Progress Check

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NAER

Applying Recognition Systems

Table of Contents

PLACEHOLDER ONLY

Page

Purpose ............................................................................................................ii

Learning Objectives ..........................................................................................ii

Introduction – Strategic Planning & Measurement .......................................... 1

Setting the Stage .................................................................................................. 3

Assessment ........................................................................................................ 17

Exercise – Current State Assessment ........................................................... 21

Exercise – SWOT – Current State Assessment ............................................ 24

Benchmarking ................................................................................................ 27

Memory Maker – Best Practices White Paper............................................... 30

Exercise – Progress Check ........................................................................... 41

Strategy ............................................................................................................... 33

Exercise -

Strategy Worksheet ....................................................................................... 35

Budgeting....................................................................................................... 38

Exercise – Progress Check ........................................................................... 42

Implementation and Review .............................................................................. 43

Bibliography ................................................................................................... 65

Acknowledgements ....................................................................................... 66

Summary ............................................................................................................. 64

Bibliography ................................................................................................... 65

Acknowledgements ....................................................................................... 66

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Applying Recognition Systems

Purpose

The purpose of this course is to provide you with a framework and tools to use for applying a total recognition systems approach. These methodologies are supported by the National

Association for Employee Recognition (NAER) and are exhibited through several Best Practices examples.

Learning Objectives

By the end of this session, you will be able to:

 Assess your organization’s current recognition systems

Identify potential alignment system gaps

Define key recognition system components

Incorporate additional tactics for leader involvement and skill building

Name at least four motivational theories

Name the three parts of the ABC model

Link Best Practices to your future plan

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Introduction – Applying Recognition Systems

Welcome to Applying Recognition Systems which is part of the Certified Recognition

Professional (CRP) series.

About CRP

To earn a CRP designation, candidates will complete four facilitator-led courses and pass the required testing. The NAER Certified Recognition Professional program sets the standard for assessment of an individual’s abilities and provides a means for Recognition Professionals to acquire the needed skills and knowledge in order to excel.

The performance standards include criteria for effective recognition strategy and programs with real, business results. For example, certified recognition specialists are trained to determine the

ROI for a recommended recognition strategy. They learn how to align recognition goals with enterprise goals and develop programs that will meet them, resulting in measurable, bottom-line results for the organization. They learn how to establish cost-effective processes for nominations, and award procurement and fulfillment.

Activity

1.

Based on the Seven Best Practices Standards covered in Structuring Recognition Programs for Success, write down one action you have either taken or plan to take from this material.

2.

Quickly write down some words that come to mind when you think of your organization’s overall culture. (You may use a former organization as well.)

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Course Agenda

(2 breaks & lunch)

Setting the Stage

Culture

Systems

Motivational Theories

Additional Organizational Considerations

Review

Summary

Testing

Training Materials You Will Receive

Participant Guide

Includes:

Models

Worksheets

Best Practices Examples

Article Excerpts

Progress Checks

Reference and Resource Suggestions

Course Evaluation

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Applying Recognition Systems

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Setting the Stage

Setting the Stage Learning Objectives

Following this section, you will be able to:

Distinguish between incentives, awards, rewards, and recognition

Describe how organizational culture interrelates to recognition in the Total Rewards

Structure

Identify the four steps in Recognition Strategy Planning Phases

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Foundational Information

In Structuring Recognition Programs for Success, you were introduced to several key definitions and the Seven Best Practices framework.

Review Exercise

NAER Definitions: Write in the correct term from the following choices:

Recognition

Award

Reward

Incentive

1. __________________ An item given to an individual or team to commemorate a specified achievement (typically non-cash).

2. __________________ An item given to an individual or team for meeting a predetermined goal (sometimes cash-based).

3. __________________ An after-the-fact display of appreciation or acknowledgement of an individual’s or team’s desired behavior, effort, or business result that supports the organization’s goals and values.

4. __________________ A contingent reward based on achievement of pre-determined performance results within a specific time period.

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Best Practice Standards and Recognition Strategy Planning

Here are the seven Best Practice Standards from Structuring Recognition Programs for Success as they appear within an iterative strategic planning process:

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Strategic Alignment

Here’s a graphic representation of strategic alignment similar to the model shown in

The 1001

Rewards and Recognition Fieldbook by Bob Nelson:

This will help us focus on total organizational alignment.

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Total Rewards Structure

According to WorldatWork, there are five components to a Total Rewards Strategy:

Reprinted with permission from WorldatWork©2006

Surrounding these five Total Rewards components are:

Organizational Culture

Business Strategy

Human Resource Strategy

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Setting the Stage Summary

There are many interlocking pieces when considering how to align, design, and apply a total recognition system.

Some of the key pieces include:

Identifying key cultural characteristics and matching value behaviors to recognize

Ensuring a balance between the available recognition programs to support the culture

Continually reviewing inputs and measurements for synergy

What other observations do you have?

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Cultural Considerations

Section Learning Objectives

Following this section, you will be able to:

Identify two common organizational cultural components

Define values and behaviors linked to the various cultural models

Map values alignment to current programs

Identify necessary change management components

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Strong Organizational Culture

In their book, The 24-Carrot Manager , authors Adrian Gostick and Chester Elton have this to say about corporate culture:

A carrot culture without defined goals – or worse yet, with misdefined goals – will

Never succeed at juicing the best efforts from employees.

When recognized for the right things – for behaviors that are important to your organization – the people being recognized and their coworkers work smarter. How successful your strategy is depends on how well it is implemented. And that depends on how well your people are treated. The better they are treated, the better they will treat your customers. It’s that simple.

Make sure to tie recognition to your company’s goals and values.

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Activity

What are the stated values within your organization?

How would you describe the culture within YOUR organization? (Or an organization with which you are quite familiar?)

What are the “declared” values that can be found on the website, annual report, recruiting advertisements, employment applications, etc.?

What are the “real” values?

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The Culture-Recognition Cycle

Culture

Vision, Mission, Values

Strength, Consistency, Strategy

Recognition

Social Reinforcement

Communication

Recognition Programs

How does recognition fit with culture?

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Corporate Culture

Much has been said about corporate culture throughout the years. Let’s take a look at some of the definitions and corporate culture components.

Comprises the attitudes, experiences, beliefs and values of an organization (WiKipedia)

The moral, social, and behavioral norms of an organization based on the beliefs, attitudes, and priorities of its members. ( www.auxillium.com/culture )

The unique personality or character of a particular company or organization, and includes such elements as core values and beliefs, corporate ethics, and rules of behavior.

( www.quintcareers.com

)

The alignment between personal and organizational values. (Richard Barrett, Liberating the Corporate Soul – Building a Visionary Organization )

What similarities do you notice about these brief definitions?

Think of a few well-known companies and what comes to mind when you think of their corporate cultures:

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Corporate Culture Components

A corporate culture can be communicated in the organization’s vision and mission statements.

A vision gives lifelong, purpose-driven focus for everyone in the organization. It provides meaning and insight on how they will make a difference.

A mission statement says exactly what an organization does in order to serve its customers.

Most organizations don’t consciously try to create a certain culture. Typically, culture is based on the values of the top leadership and sometimes founders of the organization.

A strong culture means everyone responds to stimulus because of the organizational values alignment.

A weak culture has little alignment with organizational values and control is exercised through bureaucracy and extensive procedures.

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Matching Culture with Values

Kantor System Typology and Communicational Domains™ -

Four culture types:

RANDOM

OPEN

“Collaborative”

“Individualistic”

SYNCHRONOUS CLOSED

“Aligned”

“Structured”

Given the four culture types labels in the chart, match the descriptors with the label:

3.

___________________ Stability, accountability, procedures (military)

4.

___________________ Communication, teamwork, problem solving (jury)

5.

___________________ Responsiveness, creativity, entrepreneurship (research and development)

6.

___________________ Values, harmony, direction (symphony orchestra)

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Culture Theories - Exercise

Hofstede Culture Orientation Model – Five Continuums

For your assigned continuum, write potential recognition-related values that would compare with the brief description.

INDIVIDUALISM

Is the degree to which individuals are integrated into groups.

.

Individual vs. Collective – The level at which behavior is appropriately regulated.

Individual Collective ties between individuals are loose: everyone is expected to look after him/herself and his/her immediate family integrated into strong, cohesive in-groups, often extended families (with uncles, aunts and grandparents) which continue protecting them in exchange for unquestioning loyalty

POWER DISTANCE INDEX (PDI)

Is the degree of inequality among people

which the organization as a whole considers normal.

Power and Inequality – The extent to which less powerful parties accept the existing distribution of power; the degree to which adherence to formal channels is maintained.

Degree of Power Degree of Inequality

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Culture Theory

(cont.)

Hofstede

UNCERTAINTY AVOIDANCE INDEX (UAI)

Is the degree to which people in an organization prefer structured or unstructured situations or their tolerance for uncertainty and ambiguity.

Uncertainty Avoidance

The degree to which employees are threatened by ambiguity, and the relative importance to employees of rules, long-term employment and steady progression through well-defined career ladders.

Uncertainty Avoiding Uncertainty Accepting

Strict laws and rules, safety and security measures, more emotional, and motivated by inner nervous energy

More tolerant of opinions different from what they are used to; they try to have as few rules as possible, and on the philosophical and religious level they are relativist, not expected by their environment to express emotions

MASCULINITY

Is the extent to which a culture (organizational or nation) is conducive to dominance, assertiveness and acquisition of things versus a culture more conducive to people, feelings and quality of life.

Dominant Values – The nature of the dominant values, e.g., assertiveness, monetary focus, welldefined gender roles, formal structure, (defined as “Masculine”) vs. concern for others, focus on quality of relationships and job satisfaction, and flexibility (defined as Feminine).

“Masculinity” “Femininity”

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Culture Theory

(cont.)

Hofstede

Long Term Orientation (LTO)

Short-term vs. Long-term – The time frame used: short-term (consumption, saving face by keeping up) vs. long-term (involving preserving status-based relationships, thrift, deferred gratification)

Short-term Long-term

See: www.geert-hofstede.com

; www.auxillium.com/culture.shtml

: http://www.valuebasedmanagement.net/methods_hofstede.html

;

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Culture Theories

(cont.)

Deal and Kennedy defined organizational culture as the way things get done around here .

Using the parameters of:

Feedback – instant response

Risk – degree of uncertainty in the organization’s activities

They defined four organizational classifications:

Tough-Guy Macho – Quick feedback; high rewards. Stressful. Examples include brokerage firms, athletics, police force, etc.

Work Hard/Play Hard – few risks; rapid feedback. Large organizations that strive for customer service. Characterized by team meetings, jargon and buzzwords.

Bet-Your Company – big stakes decisions are made, often taking years to get results.

Exploration or development projects, e.g., oil exploration.

Process – little or no feedback. How things get done is the focus versus what is to be achieved. Bureaucracies. Nonetheless, produce consistent results. Example is public services.

In comparison to the Hofstede continuums, these theories could be plotted on graph with risk on one axis and feedback on another.

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Culture Theories

(cont.)

Charles Handy – links organizational structure to culture:

Power

– Power among the few. Few rules and little bureaucracy. Swift decisions can be made.

Role – Clearly defined authorities within a well-defined structure. Hierarchical bureaucracies, and power is driven by position.

Task – Problem-solving teams. Power comes from expertise. Multiple reporting and matrix structures.

Person

– Everyone believes they are jointly superior to the organization. This structure is often difficult but can exist with partnerships with each partner bringing a particular expertise.

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Values

Organizational values are beliefs and ideas about what kinds of goals members of the organization should pursue and ideas about the standards of behavior they should use to achieve these goals.

What are some organizational values that come to mind?

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Creating Alignment around Key Values

In The Leadership Challenge by Jim Kouzes and Barry Posner, they say that researchers have identified three central themes in the values of highly successful, strong-culture organizations .

These are:

1.

high performance standards

2.

caring attitude toward people

3.

sense of uniqueness and pride

They also go so far as to recommend regular review of corporate values since they often grow stale over time – every three to four years. It is important to speak often about shared values and how they contribute to community and a common purpose.

Kouzes and Posner also say that leaders need to speak to people’s hearts. We all have a deep yearning to make a difference and we have a purpose to our work existence. If people are to become committed to their organizations, they need a cause and a clear picture of what it means to work at their organization.

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Matching Rewarded Behavior with Cultural Outcomes

See if you can match the following behavioral goals with their respective potential outcomes.

1. _____tenure/seniority-based increases A. compliance

2. _____personal goal achievement

3. _____data and metric-based increases

B. bottom-line, performance driven

C. entitlement

4. _____exceeding monetary or sales targets D. culture of achievement

Source: www.shrm.org

, Total Rewards: Motivating with Strategic Rewards

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Exercise

Current State Inventory

1.

First, fill in recognition programs you have within your organization under the Program column.

2.

Then, work horizontally across the chart and check only one Type and one Dimension of recognition for each Type.

3.

Make note of any values you’ve identified and linkage to organizational alignment.

PROGRAM TYPE

RECOGNITION

DIMENSION

VALUES RECOGNIZED

I R D2D INF. FOR.

TOTAL TALLY

KEY:

I = Incentive R = Recognition D2D – Day-to-Day INF. = Informal

Examples: Service Awards, Safety, On-the-spot Awards, Chairman’s Award, Sales trips

FOR. = Formal

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Readiness and alignment

As you look at the inventory on the previous page, are the same values being recognized throughout the majority of your recognition efforts?

Are there any programs that run counter to the values and behaviors you are trying to reinforce?

What would be an example of this?

 Are there any programs that truly don’t fit or may be recognizing behaviors you no longer need to reinforce?

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Changing Course

If through your assessment, or if the organizational climate has changed, you’ll want to keep the following change management concepts in mind:

Late Adopters

Change

Early

Adopters

Innovators

Critical Mass

Time

The potential speed of change is dependent on getting enough critical mass over time to produce and sustain the change.

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Change Management Concepts

Whether you are changing your whole recognition focus or one program, keep the following change management concepts in mind:

1.

start at the top to create a sense of urgency

2.

choose the right team to orchestrate the change

3.

create a clear vision of where you want to go and why

4.

get the word out

5.

empower the people

6.

create victories along the way

7.

never stop changing

8.

keep proving your case

Source: Managing with Carrots, from John Kotter’s concepts

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Clashing Cultures

Mergers and acquisitions become particular challenges when trying to meld organizational cultures.

Have any of you had the experience of trying to integrate two different cultures and how to align their previous recognition systems?

What role does recognition play in merging cultures?

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Cultural Considerations Summary

When an organization is stressed, recognition is even more important. o Mergers o Leader change o New competitors in marketplace o Financial threats

 Organizational culture can be compared to a personality “type” or imprint.

Culture defines desired actions and reactions.

Culture is a by-product of an organization’s history, traditions, and leadership.

Values should align with the culture, and they should be recalibrated every few years.

Values are agreed on rules of behavior

Recognition contributes to a business need.

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The Culture-Recognition Cycle - Review

Culture

Vision, Mission, Values

Strength, Consistency, Strategy

Recognition

Social Reinforcement

Communication Mediums

Recognition Programs

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Exercise

Progress Check

In your own words, how would you describe organizational culture?

Why is the relationship between culture and recognition important?

TRUE or FALSE

Circle T for True and F for False.

T F

T F

Values relate to goals and standards of behavior.

Organizational readiness isn’t a consideration when implementing recognition.

T F It is necessary to create a sense of urgency when implementing organizational change.

MULTIPLE CHOICE

Which is NOT a culture theory: a.

Hofstede b.

Herzberg c.

Handy d.

Kantor

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Recognition Systems

Section Learning Objectives

Following this section, you will be able to:

Distinguish between a recognition program and a system

Identify five potential areas to support your recognition system

Name three ways technology can make your system work easier and more effectively

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What’s a recognition system?

According to A Culture of Recognition, a system demonstrates long-term direction by supporting corporate values and providing multiple ways individuals can be recognized and can recognize others

Systems create a momentum on their own by allowing people to tap into a recognition system that already exists – rather than creating an ad hoc process.

Here are some distinctions between a programmatic versus a systematic approach:

Program

Short-term commitment

Start and stop

System

Long-term commitment

Continual recognition opportunity

Operates independently from other initiatives

Disjointed efforts throughout the organization

Disparate rewards

Integrated with other key initiatives

Planned continuity - companywide

Viewed as flavor of the month

Ability to accumulate reward points and select own rewards

Accepted as integral part of the culture

Singular Repeatable through tracking, technology and multiple opportunities

Fair and consistent throughout the organization

Pre-defined and communicated – multiple opportunities

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Additional Program / System Distinctions - Exercise

See what you think about the following definitions. Mark an X in the column that you think most closely aligns with the description:

PROGRAM SYSTEM DESCRIPTION

Can be for Length of Service, Performance, Safety, etc. It follows the NAER best practices and can be in the form of both formal and informal.

Something that stands alone in its own right.

Usually have only one vendor and only one IT interface rather than many. It consolidates tax reporting and allows companies to start creating detailed recognition profiles and scorecards on employees and managers

Directly related to a specific goal or objective in achieving something.

A complete solution which would encompass multiple dynamics while allowing each initiative to be aggregated together (or independently) under “one roof”.

A vehicle that is used to deliver and monitor recognition.

This system allows for all corporate recognition to be housed under one central administrative system.

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Benefits of a Recognition System

A system:

 aligns employee initiatives with corporate strategies and goals

 provides the opportunity to constantly reinforce valued behaviors

 contributes to employee loyalty and engagement

 creates more recognition equity

 reaps benefits over time

 develops consistency and trust since the system has long-term commitment

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Ten Tips for Building an Effective Recognition System

Here’s the top ten tips according to Rhonda Sunnarborg in

A Culture of Recognition:

1.

Make sure managers really “get it” – training and accountability are key

2.

Identify current gaps

3.

Align with corporate values

4.

Define both the behaviors and results – determine how to observe and measure

5.

Involve employees in the recognition system design

6.

Design with broad participation in mind

7.

Make giving and receiving easy

8.

Provide frequent feedback to participants and managers

9.

Reward both individuals and teams

10.

Review and refine

Many of the same general concepts from the Seven Best Practices Standards!

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Embedded Into All Possible Systems

Can you find recognition embedded into the following corners of your organization?

 Recruiting literature

External website

Employee newsletters

Handbook

Policies

Performance management system

Managerial incentives

 Everyday communications

Meeting agendas

On the walls/bulletin boards

New employee orientation

Intranet

Celebration of Employee Recognition Day

Broadcast emails or voicemails

Other?

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Technology as a Systems Enabler

Depending on your organization’s size and the scope of your recognition system, technology can become a bonding force to create ease of use.

Consider the following technological applications:

Dedicated website or portal for recognition-related tips and news

Electronic nomination forms

E-newsletters

Measurement scorecards

Employee surveys

Reporting capabilities

Email thank-yous

One-stop recognition “shop”

Award points

Webinar and online training

Posting stories of exemplary employee behaviors

Integration and access of multiple programs

Other?

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Exercise

Recognition System Assessment

Put a check in the column that most closely represents recognition in your organization.

RECOGNITION SYSTEM QUESTIONS RATING

Do Not

Do at

All

Need

Much

Improve.

Need

Some

Improve.

1.

All in your organization have a clear and common understanding of the purpose of the organization’s recognition system.

Do

Well

2.

Values and desired behaviors are clearly communicated across the organization.

3.

Recognition is aligned with other performance systems.

4.

Managers and supervisors accurately define the key behaviors of their direct reports that produce the desired results.

5.

Recognition focuses on the critical few behaviors and results that lead to success.

6.

Value of the recognition is equal to what was done to earn it.

7.

Recognition is available to everyone, not just the top performer on a particular measure.

8.

Recognition is balanced so that it does not adversely or inadvertently promote one desired behavior or result over another

9.

The recognition system is time, effort, and money well spent.

NOTE: this is taken from Snofly – will need to get permission

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PLACEHOLDER ONLY

TRUE or FALSE

Circle T for True and F for False.

Exercise

Progress Check

T F The assessment phase begins with defining your Current State.

T F A SWOT Analysis is very comprehensive and objective.

T F It is beneficial to distinguish whether recognition program is tied to specific business strategies.

MULTIPLE CHOICE

The “O” in SWOT stands for: e.

Occurrences f.

Oddities g.

Ownership h.

Opportunities

The most critical thing to consider when building a budget is: a.

The same things you did last year b.

Expenses that support your objectives c.

Full-time staff d.

Balloons

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Motivational Theory to Behavior-based Recognition

Section Learning Objectives

Following this section, you will be able to:

Name at least three primary motivational theories and match general concepts

Write the corresponding concepts to the ABC Model

Put the following components in the correct order: pinpoint, measure, feedback, reward/reinforce, evaluate

Choose whether to reinforce, reward, or recognize

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Exercise

What motivational theories are you familiar with? What are some of the general concepts and how do they relate to recognition?

1.

2.

3.

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Theoretical Thumbnails

Need theories:

A need is a requirement or necessity for survival and well-being. Need theories suggest that a manager needs to determine what needs the person is trying to satisfy while ensuring the person receives outcomes that help satisfy those needs. There are several needs theories which include:

Maslow’s Hierarchy of Needs

The premise of this theory is that people seek to satisfy five basic human needs:

1.

physiological

2.

safety

3.

belonging

4.

self-esteem

5.

self-actualization

Maslow suggested that these exist in a hierarchy and that the lowest level needs must be met before a person tries to satisfy higher level needs. Once a person is satisfied at a certain level, that level no longer serves as a source of motivation.

Herzberg’s Motivator-Hygiene Theory

Frederick Herzberg focused on two kinds of behaviors:

1.

those that meet basic expectations – hygiene factors

2.

those that lead to increased performance – motivation factors

When hygiene needs are not met, employees become dissatisfied. The tough part becomes, however, that satisfying these needs does not automatically result in motivation or job satisfaction. This merely means the existing expectations are met.

For motivating and job satisfaction to be high, motivating factors must be available. These include chances for achievement, recognition, additional responsibility, and growth.

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Need theories:

(cont.)

McClelland’s Needs for Achievement, Affiliation, and Power

Psychologist David McClelland’s theory proposes three needs:

1.

achievement – perform challenging tasks well and meet personal success standards

2.

affiliation

– concern about establishing and maintaining good interpersonal relationships

3.

power – the desire to control or influence others

McClelland asserts that each of us has varying degrees of these needs. High achievement and power needs are especially important for first-line and middle managers. Senior managers have a high power need. Affiliation needs are less prominent in managers, because it might have an adverse impact on high results and performance.

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Additional Theories

Expectancy Theory

This is one of the most popular workplace motivation theories since it focuses on inputs, performance and outputs.

This theory became popular in the 1960s and was formulated by Victor H. Vroom who said that high motivation results when employees believe high levels of effort lead to high performance which leads to desired outcomes. Put simply, if motivation is high, expectancy needs to be high.

From a managerial standpoint, managers need to make sure their direct reports believe that by trying hard, they can succeed.

Behaviorism – Applied Behavior Analysis/Behavior Modification

B.F. Skinner’s research focused on shaping behavior through positive and negative reinforcement through gradual steps. These steps included setting goals which would help determine how the subject would change by following the steps leading ultimately to the desired state.

Skinner’s main focus was to target behavior and see what consequences deliver responses – without punishment. “Shaping” is one of his main concepts which is described as creating behaviors through reinforcing. Reinforcement – both positive and negative – prove to be more effective in bringing about long-term behavioral changes.

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Additional Theories

(cont.)

Hawthorne Effect

Named for the Hawthorne Plant of Western Electric, this theory is based on productivity improvement following obtrusive observation. Production increased not as a consequence of actual changes in working conditions introduced by the plant's management but because management demonstrated interest in such improvements. It has been described as the rewards you reap when you pay attention to people. The mere act of showing people that you're concerned about them usually spurs them to better job performance.

The original Hawthorne research was a series of studies on the productivity of workers manipulated various conditions (pay, light levels, rest breaks, etc.), but on average each change resulted in productivity rising, including eventually a return to the original conditions. This was true of each of the individual workers as well as of the group mean.

Clearly the variables the experimenters manipulated were neither the only nor the dominant causes of productivity changes. One interpretation, was that the six individuals became a team and the team gave itself wholeheartedly and spontaneously to cooperation in the experiment. In

1955, it was deduced that the experimental outcomes were mostly due to the more general result of being observed and were thus labeled the "Hawthorne effect."

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Additional Theories

(cont.)

Six Boxes Behavior Engineering Model

A 20 th century behaviorist, Thomas Gilbert, designed a performance management model which breaks improvement components into six elements.

An adaptation of Gilbert's six-cell model – Six Boxes™ – developed by Binder Riha Associates asked people where improvement would most help them do their jobs better. The model links the first four boxes – Information, Resources, Incentives, and Knowledge – to environmental or organizationally-based elements leaving the remaining two elements – Capacity and Motives – as individually focused.

The Six Boxes™ Behavior Engineering Model

INFORMATION

Clear performance expectations, relevant feedback about performance, clear and relevant guides on how to do the job.

RESOURCES

Tools, resources, and materials to achieve your performance goals, access to leaders, sufficient personnel, organized work processes.

INCENTIVES

Adequate pay and non-pay incentives contingent on performance, career development opportunities, clear consequences for poor performance.

KNOWLEDGE

Systematically designed training to match requirements of exemplary performers, opportunity for training.

CAPACITY

A match between you and your position, good selection processes, flexible scheduling to match peak capacity of workers, visual aids to augment capacity.

MOTIVES

Recognition of your willingness to work for the available incentives, assurance of job security and social acceptance.

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Situational Leadership ™

(High)

THE FOUR LEADERSHIP STYLES

High Supportive and

Low Directive Behavior

High Directive and

High Supportive Behavior

S

U

P

P

O

S3 Supporting Coaching S2

R

T

I

V

S4 Delegating Directing S1

E

Low Supportive and

Low Directive Behavior

High Directive and

Low Supportive Behavior

(Low) DIRECTIVE (High)

DEVELOPMENT LEVEL

HIGH MODERATE LOW

High Competence

High Commitment

Moderate/High

Competence

Variable Commitment

Some Competence

Low Commitment

Low Competence

High Commitment

D4 D3 D2 D1

Developed

Developing

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The ABCs of Motivational Theory

Let’s take a look at a three-factor behavioral model using A for antecedent; B for Behavior and C for Consequences: (Need “better” graphics here)

ANTECEDENTS BEHAVIOR CONSEQUENCES

Anything that prompts people to act in a given manner

Expectations

 Or, don’t cause behavior to occur

80%

What we do

What we say

What happens to us after the behavior

Strengthen or weaken the behavior

20%

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Antecedent Examples

Objectives

Training

Instructions

Measurement

Modeling

Meetings

Speeches

Deadlines

Manuals

Mandates

Feedback

Policies

Past performance

Goals

Effective Antecedents Include:

Previously paired with consequences (If study hard, get good grade)

Communicate specific behaviors and results (If study four hours and get a “B” or above, get a new DVD)

 Occur just prior to the desired behavior (If you’re always prepared for a test, you’ll get a good grade, even if the test isn’t announced in advance.)

?????

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Consequences

Consequences are most effective when they occur soon after the behavior. They occur whether you plan them or not.

Consequences are events that:

Come after the behavior

Are produced after the behavior

Strengthen or weaken the behavior

Consequences may be:

Positive to the performer – which strengthens behavior, OR

Negative, which weakens behavior

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Consequences Variables

VARIABLE

TYPE

Positive

Negative

IMMEDIACY

Now

Later

POSSIBILITY

Sure

Unsure

Relative Power of Consequences

DESCRIPTION

For the performer

For the performer

While or soon after the behavior

More than a day’s delay

Definite

May or may not happen

Given the chart above what combination of type, immediacy and possibility do you think is the most beneficial to impact behavioral change?

Least beneficial

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Exercise

For the following brief scenarios, put a check mark in the box if you think the underlined portion is an Antecedent, Behavior, or Consequence.

ANTECEDENT BEHAVIOR CONSEQUENCE SITUATION

Your manager suggests you attend a focus group. You attend and enjoy the experience.

Your instructions are to type and distribute the board meeting minutes.

Your write them in long-hand and receive a reprimand.

Your team goal is to complete 200 cold calls this week. You stayed late to complete your daily share. Your spouse complained when you arrived home late.

Angie had an unusually heavy workload the past month, and she constantly complained. Her manager reallocated some of the work to you.

Your manager suggests you attend a focus group. You attend and enjoy the experience.

Your team goal is to complete 200 cold calls this week. You stayed late to complete your daily share. Your spouse complained when you arrived home late.

Angie had an unusually heavy workload the past month, and she constantly complained. Her manager reallocated some of the work to you.

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Performance Management Integration

Although there are various performance management models, observation, feedback, coaching, setting expectations, monitoring, measuring, evaluating are all part of most performance management systems.

Recognition opportunities can enter in at several points in the process (See the arrows.)

:

SET

GENERAL

BUSINESS

GOALS

ALIGN

BUSINESS

GOALS WITH

DEPARMENTAL AND

INDIVIDUAL GOALS

RECOGNIZE &

EVALUATE

PERFORMANCE

PERFORMANCE

MANAGEMENT

PROCESS

MONITOR

PERFORMANCE

COACH

FEEDBACK

MANAGE

PERFORMANCE

Arrows indicate possible touchpoints for recognition.

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Actions within Performance Management

NOTICE / SPECIFY

QUANTIFY

TELL

RECOGNIZE/REWARD/REINFORCE

EVALUATE

Need better graphics here

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Actions within Performance Management

(cont.)

Notice and Specify

Action linked to culture and values

Can be directly observed

Identify and clearly define high impact behaviors

Quantify

Measurable outcome or behavior

Ratings

Tell

Verbally

In writing

Recognize

 individuals and teams

 link to goals

 identify types of recognition employees would like

Evaluate

Measure the recognition results

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Motivational Theory to Behavior-based Recognition

Summary

Behaviors are defined in observable and measurable terms

 A systematic process of observing behavior and delivering feedback and/or recognition is defined and executed

This system is communicated

Collect data

Adjust as required

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PLACEHOLDER ONLY

TRUE or FALSE

Circle T for True and F for False.

Exercise

Progress Check

1.

T F The assessment phase begins with defining your Current State.

2.

T F A SWOT Analysis is very comprehensive and objective.

3.

T F It is beneficial to distinguish whether recognition program is tied to specific business strategies.

MULTIPLE CHOICE

4.

The “O” in SWOT stands for: a.

Occurrences b.

Oddities c.

Ownership d.

Opportunities

5.

The most critical thing to consider when building a budget is: a.

The same things you did last year b.

Expenses that support your objectives c.

Full-time staff d.

Balloons

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Additional Organizational Considerations

Section Learning Objectives

Following this section, you will be able to:

Explain the relevance of feedback to performance management

Name four workplace generations

Match general recognition preferences to at least two generations

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Leadership Support Systems

Managerial Training

Just as with any job, the performer is going to have a greater chance of success with appropriate directions, tools, and effort.

As we saw in Structuring Recognition Programs for Success, the NAER/WorldatWork joint survey gives the following breakdown for managerial recognition-related training:

23% of the respondents say they do not have managerial training relating to recognition. Those that do, use the following methods:

Method

In-person training

Online education

Handbook

Video-based

Other (management meeting, e-mail, etc.)

Percentage

69%

36%

36%

8%

17%

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Leadership Support Systems

(cont.)

Communications

According to Towers Perrin and The Leadership Source by Jim Shaffer, the following are the primary communications sources and their corresponding impact:

Write in the percentage impact you think corresponds with each source:

61% 7% 32%

1.

_______ Formal media – “official” communications such as memos, publications, meetings.

2.

_______ Infrastructure – “institutional voice” such as rewards, programs, systems, policies

3.

_______ Leadership – “personal voice” such as what managers do, who they recognize, what they ask

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Leadership Support Systems

(cont.)

Just as with the Performance Management cycle shown earlier, leaders need to clearly understand the expectations too!

They need to understand:

What they are supposed to do

How – what tools are available, presentation techniques, budget, etc.

 When it’s appropriate

 Why it’s important

In the book, Recognition at Work , author G. Michael Barton suggests the following internal model that would qualify leaders as a Certified Recognition Leader (CRL):

Need Better graphics

Change

Management

Basic Leadership Skills

Employee

Development

Recognition

Management

=

Certified Recognition Leader

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Leadership Support Systems

(cont.)

Technology as an enabling tool

As was mentioned earlier in the Recognition Systems section, technology can help leaders by providing tools to:

Dedicated website or portal for recognition-related tips and news

Electronic nomination forms

E-newsletters

Measurement scorecards

Employee surveys

Reporting capabilities

Email thank-yous

One-stop recognition “shop”

Award points

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Organizational Customization

Take advantage of “natural” organizational divisions to customize any recognition to match the culture of the particular unit. These may include:

Divisions

Business units

Functional areas

Departments

Ad hoc teams

Again, while it’s beneficial to align top-level values, each particular unit is unique and as such, may wish to design a unit-specific recognition program. This allows for greater timeliness and spontaneity since it exists outside a larger system.

Some examples might include pass-around trophies, weekly applause at a touch-base meeting, notes, small celebrations, etc.

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Generational Considerations

With at least 50 years span between four and sometimes five generations in the workplace, it’s easy to draw the conclusion that recognition can’t be one-size-fits-all!

According to Bob Nelson, Ph.D., in an article called Everyone Wins , here are some generational generalizations to consider:

Silent Generation (or Traditionalists) – Born 1920-1945

This group of over 55-year-olds, comprises nearly 21% of the workforce.

Part-time, flexible or temporary work schedules are appealing to this group.

Dedicated and loyal to their employers

Non-risk takers; conformers

Prefer formal, public recognition

Like team recognition

Value incentives that help them plan for the future

What programs do you have available that would appeal to those in the Silent Generation?

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Generational Considerations

(cont.)

Baby Boomers – Born 1946 – 1963

This group makes up more than half – 52% of the workforce.

Like to win and be in charge

Self-indulgent

Move from one career and company to another

Live for new experiences

Like to be pampered

Appreciate incentives that give them more free time

What programs do you have available that would appeal to Baby Boomers?

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Generational Considerations

(cont.)

Generation X – Born 1964-1981

At 26% of the workforce, these 40 million-plus workers are:

Fiercely independent, self-directed, resourceful

Skeptical of authority and institutions

Loyal to self first

Seek excitement, challenge and meaning

Can also be loyal, focused and energized in the right setting

Like opportunities to interact with managers

Motivated by a free-spirited workplace

Appreciate training

How about those Gen Xers?

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Generational Considerations

(cont.)

Generation Y (Echo Boomers or Millennials) – Born 1981-1995

With 57 million in this group, they are the largest consumer group in the history of the United

States.

Want it all NOW!

Prefer meaningful work right away

Many like to work from home

Willing to take on new challenges

Motivated by opportunities to learn, grow, and make a difference

Provide feedback, thanks, trust, and respect

Experiential incentives geared to what they like to do

What are you doing to prepare for the Gen Yers?

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Organizational Customization Summary

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Exercise

PLACEHOLDER

TRUE or FALSE

Circle T for True and F for False.

1.

T F

Progress Check

2.

T F

3.

T F .

MULTIPLE CHOICE

4.

? a.

b.

c.

d.

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Overall Summary

Memory Maker

Case Studies – 100 Best Companies to Work for – Top Ten

Read the following case study excerpts from four of the top ten companies recognized in 2007

FORTUNE magazine’s list of 100 Best Companies to Work for®.

In the right-hand column, mark the following initials:

C = culture clue

V = value

B = possible behavior to recognize

We will then share our observations.

Case Studies

Case Study Excerpts

Google #1:

Google's leaders have figured out the formula that works for them by treating people with respect, supporting their creative endeavors, and working hard to adhere to their motto of "Don't be evil". It's not magic, or rocket science or paternalism or entitlement. In some ways it is plain common sense. As they explain in their Culture Audit: "Our employees, who call themselves Googlers, are everything. Google is organized around the ability to attract and leverage the talent of exceptional technologists and business people. We have been lucky to recruit many creative, principled and hard working stars. We hope to recruit many more in the future. As we have from the start, we will reward and treat them well."

Source: www.greatplacetowork.com/best/list

NOTES

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Case Study

(cont'd.)

Case Study Excerpts

Google (continued)

Google seeks out brainy, creative, entrepreneurial people to join its ranks and so provides strong support for people's professional growth and development - all of which is consistent with its spoken emphasis on the importance of respecting people. Googlers also like to have a lot of fun during the work-day - to relieve stress, build camaraderie and fuel creative thinking - so there are lots of opportunities to have fun at work as well.

TGIF is a weekly, company-wide get-together started by Google cofounders, Larry Page and Sergey Brin. While it is used as a time to welcome new employees and for senior leaders to present news about

Google and Google-related events that have transpired over the previous week, the highlight of TGIF is the Question and Answer section. This section reflects the leaders' belief that employees should feel comfortable asking even the most senior members of the management team any question and that the executives should talk with employees as openly as possible. No question is off-limits. TGIFs are webcast to Google offices around the globe and archived for those who cannot make the meeting due to time zone or other scheduling challenges.

At Google, there are many internal e-mail lists dedicated to the discussion of particular ideas, issues and complaints. For example, on the "Google

Ideas" website, Googlers regularly submit their thoughts on product improvements or provide suggestions about how to make things better around Google. Their colleagues can then weigh-in by providing their feedback through comments and ratings - from 0 (Dangerous or harmful if implemented) to 5 (Great idea! Make it so). The management team pays very close attention and is responsive to issues that Googlers deem important enough to discuss on one of their internal e-mail lists.

Sometimes, the conversations started on one of these e-mail threads have actually become the topic of a larger discussion at a TGIF.

The 20% project is a unique program for Google engineers, which encourages them to dedicate 20% of their time on a project outside their typical work responsibilities that would potentially benefit the company.

The 20% project encourages continual innovation by allowing engineers to spend time on Google related projects that they wish to pursue. By enabling employees to recharge their creative energies, Google provides an opportunity for employees to move into new areas of work while also broadening their knowledge base.

NOTES

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Case Study

(cont'd.)

Case Study Excerpts

Google (continued)

One of the qualities that Google looks for and measures in potential

Googlers is their "Googleyness" - is the candidate able to work effectively in a flat organization and in small teams and respond to a fast-paced rapidly changing environment. Does he/she seem well-rounded and bring unique interests and talents to innovate in the work he/she does, and possess enthusiasm for the challenge of making the world a better place? This

"Googley" factor plays an important role when candidates are evaluated during the hiring process.

The décor of Google offices encourages much fun. Lava lamps, bicycles, large rubber exercise balls, couches, dogs, press clippings from around the world, projection screens displaying search queries or daily Google events fill the halls and offices. According to an article in the Seattle Times entitled "Big Google Ideas Generated Here" (06/24/06): "If the Googleplex exploded, the employees would have a hard time digging themselves out of a shower of pirate flags, action figures, t-shirts with funny sayings, leis, ironic signs, a fringed leather vest, thousands of game pieces, and giant

Lego people."

NOTES

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Case Study

(cont'd.)

Case Study Excerpts

The Container Store - #4

It's the founders' commitment to its employees and their principled way of doing business that has landed The Container Store at the top of

FORTUNE magazine's annual list of "100 Best Companies To Work For" eight years in a row. Also, Dr. Leonard Berry, America's foremost expert on service quality, included The Container Store in his book, "Discovering the Soul of Service." His book profiles 14 companies from a variety of industries - all providing the utmost in customer service. And in 1999, The

Container Store received the Retail Innovator's Award from the National

Retail Federation.

Through creative thinking and a focus on unique product selection, employee retention and downright fun, customers get inspired by a one-ofa-kind shopping experience at The Container Store. Most employees begin their careers with us in our stores, and many continue to build their careers there for years, since that is the true lifeblood of our business. Our store positions offer the best introduction to our products, service standards and company values. When customers walk into any of our stores, they immediately sense the "air of excitement" that exemplifies the entire company. This excitement is fostered by the spirit of our store employees.

Customer service is The Container Store's core competency, so hiring people who are self-motivated and team-oriented with a passion for customer service is key. We place so much importance on service that every first-year, full-time salesperson receives about 241 hours of training—in a retail industry where the average is about seven hours. And training continues throughout an employee's career.

Our salespeople do not work on commission; instead, they're either salaried or paid by the hour with wages far above the retail industry norm.

Therefore, they often work together in teams to find that complete solution for the customer, which allows them to spend as much time as necessary to help customers find what they need. www.containerstore.com

NOTES

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Case Study

(cont'd.)

Case Study Excerpts

Whole Foods Market - #5

Whole Foods Market is a dynamic leader in the quality food business. We are a mission-driven company that aims to set the standards of excellence for food retailers. We are building a business in which high standards permeate all aspects of our company. Quality is a state of mind at Whole

Foods Market.

Our motto — Whole Foods, Whole People, Whole Planet — emphasizes that our vision reaches far beyond just being a food retailer. Our success in fulfilling our vision is measured by customer satisfaction, Team Member excellence and happiness, return on capital investment, improvement in the state of the environment, and local and larger community support.

Our ability to instill a clear sense of interdependence among our various stakeholders (the people who are interested and benefit from the success of our company) is contingent upon our efforts to communicate more often, more openly, and more compassionately. Better communication equals better understanding and more trust. www.wholefoodsmarket.com

S.C. Johnson and Son- #7

As a family company, SC Johnson advocates a culture of mutual respect, fairness, and inclusion,” says SC Johnson Chairman and CEO Fisk

Johnson. “These central values are so critical in developing a workplace that sets the standard for integrity. Being the best place for the best people is one of the top priorities for us not only today but for the next generation. This recognition is based in large part on the opinions of SC

Johnson people and knowing that those working at the company truly feel that it is a great place to work is inspiring.” www.scjohnson.com

NOTES

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Overall Summary

Review the material and map out the interrelationship between:

Culture

Values

Recognition

Behaviors

What are the advantages of a recognition system?

How do multiple generations impact your recognition strategy?

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Bibliography

Sources directly used for development of this material:

Kaplan, Robert S. and David P. Norton. The Balanced Scorecard

Boston, Massachusetts: Harvard Business School Press, 1996.

Nelson, Bob. The 1001 Rewards and Recognition Fieldbook .

New York, New York: Workman Publishing, 2003.

Articles:

FORTUNE Magazine, annual feature on “100 Best Companies to Work for in America.”

Criteria established by Great Place to Work® Institute.

Gibson, Christi. “Looking for a Great Place to Work.”

HR Management Magazine , May 2006.

“The Power of Praise and Recognition.”

Gallup Management Journa l, July and August 2004, Part 1 and Part 2.

Web Sites: www.recognition.org

www.worldatwork.org

www.octanner.com

http://www.vital-learning.com/documents/RWTPaper_000.pdf

www.roiinstitute.com

Other helpful resources include:

Elton, Chester and Adrian Gostick. Managing with Carrots and the 24-Carat Manager. www.astd.org

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Alignmen t with

Objective s

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Acknowledgements

Our sincere thanks to the following team members for their hours of input and review. These members include:

Theresa Howell – Tesoro – NAER Board Member and Education Team Chair

Linda Butler – BMW Manufacturing

Tommy Lee Hayes Brown – MetLife – NAER Board Member

Sonja Hutchinson – BI – NAER Board Member

Dr. David J. Cherrington – Brigham Young University

Christi Gibson – NAER

Rita Maehling – Achieve Consulting, Inc., NAER Advisory Board Member

Pamela Pongetti – Pongetti Publishing

Roy Saunderson – Recognition Management Institute

Special thanks to _______ for donating the printing of these materials.

In addition, the following organizations have provided financial support for this educational endeavor.

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