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Based on experience, both working in the trenches and from the outside as a consultant, I have found that honesty doesn’t seem to be the best policy in corporate America. When it comes to “evaluating” (or recognizing as I like to refer to it as) people fairly about their work, most companies fail miserably. Jack Welch, former CEO of General Electric Company and author of the book Winning, says that companies who don’t give honest and descriptive feedback cannot expect to be very effective at managing them. Instead, leaders need to make sure the proper steps are in place to the people within the organization receive relevant feedback.

Feedback needs to be based on criteria that both management and employees agree on. These types of evaluations can come in many different forms. I’ve found that most companies base wage compensation increases on performance evaluations that occur annually and sometimes, semi-annually. But more frequent and informal feedback can make all the difference in the world. Welch writes, “I’ve evaluated twenty or so direct reports with frequent handwritten notes that included two pieces of information: what I thought the person did well, and how I thought they could improve.”

According to Welch, even organizations that have good evaluation systems are usually missing the most important element…integrity. Since most organizations focus solely on the bottom line, managers most often overlook personal conduct when result is big profit. To close, merit-based awards and proper recognition, Welch says, should be a standard. After all, everybody likes to know that their commitment and efforts are appreciated.

I’d like this to be an open discussion using the comment box below… how are you maintaining a transparent work environment?