How to Manage Employees for Success

Managing Employees with Rewards, not Punishments

Only two types of employees exist: Those who are successful and those who should be terminated. Only two types of incentives exist: Rewards and punishments. I believe employees in the successful category should be given only rewards. The outcome for the other category of employees is self-explanatory.

The Leo Effect: The Reward-Only Management Style

Leo was a Saint Bernard-Golden Retriever mix dog whom I never punished for bad behavior; I only rewarded him for his good behavior. He started with a good temperament, and with positive reinforcement, he lived 15 years as the gentlest, happiest, friendliest dog I’ve ever met. He succeeded at being exactly the dog any family would want.

Assumptions:

• Employees want to succeed. 
• Most employees are able to succeed. 
• Some employees are not able or willing to succeed in their current role. 
• Employees are most teachable when they are in the dopamine zone: Nonthreatened, comfortable with their place in the organization hierarchy, and happy. In this state, employees’ brains release dopamine, which makes them feel good, and it makes them teachable. Employees who are criticized or threatened are at Maslow’s Security/Safety stage; their internal resources are focused on surviving (fight or flight) and are not available to help the employee be taught, improve, or succeed at his or her job.   

Ideal Management Style

Positive reinforcement increases morale and places employees in a place where they are happy and are thus able to function at the dopamine-releasing level.  

• Managers strive to hire Leo employees and then help them improve and succeed by making them feel safe, ensuring they are important to the organization, encouraging their happiness, and giving them positive feedback and rewards. Employees who are capable and willing to succeed receive coaching, mentoring, and rewards only. Managers give them positive feedback, direction, ideas, and whatever tools they need to succeed. This doesn’t mean they don’t make mistakes or exhibit undesirable behavior. However, in a positive environment, mistakes and negative behaviors can be changed with coaching, not punishments. Because they are able and willing to succeed, they will figure out how to use the resources for their success. 
• Employees who turn out not to be Leos are given the opportunity to become Leos, or they are terminated.                          

Reward

Project success/milestone charts. Coaching. Mentoring. Peer kudos. Commendations. Compliments. Discretionary bonuses.

Terminate

Clear and specific criticism. Encouragement to move on. Performance plan. Termination.

See also Nineteen Rules for Managing Employees to Your Satisfaction