Page 368 - 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

providing recognition, it doesn’t mean that the recipient will
perceive the same relationship between behavior and recognition.
• Employees should not believe that recognition is based primarily on luck.
An early sign of this is cynicism. Employees will tell you that
management says one thing but does another.

• Recognition meets a basic human need. Recognition, especially public
recognition, meets the needs for belonging and self-esteem. In this
way, recognition can play an important function in the workplace.
According to Maslow’s theory, until these needs for belonging and
self-esteem are satisfied, self-actualizing needs such as pride in
work, feelings of accomplishment, personal growth, and learning
new skills will not come into play.
• Recognition programs should not create winners and losers. Recognition
programs should not recognize one group of individuals time after
time while never recognizing another group. This creates a static
ranking system, with all of the problems discussed earlier.
• Recognition should be given for efforts, not just for goal attainment.
According to Imai, a manager who understands that a wide variety
of behaviors are essential to the company will be interested in criteria
of discipline, time management, skill development, participation,
morale, and communication, as well as direct revenue production.
To be able to effectively use recognition to achieve business goals,
managers must develop the ability to measure and recognize such
process accomplishments.
• Employee involvement is essential in planning and executing a
recognition program. It is essential to engage in extensive planning
before instituting a recognition program or before changing a bad
one. The perceptions and expectations of employees must be
surveyed.

Principles of Effective Reward Systems
Kohn (1993) believes that nearly all existing reward systems share the fol-
lowing characteristics:

1. They punish the recipients.
2. They rupture relationships.
3. They ignore reasons for behavior.
4. They discourage risk-taking.
Most existing reward systems (including many compensation systems)
are an attempt by management to manipulate the behaviors of employees.
Kohn convincingly demonstrates, through solid academic research into

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