© 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

9-2

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

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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.

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 people9-22

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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seq

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ip

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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

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

ChapterChapter 9 9

Improving Job Performance with Goals, Feedback,

Rewards, and Positive

Reinforcement

Supplemental Slides

Employee Engagement

Source: Cormier, R. Disarming the Dangerous, Training, March/April 2009. 9-27

Steps to Improve Employee Engagement

Source: Cormier, R. Disarming the Dangerous, Training, March/April 2009.9-28

Steps to Improve Employee Engagement

Source: Cormier, R. Disarming the Dangerous, Training, March/April 2009.9-29

Avoiding Negotiation

Source: Spolsky, J., Why I Never Let Employees Negotiate Pay Raises, Inc., Vol. 29, April 2009 9-30

Avoiding Negotiation

Source: Spolsky, J., Why I Never Let Employees Negotiate Pay Raises, Inc., Vol. 29, April 2009 9-31

Avoiding Negotiation

Source: Spolsky, J., Why I Never Let Employees Negotiate Pay Raises, Inc., Vol. 29, April 2009 9-32

Job Characteristic Mismatches

Source: Kalleberg, A. L. (2008). The Mismatched Worker: When People Don’t Fit Their Jobs. Academy of Management Perspectives, Vol. 22, pg. 24-40. 9-33

Mismatches and Motivation

Source: Kalleberg, A. L. (2008). The Mismatched Worker: When People Don’t Fit Their Jobs. Academy of Management Perspectives, Vol. 22, pg. 24-40. 9-34

Video Cases

Slacking OffCorporate Health

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Getting Rewards Right:The Snowfly Slots

Companies are using games to motivate employee’s behaviorFor taking actions that are aligned with the organization’s objectives employees receive tokensTokens are used on an on-line slot machine called “Snowfly”Employees can win between 2 cents and $50 per gameThis strategy has boosted productivity in a variety of organizations including banks and beverage distributors

Source: New Incentives for Workers Combine Cash, Fun, J. Badal, Wall Street Journal, 6/19/06 9-36

Set specific goals and reward achievement quickly; don’t wait until the end of the year.Give employees reward choices, to reflect different tastesRemind employees about goals and possible rewardsKeep the program fresh; update prices to generate enthusiasmEnsure that front-line managers are committed to the program

Source: New Incentives for Workers Combine Cash, Fun, J. Badal, Wall Street Journal, 6/19/06

Getting Rewards Right:The Snowfly Slots

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Yearly Reviews

Why don’t managers and employees like performance reviews?Where you work or have worked, how often did you receive feedback?

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Yearly Reviews

Jack and Suzy Welch’s advice:•Sit down with each direct report and provide a single page that says, here’s what you do well, and here’s what you can do better

•This should happen three or four times a year, particularly with every raise, bonus, or promotion

What are the pros and cons of this approach?Source: Ideas The Welch Way, BusinessWeek, February 26, 2007 9-39

Fear of Feedback

Maladaptive Behaviors•Procrastination•Brooding•Denial•Jealousy•Self-sabotage

Source: Fear of Feedback, Jackman, J.M., Strober, M.H. (2005) Harvard Business Review 9-40

Fear of Feedback

Adaptive Behaviors•Recognize emotions and maladaptive responses

•Get support•Reframe the feedback•Break it into parts

Source: Fear of Feedback, Jackman, J.M., Strober, M.H. (2005) Harvard Business Review 9-41

Fear of Feedback: Reframe Your Thinking

Source: Fear of Feedback, Jackman, J.M., Strober, M.H. (2005) Harvard Business Review

Possible Negative Emotion

Maladaptive Response

Reframing Statement

Anger Acting out It’s up to me to get the feedback I need.

AnxietyBroodingAvoiding

Finding out can open up new opportunities for me

Fear of confrontation

Denial, procrastination, self-sabotage

Taking the initiative puts me in charge and gives me some power

HurtIrritability,

jealousy of others

I can still pay attention to what he said even though I feel hurt.

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Fear of Feedback: Reframe Your Thinking

Source: Fear of Feedback, Jackman, J.M., Strober, M.H. (2005) Harvard Business Review

Possible Negative Emotion

Maladaptive Response

Reframing Statement

DefensivenessActing out by not

supporting the boss

Being defensive keeps me from hearing what she has to say

SadnessBrooding,

Withdrawal

How I’m doing in my job isn’t about whether I’m liked

Fear of Change Denial

I must change to keep my job. I’ll focus on one or two key areas.

AmbivalenceProcrastination,

Passivity

What really serves my interests best? I need to take some action now.

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Fear of Feedback

What if the feedback doesn’t improve despite your attempts to change?

Source: Fear of Feedback, Jackman, J.M., Strober, M.H. (2005) Harvard Business Review 9-44

Marcus Buckingham, renowned business consultant & author argues:•People should focus much more on their true strengths than focusing on the activities they aren’t good at or drain them

This provides a win/win for employees and organizations“Strengths” are not only what you’re good at

Play to Your Strengths

Source: Engaging Generation Y, Training and Development, Aug 2006, 26-30 9-45

Acronym: SIGNS.Success – what did you do last week that you

were good at?

T. Instincts – what you can’t pass up, activities you looked forward to or volunteered for

U.Growth – you grow most in your strengths, you focus, are naturally inquisitive about, and practice these areas

N.Needs – practicing a strength fulfills a need, you feel in control, authentic

Play to Your Strengths

Source: Engaging Generation Y, Training and Development, Aug 2006, 26-30 9-46

Receiving Feedback

To help clarify feedback, receivers can ask:Could you give me an example of the behavior that concerns you?Can you help me understand how you came to that conclusion?Can you help me understand the situations in which you have seen the behavior and what you see as the impact?Can you clarify what you would like to see me do differently? 9-47

Schedules of ReinforcementSchedule DescriptionContinuous Reinforcer follows every response

(CRF)

Intermittent Reinforcer does not follow every responseFixed ratio (FR) A fixed number of responses must be

emitted before reinforcement occurs.

Variable ratio (VR) A varying or random number of responsesmust be emitted before reinforcement occurs.

Fixed interval (FI) The first response after a specific period oftime has elapsed is reinforced

Variable interval (VI) The first response after varying or randomperiods of time have elapsed is reinforced.

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Bad Apples

What percent of U.S. workers feel employees are held accountable for their performance?a. 22%b.44%c. 55%d.77%

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Bad Apples (con’t)

What percent of U.S. workers feel their company helps poorly performing workers improve?a. 20%b.30%c. 50%d.70%

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Bad Apples (con’t)

Three ways NOT to handle poor performers:1. Ignore the problem, reassign the

workload and hope the poor performer will quit or move to another team

2. Talk to the team as a group rather than to the individual – this insults the good performers

3. Take poor performance as a personal insult and confront the employee in a threatening way. 9-51

Bad Apples (con’t)

To manage poor performers companies should establish training for managers• Ongoing practice• Just-in-time training

Training should involve:• Timing of counseling employees• How to find the root cause• How to give constructive criticism

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Pay for Performance

Jamba Juice Co. – specialty health beverage stores uses the following performance rating categories

• Outstanding• Exceeding requirements• Meeting requirements• Falling below requirements

Who should receive a merit increase?What are the legal implications of rewarding poor performers? 9-53

How to Make Sure Performance Feedback Hits the Target

The person offering the feedback is reliable and has good intentions toward themThe feedback development process is fairThe feedback communication process is fair

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What Sort of Carrots Would You Like?

“Incentive programs structured with employee input

work best; however, the

study showed that only 23% of

incentive systems are selected with employee input.”

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Productive Job Behavior Requires Supportive Antecedents and Consequences

The payroll clerk continues to make excuses while missing important deadlines because of the manager’s negative antecedents and sarcastic consequences

Behavior Outcomes

Manager: “I’m sure everyone will enjoy their paychecks late again!”

Consequences

Manager: “I suppose you haven’t finished the payroll report yet.”

Antecedent

Payroll Clerk: “No way! I’m behind schedule because the supervisors didn’t submit their payroll data on time.”

Behavior

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Productive Job Behavior Requires Supportive Antecedents and Consequences

Cont.

The payroll clerk continues to meet important deadlines because of the manager’s non-threatening antecedents and rewarding consequences

Behavior Outcomes

Manager: “I appreciate that extra effort! How would you like to spend tomorrow working on that bonus-pay project you suggested last week?

Consequences

Manager: “How are you coming along on this week’s payroll report?”

Antecedent

Payroll Clerk: “I’m a little behind schedule. But if I work during my lunch hour, I’ll have it done on time.”

Behavior

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Modifying On-the-Job Behavior

Step 1

Identify targetbehavior

Step 2

Perform an A B C

functional analysis

Step 3

Arrange antecedents

Provide supportive andappropriatelyscheduledconsequences

Step 4

Evaluate results

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O.B. Mod Application ModelIdentify

Behaviors for Change

MeasureBaseline frequency of response

AnalyzeFunctional consequences

Intervene

EvaluateFor performance improvement

See Learning Module A (Web)

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A Social Learning Model for Self- Management

Person (Psychological Self)

• Symbolic coding • Rehearsal• Self-talk

Behavior• Behavior changes needed for self- improvement

Situational Cues• Reminders & attention

focusers • Self-observation data• Avoidance of negative cues• Seeking of positive cues• Personal goal-setting• Self contracts

Consequences

• Self-reinforcement/ self-punishment • Building activities into the task that are naturally rewarding

• Reinforcement from relevant others

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How to Make Team-Based Pay Work

1) Prepare employees with interpersonal skills training.

2) Don’t introduce team-pay until teams are running smoothly.

3) Blend individual and team incentives.

4) Start by rewarding teamwork behaviors and then evolve to incentives for team results.

5) Make sure each team member has a clear line of sight to key team results.

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Conclusion

Questions for discussion

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