Posted: July 27th, 2022

Ethics

 

EthicsThis little story illustrates an important point about the connection between
performance appraisal and compensation. An organization can choose to award
compensation increases based on performance, or based on in#ation, or based
on position and longevity, or based on some combination of these factors.2
However, these are di”erent bases for making compensation decisions, and the
organization needs to be clear about what it is trying to do in order to manage compensation rationally. Managers generally seem to prefer merit systems,
whereby at least part of any increase in compensation is based on performance.
Some workers, particularly those in union environments, seem to prefer some
basis other than merit, so that individual managers will have no say in which
workers receive how much increase in their compensation.
Since this book is primarily written for managers, I suspect that most readers
will take it for granted that merit compensation is the right and natural way to go.
But, as I regularly remind my MBA students, the whole world is not made up of
people who think that managing is a !ne and noble profession, and that it is so
complex that an investment of time and money such as they are making is helpful
in learning how to do it well. Less than three miles from the university where
I teach is the world-famous Las Vegas Strip. There, in huge hotel-casinos, tens
of thousands of union workers perform tasks that provide services to millions of
visitors annually. Many of these workers have higher pay and bene!ts than they
would otherwise have because of the in#uence of the Culinary Union. Ask these
workers if management is a !ne and honorable profession, and many of them will
say no. One of the reasons that some workers pay union dues is their perception
that they will fare better as employees with a union than without one.
鐨鑔鑕鑞鑗鑎鑌鑍鑙鐅‰鐅鐗鐕鐖鐛鐓鐅鐷鑔鑚鑙鑑鑊鑉鑌鑊鐓鐅鐦鑑鑑鐅鑗鑎鑌鑍鑙鑘鐅鑗鑊鑘鑊鑗鑛鑊鑉鐓鐅鐲鑆鑞鐅鑓鑔鑙鐅鑇鑊鐅鑗鑊鑕鑗鑔鑉鑚鑈鑊鑉鐅鑎鑓鐅鑆鑓鑞鐅鑋鑔鑗鑒鐅鑜鑎鑙鑍鑔鑚鑙鐅鑕鑊鑗鑒鑎鑘鑘鑎鑔鑓鐅鑋鑗鑔鑒鐅鑙鑍鑊鐅鑕鑚鑇鑑鑎鑘鑍鑊鑗鐑鐅鑊鑝鑈鑊鑕鑙鐅鑋鑆鑎鑗鐅鑚鑘鑊鑘鐅鑕鑊鑗鑒鑎鑙鑙鑊鑉鐅鑚鑓鑉鑊鑗鐅鐺鐓鐸鐓鐅鑔鑗
鑆鑕鑕鑑鑎鑈鑆鑇鑑鑊鐅鑈鑔鑕鑞鑗鑎鑌鑍鑙鐅鑑鑆鑜鐓
鐪鐧鐸鐨鐴鐅鐵鑚鑇鑑鑎鑘鑍鑎鑓鑌鐅鐟鐅鑊鐧鑔鑔鑐鐅鐨鑔鑑鑑鑊鑈鑙鑎鑔鑓鐅鐍鐪鐧鐸鐨鐴鑍鑔鑘鑙鐎鐅鐒鐅鑕鑗鑎鑓鑙鑊鑉鐅鑔鑓鐅鐛鐔鐗鐚鐔鐗鐕鐗鐗鐅鐜鐟鐙鐖鐅鐦鐲鐅鑛鑎鑆鐅鐺鐳鐮鐻鐪鐷鐸鐮鐹鐾鐅鐴鐫
鐲鐦鐷鐾鐱鐦鐳鐩鐅鐬鐱鐴鐧鐦鐱鐅鐨鐦鐲鐵鐺鐸
鐦鐳鐟鐅鐖鐗鐙鐞鐕鐚鐞鐅鐠鐅鐯鑔鑘鑊鑕鑍鐅鐬鑎鑑鑇鑊鑗鑙鐓鐠鐅鐪鑙鑍鑎鑈鑘鐅鑋鑔鑗鐅鐲鑆鑓鑆鑌鑊鑗鑘鐅鐟鐅鐵鑍鑎鑑鑔鑘鑔鑕鑍鑎鑈鑆鑑鐅鐫鑔鑚鑓鑉鑆鑙鑎鑔鑓鑘鐅鑆鑓鑉鐅鐧鑚鑘鑎鑓鑊鑘鑘鐅鐷鑊鑆鑑鑎鑙鑎鑊鑘
鐦鑈鑈鑔鑚鑓鑙鐟鐅鑘鐙鐗鐛鐙鐞鐗鐝

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