Week 6 ch 7


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Week 6 ch 7

  1. 1. BUSN 221 Chapter 7<br />Jeff Parsons<br />Evaluation, Feedback and Rewards<br />
  2. 2. Learning Objectives<br />Identify the major purposes of performance evaluation and specify the process through which such evaluation should be undertaken so as to contribute toward high levels of employee commitment and motivation<br />Describe the cognitive model of feedback and explain its usefulness to managers in today’s workplace<br />Identify the key insights to be derived from reinforcement theory and demonstrate how these insights could be meaningfully utilized in contemporary organizations<br />Evaluate the impact of the various elements of the reward system with respect to the objective of enhancing employee commitment and motivation.<br />
  3. 3. Performance Evaluation<br />Considered essential to the employee’s ability to perform duties effectively<br />Judgmental purposes<br />Developmental purposes<br />
  4. 4. Performance Evaluation – Judgmental Purpose<br />Basis for reward allocation<br />Identify high-potential employees<br />Evaluation of employee selection procedures<br />Evaluation of previous employee training programs<br />
  5. 5. Performance Evaluation – Developmental Purpose<br />Stimulate improved future performance <br />Develop ways of overcoming obstacles and performance barriers<br />Identify training and development opportunities<br />Establish supervisor-employee agreement on performance expectations<br />
  6. 6. Focus of Evaluation<br />Performance evaluation should be a continuous, ongoing process that focuses on the job performance, not the individual<br />Translate responsibilities into daily activities<br />Goals associated with responsibilities<br />Degree to which goals have been achieved<br />
  7. 7. Focus of Evaluation<br />Weighting of relevant behaviours<br />Deficiency – evaluation does not cover all aspects of the job<br />Contamination – activities that are not part of the job are included in the evaluation<br />Distortion – improper emphasis given to various job elements<br />
  8. 8. Improving Evaluations<br />Maximize use and acceptance of evaluations while minimizing dissatisfaction<br /> level of employee participation in evaluation process<br />Set SMART (Specific, Measurable, Agreed upon, Realistic, Time constrained) performance goals<br />Provide training during the process<br />
  9. 9. Improving Evaluations cont’d<br />Evaluate how effectively duties were performed<br />Communicate results to employee<br />Actively recognize and reinforce good performance<br />Evaluate performance on a continuous, ongoing basis<br />
  10. 10. Performance Evaluation Feedback<br />Explain what went into the evaluation<br />Explain how to improve or sustain performance<br />Be specific, not generic<br />Most managers dread this<br />
  11. 11. Purpose of Evaluation Feedback<br />Instructional<br />Motivational<br />
  12. 12. Cognitive Model of Feedback<br />Evaluated Person<br />Individual Characteristics<br /><ul><li> Perceptual Process
  13. 13. Values
  14. 14. Needs
  15. 15. Goals
  16. 16. Self-Concept
  17. 17. Self-Efficacy</li></ul>Behavioral Results<br /><ul><li> Effort
  18. 18. Self-motivation to Adjust
  19. 19. Persistence
  20. 20. Disregard or Non-acceptance
  21. 21. Person
  22. 22. Others
  23. 23. Job</li></ul>Cognitive Evaluation<br /><ul><li> Creditive of Feedback Source
  24. 24. Expectancies
  25. 25. Personal Standards
  26. 26. Form of Feedback</li></ul> (Objective or Subjective)<br />
  27. 27. Multisource Feedback (360°)<br />90% of Fortune 1000 companies use some form of it<br />Feedback from creditors, supervisors, peers, subordinates, <br />Result of requests for fairness, clarity, and credibility in performance improvement programs<br />
  28. 28. Multisource Feedback Best Practices<br />Individual development only<br />Link feedback to overall strategy/direction of company<br />Administration must control the process<br />Senior management as role models<br />Use trained internal coaches<br />Evaluate effectiveness of the process<br />
  29. 29. Multisource (360°) Feedback<br />FOR<br />Concern for fairness and credibility<br />AGAINST<br />Feedback sources may be concerned about use of rating and thus may artificially inflate it<br />Observation frequency and/or knowledge of person being evaluated<br />
  30. 30. Reinforcement Theory<br />Some believe reinforcement is the most important principle of learning<br />Positive Consequences<br /> strength of behaviour<br /> probability of repetition<br />Negative Consequences<br /> strength of behaviour<br /> probability of repetition<br />Operants<br />Behaviours controlled by altering consequences that follow<br />
  31. 31. Videos<br />http://www.youtube.com/watch?v=LSv992Ts6as<br />http://www.youtube.com/watch?v=I_ctJqjlrHA<br />
  32. 32. Reinforcement Theory<br />Reinforcement different than Reward<br />Reward is desirable, provided after performance<br />Not all rewards are reinforcers<br />Reinforcers increase rate of behaviour<br />Positive Reinforcement<br />Behaviour  as positive stimulus applied<br />Negative Reinforcement<br />Behaviour  as negative stimulus removed<br />
  33. 33. Reinforcement Theory<br />Punishment<br />Uncomfortable or unwanted consequences for a behaviour response<br />Can suppress behaviour when used effectively<br />Use after careful, objective evaluation of situation<br />
  34. 34. Reinforcement Theory<br />Extinction<br />Reducing unwanted behaviour<br />Positive reinforcement for a learned response withheld, behaviour continues for some period of time<br />Behaviour will decrease in frequency until it disappears if positive reinforcement continues to be withheld<br />
  35. 35. Reinforcement Schedules<br />
  36. 36. Reward Program Objectives<br />Attract qualified people to join the organization<br />Keep employees coming to work<br />Motivate employees to high performance levels<br />
  37. 37. Reward Programs<br />Integrate the following:<br />Satisfaction<br />Motivation<br />Performance<br />Rewards<br />Ability, skill and experience are required with motivation to produce high performance<br />
  38. 38. Reward Process<br />Ability and skill<br />Intrinsic rewards<br />Performance results: Individual<br />Motivation to exert effort<br />Performance evaluation<br />Satisfaction<br />Extrinsic rewards<br />Experience<br />Feedback<br />
  39. 39. Satisfaction and RewardsLawler’s Conclusions<br />Satisfaction with a reward depends on:<br />How much is received<br />How much individual feels they should receive<br />One’s own satisfaction is influenced by what happens to others<br />Different people desire different rewards and differ in how important the rewards are to them<br />
  40. 40. Satisfaction and RewardsLawler’s Conclusions<br />Satisfaction is influenced by how satisfied people are with intrinsic and extrinsic rewards<br />Some extrinsic rewards are satisfying because they lead to other rewards<br />
  41. 41. Intrinsic and Extrinsic Rewards<br />Intrinsic<br />Completion<br />Achievement<br />Autonomy<br />Personal growth<br />Extrinsic<br />Salary/wages<br />Employee Benefits<br />Interpersonal rewards<br />Promotions<br />
  42. 42. Rewards and Organizational Issues<br />Rewards affect employee<br />Perceptions<br />Attitudes<br />Behaviour<br />Organizational concerns affected<br />Turnover and absenteeism<br />Performance<br />Organizational commitment<br />
  43. 43. Innovative Reward Systems<br />Skill-based pay<br />Broadbanding<br />Concierge Services<br />Team-based rewards<br />Part-time benefits<br />Gain-sharing<br />Employee Stock ownership plans<br />
  44. 44. “Line of Sight” – Key Issue<br />Employee perception that their performance is directly linked to rewards received<br />Easy to say, difficult to do<br />Should be considered in job design<br />