In a widely distributed article appearing in the Academy of Management Journal, management professor Steven Kerr observed the following:
Numerous examples exist of reward systems that are fouled up in that the types of behavior rewarded are those which the rewarder is trying to discourage, while the behavior desired is not being rewarded at all.”
The article was originally published in 1975, but the paradox now known as Kerr’s Folly continues to confound organizations. Companies try to foster teamwork, but then fail to notice that their winner-take-all incentive programs encourage employees to compete against each other instead.
Manufacturers profess to value quality, while paying employees by the quantity of items they produce. Corporate boards, charged with ensuring proper governance, continue to give CEOs big bonuses for their whatever-it-takes efforts in meeting Wall Street estimates. Although the foolishness seems obvious, organizations remain mystified as to why they’re not getting the results they desire.
Kerr’s argument applies to the way we reward employees. But I wonder if the folly is also evident in the methods we use to punish workers.
Consider this example: Because they want employees to show up on time, many companies dole out a point or demerit whenever an employee is tardy. If you get twelve points in a year, let’s say, you’re in big trouble. Why, these companies wonder, are so many workers late eleven times a year?
But the real problem with punishment is its association with discipline.
The purpose of discipline is to improve employee behavior. With that objective, discipline equates to coaching. However, add a sanction and discipline becomes punishment. Then, what started as a way to eliminate undesirable behavior (getting someone to stop being late) becomes a process of eliminating the employee altogether (twelve times and you’re out). Seems like pure folly to me.
So, with apologies to Steven Kerr, I’d like to suggest the following:
Punishment systems are often fouled up in that the behavior we’re trying to discourage is often allowed to occur in excess, while the employees we’re trying to save from themselves are led down the path to termination.”
The remedy for Kerr’s Folly is obvious: reward the behavior you want. The cure for faulty discipline is equally clear: take the punishment out of discipline. Only then will we stop the madness.
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George Brymer is author of Vital Integrities and the creator of The Leading from the Heart Workshop®.
He can be reached at [email protected].
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