Wednesday, October 29, 2008

Elections and the Economy – scare tactics and employee performance

I got an email yesterday that still has me a little upset. It’s allegedly written by the CEO of a large company, containing a memo he sent out to all of his employees about the upcoming election. He’s encouraging recipients to send the same memo to their employees as well.

I admit, I was curious and read on. The lengthy memo went into great detail about why employees should be concerned about a tax policy that makes their bosses pay more – it could cost them their jobs. The content deteriorated from there – significantly.

After a few deep breaths to get my blood pressure back under control, I thought about the message we send to our staff when we use scare tactics to try to change their behavior – and there are plenty of scare tactics on any side of the election and the economic issues being debated today.

One study, reported in an article titled “Fear as a strategy: effects and impact within the organization,” (Journal of European Industrial Training, 1998), found that “the use of punishment and fear in the organizational setting has proved to be ineffective and undesirable. Managers must try to create an environment and climate where employees can express their full potential and respond to difficult challenges by letting go of fear of failure, fear of change, or fear of risk taking.”

What does work?

Creating an environment that recognizes the value of the individual employee to the organization, not just the leadership or top management.

Investing in employees by giving them tools to learn and grow, to achieve their potential or climb a career ladder within your organization.

MyInnerView, in collaboration with the University of Minnesota and others found five “interrelated and predictive domains” of focus for providers:
  • Consumer (resident and family) satisfaction (do consumers receive from frontline employees the level of care and service they expect, or more?)
  • Employee satisfaction (Do employees feel they are heard, respected and valued?)
  • Workforce stability (Does the company have programs in place that foster the retention of the best and brightest employees?)
  • Clinical outcomes (Are problems quickly identified and addressed appropriately? Do frontline staff know what to report, as well as when, how and to whom?)
  • Regulatory performance (Is compliance in all areas of the program a key focus for all staff?)

Every successful company will have plans, approaches and programs in place in each of these five areas. And they won’t be based on using fear as a management technique.

3 comments:

Anonymous said...

Politics are personal. Your insight may not be the same as others. Scare tactics are not desirable, but the manager may be talking about a true reality. If taxes go up, employees may be laid-off to cover the increases. Someone has to pay - unfortunately. Companies can only operate at a certain level with acceptable profits to pay the bills. I didn't think this segue was appropriate, even though you had very good comments about the desirability of supporting employees to maintain acceptable and quality services.

Sharon K. Brothers, MSW said...

Thanks for your comment and your perspective. You're correct to say that politics are personal - all the more reason why managers should not use political beliefs- yours or mine - as a tactic to try to change employee behavior or opinions. It's a great discussion, no matter what your personal political perspective. Thanks for joining in.

bizowner said...

I would have liked to read the entire article. I suspect I would have agreed with that manager. I already know which jobs will be eliminated with an increase in taxes for our company. We need a margin to remain in business. The employees that show flexibility, willingness to do different jobs and work different shifts with a positive customer service attitude are those that will stay. We also tell our employees this. Politics absolutely impacts business. While some people may not approve of scare tactics, I do support the manager's intent.