An organization is an amalgamation of people from diverse backgrounds, from people have different degrees, are different in terms of religion, gender, caste, creed. An organization that takes them all together in a harmonious manner in the same direction in order to achieve the organizational goals are the ones which are highly successful and make good profit and are also highly regarded by society in the long run.
Most people in an organization start off at the same level, with diverse degrees and thought process most get into the bandwagon at said post except for quite a few who directly make their way into higher posts at the beginning itself courtesy their prowess and impeccable business acumen. But then most people see others as a way of competition and would want to evaluate their performance with them, and as they say comparison is the best form of flattery. Most employees working in established companies compare their salaries with other employees who could be their colleagues or bosses.
This can be seen as a way of knowing where exactly they stand, how far they have managed to grow, what was their initial income and current income, in comparison to others in the organization.
It leads to intense thinking often spurting out results and leading them to think in terms of work performed, ethics followed, relation with others and act as a guide to the employee to work in a manner such that they begin to work in terms of what the organization seeks rather than what they have been doing all along .It throws critical insights into one’s performance and highlights the need for healthy competition within the organization; it prompts an employee to do better than the others
And then it does work as an ego booster to see how well one has been doing and how much better they are than the rest and acts as a way of highlighting one’s own success and how far they have climbed the ladder of success and how far are they away from being at the top of their game.
It also can highlight any mistake on the part of organization which may leave out on any emoluments or you feel a certain bonus was meant for you hasn’t been given to you and one can present an upright figure regarding the matter and get what they truly deserve.
Not only does it encourage conversation amongst employees who want to know what the others employees have done in order to reach where they have, it also prompts work in the same direction and achieve success themselves. An increase in productivity could be the most amazing result, with highly committed employees who realize what they have to do and also feel that the organization has valued the individual they are.
While the good effects could possibly have a negative take on the matter to when competition gets out of hand, messy fights can affect the integrity of the organization, many employees feel disgruntled and de-motivated and tend to feel their work hasn’t been sufficiently valued and their productivity tends to fall. It can also lead to increased repatriation again affecting the well-being of the organization. Along with poaching from other companies who begin to offer better pay for the same work.
But there have been instances of how companies in the past have implemented it and found immense success in doing so. Whole food has been an example of it, it believes shared information helps bring about unity within employees while fostering competition and gains in the form of increased productivity. They treat all of its employees as insider and believe no information should be kept away from them.
While the company has been highly successful in integrating professionalism, ethics, values and logic, not all company may find success in it. But then there is no harm in giving things a shot, new HR practices are the need of the time and a well suited one can go a long way in having stable and committed employees.