Comp & Team Participation LO12650

Walter G. Prevalnig (104337.2101@CompuServe.COM)
22 Feb 97 08:55:08 EST

Replying to LO12610 --

This is in reply to Greg Chapman's questions.

IMV when we compensate individuals for personal performance or teams for
team performance we create internal competition that will lead to
suboptimization of the total system. Pay for performance means that my job
is to attain the reward . This detracts from focus on the customer and
long term optimization of thesystem.

Secondly, even if we could accurately isolate individual performance from
the effects of the system, and we cannot, why would we want to. If we
understand the concept of "variation" and know that it is inherent in
everything ( a stable system is made entirely of chance causes) then we
would come to the conclusion that it is far more productive to work upon
optimization of the entire system.

If we agree with the above , metrics shift to system measurements and
compensation aligns with function and relationship within the system.

Something to think about, my best regards,

Walter G., Prevalnig
PREVALNIG & ASSOCIATES "Building Learning Organizations"
104337.2101@compuserve.com

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"Walter G. Prevalnig" <104337.2101@CompuServe.COM>

Learning-org -- An Internet Dialog on Learning Organizations For info: <rkarash@karash.com> -or- <http://world.std.com/~lo/>