Performance Management Chapter Four Performance Management

Chapter Four Outline Providing Effective Feedback Two Functions of Feedback Three Sources of Feedback: Others, Task, and Self The Recipient’s Perspective of Feedback Behavioural Outcomes of Feedback Nontraditional Upward Feedback and 360-Degree Feedback Why Feedback Often Fails

Chapter Four Outline (cont’d) Organizational Reward Systems Types of Rewards Organizational Reward Norms Distribution Criteria Desired Outcomes Why Rewards Often Fail to Motivate Positive Reinforcement Schedules of Reinforcement Shaping Behaviour with Positive Reinforcement

Feedback Feedback is objective information about individual or collective performance. Functions of Feedback: -Instructional -Motivational Sources of Feedback Other Task Self

Nontraditional Feedback Upward Feedback Subordinates evaluate their manager’s style and performance. 360-Degree Feedback Specific (typically anonymous) feedback generated by one’s manager, peers, subordinates, and other key people.

Why Feedback Often Fails It is used to punish, embarrass or put down employees Recipients see it as irrelevant to their work It is provided too late to do any good Recipients believe it relates to matters beyond their control Too much time is spent collecting and recording feedback data It is too complex and difficult to understand

How to Make Sure Feedback Gets Results Managers need to keep the following tips in mind when giving feedback: Relate feedback to existing performance goals and clear expectations. Give specific feedback tied to observable behaviour or measurable results. Channel feedback toward key result areas. Give feedback as soon as possible. Give positive feedback for improvement, not just final results. Focus feedback on performance, not personalities. Base feedback on accurate and credible information.

Organization’s Reward Norms Distribution Criteria Key Factors in Organizational Reward Systems Organization’s Reward Norms Profit maximization Equity Equality Need Types of Rewards Financial/material (extrinsic) Social (extrinsic) Internal (intrinsic) Desired Outcomes Attract Motivate Develop Satisfy Retain Distribution Criteria Results Behaviour Other factors

Why Rewards Often Fail to Motivate Too much emphasis on monetary rewards Rewards lack an “appreciation effect” Extensive benefits become entitlements Counterproductive behaviour is rewarded Too long a delay between performance and rewards Too many one-size-fits-all rewards Use of one-shot rewards with a short-lived motivational impact Continued use of demotivating practices such as layoffs, across-the-board raises and cuts, and excessive executive compensation

Contingent Consequences in Operant Conditioning Nature of Consequences Positive or Pleasing Negative or Displeasing Positive Reinforcement Behavioural outcome: Target behaviour occurs more often. Punishment Behavioural outcome: Target behaviour occurs less often. Contingent Presentation Behaviour-Consequence Relationship Punishment (Response Cost) Behavioural outcome: Target behaviour occurs less often. Negative Reinforcement Behavioural outcome: Target behaviour occurs more often. Contingent Withdrawal (no contingent consequence) Extinction Behavioural outcome: Target behaviour occurs less often

Schedules of Reinforcement Schedule Description Continuous Reinforcer follows every response (CRF) Intermittent Reinforcer does not follow every response Fixed ratio (FR) A fixed number of responses must be emitted before reinforcement occurs. Variable ratio (VR) A varying or random number of responses must be emitted before reinforcement occurs. Fixed interval (FI) The first response after a specific period of time has elapsed is reinforced Variable interval (VI) The first response after varying or random periods of time have elapsed is reinforced.

How to Effectively Shape Job Behaviour Accommodate the process of behavioural change. Define new behaviour patterns specifically. Give individuals feedback on their performance. Reinforce behaviour as quickly as possible. Use powerful reinforcement. Use a continuous reinforcement schedule for new behaviours Use a variable reinforcement schedule for maintenance Reward teamwork -- not competition. Make all rewards contingent on performance. Never take good performance for granted.