Chapter 6

steps in implementing a goal-setting program

1. defining goals 2. ensuring there is commitment to goals 3. giving feedback 4. writing an action plan

4 components of effective PM

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

three potential outcomes from rewards:

1. desired outcome. you get more of what you intended and for which you are rewarding people 2. nothing. the reward can have no effect 3. undesired side effects. rewards reinforce or motivate the wrong behaviors

3 qualities Gallup recommends that make performance management more effective

1. establish expectations that are clear, collaborative, and aligned 2. continually coach 3. create accountability

behavioral goals

Can be used in most jobs. Most relevant for knowledge work. Ex: Treat others with professionalism and respect, communicate clearly.

True/False: Many work organizations use fixed schedules rather than variable interval schedules of reinforcement.

TRUE! reason: The majority of work organizations rely on fixed intervals of reinforcement, like hourly wages and annual reviews and raises.

True or false: Managing the timing of the reinforcement will likely enhance the effectiveness of positive reinforcement.

TRUE! reason: positive reinforcement is enhanced by managing the timing or schedule of reinforcement.

common perceptual errors related to performance evaluation

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

examples of effective feedback

hard data such as units sold, days absent, dollars saved, projects completed, customers satisfied, and quality rejects

benefits

health and wellness care, savings and retirement planning, and paid time off

for feedback to be perceived as useful and credible, it must be

honest, timely, and constructive

360-degree feedback

individuals compare perceptions of their own performance with behaviorally specific (and usually anonymous) performance information from their manager, subordinates, and peers (multi-rater feedback...this type of feedback can also include feedback from customers and suppliers)

feedback

information about individual or collective performance shared with those in a position to improve the situation // information about performance given to those who can make the situation better

feedback is more likely to be acted upon when it is ________ and helps achieve an important goal

instructional

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

intermittent reinforcement

When only some, not all, instances of a target behavior are reinforced, it is called __________ reinforcement.

intermittent reinforcement

What are two common means for timing the administration of positive reinforcers?

intermittent reinforcement continuous reinforcement

Fixed ratio, variable ratio, fixed interval, and variable interval are four subcategories of ______ reinforcement schedules.

intermittent reinforcement schedules

what's wrong with feedback from yourself

it can be biased and other perceptual problems can contaminate this source of feedback

feedback instructs when

it clarifies roles or teaches new behavior ex. an assistant accountant is advised to handle a certain entry as a capital item rather than as an expense item

feedback is most likely to be perceived accurately when

it is instructional and helps achieve an important or valued outcome

feedback motivates when

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

Which of the following factors have a tendency to demotivate employees?

layoffs and cutbacks extreme executive compensation across-the-board raises

aspects of a learning goal

learning new knowledge, adding to a skill set

reasons employees have negative views of performance management systems

limited guidance on how to improve performance, infrequent feedback, failure of managers to understand employee responsibilities

component 2: monitor and evaluate performance

measure and evaluate progress and outcomes

performance monitoring / monitoring performance

measuring, tracking, or otherwise verifying progress and ultimate outcomes...this information is used to identify problems and successes and to find opportunities for enhancing performance during the pursuit of a goal. to be effective, you must use or create accurate and appropriate measures

pay for performance

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

Examples of pay for performance rewards include:

merit pay bonuses

example of nonperformance considerations

nature of the work

to avoid creating insecurity and defensiveness, negative feedback

needs to be administered carefully. both negative and positive feedback need to provide clear guidance to improve performance

effective feedback IS...

only information-it is NOT an evaluation

three common sources of feedback

others, task, self

Compensation, such as bonuses, that is above and beyond basic salary is called ______ for performance.

pay

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

others

peers, supervisors, lower-level employees, and customers

2 types of goals

performance and learning

goals

performance expectations

total rewards offered by an organization may include

personal growth opportunities such as training, benefits such as health and wellness and retirement funds, and compensation such as base pay and other monetary incentives

work-life effectiveness

policies and practices to help employees thrive at work and home

some of the biggest detriments of the performance management system

poorly translated actionable goals for improvement, excessive emphasis on compensation, lack of fairness by the manager

negative feedback can have a ____________ motivational effect

positive

if feedback is so helpful, why don't we get and give more of it?

potential strain on relationships, too little time, lack of confidence, no consequences

negative reinforcement

process of strengthening a behavior by withdrawing something negative (taking away something bad)

example of results

profit

a desired outcome of a good ________ system is to foster personal growth and development

reward

a desired outcome of the ______ system is to retain talented people

reward system

key components such as types of rewards, distribution criteria, and desired outcomes are part of an organization's

reward system

Key components such as types of rewards, distribution criteria, and desired outcomes are part of an organization's:

reward systems (Reason: Selection systems focus on choosing which employees to hire/fire/promote)

total rewards

rewards encompassing 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

intrinsic rewards

self-granted rewards, such as psychic rewards

component 1: define performance

set goals and communicate performance expectations

Pay for performance results tend to be best when organizations do which of the following?

significantly reward top performers consider multiple performance measures enact a transparent system

SMART goals

specific, measurable, attainable, realistic, time bound

time bound

specify target dates for goal completion

specific

state goals in specific rather than concise terms (ex. i will do 20 hours of training VS i want to do more training)

what DOES NOT qualify as effective feedback

subjective assessments such as "you're lazy" or "you have a bad attitude." these are simply opinions and often have little value

performance goal

targets a specific end result

example of behavior

teamwork

electronic performance monitoring (EPM)

technology used to gather, store, analyze, and report employee behavior....employers are capturing employee facial expressions, tone of voice, emotions, location, interactions, bio/health data, etc.

feedback ensures...

that the manager and employees are in sync and agree on the standards and expectations of the work to be performed

elements that should fit the situation as part of the contingency approach to goal setting

the behavior, the practice, the policy

evaluating performance / performance evaluation

the process of comparing performance at some point in time to a previously established expectation or goal....measures of performance should be both relevant and accurate

positive reinforcement

the process of strengthening a behavior by contingently presenting something pleasing (adding something good)

punishment

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

accuracy

the wrong things are measured or the right things are measured the wrong way

why do so few people want to provide negative feedback

they are concerned about how the employee will react, they are uncomfortable delivering bad news, they worry the exchange will harm their working relationship

monitoring:

timeliness, quality, quantity, financial metrics

central tendency

to avoid all extreme judgements and rate people and objects as average or neutral ex. rating an employee as average on all dimensions regardless of actual performance

leniency

to consistently evaluate other people or objects in an extremely positive fashion ex. rating an employee high on all dimensions of performance regardless of actual performance

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 with the exceptional performance of a few top performers

results oriented

to focus on desired end results, goals should start with the word to followed by verbs such as complete, acquire, produce, increase, and decrease

halo effect

to form an overall impression about a person or object and then use that impression to bias ratings about some ex. rating an employee positively across all dimensions of performance bc the employee is so like-able

two primary functions of feedback (for those who receive it)

to instruct and to motivate

recency effect

to over-rely on the most recent information. if it is negative, the person or object is evaluated negatively ex. rating an employee on the last portion of the review period

which statements describe why rewards often fail to motivate employees

too much time passes between the achievement and the reward, motivation is impacted by the use of one-shot rewards, and monetary rewards are over emphasized

Compensation, benefits, and personal growth opportunities are all part of an organization's:

total rewards

measurable

track your progress and verify whether a goal has been achieved or not. this requires some form of measurement or verification-quantity, quality, completed (yes or no), other relevant details

monitoring performance / performance monitoring involves

tracking the achievement of the goal, measuring the progress toward the goals

talent development

training, career development, and other support necessary to improve performance and advance careers

Which types of rewards can enhance the value of your overall compensation?

tuition benefits vacation time work flexibility

Of the three potential outcomes from rewards, which one motivates the wrong behaviors?

undesired side effects

When a teacher uses pop quizzes and unannounced tests to determine students' grades, what type of reinforcement schedule is being used?

variable interval

The reinforcement schedules that produce the strongest behavior that is most resistant to extinction include:

variable ratio schedules variable interval schedules

timeliness

was the work completed on time? ex. answering the phone call within a certain number of rings

extinction

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

financial metrics

what are the profits, returns, or other relevant accounting/financial outcomes? ex. some law firms measure the performance of attorneys and the larger firm by calculating profits in dollars per partner

instructional function of feedback

when new behaviors are taught & when roles are made more clear

ways to increase goal commitment

writing your goals down, identifying key obstacles and sources of support, ask what's in it for yourself, break it down, visualize, organize, reward yourself

after performance expectations (goals) have been communicated,

you're ready to monitor and evaluate progress and ultimate performance. doing both of these things boosts motivation and performance

if you are surprised by something shared during your review (surprised by feedback) then

your manager is doing a poor job of managing your performance. it's also a sign that they're not giving you the appropriate quantity and quality of feedback.

task

common source of objective feedback ex. writing code, landing a plane, or driving a golf ball all provide a steady stream of feedback about how well or poorly you are doing

the primary functions of performance management include

communicating the employee behavior that is being sought, making decisions related to employees such as pay raises, guiding employee training and development

If a target behavior is rewarded every time it occurs, then it is a

continuous reinforcement schedule

Jordan sells on commission and is paid for every sale. This is an example of a:

continuous reinforcement schedule

feedback delivery tends to be...

direct, critical

traditional appraisals

discourage two-way communication and treat employee involvement as a bad thing. employees are discouraged from participating in a performance review, and when they do, their responses are often considered "rebuttals"

Which of the following ideas will help someone excel as an employee?

discovering what the company says it values and what it actually rewards finding a manager who uses performance management practices that align with your values and aspirations seeking regular feedback

Not reinforcing or ignoring an undesirable behavior is called

extinction

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

extrinsic rewards

financial, material, and social rewards originating from the environment

When a teacher bases students' grades on a midterm and a final exam of equal weight, what type of reinforcement schedule is being used?

fixed interval

recognition

formal and informal programs that acknowledge employee efforts and behaviors that support the organization's strategies and objectives

a good reward system should not only attract and motivate talented people, but it should also

foster development and keep talented people from leaving

successful coaching is

frequent, focused, and future-oriented

what elements need to be monitored/evaluated when determining someone's performance

goal achievement, progress toward the goal

attainable

goals should be realistic and achievable for the client so that progress, however incremental, is possible. impossible goals reduce motivation because people do not like to fail

Skinner concluded that behavior is:

respondent and operant

Skinner labeled unlearned reflexes, or stimulus-response connections _______ behavior

respondent behavior

respondent behavior

automatic reactions to stimuli, or stimulus-response (S-R)

DON'Ts of feedback

-don't use feedback to punish, embarrass, or put someone down -don't provide feedback that is irrelevant to someone's work -don't provide feedback too late to do any good -don't provide feedback about something beyond the individual's control -don't provide feedback that is overly complex or difficult to understand

today's trends in feedback

-feedback is becoming more informal, continual, and inclusive -it's increasingly taking place between employees rather than solely managers and subordinates

DO's of feedback

-keep feedback relevant by relating it to existing goals -deliver feedback as close as possible to the time the behavior was performed -provide specific and descriptive feedback -focus the feedback on things employees can control -be honest, developmental, and constructive

three general criteria for distributing rewards:

-results. tangible results include quantity produced, quality, and individual, group, or organizational performance. these are often accounting-type measures--sales, profit, or error rate. employers increasingly include customer satisfaction -behavior and actions. examples are teamwork, cooperation, risk taking, and creativity -nonperformance considerations. examples are abundant, such as rewards linked to seniority or job title. associate attorneys' salaries are commonly linked to the number of years out of law school-first year associates get paid a set salary, which differs from second-year associates, and so on. night or weekend shifts often pay differently. perks provided to executives, like use of a company plane or membership to a golf club, are nonperformance rewards. they get them just because they hold the job not because of what they do

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

-the quantity of feedback is insufficient -the quality of feedback is lacking

all managers and employees are susceptible to the fundamental attribution bias and the self-serving bias. these are...

-your manager attributes your poor performance entirely to you and things you control -you are likely to take credit for positive performance outcomes and attribute poor performance to extrinsic factors

6 primary outputs and functions of performance management systems

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

steps in the goal setting process

1. set goals 2. promote goal commitment 3. provide support and feedback 4. create action plans

some of the reasons rewards fail to motivate

1. too much emphasis on monetary rewards 2. sense in recipient that extensive benefits are entitlements 3. fostering of counterproductive behavior 4. long delay between performance and reward 5. one-size-fits-all rewards 6. use of one-shot rewards with short-lived motivational impact 7. continued use of demotivating practices such as layoffs, across-the-board raises and cuts, and excessive executive compensation

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

objective goals

Best for jobs with clear and readily measured outcomes Measure what matters, not just what can be measured Ex: Sales Quotas, Production Rates, Error Rates

The key components of an organizational reward system include:

desired outcomes distribution criteria types of rewards

coaching

a customized process between two or more people with the intent of enhancing learning and motivating change or improving an individual's behavior and performance to resolve work issues or handle specific aspects of the job and may be short term // one way to look at coaching is that it is an individualized and customized form of PM

continuous reinforcement (CRF)

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

intermittent reinforcement

a reinforcement schedule in which some but not all instances of a target behavior are reinforced

performance management (PM)

a set of processes and managerial behaviors that include defining, monitoring, measuring, evaluating, and providing consequences for performance expectation // a process that defines expectations, evaluates performance against the expectations, and ensures consequences

factors that can affect your perceptions of feedback

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

component 4: provide consequences

administer valued rewards and appropriate punishment

fixed interval reinforcement schedule

advantages: clear and predictable link between the behavior and reinforcer; less costly than fixed ratio disadvantages: inconsistent effort and performance over the interval (majority of effort/performance occurs near reinforcers) example: paychecks (every 2 weeks or once a month); annual bonuses; probationary periods

fixed ratio reinforcement schedule

advantages: clear and predictable link between the behavior and the reinforcer disadvantages: costly to monitor performance and administer reinforcers (like money); reinforcers lose effect over time example: piece-rate pay; bonuses tied to the sale of a fixed number of units

variable interval reinforcement schedule

advantages: consistent and strong motivation to perform over time; least costly schedule due to relatively little monitoring and administration disadvantages: some desired behaviors will not be reinforced; potentially long periods between reinforcers (payouts) example: random supervisor "pats on the back"; spot rewards; random audits (financial); random drug tests of athletes and employees; pop quizzes

variable ratio reinforcement schedule

advantages: strong motivation to continue until reinforcer is received; less costly than fixed ratio disadvantages: some desired behaviors will not be rewarded; potentially long periods between reinforcers (such as payouts) example: slot machines that pay after a variable number of pulls; lotteries that pay after a variable number of tickets sold

coaching can occur

at ANY component in the PM process, but it most often follows the review and consequences of performance

compensation

base pay, merit pay, incentives, promotions, and pay increases

tips to consider when utilizing monitoring for performance at work

be transparent, monitor only work, focus on development rather than punishment or deterrence, make it fit and be fair

Thorndike's Law of Effect

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

other ways to define goals

behavioral, objective, and task/project....defining goals this way helps you ensure your goals match the situation

operant behavior

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

Which conditions help make pay for performance effective?

calibrated performance measures that ensure accuracy paying top performers much more than other employees using multiple measures of performance

to avoid surprises,

check in with your manager periodically and informally ask "is there anything i should be aware of? i know we'll have my review later this year, and i want to be sure there are no surprises...even positive ones"

component 3: review performance

deliver feedback and coaching

What are results, behaviors, actions, and nonperformance factors examples of?

distribution criteria for rewards

the key components of an organizational reward system include

distribution criteria, desired outcomes, and types of rewards

Which of the following can be influenced by promotions and pay raises?

employees' intentions of quitting employees' perception of fairness employees' emotional well-being

feedback....

enables you to learn how your performance compares to the goal, which you can then use to modify your behaviors and efforts

goal commitment boosts motivation to complete a goal, and commitment can be increased by

ensuring goals are personally relevant, obtainable, and fair

Which of the following takeaways will prove helpful to managers?

ensuring your direct reports set SMART goals setting clear expectations and providing regular feedback clearly linking rewards to expectations

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

evaluating performance

In order to determine if the rewards given to employees are having the desired outcome, a manager should link rewards to which of the following aspects?

expectations results

quantity

how much? ex. number of units sold

quality

how well was the work done? ex. greeting customers warmly, personally, and with a smile. measurement consists of observing/reporting that these actually occurred

It is important to monitor progress toward goal achievement in order to:

identify problems while pursuing a goal

credibility of the sources

if a member of your project team points out shortcomings in your work, you are likely to put more weight on the feedback if he or she is an "A" student or top performer. trust is critical here too. if you don't trust the person delivering the feedback, you will likely be suspicious of his or her intentions and discount its value

fairness of the system

if you perceive the process or outcomes as unfair-recall equity theory-you are likely not only to discount the feedback but also to be outraged, withdraw, commit counterproductive work behaviors, and/or quit. performance appraisals are one of the aspects of organizational life that most commonly reveal issues of fairness

terms describing trends in feedback

inclusive, informal, continual

A colleague receives a significant reward for work you accomplished together, but you do not receive a similar reward. What impact might that have on you?

inconsistent future performance loss of motivation

learning goal

promotes enhancing your knowledge or skill

Cutting the pay of two top executives at Carnival Cruises because of major accidents and mishaps is the form of behavior modification known as

punishment

tips to improve feedback skills and provide pointers on how to deliver it:

reflect, cultivate trust, be action-oriented

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

relevancy, accuracy