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Recognition That Fuels
       Empowerment
How Employee Recognition Reinforces
 Performance & Creates Motivation

                July 30, 2012

               By Josh Kuehler
          Internal Consistency, Inc.
        www.InternalConsistency.com
                                       1
Objective
To lay out a synthesized argument that
  supports employee recognition as a
  performance management model – one that
  yields higher performance while creating a
  positive work environment.




                                               2
Approach
• Organizational Psychology perspective
  – Organizational behavior
  – Systems approach


• Scholar-Practitioner=Applying research

• Stats joke: In God we trust, all else must bring
  data.
                                                     3
Agenda
• Employee Empowerment
  – 4 components
• Motivation
• Recognition
  – Why
  – How




                            4
Empowerment vs. Engagement
• Engaged workforce
  – Discretionary effort
  – Emotional commitment to organization
• Empowered individuals
  – Freedom to choose
  – Effort is reinforced

  Recognition  Empowerment  Engagement

                                           5
Do You Really Want
                Empowerment?
• “You are now empowered- act
  accordingly” and then nothing
  happens
   – Mgmt concludes “these people really
     just want someone to tell them what
     to do”
• Barrier to empowerment: When
  managing others, the
  reinforcement of control systems
   – Sends the message “we really
     don’t trust people”.


                                           6
Harnessing Empowerment
     Sharing power with a view toward enhancing
       employee motivation and investment in their
       work.




(Zhang & Bartol, 2010)



                                                     7
Components of Empowerment
•   Meaningfulness
•   Competence
•   Autonomy
•   Impact




                                8
Meaningfulness
      • Feeling that one’s work is personally
        important.
           – Help employees understand the importance of his/her
             contribution to the organization1


      • Role of Recognition:
           – Highlighting the contribution
           – Reinforce and emphasize meaning


1.   (Zhang & Bartol, 2010)


                                                                   9
Impact
      • Represents the degree to which one views
        one’s behaviors as making a difference in
        work outcomes1
            – Opposite of learned helplessness


      • Role of Recognition:
            – Acknowledgement of the person’s role in determining
              outcomes

1.   (Zhang & Bartol, 2010)


                                                                    10
Autonomy
      • Participation in decision making gives employees a
        feeling of greater control over immediate work
        situation and enhanced sense that his or her own
        behaviors can make a difference in work results. 1
      • Opposite of autonomy is supervision, a hygiene
        factor.
      • Role of Recognition:
            – Highlights the person’s decision-making ability.

1.   (Zhang & Bartol, 2010)



                                                                 11
Competence
      • Self-efficacy, or belief in one’s ability to
        successfully perform tasks.1
            – Managers can express confidence in competence in high
              performance.
      • Congruent with Achievement; a motivator
      • Role of Recognition:
            – Fulfilling self-efficacy. Reinforcing the belief.


1.   (Zhang & Bartol, 2010)



                                                                      12
What Lies Underneath
• True term is Psychological Empowerment.
• While the term is performance management,
  it really should be called behavior
  management.
  – We forget that people are people and behave
    (react) to events.
• The events in our environment shape us.


                                                  13
Performance Mgmt Approaches
• Management by Exception: Fixing problems
• Recognition: Reinforcing successes




                                             14
Performance Mgmt Outcomes
• MBE and controlling techniques will get you
  compliance.
  – Rewarding following the rules
  – Reduced risk taking



• Recognition techniques will get you drive.
  – Directly rewarding discretionary effort
  – Creates safe environment to explore alternatives
                                                       15
So how does recognition really
      affect a person?




                                 16
A Psychological Perspective
1. Herzburg’s 2 factor theory
2. Self-fulfilling prophecy
3. Applying Strengths




                                   17
Herzberg’s Model
Hygiene: Lead to               Motivator: Lead to
dissatisfaction                satisfaction
• Company policy               •   Achievement
• Supervision                  •   Recognition
• Relationship w/ supervisor   •   Work itself
• Work conditions              •   Responsibility

Tame these factors             Flame these factors




                                                     18
19
Locus of Motivation
• Extrinsic motivation: Financial, If-then
• Intrinsic motivation: For the sake of doing it




                                                   20
Intangibles are Intrinsic




                            21
Self-Fulfilling Prophecy
• Going toward what we want
  – Competence
• If you don’t know where you are going, you’ll
  end up somewhere else” – Yogi Berra




                                                  22
Self-Fulfilling Prophecy
• Going toward what we want; not away from
  what we don’t want.




                                             23
Strengths-Based
• Romanticizing Rudy       • Positive Psychology
  – Overcoming obstacles     – Applying strengths




                                                    24
Focusing on Strengths




                        25
Role of Recognition
     • Mgr recognition is a booster shot
           – 77% to 91% when high favorable opinion
           – 33% to 52% when low favorable opinion




(Towers Perrin, 2010)


                                                      26
So how can we make giving
    recognition easier?




                            27
Meaningful Recognition

• ARC:
  – Action: Here is what was done (behavior)
  – Result: Here is what happened because
  – Consequence: Here is why that is important




                                                 28
Performance Feedback
• Conversational structures:
  – Start, Stop, Continue

  – Liked Best: “when you …”
  – Next time: “how can we …”




                                29
Example Recognition Program




                              30
Putting it all together




                          31
Reinforcing Performance
• If they receive no support or no
  reinforcement, the empowerment cycle
  breaks and employees feel misled.
• When system reinforce individual
  empowerment, the process can be
  regenerative and dynamic



                                         32
Small Shifts, Consistently
Best Buy has already had success in connecting
  improved employee-engagement scores to
  store performance: it found that for every
  10th of a point it boosted the former, its
  stores saw a $100,000 increase in operating
  income.” — CFO Magazine, June 1, 2007




                                                 33
Characteristics of Empowered
              Employee
• Have sense of self-determination (autonomy)
  – free to choose how to do their work; not micromanaged
• Have a sense of meaning
  – feel their work is important to them; they care about what
    they are doing
• Have a sense of competence
  – Confident about their ability to do their work well
• Have a sense of impact
  – Believe they have influence on their work unit; others
    listen to their ideas
                                                             34
Conclusion
• Going toward what you want is more effective
  than going away from what you don’t want
• “Ascension” approach
• External motivation is short term
• Recognition calls attention to competence
• Consistently applied will transform
  environment into encouragement & support

                                             35
Resources
•Gallup, Inc. (2010). Employee engagement: What‘s your engagement ratio
•Goldsmith, M. (2007). Do you have any suggestions to help me do a better job of
providing positive recognition?, Harvard Business Review.
http://blogs.hbr.org/goldsmith/2007/09/how_do_i_provide_meaningful_re_1.html
•Herzberg, F. (1987). One more time: How do you motivate employees, Harvard
Business Review, 5- 16.
•Towers Perrin. (2010). Turbocharging employee engagement: The power of
recognition from managers. Part 1- the engagement engine.
•Zhang, X., and Bartol, K. (2010). Linking empowering leadership and employee
creativity: The influence of psychological empowerment, intrinsic motivation, and
creative process engagement. Academy of Management Journal, 53, 107-128.




                                                                                    36
Contact: Joshua Kuehler
Email:
  Josh@internalconsistency.com
Phone: 1-888-481-4741
Twitter: @I_Consistency

                                 37

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Recognition that fuels empowerment by @I_Consistency

  • 1. Recognition That Fuels Empowerment How Employee Recognition Reinforces Performance & Creates Motivation July 30, 2012 By Josh Kuehler Internal Consistency, Inc. www.InternalConsistency.com 1
  • 2. Objective To lay out a synthesized argument that supports employee recognition as a performance management model – one that yields higher performance while creating a positive work environment. 2
  • 3. Approach • Organizational Psychology perspective – Organizational behavior – Systems approach • Scholar-Practitioner=Applying research • Stats joke: In God we trust, all else must bring data. 3
  • 4. Agenda • Employee Empowerment – 4 components • Motivation • Recognition – Why – How 4
  • 5. Empowerment vs. Engagement • Engaged workforce – Discretionary effort – Emotional commitment to organization • Empowered individuals – Freedom to choose – Effort is reinforced Recognition  Empowerment  Engagement 5
  • 6. Do You Really Want Empowerment? • “You are now empowered- act accordingly” and then nothing happens – Mgmt concludes “these people really just want someone to tell them what to do” • Barrier to empowerment: When managing others, the reinforcement of control systems – Sends the message “we really don’t trust people”. 6
  • 7. Harnessing Empowerment Sharing power with a view toward enhancing employee motivation and investment in their work. (Zhang & Bartol, 2010) 7
  • 8. Components of Empowerment • Meaningfulness • Competence • Autonomy • Impact 8
  • 9. Meaningfulness • Feeling that one’s work is personally important. – Help employees understand the importance of his/her contribution to the organization1 • Role of Recognition: – Highlighting the contribution – Reinforce and emphasize meaning 1. (Zhang & Bartol, 2010) 9
  • 10. Impact • Represents the degree to which one views one’s behaviors as making a difference in work outcomes1 – Opposite of learned helplessness • Role of Recognition: – Acknowledgement of the person’s role in determining outcomes 1. (Zhang & Bartol, 2010) 10
  • 11. Autonomy • Participation in decision making gives employees a feeling of greater control over immediate work situation and enhanced sense that his or her own behaviors can make a difference in work results. 1 • Opposite of autonomy is supervision, a hygiene factor. • Role of Recognition: – Highlights the person’s decision-making ability. 1. (Zhang & Bartol, 2010) 11
  • 12. Competence • Self-efficacy, or belief in one’s ability to successfully perform tasks.1 – Managers can express confidence in competence in high performance. • Congruent with Achievement; a motivator • Role of Recognition: – Fulfilling self-efficacy. Reinforcing the belief. 1. (Zhang & Bartol, 2010) 12
  • 13. What Lies Underneath • True term is Psychological Empowerment. • While the term is performance management, it really should be called behavior management. – We forget that people are people and behave (react) to events. • The events in our environment shape us. 13
  • 14. Performance Mgmt Approaches • Management by Exception: Fixing problems • Recognition: Reinforcing successes 14
  • 15. Performance Mgmt Outcomes • MBE and controlling techniques will get you compliance. – Rewarding following the rules – Reduced risk taking • Recognition techniques will get you drive. – Directly rewarding discretionary effort – Creates safe environment to explore alternatives 15
  • 16. So how does recognition really affect a person? 16
  • 17. A Psychological Perspective 1. Herzburg’s 2 factor theory 2. Self-fulfilling prophecy 3. Applying Strengths 17
  • 18. Herzberg’s Model Hygiene: Lead to Motivator: Lead to dissatisfaction satisfaction • Company policy • Achievement • Supervision • Recognition • Relationship w/ supervisor • Work itself • Work conditions • Responsibility Tame these factors Flame these factors 18
  • 19. 19
  • 20. Locus of Motivation • Extrinsic motivation: Financial, If-then • Intrinsic motivation: For the sake of doing it 20
  • 22. Self-Fulfilling Prophecy • Going toward what we want – Competence • If you don’t know where you are going, you’ll end up somewhere else” – Yogi Berra 22
  • 23. Self-Fulfilling Prophecy • Going toward what we want; not away from what we don’t want. 23
  • 24. Strengths-Based • Romanticizing Rudy • Positive Psychology – Overcoming obstacles – Applying strengths 24
  • 26. Role of Recognition • Mgr recognition is a booster shot – 77% to 91% when high favorable opinion – 33% to 52% when low favorable opinion (Towers Perrin, 2010) 26
  • 27. So how can we make giving recognition easier? 27
  • 28. Meaningful Recognition • ARC: – Action: Here is what was done (behavior) – Result: Here is what happened because – Consequence: Here is why that is important 28
  • 29. Performance Feedback • Conversational structures: – Start, Stop, Continue – Liked Best: “when you …” – Next time: “how can we …” 29
  • 31. Putting it all together 31
  • 32. Reinforcing Performance • If they receive no support or no reinforcement, the empowerment cycle breaks and employees feel misled. • When system reinforce individual empowerment, the process can be regenerative and dynamic 32
  • 33. Small Shifts, Consistently Best Buy has already had success in connecting improved employee-engagement scores to store performance: it found that for every 10th of a point it boosted the former, its stores saw a $100,000 increase in operating income.” — CFO Magazine, June 1, 2007 33
  • 34. Characteristics of Empowered Employee • Have sense of self-determination (autonomy) – free to choose how to do their work; not micromanaged • Have a sense of meaning – feel their work is important to them; they care about what they are doing • Have a sense of competence – Confident about their ability to do their work well • Have a sense of impact – Believe they have influence on their work unit; others listen to their ideas 34
  • 35. Conclusion • Going toward what you want is more effective than going away from what you don’t want • “Ascension” approach • External motivation is short term • Recognition calls attention to competence • Consistently applied will transform environment into encouragement & support 35
  • 36. Resources •Gallup, Inc. (2010). Employee engagement: What‘s your engagement ratio •Goldsmith, M. (2007). Do you have any suggestions to help me do a better job of providing positive recognition?, Harvard Business Review. http://blogs.hbr.org/goldsmith/2007/09/how_do_i_provide_meaningful_re_1.html •Herzberg, F. (1987). One more time: How do you motivate employees, Harvard Business Review, 5- 16. •Towers Perrin. (2010). Turbocharging employee engagement: The power of recognition from managers. Part 1- the engagement engine. •Zhang, X., and Bartol, K. (2010). Linking empowering leadership and employee creativity: The influence of psychological empowerment, intrinsic motivation, and creative process engagement. Academy of Management Journal, 53, 107-128. 36
  • 37. Contact: Joshua Kuehler Email: Josh@internalconsistency.com Phone: 1-888-481-4741 Twitter: @I_Consistency 37

Editor's Notes

  1. http://www.managementexchange.com/video/seth-godin-are-you-artist-or-just-following-instructions
  2. Our intention today is to give you a well laid out story that makes the argument for employee recogntion as a performance management model. We’ll show that this model of recognition incorporates the drivers of motivation and make the case that performance is consistently higher with recognition.
  3. Here’s the approach we take at internal Consistency. Behavior is the focus and we realize that behavior doesn’t happen in a vaccuum but instead is a reaction to the surrounding environment. Lastly, we buy into data driven decisions, so we’ll provide research and data to back up our claims.
  4. Here is what we’ll cover today. We’ll better understand what employee empowerment is, How motivation fits into the picture and then give you some tools to make giving recognition easier to promote empowerment.
  5. Here is a quick description between empowerment and engagement. A common definition of engagement is “discretionary effort”. Discretion means the freedom to choose. And effort must be reinforced if it is desired. And so we see a chain of events. Recognizing effort leads to the choice to continue such efforts resulting in an engaging workforce
  6. Part of having empowered employees is giving them power to take action and make a difference. Here we see Peter Parker realizing the power he has as his alter ego Spiderman. So let’s learn about what makes up Empowerment…
  7. There are 4 components to an empowered employee. We will discuss each of these components and show how employee recognition highlights each.
  8. Meaningfulness is the “Why am I doing this?” For those managers overseeing Gen Y employees, this is even more important to highlight. How is this work important Recognition is a response to the previous quesiton. Recognition let’s the employee know that their work IS important. If the work is important to the boss, and attention is given to the work, then it carries more meaning for the employee.
  9. Having an impact in one’s job is a sense of progress. This is really the opposite of learned helplessness. Recognizing employee’s outcomes or effort shows that their effort did make an impact… on you, the manager. The presense of recognition is a demonstration of impact. You can show demonstrated impact, by offering recognition.
  10. Autonomy is allowing the freedom to make decisions on how to conduct work. Again, with Gen Y employees, they’ll want to decide HOW to do the work and how to get it done. You can see that the opposite is supervision, which we’ll discuss later as it relates to motivation. Recognition indirectly speaks to the person’s ability to decide how to carry out the work. Recognition shows that you as a manager have confidence in the way the employee does his/her work. And speaking of confidence in work…
  11. The final part of Empowerment is Competence. This is likened to Self-Efficacy, which is the “I can do this” aspect to one’s work. Recognition helps to reinforce the belief. It provides support for performing.
  12. As I mentioned before, we apply an organizational psychology approach and what we are really talking about is called Psychological Empowerment. This means that you, as a leader, can take steps to provide mental support for performance. Another distinction to make is what we call performance management. That term sounds impersonal. We should be looking at behavior that leads to performance. Afterall, we are working with people and our surroundings have a huge influence on our behavior. For this discussion, I’m going to compare two types of environments to demonstrate how they affect use differently.
  13. Let’s compare Management by Exception and continuous recognition. Now this graph is just an example using fake data. The blue line represents what MBE might look like. Something breaks or goes off the rails and then returns to normal. The green line, highlights successes and effort, which is then reinforce and replicated again, and again.
  14. MBE= compliance, by the book, because if you risk something and it doesn’t work right the very first time, negative consequenses happen Meanwhile Recognition acknowledges that effort was taken to take the risk, and even if it didn’t work the first time, the effort was desired.
  15. Frederick Herzberg studied factors that lead to both satisfaction and factors that lead to dissatisfaction at work. He found these 2 factors. Hygiene factors such as Supervision lead to employee dissatisfaction, while recognition and achievement lead to employee satisfaction. Here, let’s take a look at the results
  16. Going to the left indicates dissatisfaction and bars going to the right indicate satisfaction. You can see that Achievement and Recognition are the strongest motivators, while policies and supervision (which inhibit autonomy) lead to dissatisfaction. Thse are external factors reated to motivation; now lets look directly at what motivation is..
  17. Motivation can come from outside or from within. On the left, we see the too frequently used carrot and stick and on the right we see Daniel Pink, Author of Drive, a great book on what motivates employees. Managers and leaders should steer away from carrots and sticks and incorporate instinsic motivators. Let’s look at some data
  18. Here are theresults from a Towers Watson study looking at the types of incentives and the effectivness of each. Most common: cash based bonuses. Meanwhile there are three other incentives that are more effective. And they point to intrinsic motivation. A secondary benefit is that the more effective incentives don’t cost the company any financial resources, which is important in this unstable economy. Here’s another reason why recognition is better than MBE
  19. Recall that competence or self-efficacy empowers employees. That’s because it hits on the “I Can”. Leaders can use recognition to create a self-fulfilling prophecy by Going toward what you do want instead of away from what you don’t want. And the quote by Yogi Berra has never been more true
  20. I’d like to tell a quick story about going toward what we want. The story goes like this. Officials in Kansas noticed that many people driving across I-70 in the winter would spin out and crash into the powerline poles. I-70 in Kansas is long, flat, and straight, so how could this be? Well as people were spinning out of control, they would notice the poles, not wanting to hit them, focused their attention on the poles, and end up running into them. So, Let’s move toward what we do want. Not away from what we don’t want. This is fairly similar to…
  21. Romanticizing the “overcoming all odds” stories. The movie Rudy is another great story, but shouldn’t be a model for performance at work. Instead we should take the research from Martin Seligman and apply our strengths. Applying our strenghts at work and in our personal lives has demonstrated a strong link to happpiness and satisfaction. Let’s look at some data about strengths
  22. Gallup asked employees about the covnersations they had with their managers, And they looked at how these conversations differed by the levels of engagement. Employees who felt ignored were 40X more likelty to be actively dis
  23. Here
  24. http://www.inc.com/jeff-haden/what-your-employees-are-really-thinking.html