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       The Sound of All Hands Clapping: Use recognition 
        to build a better organization 
        By Craig Cochran 
         
        All humans crave recognition. It’s a universal need. 
        Whether you’re a manager in Atlanta or a mechanic in Burnley, you 
        want others to notice your efforts. Simply put, getting recognized feels 
        good. We’re all aware that employees benefit from recognition, but 
        we tend to forget that organizations benefit just as much from recognizing 
        their employees. What are some of the benefits to both employees and their 
        companies? Let’s take an inventory: 
      
         
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          Employees receive unequivocal feedback on their performance. | 
         
         
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          Employees understand that their efforts make a difference.  | 
         
         
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          Employees’ pride and self-esteem are reinforced.  | 
         
         
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          Organizations receive greater motivation and effort from recognized 
            employees.  | 
         
         
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          Employees see that their organization values its people and cares 
            about their success.  | 
         
         
          | • | 
          Employee performance increases as personnel strive to perform in 
            a way that receives recognition.  | 
         
        
          | • | 
          Employees feel more loyal to their organization. They begin to feel 
            that they are part of the organization, as opposed to simply being 
            employed by it. | 
         
        
          | • | 
          Employees are willing to work harder and better in a way that money 
            can’t buy.  | 
         
        
          | • | 
          Organizations increase their advantages over competitors.  | 
         
       
      Clearly, recognizing employees makes good business sense, but it can 
        be a complicated issue. With the best of intentions, organizations often 
        implement recognition systems that backfire and create effects exactly 
        opposite to those intended. Embracing the following principles will ensure 
        that recognition achieves the desired results. 
         
        Recognition should be: 
      
         
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           It must be done 
            in front of the larger organization. This might constitute a department, 
            division, facility or the entire corporation. The type of recognition 
            will obviously influence the context within which it’s presented, 
            but it’s important to do so in front of a group. Recognition’s 
            public nature reinforces its significance for both the recipient and 
            the rest of the organization. A public event also means that the recognition 
            is done in person, not via telephone, e-mail, fax or some other remote 
            means.  | 
         
         
          | • | 
          In order for 
            it to have a positive effect on organizational culture, recognition 
            must be available to anyone. Many companies implement recognition 
            policies but limit them to certain employees (e.g., production or 
            hourly personnel). The rationale, apparently, is that recognition 
            is important only to people in certain parts of the organization. 
            This is absurd, of course. Make sure your organization rewards the 
            efforts of all personnel, not just certain segments. | 
         
         
          | • | 
           It must fuel a feeling of 
            dignity in the person who receives it. This can be achieved by building 
            a ceremony, such as a company meeting or holiday dinner, around the 
            recognition. A degree of seriousness and formality is also helpful. 
            This doesn’t mean everyone must be stiff, humorless and dressed 
            in uncomfortable clothes, but the ceremony should be serious enough 
            so all personnel realize that special contributions are valued.  | 
         
         
          | • | 
           It must have symbolic value, 
            something that lasts and can remind the recipient of the performance 
            being recognized. Keepsakes such as letters, certificates, plaques, 
            trophies and paperweights are very effective in this regard. They 
            provide motivation long after the recognition ceremony itself has 
            passed. My wife still displays her “East Ridge Hospital Nurse 
            of Excellence” plaque on our bedroom wall, more than 10 years 
            after she received it. I once asked her why she still displays the 
            plaque. “Because it makes me proud,” she responded. “It 
            means I can succeed at anything.” Years later, the symbolic 
            recognition continues to inspire not just motivation but pride as 
            well.  | 
         
         
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          Are people motivated by 
            money? Of course they are; that’s why most people work. But 
            exceptional performances are often motivated by something much more 
            complex and mysterious. Offering money as part of your recognition 
            policy cheapens it by attempting to affix a monetary value onto something 
            extraordinary. Not every effort, contribution, idea or suggestion 
            can be quantified. Organizations must recognize this fact and simply 
            provide honest, symbolic recognition. Issues of fairness also arise 
            when money becomes part of the equation. Instead of inspiring a culture 
            of continual improvement, monetary recognition often creates resentment 
            and rancor. Money can be an effective part of the recognition formula 
            only when it’s purely symbolic.  | 
         
         
           
            Of course, sustained, outstanding performance should be matched with 
            increased compensation and promotions. If an organization has the 
            resources to increase its star performers’ pay, then it’s 
            wise to do so. But this is different from a day-to-day recognition 
            system. Keep it free of monetary awards and you’ll have far 
            fewer headaches.  
           | 
         
         
          | • | 
           This sends 
            the message that top management is aware of everyone’s contributions 
            and is thankful for outstanding efforts that lead to the organization’s 
            success. Especially in larger organizations, executives are somewhat 
            removed from individual performances. However, when an executive recognizes 
            the individual, it enhances the event’s significance and symbolism--and 
            it also helps to humanize the executive.  | 
         
         
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           Objective, 
            data-oriented criteria usually offer the best means to make decisions, 
            but this isn’t necessarily the case with recognition. Superior 
            performances take many forms; ensure your recognition system can capture 
            the full range of actions and performances that deserve recognition. 
            Don’t restrict its scope by declaring, “Here are the three 
            things that will trigger recognition.” Inevitably, a policy 
            of this sort will prevent you from recognizing someone who really 
            deserves it, simply because his or her performance doesn’t meet 
            the predetermined criteria. Give your system plenty of flexibility 
            and discretion.  | 
         
         
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          You’ve seen the awards 
            countless times: “Employee of the Month,” “Employee 
            of the Quarter” and so forth. With timeframes of this sort, 
            recognition becomes predictable and routine. There might not even 
            be any particularly outstanding performance during the month, but 
            it’s that time again… heck, just pick someone. Forced 
            decisions like this degrade recognition systems. In reality, organizations 
            might go months without identifying performance worthy of special 
            recognition, only to later run across half a dozen in one week. Recognize 
            personnel when performance, rather than the calendar, dictates it. 
           | 
         
       
      Now that we’ve considered how people should be recognized, we must 
        determine who will be recognized. What process can be used? Many organizations 
        form a management committee representing a cross-section of the company. 
        Generally, I oppose decision making by committee, but this is a workable 
        way to do it. A reasonably small committee of managers--no more than 10 
        people--meets regularly to discuss the special achievements of personnel 
        in their areas and agree on persons deserving recognition. 
         
        However, even better than having a management committee decide is to let 
        personnel do it. People who answer phones, package products, troubleshoot 
        equipment and service customers quickly spot which performances are worthy 
        of recognition. An easy way to capture their perspectives is through a 
        card system of some sort. Organizations put catchy titles such as, “We’re 
        writing you up… for being excellent.” on the cards, and provide 
        adequate space for relevant details. The cards are placed throughout the 
        facility or are available electronically. Anybody is authorized to complete 
        one, detailing the person to be recognized and what he or she did that 
        was outstanding. Completed cards are displayed on a wall or bulletin board, 
        and all those who were “written up” receive formal recognition 
        according to the guidelines already mentioned. Using the entire workforce 
        to identify outstanding performances offers a number of advantages. Among 
        other things, it: 
      
         
          | • | 
          Quickly builds an environment that is supportive and 
            team-oriented  | 
         
         
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          Accurately identifies outstanding contributions because those who 
            submit names have first-hand experience with the performances | 
         
         
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          Results in more evenly distributed recognition, including people 
            who work within the less visible functions  | 
         
         
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          Addresses people’s need to feel involved and have their voices 
            heard  | 
         
         
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          Disproves the notion that management plays favorites when personnel 
            are recognized  | 
         
       
       Displaying completed cards serves as a constant reminder not only of 
        the personnel who are recognized but also the system’s democratic 
        nature. The message is, “We support one another in our jobs and 
        take the time to provide recognition when it’s deserved.” 
         
        Few systems are as powerful as an effective recognition system. Because 
        its effect on organizational culture is significant and immediate, the 
        time and effort spent establishing such a policy for your company will 
        be repaid tenfold. 
          
        
      
         
            
              Craig Cochran   | 
          About the Author: 
            Craig Cochran is a project manager with the Center for International 
            Standards & Quality, part of Georgia Tech's Economic Development 
            Institute. He's an RAB-certified QMS lead auditor and the author of 
            Customer Satisfaction: Tools, Techniques and Formulas for Success 
            and The Continual Improvement Process: From Strategy to the Bottom 
            Line, both available from Paton 
            Press. CISQ can be reached at (800) 859-0968 or on the Web at 
            www.cisq.gatech.edu. | 
         
         
           | 
          The Continual Improvement Process: From Strategy to the 
            Bottom Line 
            Continual improvement is not optional. It is a condition of survival. 
            Every organization must have systematic methods for making smart decisions, 
            attacking problems, improving its products and services, and repelling 
            competitors. Anything less than a systematic, disciplined approach 
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            a range of practical methods for driving continual improvement throughout 
            the organization. The starting point is leadership, with a clear definition 
            of mission, strategy, and key measures. These themes are then carried 
            throughout the enterprise, informing everyone on the issues that matter 
            most to survival and success. Strategic approaches for the deployment 
            of metrics, review of organizational performance, effective problem 
            solving, internal auditing, process orientation, and cultural development 
            are also described in detail. Practical tools and examples are provided 
            at every step of the way, enabling immediate implementation of the 
            concepts. This book is more than a guide to continual improvement; 
            it is a guide to leading and managing any organization. | 
         
         
          |     
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              Customer satisfaction is the single most important issue affecting 
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