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Achieving Meritocracy in the Workplace (Paradox of Meritocracy (Experiment…
Achieving Meritocracy in the Workplace
Meritocracy
Definition: hiring, rewarding, and promoting the best people based on merit
Progressive companies create systems: solely on effort, skill, ability, and performance
Demographic bias still exists in the system
"The very belief that an org is meritocratic may open the door to biased, nonmerit-based behavior when managers make key individual-level career decisions.
Paradox of Meritocracy
If a mgr believes the org is meritocratic based on formal evals & reward systems, it probably isn't.
Experiment: one statement was meritocratic and one was not
Meritocratic: favored male employees
Non-meritocratic: female employees received higher bonuses
May explain "persistence of gender and race-associated wage disparities.
What causes it?
1) Mgrs believe org is meritocratic, leading to unintentional bias
2) Unlikely actions will be taken as prejudiced, less prone to guard against stereotype influences
Experiment: implications of gender, race, and natl origin of HR systems.
Compared relationship b/w merit-based salary growth and performance evals
Over long term, women and minorities received lower salaries than white men.
Performance reward system was flawed as it allowed for bias at various levels.
Typical eval process: lends itself to biases w/ respect to gender, race, nationality, and other personal factor
Ensuring Meritocracy in the Workplace
Tested two key areas: Lack of Organizational accountability, Limited transparency
Solution: adopt set of org procedures that incorporated both issues.
Three key changes to current system: performance reward committee was appointed to monitor reward decisions, Senior managers had to follow formalized system, performance reward committee was granted authority to modify pay decisions
Results: significant reduction in gender, race, and nationality gaps
Implementing Org Accountability and Transparency
1) collect data on processes and decisions concerning new hires, salary, merit-based pay, promotions, etc.
2) Analyze to check demographic patterns
Org transparency DEFINED: a set of procedures that make relevant pay data available to certain individuals
Org accountability DEFINED: set of procedures that make certain individuals responsible for ensuring fair distribution of rewards among employees
Three dimensions:
Processes and Criteria: How will performance-based pay be distributed among employees?
Outcomes: What rewards are being given to employees?
Audiences: Who is responsible for and who knows about the pay processes, criteria, and outcomes?