Page 367 - The Handbook for Quality Management a Complete Guide to Operational Excellence

354 C o n t i n u o u s I m p r o v e m e n t C o n t r o l / V e r i f y S t a g e 355

The form of recognition can range from a pat on the back to a small gift to
a substantial amount of cash. When substantial cash awards become an
established pattern, however, it signals two potential problems:

1. It suggests that several top priorities are competing for the employee’s
attention, so that a large cash award is required to control the
employee’s choice.
2. Regular, large cash awards tend to be viewed by the recipients as
part of the compensation structure, rather than as a mechanism for
recognizing support of key corporate values.
Carder and Clark (1992) list the following guidelines and observations
regarding recognition:

• Recognition is not a method by which management can manipulate
employees. If workers are not performing certain kinds of tasks,
establishing a recognition program to raise the priority of those
tasks might be inappropriate. Recognition should not be used to
get workers to do something they are not currently doing because
of conflicting messages from management. A more effective
approach is for management to first examine the current system of
priorities. Only by working on the system can management help
resolve the conflict.
• Recognition is not compensation. In this case, the award must represent
a significant portion of the employee’s regular compensation to
have significant impact. Recognition and compensation differ in a
variety of ways:
• Compensation levels should be based on long-term considerations
such as the employee’s tenure of service, education, skills, and
level of responsibility. Recognition is based on the specific
accomplishments of individuals or groups.
• Recognition is flexible. It is virtually impossible to reduce pay
levels once they are set, and it is difficult and expensive to
change compensation plans.
• Recognition is more immediate. It can be given in timely fashion
and therefore relate to specific accomplishments.
• Recognition is personal. It represents a direct and personal
contact between employee and manager.
• Recognition should be personal. Recognition should not be carried
out in such a manner that implies that people of more importance
(managers) are giving something to people of less importance
(workers).
• Positive reinforcement is not always a good model for recognition. Just
because the manager is using a certain behavioral criterion for

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