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40 Cards in this Set
- Front
- Back
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Performance Management
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is an organization wide system whereby managers integrate the activities of goal setting, monitoring and evaluating, providing feedback and coaching and rewarding employees on a continuous basis.
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Line of sight
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employees know the organization’s strategic goals and how they need to contribute.
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Performance outcome goal
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targets a specific end result (getting a score of 95)
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Learning goal
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strives to improve creativity and develop skills. (how to play golf right)
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Management by objectives
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is a management system that incorporates participation in decision making, goal setting, and objective feedback.
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Managing the goal-setting process
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: Step one: Set goals: SMART GOALS: Specific, measurable, attainable, result orientated, and time bound. Differences and implications for goal setting: high learning goal orientation (view skills as malleable, they make efforts not only to achieve current task but also to develop the ability to accomplice future task), high performance-prove goal orientation (try to demonstrate their ability by looking better than others), High performance-avoid goal orientation (also focus on performance, but this focus is grounded in trying to avoid negative outcomes).
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Step 2:
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: promote goal commitment: increase goal commitment by: providing an explanation for why the organization is implementing a goal-setting program, presenting the corporate goals, and explain how and why an individual’s personal goals support them, have employees establish their own goals and action plans, encourage them to challenge, and stretch goals, goals should be difficult, not impossible. Train managers in how to conduct participative goal-setting sessions, and train employees in how to develop effective action plans. Be supportive and do not use goals to threaten employees. Set goals that are under the employees control, and provide them with the necessary resources, and provide monetary incentives or other rewards for accomplishing goals.
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Step 3
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Provide support and feedback: motivation without knowledge is useless. Training is often required, managers should pay attention to employees’ s perceptions of effort→performance expectancies, self-efficacy, and valence of rewards. Employees should also be provided with timely, specific feedback on how they are doing.
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Feedback:
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: is objective information about individual or collective performance, hard data such as units sold, days absent, dollars saved, projects completed, customer satisfied, and quality rejects are all objective feedback. It is the exchange of info about the status and quality of work product; it provides a road map to success. It is used to motivate, support, direct, correct and regulate work efforts and outcomes. It ensures that the manager and employees are in sync and agree on the standards and expectations of the work to be performed.
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Two functions of feedback
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Instructional and motivational.
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Feedback varies
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by the characteristics of the recipient (respond better if there is a need for high achievement), Perception of feedback ( people tend to perceive and recall positive feedback more accurately than they do negative feedback), By the person giving the feedback (if they are credible, accurate, and fair).
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360-degree feedback
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: involves letting individuals compare their own perceived performance and behaviorally specific (and usually anonymous) performance information from their manager, subordinates, and peers.
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How to give feedback for coaching purposes and organizational effectiveness
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focus on performance, not personalities, give specific feedback linked to learning goals, and performance outcome goals, channel feedback toward key result areas for the organization, give feedback as soon as possible, give feedback to coach improvement, not just for final results, base feedback on accurate and credible information, pair feedback with clear expectations for improvement.
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A general model of organizational reward systems:
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Types of Rewards (financial/material (extrinsic), Social (extrinsic), and Psychic (Intrinsic). ), Desired Outcomes( attract, motivate, develop, satisfy, retain), Distribution Criteria( results, behavior, other factors).
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Extrinsic rewards
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financial, material, or social rewards from the environment.
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Intrinsic rewards
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self-granted, psychic rewards
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Reward Distribution Criteria
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Performance: results (Tangible outcomes such as individual, group, or organization performance; quantity and quality of performance. ) Performance: actions and behaviors ( such as teamwork, cooperation, risk taking, and creativity.) Nonperformance considerations (customary or contractual, where the type of job nature of the work, equity, tenure, level of hierarchy, and so forth are rewarded.)
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Thomas’s Building Blocks for intrinsic rewards and motivation
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Choice (delegated authority, trust in workers, Security (no punishment) for honest mistakes, a clear purpose, information), Competence (knowledge, positive feedback, skill recognition, challenge, high, non-comparative standards), Meaningfulness (a non-cynical climate, clearly identified passions, an exciting vision, relevant task purposes, whole tasks), Progress (a collaborative climate, milestones, celebrations, access to customers, measurement of improvement).
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Leading for Meaningfulness
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inspiring your employees and modeling desired behavior, can do this by helping employees to identify their passions at work and creating an exciting organizational vision employees feel connected to.
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Leading for Choice
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by empowering employees and delegating meaningful assignments and tasks
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Leading for Competence
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managers lead for competence by supporting and coaching their employees. Managers need to make sure employees have the knowledge needed to successfully perform their jobs (training and mentoring helps).
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Leading for Progress
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by monitoring and rewarding others
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Why extrinsic rewards too often fail to motivate
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too much emphasis on monetary rewards, rewards lack an “appreciation effect”, extensive benefits become entitlements, counterproductive behavior is rewarded, too many one-size fits-all rewards, use of one-shot rewards with a short-lived motivational impact, continued use of de-motivating practices such as layoffs, across-the-board raises and cuts, and excessive execution compensation.
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Pay for performance
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is the popular term for monetary incentives linking at lease some portion of the paycheck directly to results or accomplishments.
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Getting the most out of Extrinsic rewards and Pay for Performance
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tie praise, recognition, and noncash awards to specific results, 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 incentive plan will be detected early, reward teamwork and cooperation whenever possible, selectively use creative noncash rewards to create buzz and excitement.
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Thorndike’s Law of effect:
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behavior with favorable consequences tends to be repeated, while behavior with unfavorable consequences tends to disappear.
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Respondent behavior
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skinner’s term for unlearned stimulus-response reflexes (include shedding tears while peeling onions, and reflexively withdrawing ones hand from a hot stove).
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Operant behavior:
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skinner’s term for learned, consequences-shaped behavior (response-stimuli model), vast majority of organizational behavior falls into this category.
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Positive reinforcement
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is the process of strengthening a behavior by contingently presenting something pleasing. (Strengthened when it increases in frequency and weakened when it decreases in frequency). Contingent presentation, target behavior occurs more often.
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Negative reinforcement
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is the process of strengthening a behavior by contingently withdrawing something displeasing. (strengthens a behavior because it provides relief from an unpleasant situation. Contingent withdrawal, target behavior occurs more often
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Punishment:
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is the process of weakening behavior through either the contingent presentation of something displeasing or the contingent withdrawal of something positive. Contingent presentation, target behavior occurs less often
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Response cost punishment:
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docking a tardy’s employee’s pay. Contingent withdrawel, target behavior occurs less often
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Extinction
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: is the weakening of a behavior by ignoring it or making sure it is not reinforced. No contingent consequence, target behavior occurs less often.
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Continuous reinforcement
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reinforces every instance of a behavior
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Intermittent Reinforcement
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reinforcing some but not all instances of behavior. (ratio schedules: is contingent on the number of responses observed (most effective), Interval reinforcement: is tied to the passage of time).
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Fixed ratio
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piece-rate pay; bonuses tied to the sale of a fixed number of units.
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Variable ratio:
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machines that pay off after a variable number of lever pulls, lotteries that pay off after the purchases of a variable number of tickets.
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Fixed interval
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hourly pay, annual salary paid on a regular basis
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Variable interval
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: random supervisory praise and pats on the back for employees who have been doing a good job.
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Shaping
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is defined as the process of reinforcing closer and closer approximations to a target behavior. Airlines #65 dollar bonus for top 5 now $65 and $100 if number one each month.
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