BUAD 304 Chapter 6

Feedback Do's

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

Key factors in Organizational Rewards

- type of rewards -distribution criteria -desired outcomes

Feedback Don't's

-Don't use feedback to punish, embarrass, or put somebody down -Don't provide feedback that is irrelevant to the person'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

Types of Rewards

-Financial, material, and social rewards qualify as extrinsic rewards because they come from the environment. -Psychic rewards, however, are intrinsic rewards because they are self-granted.

Three primary functions of performance management

-Make employee-related decision. -Guide employee development. -Signal desired employee behavior.

Monitoring performance

-Measuring, tracking, or otherwise verifying progress and ultimate outcomes. Consider: Timeliness Quality Quantity Financial metrics

How to boost the effectiveness of rewards?

-Pay for Performance: Popular term for monetary incentives that link at least some portion of pay directly to results or accomplishments. → Above and beyond basic wages and salary, including merit pay, bonuses, and profit-sharing. 1. Piece-Rate Pay: Most basic form of pay for performance, employee is paid specific amount for each unit of work, think contractors for cost of replacing roof. 2. Commissions: Specified amount of money for each unit sold. Company doesn't have to officially hire employees or pay the associated costs of taxes and benefits while workers get to control their hours, location, and amount of work they perform. 3. Aligning Organizational Objective and Rewards: Performance criteria in reward systems, i.e. paying workers more for sales made during undesirable hours.

How is the previous term achieved?

-Paying top-performers considerably more than other employees. -Reduced "gaming" of the system by increasing transparency. -Utilized multiple measures of performance. -Calibrated performance measures to ensure accuracy and consistency.

What goes wrong with performance management

-Performance Management practices are often obsolete as they are unable to keep up with changing customer needs and responsibilities. -Time consuming, 210 hours/year. -Performance reviews are too narrow.

Alternatives to Money and Promotions

-Praise from immediate managers (email or handwritten notes, recognition in meetings) -Attention from leadership (one-on-one conversations with top leaders, lunch). -Opportunities to lead projects or task forces (such as for new products, new practices, or market research).

Learning goal

-Promotes enhancing your knowledge or skill. -If skills are lacking, set learning goals before performance goals.

Using Reinforcement to Condition Behavior, B. F. Skinner's Behaviorism.

-Respondent behavior: Unlearned reflexes or stimulus-response (S-R) connections. -Operant Behavior: Behavior learned when we "operate on" the environment to produce desired consequences. Some call this view the response- (R-S) model.

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

1. Positive reinforcement 2. Negative reinforcement 3. Punishment 4. Extinction

Increase desired behavior

1. Positive reinforcement, the process of strengthening a behavior by contingently presenting something pleasing. 2. Negative reinforcement, also strengthens a desired behavior by contingently withdrawing something displeasing.

Decrease Undesired Behavior

1. Punishment, process of weakening behavior through either the contingent presentation of something displeasing or the contingent withdrawal of something positive. 2. Extinction, weakening a behavior by ignoring it or making sure it is not reinforced. I.e. blocking ex-boyfriend's number to discourage him.

Goal-setting process

1. Set goals with Specific, Measurable, Attainable, Results oriented, Time bound (SMART) applied to goals. 2. Promote Goal Commitment. (TIPS WITH PICTURE pg. 212) 3. Provide Support and Feedback. 4. Create Action Plans.

Why rewards often fail

1. Too much emphasis on monetary rewards 2. Sense in recipient that expensive 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 demotivational practices such as layoffs, across-the-board raise and cuts, and excessive executive compensation.

Three potential outcomes from rewards

1.Desired outcome. You get 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.

Factors affecting your perceptions of feedback

Accuracy Credibility of sources Fairness of the system Performance-reward expectancies Reasonableness of the goals or standards

Law of effect

Behavior with favorable consequences tends to be repeated, while behavior with unfavorable consequences tends to disappear.

Exit and Stay Interviews, provide insight into:

Build employee engagement Highlight needed action Help benchmark Make former employees into recruiters Make former employees into customers or partners

Intermittent reinforcement

Consists of reinforcement of some but not all instances of a target behavior. For subcategories (see image below). TABLE 6.9 pg. 241

Positive Reinforcement Schedules

Continuous reinforcement and Intermittent reinforcement

Coaching

Customized process between two or more people with the intent of enhancing learning and motivating change.

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.

Nonperformance considerations

Examples are abundant, such as rewards linked to seniority or job title.

Behavior and actions

Examples are teamwork, cooperation, risk taking, and creativity.

Feedback

Feedback: Information about individual or collective performance shared with those in a position to improve the situation. → Subjective evaluation is not considered effective feedback. Has two functions: instructional and motivational. Sources of feedback: Others, tasks (often overlooked), self (contaminated by self-bias).

Halo effect

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

Perceptual Errors in Evaluating Performance

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

Continuous reinforcement (CRF)

If every instance of a target behavior is reinforced.

Contingent Consequences

Increase Desired Behavior and Decrease Undesired Behavior

360 degree feedback

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

Evaluating performance

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

Distribution criteria

Results Behaviors and Actions Nonperformance factors

Performance management

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

Practical implications for using the strongest schedule (Difficult to explain in bullet points).

Spot rewards: Variable rewards/bonuses Celebrations

Results

Tangible results include quantity produced, quality, and individual, group or organizational performance. Often accounting-type measures- sales, profit, or error rate. Employers increasingly include customer satisfaction.

Performance goal

Targets a specific end result.

Central tendency

To avoid all extreme judgements and rate people and objects as average or neutral.

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.

operant behavior

behavior learned when we operate on the environment to produce desired consequences. Some call this view the response-stimulus (R-S) model

Law of effect

says behavior with favorable consequences tend to be repeated while behavior with unfavorable consequences tend to disappear

respondent behavior

unlearned reflexes or stimulus-- response (S-R) connections