OB Ch. 6 - Performance Management

contingency approach to defining performance

- Behavioral goals - Objective goals - Task or project goals

Objective goals

-Best for jobs with clear and readily measured outcomes -Measure what matters, not just what can be measured

Task or Project Goals

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

Effective PM has 4 components:

1. Defining performance 2. Monitoring and evaluating performance 3. Reviewing performance 4. Providing consequences

3 potential outcomes from rewards:

1. Desired outcome 2. Nothing 3. Undesired side effects

The 3 common sources of feedback are:

1. Others 2. Task 3. Self

Most performance management systems have six primary outputs and functions:

1. Performance ratings. High, low, better, or worse than before or others. 2. Feedback. Generating the content and delivering it. 3. Development and performance improvement plans. Underperformers need to improve or be moved out. 4. Career planning. Linking expectation and 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.

Common components of rewards

1. Types of rewards 2. Distribution criteria 3. Desired outcomes

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 Fundamental attribution bias Self-serving bias

Angela would like to improve the quality and effectiveness of her department's performance evaluations. Angela should do all of the following EXCEPT A.focus on the importance of filling out the performance management form correctly. B.set clear expectations for her employees. C.provide regular feedback to her employees. D.find new opportunities for her employees to succeed and develop. E.Angela should be doing ALL of the above.

A

continuous reinforcement (CRF)

A schedule of reinforcement that provides reinforcement for each occurrence of the target behavior.

Component 4: Provide Consequences

Administer valued rewards and appropriate punishment

Michael wants to make sure the feedback he provides to his employees is perceived correctly. Michael should do all of the following EXCEPT: A) Be aware of the fundamental attribution error and try not to commit it B) Provide feedback that is irrelevant to the person's career C) Make sure the system is perceived as fair D) Make sure goals established are challenging and attainable E) Deliver feedback as close as possible to when the behavior was performed

B

When an employee's skills are lacking it is better to set performance goals first to target a specific end result and then set learning goals to allow for the skill to be acquired. A. True B. False

B

helpful 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

Julia wants to use positive reinforcement and decides to pay bonuses to her employees when a new customer contract is signed. Julia is using: A) Fixed ratio reinforcement B) Variable ratio reinforcement C) Fixed interval reinforcement D) Variable interval reinforcement E) Just-In-Time reinforcement

C

*** ___________ helps translate feedback into desired change.

Coaching

Goal-Setting Step D:

Create action plans

Janice is evaluating the employees in her department. She does not want to hurt anyone's feelings and decides to rate all her employees high on all performance dimensions. What error is Janice making? A. Halo B. Contrast effects C. Central tendency D. Receny effects E. Leniency

E

3 qualities that make PM more effective

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

T/F: You should only focus on the final outcome of a goal

FALSE. Focus on both progress and outcomes

T/F: PM is performance appraisal

False. Effective PM is a continual process and a critically important individual-level process of which appraisals are a subset.

The most common reasons employees feel performance management doesn't measure up are:

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

*** ___________ __________ is critical to effective PM.

Goal setting

SMART goals

Goals that are Specific Measurable Attainable Results-oriented Timebound

Common perceptual errors related to performance evaluation

Halo effect Leniency Central tendency Recency effect Contrast effect

Feedback serves 2 functions for those who receive it:

Instructional Motivational

*** __________________ or _______________ feedback can make performance evaluation more accurate.

Multi-rater or 360-degree

SMART goals are clearer and more actionable than

Non-SMART goals

Effective feedback is (objective/subjective)

Objective. Hard data. Days absent, dollars saved, projects completed.

One way to look at coaching is that it is an individualized and customized form of _____.

PM

Managers typically overemphasize ____________ goals and ignore ____________ goals

Performance Learning

______________ ____________ (___) is a set of processes and managerial behaviors that include defining, monitoring, measuring, evaluating, and providing consequences for performance expectations.

Performance management (PM)

According to Skinner's operant theory, contingent consequences control behavior in one of four ways:

Positive reinforcement. Negative reinforcement. Punishment. Extinction.

Reasons feedback isn't given very often:

Potential strain on relationships Too little time Lack of confidence No consequences

Spot rewards

Programs that award employees "on the spot" when they do something particularly well during training or on the job

variable rewards/bonuses

Programs that award employees as rewards are available

Goal-Setting Step B:

Promote goal commitment

Goal-Setting Step C:

Provide support and feedback

*** _____________ and ___________ both decrease undesirable behaviors.

Punishment and extinction

How to improve your feedback skills:

Reflect Cultivate trust Be action-oriented

Organizations use three general criteria for distributing rewards:

Results Behavior and actions Nonperformance considerations

*** _______________ goals are more likely to be achieved.

SMART

Goal-Setting Step A:

Set goals

Behavioral goals

Short term goals Can be used in most jobs Most relevant for knowledge work ex: treat others with professionalism and respect; communicate clearly

Celebrations

Something special or enjoyable that is done to show that a day or event is important

4 general steps to follow when implementing a goal-setting program (for yourself ot others)

Step A: Set goals Step B: Promote goal commitment Step C: Provide support and feedback Step D: Create action plans

________________ assessments such as "You're lazy" or "You have a bad attitude" do not qualify as effective feedback

Subjective

Why are outside sources beneficial when using 360-degree feedback?

They can help overcome positive or negative biases due to perception or manager-employee relationships

Your measurement and monitoring can improve further still if you consider the following:

Timeliness Quality Quantity Financial metrics

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

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

*** _____________ and ___________ rewards are increasingly common practices.

Total and alternative

T/F: Effective PM includes measures, rewards, and distribution criteria that are linked.

True

T/F: Evaluating performance is the process of comparing performance at some point in time to a previously established expectation or goal.

True

T/F: Giving feedback can boost your own performance

True

T/F: Measurement or verification is needed in some form when evaluating performance.

True

T/F: Performance appraisals are a subset of PM

True

T/F: The 360-degree feedback process can also come from outsiders, such as customers or suppliers.

True

T/F: The best-laid goals can be completely undermined if performance toward them is not measured appropriately, or if performance is evaluated with bias.

True

T/F: You must monitor both progress and outcomes

True

T/F: Negative feedback can have a positive effect

True. It can be motivating.

The starting point and the fundamental problem to overcome is that most organizations and their managers treat PM as: rather than treating it as a critically important and continuing development process.

a bureaucratic chore, a box to be checked

Coaching

a customized process between two or more people with the intent of enhancing learning and motivating change

Performance management (PM)

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

Effective feedback is only information—it is not

an evaluation.

*** PM can be improved using ____________, _____________, and ______________ goals.

behavioral, objective, and task/project goals.

operant behavior

behaviors that are learned and occur when we "operate on" the environment to produce desired consequences. It can be helpful to think of this as response-stimulus (R-S) model or operant conditioning, as it describes things we do to generate desired behaviors

Pay for performance

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

Intermittent reinforcement

consists of reinforcement of some but not all instances of a target behavior

*** Providing ______________ _____________ is fundamental to effective reinforcement.

contingent consequences

Nonperformance considerations

customary or contractual, where the type of job, nature of the work, equity, tenure, level in hierarchy, etc., are rewarded.

Component 3: Review Performance

deliver feedback and coaching

Respondent behavior

describes automatic reactions to stimuli, or stimulus-response (S-R), like when you are startled by a loud noise or pull your hand away from a stovetop.

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, and work-life balance.

Not returning calls, unfriending, or otherwise not responding are ______________ tactics

extinction

Weakening a behavior by ignoring it or making sure it is not reinforced is referred to as:

extinction

*** Rewards can be ____________ or ____________.

extrinsic or intrinsic

Financial, material, and social rewards qualify as ____________ ___________ because they come from the environment.

extrinsic rewards

Reinforcement schedule examples

fixed ratio, variable ratio, fixed interval, variable interval

*** Goal commitment, support and feedback, and action plans foster _____________ _______________.

goal achievement.

Effective performance management influences important outcomes such as:

greater employee engagement and better organizational performance.

360-degree feedback

individuals compare perceptions of their own performance with behaviorally specific (and usually anonymous) performance information from their manager, subordinates, and peers.

feedback

information about individual or collective performance shared with those in a position to improve the situation.

*** Two basic functions of feedback are to _____________ and ___________.

instruct and motivate

Keep feedback _____________ and ___________ and you'll keep it appreciated and effective.

instructional and motivational

Psychic rewards are ___________ rewards because they are self-granted.

intrinsic

Feedback is instructional when

it clarifies roles or teaches new behavior

Feedback is motivational when

it serves as a reward, such as recognition for a job well done.

*** Both __________ and ___________ goals can be used.

learning and performance

*** Employee perceptions of the value and effectiveness of PM are often very (high/low).

low

Performance management typically operates through an organization's:

managers and human resources policies and practices

component 2: monitor and evaluate performance

measure and evaluate progress and outcomes

Monitoring performance

measuring, tracking, or otherwise verifying progress and ultimate outcomes.

360-degree feedback is AKA

multi-rater feedback

*** Sources of feedback include:

others, the task, and yourself.

*** The effectiveness of positive and negative feedback is greatly influenced by the receiver's _____________.

perceptions

*** Performance evaluation is often hampered by _____________ ______________.

perceptual errors

A _____________ goal targets a specific end result, and a _____________ goal promotes enhancing your knowledge or skill.

performance learning

*** Effective ____________ __________ (____) is a process of defining, monitoring, reviewing, and providing consequences.

performance management (PM)

Commitment can be increased by ensuring goals are:

personally relevant obtainable fair

*** Both ____________ and ___________ reinforcement increase desired behaviors.

positive and negative

*** Monitoring performance requires making effective measurements of ______________ and ____________.

progress and outcomes

You must monitor and evaluate both ________________ and ______________

progress toward the goal and ultimate level of goal achievement.

Learning goal

promotes enhancing your knowledge or skill

Variable ratio

reinforces a response after an unpredictable number of responses

Variable interval

reinforces a response at unpredictable time intervals

Fixed ratio

reinforces a response only after a specified number of responses

Fixed interval

reinforces a response only after a specified time has elapsed

Your measures of performance should be both ____________ and ______________.

relevant and accurate

*** Rewards are commonly distributed based on:

results, behavior, and nonperformance considerations.

law of effect

says behavior with favorable consequences tends to be repeated, and behavior with unfavorable consequences tends to disappear.

*** The ___________ on which reinforcers are administered can increase their effectiveness.

schedule

Component 1: Define Performance

set goals and communicate performance expectations

Negative reinforcement

strengthens a desired behavior by contingently withdrawing something displeasing.

Performance goal

targets a specific end result

Evaluating performance

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

Positive reinforcement

the process of strengthening a behavior by contingently presenting something appealing.

Punishment

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

Coaching can occur at any component in the PM process, but it most often follows

the review and consequences of performance.

Central tendency

the tendency to avoid all extreme judgments and rate people and objects as average or neutral

Halo effect

the tendency to form an overall positive impression of a person on the basis of one positive characteristic

Electronic performance monitoring (EPM)

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

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

variable pay