CH 6: Performance Management

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The factors that affect perceptions of feedback include

-fairness of the system -reasonable goals or standards -accuracy of the feedback

Factors that affect your perceptions of feedback

1. accuracy 2. credibility of the sources 3. fairness of the system 4. performance-reward expectancies 5. reasonableness of the goals or standards

Key factors in organizational rewards

1. types of rewards 2. distribution criteria 3. desired outcomes

piece-rate work

A type of employment in which the worker is paid a fixed amount for each unit of the product made.

When choosing measures of performance, which of the following criteria should be met?

Accuracy and relevancy

Component four: provide consequences

Administer valued rewards and appropriate punishment

Desired outcomes

Attract, motivate, retain, develop, engage

Respondent behavior

Automatic reactions to stimuli, or stimulus response

Tips to consider, when utilizing monitoring for performance at work

Be transparent. Monitor only work. Focus on development not punishment or deterrence. Make it fit and fair

Law of Effect (Thorndike)

Behavior with favorable consequences tends to be repeated in behavior with unfavorable consequences tends to disappear

Operant Behavior (Skinner)

Behaviors that are learned and occur when we operate on the environment to produce desired consequences

Evaluating performance

Comparing actual performance to a previously set goal

What are the six key components of a total rewards perspective?

Compensation Benefits. Work-life effectiveness Recognition. Talent development

Coaching

Customize process between two or more people, with the intent of enhancing learning and motivating change

Effective performance management has four components

Defining performance. Monitoring and evaluating performance. Reviewing performance. Providing consequences

Component three: review performance

Deliver feedback and coaching

What are the three potential outcomes from rewards?

Desired outcome Nothing. Undesired side effects

Today's trends in feedback

Feedback is becoming more informal, continual, and inclusive. It is also increasingly taking place between other employees, and not just between managers and subordinates. Direct, if not also, critical feedback

Extrinsic rewards

Financial material and social rewards because they come from the environment

Component to: monitor and evaluate performance

Measure and evaluate progress and outcomes

Companies with the best pay for performance results tend to

Pay top performers substantially more than their other employees. Reduce gaming of the system by increasing transparency. Utilize multiple measures of performance Calibrate performance measures to ensure accuracy and consistency

Why don't we give and get more feedback?

Potential strain on relationships. Two little time. Lack of confidence. No consequences

Intermittent reinforcement

Reinforcement of some, but not all instances of a target behavior

Intrinsic rewards

Self granted

Key components such as types of rewards, distribution criteria, and desired outcomes are part of an organizations reward system

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Many goals can be categorized as a behavioral, objective, or task oriented. The way you measure these goals should match their character.

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Most often pay for performance is referred to as variable pay, because it most depends or varies based on some behavior, outcome, and variable pay has grown as a percentage of total compensation for decades

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One way to organize or differentiate your mini goals is to categorize them as performance or learning

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The most effective reward programs tend to align with employee preferences

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Use the information gathered through monitoring to identify problems and successes and defined opportunities for enhancing performance during the pursuit of a goal

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Leniency

To consistently evaluate other people or objects in an extremely positive fashion

Contrast effect

To evaluate people or objects by comparing them, with characteristics of recently observed people or objects

Recency effect

Two over rely on the most recent information. If it is negative, the person or object is evaluated negatively .

Electronic Performance Monitoring (EPM)

Uses technology to gather store, analyzing report, employee behavior

Extinction

Weakening a behavior by ignoring it, or making sure it is not reinforced

When is Feedback motivational?

When there is promise of a reward When it is a reward

Practical guidelines for writing smart goals

Write your goals down. Identify key obstacles and sources of support. Ask what's in it for you? Break it down Visualize Organize Reward yourself

What are the reinforcement schedules?

You can supercharge or at least enhance the effectiveness of positive reinforcement rewards by managing the timing or schedule of reinforcement. Continuous and intermittent reinforcement schedules are two common means for timing the administration of reinforcers

Pay for performance

comprises merit and/or bonus pay based on individual-, group-, or organization-level measures and involving individual, group, or organization rewards Compensation above and beyond basic wages and salaries. Consistent with the expectancy theory of motivation

Monitoring performance

measuring, tracking, or otherwise verifying progress and ultimate outcomes

According to Skinners, operant theory, contingent consequences control behavior in one of four ways:

positive reinforcement, negative reinforcement, punishment, extinction

Distribution criteria

results, behavior and actions, nonperformance considerations

Total rewards

Encompass, not only compensation and benefits, but also personal and professional growth opportunities in a motivating work environment that includes recognition, job design, and work life balance

Gallup recommends three qualities that make p.m. more effective

Establish expectations that are clear, collaborative and aligned. Continually coach. Create accountability

Common reasons employees feel performance management doesn't measure up

Feedback is rare. Lack of clarity on how to improve. Manager bias. Negative reactions. Too much focus on pay and incentives

Learning goal

Promotes, enhancing your knowledge or skill

When setting goals, you set them to be smart. Smart apply to goals is an acronym for

Specific, measurable, attainable, results, oriented, and time bound

Negative reinforcement

Strengthens our desired behavior by contingently withdrawing some thing displeasing Not to be confused with negative feedback, which is a form of punishment. Negative reinforcement strengthens a desirable behavior, because it provides relief from some thing undesirable.

A performance goal can deflect attention from the discovery of task relevant capabilities (Learning goals). It is helpful to set learning goals first and then set performance goals once you've developed some level of proficiency

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A useful way to differentiate between types of pay for performance is whether they were aboard past or future performance Bonuses are most often given for past performance and incentives are intended to motivate future performance

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Any type of consequence, with a reward or punishment, is more effective when administered near the time of the behavior

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Comparing actual performance to a previously set goal is the step in the performance management process called evaluating performance

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Continuous and fixed schedules are the least likely to elicit the desired response overtime

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Effective feedback includes hard data, not opinions

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Experts say, feedback, serves two functions for those who receive it: when is instructional in the other motivational.

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Performance goal

Target a specific end result

What are the three common sources of feedback?

others, task, self

Evaluating performance

the process of comparing performance at some point in time to a previously established expectation or goal

Reinforcement schedules

Fixed ratio. Variable ratio. Fixed interval. Variable interval

What elements need to be monitored, and evaluated when determining someone's performance?

Goal achievement and progress towards the goal

Punishment

The process of weakening behavior, through either the contingent presentation of something displeasing, or the contingent withdrawal of something positive

When feedback comes as a surprise to an employee, what might be happening on the part of the manager?

The quality of feedback is lacking. The quantity of feedback is insufficient.

Halo effect

Form an overall impression about a person or object, and then use that impression to bias ratings about same

Variable ratio and variable interval, schedules of reinforcement generally produce the strongest behaviors, and are most resistant to extinction

T

As part of the contingency approach to goalsetting, what elements should fit the situation?

The behavior, the policy, the practice

Positive reinforcement

The process of strengthening, their behavior by contingently, presenting something appealing

Contingent

There is a purposeful if-then link between the target behavior and the consequence

Measurement and monitoring can improve further, if consider the following

Timeliness, was the work completed on time? Quality, how well was the work done? Quantity, how much? Financial metrics, what are the financial outcomes?

Central tendency

To avoid all extreme judgments and rate people and objects, as average or neutral

Desired outcomes of the reward system

Foster development and keep talented people from leaving. Attraction motivate, talented people. Retain talented people. Foster development

Common perceptual errors related to performance evaluation

Halo effect, leniency, central tendency, recency effect, contrast effect

Continuous reinforcement

If every instance of a target behavior is reinforced than a continuous reinforcement schedule is in effect

How to boost the effectiveness of rewards

Involve employees in devising the system.

Common uses of performance management

Performance ratings Feedback. Development and performance improvement plans Career planning Recommendations for employee related decisions Documentation for legal purposes

Organizations use three general criteria for distributing rewards

Results tangible Behaviors and actions. Non-performance considerations

Feedback instructs when it clarifies rules or teaches new behavior.

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Feedback motivates when it serves a reward, such as recognition for a job, well done, or promises a reward.

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Feedback offers information to those who can positively impact the situation

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It is important to monitor progress toward goal achievement in order to identify problems while pursuing a goal

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360° feedback

Individuals compare perceptions of their own performance with behavioral specific and anonymous performance information from their manager, subordinates, and peers

Feedback

Information about individual or collective performance is shared with those in a position to improve the situation

Component one: define performance

Set goals and communicate performance expectations

Four steps to implement a goal setting program

Set goals. Promote goal commitment. Provide support and feedback. Create action plans

Performance Management

Set of processes and managerial behaviors, that include defining, monitoring, measuring, evaluating and providing consequences for performance expectations

Guidelines for writing smart goals

Specific Measurable. Attainable. Results oriented Time bound

Pay for performance is used to align employees, interests, and behaviors with those of the department and organization, as it links your behaviors and outcomes to objectives or goals at some level

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There is a need to monitor and evaluate both progress towards the goal and ultimate level of goal achievement. Doing both, instead of simply focusing on the final outcome, boost both motivation and performance

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