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    Home»Special»Editorial»Why every organisation eventually becomes the company it rewards
    Editorial

    Why every organisation eventually becomes the company it rewards

    Forget the values statement. The real culture document is written in every promotion, every bonus, every act of forgiveness, and every exit
    mmBy Dr. Prajjal Saha | HRKathaAugust 3, 2026Updated:August 3, 202610 Mins Read294 Views
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    There is a test that every employee in every organisation applies, usually without naming it.

    It has nothing to do with the values on the wall or the culture deck from the last offsite. It has everything to do with what they watch happening around them, week after week, year after year.

    Who moves up. Who gets rewarded. Who survives something they shouldn’t have. Who doesn’t survive something they should have.

    Four questions. The answers, accumulated over time, tell employees far more about an organisation than anything its leadership has ever said about culture.

    Who gets promoted

    Every organisation says some version of the same thing about promotion. Merit. Performance. Potential. Demonstrated capability over time.

    These are not wrong as aspirations. They are frequently inaccurate as descriptions.

    Watch a few promotion cycles inside any Indian organisation and patterns emerge that the stated criteria do not fully explain.

    The person who stays late gets promoted over the person who delivers the same work efficiently and leaves on time. The organisation says it values output. The promotion says it values presence.

    The person who agrees with leadership in meetings gets promoted over the person who challenges productively and is occasionally right when leadership was wrong. The organisation says it values diverse perspectives. The promotion says it values alignment.

    “The organisation does not build its culture through values statements. It builds it through the implicit message that every promotion sends to everyone watching.”

    The person with the right relationships at the right level gets promoted over the person with stronger results but fewer sponsors. The organisation says it values performance. The promotion says it values visibility.

    Each of these decisions, viewed individually, appears reasonable. A manager promotes the person they trust. A leader backs someone whose judgement resembles their own. A business rewards relationships that make execution easier. The problem is that employees never observe these decisions individually. They observe them collectively. Every person who did not get promoted draws a conclusion from the one who did. Those conclusions, multiplied across hundreds of employees and dozens of promotion cycles, become the organisation’s unwritten promotion policy. Eventually, they become its culture.

    The organisation does not build its culture through values statements. It builds it through the implicit message that every promotion sends to everyone watching.

    “The organisation does not build its culture through values statements. It builds it through the implicit message that every promotion sends to everyone watching.”

    Who gets bonuses

    Bonus allocation is the most financially legible expression of what an organisation actually values.

    Most organisations have frameworks. Ratings systems. Performance bands. Standardised processes designed to make compensation decisions consistent and defensible.

    Inside those frameworks, enormous discretion remains. And the exercise of that discretion reveals priorities that the framework itself does not articulate.

    The person who managed upward effectively, who was visible during the review cycle, and who ensured the right people saw the right work at the right time often does better than the person who delivered quietly and assumed the results would speak for themselves.

    Revenue-facing roles tend to receive better rewards than support functions, regardless of whether the relative contribution justifies the gap. The organisation says all functions matter. The bonus says which functions matter more.

    The employee identified as a flight risk receives a retention bonus that can exceed what a loyal, tenured employee receives as a performance reward. The organisation says it values loyalty. The bonus structure quietly suggests that the threat of departure is valued more than the fact of commitment.

    What an organisation rewards financially is not a secondary signal. It is a primary one. Employees understand this with precision that organisations rarely acknowledge.

    “What gets forgiven reveals the hierarchy of protection inside an organisation.”

    Who gets forgiven

    This is perhaps the most revealing of the four questions. It is also the one organisations are least willing to examine honestly.

    Every organisation has policies. Standards of conduct. Zero tolerance for certain behaviours. Processes for handling violations.

    What those policies rarely acknowledge is that their application is not always uniform.

    A senior leader who behaves badly towards their team gets counselled. Gets moved to a different role. Gets managed around. The behaviour is acknowledged. The consequences are calibrated to the seniority of the individual rather than to the seriousness of the behaviour.

    A junior employee who commits a comparable offence is processed differently. The policy is applied. The consequence follows.

    The star performer who consistently mistreats the people working for them is protected because their numbers are good. The message this sends is not subtle. Performance exempts you from conduct standards. The team being mistreated understands this. So does everyone watching.

    The complaint against a powerful person gets handled differently from the complaint against someone without protection. Not always. Not in every organisation. But often enough for the pattern to become visible. And once a pattern becomes visible, it becomes part of the culture.

    What gets forgiven reveals the hierarchy of protection inside an organisation. Who is above accountability? Who is beneath it? That hierarchy appears in no values document. It is demonstrated, incident by incident, over years.

    India’s workplaces have provided repeated examples of this pattern. Harassment complaints that remain unresolved because the person concerned is considered too senior or too valuable to confront. Misconduct that is quietly buried because pursuing it would inconvenience someone more powerful than the person affected. Whistleblowers who raise legitimate concerns and eventually find themselves leaving the organisation while the behaviour they reported continues.

    These are often described as failures of policy. They are usually something more uncomfortable than that. They are expressions of what the organisation actually values when its stated principles collide with hierarchy, commercial reality or influence. The policy says one thing. The decision says another. Employees almost always believe the decision.

    “What feels like pragmatism to the decision-maker becomes instruction to the organisation.”

    Who gets fired

    Firing decisions reveal what an organisation truly cannot tolerate.

    Not what it says it cannot tolerate. What it actually cannot tolerate.

    Organisations say they cannot tolerate poor performance. That is sometimes true. But poor performers with influential sponsors routinely survive performance cycles that remove people without sponsors who were delivering more.

    Organisations say they cannot tolerate misconduct. Sometimes that is true. But the threshold for what constitutes actionable misconduct often shifts depending on the seniority, influence or commercial importance of the individual involved.

    What organisations consistently struggle to tolerate, even when they would never describe it this way, is inconvenience to the powerful.

    The employee who raises a complaint against a senior leader and finds themselves on a performance improvement plan months later. The individual who persistently challenges a decision that later proves correct but embarrasses the manager who made it. The person considered too expensive during a restructuring while someone less experienced but less costly is retained despite contributing less.

    These patterns accumulate. They become visible. They quietly teach employees what is genuinely dangerous to their careers. And the answer is rarely poor performance.

    What organisations consistently signal through firing decisions is a simpler truth: those with protection survive. Those without it do not. Performance, in these moments, is rarely the deciding variable.

    “Every organisation eventually becomes the company it rewards. Not the company it describes. The company it rewards.”

    Why the gap persists

    If this pattern is so visible, why does it persist?

    Partly because culture accumulates quietly. No single promotion creates it. No individual act of forgiveness creates impunity. Every decision appears reasonable when viewed in isolation. It is only after years of similar decisions that employees begin to recognise the pattern. By then, it has become embedded in the organisation, often long after the people who shaped it have moved on.

    Another reason is that organisations often mistake the articulation of values for evidence that those values are being lived. Leaders who speak fluently about culture sometimes assume the organisation behaves accordingly. The real culture, however, is revealed less by the words leaders choose than by the decisions employees observe every day.

    There is another reason that is easier to overlook. The people making these decisions rarely experience them as cultural decisions. The manager who promotes the person they trust believes they are exercising sound judgement. The executive who protects a high performer believes they are making a commercial decision. Yet every one of those decisions sends a cultural signal to everyone watching. What feels like pragmatism to the decision-maker becomes instruction to the organisation.

    Indian organisations carry an additional layer. Respect for hierarchy remains deeply embedded in organisational life. Holding senior people to exactly the same standards as everyone else is often more difficult in practice than organisations are willing to admit. This is not always conscious favouritism. Sometimes it is simply cultural inheritance. The effect on the organisation, however, is exactly the same.

    What this means for HR

    HR occupies an uncomfortable position in this dynamic.

    In most organisations, HR is the function that executes these decisions. It processes the promotions, administers the bonuses, investigates complaints and manages exits. HR is therefore both the instrument through which the organisation’s real culture expresses itself and the function best placed to reveal the pattern honestly.

    That creates a significant tension.

    An HR function that simply executes what the business requires will faithfully reproduce whatever culture the business’s decisions have already created, including its inconsistencies, its protections and its blind spots.

    An HR function with sufficient authority, independence and organisational support can do something much more valuable. It can hold up a mirror and expose the gap between what the organisation says it values and what its decisions reveal it actually values.

    Most HR teams understand this gap perfectly well. Their challenge is rarely recognising it. It is changing it. HR reports to the business. Its budget comes from the business. Its effectiveness is assessed by the business. Holding up an honest mirror therefore requires something rarer than technical competence. It requires organisational courage backed by organisational permission.

    The organisations where HR has managed to do this are easy to recognise. They are not necessarily the ones with the most elaborate values frameworks. They are the ones where the promotion list resembles the values statement. Where conduct standards apply regardless of hierarchy. Where reward systems consistently reinforce the behaviours leadership publicly celebrates. Where firing decisions are understood because the criteria apply equally across the organisation rather than only to those without influence.

    These organisations did not achieve this by writing better values statements. They achieved it by building reward systems that consistently reflected those values, even when doing so was inconvenient.
    The real culture document

    There is a document in every organisation that tells the truth about its culture.

    It is not the values statement. It is not the employee handbook. It is not the annual report’s section on people and culture.

    It is the accumulated record of who was promoted over the past five years and why. Who received the largest bonuses and what they had done to earn them. Who was forgiven for behaviour that others were not forgiven for. Who was asked to leave, and under what circumstances.

    Read that document honestly and the organisation’s real values become unmistakably clear.

    Few organisations ever read that document honestly. The values statement is far more flattering. Employees rarely make the same mistake. They read the real document every day, draw their own conclusions and adjust their behaviour accordingly.

    Which is why every organisation, eventually, becomes the company it rewards.

    Not the company it describes.

    The company it rewards.

    accountability bonuses company values corporate culture culture transformation Dr Prajjal Saha Employee Engagement Employee Recognition employee rewards HR leadership HR strategy HRKatha Editorial LEAD Leadership organisational behaviour Organisational Culture performance culture Performance Management promotions Talent Management workplace behaviour Workplace Culture
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    Dr. Prajjal Saha | HRKatha

    Dr. Prajjal Saha is a business journalist and the editor-publisher of HRKatha. He writes on the realities of work and organisations, offering a clear-eyed view of how companies translate intent into action—often revealing the gap between the two. With over 25 years of experience, he focuses on interpreting workplace trends and leadership decisions in a way that is both insightful and accessible. He founded HRKatha in 2015 to create a platform for credible, insight-driven analysis of the evolving workplace.

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