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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