Monday, May 21, 2012

Week 1 Post by Leslie

In my job, communications consultants partner regularly with specialists in the areas of talent management and compensation to design and communicate employee incentive plans. Thanks in part to the challenging economic climate of the last few years, we’ve seen more and more companies adopting pay-for-performance incentive plans for employees at all levels. Not only do we share Frederik Taylor’s view that responsibility lies with management to design effective incentive plans (Wren, 2009), we also believe that good communication is essential to the success of incentive plan implementation. However, our practices do diverge from scientific management in our treatment of the human element. Despite Taylor’s protests that properly practiced scientific management maintains “the proper personal relations … between the employers and men, (as cited in Wren, 2009, p. 152), most of my colleagues would argue that strict adoption of scientific management has a detrimental effect on employee attraction and retention. Fayol’s acknowledgement of the role of job enlargement in increasing employee engagement (Wren, 2009) is a step in the right direction, but as a whole, Taylor, Fayol, and Weber – while offering many excellent management principles -- undervalue the individual employee.

Did anyone else find Taylor’s description of the motivations for “soldiering” particularly interesting? He observed that employees would “soldier,” or underwork, for a number of reasons, most of which boiled down to fears that high performance would not be rewarded in the long term (Wren, 2009). No doubt Taylor had great insight into the incentive needs of Midvale’s engineers, yet I cannot help but wonder if better communication (including clear “if, then” scenarios and direct address of worker assumptions) could have solved performance problems just as readily as a revised incentive plan.

This week’s reading reminded me of a BBC News article I heard referenced on NPR. Links to two full articles are provided below, but to sum it up, the Department of Education in England and Wales recently announced its recommendation to implement a pay-for-performance compensation approach for teachers (“British Teachers,” 2012; Coughlan, 2012). While the department’s recommendations are complex and include several pay-for-performance models as well as the idea of “different pay in different areas,” a surface evaluation of the suggestions certainly brings scientific management theory to mind (“British Teachers,” 2012; Coughlan, 2012). The committee urges an approach in which “the best teachers are rewarded while the weak are discouraged from staying in the profession” (“British Teachers,” 2012). If that doesn’t divide teachers into “first-class” and “second-class” workers, I don’t know what would!

Perhaps teachers’ unions would have better received better-focused recommendations offering greater anticipation and consideration of teacher concerns. What do you think?

http://www.bbc.co.uk/news/education-18089505
http://en-maktoob.news.yahoo.com/british-teachers-paid-performance-141620652.html

References

British teachers to be paid for performance? (2012, May 1). Indo Asian News Service. Retrieved from http://en-maktoob.news.yahoo.com/british-teachers-paid-performance-141620652.html

Coughlan, S. (2012, May 16). Michael Gove pushes for performance pay for teachers. BBC News. Retrieved from http://www.bbc.co.uk/news/education-18089505

Wren, D. A., & Bedeian, A. G. (2009). The evolution of management thought (6th ed.). New York, NY: John Wiley & Sons.

5 comments:

  1. Leslie, in NYC there have also been some recent controversies with teacher incentive structures. How could these types of incentives backfire? We know from the readings that unions were resistant to Taylor's work. Do you think in this case Taylor's and the union's ideas could be reconciled?

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    1. Dr. Pade:

      As I'm sure you intended, these are complex questions. While I am not a pay-for-performance specialist, I'll give it my best shot.

      Any time you put a person's income on the line, there is a potential for unintended consequences. You hope to motivate improved performance, but you might get an inflated quantity of subpar work, institutionalized cheating, or even mass defection of employees instead. I haven't yet had the opportunity to educate myself on what's happening in New York, but my own city is still reeling from a cheating scandal within the Atlanta Public Schools system last year. The scandal, in which nearly 200 teachers and principals were accused of -- and many confessed to -- fabricating student test scores, was largely blamed on the pressures felt by educators to meet demanding performance standards.

      If you're interested in a very tidy summary of the events here in Atlanta, you should scan the headlines of this page, which aggregates the stories run by the Atlanta Journal-Constitution as the scandal unfolded: http://is.gd/vK1a43

      I think the best way to reconcile Taylor's ideas with those of unions who would oppose pay-per-performance is to eliminate the punitive aspects -- real and perceived -- of such plans. An employee is much more likely to tolerate news that above-average performance will receive above-average reward. If your new "incentive" plan will punish those who do NOT perform above average with reduced pay, probation, or termination, panic will follow.

      The obvious problem with this approach is that many employers are looking for ways to unload low performers -- and these employees didn't fall off the turnip truck yesterday. The solution probably isn't an incentive plan implemented in isolation; consideration should be given to whether the right talent is being hired at the get-go and whether adequate opportunities for training and improvement are provided on the job.

      Taylor might say that the best way to answer the concerns of the union is by providing scientific evidence that employees should be capable of the performance standards set forth. If compelling evidence cannot be provided that performance standards are fair, reasonable, and achievable, then employers cannot in good conscience enforce them.

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  2. Hey Leslie,

    I'm really stuck on Taylor. I'm not sure if it's because I do or don't like him. But you mentioned the soldiering after writing a paragraph where you mention the challenging economic climate: Soldering could be the best way to maybe not give yourself a raise, but not be dumped on because you can handle more and more and then not be compensated. I know that's what they did to journalists and journalists started looking for other means of work.

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    1. Justin:

      They say nothing is to be gained but "heavier burdens for willing shoulders," and it's true that I have often found myself in the position of taking on more than my fair share without proportional compensation. While I don't think I have soldiering in my genetic make-up, I agree that from the employee perspective, soldiering remains a viable workload management tactic. But I do empathize with the employer-side need to minimize soldiering and maximize productivity, and I really believe transparency in incentive design, intent and communication is key. I could talk about this at length, and I'm sure I'll do just that as the semester unfolds.

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  3. Leslie, in addition to better communication, I believe if some of Fayol's principles were in place including Discipline, Subordination of individual interests to the general interest, Equity and Renumeration, "soldiering" would not have been an issue.

    Also, if the department used Fayol's "esprit de corps" principle as a guide perhaps the weak teachers could learn from and be mentored by the best teachers and avoid division.

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