Reversing the Ratchet Effect


How can managers set performance targets that their teams will want to not just meet, but exceed?

It's a familiar problem to anyone who is compensated or evaluated based on measurable performance goals:  sometimes the stars align, and performance targets are easily achieved. Instead of continuing full steam ahead, though, employees slow their pace, concerned that if they can "easily" achieve this goal, their manager may set the the next one too aggressively.  In her Strategic Finance March 2021 article, "Reversing the Ratchet Effect," Dr. Margaret Shackell describes the missing element in these manager-employee relationships:  trust.  

Dr. Shackell has effectively translated the recent academic research finding that trust between a manager and subordinate can reduce the negative effects of the ratchet effect. For the COO or Second-In-Command Executive, this article has presented how we might design our organizational culture, incentives, and communication to produce the most favorable outcomes in the operational productivity of our businesses.
 
Learn more with us on June 17th as we welcome Dr. Shackell at a joint FEI / FENG event! 

 
Free to FEI and FENG members | Register via FEI Nashville website | 1.0 Credits CPE | Conducted via Zoom

 

Speakers

Dr. Margaret Shackell

Assistant Professor
Ithaca College

Credits

1.00 CPE
Basic

Method

group-internet-based

Field

Business Management and Organization, Non-technical

Prerequisites

none

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