Tag Archives: performance reviews

HR/Security Hot Topic: Should you watch your employee’s personal Internet activities? (Facebook, MySpace, Twitter, etc.)

28 Thursday Oct 2010

Posted by in Branding, Business, Communication, Consulting, Crisis Management, Customer Service, Employee Retention, Ethics, Government Regulation, Honor, Human Resources, Information Technology, Internet, Management Practices, Pride, Privacy, Public Relations, Re-Imagine!, Recreation, Relationships, Respect, Rotary, SEO, Social Interactive Media (SIM), Social Media Relations, Violence in the Workplace, Website

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by Paul Kiser
USA PDT  [Twitter: ] [Facebook] [LinkedIn] [Skype:kiserrotary or 775.624.5679]

Paul Kiser

One of the hottest topics in the world of employment is whether or not an employer should monitor his or her Internet activities. This is a subject I’ve written about before, but it is an issue that is still emerging and has yet to have any significant case-law to provide guidance to employers.

It is well-known that a large number of employers perform a ‘Google’ search on the Internet before they hire an applicant, but now companies are feeling the need to continue to monitor an employee’s Internet activities after hire. Many experts, especially those involved in employee liability prevention support an employer’s right to monitor an employee’s Internet activities even when those activities occur off-duty and offsite. The logic is that it is prudent to aware of anything an employee might say or do that could embarrass the employer, or any indication that the employee might take an action that might involve the company and its facilities.

These are rational arguments, but I believe that monitoring an employee’s activities is opening the door to bigger liability issues. Sound odd? Here’s the scenario I see happening in three Acts.

Should the Employer be Big Brother?

Act One: A busy-body employer or manager casually checks his or her employee’s Facebook, MySpace, and/or Twitter accounts. The employer might even do a Google search on an employee from time to time. When the employer or manager finds something that they see as objectionable they confront the guilty employee and take the proper action. It becomes known throughout the company (and the employee’s family) that the employer monitors its employee’s personal Internet activity.

Act Two: An employee has been reprimanded for content they have posted on the Internet. Six months later the same employee posts information on the Internet that he  is considering suicide and describes in detail how he is going to kill himself. Two weeks later the employee carries out the suicide as described. The family is aware the employer monitors the employee’s Internet activity and sues the employer claiming that the employer should have reasonably been aware of the planned suicide and taken action.

Act Three: Companies find themselves with two polar opposite choices. Either the company does not monitor their employee’s Internet activities or the company assigns resources to constantly monitor the Internet on every employee to insure they capture any relevant data for which the company should take action.

I was trained in Human Resources under the policy that what the employee did on her or his own time was off-limits to the employer unless it had a direct impact the job performance. That policy has had to be adjusted in a world where work and off-duty time can often be hard to differentiate, and where drug testing, researching credit scores and background checks have become standard operating procedure for many companies. However, an employee’s personal Internet activities is almost impossible to track in a society that is increasing involved in hours of daily online social networking. The question is whether an employer wants to be liable for monitoring its employees 24/7/365 and being held responsible for taking the appropriate action, or whether the employer would be better served by not being sucked into liability issues that can be avoided by simply not playing the role of Big Brother ?

I know which strategy I would recommend to my clients.

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Pay It Middle: The Balance between Too Much and Too Little Compensation

01 Tuesday Jun 2010

Posted by in 2020 Enterprise Technologies, Communication, Consulting, Customer Relations, Customer Service, Employee Retention, Human Resources, Lessons of Life, Management Practices, Public Relations, Relationships, Rotary, Science, Social Media Relations, Violence in the Workplace, Women

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by Paul Kiser [Twitter: ] [Facebook] [LinkedIn] [Skype: kiserrotary or 775.624.5679]

Yesterday I wrote an article about research that shows that too much compensation actually makes performance worse.  A fellow Rotarian (thanks Skip!) sent me a link to a great video by RSA Animate that illustrates the issue and the research.  If you haven’t seen it take a look:

Dan Pink: Drive and Purpose YouTube Video

Paul Kiser - CEO 2020 Enterprise Technologies

The article is here: (Mega Executive Pay Leads to Poor Performance)

But the question is why does mega pay negatively impact performance? Here’s my theory.

The Psychology of Making Too Much Money – Barney and the Manna ATM
A man named Barney goes to withdraw $500 from his local ATM. Instead he is given $5,000. When Barney checks his balance it shows that no money was withdrawn from his account. He could go to the bank and let them know that he thinks the ATM has made a mistake but he doesn’t. Initially he is afraid that someone will discover the mistake and take the money away, but no one says anything and eventually Barney’s fear eases. Each week he goes back to the same ATM for another withdrawal and the same thing occurs. He tries other ATM’s, but he learns that it is just this one that gives him money for nothing. Soon he has built a life around getting $5,000 every week from this ATM. His fear has now subsided, but he feels a little guilty, but also a little evil.

One evening Barney is in a rush for the money and pushes a woman out-of-the-way to make his transaction. The woman is irritated but stands to the side while Barney enters in the information. When the money comes out she notices that he received $5,000 but only requested $500. She points this out to him and he denies it. She knows what she saw and she won’t be convinced. Barney offers to give her half of the money and she refuses the offer. She says she is going to tell the bank….What will Barney do to keep his lifestyle?

When examining behavior by executives and managers in the banking crisis of 2007-09, the answer to that question: “What will a man do to keep his lifestyle?” (I’m not being sexist, just accurate) is answered by the unethical business decisions that led to massive financial failures in 2008-09. Pay might purchase a person’s talents for an organization, but at a certain point, too much compensation begins to purchase the person’s ethical compass. Good decision-making is replaced by self-preservation and the future of the business is sacrificed for the financials of the current quarter.

The lesson is that too much compensation becomes a trap that will often lead to unethical decisions. Mega pay not only doesn’t improve performance, it lures executives to the dark side.

Maslow's Hierarchy of Needs

The Psychology of Making Too Little Money – Maslow’s Hierarchy of Needs
The other side of the issue is paying too little. In 1943, a researcher named Abraham Maslow published a paper titled: A Theory of Human Motivation. The work was based on examining successful people and their living situations. From his research he concluded that there is a Hierarchy of Needs that must be met in steps, with each step supporting the next level.

In Maslow’s paper he proposes that humans must meet their basic survival needs that contribute to sustaining life as the base level of life; however, security and safety needs are the next level. All levels above that (Belonging, Esteem, and finally, Self-Actualization) are dependent on the needs of the first two levels being met.

This is the key. Employers that fail to compensate their team to the point of a living wage should expect their staff to be in a constant state of crisis and that means they cannot expect these employees to be creative and innovative in dealing with the common issues that might arise with the customer. An underpaid employee will be in a constant state of personal crisis that will lead to many issues including reliability, focus, and attitude.

The question is how much is a living wage? That takes an individual examination of the job, the market, and the economy of the region. As the video suggests, you should pay enough to take money off the table as an issue.

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Mega Executive Pay Leads to Poorer Performance

31 Monday May 2010

Posted by in 2020 Enterprise Technologies, Branding, Customer Relations, Human Resources, Management Practices, Public Relations, Re-Imagine!, Rotary, Science, Social Media Relations, Women

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by Paul Kiser [Twitter: ] [Facebook] [LinkedIn] [Skype: kiserrotary or 775.624.5679]

Paul Kiser - CEO 2020 Enterprise Technologies

Mega executive pay and bonuses do not work. Mega executive pay and bonuses do not work. Mega executive pay and bonues do not work. Got it? No? Then watch this RSA Animate video by theRSAorg posted on YouTube featuring Dan Pink discussing pay and motivation:

Dan Pink: Drive and Purpose YouTube Video

In research and the real world the idea that mega pay makes for mega profit has been proven wrong over and over, yet we still have corporate directors handing out millions of dollars to single individuals…even when that person has led the company to failure. Why? Let’s go back to cognitive dissonance.

We are conditioned to believe that the more we pay, the better the quality. That is drilled into us. Value is determined by how much money we pay for a product or service. How could it possibly be different in paying an executive? So when MIT research, or Goldman Sachs, or BP, or Massey Energy, or General Motors , or Washington Mutual, or Merrill Lynch (the list goes on) demonstrate that mega pay does not equal mega performance…or even good performance, then people overlook the evidence and begin to use irrational logic to justify mega executive pay. Earlier in May, Bill Virgin wrote a piece for The News Tribune in Tacoma, WA to justify corporate exec pay where he said:

“Corporate CEOs have employees, labor unions, investors, customers and government regulators to worry about.”

One might think that CEO’s were alone on a white horse fighting off evil with a shiny silver sword according to Mr. Virgin.  The fact is that often the workers under the CEO have a much more stressful environment and in some cases lives hang in the balance, so the CEO’s typical responsibilities fail to be a good reason to pay them hundreds of times more than the workers under them.

The surprise is how little is written in support of mega pay for executives. I believe this is due to the people who make the decision (corporate directors) having no reason to adopt executive pay policies that are based in common sense and every reason to maintain the status quo, but they also have no reason to justify their reasons to anyone.  Massive pay means the appearance of importance and if you are the person handing out the massive pay you are even more important. From a corporate director’s boardroom chair the investors aren’t revolting and the customers are still buying, and Republicans are still protecting the practice, so there is no issue to discuss publicly.

But the practice has to change. Not only is it ineffective, it is immoral. Many years ago I worked in a retail store and I learned that the corporate CEO was making $4 million per year and each store was only making an average of less than $250,000 net profit per year. That meant that the work of thousands of employees in over 16 stores were dedicated to providing the salary of one person…and I can tell you, he wasn’t worth it.

If you watched the Dan Pink video you’ve learned that human motivation is based on many factors. I think the important thing to remember is that ‘satisfaction‘ is the most fleeting of all our emotions. Money is junk food in the world of motivation and performance. Too much just makes you sick.

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Relationships and Thin Slicing: Why the Other Person Knows What You’re Really Thinking

28 Friday May 2010

Posted by in 2020 Enterprise Technologies, Book Review, Branding, Communication, Customer Relations, Human Resources, Lessons of Life, Management Practices, Membership Retention, parenting, Public Relations, Relationships, Rotary, Science, Social Media Relations, The Tipping Point, Violence in the Workplace

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by Paul Kiser [Twitter: ] [Facebook] [LinkedIn] [Skype: kiserrotary or 775.624.5679]

Paul Kiser - CEO of Enterprise Technologies, inc.

You’ve been warned about ‘this person’ and now you’re being introduced to them. You smile and shake his hand and say, “nice to meet you.” Visibly, you are polite and friendly; however, inside your hoping to be able to move on because even though you’ve never met him before you are preconditioned to not like him. The introduction ends and you move on believing that went things went smoothly. He walks away knowing that you dislike him and he begins to form a negative impression of you. In less than five seconds you have cemented a negative relationship…and you didn’t even know it. What happened?

Malcolm Gladwell

In Malcolm Gladwell’s book, Blink: The Power of Thinking Without Thinking, it is called it thin-slicing and it is based on solid research. Gladwell uses many examples of how the human brain picks up seemingly unseen and unheard clues and can accurately identify what is going on in a given situation. In one example, researcher John Gottman and his team coded conversations between married couples using 14 emotional identifiers (1=contempt, 2=anger, etc.) and found that they could accurately predict whether or not the couple was heading for a divorce by the subtle clues that betrayed the inner thoughts and attitudes of each person. Most of these signals lasted a second or less, but the signal clearly indicated the inner feelings of the person and the pattern of their relationship.

Gladwell argues that in a thin-slice experience we usually do not know what we know, nor why we know it, but the evidence is conclusive, we do know it. It is often described as a ‘feeling’ and people usually cannot explain it to others, so it is usually dismissed as being oversensitive. Gladwell‘s research suggests that the feeling is real and that our unconscious mind is the source of the analysis that creates a tangible, and accurate feeling and/or assessment of the situation.

Conversations Are Never Just Casual

Based on the information in Blink one can conclude that when someone has a dislike for someone, or when people discuss someone else behind their back, the attitudes felt or expressed privately will be exposed in subtle hints the next time we meet the subject of the gossip. We are taught as children to not gossip about others, which was a valuable lesson based on what we now know; however, in the business world people often discuss work performance of subordinates with their peers or superiors. Those discussions then shape our attitudes about the subordinate, which are then revealed in our next interaction with the worker. The same can be said of any relationship, whether it be a superior/subordinate, peer/peer, Club member/member, parent/child, spouse/spouse, or any interaction between two people. Simply put, strong attitudes and opinions about another person can and will be read by that person at the next meeting.

But what is worse is once a negative relationship is formed it is almost impossible to revert it to a positive relationship. Gladwell says that if a person has contempt or other negative attitudes towards someone, even a kind or reconciliatory gesture will be misread as manipulation or motivated by a hidden agenda. That idea is reinforced by the theory of cognitive dissonance, which suggests that once we have an opinion or belief about something we will reject evidence that contradicts our opinion or belief and will even go so far as to manufacture evidence or examples to support our version of the truth.

Do We Have to Like Everyone?
Certainly we don’t have to have a positive relationship with everyone, but negative relationships tend to expend more of our energy and time. This is especially true for people in positions of leadership. Consider the time spent on emails, meetings, phone calls, and emotional stress that involve interactions with people who we have an adversarial relationship versus the support and positive reinforcement we receive through friendly relationships. It is obvious that a negative relationship that is based on our preconditioning to dislike them is not only counterproductive, but also an unnecessary waste of time and emotion.

The first step in avoiding the downward spiral of negative relationships is to recognize that our internal dislike for someone is not hidden from that person. Our actions, behaviors, and responses will be picked up and will, in turn, dictate their response to us. Gossip, whether it is causally done with friends, or professionally sanctioned as part of ‘assessment’ of subordinates is dangerous to our relationship with that person and will ultimately make our life more difficult. Most of us were taught at some point to never say anything about anyone unless you are prepared to say it to their face….it is a good rule in the home, at work, or anywhere else.

Rotary's Four-Way Test

Rotary has a Four-Way Test that is a guide to any relationship. It is meant to take Rotarians to a higher standard in business and in life. The ‘test’ is as follows:

  • First, is it the Truth?
  • Second, is it fair to all concerned?
  • Third, will it build goodwill and better friendships?
  • Fourth, will it be beneficial to all concerned?

Great words that can help us to build great relationships…even when sliced thin.

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Playing the Whole Game

15 Monday Mar 2010

Posted by in Human Resources, Information Technology, Management Practices, Public Relations, Social Interactive Media (SIM)

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I’m not a big sports fan.  I tend to skim through games and watch for a few minutes, but I don’t live for sports.  Still, I watch enough to qualify for my chromosomes and I do understand the strategies used in most sports.

On Saturday I caught bits of the Ohio State vs. Illinois basketball game.  It was a close game toward the end and Ohio St. did something that I really like…they played the whole game.  Twice Ohio State was behind by two points and they had several seconds left.  If they scored too soon it would give Illinois the opportunity bring the ball back down court and win the game.

The strategy many teams have in this situation is to stall and go for the last shot.  But Ohio State didn’t follow the traditional strategy.  They shot quickly and gave Illinois the opportunity to win.  The irony is that Illinois did play for the last shot and in both situations they failed.  In the end Ohio State won.

I was happy for two reasons.  First, I was happy to see Illinois lose because the Illini (players and fans) are known for their trash talk. They think it is part of the game.  The second reason is Ohio State won by playing the entire game.  They didn’t stall and try to win in a last second shot for victory.  They tied the game and then played defense.

Go Ohio State!

I’ve never understood the logic of the stall tactic.  I know the only thing that counts is the score when the clock reads 00:00, but the measure of a team is what they can do for the whole game, not just up to the final 40 seconds and then stop playing until the last three seconds.  What type of message does that send?

The Whole Game in Business
I see this attitude creep over into the business world.  I was once told about a manager for a major package delivery company.  He had a budget for labor and equipment.  The manager would get a significant bonus if he was under budget on his labor and equipment, so he deliberately over worked his salaried supervisors, worked understaffed with his hourly employees, and didn’t purchase the needed equipment for the staff to do their jobs.  He ‘won the game’ and got his bonus, but everyone hated working for him.

Some might think that this misuse of people and resources will eventually be discovered.  It is not.  Employees don’t like ratting on their boss because management often fails to act in situations where the manager is a success on paper and sometimes it is the employee that suffers for speaking out.  To my knowledge this manager is still in his position and nothing has changed in five years or more. He might have even been promoted by now.

This is one of the reasons why I don’t like most performance evaluation tools. They may be based on ‘quantifiable’ measurements, but quantifying doesn’t equate to fairness.  I don’t oppose goal setting, but business is and should be a dynamic process.  Goals and performance measures make bean counters happy, but the can often be manipulated to work contrary to the needs of the employees and/or customers.

The focus of any business should be to play the whole game and not work for the score at the end of the ‘quarter’.  This involves Management By Walking Around (MBWA) and letting small groups in the company experiment with new ideas (Skunk Works).  If this sounds like old Tom Peters stuff, it is, but it’s GOOD old Tom Peters stuff.

Tom Peters

I read Tom Peters first book, In Search of Excellence, soon after it was published in 1982, and I have been a disciple of his rants for over 25 years. Of course, you don’t win many corporate popularity contests when you’re guiding principles are reflected by a rejection of the status quo, but I’ve yet to be proven wrong….just fired or let go. I’ve been dusting off some of his books and scanning them again. I believe that almost everything a business person needs to be successful can be found in Tom Peters writings.

We’re facing a new business environment and it’s time we rejected the habits we fell into during the last 10 years.  We can start by going back to the basic question:  What does the customer need and how can we provide what they want, before they want it, and better than they expect?  Get that question right and everything else is easy.

Go Ohio State!

Management by Coup 1: Eliminate Employee Evaluations

11 Thursday Mar 2010

Posted by in Human Resources, Management Practices, Re-Imagine!, Rotary, Tom Peters

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by Paul Kiser

Paul Kiser - CEO of Enterprise Technologies, inc.

I have worked many years in Human Resources and at one time my job was to help managers write employee job standards and performance evaluation tools. I would like to now publicly apologize for playing a role in the dark side of management.

HR people can give you dozens of reasons why employee evaluations are absolutely necessary. You need to give the employee feedback, you need to let the employee know your expectations, evaluations are documentation of the employee performance, documentation is needed for disciplinary actions, blah, blah, blah, blah…it’s all BS. Here are four myths about employee evaluations:

Myth #1: Employees need periodic feedback
WRONG! Employees need constant feedback. Respectable HR people will tell you that there should be nothing discussed during the employee evaluation that they were not already aware of; however, in actual practice the employee evaluation is the moment many managers use the GOTCHA Management Technique by dredging up hearsay and listing new expectations that the employee has never heard before the evaluation.

Tom Peters discussed a technique known as MBWA or Management by Walking Around. The basic idea is the manager stops wasting time sitting in an office and spends it by interacting with his or her employees and customers. This brilliant 21st Century management technique was first discussed in the book, In Search of Excellence by Tom Peters and Robert H. Waterman in 1982! For over 25 years managers have been told to get out of her or his office to manage and yet some people still don’t get it.

Myth #2:  Evaluations are needed to support disciplinary action
While some managers use the evaluation as a GOTCHA moment, others will minimize a negative performance issue in order to maintain a positive working relationship; therefore, an employee’s evaluation often fails to support disciplinary action taken against them.  Time after time an employee’s lawyer seizes on a lack of evidence in the employee’s evaluation to justify disciplinary action by the employer.  A manager is better off having written documentation of a problem at the time of the incident rather than trying to use the evaluation to document an issue regarding the employee’s performance.

Myth #3:  Evaluations are needed to determine pay increases.
Pay increases need to be fair and equitable, but many organizations find that withholding a pay increase based on performance causes more potential legal problems than is solves, and punishment destroys employee morale rather than improves an individual’s performance.  Pay for performance was a novel idea that never delivered on the promises of improved productivity by the HR department.

Myth #4:  If a manager is not required to do periodic employee evaluations they will never give the employee the information they need to excel at their job.
An evaluation does not a good manager make!  If a manager is not giving constant feedback to their team, then what good are they?

Life Without Evaluations
I know it seems unthinkable for some, but evaluations are an HR imposed control system that is completely unnecessary.  In fact, evaluations do more harm to teamwork because they create a formal “Us vs Them” situation between the manager and the worker.  Evaluations can make a manager feel superior and that is not a good foundations for positive employee relations.

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