Streamline Training & Documentation: Getting to Fair

Saturday, December 23, 2006

Getting to Fair

As with many desirable organizational policies, treating employees fairly is often easier said than done.

In an article in the March 2006 issue of the Harvard Business Review, Joel Brockner, a professor at Columbia Business School, discusses why managers often fail to use fair processes despite the proven benefits of doing so. Those benefits include lower legal costs, reduced employee turnover, increased candidness in discussions of problems, strengthened support for strategic initiatives, and a culture that promotes innovation.

Brockner's working definition of what constitutes fairness in the business context is:

... when [employees] feel heard, when they understand how and why important decisions are made, and when they believe they are respected ...¹ [from the executive summary]

Brockner points to the following as the most common barriers to managers' consistently practicing fairness when they are implementing processes such as downsizing and pay cuts:

Undervaluing process fairness. Because it's generally inexpensive to implement, it can be perceived as unimportant.

Overlooking some of the benefits of process fairness, such as building goodwill among employees. Goodwill pays off when an adverse situation — personal or organizational — arises, and employees who feel fairly treated extend themselves to cope with the situation.

Mistakenly thinking that one is practicing process fairness when 360-degree feedback makes clear that others disagree.

Counterproductive policies, such as forbidding managers to provide employees with an explanation of the rationale for downsizing. Such policies are often pushed by the legal department, which believes they minimize the risk of litigation. Meanwhile, the substantial benefit of letting employees know that all reasonable alternatives have been considered is ignored.

Fear of losing power if employees are consulted concerning business decisions. Often, the converse is true, i.e., managers enhance their ability to get decisions implemented well if employees have had a chance to provide input.

Avoidance of fraught interpersonal situations and difficult conversations.

So, what to do to correct the situation? The steps Brockner recommends are:

Training managers on the financial and other benefits of process fairness and the specifics of how to act fairly. The training should include practice in handling upcoming conversations with employees.

Conducting after action reviews once managers have had a chance to practice skills back on-the-job. Having managers discuss what worked and what needs improvement helps them continue honing their skills.

Preparing managers for the negative emotions that attend some of the things they have to do, e.g., telling people that their jobs have been eliminated.

Executives serving as role models, so others can see what process fairness looks like in practice.

Rewarding managers for practicing process fairness.

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¹ Distinct from process fairness is outcome fairness, "which refers to employees' judgments of the bottom-line results of their exchanges with their employers."

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Labels: Leadership, Management practices, Respect

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