Running Head: RECOGNITION

							                            Formal Recognition Programs

As organizations continue to compete for a shrinking work force, recognition becomes
an important part of the total work experience. Recognition can be an excellent way to
encourage higher performance and promote valued company behaviors. People tend
to do their best work when they are in an environment that makes them feel valued. But
be prepared, recognition involves a total commitment by the organization and its
leadership team.

According to World at Work, formerly ACA News, eighty-five percent of the largest
American organizations are using formal recognition programs to reward and motivate
employees. Organizations hope to achieve a number of goals through their recognition
programs. Eighty-four percent of responding organizations want to create a positive
work environment. Other goals include; reinforcing desired behaviors (seventy-six
percent), motivating high performance (seventy-three percent), increasing morale (sixty-
nine percent), and supporting organizational mission / values (sixty-eight percent).

Recognition programs can be either formal or informal. The following research focuses
on formal recognition programs that best practice organizations have implemented and
why they believe recognition is so important to the success of their organization. Some
of the key elements of a formal recognition program include:

          Plays an integral part of the total rewards program
          Involves a long-term commitment by the organization
          Is well communicated and understood by all key stakeholders
          Is intended to reward and recognize employees for their personal
           achievements and contributions that link to key competency behaviors as
           defined within the organization
          Encourages employee involvement
          Employs meaningful rewards
          Has measurements and standards in place to link recognition and
           achievement
          Stands on its merit as an important management tool

Best practice organizations believe that to have a successful organization you must
attract and retain successful employees. They understand what it takes to motivate,
reward, lead, and create a structure and culture that fosters the achievements of the
unique needs of every employee. Ensuring employees are intrinsically motivated will
create the foundation of any good recognition and reward system. The key to retention
is making sure the employees understand:

          What they are doing is of value to the organization
          Their work is appreciated by upper management and peers
          They are growing and learning
          They are having a positive impact on the people around them
          They are part of something important
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Formal Recognition Programs


A recognition program makes a statement about which principles are important to an
organization. Recognition should mirror the organization’s strategies, values, and
culture. Recognition programs should be created to:

         Drive performance improvement
         Establish a role modeling process
         Align all levels of the organization
         Allow for celebration and fun
         Enhance the spirit of the organization
         Increase positive feedback
         Contribute to employee satisfaction and retention

In a recognition program, an organization should consider questions pertaining to the
following behavioral standards:

       What behaviors / results are important in moving the organization forward?
         Why are they important?
       What expectations are held around those behaviors?
         How are they communicated?
         Are they well understood by employees?
       What kind of change does this represent and how might it be positioned?
       What was achieved and why is it important?
       What is the best way to positively reinforce these accomplishments /
        behaviors to sustain and even accelerate excellence?

It is also extremely important to the success of any recognition program that certain key
attitudes and behaviors be established and role modeled by upper management. If
upper management does not support the recognition program, the program will most
likely fail. Management must “walk the recognition talk.” The key attitudes and
behaviors modeled should be sincerity, fairness, appropriateness, consistency,
timeliness, and understanding the importance of the reward for the recipient.

Some of the obstacles and challenges that organizations need to consider when
implementing a new recognition program include:

       Gaining support from all levels of the organization
       Developing communication strategies
       Developing an implementation plan
       Training employees and managers on why the program is important and the
        types of behaviors and results the organization values
       Developing a mechanism to measure the success rate of the program. Some
        areas to measure might include employee satisfaction, attendance, turnover
        and productivity rates
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      Determining if additional human resource staff will be needed to administer
        the program
What Other Organizations Are Doing to Recognize and Reward Employees

Baptist Health Care

Baptist Health Care believes that people are the lifeblood of the organization and they
deserve recognition. They also believe there is a strong correlation between employee
commitment and customer satisfaction and that happy, committed employees work
more productively and provide better service. When Baptist Health Care employees
were surveyed about what they wanted most in their jobs, recognition for a job well
done was ranked one of the highest. Baptist Health Care believes reward and
recognition are critical to an employee’s success and excellent work performance. They
believe by valuing and recognizing staff they harness the power of motivation and
generate sustained levels of achievement.

Baptist Health Care recognizes any employee who makes significant contributions to
the mission, vision and values of the organization. Those who exceed customer
expectations, take initiative, add value to the service, and add a personal touch to
support the culture are also recognized.

Some examples of the formal recognition program Baptist Health Care has
implemented to support the key competencies and behaviors listed above include:

       The WOW Program is a corporate wide program designed to reward
        employee behavior that “exceeds standards of performance,” which vividly
        illustrates the values of the organization and inspires and raises morale to a
        higher degree. WOW forms are available to all employees to recognize each
        other. When employees collect five WOW forms they give them to their
        manager to be included in their employee file. WOW forms are also turned in
        for credit that can be used in the cafeteria, gift shop, and coffee shop.
       Champions and Legends are ordinary people doing extraordinary things.
        Champions exhibit exemplary behavior or perform specific deeds that help
        the community, patients, family members, coworkers or the organization.
        Champions are nominated and selected quarterly. They receive awards and
        recognition at department head meetings. Legends are selected annually
        from the Champion lists and are honored at the Baptist Health Care Board of
        Directors Retreat which they attend. They also receive a pin and a plaque.
       Bright Ideas Program gives employees a mechanism for submitting cost
        saving ideas and ideas that enable positive change. The program
        encourages a flow of ideas from entry level employees to senior
        management. It provides a central location to collect, process and implement
        best practices and offers numerous opportunities for individual, team, and
        corporate reward.
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These are just three examples of formal recognition programs that Baptist Health Care
has implemented to recognize what they call the lifeblood of their organization … the
employees.
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Southwest Airlines

With the start of the 21st century, technological, political, regulatory, demographic and
economic forces unleashed in the past will continue to exert pressures on organizations
to change to ensure their survival and success. Organizations need to become
increasingly strategic to succeed in an environment that is in constant flux. No one
knows this better than the airline industry. However, Southwest Airlines still continues
to flourish while other airlines are filing bankruptcy. Southwest Airlines believes that
human resource management is an integral and vital aspect in ensuring desired
employee behaviors and enhanced organization performance. It is clear at Southwest
Airlines that management wants employees to know that their extraordinary efforts are
valued. Some of the bottom line benefits they have linked to their environment include
being the most productive workforce in the airline industry, low turnover and attrition
rates, high creativity and innovation, great customer service and a positive public image.

Some examples of strategic recognition programs that the Southwest Airlines culture
committee implemented in 1992 to encourage and reinforce desired behaviors and the
organizations strategy include:

       Heroes of the Heart and the President’s Award Programs was created to
        honor the unsung heroes (the “behind the scenes” employees who customers
        rarely see). Each year one group is selected for its outstanding efforts in
        serving and supporting employees in other parts of the organization to receive
        the Heroes of the Heart award. The name of the winning group is painted on
        one of Southwest Airlines aircraft and an article on the group is featured in the
        company’s in-flight magazine.
       The President’s Award is given annually to employees who demonstrate
        values and virtues embodied in the organization’s strategy by showing
        compassion for customers, untiring support for coworkers, leading by
        example, keeping promises, following through, bringing fun to the job and
        embracing change. Each winner is given a plaque, monetary award, and a
        collage of photos taken during the award ceremony. The photos are also
        published the company’s newsletter.

There are several other awards / recognition programs at Southwest Airlines that have
been implemented which exhibit similar characteristics as the above in that they
promote behaviors pivotal in achieving the company’s goals and strategies.

Northeastern University

In 1999, Northeastern University’s Human Resources Team initiated the development of
a rewards and recognition program to reward individuals for exceptional contributions in
support of the vision. They believe that rewards and recognition programs send clear
and direct messages to managers and employees about what the organization deems
as important. By using employee focus groups, they learned that the employees had a
clear interest in monetary rewards. Based on the feedback they received, the program
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was designed so that employees can be recognized in the form of gift certificates, with
additional cash prizes up to $5,000 for extraordinary service. Northeastern University
believes that the strength of the rewards and recognition program lies in its strong
connection to the Northeastern vision and its ability to focus faculty and staff on the
behaviors and results necessary to help the university achieve its goals.

Motorola

Ten years ago, Motorola, a global electronics producer with approximately 145,000
employees world-wide, introduced a team program to handle many work tasks. At the
same time, the organization shifted its recognition program to be more team focused.
“Teams became integrated into most facets of operation,” said James Stoeckmann,
Compensation and Benefits Manager at Motorola’s Phoenix based sector. James
Stoeckmann also believes that the key to team success has been the use of coaching,
communications, training, performance management and reward systems. Several
recognition awards are used to enable individuals and teams to succeed, which include
team and group celebrations, spot bonuses, trips, dinners and small items such as
coffee mugs. Additionally, top performers have been given stock options and
gainsharing options. Management believes that since the recognition program has
been established, it has enhanced work productivity, which is a win-win for both the
employee and organization.

Texas Instruments

Texas Instruments, a global semiconductor organization offers a total compensation
strategy consisting of six programs: base salary, benefits, bonuses, profit sharing, stock
plans, and recognition programs. They believe these programs provide managers with
a balanced and effective portfolio of offerings to reward, recruit, retain, and motivate
employees. Employee focus groups, business managers, key stakeholders and the
Human Resources Department collaborated to gather input, obtain sponsorship, and
educate managers on the value and advantages of using recognition programs. A
primary reason for implementing a recognition program at Texas Instruments was to
elevate awareness and increase credibility of employee recognition as an effective tool
for improving employee and organization performance. The Texas Instruments
recognition program features three areas of service:

       Custom Orders – team shirt or jackets, promotional give aways, and
        personalized plaques
       Individual Awards / Just-In-Time Recognition – in stock inventory of movie
        tickets, logo items, and gift certificates
       Group Events (management of all aspects of group event planning, including
        food, entertainment, activities, transportation, and decorations). Examples
        are banquets, receptions, trips to sporting events, country ranch parties,
        afternoons at the movies and bowling parties
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Texas Instruments believes that the ongoing partnership with the Human Resources
Department and employees ensures that the program continues to stay current,
integrated, and effective to meet the needs of business today.
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Telus Communications

Telus, a telecommunications organization based in Edmonton, Canada recently was
one of two winners of the National Association Employee Recognition Best Practice
Award. Telus was honored for their recognition program entitled “Team Machine”.
Since “Team Machine” has been incorporated, paying more attention to performance
and rewarding it have been the major benefits of the program. “The program is linked to
their corporate values,” says Kendra Innes, Director of Performance Enhancement at
Telus. “We determined the kinds of things that we wanted to use as recognition
measurements. Behavior that supports corporate values and strategy is key”.

All 30,000 employees at Telus can earn points toward merchandise in an award catalog
each quarter. Points are then redeemed in Telus’ online catalog for merchandise, gift
certificates, or travel services, starting at 100 points for a key chain and ending at
35,000 points for a home entertainment system. Innes states, “We really wanted to
meet different ages and interests, we have a variety of awards that meet the needs of
everyone”.

A race car theme and logo support the Telus desire to encourage communication
among employees, values and hard work. Telus has implemented various levels of
awards to support their corporate values, which include:

       E-cards and messages sent via e-mail are given a daily basis for a job well
        done.

       “Accelerator” is the next level award, which recognizes employees who
        demonstrate at least one of the organization’s values and go above and
        beyond their everyday responsibilities. Winners get 1,000 points to be
        redeemed or saved for a gift of higher value.

       “Turbo Charge” awards 3,000 points to employees who demonstrate all four
        of the organization’s values, which also include strategy and cost savings. A
        committee has been formed to determine “Turbo Charge” recipients.

       The top prize award is the “Pace Setter”. Winners are invited by an executive
        member to a “Pace Setter” event at the end of each quarter. To celebrate
        their achievement, the employee receives a glass sculpture and card
        designed by the Inukshuk Indians, a wine and cheese party and the CEO
        pays tribute to them in the weekly newsletter.

Each organizational example above is customized to fit the individual and diverse needs
of that organization. Tailoring a successful program to fit your culture with a strong
emphasis on implementation will ensure positive results for your organization.