Indiv. & Team Compensation LO12671

Rol Fessenden (76234.3636@CompuServe.COM)
23 Feb 97 12:21:15 EST

Replying to LO12635 --

Here is what has worked in one company.

First, change the job description to replace some responsibilities -- or
reset the prorities -- with other responsibilities which clearly spell out
team participation. What is it you want people to do in this new
environment.

Second, identify measures of performance which will be applied to
individuals for their team participation, and also measures for the team's
performance which will be part of the individual's rating.

Third, clearly spell out how measurement data will be collected, and who
will do the individual's rating. It may be a team, and it may be a
functional supervisor.

There are a lot of ways to conduct each of these steps. None are
particularly easy. Much depends on the culture of the organization, and
many organizations are not yet prepared for this step.

The focus on compensation in the original request may indicate a
misalignment of goals. The purpose of such a change is to develop an
organization that more effectively meets its goals. If the focus is on
compensation, and not on gioal achievement, there is little chance the
organization will meet its goals through this change in methodology.

In many organizations that have successfully made this transition, the
functional organizations remain, and team members are still members of
their functional organization. Teams do not replace functional expertise,
they supplement it. Thus there is no need to throw out what exists --
functioanl organizations -- instead the need is to supplement it in a way
that is enriching, and that recognizes the inter-functional dependencies.

-- 

Rol Fessenden 76234.3636@compuserve.com

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