Behavior vs results LO7777

Roxanne S. Abbas (75263.3305@CompuServe.COM)
07 Jun 96 10:01:01 EDT

A client of mine has asked me to prepare a white paper on the subject of
whether the focus of employee performance appraisal should be on results
attained or demonstrated work behaviors that produce the results. The
employee design team that I'm working with feels that their current
system, a traditional MBO system which attempts to correlate individual
pay increases with the attainment of individual objectives, has
contributed to the extreme lack of cooperation and teamwork in the
organization.

I have found that the very process of setting objectives may be the best
way to improve performance. I have read that one of the most consistent
and strongest findings in social science is that goal setting is one of
the (if not the only) major determinants of subsequent performance.
(Locke, E.A. and Latham, G.P. , A theory of Goal Setting and Task
Performance, Prentice Hall, 1990). However, my experience with
organizations that have tied pay increases or bonuses to the
accomplishment of objectives, has taught me that the power of money can
cause otherwise intelligent people to behave in ways that are often
harmful to their organization and their fellow employees (Perhaps
themselves too in the long run. They get their bonus but lose their
reputation). Senge writes about organizational learning disabilities.
Perhaps incentive systems that focus employees on attaining end results
regardless of the damage done along the way are one of the most serious
obstacles to learning, or organizational learning disabilites, in common
practice.

I have often heard the concern that if the focus is shifted from results
to behaviors, we will end up with a lot of nice people who don't get
anything done. It seems to me that this can easily be alleviated through
thoughtful selection and definition of the behaviors which produce good
results and which are consistent with the organization's values (e.g.
customer service and decision-making).

Can any of you refer me to studies or journal articles on this subject? I
am also eager to hear (either on-line or off-line) your personal views and
experiences.

Roxanne Abbas
Abbas Compensation Strategies
75263.3305@compuserve.com

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"Roxanne S. Abbas" <75263.3305@CompuServe.COM>

Learning-org -- An Internet Dialog on Learning Organizations For info: <rkarash@karash.com> -or- <http://world.std.com/~lo/>