w6-Achieving Meritocracy in the Workplace copy.pdf (background : (recruit…
w6-Achieving Meritocracy in the Workplace copy.pdf
Merit-based reward practices can unintentionally lead to pay disparities based on gender, race, and national origin. Here’s how companies can use data, transparency, and accountability to prevent that.
recruit and retain the top???
foster meritocracies — hiring, re- warding, and promoting the best people, based on their merit.
judged solely by their efforts, skills, abilities, and performance, regardless of gender, race, class, national origin, or sexual orientation.
if a com. is merit., he is biased which he seeks to prevent.
unrecognized risks behind certain efforts to discourage bias.
meri- tocratic org. may open the door to biased, nonmerit-based behavior when managers make key individual-level career decisions. :
gender, racial, and other demographic disparities might persist in today’s organizations not only despite management’s attempts to reduce them but also because of such efforts.
The Paradox of Meritocracy
many com. think they are mer. bcs of the evaluation and reward sys. but they are not
in a experiement, they manipulated the sex, “raises and bonuses are based entirely on the performance of the employee”
tended to favor a male employee in same job
found that managers who were told that their orga- nization valued merit tended to award men
When ServiceOne was not explicitly presented as meritocratic, the managers awarded the female employees with higher bonuses
plausible explanation: managers may have been self- compensating for an assumed bias in the performance evaluation scores, given the language about manager discretion used in this nonmeritocratic condition that they thought might favor male employees.2
paradox of meritocracy may help explain the persistence of gender- and race-associated wage disparities
plausible explanation: when managers believe their company as a whole is meritocratic, they may become less vigilant about their individual actions, leading them to unintention- ally make biased decisions.
may have a false sense of confidence that their de- cisions in such an environment will be fair, objective, and impartial, leading to little self-examination
If not implemented carefully, such efforts can trigger demographic biases
found : over the long run, women and minorities received lower salary in- creases than white men
workers born outside the United States had annual salary increases that were 0.6% lower than U.S.-born employees.
Biases can also affect decisions regarding an employee’s salary increase, promotion, transfer, or termination.
in the Workplace
How, then, can companies guard against demo- graphic biases and avoid the paradox of meritocracy in people-related decisions
1) organi- zational accountability
the solution was to adopt a set of organizational pro- cedures that incorporated both accountability and transparency into the company’s performance re- ward system.
1)org acc.===fair distribution of rewards among employees
make pay decisions (process accountability).
not making fair pay decisions (outcome accountability).
relevant pay data available
ensure that pay distribution processes and criteria are known to certain individuals (process transparency)
make certain pay comparisons possible( outcome transparency
3 key changes to the existing system
1) reward committee was appointed to monitor reward decisions.
2)follow a formalized process for assigning rewards
3)the performance reward com- mittee was granted the authority to modify pay decisions made by senior managers.
found significant reductions in the gender, race, and foreign nationality gaps
accountability and the transparency mechanisms had been effective in reducing those pay gaps
This use of data to study people-based processes, decisions, and outcomes (often called people analytics) can help companies identify and fix biases in the workplace.9
3 (1) processes and criteria, (2) outcomes, and (3) audiences.
promote accountability and transparency in key or- ganizational people-based systems:
STEP 2. Outcomes: What rewards are being given to employees?
who will be responsible for ensuring that decisions are being driven by merit, and who will get to see the analyses of those data.
STEP 3. Audiences: Who is responsible for and who knows about the pay processes, criteria, and outcomes?
who decide? one director? one group
??? good? compare base salary with the average salary
STEP 1. Processes and Criteria: How will performance-based pay be distributed among em- ployees?
Toward the Rise of Meritocracy
ay raises were often given on the basis of seniority or granted automatically to all employees at the same percentage levels
traditional model of employment has gradually been replaced by merit- based reward systems
The design and im- plementation of such approaches, however, can also unintentionally lead to biases based on gender, race, and national origin.
can develop into meritocracies by implementing merit-based evaluation and reward systems that have both accountability and transpar- ency.