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At the best of times, management mistakes can cost an organization valuable time and money. During difficult economic times, the results can be disastrous.
In my Psychology Today article, Management Rewired: What Brain Science Can Tell Us About Leadership I said, "Research on how the human brain can affect behaviors--called neuroscience, or the popular term, brain science--has yet to be fully appreciated by leaders of organizations. That knowledge could have a significant impact on how leaders are trained and what they do. In the past few decades, scientists have gained new and more accurate scientific views of human behavior, studying the human brain. Organizational change that takes into account the physiological nature of the brain and ways that predisposes people to resist cooperate with leaders can be extremely useful for leaders."
It appears as though this management lack of knowledge of brain functioning and human performance may account for dysfunctional management practices.
Aubrey C. Daniels, one of the world's foremost authorities on management and human performance, outlines management practices that are destructive to organizations during boom or bust times, in his outstanding book, Oops! 13 Management Practices That Waste Time and Money (and what to do instead).
Daniels points out that few managers look for behavioral data to affect employee performance because most manager know very little about the science of behavior and recent brain science or neuroscience, and very few business programs in universities teach it. He says another reason why organizations are fundamentally flawed from a behavioral perspective is that they were designed by those people--those with financial expertise--who have only one purpose in mind, to make money. He says that "how employees are paid, appraised, rewarded, and recognized have financial implications," but when designed without an understanding of human behavior, you can have get contrary results. For example, there is a mountain of research to show that employees are not primarily motivated by financial rewards over the long term, yet we continue to use that as a management motivational strategy.
Daniels identifies the following 13 managerial strategies that no only don't work, but are destructive to organizations and the people in them, what's wrong with them and what to do about it:
- Employee of the Month [and most other forms of recognition and reward] What's wrong with it: It focuses attention on one employee, but most work is a team effort. What to do about it: Acknowledge achievement for everyone the moment it happens.
- Stretch Goals. What's wrong with it: Employees end up overwhelmed and frustrated if they fail to reach aggressive goals. What to do about it: Set achievable short term goals and chart employee progress month by month.
- Performance Appraisal. What's wrong with it: It's hated by both managers and employees; it's done once a year and then appraisal is ignored for the rest of the year; it's not motivational. What to do about it: Give immediate management feedback to employees for success or failure.
- Ranking employees. What's wrong with it: Even if the gap between employees is small some end up at the top and others at the bottom. The ones at the bottom feel like failures.
- Rewarding Things a Dead Man Can Do (rewarding negatives). What's wrong with it: If you reward employees for zero defects, the sure way to meet that target is to try nothing that has a chance of failing, or falling short. What to do about it: reward every success, not matter how small.
- Salary and Hourly Pay (merit pay, automatic bonuses). What's wrong with it: Once a raise is given, it is permanent, but it's unlikely to continue to motivate and bonuses are viewed as entitlements, even if performance is less than satisfactory. What to do about it: Pay for performance or revenue sharing that must be earned each year.
- You did a good job, but… (good news-bad news feedback). What's wrong with it: "Yes, but," is not a motivator, but a punisher, and seen by employees as management "nagging." What to do about it: praise and criticism should come in two separate conversations.
- The Sandwich [Criticism sandwiched between two positive statements]. What's wrong with it: People naturally place more focus on negative messages than positive, so the focus on the positive is lost. What to do about it: If management needs to confront an employee about an issue, do so in a straight forward manner, with no sugar-coating.
- Overvaluing Smart, Talented People (you don't buy people's brains, you buy their behavior). What's wrong with it: Management focuses on resumes and IQ not performance. Provide growth opportunities for all employees and give them opportunities to shine.
- The Budget Process. What's wrong with it: Tedious, time-consuming divvying up of resources creates an expectation for everyone to want more. What to do about it: Budge according to what each part of the organization can prove they need to get results.
- Promoting People No One Likes. What's wrong with it: employees perform out of fear rather than commitment and loyalty. What to do about it: Promote people who are liked and have superior interpersonal and emotional intelligence abilities.
- Downsizing. What's wrong with it: Many things including the stress placed on those employees that remain, and the costs of new hires after the recovery. What to do about it: Find more creative ways of costs savings, done by many companies.
- Mergers, Acquisitions, And Other Forms of Reorganizing. What's wrong with it: Decisions are made mostly on financial terms, with little focus on integrating corporate cultures and declining performance. What to do about it: Get teams of people together to manage the integration over time, rather than by management edict.
Daniels presents some very controversial remedies for what ails our current organizations, based on some very sound brain science and human behavior research, that should draw the attention of every leader.
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