© 2008The McGraw-Hill Companies, Inc. All rights reserved. Improving Job Performance with Goals, Feedback, Rewards, and Positive Reinforcement Copyright

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2008The McGraw-Hill Companies, Inc. All rights reserved. Improving Job Performance with Goals, Feedback, Rewards, and Positive Reinforcement Copyright 2010 by the McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin Slide 2 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 9-2 Slide 3 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 Thorndikes law of effect, and explain Skinners 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. 9-3 Slide 4 Your Experience A=Yes, B=No, C= NA 1.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? 9-4 Slide 5 Improving Performance Performance management Continuous cycle of improving job performance with goal setting, feedback and coaching, and rewards and positive reinforcement. 9-5 Slide 6 Improving Individual Performance 9-6 Slide 7 Goal Setting Performance outcome goal: targets a specific end result Learning goal: Encourages learning, creativity, and skill development 9-7 Slide 8 Line of Sight 56% of workers in US dont clearly understand their organization's most important goals 81% dont have clearly defined goals Line of Sight: Knowledge of the organizations strategic goals and how they need to contribute 9-8 Slide 9 Guidelines for SMART Goals 9-9 Slide 10 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? 9-10 Slide 11 Feedback Feedback objective information about performance Functions of Feedback Instructional Motivational 9-11 Slide 12 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. 9-12 Slide 13 Nontraditional Feedback 360-Degree Feedback comparison of anonymous feedback from ones superior, subordinates, and peers with self-perceptions 9-13 Slide 14 Tips for Giving Good Feedback Focus feedback on performance, not personalities Give specific feedback tied to observable behavior or measurable results Channel feedback toward key result areas Give feedback as soon as possible Give positive feedback for improvement, not just final results Base feedback on accurate and credible information Pair feedback with clear expectations for improvement. 9-14 Slide 15 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 9-15 Slide 16 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 environment What are examples of extrinsic rewards? 9-16 Slide 17 A Model of Intrinsic Motivation Sense of Progress Sense of Meaningfulness Sense of Competence Sense of Choice Opportunity Rewards Accomplishment Rewards From Task Activities From Task Purpose 9-17 Slide 18 Why Do Extrinsic Rewards 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 Use of one-shot rewards with a short-lived motivational impact Continued use of demotivating practices such as layoffs, across-the-board raises and cuts, and excessive executive compensation 9-18 Slide 19 Use and Effectiveness of Incentive Pay Plans 9-19 Slide 20 Maximizing Motivational Impact of Extrinsic Rewards Make pay for performance an integral part of the organizations 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. 9-20 Slide 21 Maximizing Motivational Impact of Extrinsic Rewards Cont. Build the pay-for-performance plan around participative structures such as suggestion systems or problem-solving teams Reward teamwork and cooperation whenever possible Actively sell the plan to supervisors and middle managers who may view employee participation as a threat to their traditional notion of authority If annual cash bonuses are granted, pay them in a lump sum to maximize their motivational impact Selectively use creative noncash rewards to create buzz and excitement 9-21 Slide 22 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.Quit b.Keep trying to impress the right people 9-22 Slide 23 Contingent Consequences in Operant Conditioning Punishment Negative Reinforcement Punishment (Response Cost) Positive Reinforcement (no contingent consequence) Extinction Contingent Withdrawal Contingent Presentation Positive or PleasingNegative or Displeasing Nature of Consequences Behavior-Consequence Relationship 9-23 Slide 24 Test Your Knowledge Martins boss tells him the next time you come to work late, Im going to dock your pay. This best represents: a.Positive reinforcement b.Negative reinforcement c.Punishment d.Response Cost Punishment 9-24 Slide 25 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 maintenance 8)Reward teamwork -- not competition. 9)Make all rewards contingent on performance. 10)Never take good performance for granted. 9-25