Tuesday, November 1, 2011

The carrot or the stick: how would you motivate employees?


Picture a company where every unit of output from the start to the end of your workday is measured, compared against your peers and publicized real-time via an electronic monitor for all to see. Furthermore, those who fall behind the pack are ostracized and run the risk of losing their jobs. For some, this kind of workplace setting is not too uncommon. For others, myself included, this kind of environment is hard to fathom and highly unsettling. (Note: I admit I may be in the minority here.)

I raise this issue as a result of reading LA Times reporter Steve Lopez’s article “Disneyland workers answer to 'electronic whip'". In it, Lopez recounts Disney’s very public productivity-spurring practice depicted above. While I’m not here to judge Disney for employing this management technique, it’s interesting to ponder what is the more effective way of motivating your employees - by the carrot or the stick.

While the answer will largely depend on your business and industry (TCR…typical consultant response), let’s say for argument sake that you are working for a global company that operates in the knowledge economy…where long-term success is contingent on your employees’ ability to harness their expertise and know-how. Conventional wisdom says managing via the stick might not be a very good idea as it could impede collaboration, strike fear in the heart of your organization and run counter-cultural and generational (for the younger generations in the workforce) for that matter. However, what if you were to assess and publicly track employees’ ability to share ideas and help colleagues solve problems…could that motivate employees and spur productivity? Taken in that vain, possibly. In fact, many companies practice some form of this albeit not as overtly. Disney may be onto something…

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