February 1, 1999 – If You Screwed-Up, Would You Return Your Salary? Most of us work to earn a living and expect to have our job performance evaluated by our supervisor. When we perform at or above expectations we expect a reward – for example, an annual salary increase or, when we accomplish something exceptional, a bonus or promotion.
Of course, when people perform inadequately they may not receive a salary increase or a promotion, and the may find themselves in dead-end jobs. Few people, however, would return a portion of their salary as an acknowledgment of poor performance.
But executives of the Tokyo Stock Exchange did just that. In fall 1998 a new computer was introduced to handle futures and options trading. Glitches in the new programs lead to the suspension of trading in Japanese government bond futures for several sessions in late November and early December 1998. To atone for the foul-up, the stock exchange president returned 30 percent of his December salary. Two vice-presidents of the exchange returned 20 percent of their December salaries, and one managing director gave back 10 percent.
Web Exercise
What caused the Japanese executives to return their salary? Were their actions directed by the personnel policies of the Tokyo Stock Exchange? Did the executive's personal values dictate a voluntary, self-imposed punishment? Or did the values of Japanese culture leave them no option but atonement for the problems?
Although the following Websites are formal statements of organizational missions and policy, they may provide some clues to explain why behavior varies in different cultures.
This is the Website of the Tokyo Stock Exchange.
The Website for the New York Stock Exchange contains a wide variety of information on the Exchange's activities.
3. http://www.londonstockexchange.com
The London Stock Exchange site provides an overview of its operations and links to other sites.
E-Mail Exercise
Using e-mail, discuss the action of the Japanese stock exchange executives with your friends, colleagues at work, and fellow students.
Consider these questions for discussion: Under what conditions would you or your friends consider returning a portion of your salary because you were at fault for a mistake at work? Would this occasion ever arise? For example, if the error was so significant, would you expect to be fired instead of being able to return a portion of your salary?
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