MGMT 371 Chapter 8: Improving Job Performance with Feedback, Extrinsic Rewards, and Positive Reinforcement I. Feedback I. Feedback II. Extrinsic Rewards II. Extrinsic Rewards III. Positive Reinforcement

I. FEEDBACK n Feedback: Objective information about performance. n Functions of feedback: u Instructional u Motivational n Three Sources of feedback: u Others u Task u Oneself McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

I. Feedback C. Recipients 1. Characteristics 2. Perceptions

I. Feedback D. Behavioral Outcomes 1. Direction 2. Effort 3. Persistence 4. Resistance

Bolstering the Job Performance Cycle With Feedback, Rewards and Reinforcement McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Results Learning Personal development Stable, strong job performance Properly administered rewards and positive reinforcement Timely and instructive feedback EffortAbility

I. Feedback E. Nontraditional 1. Upward Degree

1. Traditional performance appraisal systems have created widespread dissatisfaction. 2. Team-based organization structures are replacing traditional hierarchies. 3. Multiple-rater systems are said to make feedback more valid than single-source feedback. McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Popularity of Nontraditional Feedback

4. Advanced computer network technology (the Internet and company Intranets) greatly facilitates multiple-rater systems. 5. Co-workers and lower-level employees are said to know more about a manager’s strengths and limitations than the boss. 6. Bottom-up feedback meshes nicely with the trend toward participative management and employee empowerment.

McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Skills & Best Practices: Effectively Giving Feedback n Tie feedback to existing performance goals and clear expectations. n Give specific feedback. n Provide feedback focused key result areas. n Give feedback ASAP. n Give positive feedback for improvement, not just final results. n Focus feedback on performance, not personalities. n Base feedback on accurate and credible information.

II. Extrinsic Rewards A. Org. Reward Norms B. Reward Distribution C. Pay for Performance D. Team Based

Organization Reward Norms n Profit Maximization u Pay least wages for max effort (org) u Max rewards (employee) n Reward Equity n Reward Equality n Need

McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Rewards Fail to Motivate When… 1. Too much emphasis on money 2. Benefits become entitlements 3. Wrong behaviors are rewarded 4. Performance and rewards aren’t linked 5. Rewards aren’t valued or varied 6. Use of one-shot rewards with a brief motivational impact 7. Using demotivating practices such as layoffs, punitive mgmt practices, excessive exec pay, etc.

III. Positive Reinforcement A. Thorndike’s Law of Effect B. Skinner’s Operant Conditioning

III. Positive Reinforcement C. Contingent Consequences 1. Positive Reinforcement 2. Negative Reinforcement 3. Punishment 4. Extinction

III. Positive Reinforcement D. Reinforcement Schedules 1. Continuous 2. Intermittent a. Fixed ratio a. Fixed ratio b. Variable ratio b. Variable ratio c. Fixed interval c. Fixed interval d. Variable interval d. Variable interval E. Behavior Shaping