Career Management – Motivation Theory 2020
“Profit sharing” through ESOP: Owner Managers. Making owners out of employees and making employees out of owners is the best way to describe the current organizational scenario. Owners of yesterday have chosen to get to work alongside their employees and are forming working boards, creating corporate governance committees and demonstrating ethical and intellectual relationships with thir employees and their intellectual contribution.
Employees who create and make new things happen are now sure of their share of the profits and royalty that would emerge from commercializing their contribution.
There are of course exceptions to what is stated. A country would never be deprived of a share of unscrupulous employers and owners who run their fiefdoms believing all that happens in the public limited company belongs to them personally. Some of them having cheated the shareholder of his/her wealth are now using the knowledge economy to dupe the employee of his/her contribution value. This would change but only over time.
A large bandwagon of dot com companies emerging out of oil merchants, yarn manufacturers, diamond traders and butchers is only reflective of this greed for wealth without working.
A habit formed over decades of protectionist policies towards owner managed companies and indulging them to retain management control and siphon corporate wealth into their personal trusts and family legacies are all visible learning’s of our economy.
After all how much of shareholder protection exists through regulatory mechanisms realistically.
Corporations that earn through a parallel economy and show reduced profitability continue to survive successfully. Intellectually advanced employees have figured this out quite clearly and are now willing to demand their value. ESOP is a clear way to demonstrate faith and willingness to share wealth. ESOP has come in place of individual valuation and creating brands out of employee value. As individuals and their intellect gain an advantage commercially ESOP provides the system for sharing capital gains.
Corporations that realize individual potential and are willing to pay a price for retention through means not defined traditionally have winning formulae of co ownership. Equity is the intellectual equity and the value is several times more than what can be gained through PE multiple and stock market sentiments.
ESOP programs should be evaluated for its transparency and earning capability for the recipients
ESOP, perhaps real shareholding, is necessary in many situations. Not all ownership and wealth sharing issues are resolved through a “contingent upon factors” ESOP program
Making owners out of employees is easier said than done. Traditional owners understand wealth building for their employees relative to their current compensation and what additional value happens to the employee through the new dispensation gains. Clearly wealth is not restrictive to a past earning quotient. It is a function of the future earning potential.
The partners should squarely understand that wealth is being shared for the intellect of the recipient. No favors, only contribution
The Internet opens a wide avenue for intellectual stimulation and consequent business benefits. Companies would need to channelize employee energies towards maximization of their time and mind to generate wealth for both the individual and the corporation
Making angel investing in ideas of employees is a basic beginning for corporations to manage in a changing scenario
ESOP would not be construed as a benefit unless implemented with clear objectives and linkages with business bottom line performance
Organizations will endeavor to enhance “quality of life” beyond work. The need to make employees feel organizational physical environment conducive for working is but one part of the research finding. Of greater importance is the emerging demand for employee life and time after work and beyond jobs done and executed. These employees could well include the ESOP owners who in any event would determine their quality of life and work role contribution. As far as motivation is concerned the demands have come to include activities that are intellectually stimulating, physically stretching, emotionally enjoyable and commercially valuable.
The extended family concerns include employee spouse and children and their active support and approval towards employee commitment and concern for the firm. Is your spouse equally committed towards your current job role demands? If not what can the organization do to make it happen or better still plan for a replacement as soon as possible. The web offers an opportunity for employees to obtain into activities that are beyond work definitions yet adding value to individual development.
Organizations may do well to identify usage of the web and its interrelatedness and connections with the employee and his/her family. Making the employee do activities, learning, off site preoccupation, leadership work in the social circumstance and making the effort to facilitate a conducive environment and so on adds up to a quality of life beyond work. Nobody is objecting today to cellular phone calls. And this call could be to your home. Where traditionally some managers have never given their home numbers for business transactions, cell phone knows no boundary. Similarly work out of office environment by itself is neither resented nor abhorred overtly. It is despised when other connections are ruined owing to work in a physical and infrastructure deprived work environment.
A lap top, a mobile phone, palm top, electronic diary and so on make the new age employee more effective than ever before. More importantly while the employee is asking for more personal time and better quality of life beyond work all the office supportive gadgets and equipments make it impossible for people to get away from work, at any time! Now that is real.
A few factors need an HR review:
Is it desirable or possible to encourage spouses to work out of the same office?
Should organizations take an active interest in the personal life and activities of an employee? Is it desirable or correct?
Can extended work life into a home mean greater compensation and risk coverage for insurance and trauma care?
What is the scope and perspective over off duty quality of work life coverage?
Can this be an across geographies or as is the case in many organizations central policy functioning operates only in the head office location and key factory locations?
Effectively work hours go up in the case of all employees and definitely in the case of senior management
In reality would employees really want an external agency managing their quality of life beyond work?
Why would employee owners do it?
Satisfying “learning needs & self actualization” while at employment. Motivational aspects of a learning environment should not be left undebated. Causing self-actualization and a psychological profile that spans across people and their personal dispositions demonstrates distinctive and professional acceptance of the changing scenario. It is eminently possible to obtain a satisfying career achievement without going into the time frame of such careers. In other words careers are not a function of time or hierarchy. It is immaterial if a person has worked for short period of time in one company or if a person has worked for a longer period of time but has not kept pace with hierarchical charts and stagnated. Eventually this is a virtual vindication of meritocracy wherein performing artists have a permanent position in the theater. This is a reality check indicator to horizon employee disposition as against employer expectation.
While the employer is asking for a career employee it is also understood that the employee is needed only if he/she is consistently meeting with goals and targets. I wonder how many have come across a career employee who has over many performance cycles has not met with his/her goals. This is in contrast to an employee who wishes to make a career in a time frame sense yet would like tolerance to lean periods of performance. When an employer is unwilling to offer this window for relaxation it is evenly possible to not expect the employee to demonstrate career values towards the organization.
For the employee it is a self-realization moment when career plan is no longer a function of organizational time frames that build in strong and lean periods. This also focuses an employee to obtain learning skills that are beyond job competencies. Political and game playing skills to start with to manage lean periods, networking skills to have god fathers standby, visibility skills to make known to a larger community of one’s presence and contribution, information management (need to know/nice to know), managing top management for relationships and so on.
These extra constitutional skills are deemed necessary to enable the employee to manage upturns and down turns without been forced to exercise a choice.
Some leads are:
Make Career Planning Programs realistic without causing an anxiety to those who are unlikely to stay for longer duration
Make learning needs job and competency based with a focus on managing self-roles and job demands
Get employees to focus their energy on knowing, doing, achieving and feeling good at what has been accomplished. Let the process of self-actualization commence at a simplistic level of basics being fulfilled
Integrate learning and doing into job roles and create action learning programs to help employees understand easy and effective conversion
Matching individual and organizational outcomes through measurement of productivity improvements, innovation and creativity, long range planning effectiveness for the organizational outcomes and job satisfaction, security, personal development, family cohesion, goal orientation, performance focus and team effectiveness at the individual level
Making diagnosis of self learning capabilities and integrating it with job role priorities
Organizations are eventually collectivities and perform knowledge roles subject to individual members transferring their domain knowledge back into the organization. When organizations operate in a collective fashion despite positive or negative people reaction it borders on collectivism. Self-learning integrates with organizational collective when it is acceptable
Systemic management interventions that provides technology-supported solutions through electronic learning, peer training groups and other interactive medium
Delivery based “extravagant pay”.
Extravagance when used in an organizational context would have the cost managers raising eyebrows. The debate is not into wastage but in effective utilization of remuneration to connect performance. Organizations are expected to reward knowledge both puritanically and superficially unless knowledge has been interpreted to create value at the early stages of knowledge absorption.
There is a causal inference between knowledge creation and remuneration. Enhanced competitiveness arising out of advanced knowledge makes rewards a connective and necessary linkage. Corporate culture that have since followed compensation patterns that reflect market benchmarking, peer equivalence, inflation and job value based remuneration systems, now prefer paying beyond what is determined by the market.
As goals and performance standards become clear and outlandish so would the pay that connects it to the achievement of the goals. This is now more than a pattern and is more or a less a norm.
The research indicates connection between delivery and extravagant pay.
Some indicators are:
Compensation programs provide for budgets that can absorb new levels and skewing not normally seen in the salary curve
Reward programs no longer confine themselves to traditional bonuses and merit increases. Usage of ESOP’s, life style perquisites, rewards that enhance team effectiveness, milestone bonuses, knowledge pay, and competency bonuses are more frequent
Corporate reward programs link career programs and development training as a part of the compensation and development strategy. Improving competencies and skills of an employee is linked and connected with his/her compensation.
This is to help employees understand that helping them gain new competencies makes them employable both for the current and a future corporation
Extravagant pay as a usage would disappear, as the corporate financial benefit on account of superior performance would more than overwhelm any additional bonus that the employee or a team could earn. Sharing of wealth is inevitable in this context
Enhance “employability” and specialized skills and competencies. While we saw in the earlier finding the possibility of extravagant pay for superior performance, a context was also drawn to connecting personal development funded by the corporation as a remuneration system
Significant “empowerment” and Freedom to act
Company environment that recognizes the need for “personal growth”Posted by ZuzukiSX4 Posted on 14 Mar
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