Issue link: http://read.dmtmag.com/i/51841
MANAGEMENT sic set of personal value standards in which arriving to work on time simply isn't high on that person's priority list. Even the most active incentive program will be chal- lenged to modify the nature of this individual. It is hoped that potential employees who elicit behavior that is damaging to the tasting room and demoralizing to fellow staff will be identified in the interview process, but occasionally an outstanding interview prospect simply does not perform in the attained position. There are many options for deal- ing with these employees, includ- ing a candid discussion on tasting room standards, delivery of addi- tional training, or management out of the company with a formal dis- missal or reduced hours. However, a reactionary incentive program will rarely remedy the symptoms of a poor hiring decision. Many of us have been involved in reactionary incentive programs. For me, it happened when I was working as a cellar rat. The crew members, most of whom were untrained temporary employees, were not meeting undisclosed per- formance expectations. Therefore, our boss opted to award financial bonuses in an attempt to boost motivation. When incentives were disseminated, I was taken aside and asked not to discuss the spe- cific value, since I had received the largest amount: a check for the equivalent of 35 hours of work. As requested, I kept quiet, but as can be expected, most crew members did discuss the amounts of their bonuses. Eventually, I learned that my bonus was merely $100 more than the bonus amount of the second- highest-ranking crew member. To me, this implied that my bachelor's degree in enology and experience with three commercial vintages was the financial equivalent of nine extra hours' worth of labor com- pared to an employee with very little academic and practical expe- rience. (Luckily, my motivation for working with this winery was expe- rience, not money.) Ultimately, the increased produc- tivity of the crew was not sustained and within days it relapsed into the pre-incentive equilibrium. This illus- trates two important points: (1) The reactionary incentive program did not compensate for productivity issues stemming from hiring deci- sions; and (2) Individuals, including myself, tend to overvalue their con- tributions to the company. PROACTIVE PROGRAMS A proactive incentive program is used to maintain the top perform- ers in the tasting room and recruit the most qualified candidates for new positions. In this scenario, the goal for management is iden- tifying the behaviors, values and outcomes warranting incentives. Ultimately, this relates to the core mission of the tasting room, care- fully articulated job descriptions and an honest employee-evaluation process. If the goal is sales volume, the incentive may be a percentage of an individual's gross sales. If the goal is exceptional service, an incentive could be tied to customer evaluations. If the goal is develop- ment of the mailing list/case clubs, the incentive can be tied to the quantity of new members. The timing of providing incen- tives is important for maximizing employee productivity and accom- plishment. Incentives follow a posi- tive reinforcement schedule. Many schedules are discussed in psychol- ogy, but one of the most useful in training animals is "variable ratio," where positive reinforcement is randomly applied. If the goal is to train a dog to "shake," the train- ing can be maximized with inter- mittent application of the positive condition; i.e. the dog gets a treat two out of five times it obeys the command. Humans are animals. An execu- tive is focused on the next "acqui- sition;" a winemaker is focused 124 VINEYARD & WINERY MANAGEMENT JAN - FEB 2012 WWW.VWM-ONLINE.COM