Imagine any small business that provides professional services (for example, a web studio).
There is revenue, there are expenses, there are salaries. The manager must decide how he will pay the salary.
Goals
What are the goals of the head? In my opinion, the main priorities are:
- profit growth or positive dynamics
- healthy team atmosphere
- quality of services provided
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Let's call it all a simple word for
efficiency .
Hundreds of books have been written on motivation and personnel management, and the theory and practice of this issue are highly developed.
This note is devoted to one question: is there a place in small organizations for negative motivation as a significant way to increase overall efficiency?
Positive motivation - bonuses, bonuses, interest, extra weekends, free lunches and other goodies
Negative motivation - fines, the need to work overtime due to the breakdown of terms, the reduction of bonuses. I will make a reservation that fines under Russian laws can only be implemented as “no premium”.
Roles, relationships and performance indicators
Using the example of a web studio, consider the roles, try to formulate quantitative performance indicators (KPIs) and understand what motivation is needed.
1. Head. Responsible for everything, affects everything. It can both receive a salary (not the owner), and dispose of the profit (the owner / owns a share).
KPI - profit / revenue / reputation.
2. Sales department. Project manager / sales person. Responsible for the flow of incoming orders and the quality of the initial identification of requirements. It affects him, charming customers and showing the business effect of cooperation with the company. It depends on the development department (the worse the product, the harder it is to sell it).
KPI is the volume of concluded contracts (read, revenue plan).
3. Development department. Project manager / technologist / designer / "filler". Responsible for secondary detection and satisfaction of requirements. Affect it the same. They depend on the sales department (the stupid the sales person, the harder it is to work later).
KPI - amount of work submitted (in the case of long projects, not only the formal delivery to the customer, but also the actual performance) can be taken into account
4. Non-production personnel: admin, cleaning lady, accountant, office manager.
KPI - no trouble (problems with software, dirt in the office, fines from the tax, spilled on the knees of the customer coffee).
Logic and intuition suggest that:
1. KPIs should be calculated based on the quantities for which the role is responsible and over which it has control. If a person’s salary depends on reasons over which he has no control, he will not work better.
2. Negative motivation has more negative emotional consequences than a negative one that has not been received.
3. The stronger the connection between the roles, the more important the business and conflict-free relationship between them.
Role Motivation
In this way:
1. The head should have a positive motivation “from the result”, which walks “in both directions”. If the result is negative, the salary may fall below the minimum. This is the strongest way to motivate him. Motivation according to the scheme: there is a plan - get a million, there is no plan - you will be fined, and you will lose interest in progress.
Negative value of the bonus should be an exception, as well as losses of a successful business.
2. Sales department. Only positive motivation, perhaps, with the installation of a minimum amount, with the failure to reach which, it is necessary not to lower the salary, but to change the employee.
3. Development department. Competent management and load planning and only positive motivation. More and better done - more received. It is impossible for the load to exceed the production capacity by more than 20 percent. The quick work begins.
The fact that both key departments live exclusively on positive motivation helps to establish the right constructive relationship within and between them.
4. Non-production personnel. You can set a salary and how to fine for shoals, and reward for zeal or simply no problems. The second option is purely human to me. But fines for such personnel are more likely than for core employees.
Some additional considerations
It is important that the manager and the colleague always inspire more positive emotions than negative ones. Not “here he is, reptile, hiding the counter”, but “it’s good that you’ve come, now we will quickly decide everything”.
It is necessary that each employee be motivated by the methods that influence him. For some, it is a salary, for someone access to resources for the development of their own project, for someone gifts from partners (invitations, discounts, etc.). Instead of a salary increase, a manager’s friend acquires a couple of the coolest video cards 1-2 times a year, and the admin is happy and happy.
Special caste - people who work with equal quality and diligence, regardless of the level of payment. I call these "tractor". As long as there is fuel and a field of work, it will plow. With such people, the key motivational factor is the recognition of professional achievements, good attitude, the ability to choose your job.
What to do if an employee disappointed the manager and led the project? Deadlines, serious mistakes in the performance of duties, etc.? It would seem that one can not do without a fine (as a rule, such events have financial and reputational consequences).
As a manager, you need the following:
- so that the situation does not happen again;
- that the guilty made conclusions;
- so that in the future no counterproductive elements appear in the employee's behavior (if you need him, of course).
For this, I consider the most effective detailed debriefing, drawing up an action plan to remedy the situation, mandatory adjustment of business processes and work rules, awareness of the causes of the incident (including the manager), and only as a special measure - the use of negative motivation.
PS An old story hit me on writing this note, when my friend (also the studio head) and I were simultaneously looking for similar staff, and he promised much higher salaries.
At the same time, in a personal conversation, he mentioned that anyway, no one promises to get the promise, as he is fined. He set plans and fined (up to 50%) for their failure. The staff for some reason changed with him very often.