© 2008The McGraw-Hill Companies, Inc. All rights reserved.

ChapterChapter 9 9

Improving Job Performance with Goals, Feedback,

Rewards, and Positive

Reinforcement

Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

Ch. 9 Learning Objectives

1. Define the term performance management, distinguish between learning goals and performance outcome goals, and explain the three-step goal setting process.

2. Identify the two basic functions of feedback, and specify at least three practical lessons from feedback research.

3. Define 360-degree feedback, and summarize how to give good feedback in a performance management program.

4. Distinguish between extrinsic and intrinsic rewards, and explain the four building blocks of intrinsic rewards and motivation

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Ch. 9 Learning Objectives

5. Summarize the reasons why extrinsic rewards often fail to motivate employees.

6. Discuss how managers can generally improve extrinsic reward and pay for performance plans.

7. State Thorndike’s “law of effect,” and explain Skinner’s distinction between respondent and operant behavior.

8. Define positive reinforcement, negative reinforcement, punishment, and extinction, and distinguish between continuous and intermittent schedules of reinforcement.

9. Demonstrate your knowledge of behavior shaping.

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Your Experience

A=Yes, B=No, C= NA1. Have you had a performance management

discussion with your manager?2. Have you ever conducted a performance

management discussion with an employee?

3. Do you look forward to performance evaluation meetings with your boss?What would your ideal performance management session be like?

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Improving Performance

Performance management•Continuous cycle

of improving job performance with goal setting, feedback and coaching, and rewards and positive reinforcement.

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Improving Individual Performance

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Goal Setting

Performance outcome goal: targets a specific end resultLearning goal: Encourages learning, creativity, and skill development 9-7

Line of Sight56% of workers in US don’t “clearly understand their organization's most important goals”81% don’t have clearly defined goals

Line of Sight: Knowledge of the organization’s strategic goals and how they need to contribute

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Guidelines for SMART Goals

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Steps for Effective Goal Setting Programs

1. Set Goals• What do you base the goals on? How do you

know what is appropriate?

2. Promote Goal Commitment• Under what conditions will an employee be

motivated to pursue a goal?

3. Provide Support and Feedback• How will the employee reach the goal? What

resources will be necessary?

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Feedback

Feedback objective information about performanceFunctions of Feedback• Instructional•Motivational

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Six Trouble Signs For Organizational Feedback Systems

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.

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.

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Nontraditional Feedback360-Degree Feedback comparison of anonymous feedback from one’s superior, subordinates, and peers with self-perceptions

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Tips for Giving Good Feedback

Focus feedback on performance, not personalitiesGive specific feedback tied to observable behavior or measurable resultsChannel feedback toward key result areasGive feedback as soon as possibleGive positive feedback for improvement, not just final results Base feedback on accurate and credible informationPair feedback with clear expectations for improvement.

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General Model of Organizational Reward Systems

• Results• Behavior• Other factors

• Financial/material(extrinsic)

• Social (extrinsic)• Psychic (intrinsic)

• Attract• Motivate• Develop• Satisfy• Retain

Types of Rewards Desired Outcomes

Distribution Criteria

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Intrinsic vs. Extrinsic Rewards

Intrinsic Rewards Self-granted, psychic rewards

What are examples of intrinsic rewards?

Extrinsic Rewards Financial, material, or social rewards from the environmentWhat are examples of extrinsic rewards?

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A Model of Intrinsic Motivation

Sense ofProgress

Sense ofMeaningfulness

Sense ofCompetence

Sense ofChoice

Opportunity Rewards

Accomplishment Rewards

FromTask

Activities

FromTask

Purpose

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Why Do Extrinsic Rewards Fail to Motivate?

Too much emphasis on monetary rewardsRewards lack an “appreciation effect”Extensive benefits become entitlementsCounterproductive behavior is rewardedToo long a delay between performance and rewardsToo many one-size-fits-all rewardsUse of one-shot rewards with a short-lived motivational impactContinued use of demotivating practices such as layoffs, across-the-board raises and cuts, and excessive executive compensation

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Use and Effectiveness of Incentive Pay Plans

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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.

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Maximizing Motivational Impact of Extrinsic Rewards Cont.

Build the pay-for-performance plan around participative structures such as suggestion systems or problem-solving teamsReward teamwork and cooperation whenever possibleActively sell the plan to supervisors and middle managers who may view employee participation as a threat to their traditional notion of authorityIf annual cash bonuses are granted, pay them in a lump sum to maximize their motivational impactSelectively use creative noncash rewards to create buzz and excitement 9-21

Positive Reinforcement

Law of effect• Behavior with favorable consequences is

repeated, behavior with unfavorable consequences disappears.

I work really hard and am not rewarded. The law of effect would suggest that I will

a. Quitb. Keep trying to impress the right people

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Contingent Consequences in Operant Conditioning

Punishment

Negative ReinforcementPunishment

(Response Cost)

Positive Reinforcement

(no contingent consequence)Extinction

ContingentWithdrawal

ContingentPresentation

Positive or Pleasing Negative or Displeasing

Nature of Consequences

Beh

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Test Your Knowledge

Martin’s boss tells him “the next time you come to work late, I’m going to dock your pay”. This best represents:a. Positive reinforcementb. Negative reinforcementc. Punishmentd. Response Cost Punishment

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Ten Practical Tips 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.6) Use a continuous reinforcement schedule (for new

behaviors)7) Use a variable reinforcement schedule for

maintenance8) Reward teamwork -- not competition.9) Make all rewards contingent on

performance.10) Never take good performance for granted. 9-25