to focus on the personalities and attitudes of top management people, and especially of the chief executive. 4 Of course, any top management can damage and stifle entrepreneurship within its company. It’s easy enough. All it takes is to say ‘No’ to every new idea and to keep on saying it for a few years – and then make sure that those who came up with the new ideas never get a reward or a promotion and become ex-employees fairly swiftly. It is far less certain, however, that top management personalities and attitudes can by themselves – without the proper policies and practices – create an entrepreneurial business, which is what most of the books on entrepreneurship assert, at least by implication. In the few short-lived cases I know of, the companies were built and still run by the founder. Even then, when it gets to be successful the company soon ceases to be entrepreneurial unless it adopts the policies and practices of entrepreneurial management. The reason why top management personalities and attitudes do not suffice in any but the very young or very small business is, of course, that even a medium-sized enterprise is a pretty large organization. It requires a good many people who know what they are supposed to do, want to do it, are motivated towards doing it, and are supplied with both the tools and continuous reaffirmation. Otherwise there is only lip service; entrepreneurship soon becomes confined to the CEO’s speeches.

most of the raves workers give their employers were based on three corporate traits. First, “a powerful visionary leader,” one who “demands but also inspires them to give their best.” Second, “they offer a physical environment that makes work enjoyable.” Third, “they frame their work as part of a deep rewarding purpose that employees find fulfilling.” It also stated that “high morale and outstanding performance emphatically go together.

Now that you understand the key players in ecosystems, here are the key principles of building an ecosystem. They are similar to the principles of creating a community discussed in chapter 8, “The Art of Evangelizing.” CREATE SOMETHING WORTHY OF AN ECOSYSTEM. Once again, the key to evangelism, sales, presentations, and now ecosystems is a great product. In fact, if you create a great product, you may not be able to stop an ecosystem from forming. By contrast, it’s hard to build an ecosystem around crap. DESIGNATE A CHAMPION. Many employees would like to help build an ecosystem, but who wakes up every day with this task at the top of her list of priorities? Another way to look at this is, “Who’s going to get fired if an ecosystem doesn’t happen?” Ecosystems need a champion—an identifiable hero—within the company to carry the flag for the community. DON’T COMPETE WITH THE ECOSYSTEM. If you want people or organizations to take part in your ecosystem, then you shouldn’t compete with them. For example, if you want people to create apps for your product, then don’t sell (or give away) apps that do the same thing. It was hard to convince companies to create a Macintosh word processor when Apple was giving away MacWrite. CREATE AN OPEN SYSTEM. An “open system” means that there are minimal requirements to participating and minimal controls on what you can do. A “closed system” means that you control who participates and what they can do. Either can work, but I recommend an open system because it appeals to my trusting, anarchic personality. This means that members of your ecosystem will be able to write apps, access data, and interact with your product. I’m using software terminology here, but the point is to enable people to customize and tweak your product. PUBLISH INFORMATION. The natural complement of an open system is publishing books and articles about the product. This spreads information to people on the periphery of a product. Publishing also communicates to the world that your startup is open and willing to help external parties. FOSTER DISCOURSE. The definition of “discourse” is “verbal exchange.” The key word is “exchange.” Any company that wants an ecosystem should foster the exchange of ideas and opinions. This means your website should provide a forum where people can engage with other members as well as your employees. This doesn’t mean that you let the ecosystem run your company, but you should hear what members have to say. WELCOME CRITICISM. Most organizations feel warm and fuzzy toward their ecosystem as long as the ecosystem says nice things, buys their products, and never complains. The minute that the ecosystem says anything negative, however, many organizations freak out and get defensive. This is dumb. A healthy ecosystem is a long-term relationship, so an organization shouldn’t file for divorce at the first sign of discord. Indeed, the more an organization welcomes—or even celebrates—criticism, the stronger its bonds to its ecosystem become. CREATE A NONMONETARY REWARD SYSTEM. You already know how I feel about paying people off to help you, but this doesn’t mean you shouldn’t reward people in other ways. Things as simple as public recognition, badges, points, and credits have more impact than a few bucks. Many people don’t participate in an ecosystem for the money, so don’t insult them by rewarding them with it.

The most unjustly rewarded executives in the world had wrecked Western economies and shown no willingness to change their ways. Yet it never occurred to the supposedly liberal-left governments of Barack Obama and Gordon Brown to provide incentives to allow employees to speak up and speak truthfully, or to impose penalties on those who stayed silent.

With such theories, economists developed a very elaborate toolkit for analyzing markets, measuring the "variance" and "betas" of different securities and classifying investment portfolios by their probability of risk. According to the theory, a fund manager can build an "efficient" portfolio to target a specific return, with a desired level of risk. It is the financial equivalent of alchemy. Want to earn more without risking too much more? Use the modern finance toolkit to alter the mix of volatile and stable stocks, or to change the ratio of stocks, bonds, and cash. Want to reward employees more without paying more? Use the toolkit to devise an employee stock-option program, with a tunable probability that the option grants will be "in the money." Indeed, the Internet bubble, fueled in part by lavish executive stock options, may not have happened without Bachelier and his heirs.

THE PRAISED GENERATION HITS THE WORKFORCE Are we going to have a problem finding leaders in the future? You can’t pick up a magazine or turn on the radio without hearing about the problem of praise in the workplace. We could have seen it coming. We’ve talked about all the well-meaning parents who’ve tried to boost their children’s self-esteem by telling them how smart and talented they are. And we’ve talked about all the negative effects of this kind of praise. Well, these children of praise have now entered the workforce, and sure enough, many can’t function without getting a sticker for their every move. Instead of yearly bonuses, some companies are giving quarterly or even monthly bonuses. Instead of employee of the month, it’s the employee of the day. Companies are calling in consultants to teach them how best to lavish rewards on this overpraised generation. We now have a workforce full of people who need constant reassurance and can’t take criticism. Not a recipe for success in business, where taking on challenges, showing persistence, and admitting and correcting mistakes are essential. Why are businesses perpetuating the problem? Why are they continuing the same misguided practices of the overpraising parents, and paying money to consultants to show them how to do it? Maybe we need to step back from this problem and take another perspective. If the wrong kinds of praise lead kids down the path of entitlement, dependence, and fragility, maybe the right kinds of praise can lead them down the path of hard work and greater hardiness. We have shown in our research that with the right kinds of feedback even adults can be motivated to choose challenging tasks and confront their mistakes. What would this feedback look or sound like in the workplace? Instead of just giving employees an award for the smartest idea or praise for a brilliant performance, they would get praise for taking initiative, for seeing a difficult task through, for struggling and learning something new, for being undaunted by a setback, or for being open to and acting on criticism. Maybe it could be praise for not needing constant praise! Through a skewed sense of how to love their children, many parents in the ’90s (and, unfortunately, many parents of the ’00s) abdicated their responsibility. Although corporations are not usually in the business of picking up where parents left off, they may need to this time. If businesses don’t play a role in developing a more mature and growth-minded workforce, where will the leaders of the future come from?

There is plenty of research and data clearly demonstrating that while employees may choose to join an organization because of the brand, benefits, and other perceived rewards, they invariably choose to leave an organization because of their relationship with their immediate supervisor. I would also suggest that people choose to leave when they experience a toxic work environment and when they do not have a strong relationship (an Ally) among their peers. Employees, especially talented high performers, always have a

Process Lessons • Tight controls strangle innovation. The planning, budgeting, and reviews applied to existing businesses will squeeze the life out of an innovation effort. • Companies should expect deviations from plan: If employees are rewarded simply for doing what they committed to do, rather than acting as circumstances would suggest, their employers will stifle and drive out innovation.

Performance reviews, and their associated metrics, are another danger zone for innovations. Established companies don’t just want plans; they want managers to stick to those plans. They often reward people for doing what they committed to do and discourage them from making changes as circumstances warrant. At a large defense contractor, for instance, people got low marks for not delivering exactly what they had promised, even if they delivered something better—which led people to underpromise, eventually reducing employees’ aspirations and driving out innovation.

qualities we actually select for and reward in most workplaces are precisely the ones that are unlikely to produce leaders who are good for employees or, for that matter, for long-term organizational performance.

One who is interested in developing and enhancing intrinsic motivation in children, employees, students, etc., should not concentrate on external-control systems such as monetary rewards,

Fairchild Parent rewarded Fairchild Child’s success the way all East Coast companies of the era did: it kept a sizable chunk of the profits to fund other company operations, and it promoted the people at the top of the division to a fancier position and a better salary for a job well done. Back in New Jersey, it didn’t cross anyone’s mind that this was exactly the wrong response to an egalitarian company that shared both risk and reward among all of its employees, whose executives had moved to California precisely to get away from the Old World of business, and which needed to plow most of its profits back into product development to stay ahead of the competition in a fast-moving take-no-prisoners industry.

Why do some of us work hard and some of us sit on our asses all day? Dan Pink, a New York Times and Wallstreet Journal bestselling author, argues that there are three main motivators―and they’re not what you think. Money doesn’t make the list. In fact, money can be a demotivator. It turns out that once you get beyond work that only requires rudimentary cognitive skill, higher monetary rewards are inversely related to performance. Instead, emotion becomes the driving force. More specifically, Pink defines the three main motivators as autonomy, mastery, and purpose.2 This has been backed up by numerous scientific studies. Here’s one: “Psychologists Teresa Amabile and Steven Kramer interviewed over 600 managers and found a shocking result. 95 percent of managers misunderstood what motivates employees. They thought what motivates employees was making money, getting raises and bonuses. In fact, after analyzing over 12,000 employee diary entries, they discovered that the number one work motivator was emotion, not financial incentive: It’s the feeling of making progress every day toward a meaningful goal.”3 Consider what this means. If you aren’t hardworking, maybe it’s not because you’re lazy, but because you hate what you’re working on! I believe there’s a hustler in all of us. It isn’t about your genetic makeup. It’s about your environment and the emotional state in which you’re operating. If you’re having trouble getting up in the morning and going to work, there’s a good chance you’d be happier hustling. You just need to find the right thing to be hustling toward, and the right people to support you. If you had all the free time in the world, what would you want to master? What would give you a sense of purpose? What would make your heart beat a little louder? The hustle is somewhere inside you. You just have to find it and set it free.

Consider fast food, for instance. It makes sense—when the kids are starving and you’re driving home after a long day—to stop, just this once, at McDonald’s or Burger King. The meals are inexpensive. It tastes so good. After all, one dose of processed meat, salty fries, and sugary soda poses a relatively small health risk, right? It’s not like you do it all the time. But habits emerge without our permission. Studies indicate that families usually don’t intend to eat fast food on a regular basis. What happens is that a once a month pattern slowly becomes once a week, and then twice a week—as the cues and rewards create a habit—until the kids are consuming an unhealthy amount of hamburgers and fries. When researchers at the University of North Texas and Yale tried to understand why families gradually increased their fast food consumption, they found a series of cues and rewards that most customers never knew were influencing their behaviors.1.24 They discovered the habit loop. Every McDonald’s, for instance, looks the same—the company deliberately tries to standardize stores’ architecture and what employees say to customers, so everything is a consistent cue to trigger eating routines. The foods at some chains are specifically engineered to deliver immediate rewards—the fries, for instance, are designed to begin disintegrating the moment they hit your tongue, in order to deliver a hit of salt and grease as fast as possible, causing your pleasure centers to light up and your brain to lock in the pattern. All the better for tightening the habit loop.1.25 However, even these habits are delicate. When a fast food restaurant closes down, the families that previously ate there will often start having dinner at home, rather than seek out an alternative location. Even small shifts can end the pattern. But since we often don’t recognize these habit loops as they grow, we are blind to our ability to control them. By learning to observe the cues and rewards, though, we can change the routines.

Nike, Microsoft Amazon and similar companies went public relatively early in their growth cycles. As a result, public investors had the opportunity to participate in 95 to 99% of their overall price appreciation. Founders, early employees and VCs took all the risk. Most of the reward was left for grabbing – anyone could’ve bought those stocks on the secondary markets.   As the Federal Reserve prints more money and interest rates remain low, an increasing percentage of capital is flowing into risky asset classes like venture capital and “angel investing.” This capital has chased up valuations in the pipeline preceding IPOs, making the IPOs feel more like the end of the journey, not the beginning. Thus,

These qualities make a great impression on your boss, your teams, and your customers. You will be more respected, noticed, and appreciated in the process. As your own "CEO of Self," projecting this positive level of engagement furthers your own personal reputation and interests for healthy communication, networking, and positive first impressions. An added bonus is that YOU will receive great benefits from putting forth this type of effort. Whether it be self-esteem, new training, cooperation, experience, or a raise or bonus, the rewards are extensive and many.

Understanding Personality Styles Helps You: • Communicate more easily with others by understanding their perspectives. • Adapt your behavior to resonate with others. • Develop deeper levels of compassion, patience, and communication. • Deliver personalized customer service. • Build trust and rapport faster. • Nurture existing relationships. • Make more sales. • Feel more confident networking. • Realize that people behave the way they do for their reasons, not yours. • Appreciate the diversity of teammates, family members, friends, and work groups. • Unify your teams and get the best out of your people by focusing on their strengths, aligning their styles with their assigned positions, and knowing how to motivate and reward them.

These "God Winks" may be an answer to prayer, a warning to change course, or a reward for doing things right. Become mindful and aware of how these cosmic puzzle pieces come together to enrich your life and your relationships. It is both affirming and entertaining to consider. Be open and grateful.

Misconduct, or non-conforming behaviour, as it is sometimes called, can be tackled in many ways such as counseling, warning, etc. In extreme cases such as, criminal breach of trust, theft, fraud, etc. the employer is also at liberty to initiate action against the employee, if the misconduct of the latter falls within the purview of the penal provisions of the law of the land. However such proceedings generally conducted by the State agencies, are time consuming and call for a high degree of proof. In addition to the above option, the employer also has an option to deal with the erring employee within the terms of employment. In such an eventuality, the employee may be awarded any penalty which may vary from the communication of displeasure, to the severance of the employer-employee relationship i.e. dismissal from service. Disciplinary authorities play a vital role in this context. Efficiency of the disciplinary authorities is an essential pre-requisite for the effective functioning of the reward and punishment function, more specifically the latter half of it.3. There was a time when the employer was virtually free to hire and fire the employees. Over a period of time, this common law notion has gone. Today an employer can inflict punishment on an employee only after following some statutory provisions depending upon the nature of the organisation.Briefly, the various statutory provisions which govern the actions of different types of organisation are as under: (a) Government: Part XIV of the Constitution relates to the terms of employment in respect of persons appointed in connection with the affairs of the State. Any action against the employees of the Union Government and the State Governments should conform to these Constitutional provisions, which confer certain protections on the 1

MANAGING STRICTLY BY NUMBERS IS LIKE PAINTING BY NUMBERS Some things that you want to encourage will be quantifiable, and some will not. If you report on the quantitative goals and ignore the qualitative ones, you won’t get the qualitative goals, which may be the most important ones. Management purely by numbers is sort of like painting by numbers—it’s strictly for amateurs. At HP, the company wanted high earnings now and in the future. By focusing entirely on the numbers, HP got them now by sacrificing the future. Note that there were many numbers as well as more qualitative goals that would have helped:   Was our competitive win rate increasing or declining?   Was customer satisfaction rising or falling?   What did our own engineers think of the products? By managing the organization as though it were a black box, some divisions at HP optimized the present at the expense of their downstream competitiveness. The company rewarded managers for achieving short-term objectives in a manner that was bad for the company. It would have been better to take into account the white box. The white box goes beyond the numbers and gets into how the organization produced the numbers. It penalizes managers who sacrifice the future for the short term and rewards those who invest in the future even if that investment cannot be easily measured. CLOSING THOUGHT It is easy to see that there are many ways for leaders to be misinterpreted. To get things right, you must recognize that anything you measure automatically creates a set of employee behaviors. Once you determine the result you want, you need to test the description of the result against the employee behaviors that the description will likely create. Otherwise, the side-effect behaviors may be worse than the situation you were trying to fix.

When a chief executive says, 'people are our most important asset' he (almost always 'he' since by 2008, only 12 of the Fortune 500 companies had CEOs who were women)is really speaking of a small percentage of the firm’s employees. Everyone else is merely labor cost.

In many ways, the U.S. bureaucracy has moved away from the Weberian ideal of an energetic and efficient organization staffed by people chosen for their ability and technical knowledge. The system as a whole is less merit-based: rather than coming from top schools, 45 percent of recent new hires to the federal service are veterans, as mandated by Congress. And a number of surveys of the federal work force paint a depressing picture. According to the scholar Paul Light, “Federal employees appear to be more motivated by compensation than mission, ensnared in careers that cannot compete with business and nonprofits, troubled by the lack of resources to do their jobs, dissatisfied with the rewards for a job well done and the lack of consequences for a job done poorly, and unwilling to trust their own organizations.

Some behavioral psychologists defend the practice of punishing employees on the grounds that it helps to “clarify management’s expectations of performance and promote goal setting.”81 (This is comparable to the claim that throwing employees out an office window helps to clarify what floor they work on.) One

If you investigate companies that have failed, you will find that many employees knew about the fatal issues long before those issues killed the company. If the employees knew about the deadly problems, why didn’t they say something? Too often the answer is that the company culture discouraged the spread of bad news, so the knowledge lay dormant until it was too late to act. A healthy company culture encourages people to share bad news. A company that discusses its problems freely and openly can quickly solve them. A company that covers up its problems frustrates everyone involved. The resulting action item for CEOs: Build a culture that rewards—not punishes—people for getting problems into the open where they can be solved.

In one set of experiments, for example, researchers affiliated with the National Institute on Alcohol Abuse and Alcoholism trained mice to press levers in response to certain cues until the behavior became a habit. The mice were always rewarded with food. Then, the scientists poisoned the food so that it made the animals violently ill, or electrified the floor, so that when the mice walked toward their reward they received a shock. The mice knew the food and cage were dangerous—when they were offered the poisoned pellets in a bowl or saw the electrified floor panels, they stayed away. When they saw their old cues, however, they unthinkingly pressed the lever and ate the food, or they walked across the floor, even as they vomited or jumped from the electricity. The habit was so ingrained the mice couldn’t stop themselves.1.23 It’s not hard to find an analog in the human world. Consider fast food, for instance. It makes sense—when the kids are starving and you’re driving home after a long day—to stop, just this once, at McDonald’s or Burger King. The meals are inexpensive. It tastes so good. After all, one dose of processed meat, salty fries, and sugary soda poses a relatively small health risk, right? It’s not like you do it all the time. But habits emerge without our permission. Studies indicate that families usually don’t intend to eat fast food on a regular basis. What happens is that a once a month pattern slowly becomes once a week, and then twice a week—as the cues and rewards create a habit—until the kids are consuming an unhealthy amount of hamburgers and fries. When researchers at the University of North Texas and Yale tried to understand why families gradually increased their fast food consumption, they found a series of cues and rewards that most customers never knew were influencing their behaviors.1.24 They discovered the habit loop. Every McDonald’s, for instance, looks the same—the company deliberately tries to standardize stores’ architecture and what employees say to customers, so everything is a consistent cue to trigger eating routines. The foods at some chains are specifically engineered to deliver immediate rewards—the fries, for instance, are designed to begin disintegrating the moment they hit your tongue, in order to deliver a hit of salt and grease as fast as possible, causing your pleasure centers to light up and your brain to lock in the pattern. All the better for tightening the habit loop.1.25 However, even these habits are delicate. When a fast food restaurant closes down, the families that previously ate there will often start having dinner at home, rather than seek out an alternative location. Even small shifts can end the pattern. But since we often don’t recognize these habit loops as they grow, we are blind to our ability to control them. By learning to observe the cues and rewards, though, we can change the routines.

Targets, as you will learn throughout this book, are blessed/cursed with a strong work ethic. They just want to be “left alone” to do their work. In the most bullying-prone industries, we’ve found that many employees share a prosocial orientation. They are the “do-gooders.” They want to heal the sick, teach and develop the young, care for the elderly, work with the addicted and abused in society. They are ripe for exploitation. While they focus on doing good and noble things and wait to be rewarded for their quality work, they expose their backs for the bully to sink her or his claws into.

I think when people say they dread going into work on Monday morning, it’s because they know they are leaving a piece of themselves at home. Why not to see what happens when you challenge your employees to bring all of their talents to their job and reward them?

We’ve found that trusting people to do the right thing generally results in them doing the right thing. Allowing people to reward one another facilitates a culture of recognition and service, and is a way to show employees that they should be thinking like owners rather than serfs.

We needed a greater sense of urgency.” So the management team decided that field managers would not be eligible for promotion unless their branch or group of branches matched or exceeded the company’s average scores. That’s a pretty radical idea when you think about it: giving customers, in effect, veto power over managerial pay raises and promotions. The rigorous implementation of this simple customer feedback system had a clear impact on business. As the survey scores rose, so did Enterprise’s growth relative to its competition. Taylor cites the linking of customer feedback to employee rewards as one of the most important reasons that Enterprise has continued to grow,

In studying the factors which go into the satisfaction of working groups, social scientists have isolated four major areas: The material rewards and opportunities. The challenge and the interest of the work itself. The general conditions in the larger organization, such as employee benefits, working conditions, and organization status among similar organizations. The competence of supervisors and leaders.