Should a warning for behavior color everything?

 This could drive a wedge in a team that you want to reward for ... being a team. If managment can't see that it's a shame mitigate:

1. Inform the errant team member of the decision and let him know that a) the reward will come when the behaviour is shown to be corrected and that b) their reaction to the situation will form part of the evaluation, c) no other member of the team will be made aware of this delay.

2. Hold off rewarding everyone until managment are happy the rogue team member has 'learned their lesson'. Don't tell anyone about it.

3. Cancel the reward.

Horrible thing to happen when we should all be looking for good news and reasons to celebrate.

Chris

I'd go with Thaguma's Option #3 in this case.  And start looking for a new job - internal or external.  Your boss seems like a dillweed.  (Seriously, doesn't he have better things to do than to micromanage what you do with your team's budget?)

 Would it be possible to push back a little to your boss and say that you understand that they still have concerns about this one direct but you feel that the reward should be to all team members.  Then suggest that this person's reward be held in abeyance pending continued evidence of good behaviour with a set date for when it will be paid, presuming his behaviour continues good.  If they agree then you can explain the situation to him then announce the reward to the team, if he chooses to reveal the specific situation with his share that's up to him.

 Stephen

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Skype: stephenbooth_uk (Please note I'm on UK time)

DiSC: 6137

Experience is how you avoid failure, failure is what gives you experience.

Sorry - I'm a bit cranky today and I was reckless with my words above.

Given that you're looking at "a couple hundred dollars" per team member, would you be able to convert that pool of money into a group activity as a Team Building Event, including prizes (rigged in a way so that everyone wins something, though not as much cash as originally intended)?  So if you have five people and $200 each works out to a budget of $1,000, allocate maybe $250 on lunch catered in (or out at a restaurant or a game place like Dave & Busters) and do some games or trivia or partner exercises.  Then have the whole group come up with a "Most Likely To ___" or "Top ___" award for each person in the group.  They have to work together to come up with the most accurate category or most creative, all encompasing title or whatever.  And then each award comes with $150 cash (or gift card) which is your full $1,000 budget. 

If it's not a direct reward for performance in a specific area or task but rather as a team building event, perhaps it will go over better.  (Though you might want to wait a couple of weeks for things to cool down with your boss.)  "Gee boss, I see what you're saying about Behaviour Issue Direct so I got to thinking - if we have this team building afternoon filled with activities designed to focus on behaviour, he'll see his peers modeling the correct behaviour."

Another thought I had would be to break it down to the boss & the direct -- of that $200, the DR in question could only get $50 right now because of this one major blemish but that other $150 is standing by, waiting for continued performance improvement and will be distributed (quietly) over the next X weeks or months.  As time goes by without incident, he earns another portion so that there's a clear correlation between not only the baseline product results (for the first $50) but also the behavioural stuff that goes along with that.  If you want to reward the good behaviour, do just that.  

"DR, there's this pot of $200 with your name on it but this behavioural warning is a fly in the ointment.  We appreciate the production side of things so here's the first $50 or $75 for that side of the equation, however, the remainder of the pot will be contingent on the behavioural aspects of the equation over the next X timeframe."

If the boss gets his way - that you're rewarding the DR for continued & sustained appropriate behavioural conduct - he'll be more inclined to give the go-ahead.  

The DR will get the message that it's not just about productivity results; there's also a corporate culture which he needs to be sensitive toward and there are implications to acting recklessly but he has a chance to recover in that regard.

You get to coach and mentor his "rehabilitation" in the eyes of your boss by actively participating in the turnaround with the DR.