Achieving Meritocracy in the Workplace (Implementing Organizational…
Achieving Meritocracy in the Workplace
the most progressive companies have created formal systems for ensuring applicants and employees judged on skills, abilities, effort and performance regardless of sex, gender, age, class, origin or sexual orientation
when executives believe they have meritocracy, they're more likely to exhibit biases the system are in place to protect against
Paradox of Meritocracy
African American and Hispanic Americans earn less than equally performing White counterparts
warning for employers: efforts could trigger demographic bias
When ServiceOne not deemed meritocratic, offered females higher bonuses
managers may be self compensating
When ServiceOne deemed meritocratic, favored men over women
larger monetary benefits for men (12% higher raises)
when managers believe their company is a meritocracy because of formal evaluation and reward system, it usually isnt
Ensuring Meritocracy in the Workplace
How can companies guard against demographic bias and against Paradox of Meritocracy?
two areas that needs improvement: accountability and transparency
three changes to organizational system
performance reward committee to monitor reward decisions
senior management follow procedures for assigning rewards based on employee evaluations
reward committee can modify senior management pay decisions
Implementing Organizational Accountability and Transparency
executives can assess general degree of meritocracy by collecting data on processes and decisions concerning new hires, starting salary, merit-based pay, promotions, and other key career outcomes
analyze data to uncover demographic patterns
organizational accountability: set of procedures that make certain individuals responsible for ensuring the fair distribution of rewards among employees
organizational transparency: set of procedures that make relevant pay data available to certain individuals
Three Key Dimensions
Process and Criteria: How will performance-based pay be distributed among employees?
Assign responsibility for processes, routines, and criteria to be used-determine which of these will be visible
Outcomes: What rewards are being given to employees?
assign responsibility for which aspect/results of pay decisions will be measured for fairness and decide which of these will be visible
Audiences: Who is responsible for and who knows about pay processes, criteria and outcomes?
Identify who is accountable for pay processes and outcomes and to whom and determine who makes these and whom its visible to
Rise of Meritocracy
companies can develop into meritocracies by implementing evaluation and rewards systems that have accountability and transparency