2. Improving Performance with Feedback, Rewards, and Positive Reinforcement Chapter Eight Copyright © 2008 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Organizational Behavior: Key Concepts, Skills & Best Practices, 3/e

3. 8-3 After reading the material in this chapter, you should be able to: Specify the two basic functions of feedback and three sources of feedback. Define upward feedback and 360-degree feedback, and summarize the general tips for giving good feedback. Distinguish between extrinsic and intrinsic rewards, and give a job-related example of each

4. 8-4 After reading the material in this chapter, you should be able to: Summarize the research lessons about pay for performance, and explain why rewards often fail to motivate employees. State Thorndike’s “law of effect” and explain Skinner’s distinction between respondent and operant behavior. Demonstrate your knowledge of positive reinforcement, negative reinforcement, punishment, and extinction and explain behavior shaping

5. 8-5 Bolstering the Job Performance Cycle with Feedback, Rewards, and Reinforcement Figure 8-1

6. 8-6 Providing Effective Feedback Feedback – objective information about individual or collective performance shared with those in a position to improve the situation

7. 8-7 Two Functions of Feedback Instructional - clarifies roles or teaches new behaviors Motivational – serves as a reward or promise of a reward -Can be significantly enhanced by pairing specific, challenging goals with specific feedback about results

8. 8-8 Sources of Feedback Others – -peers, supervisors, lower-level employees, and outsiders Task Oneself -Self-serving bias and other perceptual problems can contaminate this source

9. 8-9 Behavioral Outcomes of Feedback Direction Effort Persistence Resistance

10. 8-10 Nontraditional Feedback Upward feedback – -employees evaluate their boss 360-Degree feedback – -comparison of anonymous feedback from one’s superior, subordinates, and peers with self-perceptions Typically involve multiple sources of feedback

11. 8-11 Popularity of Nontraditional Feedback 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.

12. 8-12 Popularity of Nontraditional Feedback 4.Advanced computer network technology (the Internet and company Intranets) greatly facilitates multiple-rater systems. 5.Bottom-up feedback meshes nicely with the trend toward participative management and employee empowerment. 6.Co-workers and lower-level employees are said to know more about a manager’s strengths and limitations than the boss.

13. 8-13 Upward Feedback Managers resist upward feedbacks programs because they believe it erodes their authority Anonymous upward feedback can become little more than a personality contest

14. 8-14 Practical Recommendations Research evidence on upward and 360- degree feedback favors anonymity and discourages use for pay and promotion decisions

15. 8-15 How to Make Sure Feedback Gets Results Relate feedback to existing performance goals and clear expectations. Give specific feedback tied to observable behavior or measurable results. Channel feedback toward key result areas. Give feedback as soon as possible.

16. 8-16 How to Make Sure Feedback Gets Results Give positive feedback for improvement, not just final results. Focus feedback on performance, not personalities. Base feedback on accurate and credible information.

17. 8-17 Why Feedback Often Fails 1.Feedback is used to punish, embarrass, or put down employees. 2.Those receiving the feedback see it as irrelevant to their work. 3.Feedback information is provided too late to do any good.

18. 8-18 Why Feedback Often Fails 4.People receiving feedback believe it relates to matters beyond their control. 5.Employees complain about wasting too much time collecting and recording feedback data. 6.Feedback recipients complain about feedback being too complex or difficult to understand.

19. 8-19 Key Factors in Organizational Reward Systems Figure 8-2

20. 8-20 Question? What type of reward is a self-granted reward? A.Distinguished B.Extrinsic C.Instinctive D.Intrinsic

21. 8-21 Types of Rewards Extrinsic rewards – financial, material, or social rewards from the environment Intrinsic rewards – self-granted, psychic rewards

22. 8-22 Distribution Criteria Performance: results – -tangible outcomes Performance: actions and behaviors – -teamwork, cooperation, risk-taking Non-performance considerations – -contractual

23. 8-23 Pay for Performance Pay for performance – monetary incentives tied to one’s results or accomplishments

24. 8-24 Why Rewards Fail to Motivate 1.Too much emphasis on monetary rewards 2.Rewards lack an “appreciation effect” 3.Extensive benefits become entitlements 4.Counterproductive behavior is rewarded 5.Too long a delay between performance and rewards

25. 8-25 Why Rewards Fail to Motivate 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

26. 8-26 Positive Reinforcement Respondent behavior – Skinner’s term for unlearned stimulus-response reflexes Operant behavior – Skinner’s term for learned, consequence-shaped behavior

27. 8-27 Thorndike’s Law of Effect Behavior with favorable consequences is repeated; behavior with unfavorable consequences disappears Read an article on the “Law of Effect”

28. 8-28 Contingent Consequences in Operant Conditioning Figure 8-3

29. 8-29 Question? What does one use to make behavior occur less often by ignoring it? A.Positive reinforcement B.Punishment C.Negative reinforcement D.Extinction

30. 8-30 Contingent Consequences Positive reinforcement – making behavior occur more often by contingently presenting something positive Negative reinforcement – making behavior occur more often by contingently withdrawing something negative

31. 8-31 Contingent Consequences Punishment – making behavior occur less often by contingently presenting something negative or withdrawing something positive Extinction – making behavior occur less often by ignoring or not reinforcing it

32. 8-32 Schedules of Reinforcement 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

33. 8-33 How to Effectively Shape Job Behavior 1.Accommodate the process of behavioral change. 2.Define new behavior patterns specifically. 3.Give individuals feedback on their performance. 4.Reinforce behavior as quickly as possible. 5.Use powerful reinforcement.

34. 8-34 How to Effectively Shape Job Behavior 6.Use a continuous reinforcement schedule. 7.Use a variable reinforcement schedule for maintenance. 8.Reward teamwork—not competition. 9.Make all rewards contingent on performance. 10.Never take good performance for granted.

35. 8-35 Shaping Behavior Shaping – reinforcing closer and closer approximations to a target behavior

36. 8-36 Video: Childcare Help See BWTV discuss how IBM has helped employees with onsite child care. (3:13)