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HBO Handout Chapter 7 (Evaluation, Feedback, and Rewards)


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BA-MM 201 that's our handout in Human Behavior in Organization subject (from Sir Joey Espiritu). Just download it. thanks!

Published in: Business, Technology
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HBO Handout Chapter 7 (Evaluation, Feedback, and Rewards)

  1. 2. Evaluation, Feedback, and Rewards 7 Chapter
  2. 3. Introduction <ul><li>Organizations use a variety of rewards to attract and retain people and to motivate them to achieve their personal and organizational goals </li></ul><ul><li>The manner and timing of distributing rewards are important issues for managers </li></ul><ul><li>To distribute rewards equitably, it is necessary to evaluate employee performance </li></ul>
  3. 4. Purposes of Evaluation: Judgmental <ul><li>Provide a basis for reward allocation (e.g., raises, promotions, transfers, etc.) </li></ul><ul><li>Identify high-potential employees </li></ul><ul><li>Validate the effectiveness of employee selection procedures </li></ul><ul><li>Evaluate previous training programs </li></ul>
  4. 5. Purposes of Evaluation: Developmental <ul><li>Stimulate performance improvement </li></ul><ul><li>Develop ways of overcoming obstacles and performance barriers </li></ul><ul><li>Identify training and development opportunities </li></ul><ul><li>Establish supervisor-employee agreement on performance expectations </li></ul>
  5. 6. Focus of Evaluation <ul><li>Evaluations should focus on translating the position responsibilities into each employee’s day-to-day activities </li></ul><ul><li>Performance evaluations should focus on job performance, not individuals </li></ul><ul><li>Evaluations should have proper weighting of relevant behaviors </li></ul>
  6. 7. Relevancy of Evaluation <ul><li>Deficiency – occurs when the evaluation does not focus on all aspects of the job </li></ul><ul><li>Contamination – occurs when activities not part of the job are included in the evaluation </li></ul><ul><li>Distortion – occurs in the evaluation process when an improper emphasis is given to various job elements </li></ul>
  7. 8. Improving Evaluations (1 of 3) <ul><li>Higher levels of employee participation in the evaluation process lead to more satisfaction with the system </li></ul><ul><li>Setting specific performance goals to be met results in greater performance improvement than discussions of more general goals </li></ul>
  8. 9. Improving Evaluations (2 of 3) <ul><li>Supervisors should receive training in how to evaluate employee performance </li></ul><ul><ul><li>They should be evaluated on how effectively they do this </li></ul></ul><ul><li>Systematic evaluation of performance does little good if the results are not communicated to employees </li></ul>
  9. 10. Improving Evaluations (3 of 3) <ul><li>Performance evaluation feedback should not focus solely on problem areas </li></ul><ul><ul><li>Good performance should be actively recognized and reinforced </li></ul></ul><ul><li>Effective performance evaluation is a continuous, ongoing process </li></ul>
  10. 11. Performance Evaluation Feedback <ul><li>The need for feedback among people on and off the job is significant </li></ul><ul><li>People want to know: </li></ul><ul><ul><li>how they are doing </li></ul></ul><ul><ul><li>how they are being perceived by others </li></ul></ul><ul><ul><li>how they can make adjustments to perform better </li></ul></ul><ul><li>Delivering feedback to a poor performing employee is a difficult experience for a manager </li></ul>
  11. 12. Purpose of Evaluation Feedback Instructional Motivational
  12. 13. A Feedback Model <ul><li>Person </li></ul><ul><li>Others </li></ul><ul><li>Job </li></ul>Behavioral Results <ul><li>Effort </li></ul><ul><li>Self-motivation to Adjust </li></ul><ul><li>Persistence </li></ul><ul><li>Disregard or Non-acceptance </li></ul>Evaluated Person Individual Characteristics: <ul><li>Perceptual Process </li></ul><ul><li>Values </li></ul><ul><li>Needs </li></ul><ul><li>Goals </li></ul><ul><li>Self-Concept </li></ul><ul><li>Self-Efficacy </li></ul>Cognitive Evaluation: <ul><li>Creditive of Feedback Source </li></ul><ul><li>Expectancies </li></ul><ul><li>Personal Standards </li></ul><ul><li>Form of Feedback </li></ul><ul><li>(Objective or Subjective) </li></ul>
  13. 14. Multisource Feedback: A 360-Degree Approach <ul><li>90 percent of Fortune 1000 firms use some form of multisource program </li></ul><ul><li>The increasing use of multisource programs is the result of calls for more </li></ul><ul><ul><li>fairness </li></ul></ul><ul><ul><li>clarity </li></ul></ul><ul><ul><li>credibility </li></ul></ul><ul><li>Everyone in the person’s full domain could serve as an evaluator </li></ul>
  14. 15. Best Practices to Improve 360-Degree Feedback Programs (1 of 2) <ul><li>Use 360-degree feedback primarily for individual development </li></ul><ul><li>Link the feedback process with the overall strategy and direction of the firm </li></ul><ul><li>Exert administrative control over every aspect of the 360-degree process </li></ul>
  15. 16. Best Practices to Improve 360-Degree Feedback Programs (2 of 2) <ul><li>Use senior management as role models </li></ul><ul><li>Use highly trained internal coaches to leverage the investment </li></ul><ul><li>Evaluate the effectiveness or return on investment of the process </li></ul>
  16. 17. Reinforcement Theory <ul><li>Reinforcement is the most important principle of learning </li></ul><ul><li>Desirable or reinforcing consequences will increase the strength of a behavior and increase the probability of being repeated </li></ul><ul><li>Undesirable or punishment consequences will decrease the strength of a response and decrease its probability of being repeated </li></ul>
  17. 18. Example: <ul><li>Positive reinforcement is when you reward a behavior to encourage it (for instance, giving a treat to a boy for finishing his chores). </li></ul><ul><li>Negative reinforcement is when you remove something bad in order to reinforce a behavior (for instance, ungrounding a boy who finishes his chores). </li></ul><ul><li>There are also negative and positive punishments... giving or taking away something in order to make someone do something less. Grounding a boy who tears up his sister's drawing is positive punishment (positive because it is something you add to the equation... you add the grounding). Negative punishment would be taking away the boy's treat because of the same thing (removal of a positive reinforcer). </li></ul>
  18. 19. Reinforcement Theory: Operant Conditioning <ul><li>Operant conditioning – attempts to influence behavior through the use of rewards and punishments </li></ul><ul><li>Operants – behaviors that can be controlled by altering the consequences that follow them </li></ul><ul><li>Most workplace behaviors are operants </li></ul>
  19. 20. Operant Conditioning: Key Principles Reinforcement Punishment Extinction
  20. 21. Reinforcement Schedules Schedule Description Organizational Example Continuous Reinforcer follows every response Praise after every new sale and order Fixed interval Response after specific time period is reinforced Weekly, bimonthly, monthly paycheck Variable interval Response after varying period of time (an average) is reinforced Transfers, unexpected bonuses, promotions, recognition Fixed ratio A fixed number of responses must occur before reinforcement Piece rate, commission on units sold Variable ratio A varying number (average) of responses must occur before reinforcement Random checks for quality yield praise for doing good work
  21. 22. Individual Rewards <ul><li>The main objectives of reward programs are: </li></ul><ul><li>to attract qualified people to join the organization </li></ul><ul><li>to keep employees coming to work </li></ul><ul><li>to motivate employees to achieve high levels of performance </li></ul>
  22. 23. The Reward Process Feedback Motivation to exert effort Ability and skill Experience Performance results: Individual Performance evaluation Intrinsic rewards Extrinsic rewards Satisfaction
  23. 24. Lawler’s Conclusions on Satisfaction and Rewards (1 of 2) <ul><li>Satisfaction with a reward is a function both of how much is received and of how much the individual feels should be received </li></ul><ul><li>An individual’s feelings of satisfaction are influenced by comparisons with what happens to others </li></ul><ul><li>Satisfaction is influenced by how satisfied employees are with both intrinsic and extrinsic rewards </li></ul>
  24. 25. Lawler’s Conclusions on Satisfaction and Rewards (2 of 2) <ul><li>People differ in the rewards they desire and in how important different rewards are to them </li></ul><ul><li>Some extrinsic rewards are satisfying because they lead to other rewards </li></ul>
  25. 26. Management Considerations for Developing and Distributing Rewards <ul><li>The rewards available must be sufficient to satisfy basic human needs </li></ul><ul><li>Individuals tend to compare their rewards with those of others </li></ul><ul><li>The process by which rewards are distributed should be perceived as fair </li></ul><ul><li>The managers distributing the rewards must recognize individual differences </li></ul>
  26. 27. Intrinsic and Extrinsic Rewards <ul><li>Extrinsic reward – initiated from outside the person </li></ul><ul><ul><li>Salary and wages </li></ul></ul><ul><ul><li>Employee benefits </li></ul></ul><ul><ul><li>Interpersonal rewards </li></ul></ul><ul><ul><li>Promotions </li></ul></ul><ul><li>Intrinsic reward – one that is self-administered by the person </li></ul><ul><ul><li>Completion </li></ul></ul><ul><ul><li>Achievement </li></ul></ul><ul><ul><li>Autonomy </li></ul></ul><ul><ul><li>Personal growth </li></ul></ul>
  27. 28. Rewards Affect Organizational Concerns <ul><li>Rewards affect employee perceptions, attitudes, and behavior </li></ul><ul><li>Key organizational concerns affected by rewards: </li></ul><ul><ul><li>Turnover </li></ul></ul><ul><ul><li>Absenteeism </li></ul></ul><ul><ul><li>Performance </li></ul></ul><ul><ul><li>Commitment </li></ul></ul>
  28. 29. Line of Sight: The Key Issue (1 of 2) <ul><li>Line of sight – means that the employee perceives that there is a “real” linkage between his or her performance and the rewards received </li></ul><ul><li>For extrinsic rewards, organizations need to have systems that clearly tie rewards to desired performance </li></ul>
  29. 30. Line of Sight: The Key Issue (2 of 2) <ul><li>Organizations can influence intrinsic rewards by: </li></ul><ul><ul><li>providing jobs that are challenging </li></ul></ul><ul><ul><li>providing clear feedback on job performance </li></ul></ul>