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The Work Team That Fights Over Who Gets Credit October 31, 2012

Posted by Tim Rodgers in International management, Management & leadership, Organizational dynamics.
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Apparently there are companies that have structured their salary administration systems to emphasize and reward overall team performance instead of individual performance. I admire the effort. Collaboration and teamwork are obviously things we should encourage. I can’t imagine a business environment where some degree of cooperation isn’t necessary.

However, it’s been my experience that people are inherently competitive. Regardless of how well or how willingly they cooperate, people compare their performance to others in the team, and they hope (and expect?) to receive recognition and rewards consistent with their perceived performance. When those rewards come from a pool that’s fixed in size, that leads to in-fighting: de-valuing the work of others, claiming credit for the team’s successes, and finding scapegoats for the problems and failures.

What can managers do to minimize the toxicity of competitiveness within the organization?

1. Performance appraisal systems typically require managers to differentiate and value the specific contributions of each person. That means each person’s objectives should be written in a way that enables both the manager and the employee to evaluate the employee’s performance independently from the rest of the team.

2. Managers have to be actively engaged with the team to know what’s really going on, who’s doing what work, and who’s enabling team success. You can’t expect everyone in the team to be a reliable reporter of events, and you can’t wait until the annual appraisal to figure out what happened.

3. Managers need to reinforce the message that a mix of individual and collaborative work is required for team success, and therefore teamwork will be one of the performance characteristics that will be evaluated for each person. If it’s possible within the constraints of the organization’s compensation system, each person’s salary increase and/or annual bonus should be partially contingent on the team’s performance (i.e., achieving some goal).

Note that it’s still possible that a team will fail despite the selfless efforts of some or all of the individuals in the team. The seriousness of the team failure and impact to the business will determine whether rewards based on the collaborative effort still make sense.

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