Objectivity Rules

Apr-Jun is that time of the year in corporations when there is frenzied action. Most of us are expectant of rises in line with the company, market and our personal shows the previous year. Having come through our 7th such cycle, we (both as managers and the managed) feel learned in a variety of ways.

First and foremost, this is the time of discontentment. Rightfully so, howsoever good the remuneration revision is, one fees short of expectations. And the manager, rightfully so again, feels that the subordinate is ungrateful. You just can’t be happy at this time. In our nascency, we dealt with it by explaining the merit behind it patiently. And then there was a phase in which we just rammed the decisions through. Now, we realize that both don’t work.

Objectivity rules, though.

If the goal is clear on what one had to achieve in the year and the compensation hike is in line with it (both for the past year and future), it helps reduce speculation. And if someone’s performance is not measurable in numbers, it’s best to have multiple judges so that the decision is unbiased.

There are some other obvious practices that we follow at OfBusiness. We make everyone aware (formally) of where they stand quarterly (if not more frequently) so that the end-year result is not a surprise. And we try our best to combine the pay with some variable/ ESOP (to the deserved), so that one does not feel that he/ she has to just show up at work and/ or watch the company grow.

Objectivity may not suffice for some, though. There will always be cases whence, despite the grid, the expectations will be higher. In our opinion, it is best to let them go.

Objectivity may lead to year-round competition and internal rat races, but that’s a relatively smaller price to pay.

Objectivity may not solve for “great potential yet poor performance.” While we have tried various iterations in solving for them, we now realize that it’s just tough luck; the onus should always be on performance to show up.

Lastly, both the manager and the managed can’t be happy in this time. But as long as they both think it was objective, or more objective than last time around, we all would have moved a thumping step ahead. Come July; likely, all will be forgotten anyway.

Read more from CEO speaks Column:-
– We shall Overcome…
– Never Too Late