| With a national unemployment rate hovering around | | | | example the way that they interact with their |
| 10% and an even more telling underemployment rate | | | | teammates or communicate to their clients). Each |
| rising significantly higher with each passing month, it is a | | | | employee's productivity is rolled up into an executive |
| very unenviable time to be looking for work. Now | | | | summary at the end of the year that classifies their |
| more than ever, American companies need to | | | | performance as exceeding, meeting, or not meeting |
| recognize the perilous financial waters that our | | | | expectations. |
| country's economic ship is chartering through and do | | | | Rewarding and punishing performance is the second |
| everything possible to create a business environment | | | | major pillar of the company's organizational structure. |
| that challenges their associates to strive to reach their | | | | Those associates that meet or exceed their |
| full potential and then rewards them once they have | | | | performance targets are incented with monetary and |
| exceeded expectations. | | | | nonmonetary rewards. These awards range from |
| I am very fortunate to work for such a great | | | | salary increases, cash bonuses, and retirement |
| company. My employer's foundation is built on a | | | | benefits to prestigious job titles, office locations, and |
| bedrock of morally imperative core values and strong | | | | executive entitlements. The bottom line is that these |
| business principles. Our management team is | | | | benefits are proven to motivate peak performance |
| comprised of leaders who are very business savvy | | | | and inspire associates to succeed in a mutually |
| and accomplished. They set the tone and reward | | | | inclusive work environment that rewards teamwork. |
| those employees that have positive attitudes, exhibit | | | | Punishment is of equal importance to reward. It would |
| initiative, and never let adversity prevent them from | | | | be impractical to think that every associates acts with |
| reaching their respective goals. Of course, employing | | | | integrity and performs at an exceptional level all of the |
| associates with these attributes is idealistic unless the | | | | time. Managers must be consistent with one another |
| right business environment conducive for success is | | | | and use their discretion and judgment to fairly assess |
| created. | | | | which level of punishment best suites those |
| My company's organizational architecture is best | | | | associate's that fail to follow guidance or perform. |
| illustrated using a three-legged stool. The stool with | | | | These escalating levels of punishment can lead up to |
| three equally supporting limbs represents balance. | | | | and include possible termination in certain cases. |
| Creating this sense of equilibrium between the | | | | The third leg of the stool necessary to achieve |
| management team and the workforce in any | | | | balance within the organization is the delegation of |
| organization, regardless of its size, is a very difficult | | | | decisional rights. This power of authority descends in a |
| feat to achieve. The three legs that create this stability | | | | traditional hierarchy throughout the company beginning |
| within my company are the following. First, all company | | | | with the board of directors and cascading down |
| employees are measured on their performance both | | | | throughout management. These decisional rights are of |
| objectively and subjectively. This means that everyone | | | | the utmost importance for maintaining order and |
| is individually accountable for their own results. Second, | | | | obedience among the employees within the |
| an associates' performance either merits them | | | | organization because they empower those in charge |
| rewards or punishment. Third, decisional rights are | | | | the necessary autonomy to effectively govern their |
| assigned throughout the organization to empower | | | | own people and resources whom there are |
| those in authority with the ability to properly control and | | | | responsible for. |
| manage their people and resources. | | | | In conclusion, it is clear to see why each of the three |
| Measuring associate performance accurately and | | | | components of performance measurement, |
| balanced is critical. My company utilizes performance | | | | performance reward and punishment, and allocation of |
| development plans to create clearly defined objective | | | | decisional rights are integral to one another and |
| and subjective goals based on the associate's specific | | | | essential to the longevity of the corporation. They all |
| position and line of business. These goals are targeted | | | | support the organizational balance which can only be |
| to impact our three major audiences which are; our | | | | achieved when associates are motivated to perform |
| associate's, our customers, and our shareholders. | | | | and thrive in a business environment that rewards |
| Objective goals are constituted by such quantitative | | | | success and weeds out failure. In today's business |
| measures such as the number of customers serviced | | | | world, companies need to aspire to more than return |
| over a course of time or the amount of client account | | | | profits to their management and shareholders; they |
| balances impacted by specific work actions. | | | | need to inspire great future business leaders from |
| Subjective goals are qualitatively measured by the | | | | deep within their own ranks. |
| way that an associate achieves their results (for | | | | |