Thursday, December 30, 2010

CEO of blind spot: procedural justice management

Keywords: CEO management blind spot program fair management enterprise management staff management there is no doubt that the results of the fair is very important, but should not be overlooked is that we also need to be concerned about the program's fair days ago with a large-scale private enterprise boss chat, listen to his big complaint: "my staff remuneration issues never stingy, just last year the company's average annual bonuses in more than five digits, but how do you lack the staff as a whole seem listless Vitale,. "Are also often hear human resources department manager issued similar complained:" we are the company's wage levels in the industry is high, why employee turnover rate is so high? "

In fact, highly paid necessarily accompanied by high morale, high salaries may not necessarily be able to retain. According to Chile's human resources salary performance Centre published the 2005 Shanghai foreign investment enterprises pay survey report shows that high salaries and high loss rate is proportional to the sometimes. This phenomenon was produced, to a large extent attributable to the program's unfair.

The "trick" and procedural fairness

In accordance with the fair management home Adams, to make your organization members to maintain a high degree of enthusiasm, you must make a fair and reasonable remuneration so that organizations are members of the Organization on each of us is fair. There is no doubt that the results of the fair is important, but should not be overlooked is that we also need to be concerned about the program of the fair.

From the 1970s onwards, many scholars realized; the staff not only care about the fairness of the allocation of the result, but also attaches great importance to the fairness of the administration program. In many cases, the assignments of fairness in fact nothing wrong, but because the employee was not able to participate in the design of the pay system, it is not so very strong satisfaction.

Just like the famous "promiscuous" story, for feeding monkeys of man, the distribution scheme and there is no substantive change, whether it is "playing the field" also "toward the four evening III", he did not because of this change and loss. But for monkeys, with option to reflect the fairness of the process, satisfaction is quite different. Select to provide the effective realization of the "Pareto improvement."

Why pay may and demoralized shadow? why salary increases do not necessarily bring the rate of decline in brain drain? because lack of procedural fairness in the enterprise. For example, the top management often arbitrary act, never seek employees, although pay very high, but the staff feel very depressed, making inanimate. With the passage of time, the outstanding talents will help, high talent initiation wastage is inevitable.

In this regard, particularly the private corporate chiefs there are a lot of mistakes. They tend to pay attention to the fairness of the allocation results, pay attention to the different levels of staff, between staff of different nature of the work, between different productivity among employees seek pay balance, but ignored the pay equity program design, the design of remuneration systems are often unilateral Obscura.

Particularly for knowledge workers, because of their needs at a high level, feelings and needs of belonging, and respectful of the needs, demands more of self-realization, procedural justice, it is much more important. From this perspective, an IT company boss the following puzzles are very well understood: "what's wrong with it? if you give him a high salary or even equity, he just quit. ”

Visible in the current management, how to reflect the program fair is facing a major challenge.

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