Currently I am the first time in a commitment setting process within a world wide company and have to say that it is really interesting to watch the process. I know from different big companies that they are handling the commitment settings in a similar way so it’s not a big secrete that at the end of the process every subsidiary, department, division, group, down to every employee need to commit on goals for the financial year. Normally reaching these commitments is directly related to the bonus which is big part of the salary. Commitments can be very specific, e.g. revenue for a product in the financial year, or a little bit more vague like involving in the locale community.
Everybody want’s to reach his goals in our current society, first of course because it means more money for the employee, but there may be also other reasons e.g. acceptance within the company or the possibility to change position. On the other hand awards are often use to honor specific persons within a company for specific work they have achieved. This two components try to drive employees to do the best they can to support the company.
Several times you see commitments not aligned between the employees. This may happen by accident, which can easily happen in such big companies sometimes it may also be by purpose, because management thinks this will increase the revenue for the company. Individuals try to reach their goals because of different reasons as mentioned above and competition starts to grow within the company.I like competition but I am not sure if it is a good thing within a company.
As I have a software development background just imagine the following: Every developer of a team would be driven by a commitment like the number of lines he writes for a program. I don’t think a valuable and stable SW would be the output of this project.
Currently I am thinking about a, in my opinion, better way to structure and drive business within companies that gives also the possibility for employees to stand out and get credit for special performance. Input welcome…
What I see questionable about this is that