OB Ch. 6

What are the four steps to implementing a goal-setting program?

A: Set goals. B: Promote goal commitment. C: Provide support & feeback. D: Create action plans.

According to Gallup, which conditions make PM more effective?

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

What are the most common reasons employees feel PM doesn't measure up?

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

How is performance management different from performance appraisal?

PM is a continual process of which appraisals are a subset.

contrast effect

To evaluate people or objects by comparing them with characteristics of recently observed people or objects. ex. rating an employee as average, from a comparison of the employee's performance w/ the exceptional performance of a few top performers. solution: evaluate employees against a standard, rather than against the performance of your highest-performing employees.

Coaching

a customized process between two or more people with the intent of enhancing learning and motivating change. developmental, has specific performance goals, considerable self-reflection, self-assessment, & feedback.

How can performance goals & learning goals clash?

a performance goals can deflect attention from the discovery of learning goals. learning goals should be set first before peformance goals.

comtinuous reinforcement

a reinforcement schedule in which every instance of a target behavior is reinforced.

performance management

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

Factors that affect your perception of feedback

accuracy credibility of the sources fairness of the system performance-reward expectancies reasonableness of the goals or standards

Helpful tips to consider when utilizing monitoring performance at work:

be transparent: explain what, where, how, & why. monitor only work: make work & nonwork boundaries clear. focus on development, not punishment/detterence: act on info that contributes to performance. dont' play cat & mouse. make it fit & fair

law of effect

behavior w/ favorable consequences tends to be repeated, & behavior w/ unfavorable consequences tend to disappear.

Behavioral goals

can be used in most jobs. most relevant for knowledge work. ex. treat other w/ professionalism & communicate clearly.

How should you avoid surprises in your own reviews?

check in w/ your manager periodically & informally ask if you should be aware of anything

pay for performance

comprises merit and/or bonus pay based on individual-, group-, or organizational-level measures & involving individual, group, or organization rewards.

Respondent behavior

describes automatic reactions to stimuli, or stimulus-response (S-R) ex. startled by a loud noise or yanking hand from a hot surface

Why is it important to monitor and evaluate both progress toward goals & outcomes of goals

doing both boosts motivation & performance

total rewards

encompass not only compensation and benefits, but also personal and professional growth opportunities and a motivating work environment that includes recognition, job design, talent development, and work-life balance

fixed interval

ex. paychecks; annual bonuses; probationary periods advantages: clear & predictable link btwn the behavior & reinforcer; less costly than fixed ratio. disadvantages: inconsistent effort & performance over the interval (majority of effort/performance occurs near reinforcer)

fixed ratio

ex. piece-rate pay; bonuses tied to the sale of a fixed # of units advantages: clear & predictable link btwn the behavior & the reinforcer disadvantage: costly to monitor performance & administer reinforcers (money); reinforcers lose effect over time

variable interval

ex. random supervisor "pats on the back"; random drug tests; pop quizzes. advantages: consistent & strong motivation to perform over time; least costly schedule due to relatively little monitoring & admin. disadvantages: some desired behaviors will not be reinforced; potentially long periods btwn reinforcers (payouts)

Contingency Approach to defining performance & setting goals

fit the behavior, policy, or practice to the situation. you can define goals in terms of behavioral, objective, and task/project.

Step B: Promote Goal Commitment

goal commitment boosts motivation to achieve any goal & it can be increased by ensuring goals are personally relevant, obtainable, & fair.

What are the outcomes of effective performance management?

greater employee engagement better organizational performance higher profitability higher productivity higher customer engagement scores lower turnover

common perceptual errors related to performance evaluation

halo effect, leniency, central tendency, recency effect, & contrast effect.

How can 360 degree feedback help individuals?

helps overcome positive or negative bias due to perceptions or manager-employee relationships.

What is 360 degree feeback?

individuals compare perceptions of their own performance w/ behaviorally specific (& usually anonymous) performance info from their manager, subordinates, & peers.

feedback

info about individual or collective performance shared w/ those in a position to improve the situation.

What is effective feedback?

information only. no opinions.

What are the two functions of feedback?

instructional: clarifies roles or teaches new behavior. motivational: when feedback serves as a reward, such as recognition.

How to boost the effectiveness of rewards

involve employees in devising the system. or use problem-solving approach.

Why should there be no surprises in a performance review?

it means your manager is doing a poor job of managing your performance.

Which goal results in better performance and being adaptive to change?

learning goals

monitoring performance

measuring, tracking, or otherwise verifying progress and ultimate performance used to identify problems & successes

perceptual errors & biases from punishment

negative events are far more impactful on ppl than positive events. negative events stick w/ us much longer than positive events. punishment is more likely to be informal unless you are being fired.

What are the three common sources of feedback?

others task self

What kind of goal do managers tend to focus on?

performance goals

What are the four ways contingent consequences control behavior?

positive reinforcement negative reinforcement punishment extinction

What are the most common reasons for people not giving/giving enough feedback?

potential strain on relationship: delivering bad news makes ppl feel guilty. too little time lack of confidence: few ppl are trained to give effective feedback. no consequences: if managers are not evaluated on whether they provide feedback, they are less likely to give it.

What is a learning goal?

promotes enhancing your knowledge/skill.

What are three tips for improving feedback skills?

reflect: b4 giving feedback identify what change you want to see. cultivate trust be action-oriented: recommend actions along w/ the feedback.

intermittent reinforcement

reinforcement for some responses and not for others

Skinnier concluded that behavior is:

respondent & operant

practical implications for using the strongest schedule

sport rewards variable rewards/bonuses celebrations

positive reinforcement

strengthening behavior by contingently presenting something appealing.

negative reinforcement

strengthens a desired behavior by contingently withdrawing something displeasing.

Step C: Provide Support & Feedback

suggestions to help employees achieve their goals: provide training or make sure employees are skilled bc it boosts expectancy pay attention to employees' perceived relationship bwtn effort & performance give employees timely & task-specific feeback provide incentives & reward meaningful progress - not just goal accomplishment

What is a performance goal?

targets a specific end result.

Step A: Set goals

the acronym, SMART (specific, measurable, attainable, result-oriented, & time bound), should be applied to goals bc it makes goals clearer & more actionable.

evaluating performance

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

Punishment

the process of weakening behavior through either the contingent presentation of something displeasing or the contingent withdrawal of something positive. should be used sparingly & wisely.

leniency

the tendency to consistently evaluate other ppl in an extremely positive fashion. ex. rating an employee high on all dimensions of performance regardless of actual performance. solution: provide specific examples of both good & poor behavior so you can help the employee improve. Be fair & realistic.

What is 360 degree feedback most useful for?

training and development purposes.

Step D: Create Action Plans

use the other steps to formulate your action plans & use your experience

electronic performance monitoring (EPM)

uses technology to gather, store, analyze, & report employee behavior.

Extinction

weakening behavior by ignoring it or making sure it is not reinforced.

When does feedback become positive/negative and not just information?

when it is compared to a goal/expectation

What are the tips for increasing goal commitment and success?

write your goals down: so you can go back & revise identify key obstacles & sources of support ask what's in it for you?: list the benefits & keep your eyes on the prize to stay motivated. break it down: some goals are too big. visualize: imagine how you will benefit by achieving the goal. organize: prep is key bc it avoids wasting time reward yourself

What are the common uses of performance management?

1. Performance ratings. 2. Feedback. Generating the content & delivering it. 3. Development & performance improvement plans. 4. Career planning. Linking expectation & performance to increased responsibilities. 5. Recommendations for employee-related decisions. Rewards, promotions, training, or termination. 6. Documentation for legal purposes. Sound decisions need appropriate supporting data.

What are the steps in the performance management system in order?

1. defining performance 2. monitoring & evaluating performance 3. reviewing performance 4. providing consequences

According to research done by Gallup, how do employees view their company's performance management?

20% of employees feel their performance is managed in a way that motivates them. 29% perceive their employers' PM system as fair. 26% agree they are accurate. Less than 40% of employees say their systems do not provide clear goals or generate honest feedback. 66% of employees say it actually interferes w/ their productivity. 58% of 576 HR execs surveyed graded their company's PM systems as a C or worse.

Objective goals

best for jobs w/ clear & readily measured outcomes. measure what matters, not just what can be measured. ex. sales quotas, production rates, error rates.

variable ratio

ex. slot machines that pay after a variable # of pulls. advantages: stron motivation to continue until reinforcer is received; less costly than fixed ratio. disadvantages: some desired behaviors will not be rewarded; potentially long periods btwn reinforcers (such as payouts)

halo effect

the tendency to form an overall impression about a person and then use that impression to bias ratings about same. ex. rating an employee positively across all dimensions of performance bc the employee is so likable. solution: record examples of positive & negative employee performance throughout the year bc behavior changes.

What things should you consider when monitoring performance?

timeliness: was the work completed on time? quality: how well was the work done? quantity: how much? financial metrics: what are the profits, returns, or other financial outcomes?

central tendency

to avoid all extreme judgements and rate people as average or neutral. ex. rating an employee as average on all dimensions regardless of actuall performance. solution: define an accurate profile w/ high & low points, so you can help the employee improve.

recency effect

to over-rely on the most recent info. if it is negative, the person is evaluated negatively. ex. rating an employee based only on the last portion of the review period. solution: accumulate examples of performance over the entire rating period. look for trends but accept some variance as normal.

What are the reasons for rewards failing often?

too much emphasis on monetary rewards. sense in recipient that extensive benefits are entitlements. fostering counterproductive behavior. long delay btwn performance & reward. one-size-fits-all rewards. use of one-shot rewards w. short-lived motivational impact. continued use of demotivating practices such as layoffs, across-the-board raises & cuts, and excessive executive compensation.

Operant behavior

behaviors that are learned & occur when we "operate on" the environment to produce desired consequences.

Task/Project goals

best for jobs that are dynamic, but in which nearer-term activites & milestones can be defined. similar to SMART goals. ex. complete your portion of the team project by Tuesday.