CH 6: Performance Management
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
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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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