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Archives For March 2012

M: Equity

David Burkus —  March 30, 2012

This post is the fifth in a series on motivation theory. Over the next few weeks, we’ll review the history of empirical thought on how to motivate followers.

Equity theory is less of a full theory of motivation, and more of a warning to organizations. The theory itself attempts to explain employee satisfaction through exploring employees’ perceptions of fair distribution of rewards. The theory was first developed and presented by John Stacy Adams in 1963. Adams asserted that employees desire to maintain equity between their inputs and the organization’s outputs.

Inputs are the contributions that employees make. They can include time, effort, loyalty hard work and many others. Outputs are positive or negative consequences that individuals perceive have been given in response to inputs. These can include job security, esteem, salary, benefits and more. Based on the mental equation in their head, employees evaluate whether their input/output equation is fair by comparing it to others. Individuals believe they’re being treated fairly when their ration of inputs to outputs matches those around them. If individuals believe they’re over- or under-paid, they will experience distress and a lack of performance will result.

Equity theory presents organizations with a warning about over-compensation or lowering expectations of certain individuals. Over-compensated employees may respond by working harder, or they may alter their perceptions about the worth of their contribution and reduce their contribution. Likewise, employees may perceive others as over-compensated and respond by reducing their effort. While many argue that equity theory offers an overly simple means of explaining employee behavior, most still heed the warnings it offers.

David Burkus is the editor of LDRLB. He speaks, consults and serves on the faculty of management at Oral Roberts University’s College of Business.

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Book Review: Getting Ahead

David Burkus —  March 28, 2012

Most often on this site, we provide strategies and insights to current leaders. However, some of our readers are those seeking to develop and prepare themselves for future leadership roles. While leadership is a role that doesn’t require a title, often the title helps…a lot. So how can you develop yourself professionally and be promoted into a leadership role? This is where Joel Garfinkle’s Getting Ahead: Three Steps to Take Your Career to the Next Level comes in handy.

Spoiler Alert: the three steps are “Improve Your Perception,” “Increase Your Visibility,” and “Exert Your Influence.” It’s not the three steps that are so valuable; it is the tactics for working those three steps. Through the book, Joel offers practical ways to get noticed more often at work. While a lot of research now is fascinated with the idea of introverts in leadership, much of it starts from the premise that extroverts are more likely to be noticed and that being noticed matters in organizations. While a discussion on that issue would have be helpful, We’ll save that debate for another post.

For now, if you’re want to move forward in the organization, then Garfinkle’s Getting Ahead, can offer you some solid advice on how to do just that.

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Strategic Plans: $100,000 Coffee Coasters?

Tim Vanderpyl —  March 26, 2012

Last May, I wrote a post entitled “Save a Tree, Stop Strategic Planning.” My sarcastic post generated more interest than I ever thought it would. I thought I might generate hate mail, or at least have a bunch of people disagree with me, except most people actually agreed with me. Now, 10 months later, I was pondering this week if my views have changed.

Nope.

I still think they are boring and borderline useless. I still think consultants make too much money off of organizations’ planning efforts (it’s only okay if you hire me as your consultant). I still think they might do more to stifle creativity than inspire it. I still think those plans look really pretty on bookshelves. I still think Greenpeace should protest the number of trees killed each year by producing strategic plans. I still think they make great coffee coasters.

The next time you are in a strategic planning session, start adding up the salaries around the room, just for fun. For example, twenty people X $100/hr/person = $2000/hr. Is that planning session worth $2000 per hour?. That’s a rough estimate and it might be significantly more in many companies with high-salaried executives. It also doesn’t include consultant fees, travel costs, administrative costs, and production costs. If it takes a few days to generate, without even realizing it, a company can spend $100,000 or much more developing a strategic plan. Does that plan even recoup the cost of making it? Are there better things to spend $100,000 on?

I read books about Facebook and Google in the last few weeks, and I realized something. Both companies didn’t seem to spend any time, money, or effort strategic planning when they started. Ideas came first, action second. Where was strategic planning? Ummm…maybe the authors just forgot that part where the founders hired a consulting firm to map out their future and they produced a fancy document that outlined all the steps they would need to take to be extremely successful. Yep, I’m pretty sure the authors just forget that part. Or not.

As I wrote last year:

In our enthusiasm about the next fad in planning, do we forget to actually measure the value in strategic planning itself? How many dollars are wasted each year by planning exercises begrudgingly done by those involved? Does anyone dare ask whether we “Should” be planning and risk being labeled an organizational anarchist?

My questions still stand.

Tim Vanderpyl is a Certified Human Resource Professional (CHRP) with Canada’s largest catholic healthcare organization. He holds a Master of Arts in Leadership from Trinity Western University and is working toward a Doctorate in Strategic Leadership at Regent University.

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The Best Leaders Know Their Company

David Burkus —  March 23, 2012

This is a guest post by Erin Palmer from Bisk Education. Erin works with Villanova University’s online human resources certification programs. Visit Villanova’s resource center for more information about HR, such as an HR director job description. Erin can be reached on Twitter @Erin_E_Palmer.

The most successful leaders possess knowledge, skills and qualities that typically are more complex and far-reaching than the traits their employees bring to their own jobs. Perhaps the most important of these leadership qualities is a deep understanding of the company. No matter what your position is, you owe it to yourself and your future within the organization to know your company.

Wherever you are on the leadership continuum, when you demonstrate that you have a deep and working knowledge of your company, doors will open towards your successful future in leadership. Here are some of the most important things to keep in mind:

Get to Know Your Superiors

When was the last time you interacted with your boss’ boss? Getting to know the management above your immediate supervisor is a great way to advance your career. According to the Harvard Business School, there has been an increase in personnel in the top management structure for many companies. This affords you more opportunities for growth. Your superiors and their superiors possess a broader view of the company and can provide first-hand access to potential new products and/or new assignments. Make a point to interact, both directly and indirectly, with your boss’ boss. Increase your visibility, publicize your accomplishments and continually deliver superior results. Not only will your direct boss take notice, you’ll also be noticed by his or her superiors.

Learn the Story and History of Your Company

Think about the friendships and professional relationships you’ve developed in your lifetime. Each one has a story that goes with it, making the connection stronger and more relevant. We are more motivated and engaged to “stick things out” when we understand the history of a person or organization. Do the same with your company; get to know the history of the business, the story behind the brand, and the deeper reasons why your organization is who it is and why it stands for what it does.

Learn Your Company’s Details

In order to perform to the best of your ability and gain recognition as leadership material, arm yourself with as many company details as possible. Make sure you have the following information about your company: financial condition; customer profiles; mission statement; disciplinary procedures; retirement and health insurance; chain of command; policies on smoking, drugs and alcohol, public statements, and IT acceptable use; grievance procedures; fraternization policy; and contact information for the IT help desk.

Possessing the knowledge and skills necessary to perform your job is only part of a more complex personal brand. Using the tips above can get you noticed by the people in your company that can help you become a more effective leader and move up the corporate ladder.

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The Evolution of HR

Tim Vanderpyl —  March 21, 2012

I have been reading a lot about HR lately, and am a bit perturbed by the negative perception of HR in management writings. Peter Drucker wrote that personnel administrators are preoccupied with “gimmicks” and consistently complain that they lack status. Drucker wrote that almost 60 years ago and many other authors have echoed his assertions in the decades since. Dave Ulrich edited a book a few years back that compiled essays on the future of HR. Just look at some of these essay titles:

“Does Human Resources have a future?” (Jeffrey Pfeffer)

“‘Don’t send me one of those typical human resource people’: A true life adventure story” (Harold Johnson)

“Judge me more by my future than by my past” (Dave Ulrich)

“Human resources in the future: An obstacle or a champion of globalization?” (Vladimir Pucik)

“Is the human resource function neglecting the employees?” (Bruce Ellig)

I would love to say all those titles are outdated, but I am not so sure they are. Has HR actually evolved in the past 15 years?

I think it has. We’ve seen rapid growth in HR being recognized as a legitimate profession over the past couple decades. We’ve seen some exceptional HR leaders be recognized as leaders (without the HR caveat). We’ve seen companies such as SouthWest Airlines flout the importance of their head of HR as being the second in command. We’ve seen legitimate research and journals emerge that study HR practices. I think we still have a ways to go as a profession, but at least we’re not being asked why we’re at the dance in the first place. Now if someone can just teach us how to dance, we’ll be ready to go.

Drucker, P. (1954). The practice of management. New York: Harper Row.

Ulrich, D., Losey, M.R. & Lake, G. (Eds). (1997). Tomorrow’s HR Management: 48 thought leaders call for change. New York: John Wiley & Sons.

Tim Vanderpyl is a Certified Human Resource Professional (CHRP) with Canada’s largest catholic healthcare organization. He holds a Master of Arts in Leadership from Trinity Western University and is working toward a Doctorate in Strategic Leadership at Regent University.

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