OB - Performance


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Partially based on the Kreitner/Kinicki (2009, McGraw Hill/Irwin) textbook with updated data from a variety of cited sources.

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  • Our next series of slides will move out of the text to discuss Organizational Learning Culture
  • While the average age of the working population is going up, organizations are now going through a massive influx of younger workers.  The result is that today’s corporations are likely to have four distinct demographic groups all working together. The transfer of knowledge and culture from more experienced workers to new peers is crucial, as is the acceptance by older workers of new ideas from younger generations.http://joshbersin.com/2007/10/01/a-new-organizational-learning-model-learning-on-demand/
  • http://joshbersin.com/2007/10/01/a-new-organizational-learning-model-learning-on-demand/
  • http://joshbersin.com/2007/10/01/a-new-organizational-learning-model-learning-on-demand/L&D = Learning and Development. Larger organizations generally have an organizational development and training department, but not all. These principles are just as relevant to medium and small businesses, but often resources are not available or not applied to consider organizational learning, which is a mistake.
  • http://joshbersin.com/2007/10/01/a-new-organizational-learning-model-learning-on-demand/EPSS – Electronic Performance Support Systems, which again may not be available in smaller businesses, but would be worth the investment.
  • Management by objectives is a system that incorporates participation in decision making, goal setting, and feedbackThe three steps to effective implementation of goal-setting programs are outlined here. Key points to remember under each are as follows: Number one, goals can be based on such things as time and motion studies or the average past performance of job holders. Deciding what is appropriate needs to be decided participatively between the employee and the boss.Number two, employees are typically motivated to pursue a goal that they consider reasonable, obtainable, and fair.Number three, in providing support, managers must consider factors, besides motivation, that will impact the successful accomplishment of the goal. For example, employees may require training or extra support before they can reach their goals.
  • Why would 360 degree feedback be more effective than just manager feedback?The textbook suggests research on 360-degree feedback found that improvement was more likely to occur when feedback indicates change is necessary; and recipients have a positive feedback orientation, perceive a need to change their behavior, believe the change is feasible, and set goals to enact the change.
  • http://joshbersin.com/2007/10/01/a-new-organizational-learning-model-learning-on-demand/L&D = Learning and Development. Larger organizations generally have an organizational development and training department, but not all. These principles are just as relevant to medium and small businesses, but often resources are not available or not applied to consider organizational learning, which is a mistake.
  • This model focuses on three common components of an organizational reward system. The types of rewards can be either extrinsic or intrinsic, a topic discussed on the next slide. The desired outcomes organizations hope to achieve from their organizational reward system are broadly described as attracting, motivating, developing, satisfying, and retaining employees. The distribution criteria can be based on results or actions and behaviors, which are performance criteria. Results are the tangible outcomes such as individual, group, or organization performance and quantity and quality of performance; whereas, action and behavior examples include teamwork, cooperation, risk taking, and creativity. Other distribution criteria are non-performance considerations such as the type of job, tenure, or seniority.
  • Graphic from article by Allen Whittom & Marie-Christine RoyReward systems need to incorporate the aspects of a job that allow employees to grow and develop as a person, and at the same time realize the power of pay and benefits. Examples of intrinsic rewards are feelings of competence or accomplishment. These are driven by positive feelings associated with doing well on a task or job.Examples of extrinsic rewards are money, praise, and recognition.
  • Four key intrinsic rewards underlie a person’s level of intrinsic motivation: A sense of meaningfulness is the opportunity you feel to pursue a worthy task purpose. Managers lead for meaningfulness by creating a a non-cynical climate, clearly identifying each employee’s passions, communicating an exciting vision and relevant task purposes, and assigning whole tasks.A sense of choice is the opportunity you feel to select task activities that make sense to you and to perform them in ways that seem appropriate. Managers lead for choice by delegating authority, placing trust in workers, not punishing for honest mistakes, communicating a clear purpose, and providing information.A sense of competence is the accomplishment you feel in skillfully performing tasks you have chosen. Managers lead for competence by making sure employees have the knowledge they need to succeed at their jobs, providing positive feedback, recognizing employees’ skills, providing challenging assignments, and setting high, non-comparative standards.A sense of progress is the accomplishment you feel in achieving the task purpose. Managers lead for progress by creating a collaborative climate, recognizing and rewarding milestones, promoting celebrations, providing access to customers, and measuring improvement.
  • Pay for performance is the popular term for monetary incentives tied to one’s results or accomplishments that determine at least some portion of employees’ paychecks.Research has shown that 41 percent of companies with single-digit revenue growth said the cost outweighed the benefits of the pay for performance plan and actually led to adverse results for 26% of those surveyed.The result was just the opposite for companies with double-digit revenue growth. It is clear that the implementation, support, and communication of these plans is critical for their success and that they may not be appropriate in some situations.
  • Thorndike law of effect
  • Thorndike law of effect
  • The four ways that contingent consequences control behavior are positive reinforcement, negative reinforcement, punishment, and extinction. Positive reinforcement makes behavior occur more often by contingently presenting something positive. Negative reinforcement makes behavior occur more often by contingently withdrawing something negative. Punishment makes behavior occur less often by contingently presenting something negative or withdrawing something positive. And extinction makes behavior occur less often by ignoring or not reinforcing it.
  • Reason: Allowing members to understand the need for change.Research: Providing important information that supports the reason.Resonance: The understanding of change must reach to the core beliefs of members.Redescriptions: The basis for change must be expressed in multiple forms (numbers, graphics, etc.). Schein suggests that the stories which bind members together are the most important (Schein, 2004)Resources and Rewards: Members must have the tools they need to complete the change, and a reward for success (beyond simply keeping your job).Real World Events: Change will not be successful if it doesn’t relate to real life and what’s occurring outside of the organization.Resistances: Every human comes from their personal paradigms and resistance to change is inevitable, but can be overcome.
  • This slide was actually part of MS Office template, but I liked it so I left it in. It’s an interesting acronym.
  • Source: Cormier, R. Disarming the Dangerous, Training, March/April 2009.This article discusses the negative effect of malcontents in the workplace. The article provides tips on improving employee engagement to render the malcontent’s powerless.Start out with a discussion of recent findings from a Gallup Management Journal survey. Malcontents make up about 17% of the workforce in an average company.56% of disengaged employees would fire their boss if they could66% would never recommend your product or service
  • OB - Performance

    1. 1. Chapter 9 – Performance Improvement BUSA 220 Wallace Spring 2012
    2. 2. What’s Your Experience?1. Have you had a performance review with your manager?2. Have you ever led a performance management review with an employee?3. Do you look forward to performance evaluation meetings with your boss?4. What would your ideal performance review look like?
    3. 3. Continuous Performance Improvement • Continuous cycle of improving job performance with goal setting, feedback and coaching, rewards and positive reinforcement. – Factors that contribute to employee success include knowledge, skills, ability, (KSA’s) organizational resources, motivation, and culture. Graphic Source: www.hrutilities.com
    4. 4. Continuous Performance Improvement Source: Krietner/Kinicki, 2009
    5. 5. Goals: Performance and Learning• Setting goals that are only performance based is often a mistake managers or leaders make. Developmental goals that increase skills, creativity and knowledge should improve performance goals as an outcome of self and team improvements.
    6. 6. Organizational Learning Culture Source: Bersin & Associates
    7. 7. Organizational Learning Culture Source: Bersin & Associates
    8. 8. Organizational Learning Culture Source: Bersin & Associates
    9. 9. Organizational Learning Culture Source: Bersin & Associates
    10. 10. Organizational Learning Culture Graphic source: www.softsia.com
    11. 11. Line of Sight • Knowledge of the organization’s strategic goals and how we need to contribute – According to research by Franklin Covey, 56% of American workers don’t understand their organizations’ most important goals. – 81% don’t have clearly defined goals.
    12. 12. SMART Goals – Blanchard & Johnson Source: Krietner/Kinicki, 2009
    13. 13. SMART Goals – Blanchard & Johnson Source: Penn State Psych 484
    14. 14. Peter Drucker - MBO 1. Set Goals - What do you base the goals on? How do you know what is appropriate? 2. Promote Goal Commitment - Under what conditions will an employee be motivated to pursue a goal? 3. Provide Support and Feedback - How will the employee reach the goal? What resources will be necessary?Source: Mind Tools
    15. 15. Feedback• When employees receive feedback about their performance, it should be either instructional or motivational (not negative). – Instructional feedback serves to clarify roles or teach new behavior. – Motivational feedback serves as a reward or a promise of a reward.
    16. 16. Organizational Feedback Trouble1. Feedback is used to punish, embarrass, or put down employees2. Those receiving the feedback see it as irrelevant to their work.3. Feedback information is provided too late to do any good.4. People receiving feedback believe it relates to matters beyond their control.5. Employees complain about wasting too much time collecting and recording feedback data.6. Feedback recipients complain about feedback being too complex or difficult to understand.
    17. 17. 360 Degree Feedback • A comparison of anonymous feedback from one’s superior, subordinates, peers, vendors and customers with self-perceptions. – Multifactor Leadership Questionnaire (MLQ) – Servant Leadership Questionnaire (SLQ) – Leadership Practices Inventory (LPI)Graphic Source: Skills2Lead
    18. 18. Organizational Learning Culture Source: Bersin & Associates
    19. 19. Effective Feedback• Performance, not personalities• Specific to observable behavior or measurable results• Channel toward key result areas• Timely – as soon as possible• Give positive feedback for improvement, not just final results• Base on accurate & credible information• Pair with clear expectations for improvement.
    20. 20. Organizational Reward Model Types of Rewards Desired Outcomes • Attract• Financial/material • Motivate (extrinsic) • Develop• Social (extrinsic) • Satisfy• Psychic (intrinsic) Distribution Criteria • Retain • Results • Behavior • Other factors Source: Krietner/Kinicki, 2009
    21. 21. Rewards Comparison • Intrinsic – Self granted, Psychic – Autonomy – Mastery – Purpose • Extrinsic – Financial, Material, SocialGraphic Source: Journal of Knowledge Management Practice, Vol. 10, No. 1, March 2009
    22. 22. Intrinsic vs. Extrinsic Graphic Source: P2PFoundation
    23. 23. Intrinsic Motivation Model Opportunity Accomplishment Rewards Rewards From Task Sense of Sense ofActivities Choice Competence From Sense of Sense of TaskPurpose Meaningfulness Progress Source: Krietner/Kinicki, 2009
    24. 24. Failure of Extrinsic Rewards• Too much emphasis on monetary rewards• No “appreciation effect”• Extensive benefits become entitlements• Counterproductive behavior is rewarded• Delay between performance and rewards• Too many one-size-fits-all rewards• Use of one-shot rewards have a short-lived motivational impact• Demotivating practices such as layoffs, across-the-board raises and cuts, and excessive executive compensation
    25. 25. Incentive Pay Plans Source: Krietner/Kinicki, 2009
    26. 26. Maximizing Extrinsic Rewards • Integrate Pay for Performance • Base incentive determinations on objective performance data. • Engage employees in the development, implementation, and revision of the performance-pay formulas. • Encourage two-way communication for early detection of pay-for- performance issues.
    27. 27. Maximizing Extrinsic Rewards • Use participative suggestion systems or problem-solving teams • Reward cooperation/teamwork • Engage managers to avoid fear of employee involvement • Pay annual bonuses in a lump sum to maximize motivational impact • Selectively use creative noncash rewards to create buzz and excitement
    28. 28. The Law of Effect • Behavior with favorable consequences is repeated, behavior with unfavorable consequences disappears. • I work really hard and am not rewarded. The law of effect would suggest that I will a. Quit b. Keep trying to impress the right people
    29. 29. The Law of Effect • Behavior with favorable consequences is repeated, behavior with unfavorable consequences disappears. • I work really hard and am not rewarded. The law of effect would suggest that I will a. Quit b. Keep trying to impress the right people
    30. 30. Contingent Consequence Conditioning Nature of ConsequencesBehavior-Consequence Relationship Positive or Pleasing Negative or Displeasing Contingent Positive Punishment Presentation Reinforcement Contingent Punishment Negative Withdrawal (Response Cost) Reinforcement (no contingent consequence) Extinction Source: Krietner/Kinicki, 2009
    31. 31. What Do You Think?• Martin’s boss tells him “the next time you come to work late, I’m going to dock your pay”. This best represents: a. Positive reinforcement b. Negative reinforcement c. Punishment d. Response Cost Punishment
    32. 32. Shaping Job Behavior 1. Accommodate the process of behavioral change. 2. Define new behavior patterns specifically. 3. Give individual performance feedback . 4. Reinforce behavior as quickly as possible. 5. Use powerful reinforcement. 6. Use a continuous reinforcement schedule (for new behaviors) 7. Use a variable reinforcement schedule for maintenance 8. Reward teamwork - not competition. 9. Make all rewards contingent on performance. 10.Never take good performance for granted.
    33. 33. Changing Behavior – Changing Minds 1. Reason 2. Research 3. Resonance 4. Redescriptions 5. Resources and Rewards 6. Real World Events 7. Resistances Howard Gardner (2006)
    34. 34. PurposeEmpowerment & Engagement Relationship Flexibility Employee Engagement Optimal PerformanceRecognition and Rewards Morale
    35. 35. Employee Engagement 56% of disengaged employees would fire their boss if they could 66% of disengaged employees would never recommend your organization to clientsSource: Cormier, R. Disarming the Dangerous, Training, March/April 2009.
    36. 36. Louis Gerstner (Former IBM CEO) "In the end, an organization is nothing more than the collective capacity of its people to create value".
    37. 37. Autonomy – Mastery - Purpose Ted Talks: Daniel Pink
    38. 38. Questions