Culture of Performance
Culture of Performance has to be fostered with wisdom and nurtured with maturity if it has to sustain & succeed. Both dynamic systems - the Rewards & the Punishment systems need to equally be balanced to let the larger organization thrive. Absence of punishments demotivates talent as much as presence of rewards' motivates.
Six states need to be clearly differentiated and over communicated (if necessary) in a Performance Culture :
1. Spot Awards for reflecting desirable behaviours
2. Rewards for measured high performances and over defined achievements
3. Clarity on 'No Rewards' for average performances or Meeting Expectations; philosophically, that is what you are being paid for. Rewards are to make a person thrive for higher performances - for average performance, your pay suffices.
4. 'PIPs' for displaying acceptable behaviours, making efforts but yet not meeting targets play their own role.
5. Censoring for cases of borderline dereliction of duties and infringement of expected and accepted behaviours.
6. No Tolerence - Immediate drastic Punishment for integrity violators reflecting undesirable behaviours. Speed is of essence here. Should be immediate (albeit with process), like the classical - hot gas stove. You put your finger in and it gets immediately burnt irrespective of who you are. 'Integrity Policy Violators' irrespective of being high performing assets of the Co cannot be exempted. Your employees watch these cases closely to see your committment to your Performance Culture. One such case can destroy the otherwise well executed Culture.
Rewards - are easy to link-up and connect but the goal of the punishment system in any organisation usually should be to stop undesirable behaviours. You can see the harm that absence of Punishment can lead to .
But my experience tells me that Managers are very comfortable operating the Rewards' system. But come time to Punish , Asian Managers are weak and fail to execute punishment systems effectively, unlike their Western counterparts. A rather too long a rope is given and this deteriorates the Punishment system and the R& P Peformance Culture goes for a toss. But maybe this is my experience, one cannot generalise.
A well communicated R& P Policy sponsored by the Board and subscribed by the Executives has to precede the setting of an organisation's Performance Culture.
But more importantly is its live execution ... employees within the organisation should be able to recall examples of illustrations of cases in the system for each of the 6 differentiated states without fear or favour.