McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

16 Behavioral Performance Management

McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Learning Objectives  Define the theoretical processes of learning: behavioristic, cognitive, and social.  Discuss the principle of reinforcement, with special attention given to the law of effect, positive and negative reinforcers, and punishment.  Analyze organizational reward systems, emphasizing both monetary and nonfinancial rewards.  Present the steps and results of behavioral performance management, or organizational behavior modification (O. B. Mod.).

McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Starting with Best-Practice Leader’s Advice  Ed Lawler, Director of the Center for Effective Organizations, on the Complexities of Using Pay in Performance Management  best known for research & practical application of reward pay  50 to 80 percent of employees have pay dissatisfaction  Stock option plans that cover all employees  Spruce up value proposition to recruit and retain  Motivation occurs as a result of what people think will happen to them when they perform well  Identify core group of employees—20 percent  80 percent resent 20 percent

McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Learning Theory Background  Behavioristic Theories  Classical Conditioning  Operant Conditioning  Cognitive Theories

McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Learning Theory Background (Continued)

McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Learning Theory Background  Social Learning and Social Cognitive Theory  Social Learning  Social Cognition  Modeling Processes  Self-Efficacy (Continued)

McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Principles of Learning: Reinforcement and Punishment  Laws of Behavior  Critique of Reinforcement Theory  Reinforcement as Used in Behavioral Management  Positive and Negative Reinforcers

McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Principles of Learning: Reinforcement and Punishment (Continued)

McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Principles of Learning: Reinforcement and Punishment  The Use of Punishment  The Meaning of Punishment  Administering Punishment  Guidelines for Discipline (Continued)

McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. The Role of Organizational Reward Systems  Analysis of Money as a Reinforcer  Nonfinancial Rewards  Social Recognition and Attention  Performance Feedback

McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Behavioral Performance Management, or O. B. Mod.  Step 1: Identification of Performance Behaviors  Step 2: Measurement of the Behavior  Step 3: Functional Analysis of the Behavior  Step 4: Development of an Intervention Strategy  A Positive Reinforcement Strategy  A Punishment-Positive Reinforcement Strategy  Step 5: Evaluation to Ensure Performance Improvement

McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Behavioral Performance Management, or O. B. Mod.  Application of Behavioral Management  Manufacturing versus Service Applications (Continued)

McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Questions