Managers can rely on the carrot or the stick to reward or punish employees. Unfortunately, most managers don’t think much about how they reward or punish. In dozens of management development courses I’ve taught, I’ve asked managers what they use to motivate their employees. Most say money. When asked to reflect more on employee motivations, they often find that they haven’t really given much thought to what motivates employees, let alone how they do it, as managers.

Few have given much thought to the fact that the wrong type of reward can have the opposite effect. I always share with them the story of the top sales representative for a large pharmaceutical company I used to work for. He was the best the company had. Not only did they reward him with bonuses, but they also had many award trips that reps could earn quarterly, semi-annually, and annually. He pretty much won them all! He was winning trips to exotic places and exciting cities across the country. At the time I was working in a sales operations position. I visited him to learn more about his success. During our visit I was surprised when he told me how unhappy he was with the company and that he planned to leave.

I soon knew why. He had a large territory and was constantly “on the road.” He also had several young children. While he realized that he had to travel to be successful, he did not appreciate the fact that almost every 3-4 months the company expected him to take these luxury trips, which further alienated him from his family. He asked, why couldn’t they just give him the money or award him with reward points, instead of forcing him away from his family? Management had never considered whether the type of rewards we offered really motivated those who received them. The same is true, if not more so, when it comes to punishment. When working on case studies dealing with difficult employees, attendees of my leadership development programs usually respond first by simply saying “fire them.” They also talk about putting them on “performance improvement plans” or other types of punishment. Few have given serious thought to the type of punishment or the way in which punishment is applied and whether it has an impact on improving behavior to promote the type of organizational behavior desired in the future.

In a study designed to discover whether the way managers apply punishment has a positive impact on behavior within organizations, Ball, Revino and Sims showed that “punishment can positively influence the subsequent behaviors of subordinates (and prevent negative behaviors) if the punishment is applied in a particular way “(1994, p. 314). They found that positive results occurred when the employee perceived that the punishment was fair and “comparable to the crime” he committed and “consistent with what others have received” for similar offenses (p. 315). They also found that employees felt the punishment was fairer and more consistent, if they had any involvement in the process (p. 315). Just as the representative in my example above wanted information on how he was rewarded, employees are more motivated by punishment if they are involved in the decision-making process regarding punishment. It may seem unreasonable to involve an employee in this discussion; after all, they are being punished. However, his study shows that “people with a strong belief in a just world saw punishment as more constructive and as something that gave them more control” (p. 316).

Furthermore, individuals who perceive the world as unfair and where they have little control over events “perceived the punishment process as less constructive and less control, and perceived the punishment imposed as more severe” (p. 316). By involving the employee in the discussion about the reasons for punishment and the standards for such punishment, the manager is building an environment that the employee feels is fair and equitable and where he / she is involved in the process.

The implications of this study are important. Just as giving a reward is designed to motivate or encourage positive behavior; The ultimate goal of punishment is to change or discourage negative behavior. Therefore, a manager must consider that the results of this study are really effective when applying the punishment. First, the punishment must be seen as fair and just. To be seen as fair, there must be consistency in who is punished and why throughout the organization. In addition, the proposed punishment must be consistent with the punishment given in the past and not disproportionate to the crime. Next, the employee must feel that he has some control over what is happening to him. Therefore, they should strike up a conversation about action and punishment. The manager should take more time to ensure that he “influences the subordinate’s interpretation of the event by highlighting his positive and constructive characteristics and clearly explaining and justifying the punishment imposed” (p. 316).

This engages the employee and helps him perceive that he has control over his future if he changes certain behaviors. All of this helps ensure that punishment is applied in a way that improves organizational behavior and citizenship and is not perceived as a “big stick” in the hand of a tyrannical manager.

References:

Ball, GA, Treviño, LK and Sims, HP, (1994). Just and unjust punishment: influences on the performance and citizenship of subordinates. Journal of the Academy of Administration. Flight. 37, no. 2, 299-322.