Evaluating and Rewarding Teams Chapter 16 16-1

Team Performance Evaluations Types of Evaluations: Traditional individual evaluations Team member evaluations Evaluations of the team Choosing a type of evaluation: Work design Organization operation Types of Measures: Specific, quantifiable goals set ahead of time Team participation 16-2

Team Performance Evaluations Participating in the Evaluation Process Shift to multi-rater evaluation process 360 degree feedback Team members Customers Supervisors Seen as more: Reliable, Valid, Credible, and Fair 16-3

Team Performance Evaluations Problems and Biases with Team Evaluations Encourage competition and reduce teamwork Problems with including team members: Personal relationships Favoritism Managers reluctant to give up power Discomfort evaluating coworkers Inflation bias Reciprocity bias Team halo effect 16-4

Reward Systems Types of Approach: Individual Team Organizational Social loafing Inequity problems Organizational Hybrid Mix of individual & team rewards can create social dilemma 16-5

Reward Systems Types of Teams 16-6

Rewarding Individual Team Members Changing Base Pay Fair and equitable Broad pay bands Benefit: More flexibility for managing teams Problem: Eliminates means of rewarding individual performance 16-7

Rewarding Individual Team Members Skill-Based Pay Encourages learning new skills Benefit: Improve team flexibility in performing task Organizational flexibility Problems: Training costs Promotions become limited Knowledge based pay, career ladders 16-8

Team and Organizational Reward Programs Team reward programs success depends on characteristics of: Rewards Substantial and distributed equally Organization Culture supports teamwork Team Clear team goals Measurable performance standards Task requiring interdependence 16-9

Team and Organizational Reward Programs Team Recognition Programs Recognition awards Levels of awards Organization-wide system for nominating Organizational Rewards Profit sharing Gain sharing Difficulty connecting employee behavior and performance of organization 16-10

Relationship of Rewards to Types of Teams 16-11

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Activity Continued 16-15