King Hammurabi was the first person who not only realized the importance of balance between accountability and incentives but also defined rules and regulation for workers .His main focus was construction sector .His philosophy of accountability is relevant in todays corporate culture. Fostering the culture of accountability and responsibility is the prime job of organizational leadership.

1. Accountability,Responsibility&Ownership
(In the light of Hammurabi Laws)
Iftikhar . A .Chauhan
G.M Operations
Sameel Pharmaceuticals(Pvt)Ltd
Faisalabad.

2. .Almost 4,000 years ago, King Hammurabi of
Babylon, Mesopotamia, laid out one of the first
sets of laws.
Hammurabi’s Code is among the oldest
translatable writings. It consists of 282 laws, most
concerning punishment. Each law takes into
account the perpetrator’s status. The code also
includes the earliest known construction laws,
designed to align the incentives of builder and
occupant to ensure that builders created safe
homes:
Introduction

3. Hammurabi’s Code consists of 282 laws, most concerning punishment. Each law
takes into account the perpetrator’s status. The code also includes the earliest known
construction laws, designed to align the incentives of builder and occupant to ensure
that builders created safe homes. e.g.
229.If a builder builds a house for a man and does not make its construction firm,
and the house which he has built collapses and causes the death of the owner of
the house, that builder shall be put to death.
230.If it causes the death of the son of the owner of the house, they shall put to death
a son of that builder.
231.If it causes the death of a slave of the owner of the house, he shall give to the
owner of the house a slave of equal value.
232.If it destroys property, he shall restore whatever it destroyed, and because he did
not make the house which he builds firm and it collapsed, he shall rebuild the
house which collapsed at his own expense.
233.If a builder builds a house for a man and does not make its construction meet the
requirements and a wall falls in, that builder shall strengthen the wall at his own
expense.
Hammurabi’s Laws

4. By today’s standards, Hammurabi was a dictator. Far
from abusing his power, however, he considered
himself the “shepherd” of his people. Although the
Babylonians kept slaves, they too had rights. Slaves
could marry other people of any status, start
businesses, and purchase their freedom, and they
were protected from mistreatment. It seems we’re not
as different as it appears. Our modern beliefs are not
separate from those of people in Hammurabi’s time;
they are a continuation of them. Early legal codes are
the ancestors of the ones we now put our faith in.
Three important concepts are implicit in Hammurabi’s Code:
Accountability
Reciprocity
Incentive

5. We know that human self-preservation instincts are
strong. More than strong, they underlie most of our
behavior. Wanting to avoid death is the most powerful
incentive we have. If we assume that people felt and
thought the same way 4000 years ago, we can guess at
the impact of the Code. Imagine yourself as a
Babylonian builder. Each time you construct a house,
there is a risk it will collapse if you make any mistakes.
So, what do you do? You allow for the widest
possible margin of safety. You plan for any potential
risks. You don’t cut corners or try to save a little bit of
money. No matter what, you are not going to allow any
known flaws in the construction. It wouldn’t be worth it.
You want to walk away certain that the house is solid.
Self-Preservation Instinct

6. Hurricane Katrina -2005 (Case study #1)
They don’t have much skin in the game. The worst they face
if they cause a death is a fine. We saw this in Hurricane
Katrina —2005 in which 1600 people died due to flooding
caused in part by the poor design of hurricane protection
systems in New Orleans. Hindsight analysis showed that the
city’s floodwalls, levees, pumps, and gates were ill designed
and maintained. The death toll was worse than it would
otherwise have been. And yet, no one was held accountable.
Hurricane Katrina is regarded as a disaster. At least 80 people
died in a blaze that is believed to have started accidentally but
that, according to expert analysis, was accelerated by the
conscious use of cheap building materials that had failed
safety tests.

7. Our current financial systems do not incentivize people to create
wide margins of safety. Instead, they do the opposite — they
encourage dangerous risk-taking. Taleb described a way to
prevent bankers from threatening the public well-being is to
Stop offering bonuses for the risky behavior of people who will
not be the ones paying the price if the outcome is bad. …It’s
time for a fundamental reform: Any person who works for a
company that, if it failed to produce desired result should not
get a bonus, The issue, in Taleb’s opinion, is bonuses as
asymmetric incentives. They reward risks but do not punish the
subsequent mistakes that cause “hidden risks to accumulate in
the financial system and become a catalyst for disaster.” It’s a
case of “heads, I win; tails, you lose. "Bonuses encourage
bankers to ignore the potential for Black Swan -2008 like
events.
THE BLACK SWAN-2008 (Case Study #2)

8. 1. When you align incentives of everyone in both positive and
negative ways, you create a system that takes care of itself.
2. The Code illustrates the efficacy of using self-preservation as an
incentive. We feel safer in airplanes that are flown by a person and
not by a machine because, in part, we believe that pilots want to
protect their own lives along with ours.
3. When we lack an incentive to protect ourselves, we are far more
likely to risk the safety of other people. This is why bankers are
willing to harm their customers if it means the bankers get
substantial bonuses.
4. This is why companies that market harmful products, such as fast
food and tobacco, are content to play down the risks.
5. Or why Wells Fargo employees opened millions of fake accounts
to reach sales targets.
Observations

9. Some career fields have a strict system of incentives
and disincentives, both official and unofficial.
1. Doctors get promotions and respect if they do their
jobs well, and risk heavy penalties for medical
malpractice.
2. We trust the military and homeland security
personnel with our lives, yet we don’t give them
lavish bonuses. They get promotions and the honor
of a job well done if they succeed, and the severe
disincentive of shame if they fail.”
Incentive Accountability
Balance between Incentive & Accountability

10. 1. Accountability
2. Responsibility
3. Ownership
Modern day Translation
(Hammurabi’s Code)
Responsibility
Ownership
Accountability

11. Accountability
(Personal)
Responsibility
(Mutual)
Ownership
(Shared)

12. Accountability
Responsibility
Ownership
Personal Control delivery
Mutual Influence Collaboration
Shared Solidarity Unity
ARO IS All about------

13.  Accountability is an assurance that an
individual or an organization will be
evaluated on their performance or
behavior related to something for which
they are responsible.
Accountability
 Employee accountability means holding all
levels of employees (from the part-time
hourly worker to the C-suite executive)
responsible for accomplishing business
goals. ... They must feel empowered to do
their jobs so they can take ownership of
their work and strive for excellence

14. Accountability in the workplace
Accountability is about ownership and initiative. This means that
when an employee says they will do something, they follow
through and get it done. It’s recognizing that other team members
are dependent on the results of your work. It’s about
open, proactive communication to keep team members informed
of the status of your commitments because it has a direct impact
on their ability to achieve their own commitments.
Taking ownership at work is about taking initiative and doing the
right thing for the business. It’s about taking responsibility for
results and not assuming it’s someone else’s responsibility. It’s the
opposite of passing the buck. Ultimately, when team members
consistently demonstrate ownership and accountability, trust
is formed. You trust someone will do the right thing and trust that
they’ll do what they said they’d do. Trust is the backbone of high-
performing teams.

15. As a manager, you’re the pacesetter of tone,
performance, and culture for your team. People will
follow your lead. If you’re continuously showing up to
meetings late, pushing deadlines, and not owning up to
your mistakes, the team will follow suit. So how do you
demonstrate your own accountability in the workplace?
1. Complete tasks that have been assigned to you by the
timeline you agreed on.
2. Be responsible for the success of your team and
make the effort to support your team when needed.
3. When you schedule meetings, respect everyone
else’s time by showing up prepared and on time (and
expect that others do too)
How to develop culture of Accountability

16. It damages the team.
When people are not accountable, one person’s
delay becomes the team’s delay. One shortfall
snowballs into bigger shortfalls. Tolerating missed
deadlines, lack of punctuality, and unfinished work
have the tendency to make this behavior “no big
deal.” People learn that the real deadline is a week
from the published one; that consistently being 10
minutes late for a meeting is the norm; that sub-par
work is acceptable. Your team suffers, and
ultimately your workplace culture suffers. too.no
accountability on the team Having a member of the
team that isn’t meeting their commitments and isn’t
being held accountable causes frustration and
disengagement with the rest of the team.
What happens when there’s no accountability?

17. Indications that you need Accountability in the Workplace:
 Low morale.
 Unclear priorities.
 Declining engagement.
 Ineffective execution.
 Low levels of trust
 High turnover

18. A
R
O
Accountability
 Lack of clarity
 Excuses
Responsibility
 No one accountable
 Lack of Systems thinking
Ownership
 Fragmentation
 Chaos
Key Risks in ARO Culture

19. What To Do ?

20. Key Take Away Points
1. Accountability starts at the Top
2. Personal safety and interest are most important for people
3. They perform responsibly if they have stake/fear of accountability
4. A balanced between incentive and accountability is needed