Chapter

10 Improving Job Performance with

Feedback, Extrinsic Rewards, & Positive

Reinforcement

Improving Job Performance with

Feedback, Extrinsic Rewards, & Positive

Reinforcement Understanding the Understanding the

Feedback ProcessFeedback Process Nontraditional Nontraditional Feedback:Feedback:

Upward and 360-Upward and 360-DegreeDegree Positive Positive ReinforcementReinforcement

Feedback

Feedback Feedback objective information about performance

Functions of FeedbackFunctions of Feedback Instructional – clarifies

roles, teaches behavior Motivational – serves as

reward To be used effectively To be used effectively

managers must managers must understand interaction understand interaction between how feedback between how feedback is given and how is given and how feedback is perceivedfeedback is perceived

10-3

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Characteristics Self-esteem Self-efficacy Needs and goals Desire for performance feedback

Perception

Sign and content of feedback message

Cognitive Evaluations Feedback accuracy Source credibility System fairness Expectancies Behavioral Standards

Cognitive Processing Model of Feedback

Sources Others Task Self

Behavioral Outcomes

Direction Effort Persistence Resistance

Recipient

10-4Figure 10-2

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Practical Lessons from Feedback Research

Feedback acceptance should not be treated as a give; often misperceived or rejected

Managers can enhance credibility as sources of feedback by developing their expertise and creating a climate of trust

Negative feedback is typically misperceived or rejected

Feedback is too infrequent in organizations Feedback needs to be tailored to the recipient

10-5

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Practical Lessons from Feedback Research Cont.

High performers respond to feedback that enhances their feelings of competence and self-control

Computer-based feedback leads to greater performance when received directly from computer

Recipients perceive feedback as more accurate when they actively participate in the feedback session

Destructive criticism tends to cause conflict and reduce motivation

Higher one rises in an organization the less likely they are to receive quality feedback

10-6

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Nontraditional Feedback

Upward Feedback subordinates evaluate their boss

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

10-8

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Sources and Types of Feedback in the 360-Degree Approach

Direct supervisor

Peers/teammembers

Directsubordinates

Relevant others such as customers and suppliers

Manager/Focal PersonSelf-evaluation of a

variety of skills

10-9Figure 10-3

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Tips for Giving Good Feedback

Relate feedback to existing performance goals and expectations

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 Focus feedback on performance, not

personalities Base feedback on accurate and

credible information

10-10

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General Model of Organizational Reward Systems

• Profit maximization• Equity

• Equality• Need

• Results• Behavior

• Other factors

• Financial/material(extrinsic)

• Social (extrinsic)• Psychic (intrinsic)

• Attract• Motivate• Develop• Satisfy• Retain

10-11Figure 10-4

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Types of Rewards Desired Outcomes

Organizational Reward Norms

Distribution Criteria

Reward norms

Profit maximization – maximizing one’s own gain

Equity – rewards should be consistent with contributions

Equality – rewards should be the same for everyone

Need – rewards should not be distributed according to contribution

Reward Distribution Criteria

Performance/results – rewards are given for tangible outcomes

Performance/actions and behaviors – rewards are distributed for things worker does

Nonperformance criteria – rewards are given for things other than performance

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

10-12

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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.

10-14

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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 quality circles.

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

Remember that money motivates when it comes in significant amounts, not occasional nickels and dimes

10-15

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Reinforcement

Law of effect – behavior with a favorable consequence tends to be repeated and behavior with a negative consequence tends to disappear

Operant behavior – action that is learned when one operates on the environment to produce desired consequences

Positive reinforcement – strengthening behavior by presenting something pleasing

Negative reinforcement – strengthening behavior by taking away something displeasing

Punishment – weakening behavior by presenting something displeasing or withdrawing something pleasing

Extinction – weakening behavior by ignoring it or making sure it’s not reinforced

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

avio

r-C

on

seq

uen

ce R

ela

tion

sh

ip

10-16Figure 10-5

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Schedules of Reinforcement

Schedule 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 responses

must 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.

10-17Table 10-3

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Learning Module B

Performance Appraisal

Performance Appraisal

Performance Appraisal Performance Appraisal judgmental evaluation of one’s traits, behavior, or accomplishments as basis for personnel decisions and developmental plans

B-1

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Components of the Performance Appraisal Process

Appraiser

Appraisee

Appraisal Method Outcomes

B-3Figure B-1

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Basic Approaches to Appraising Job Performance

How decisive is the individual?

Very DecisiveIndecisive

Moderately Decisive

The Trait Approach

1 2 3 4 5

B-6Figure B-2

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Basic Approaches to Appraising Job Performance

Teamwork (check the box

that best describes this individual’s behavior)

The Behavioral Approach

Works alone on all projects

Teams up with others on most major projects

Works alone on most projects

Teams up with others on all major projects

Works alone about half the time

B-7Figure B-2 cont.

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Basic Approaches to Appraising Job Performance

The Results Approach

Key result area: Unit Sales

12-month goal: 12,000 units

Actual results: 10,500 units

Comments________________________________________________________________________________________________________________________________________________________

B-8Figure B-2 cont.

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Criteria of Legally Defensible Performance Appraisal Systems

Based on an analysis of 51 employment discrimination cases, a performance appraisal system has a better change of standing up in court if it satisfies these criteria:

A job analysis used to develop the appraisal system

Definite standards of performance are developed, written, and provided to all raters regardless of they type of rating methods used

Raters are trained to properly use the rating instrument

B-9Figure B-3

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Criteria of Legally Defensible Performance Appraisal Systems

Based on an analysis of 51 employment discrimination cases, a performance appraisal system has a better change of standing up in court if it satisfies these criteria:

Formal appeal mechanisms are developed and performance ratings are reviewed by upper-level managementPerformance ratings are supported with documented examples of behavior

Employees are given a chance to improve their performance by provision of performance counseling or corrective guidance

B-10Figure B-3 cont.

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A Contingency Approach to Performance Appraisals

Identifies deficient results, but does not tell why

Results

Pinpoints specific performance improvement needs

Behavioral

Tends to cause defensiveness among low self-esteem employees

TraitDevelopment Decisions

Same as aboveResults

Appropriate when competing appraisees have similar jobs

Behavioral

Appropriate when competing appraisees have dissimilar jobs

TraitPromotion Decisions

CommentsAppraisal Method

Function of Appraisal

B-11Table B-2

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A Contingency Approach to Performance Appraisals

Same as aboveResults

Weighted combination of behaviors, results, and seniority is recommended

Behavioral

Inappropriate, potentially discriminatory

TraitLayoff Decisions

Same as aboveResults

Enhances performance-reward linkage

Behavioral

Weak performance-reward linkage

TraitPay Decisions

CommentsAppraisal Method

Function of Appraisal

B-12Table B-2 cont.

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