Management chapter 6

Exit interviews provide:

-accurate information about why employees leave -guidance on what an organization does well -guidance on what an organization needs to improves

three common sources of feedback

1. others 2. task 3. self

Desired Outcomes

Attract Motivate Retain Develop Engage

Types of Rewards

Extrinsic- financial and non financial Intrinsic - meaningfulness and achievement

Distribution Criteria

Results Behaviors and Actions Nonperformance factors

Goal setting process

STEP 1: SET GOALS STEP 2: PROMOTE GOAL COMMITMENT STEP 3: PROVIDE SUPPORT AND FEEDBACK STEP 4: CREATE ACTION PLANS

Recency Effects (Perceptual Error)

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

SMART (acronym)

applied to goals Specific, Measurable, Attainable, Results oriented, and time bound

Operant Behavior (Skinner)

behavior that is learned when one "operates on" the environment to produce desired consequences. Response-stimulus (R-S) model operant conditioning- reinforce something with a reward when they do the target behavior (starving birds but giving them food when they exhibit the behavior you want them to exhibit)

law of effect (Edward L. Thorndike)

behavior with favorable consequences tends to be repeated, while behavior with unfavorable consequences tends to disappear <ex. rats with the lever that let them escape>

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 bablance COMPENSATION base pay, merit pay, incentives, promotions, and pay increases BENEFITS health and wellness, paid time off, and retirement PERSONAL GROWTH training, career development, and performance management

build commitment to goals

identifying key obstacles and sources of support

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

learning goal

involves enhancing your knowledge or skill

monitoring performance

measuring, tracking, or otherwise verifying progress and ultimate performance -use info gathered through monitoring to identify problems (and successes) and opportunities to enhance performance during the pursuit of a goal, and your final outcomes

positive reinforcement

process of strengthening a behavior by contingently presenting something pleasing <ex. rewarding employees who have perfect attendance records with a check for $100>

negative reinforcement

strengthening a desired behavior by removing a displeasing consequence

Halo (Perceptual Error)

to form an overall impression about a person or object and then use that impression to bias ratings about same <ex. rating an employee positively across all dimensions of performance becuase the employee is so likeable>

Extinction

weakening a behavior by ignoring it or making sure it is not reinforced <Ex. getting rid of a former BF/GF by refusing to return phone calls or texts, unfriending them on facebook> -pretty much what will happen to your house plants if you stop watering them

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, productions rates, error rates

Behavioral Goals

-can be used in most jobs -most relevant for knowledge work ex. treat others with professionalism and respect, communicate clearly

Intermittent Reinforcement

involves reinforcement of some but not all instances of a target behavior Variable Ratio and Variable Interval -produce the strongest behavior that is most resistant to extinction Continuous and Fixed -the least likely to have the desired effects over time"that underlie the direction, intensity, and persistence of behavior or thought

Effective Feedback

is only information- it is not an evaluation -ensures that manager and employee s are in sync and agree on the standards and expectations of the work to be performed -provide a road map to success -exchange information about the status and quality of work products

Respondent Behavior (Skinner)

labeled unlearned reflexes or stimulus- response (S-R) connections <ex. shedding tears while peeling onions or reflexively withdrawing one's hand from a hot stove>

performance goal

targets a specific end result

why PM can be unsuccesful

-can be impractical- they don't fit the situation and don't motivate the appropriate behaviors and outcomes -disconnect between the elements in your review and what you actually do day-to-day in your job. -focusing on one part of the process

Effective coaching

-developmental -has specific performance goals -typically involves considerable self-reflection, self assessment, and feedback

know types of rewards others value in an organization helps you

-identify employers with whom you fit -motivate others using rewards they value

it is important to use two way communication and follow up after disciplinary acts because

-it is perceived differently based on the sex of the person delivering it -it is perceived differently based on the cultural characteristics of the person delivering it. -it is affected by the supervisor's use of apologies and explanations

employers can support employee's achievement by:

-providing timely and task-specific feedback -provide needed training

executives and high level managers are able to get more accurate feedback about their own performance if they:

-separate feedback from the performance review process -seek it by creating an open, honest environment -collect feedback ananymously

reward system

-should attract and motivate talented people -should foster personal growth and development and keep talented people from leaving

Fundamental characteristics of action plans include:

-specific time limits -focusing on results -being specific about what will be achieved

conditions that make pay for performance effective include:

-using multiple measures of performance -calibrated performance measures that ensure accuracy -paying top performers a lot higher than other employees

undesirable behavior can be reduced by:

-using punishment -ignoring it

Common uses of PM (making employee related decisions such as pay raises, guiding employee training and development, clarifying expectations for advancement)

1. MAKE EMPLOYEE-RELATED DECISIONS -justify a pay raise, promotion, and new assignments -can generate documentation that could help justify termination and reduce the chances of wrongful dismissal lawsuit 2. GUIDE EMPLOYEE DEVELOPMENT -identifying your strengths and weaknesses -highlighting your training and development needs 3.SEND STRONG SIGNALS TO EMPLOYEES -what they are supposed to do -how to advance their careers within a given organization

Key components of organizational reward systems

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

results of effective performance management

50% less turnover 10-30% higher customer satisfaction ratings 40% higher employee commitment double the net profits

reinforcement schedule

FIXED RATIO piece rate pay, bonuses ties to the sale of a fixed number of units VARIABLE RATIO slot machines that pay after a variable number of pulls; lotteries that pay after a variable number of tickets sold FIXED INTERVAL paychecks (every two weeks or once a month), annual bonuses, and probationary periods VARIABLE INTERVAL random supervisor "pats on the back", spot rewards, random audits (ex. financial), random drug tests of athletes and employees, pop quizzes

Effective Performance Management Steps

STEP 1: DEFINE THE PROBLEM set goals and communicate performance expectations STEP 2: MONITOR & EVALUATE PERFORMANCE measure and evaluate progress and outcomes STEP 3: REVIEW PERFORMANCE deliver feedback and coaching STEP 4: PROVIDE CONSEQUENCES administer valued rewards and appropriate punishment

Central Tendency (Perceptual Error)

To avoid all extreme judgments and rate people and objects as average or neutral <ex. rating an employee as average on all dimensions of performance regardless of actual performance>

Leniency (Perceptual Error)

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 Effects (Perceptual Error)

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 notable performance of a few top performers>

coaching

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

Performance management (PM)

a set of processes and managerial behaviors that involve defining, monitoring, measuring, evaluating, and providing consequences for performance expectations - a continual process

continuous reinforcement schedule (CRF)

a target behavior is rewarded every time it occurs <ex. getting paid every time you made a sale> -desired behavior is sale..... reinforcement is the payment

Skinner's operant theory

control behavior by responding to a target behavior in one of four ways: positive reinforcement, negative reinforcement, punishment, extinction -contingent- there is a purposeful if-then linkage between the target behavior and the consequence

pay for performance

the monetary incentives that link a portion of pay directly to results or accomplishments

Punishment

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

non-cash motivators

there has been a trend toward this since the great recession -praise from immediate managers -leadership attention (ex. one on one conversations with leaders) -a chance to lead projects or task forces

monitoring performance Measures

timeliness quality quantity financial metrics (profits, returns, and other relevant accounting financial outcomes)

positive feedback

you recall it more accurately than negative feedback -negative feedback can be motivational