Chapter 10 Improving Job Performance with Feedback, Extrinsic Rewards, & Positive Reinforcement Understanding the Feedback Process Nontraditional Feedback: Upward and 360-Degree Positive Reinforcement

Feedback Instructional – clarifies roles, teaches behavior 10-3 Feedback Feedback objective information about performance Functions of Feedback Instructional – clarifies roles, teaches behavior Motivational – serves as reward To be used effectively managers must understand interaction between how feedback is given and how feedback is perceived McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Cognitive Processing Model of Feedback 10-4 Figure 10-2 Cognitive Processing Model of Feedback Recipient Characteristics Self-esteem Self-efficacy Needs and goals Desire for performance feedback Perception Sign and content of feedback message Cognitive Evaluations Feedback accuracy Source credibility System fairness Expectancies Behavioral Standards Sources Others Task Self Behavioral Outcomes Direction Effort Persistence Resistance McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Practical Lessons from Feedback Research 10-5 Practical Lessons from Feedback Research Feedback acceptance should not be treated as a give; often misperceived or rejected Managers can enhance credibility as sources of feedback by developing their expertise and creating a climate of trust Negative feedback is typically misperceived or rejected Feedback is too infrequent in organizations Feedback needs to be tailored to the recipient McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Practical Lessons from Feedback Research Cont. 10-6 Practical Lessons from Feedback Research Cont. High performers respond to feedback that enhances their feelings of competence and self-control Computer-based feedback leads to greater performance when received directly from computer Recipients perceive feedback as more accurate when they actively participate in the feedback session Destructive criticism tends to cause conflict and reduce motivation Higher one rises in an organization the less likely they are to receive quality feedback McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Nontraditional Feedback 10-8 Nontraditional Feedback Upward Feedback subordinates evaluate their boss 360-Degree Feedback comparison of anonymous feedback from one’s superior, subordinates, and peers with self-perceptions McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Sources and Types of Feedback in the 360-Degree Approach 10-9 Figure 10-3 Direct supervisor Manager/Focal Person Self-evaluation of a variety of skills Peers/team members Relevant others such as customers and suppliers Direct subordinates McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Tips for Giving Good Feedback 10-10 Tips for Giving Good Feedback Relate feedback to existing performance goals and expectations Give specific feedback tied to observable behavior 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 McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

General Model of Organizational Reward Systems 10-11 Figure 10-4 General Model of Organizational Reward Systems Profit maximization Equity Equality Need Organizational Reward Norms Types of Rewards Desired Outcomes Financial/material (extrinsic) Social (extrinsic) Psychic (intrinsic) Attract Motivate Develop Satisfy Retain Results Behavior Other factors Distribution Criteria McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Reward norms Profit maximization – maximizing one’s own gain Equity – rewards should be consistent with contributions Equality – rewards should be the same for everyone Need – rewards should not be distributed according to contribution

Reward Distribution Criteria Performance/results – rewards are given for tangible outcomes Performance/actions and behaviors – rewards are distributed for things worker does Nonperformance criteria – rewards are given for things other than performance

Why Do Extrinsic Rewards Fail to Motivate? 10-12 Why Do Extrinsic Rewards Fail to Motivate? Too much emphasis on monetary rewards Rewards lack an “appreciation effect” Extensive benefits become entitlements Counterproductive behavior 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 McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Maximizing Motivational Impact of Extrinsic Rewards 10-14 Maximizing Motivational Impact of Extrinsic Rewards Make pay for performance an integral part of the organization’s basic strategy. Base incentive determinations on objective performance data. Have all employees actively participate in the development, implementation, and revision of the performance-pay formulas. Encourage two-way communication so problems with the pay-for-performance plan will be detected early. McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Maximizing Motivational Impact of Extrinsic Rewards Cont. 10-15 Maximizing Motivational Impact of Extrinsic Rewards Cont. Build the pay-for-performance plan around participative structures such as suggestion systems or quality circles. Reward teamwork and cooperation whenever possible Actively sell the plan to supervisors and middle managers who may view employee participation as a threat to their traditional notion of authority If annual cash bonuses are granted, pay them in a lump sum to maximize their motivational impact Remember that money motivates when it comes in significant amounts, not occasional nickels and dimes McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Reinforcement Law of effect – behavior with a favorable consequence tends to be repeated and behavior with a negative consequence tends to disappear Operant behavior – action that is learned when one operates on the environment to produce desired consequences

Positive reinforcement – strengthening behavior by presenting something pleasing Negative reinforcement – strengthening behavior by taking away something displeasing Punishment – weakening behavior by presenting something displeasing or withdrawing something pleasing Extinction – weakening behavior by ignoring it or making sure it’s not reinforced

Contingent Consequences in Operant Conditioning 10-16 Figure 10-5 Contingent Consequences in Operant Conditioning Nature of Consequences Positive or Pleasing Negative or Displeasing Positive Reinforcement Punishment Contingent Presentation Punishment (Response Cost) Negative Reinforcement Behavior-Consequence Relationship Contingent Withdrawal (no contingent consequence) Extinction McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Schedules of Reinforcement 10-17 Table 10-3 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. McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Performance Appraisal Learning Module B Performance Appraisal

Performance Appraisal B-1 Performance Appraisal Performance Appraisal judgmental evaluation of one’s traits, behavior, or accomplishments as basis for personnel decisions and developmental plans McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Components of the Performance Appraisal Process B-3 Figure B-1 Components of the Performance Appraisal Process Appraiser Appraisal Method Outcomes Appraisee McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Basic Approaches to Appraising Job Performance Figure B-2 Basic Approaches to Appraising Job Performance The Trait Approach Moderately Decisive Very Decisive Indecisive How decisive is the individual? 1 2 3 4 5 McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Basic Approaches to Appraising Job Performance Figure B-2 cont. Basic Approaches to Appraising Job Performance The Behavioral Approach Works alone on all projects Teams up with others on most major projects Works alone on most on all major projects Works alone about half the time Teamwork (check the box that best describes this individual’s behavior) McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Basic Approaches to Appraising Job Performance Figure B-2 cont. Basic Approaches to Appraising Job Performance The Results Approach Key result area: Unit Sales 12-month goal: 12,000 units Actual results: 10,500 units Comments________________________________________________________________________________________________________________________________________________________ McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Criteria of Legally Defensible Performance Appraisal Systems Figure B-3 Criteria of Legally Defensible Performance Appraisal Systems A job analysis used to develop the appraisal system Based on an analysis of 51 employment discrimination cases, a performance appraisal system has a better change of standing up in court if it satisfies these criteria: Definite standards of performance are developed, written, and provided to all raters regardless of they type of rating methods used Raters are trained to properly use the rating instrument McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Criteria of Legally Defensible Performance Appraisal Systems Figure B-3 cont. Criteria of Legally Defensible Performance Appraisal Systems Formal appeal mechanisms are developed and performance ratings are reviewed by upper-level management Based on an analysis of 51 employment discrimination cases, a performance appraisal system has a better change of standing up in court if it satisfies these criteria: Performance ratings are supported with documented examples of behavior Employees are given a chance to improve their performance by provision of performance counseling or corrective guidance McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

A Contingency Approach to Performance Appraisals B-11 Table B-2 A Contingency Approach to Performance Appraisals Function of Appraisal Appraisal Method Comments Same as above Results Appropriate when competing appraisees have similar jobs Behavioral Appropriate when competing appraisees have dissimilar jobs Trait Promotion Decisions Identifies deficient results, but does not tell why Results Pinpoints specific performance improvement needs Behavioral Tends to cause defensiveness among low self-esteem employees Trait Development Decisions McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

A Contingency Approach to Performance Appraisals B-12 Table B-2 cont. A Contingency Approach to Performance Appraisals Function of Appraisal Appraisal Method Comments Same as above Results Enhances performance-reward linkage Behavioral Weak performance-reward linkage Trait Pay Decisions Same as above Results Weighted combination of behaviors, results, and seniority is recommended Behavioral Inappropriate, potentially discriminatory Trait Layoff Decisions McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.