Page 392 - Untitled-1

372 SHARED REWARDS

maintain the individual measurement and rewards system. This
promotes individual performance over team performance.

Shared rewards is not a new idea. The Scanlon Plan, a good half century ago,
allowed for incentives for production teams, well before the concept of teams was
even recognized. But this was applied under a much less complex set of condi-
tions. First of all, the entire team reported to the same supervisor. Second, they
were dedicated to a single program. And, third, the measurements were quite
simple. As productivity objectives were met, the group shared in the rewards. In
essence, it was an early type of profit-sharing plan.

So perhaps we can’t apply the Scanlon Plan verbatim to project teams. But, what
about the concept of sharing rewards? Can’t we make that work to our advantage?

Much has been written about teams, but little about how to reward teams.
There are several issues here. In the case where a team has been established
specifically to achieve a goal, rewards can be related to the results. However, more
often, an individual’s time and effort may be split between a direct, line responsi-
bility and partial support of multiple team efforts. This gets more complicated.

The key, of course, is to recognize that the old, individual measurement and
reward process may no longer be suitable for the current work environment. If
rewards are part of a motivation system, this system must be modified to suit the
current environment and to promote the desired results. If the objective of teams
is to achieve improved results from shared contribution and responsibility, then
we need to establish incentives and rewards that foster such behavior.

Trap The reward system, even when designed to recog-
nize the accomplishment of teams, must never forget that
each member of the team is an individual. Each person re-
quires recognition as an individual as well as a team mem-
ber, and each person will have reward needs based on that
person’s specific needs and expectations. While the shared
rewards should recognize shared results, they need not be
cookie-cutter rewards, but rather provide for equal rewards
based on individual preferences.

Caution is advised when we are introducing any changes to the reward system.
Studies of human behavior have shown that people do not want to give up any-
thing that they have gained, as far as compensation and recognition are con-