Many executives strongly believe that they need to recruit and retain top talent. And to do so, they must foster meritocracies hiring, rewarding, and promoting the best people, based on their merit. Such approaches are no protection against demographic bias. When managers believe their company is a meritocracy because formal evaluative and distributive mechanisms are in place, they are in fact more likely to exhibit the very biases that those systems seek to prevent. To create more meritocratic systems, companies should promote organizational accountability and transparency in three key areas: 1. processes and criteria, 2. outcomes, and 3. audiences. Setting up a pay-for-performance system that is both accountable and transparent does not require a cumbersome bureaucracy. In fact, it can be quite simply done.
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