1. Improving Job Performance with Goals, Feedback, Rewards, and Positive Reinforcement
Chapter Nine

2. Performance Management
an organization-wide system whereby managers integrate the activities of goal setting, monitoring and evaluating, providing feedback and coaching, and rewarding employees on a continuous basis
Performance management
an organization-wide system whereby managers integrate the activities of goal setting, monitoring and evaluating, providing feedback and coaching, and rewarding employees on a continuous basis

3. Improving Individual Job Performance
As illustrated in Figure 9–1, rewards are a critical component of a
performance improvement cycle. And just as any particular motivational approach
affects people differently (as you learned in Chapters 6 and 7), so do rewards.

4. Goal Setting
Employees with a clear line of sight understand the organization’s strategic goals and know what actions they need to take, both individually and a team members.
Employees with a clear line of sight understand the organization’s strategic goals and know what actions they need to take, both individually and a team members.

5. Two Types of Goals Performance outcome goal Learning goal
targets a specific end result.
Learning goal
strives to improve creativity and develop skills
Performance outcome goal
targets a specific end result.
Learning goal
strives to improve creativity and develop skills

6. Goal Setting Management by objectives
management system incorporating participation in decision making, goal setting, and feedback
Management by objectives
management system incorporating participation in decision making, goal setting, and feedback

7. Managing the Goal-Setting Process
Step 1: Set goals
Whether goals are imposed or, preferably, set participatively via a free exchange with one’s manager, they should be “SMART.”
specific, measurable, attainable, results oriented, and time bound
Step 1: Set goals
Whether goals are imposed or, preferably, set participatively via a free exchange with one’s manager, they should be “SMART.”
specific, measurable, attainable, results oriented, and time bound

8. Managing the Goal-Setting Process
Two additional recommendations:
For complex tasks, managers should train employees in problem- solving techniques and encourage them to develop a performance action plan
Two additional recommendations:
For complex tasks, managers should train employees in problem-solving techniques and encourage them to develop a performance action plan

9. Managing the Goal-Setting Process
Because of individual differences, it may be necessary to establish different goals for employees performing the same job.
Because of individual differences, it may be necessary to establish different goals for employees performing the same job.

10. Guidelines for Writing SMART Goals
SMART is an acronym for specific , measurable , attainable , results oriented, and time bound.
Table 9–1 lists practical guidelines for writing SMART goals.

11. Question?
Jim is the manager of a sales team at Woo Automotive. He expects his salespeople to sell 250 cars per week. Which guideline for writing SMART goals does this violate?
Specific
Measurable
Attainable
Time-bound
The correct answer is “C” – attainable. See previous slide.

12. Managing the Goal-Setting Process
Step 2: Promote goal commitment
Explain why the organization is committed to a comprehensive goal-setting program.
Create clear lines of sight by clarifying the corporate goals and linking the individual’s goals to them.
Let employees participate in setting their own goals
Have employees build goal ladders
Step 2: Promote goal commitment
1. Explain why the organization is committed to a comprehensive
goal-setting program.
2. Create clear lines of sight by clarifying the corporate goals
and linking the individual’s goals to them. Jeroen van der
Veer, CEO of Royal Dutch Shell, advises: “The task of leaders
is to simplify.” He says it should take no more than two
minutes to communicate the direction of the organization.
3. Let employees participate in setting their own goals and creating
their own action plans. Encourage them to set challenging
“stretch” goals. Goals should be difficult, but not
impossible.
4. Foster personal growth by having employees build goal ladders, chains of progressively more difficult and challenging
goals.

13. Managing the Goal-Setting Process
Step 3: Provide support and feedback
Make sure each employee has the necessary skills and information to reach his goals
Pay attention to employees’ effort→performance expectations, perceived self-efficacy, and reward preferences and adjust accordingly
Be supportive and helpful
Step 3: Provide support and feedback
Make sure each employee has the necessary skills and information to reach his goals
Pay attention to employees’ effort→performance expectations, perceived self-efficacy, and reward preferences and adjust accordingly
Be supportive and helpful

14. Feedback
Feedback
information about individual or collective performance
Feedback
information about individual or collective performance

15. Two Functions of Feedback
Instructional
clarifies roles or teaches new behaviors
Motivational
serves as a reward or promise of a reward
Feedback enhances the effect of specific, difficult goals
Instructional
clarifies roles or teaches new behaviors
Motivational
serves as a reward or promise of a reward
Feedback enhances the effect of specific, difficult goals

16. Question?
Grant is responsible for training new employees. He wants to make sure everyone knows their role in making the firm successful. This is __________ feedback.
Persistent
Motivational
Tutorial
Instructional
The correct answer is “D” – instructional. See previous slide.

17. Practical Lessons from Feedback Research
Managers can enhance their credibility as sources of feedback by developing their expertise and creating a climate of trust.
Negative feedback is typically misperceived or rejected
Recipients of feedback perceive it to be more accurate when they actively participate in the feedback session versus passively receiving feedback
Managers can enhance their credibility as sources of feedback by developing their expertise and creating a climate of trust.
Negative feedback is typically misperceived or rejected
Recipients of feedback perceive it to be more accurate when they actively participate in the feedback session versus passively receiving feedback

18. Six Common Trouble Signs for Organizational Feedback Systems
Managers who act on these research implications and the trouble signs in
Table 9–2 can build credible and effective feedback systems.

19. 360-Degree Feedback 360-Degree feedback
Letting individuals compare their own perceived performance with behaviorally specific (and usually anonymous) performance information from their manager, subordinates, and peers
360-Degree feedback
Letting individuals compare their own perceived performance with behaviorally specific (and usually anonymous) performance information from their manager, subordinates, and peers
Typically involve multiple sources of feedback

20. How to Give Feedback for Coaching Purposes and Organizational Effectiveness
Focus on performance, not personalities.
Give specific feedback linked to learning goals and performance outcome goals.
Channel feedback toward key result areas for the organization.
Give feedback as soon as possible.
Give feedback to coach improvement, not just for final results.
Focus on performance, not personalities.
Give specific feedback linked to learning goals and performance outcome goals.
Channel feedback toward key result areas for the organization.
Give feedback as soon as possible.
Give feedback to coach improvement, not just for final results.
Base feedback on accurate and credible information.
Pair feedback with clear expectations for improvement

21. A General Model of Organizational Reward Systems
Despite the fact that reward systems vary widely, it is possible to identify and
interrelate some common components. The model in Figure 9–2 focuses on three
important components: (1) types of rewards, (2) distribution criteria, and (3) desired
outcomes.

22. Types of Rewards Extrinsic rewards Intrinsic rewards
financial, material, or social rewards from the environment
Intrinsic rewards
self-granted, psychic rewards
Extrinsic rewards
financial, material, or social rewards from the environment
Intrinsic rewards
self-granted, psychic rewards

23. Question?
Angelo derives pleasure from the task of book writing itself. He can be described as __________ motivated.
Extrinsically
Financially
Materially
Intrinsically
The correct answer is “D” - intrinsically
AACSB:  Group-individual dynamics
Bloom's Taxonomy:  Application Difficulty:  Hard Page:  250

24. Reward Distribution Criteria
Performance: results
tangible outcomes
Performance: actions and behaviors
teamwork, cooperation, risk-taking
Non-performance considerations
contractual
• Performance: results. Tangible outcomes such as individual, group, or organizational performance; quantity; and quality.
• Performance: actions and behaviors. Such as
teamwork, cooperation, risk taking, and creativity.
• Nonperformance considerations. Customary or
contractual, where the type of job, nature of the
work, equity, tenure, level in hierarchy, etc., are
rewarded

25. Thomas’s Building Blocks for Intrinsic Rewards and Motivation
Thomas uses the concept of
building blocks to show managers how to construct the right conditions
for four basic intrinsic rewards: meaningfulness, choice, competence,
and progress (see Figure 9–3 ).

26. Why Do Extrinsic Rewards Too Often 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.
1. Too much emphasis on monetary rewards.
2. Rewards lack an “appreciation effect.”
3. Extensive benefits become entitlements.
4. Counterproductive behavior is rewarded. (For example, “a pizza delivery
company focused its rewards on the on-time performance of its drivers, only
to discover that it was inadvertently rewarding reckless driving.”) 68
5. Too long a delay between performance and rewards.
6. Too many one-size-fits-all rewards.
7. Use of one-shot rewards with a short-lived motivational impact.
8. Continued use of demotivating practices such as layoffs, across-the-board
raises and cuts, and excessive executive compensation.

27. Pay for Performance Pay for performance
monetary incentives linking at least some portion of the paycheck directly to results or accomplishments
Pay for performance
monetary incentives linking at least some portion of the paycheck directly to results or accomplishments

28. Getting the Most out of Extrinsic Rewards and Pay for Performance
Tie praise, recognition, and noncash awards to specific results.
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 of the performance-pay formulas
Reward teamwork and cooperation whenever possible
Tie praise, recognition, and noncash awards to specific results.
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
Reward teamwork and cooperation whenever possible

29. Thorndike’s Law of Effect
Behavior with favorable consequences tends to be repeated; behavior with unfavorable consequences tends to disappear
Law of effect
Behavior with favorable consequences tends to be repeated; behavior with unfavorable consequences tends to disappear

30. Question?
When Grant is praised for a work behavior, he will try hard to repeat it. This follows the law of ___________.
Affect
Effect
Effectiveness
Efficiency
The correct answer is “B” – effect. See previous slide.

31. Positive Reinforcement
Respondent behavior
Skinner’s term for unlearned reflexes or stimulus-response connections
Operant behavior
behavior that is learned when one “operates on” the environment to produce desired consequences.
Respondent behavior
Skinner’s term for unlearned reflexes or stimulus-response connections
Operant behavior
behavior that is learned when one “operates on” the environment to produce desired consequences.

32. Contingent Consequences in Operant Conditioning
Contingent consequences, according to Skinner’s operant theory,
control behavior in four ways: positive reinforcement, negative
reinforcement, punishment, and extinction. The term contingent
means there is a systematic if-then linkage between the target behavior and the consequence.
This represents an instrumentality according to expectancy theory. It therefore is
helpful to first think of the target behavior, and then think of the consequence you will
provide when applying contingent consequences (see Figure 9-4).

33. Contingent Consequences
Positive reinforcement
process of strengthening a behavior by contingently presenting something pleasing
Negative reinforcement
strengthens a desired behavior by contingently withdrawing something displeasing
Positive reinforcement
process of strengthening a behavior by contingently presenting something pleasing
Negative reinforcement
strengthens a desired behavior by contingently withdrawing something displeasing

34. Contingent Consequences
Punishment
process of weakening behavior through either the contingent presentation of something displeasing or the contingent withdrawal of something positive
Extinction
Weakening a behavior by ignoring it or making sure it is not reinforced
Punishment
process of weakening behavior through either the contingent presentation of something displeasing or the contingent withdrawal of something positive
Extinction
Weakening a behavior by ignoring it or making sure it is not reinforced

35. Schedules of Reinforcement
Continuous reinforcement
reinforcing every instance of a target behavior
Intermittent reinforcement
reinforcing some but not all instances of a target behavior
Continuous reinforcement
reinforcing every instance of a behavior
Intermittent reinforcement – reinforcing some but not all instances of behavior
Fixed ratio
Variable ratio
Fixed interval
Variable interval

36. Behavior Shaping Shaping
reinforcing closer and closer approximations to a target behavior
Shaping
reinforcing closer and closer approximations to a target behavior

37. Ten Practical Tips for Shaping Job Behavior
Table 9–3 lists practical tips on shaping.