Tuesday, February 12, 2008

Think Until You Understand

1) Risk Management is all about Identification, Classification, and Mitigation of risks.

2) “The mission should always be to help organizations achieve their project objectives and objectives of scope, quality, budget, and schedule within the context of the natural, social and political environment in which the project is being developed.”

3) "Optimizing performance at one stage of the process may not be beneficial overall if additional costs or delays occur elsewhere. For example, saving money on the design process will be a false economy if the result is excess construction costs."

4) "Fragmentation of project management among different specialists may be necessary, but good communication and coordination among the participants is essential to accomplish the overall goals of the project. New information technologies can be instrumental in this process, especially the Internet and specialized Extranets."

5) "Productivity improvements are always of importance and value. As a result, introducing new materials and automated construction processes is always desirable as long as they are less expensive and are consistent with desired performance."

6) Generally, project management is distinguished from the general management of corporations by the mission-oriented nature of a project. A project organization will generally be terminated when the mission is accomplished. According to the Project Management Institute, the discipline of project management can be defined as follows:-
Project management is the art of directing and coordinating human and material resources throughout the life of a project by using modern management techniques to achieve predetermined objectives of scope, cost, time, quality, and participation satisfaction.


7) "The majority of all development projects fail to meet their time and cost targets, with the overrun typically between 40 and 200 percent."

8) "The most precious and intangible quality of leadership is trust."

9) System integration needs are determined by the chosen decomposition and its resulting architecture. We map the structure of interactions in order to plan for integration.

10) Project Management comprises a body of methods and tools that facilitate the achievement of project objectives: within time, within cost, at the desired performance/specification level, and while effectively and efficiently utilizing the assigned resources.

Tuesday, February 5, 2008

I Love These Sayings

1) Needing someone is like needing a parachute. If it isn't there when you need it the most, chances are you won't be needing it again...

2) Give the world the best you have and the best will come to you.

3) Love wasn't put in your heart to stay, because Love isn't Love until you give it away.

4) Don't say you love me unless you really mean it, because I might do something crazy like believe it!

5) Everyone needs to be loved, especially when they do not deserve it.

6) Trouble is a part of your life, and if you don't share it, you don't give the person who loves you enough chance to love you enough.

7) Honest criticism is hard to take, particularly from a relative, a friend, an acquaintance, or a stranger. :-)

8) Silence is one of the hardest arguments to refute.

9) It is a wondeful mythical law of nature, that the three things we crave for in our lives - Happiness, Freedom, and Peace of Mind - are always attained by giving them to someone else.

10) Laziness is nothing more than the habit of resting before you get tired. :-)

11) When in doubt, tell the truth.

12) We all agree on the necessity of compromise. We just can't agree on when it's necessary to compromise.

13) "The church is near, but the road is icy. The bar is far, but we will walk carefully."-- Russian Proverb

14) "I want to seize fate by the throat."-- Ludwig van Beethoven

15) "Any man who has $10,000 left when he dies is a failure."-- Errol Flynn

16) It takes less time to do things right than to explain why you did it wrong.

17) Just when I think I have learned the way to live, life changes. :-)

18) It’s a great feeling when someone finds comfort in you. I feel content.

19) Do not cry if the Sun sets at the end of the day, because the tears will not let you enjoy the beauty of the Stars.

20) Some people are so fond of ill luck that they run halfway to meet it.

21) A great many people think they are thinking when they are really rearranging their prejudices.

22) In everyone's life, at some point of time, our inner fire goes out. It is then burst into flame by an encounter with another human being. We should all be thankful to those people who rekindle our inner spirit.

23) Don't wish it were easier, wish you were better.

24) The stupid neither forgive nor forget; the naive forgive and forget; the wise forgive but do not forget.

25) Obstacles are those frightful things you see when you take your eyes off your goal.

26) When I'm working on a problem, I never think about beauty. I think only how to solve the problem. But when I have finished, if the solution is not beautiful, I know it is wrong.

27) Speak when you are angry -- and you will make the best speech you'll ever regret.

28) The wise are instructed by reason; ordinary minds by experience; the stupid by necessity; and brutes by instinct.

29) Humor is a rubber sword - it allows you to make a point without drawing blood.

30) The argument from intimidation is a confession of intellectual impotence.

31) The thing I hate about an argument is that it always interrupts a discussion.

32) "A good friend can tell you what is the matter with you in a minute. He may not seem such a good friend after telling. " -- Brisbane

33) Hope is putting faith to work when doubting would be easier.

34) When everyone is against you, it means that you are absolutely wrong or absolutely right.

35) "Price is what you pay. Value is what you get." -- Warren Buffett

36) "Success is never owned; it is rented; and the rent is due every day." -- Rory Vaden

37) "To win without risk is to triumph without glory." -- Pierre Corneille

38) "When written in Chinese, the word crisis is composed of two characters - one represents danger, and the other represents opportunity." -- John F. Kennedy

39) "Feeling gratitude and not expressing it is like wrapping a present and not giving it." -- William Arthur Ward

40) "I can express no kinder sign of love, than this kind kiss". -- William Shakespeare in Henry VI (Act i, Sc.1)

41) Do you want me to tell you something really subversive? Love is everything it's cracked up to be. That's why people are so cynical about it. It really is worth fighting for, being brave for, risking everything for. And the trouble is, if you don't risk everything, you risk even more.

42) "A coward is incapable of exhibiting love; it is the prerogative of the brave". -- Mohandas Gandhi.

43) "It is possible to give without loving, but it is impossible to love without giving". -- Richard Braunstein

44) I am not as cold as you think. I am not falling; I am just on the brink. I am floating between this world and the next. I don't know where to go, as long as I am who I know. As long as I have myself, I dont care. Say what you want, say what you will, say anything. It wont change how I feel. I used to be so cold, and then I woke up and realised, you ARE cold. You are the one who leaves me, with your breath upon the foggy window of my soul, writing message of hate, that burns its way into my heart. And now I am wiping them all away. Slowly, slowly, one by one. The rest will fade with the rain when it comes.

45) "Love demands all, and has a right to all". -- Beethoven

46) So long as a man remains free, he strives for nothing so incessantly and so painfully as to find someone to worship.

47) "True love is giving all you have to someone you know you're going to lose." -- Ray H Wall

48) "When you fish for love, bait with your heart, not with your brain." -- Mark Twain

49) Any fool can know. The point is to understand.

50) Education is what remains after one has forgotten everything he learned at school.

Saturday, January 12, 2008

The Art of Persuasion

Jay A. Conger believes that contrary to popular belief, persuasion is NOT the same as selling an idea or convincing opponents to see things your way. It is instead a process of learning from others and negotiating a shared solution.

So, persuasion consists of four essential elements:

1) establishing credibility
2) framing to find common ground
3) providing vivid evidence, and
4) connecting emotionally

Credibility grows out of two sources: expertise and relationships. But, even, if a persuader’s credibility is high, his position must make sense – even more, it must appeal – to the audience. Therefore, a persuader must frame his position to illuminate its benefits to everyone who will feel its impact.

Persuasion then becomes a matter of presenting evidence – but not just ordinary charts and spreadsheets. The most effective persuaders use vivid – even over-the-top-stories, metaphors, and examples to make their positions come alive.

Finally, good persuaders have the ability to accurately sense and respond to their audience’s emotional state. Sometimes, that means they have to suppress their own emotions; at other times, they must intensify them.

Work today gets done in an environment where people don’t just ask – “what should I do?” They now ask – “why should I do it?” In this kind of environment, the art of persuasion is highly required to get things done.

At times, persuasion is commonly perceived as just another form of manipulation – devious and to be avoided. Certainly, persuasion can be used in selling and deal-clinching situations, and it can be misused to manipulate people. But, exercised constructively and to its full potential, persuasion supersedes sales and is quite the opposite of deception.

Dialogue happens before and during the persuasion process. Before the process begins, effective persuaders use dialogue to learn more about their audience’s opinions, concerns, and perspectives. During the process, dialogue continues to be a form of learning, but it is also the beginning of the negotiation stage. You invite people to discuss, even debate, the merits of your position, and then to offer honest feedback and suggest alternative solutions. That may sound like a slow way to achieve your goal, but effective persuasion is about testing and revising ideas in concert with your colleagues’ concerns and needs. In fact, the best persuaders not only listen to others, but also incorporate their perspectives into a shared solution. Persuasion often demands compromise.

Four ways not to persuade:
1) Don’t attempt to make your case with an upfront, hard sell.
2) Don’t resist compromise.
3) Don’t think persuasion lies only in presenting great arguments.
4) Don’t assume persuasion is a one-shot effort.

Thursday, January 10, 2008

Conversation between Neo and the Architect

The following is a conversation - the best conversation I have ever heard or have ever seen in a movie!! - from Matrix Reloaded.


The Architect: “Hello, Neo.”

Neo: “Who are you?”

The Architect: “I am the Architect. I created the matrix. I’ve been waiting for you. You have many questions, and although the process has altered your consciousness, you remain irrevocably human. Ergo, some of my answers you will understand, and some of them you will not. Concordantly, while your first question may be the most pertinent, you may or may not realize it is also irrelevant.”

Neo: “Why am I here?”

The Architect: “Your life is the sum of a remainder of an unbalanced equation inherent to the programming of the matrix. You are the eventuality of an anomaly, which despite my sincerest efforts, I have been unable to eliminate from what is otherwise a harmony of mathematical precision. While it remains a burden assiduously avoided, it is not unexpected, and thus not beyond a measure of control - which has led you, inexorably, here.”

Neo: “You haven’t answered my question.”

The Architect: “Quite right. Interesting! That was quicker than the others. The matrix is older than you know. I prefer counting from the emergence of one integral anomaly to the emergence of the next, in which case this is the sixth version.”

Neo: “There are only two possible explanations: either no one told me, or no one knows.”

The Architect: “Precisely. As you are undoubtedly gathering, the anomaly is systemic, creating fluctuations in even the most simplistic equations.”

Neo: "Choice. The problem is choice.”

The Architect: “The first matrix I designed was quite naturally perfect. It was a work of art, flawless, and sublime. A triumph equaled only by its monumental failure. The inevitability of its doom is as apparent to me now as a consequence of the imperfection inherent in every human being, thus I redesigned it based on your history to more accurately reflect the varying grotesqueries of your nature. However, I was again frustrated by failure. I have since come to understand that the answer eluded me, because it required a lesser mind or, perhaps, a mind less bound by the parameters of perfection. Thus, the answer was stumbled upon by another, an intuitive program, initially created to investigate certain aspects of the human psyche. If I am the father of the matrix, she would undoubtedly be its mother.”

Neo: “The Oracle.”

The Architect: “Please. As I was saying, she stumbled upon a solution whereby nearly 99.9% of all test subjects accepted the program, as long as they were given a choice, even if they were only aware of the choice at a near unconscious level. While this answer functioned, it was obviously fundamentally flawed, thus creating the otherwise contradictory systemic anomaly that if left unchecked might threaten the system itself. Ergo, those that refused the program, while a minority, if unchecked, would constitute an escalating probability of disaster.”

Neo: “This is about Zion.”

The Architect: “You are here because Zion is about to be destroyed. Its every living inhabitant terminated, its entire existence eradicated.”

Neo: “Bullshit.”

The Architect: “Denial is the most predictable of all human responses. But, rest assured, this will be the sixth time we have destroyed it, and we have become exceedingly efficient at it. The function of the One is now to return to the source, allowing a temporary dissemination of the code you carry, reinserting the prime program. After which you will be required to select from the matrix 23 individuals, 16 female, 7 male, to rebuild Zion. Failure to comply with this process will result in a cataclysmic system crash killing everyone connected to the matrix, which coupled with the extermination of Zion will ultimately result in the extinction of the entire human race.”

Neo: “You won’t let it happen, you can’t. You need human beings to survive.”

The Architect: “There are levels of survival we are prepared to accept. However, the relevant issue is whether or not you are ready to accept the responsibility for the death of every human being in this world. It is interesting reading your reactions. Your five predecessors were by design based on a similar predication, a contingent affirmation that was meant to create a profound attachment to the rest of your species, facilitating the function of the one. While the others experienced this in a very general way, your experience is far more specific. Vis-à-vis, love.”

Neo: “Trinity.”

The Architect: “Apropos, she entered the matrix to save your life at the cost of her own.”

Neo: “No!”

The Architect: “Which brings us at last to the moment of truth, wherein, the fundamental flaw is ultimately expressed, and the anomaly revealed as both beginning, and end. There are two doors. The door to your right leads to the source, and the salvation of Zion. The door to the left leads back to the matrix, to her, and to the end of your species. As you adequately put, the problem is choice. But we already know what you’re going to do, don’t we? Already I can see the chain reaction, the chemical precursors that signal the onset of emotion, designed specifically to overwhelm logic, and reason. An emotion that is already blinding you from the simple and obvious truth: she is going to die, and there is nothing that you can do to stop it.”

(Neo walks to the door on his left.)

The Architect: “Humph. Hope - it is the quintessential human delusion, simultaneously, the source of your greatest strength, and your greatest weakness.”

Neo: “If I were you, I would hope that we don’t meet again.”

The Architect: “We won’t.”

Tuesday, January 8, 2008

The Alternative Workplace

The concept of the alternative workplace is catching up with a lot of companies. And, this is, definitely, a good thing to ponder on. The Alternative Workplace (AW) is the combination of nontraditional work practices, setting, and locations that is beginning to supplement traditional offices.

Among the potential benefits for companies are reduced costs, increased productivity, and an edge in vying for and keeping talented employees. But, at the same time, AW is not for everyone.

The AW can be achieved by different means:
1) Having some workers on different shifts or travel schedules share desks and office space.
2) Satellite offices, wherein centralized facilities are broken up into a network of smaller workplaces that can be located close to customers or to employees’ homes. Satellites can diversify the risk of over-concentration in a single location, and broaden the pool of potential employees.
3) Telecommuting is one of the most commonly recognized forms of AW. Telecommuting means performing work electronically wherever the worker chooses. This, generally, supplements the traditional workplace rather than replacing it.
4) Home offices.

Most organizations find that a mix of AW options is better than a one-size-fits-all approach.

Advantages of AW:
1) Reduced costs for the companies.
2) Better hold on talented employees.
3) Less commuting to office. This helps the employees the most. They travel to work as per the need.
4) Less traffic and less pollution.
5) Under this setting, companies become a lot productive, as they tend to reward the results and not the “efforts” of their employees.
6) The work-meetings tend to be more productive, because when employees meet, they tend to be result-oriented.
7) Employees get more time to be with their families. This makes them happier and more satisfied. Thus, their productivity shoots up.
8) More flexibility to the employees. They work as and when they feel like.

Disadvantages of AW:
1) This is not for everyone.
2) Trade secrets should be well handled.

Monday, January 7, 2008

Unleashed 1.0 of “Rocket Science” of IT

A key component of green projects is integrated design, which leverages the expertise of multiple disciplines, such as architecture, engineering, and contracting to devise comprehensive solutions.

Development costs are only the tip of the iceberg. Maintenance, base of the iceberg, is the major cost incurring factor. Software maintenance comprises: error correction, 20 percent; adaptation, 20 percent; and enhancements, 60 percent.

Software becomes increasingly unstructured as it is changed.

We think flexibility means start working without even understanding what all need to be done!! Interpreting flexibility this way is suicidal!!

A system becomes intellectually unmanageable when the level of interactions reaches the point where they cannot be thoroughly: planned, understood, anticipated, and guarded against.

Prototyping is done to assess feasibility and to verify requirements.

Drawbacks of prototyping are:
1) Prototype evolves into a final product - which is less robust.
2) Documentation is often sacrificed.
3) Quality defects may cause problems later.
4) Hard to change basic decisions made early.
5) Can be an excuse for poor programming practices.
6) Not so easy to maintain.

The basic characteristics of an Incremental Model are:
1) Functionality produced and delivered in small increments.
2) Focus attention first on essential features and add functionality only if and when needed.
3) Systems tend to be leaner.
4) May be hard to add functions later.
5) Follows Waterfall down to implementation.
6) Different parts implemented, tested, and delivered according to different priorities and at different times.

Spiral Model is risk driven, and radius of spiral represents cost accumulated so far.

Drawbacks of CMM: treats people as assembly line workers, i.e. replaceable, and unreliable. Humans are subordinated to defined processes.

Characteristics of a good Requirement Specification are:
1) A structured document that sets out the services the system is expected to provide.
2) Should be precise so that it can act as a contract between the system procurer and software developers. Needs to be understandable by both.
3) Describes what the system will do, but NOT how it will do so.

Characteristics of a good Design Specification are:
1) An abstract description of the software that serves as a basis for detailed design and implementation.
2) Describes HOW the requirements will be achieved.
3) Goals and constraints specified in requirements document should be traceable to the design specification and from there to the code.

Contents of a Requirements Document should be:
1) Introduction
2) System model with Use-Cases
3) System evolution – fundamental assumptions on which the system is based and anticipated changes due to the hardware evolution, changing user needs, etcetera
4) Functional requirements – the services provided to the user. This includes timing and accuracy requirements.
5) Constraints – how the goals can be achieved. E.g. safety, hardware, programming languages, standards that must be followed, quality requirements, etcetera.
6) Priorities – guide tradeoffs and design decisions, if all the requirements and constraints cannot be completely achieved.
7) Interfaces to the environment – input and output interfaces and relevant assumptions about environmental components with which the software will be interacting.
8) Glossary
9) Indexes

Make program structure fit the problem structure.

Think of development as a TREE rather than a LINE.

Managing Diversity

According to David A. Thomas and Robin J. Ely, it is our belief that there is a distinct way to unleash the powerful benefits of a diverse workforce. Although these benefits include increased profitability, they go beyond financial measures to encompass learning, creativity, flexibility, organizational and individual growth, and the ability of a company to adjust rapidly and successfully to market changes.

The desired transformation, however, requires a fundamental change in the attitudes and behaviors of an organization’s leadership. And that will come only when senior managers abandon an underlying and flawed assumption about diversity and replace it with a broader understanding. Most people assume that workplace diversity is all about increasing racial, national, gender, or class representation – in other words, recruiting and retaining more people from traditionally underrepresented “identity groups.” This is ONLY partially true. Diversity is much more than this.

Diversity is not only “diversifying” the work place by bringing different kinds of people on board, but also “diversifying” the way the work is done at a workplace.

Three perspectives have guided most diversity initiatives to date:
1) The discrimination-and-fairness paradigm
2) The access-and-legitimacy paradigm
3) The learning-and-effectiveness paradigm – the best amongst these three

The discrimination-and-fairness paradigm: This paradigm is perhaps thus far the dominant way of understanding diversity. Leaders who look at diversity through this usually focus on equal opportunity, fair treatment, recruitment, and compliance with Equal Employment Opportunity requirements. Under this paradigm, nevertheless, progress in diversity is measured by how well the company achieves its recruitment and retention goals rather than by the degree to which conditions in the company allow employees to draw on their personal assets and perspectives to do their work more effectively. The staff gets diversified, but the work does not.

The access-and-legitimacy paradigm: This paradigm accepts and celebrates the differences. When this paradigm has taken hold, organizations have pushed for access to – and legitimacy with – a more diverse clientele by matching the demographics of the organization to those of critical consumer or constituent group. In some cases, the effort has led to substantial increases in organizational diversity. This paradigm has a lot of good things – kind of near to perfect – but one: once the organization appears to be achieving its goals, the leaders seldom go on to identify and analyze the culturally based skills, beliefs, and practices that worked so well. Nor do they consider how the organization can incorporate and learn from those skills, beliefs, or practices in order to capitalize on diversity in the long run.

The learning-and-effectiveness paradigm: This paradigm incorporates aspects of the first two paradigms but goes beyond them by, concretely, connecting diversity to approaches to work. Under this paradigm, companies incorporate employees’ perspectives into the main work of the organizations, enhance work by rethinking primary tasks, and redefine markets, products, strategies, missions, business practices, and even cultures. This relatively new paradigm for managing diversity transcends both – the fairness-paradigm that promotes equal opportunity for all individuals, and access-paradigm that acknowledges cultural differences among people and that recognizes the value in those differences. Yet this new paradigm lets the organization internalize differences among employees so that the organization learns and grows because of the internalized differences. Thus, employees can say – we are all on the same team, with our differences – not despite them.

Empowerment

According to Chris Argyris, human beings can commit themselves in two fundamentally different ways: Externally and Internally. Both are valuable in the workplace, but only internal commitment reinforces empowerment.

If management wants employees to take more responsibility for their own destiny, it must encourage the development of internal commitment. As the name implies, internal commitment comes largely from within. The more that top management wants internal commitment from its employees, the more it must try to involve employees in defining work objectives, specifying how to achieve them, and setting stretch targets.

External commitment is a psychological survival mechanism for many employees – it is a form of adaptive behavior that allows individuals to get by in most work environments.

Realize that external and internal commitment can coexist in organizations but that how they do so is crucial to the ultimate success or failure of empowerment in the organization. External commitment is all it takes for performance in most routine jobs. Unnecessary attempts to increase empowerment only end up creating downward spirals of cynicism, disillusionment, and inefficiencies. As a first precaution, distinguish between jobs that require internal commitment and those that do not.

To paraphrase Abraham Lincoln: You can empower all of the people some of the time and some of the people all of the time, but you cannot empower all of the people all of the time.

Friday, January 4, 2008

Six Dangerous Myths About Pay

In the “Harvard Business Review on Managing People”, an article by Jeffrey Pfeffer states that businesspeople are adopting wrongheaded notions about how to pay people and why. In particular businesspeople are under six dangerous myths about pay. Here, I present you my understandings of that research paper.

Myth #1: Labor rates are the same as labor costs.
Myth #2: Cutting labor rates will lower labor costs.

Myth #3: Labor costs represent a large portion of a company’s total costs.
Myth #4: Keeping labor costs low creates a substantial competitive edge.
Myth #5: Individual incentive pay improves performance.
Myth #6: People work primarily for the money.

Explanation of Myth #1 and Myth #2: A labor rate is total salary paid to the labor force divided by total time worked by them. But, labor costs take productivity into account, besides the total amount paid to the labor force. Thus, labor rates and labor costs are different. For example, consider two companies X and Y that are in the same business and produce the same products.

Case 1: Company X pays $10 per-hour to 100 employees for producing Z units of a product in 50 hours.

So, Labor Rate = (total salary paid to the labor force)/ (total time worked) = $(10*100*50)/ (50 hours) = $1000/hour
Labor Cost = $50000

Case 2: Company Y pays $15 per-hour to 100 employees for producing Z units of the same product as Y does in 30 hours.

So, Labor Rate = (total salary paid to the labor force)/ (total time worked) =
$(15*100*30)/ (30 hours) = $1500/hour
Labor Cost = $45000

Now, see, although Labor Rate at company Y, $1500/hour, is higher than the Labor Rate at company X, $1000/hour, but, still, Labor Cost at Y, $45000, is lower than the Labor Cost at X, $50000.

How is this possible? This is possible simply because of higher productivity demonstrated at company Y than that at company X. The labor force at Y finished the same job in lesser number of hours than did the labor force at X, keeping the quality of work the same. And, this theory of productivity is true in, almost, all the fields of businesses.

Case #1 and Case #2, mentioned above, also explain Myth #2 – just by lowering the labor rate, it’s not possible to reduce the labor cost. Productivity is something that should not be overlooked. In order to remain competitive in the market, a company cannot afford to live with these two myths.

Explanation of Myth #3: Managers who mix up labor rates and labor costs also tend to accept Myth #3 that labor costs are a significant portion of total costs. Sometimes, that’s true. It is, for example, at Accounting and Consulting firms. But, the ratio of labor costs to total costs varies widely in different industries and companies. And even where it is true, it’s not as important as many managers believe. One of the reasons why the confusion over costs and rates persists is that labor rates are a convenient target for managers who want to make an impact. Labor rates are highly visible, and it’s easy to compare the rates you pay with those paid by competitors or with those paid in other parts of the world. Moreover, labor rates often appear to be a company’s most malleable financial variable. It seems a lot quicker and easier to cut wages than to control costs in other ways, like reconfiguring manufacturing processes, changing corporate culture, or altering product design.

Explanation of Myth #4: Those who swallow this myth may neglect other more effective ways of competing strategies, such as through quality, service, delivery, and innovation. In reality, low labor costs are a slippery way to compete and perhaps the least sustainable competitive advantage there is.

Explanation of Myth #5: Individual incentive pay has been shown to undermine teamwork, encourage employees to focus on the short term, and lead people to link compensation to political skills and ingratiating personalities rather than to performance. Instead of individual incentive pay companies should opt for group-oriented compensation system. Some people might refute group-oriented pay-system on the basis that it induces “free riding” attitude in the team members. But, this is incorrect, because individuals do not make decisions about how much effort to expend in a social vacuum. Moreover, employees are influenced by peer pressure and the social relations they have with their workmates. Plus, sometimes, individual pay schemes go so far as to affect customers. For example, salespeople might piss the customers off by pestering them to buy the services or products that they are selling - in order to meet their targets. Another good reason is that in the typical individual-based merit pay system, the boss works with a raise budget that’s some percentage of the total salary budget for the unit. It’s inherently a zero-sum process: the more I get in my raise, the less is left for my colleagues. So, the worse my workmates perform, the happier I am because I know I will look better by comparison. This discourages people from sharing best practices and learning from other employees.

Explanation of Myth #6: People do work for money – but they work even more for meaning in their lives. In fact, they work to have fun. Companies that ignore this fact are essentially bribing their employees and will pay the price in a lack of loyalty and commitment.

Pygmalion Effect

In the popular book, "Harvard Business Review on Managing People," one of the articles is by J.Sterling Livingston, who presents "Pygmalion in Management." I present you the gist of that article. Moreover, I encourage you to read the complete article on your own in order to gain more insights.

The way managers treat their subordinates is subtly influenced by what they expect of them. If managers’ expectations are high, productivity is likely to be excellent. If their expectations are low, productivity is likely to be poor. It is as though there were a law that caused subordinates’ performance to rise or fall to meet managers’ expectations.

Cases available from scientific research now reveal:
1) What managers expect of their subordinates and the way they treat them largely determines their performance and career progress.
2) A unique characteristic of superior managers is the ability to create high performance expectations that subordinates fulfill.
3) Less effective managers fail to develop similar expectations, and as a consequence, the productivity of their subordinates suffers.
4) Subordinates, more often that not, appear to do what they believe they are expected to do.

Pygmalion effect is also noticed in the healing professions, where a physician’s or psychiatrist’s expectations can have a formidable influence on a patient’s physical or mental health. For instance, the havoc of a doctor’s pessimistic prognosis has often been observed. Again, it is well known that the efficacy of a new drug or a new treatment can be greatly influenced by the physician’s expectations – a result referred to by the medical profession as a “placebo effect.”

When an employee is treated by her manager as a super-person, she tries to live up to that image, and does what she knows a super-employee is expected to do. But, when an employee, with poor productivity records, is treated by her manager as not having “any chance” of success, this negative expectation also becomes a managerial self-fulfilling prophecy.

It is virtually impossible for a manager to mask her low expectations of her subordinates because the message usually is communicated unintentionally, without conscious action on her part. Indeed, managers often communicate most when they believe they are communicating the least - for example, the silent treatment communicates negative feelings even more effectively, at times, than a tongue-lashing does. Indifferent and noncommittal treatment, more often than not, is the kind of treatment that communicates low expectations and leads to poor performance.

In general, managers are more effective in communicating low expectations to their subordinates than in communicating high expectations to them, even though most managers believe exactly the opposite. Clearly, the way managers treat subordinates, not the way they organize them, is the key to high expectations and high productivity.

Managerial expectations must pass the test of reality before they can be translated into performance. Subordinates will not be motivated to reach high levels of productivity unless they consider the boss’s high expectations realistic and achievable. If they are encouraged to strive for unattainable goals, they eventually give up trying and settle for results that are lower than they are capable of achieving. In short, “dangling the carrot just beyond the donkey’s reach,” endorsed by many managers, is NOT a good motivational device.

The degree of motivation and efforts rises until the expectancy of success reaches 50%, and then begins to fall even though the expectancy of success continues to increase. No motivation or response is aroused when the goal is perceived as being either virtually certain or virtually impossible to attain.

What accounts for the difference between superior managers, who create high performance expectations that their subordinates fulfill, and weaker managers, who create low performance expectations that their subordinates fulfill too?
The answer, in part, seems to be that superior mangers have greater confidence than the weaker managers have in their own abilities to develop the talents of their subordinates. Contrary to what might be assumed, the high expectations of superior managers are based primarily on what they think about themselves – about their own ability to select, train, and motivate their subordinates. What managers believe about themselves subtly influences what they believe about their subordinates, what they expect of them, and how they treat them. If they have confidence in their abilities to develop and stimulate them to high levels of performance, they will expect much of them and will treat them with confidence that their expectations will be met. But, if they have doubts about their abilities to stimulate them, they will expect less of them and will treat them with less confidence.

Initial corporate expectations for performance (with real responsibility) mold subsequent expectations and behavior. Thus, initial bosses of new college hires must be the best in the organization. Unfortunately, however, most companies practice exactly the opposite. Although most top executives have not yet diagnosed the problem, industry’s greatest challenge by far is to rectify the underdevelopment, underutilization, and inefficient management and use of its most valuable resource – its young managerial and professional talent. According to me, the underlying causes of high attrition are underdevelopment and underutilization of a work force that has high career aspirations. Moreover, a “generation gap” between bosses and subordinates is another significant cause of breakdown. Many managers resent the abstract, academic language, and narrow rationalization characteristically used by recent graduates.

Industry has not developed effective first-line managers fast enough to meet its needs. As a consequence, many companies are under developing their most valuable resource – talented young men and women. They are incurring heavy attrition costs and contributing to the negative attitudes young people often have about careers in business.

The challenge is clear: to speed the development of managers who will treat subordinates in ways that lead to high performance and career satisfaction. Managers not only shape the expectations and productivity of their subordinates, but also influence their attitudes toward their jobs and themselves. If managers are unskilled, they leave scars on the careers of young people, cut deeply into their self-esteem, and distort their image of themselves as human beings. But, if they are skillful and have high expectations, subordinates’ self-confidence will grow, their capabilities will develop, and their productivity will be high. More often than one realizes, the manager is Pygmalion.