The single most basic behavior is to perform in ways that we are rewarded for. The first lesson we learn is directly related to being rewarded for crying. A baby cries and it is fed or its diapers are changed. Later on in life, we learn that if we cry we get picked up and held. We grow a little older and we are told to clean our plates and we'll get dessert, or to be good, and Santa Claus will bring us a new toy. Later on we are told that if we clean our room, we can go to the movies. Yes, all through our lives, we have been rewarded for acting out a desired behavior, and punished when our behaviors are undesirable as defined by someone else or even our own selves. These rewards make eating the asparagus and mowing the lawn and being good a little more worthwhile. It is important to note that all these rewards occur relatively close to the time that the desired behavior occurs. If we didn't get the dessert until the following Sunday, or go to the movies until next month, or if mother tells us on February 2nd that if we are not good, Santa Claus will not bring us a toy, the asparagus would stay on the plate, the clutter on the floor, and we probably would continue misbehaving. Three factors affect the degree to which the desired behavior is reinforced. They are: Type of reward Elapsed time between when the desired behavior occurred and the time the reward is given The extent to which the behavior meets or exceeds the performance standard

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Up to this point, we have discussed direct, tangible, positive stimuli that reward people for acting in a desired behavior mode. There are two other ways to encourage people to behave in a desired manner. They are: Negative stimulation Humanistic stimulation (recognition) Negative stimulation takes the form of physical or mental pain within the individual(s) who do not perform in the desired manner. For example, telling a child who wants to go outside to play that she will have to stay at the table until her plate is clean, or spanking a child because his room is not picked up, or taking away television rights because he does not have his homework done, are all examples of negative stimulation. A manager applies negative mental stimulation to an individual when the manager explains why the person is not performing at an acceptable level. Often, employees will subject themselves to mental pain. We have all walked out of a meeting thinking, "Why did I say that? How dumb can I be?" Really good, conscientious employees will take themselves to task when they do something wrong far more than their managers will. Humanistic stimulation, often called recognition, occurs when people receive satisfaction because they recognized that they have mastered a desired behavior, or when others are made aware of the individual's desirable behavior. Although recognition is an intangible reward, its positive impact on behavior is usually very effective and should never be overlooked. For example, we put a good report card up on the refrigerator door, recognizing that the child has done a good job, or a teacher displays a particularly good drawing in the classroom. Whenever possible, direct and humanistic stimulation should be combined. For example, when someone is promoted, the promotion is indirect stimulation, and the increased salary is direct stimulation. Often, management thinks about rewards and recognition as two separate activities. In truth, recognition is just one element of a total reward structure that is needed to reinforce everyone's desired behavioral patterns. As Don Roux, a Minneapolis-based sales and marketing consultant, stated, "They (incentive programs) both motivate people to perform some task or achieve some goal by offering rewards. The desirable performance is rewarded, and rewarded behavior tends to be repeated."

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The complexity of today's environment and the sophistication of today's employees make it necessary to carefully design a reward process that provides the management team with many ways to say thank-you to each employee, because the things that are valued by one individual may have no impact upon another. In addition, the reward process needs to be closely aligned with the organization's personality. The reward process that functioned well in the 1970s is probably inadequate today because the personalities of most organizations have undergone major changes. The influx of women and various minority groups has had a major impact on the way the reward process needs to be structured. In today's environment, men's attitudes have changed. The male population is aging and men are often not the sole breadwinner for the family, causing them to be less financially driven. Because of this, it is easy to see, for example, why time-and-a-half pay is no longer a satisfactory reward for giving up a Saturday for many employees. It is for these reasons that we need to take a fresh look at our reward process to upgrade them so that they meet the needs of today's organizations and their aggressive goals. Vince Lombardi said, "Winning isn't everything. It's the only thing." This is true for many people, but for others it is enough to help someone else win. At the Olympics, only one man stood on the top platform to receive the Gold Medal for cross-country skiing, but without the many people standing along the route to give him water, he would not have won. To these little people (and there are a lot more of us little people than there are Gold Medal winners), often recognition is simply having someone else acknowledge your worth. Recognition is something everyone wants, needs and strives to obtain. Studies have shown that people classify recognition as one of the things they value most.

XEROX (case study):

In 1989 Xerox won the Malcolm Baldridge Award. The Xerox Business Products and Systems National Quality Award release stated:

Recognition and Rewards: Ensures that Xerox people are encouraged and motivated to practice the new behaviors and use the tools. Both individuals and groups are recognized for their quality improvements whether that takes the form of a simple thank you or a cash bonus.

That highlights a very important point. Up to now, we have been talking about rewarding individuals, but that is not enough. In today's environment, the organization needs to encourage teams of people to work together to provide the most efficient, effective and adaptable organization. If we reward only individuals, we develop an organization of prima donnas who are only interested in doing things that make them look good. It is for this reason that your reward process must include both individual and group rewards.

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