Though it may seem fairly obvious that receiving praise and recognition from one

Question

Though it may seem fairly obvious that receiving praise and recognition from one’s company is a motivating experience, sadly many companies are failing miserably when it comes to saying “thanks” to their employees. According to Curt Coffman, global practice leader at Gallup, 71 percent of U.S. workers are “disengaged,” essentially meaning that they could care less about their organization. Coffman states, “We’re operating at one-quarter of the capacity in terms of managing human capital. It’s alarming.” Employee recognition programs, which became more popular as the U.S. economy shifted from industrial to knowledge-based, can be an effective way to motivate employees and make them feel valued. In many cases, however, recognition programs are doing “more harm than good” according to Coffman. Take Ko, a 50-year-old former employee of a dot-com in California. Her company proudly instituted a rewards program designed to motivate employees. What were the rewards for a job well-done? Employees would receive a badge which read “U Done Good” and, each year, would receive a T-shirt as a means of annual recognition. Once an employee received 10 “U Done Good” badges, he or she could trade them in for something bigger and better—a paperweight. Ko states that she would have preferred a raise. “It was patronizing. There wasn’t any deep thought involved in any of this.” To make matters worse, she says, the badges were handed out arbitrarily and were not tied to performance. And what about those T-shirts? Ko states that the company instilled a strict dress code, so employees couldn’t even wear the shirts if they wanted to. Needless to say, the employee recognition program seemed like an empty gesture rather than a motivator. Even programs that provide employees with more expensive rewards can backfire, especially if the rewards are given insincerely. Eric Lange, an employee of a trucking company, recalls the time when one of the company’s vice presidents achieved a major financial goal for the company. The vice president, who worked in an office next to Lange, received a Cadillac Seville as his company car and a new Rolex wristwatch that cost the company $10,000. Both were lavish gifts, but the way they were distributed left a sour taste in the vice president’s mouth. He entered his office to find the Rolex in a cheap cardboard box sitting on his desk, along with a brief letter explaining that he would be receiving a 1099 tax form in order to pay taxes on the watch. Lange states of the vice president, “He came into my office, which was right next door, and said, ‘Can you believe this?”’ A mere 2 months later, the vice president pawned the watch. Lange explains, “It had absolutely no meaning for him.” Such experiences resonate with employees who may find more value in a sincere pat on the back than gifts from management that either are meaningless or aren’t conveyed with respect or sincerity. However, sincere pats on the back may be hard to come by. Gallup’s poll found that 61 percent of employees stated that they haven’t received a sincere “thank you” from management in the past year. Findings such as these are troubling, as verbal rewards are not only inexpensive for companies to hand out but also are quick and easy to distribute. Of course, verbal rewards do need to be paired sometimes with tangible benefits that employees value—after all, money talks. In addition, when praising employees for a job well-done, managers need to ensure that the praise is given in conjunction with the specific accomplishment. In this way, employees may not only feel valued by their organization but will also know what actions to take to be rewarded in the future.

Step #1 - What are the facts?

Step #2 - What problem exists, and why?

Step #3 - What additional information is needed to analyze this case adequately?

Step #4 - What are possible solutions to the problem?

Step #5 - What are the consequences of each alternative?

Step #6 - What decision should be made or what solution should be chosen and what is the rationale for it?

Step #7 - What general ideas can be drawn from this case that might have application elsewhere?

Explanation / Answer

#1 The facts: Around 71% of the US workers feel disengaged and are not attached to their organization. Human capital is not being managed properly.

#2 Problems and their reason for existence: The problem for employees feeling disengaged is that employees are not receiving enough praise and recognition from their employers. Reason for existence is that companies do not have proper employee recognition programs.

#3 Additional information required: There should be additional research and information on how employees feel when they receive a sincere appreciation from the company, paired with a tangible benefit as well. This additional information will help analyze the case from all aspects i.e. how employees react in different scenarios. What is their reaction when the appreciation is sincere and genuine? What is their reaction when there is high value tangible benefits but not sincere? Analysis of the different situations will help in understanding the case properly and will help us understand what are the key motivating factors for employees.

Additional information on work environment in terms of job enlargement and job enrichment opportunities being provided to the employees will also be helpful.

#4 In terms of possible solutions, organizations and employers should take genuine effort to recognize the efforts of the employees. Organizations can consider using skill based pay plans and link them to motivation theories. In a skill based pay plan, employees will be rewarded not on the basis of their title but on the basis of the level of skill and competencies that the employees have.

#5 In terms of consequences, using skill based pay will increase the level of engagement as it is perceived to be a fair pay system that will reward employees purely on the basis of their capabilities. The result will be higher employee performance as well as satisfaction.

#6 Organizations should introduce solutions that will have a direct and positive impact on employee's engagement levels. The employees should be made to feel important and their hard work should be appreciated and rewarded in a proper manner. The organizations should introduce a skill based pay system and the rationale behind this is that employee's motivation and satisfaction level will increase as they will feel that their hard work is being truly appreciated.

#7 The general idea is that people need proper and deserved recognition for their hard work. This idea ha an universal application and can be applied to personal lives of people as well. Suppose in a family, your wife has been working really hard to take care of the family and managing her professional assignments. As a caring spouse, your wife expects appreciation and sometimes a reward (though not always tangible) for her hard work.

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.