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        System For Creating Problems Problems in organizations seldom exist independently of each other. Instead
 problems, or at least what most call problems, reinforce each other in 
        a
 self-perpetuating and even escalating system. I think it is important 
        to
 learn to distinguish a problem from a cause. The parameters and significance
 or cost of a problem are defined by understanding the variance or deviation
 from what is expected. For example, we expect scrap to be below 2%, but 
        it
 is running over 7%. The 5% deviation defines the problem. Causes on the
 other hand can be obvious (of course if a cause is obvious and the problem 
        is
 significant someone had better be asking why that cause has not been
 eliminated). Seldom are the causes of problems so obvious, however, most
 are unknown and are of complex interrelationships. Many are the unintended
 result of well meaning but destructive management policies and programs.
 The most deadly or potentially 
        most dysfunctional and destructive of these are merit pay, rewards and recognition, performance appraisals and incentive
 and motivation programs. This idea will shock many readers. Programs in
 these areas are common. Far too many human resources specialists see the
 administration and implementation of programs in these areas to be their
 purpose in existing.
 Why do such misguided programs 
        exist and thrive? It all has to do with the prevailing myths - the premises and beliefs about people. Despite
 generations of study of the works of Douglas McGregor (Theory X-Y), W.E.
 Deming (profound knowledge) and thousands of equally respected management
 experts, the fact is that it is a misguided distrust of others that drive
 managers to devise programs, policies, and interventions based on that
 premise.
 The programs actually lead 
        to a self fulfilling prophecy. Treat people as if they are untrustworthy and they will most assuredly act in a way you can
 justifiably assume or interpret as untrustworthy. There are 4 primary
 mythologies in this regard.
 Premises That Create The Culture 
        Of Distrust 1. Assumptions that problems 
        are the result of individual dereliction. 2. That successful work comes 
        only as people are held accountable for the achievement of measurable goals, and feedback systems that are based solely
 on the measurement of these goals.
 3. That there is a reservoir of withheld effort or brain power that must 
        be
 coaxed out of people, and that people are intentionally holding back in 
        some
 clever and manipulative manner.
 4. That is is the manager who must motivate and control the workforce.
 The downfall often begins with 
        what one formerly high-flying entrepreneur engaged in the design and implement of measurement and electronic feedback
 systems called “idiot proofing”. Virtually every organization 
        who installed
 his system did so with great enthusiasm and investment only to meet with
 inevitable failure a few years later. Their best employees and most able
 leaders left first in response to the new controlling environment. (In 
        a
 peculiar twist, and fortunately for them, their measurement system was 
        so
 sophisticated it was easy to track the downfall, but they never understood
 that they were victims of their own self fulfilling prophecy.) As ill
 advised performance appraisal, measurement, incentive, merit pay and
 reward/recognition programs are implemented, the outcomes are poor morale,
 cynicism, faking, blaming, denials, high turnover, low innovation, and 
        lack
 of initiative. It is not that there is no place for some of the benefits
 that can come from some of these efforts. The warning is buyer beware. 
        What
 is the purpose of your program? Is it based on trust and on positive
 assumptions, or is it based on fear, distrust, divisiveness? Will it create
 winners and losers, control and ease of administration? Will it serve 
        to
 grow people, satisfy customers and develop suppliers? Will it expand
 employees’ thinking or cause them to pull in their horns? Is it 
        management
 you are after or leadership? Would you see no value in implementing the 
        same
 program in your family, your club, or your church? Is it for their benefit,
 is it for your protection or to reinforce your authority?
 I have often stated in this 
        space that people are doing the best job they can. Accountability, feedback, goal setting and incentives do not improve
 systems. Improving systems improves systems. Do you feel “I’m 
        ok - they
 need incentives?” Do you worry that if you eliminate performance 
        appraisals
 you will lose your ability to control, evaluate and blame people when 
        things
 go wrong? The real question is, “Why do things go wrong even when 
        those
 doing the work are being accountable and doing their best?”. When 
        it is
 clear you are getting less than their best, is it their fault or yours? 
        If
 their best is not good enough, you had better be looking at your selection,
 coaching, training, supporting, systems, and leadership processes - not 
        at
 more ways to control them.
 ================================================================== Ed Yager specializes in leadership 
        assessment, coaching, and training. www.yager.bizhosting.com
 
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