LeanEssays: Team Compensation

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Recommended by: Balaji Pasumarthy

This a very good article on team compensation. How does one differentiate the best in the team from the worst? First of all is it a good idea to do that? Does ranking team members increase or decrease performance? This is a wonderful article counter to the typical belief that rewards increases performance. This extract from this article is a prelude on what to expect: W Edwards Deming, wrote that un-measurable damage is created by ranking people, merit systems, and incentive pay. Deming believed that every business is a system and the performance of individuals is largely the result of the way the system operates. In his view, the system causes 80% of the problems in a business, and the system is management’s responsibility. He wrote that using exhortations and incentives to get individuals to solve management problems simply doesn’t work. Deming opposed ranking because it destroys pride in workmanship, and merit raises because they address the symptoms, rather than the causes, of problems. Recommend this article to Entrepreneurs and Managers looking to get the best out of their teams.

The New Venture team had done an incredible job, and they knew it. Increment by increment they had built a new software product, and when the deadline came, everything that had to be operational was working flawlessly. The division vice president thanked everyone who had contributed to the effort at an afternoon celebration, and the team members congratulated each other as they relived some of the more harrowing moments of the last six months.


The next day the team’s Scrum Master was catching up on long-ignored e-mail when Dave, the development manager, called. “Say Sue,” he said, “Great job your team did! I’ve been waiting for the product launch before I bothered you with this, but the appraisal deadline is next week. I need your evaluation of each team member. And if yo.....


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