Incentive Pay
Incentive pay is something that employers use to improve productivity and maintain employee morale. But incentive programs need to be monitored and administered carefully to avoid creating a culture of expectation. If an incentive pay program is set up to reward employees that do not perform, that creates a dangerous culture precedent. For example, a profit-sharing program where every employee gets a bonus check regardless of performance will diminish the motivating effect of the program and cause employees to expect the bonus without having to perform even at baseline expectations. By instituting a system of checks that forces employee to reach certain performance levels before being able to take part in an incentive program, you help to create a culture of performance expectations. This makes the investment of a profit-sharing program viable and makes it into a motivational tool.
Focus
A corporate culture that each employee subscribes to helps to create focus among the staff. When employees abide by the company's beliefs and values, it gives a unified impression to vendors, clients and partners. The company can then create a business strategy knowing that the entire organization will apply the guidelines in a uniform manner and improve the chances that a strategy will succeed.
A vice-president approached me one day after I finished delivering a keynote. The talk was focused on organizational culture. He was friendly, but rather cocky. The first line he spoke to me was telling. “It takes too long,” he said. “These engagement things you talked about, it takes too long to implement. I need to drive results, not worry about people’s feelings.”
It was a wee bit strange to say the least. Why he decided to take the time to tell me I was wrong said more about his lack of emotional intelligence than it did his poor judgment. I asked if he thought the way his employees were being treated might have an adverse effect on his company’s performance. “It doesn’t matter,” he responded, “because if they’re not performing, they will be found out.”
Every organization, from small businesses to large corporations, has a culture. The culture refers to the values and attitudes of employees in the business or organization. In a business with an unhealthy culture, employees act as individuals, performing their duties to meet their own needs, such as a paycheck or health benefits. A healthy corporate culture values each employee in the organization regardless of his job duties, which results in employees working as a team to meet the company’s and their own personal needs. Healthy corporate culture improves the performance of a business in a number of areas.
Employee Retention
In a company that values workers for their contribution to the business, employees experience high morale and a positive attitude toward the organization. Workers with a positive attitude are loyal to the organization, which reduces employee turnover. Worker turnover has a high cost to a business, with increased costs for recruitment, hiring and training. A healthy corporate culture can help a company retain valuable employees and reduce human resources costs.
Reputation
Companies with a healthy corporate culture gain a positive reputation among potential workers, which may attract talented and skilled workers to the organization. In addition to attracting high-quality workers, a well-regarded business reputation allows the company to charge a higher price for products and services and increases the value of the company in the financial market. Customers may prefer to conduct business with a business with a solid corporate reputation as well.
Productivity
The improved morale of workers in a company with a healthy corporate culture increases productivity. When workers increase productivity, the financial health of the organization improves, and profits increase. Increases in productivity are a measure that illustrates efficiencies and effectiveness in the company. Employees benefit from increases in productivity with higher salaries in employee benefit programs.
Quality
Healthy corporate cultures encourage workers to deliver quality products and services. Companies with cultures valuing the highest standards create an atmosphere for workers to deliver products that meet those high standards. The cultural standards for excellence are an important factor for creating a product or service with a reputation for high quality.
organization is formed to achieve certain goals and objectives by bringing individuals together on a common platform and motivating them to deliver their level best. It is essential for the employees to enjoy at the workplace for them to develop a sense of loyalty towards it.
Work culture plays an important role in extracting the best out of employees and making them stick to the organization for a longer duration. The organization must offer a positive ambience to the employees for them to concentrate on their work rather than interfering in each other’s work.
What is work culture ?
Work culture is a concept which deals in the study of:
- Beliefs, thought processes, attitudes of the employees.
- Ideologies and principles of the organization.
It is the work culture which decides the way employees interact with each other and how an organization functions.
In layman’s language work culture refers to the mentality of the employees which further decides the ambience of the organization.
An organization is said to have a strong work culture when the employees follow the organization’s rules and regulations and adhere to the existing guidelines. However there are certain organizations where employees are reluctant to follow the instructions and are made to work only by strict procedures. Such organizations have a weak culture.
Characteristics of a Healthy work Culture:-
- A healthy work culture leads to satisfied employees and an increased productivity.
- Employees must be cordial with each other. One must respect his fellow worker. Backbiting is considered strictly unprofessional and must be avoided for a healthy work culture. One gains nothing out of conflicts and nasty politics at work.
- Each employee should be treated as one. Partiality leads to demotivated employees and eventually an unhealthy work culture. Employees should be judged only by their work and nothing else. Personal relationships should take a backseat at the workplace. Don’t favour anyone just because he is your relative.
- Appreciating the top performers is important. Praise the employees to expect good work from them every time. Give them a pat on their back. Let them feel indispensable for their organization. Don’t criticize the ones who have not performed well, instead ask them to pull up their socks for the next time. Give them one more opportunity rather than firing them immediately.
- Encourage discussions at the workplace. Employees must discuss issues among themselves to reach to better conclusions. Each one should have the liberty to express his views. The team leaders and managers must interact with the subordinates frequently. Transparency is essential at all levels for better relationships among employees and a healthy work culture. Manipulating information and data tampering is a strict no no at the workplace. Let information flow in its desired form.
- Organization must have employee friendly policies and practical guidelines. Expecting an employee to work till late night on his birthday is simply impractical. Rules and regulations should be made to benefit the employees. Employees must maintain the decorum of the organization. Discipline is important at the workplace.
- The “Hitler approach” does not fit in the current scenario. Bosses should be more like mentors to the employees. The team leaders should be a source of inspiration for the subordinates. The superiors are expected to provide a sense of direction to the employees and guide them whenever needed. The team members should have an easy access to their boss’s cabin.
- Promote team building activities to bind the employees together. Conduct training programs, workshops, seminars and presentations to upgrade the existing skills of the employees. Prepare them for the tough times. They should be ready under any odd circumstances or change in the work culture.
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