Discuss why organizational reward systems often fail and describe specific actions firms could take to improve their reward systems. To ensure full credit, you will need to support your position from the information found in your textbook (Chapter 9). You will need to include at least 2 references to support your position. Do not forget to cite your references throughout your discussion posting and include a reference list at the end of your discussion. ½ page in length © 2013 The McGraw-Hill Companies, Inc. All rights reserved. Chapter  Nine   9-2 Learning  Objec2ves   LO.1 Define the term performance management, distinguish between learning goals and performance outcome goals, and explain the three-step goal-setting process. LO.2 Identify the two basic functions of feedback, and specify at least three practical lessons from feedback research. LO.3 Define 360-degree feedback, and summarize how to give good feedback in a performance management program. LO.4 Distinguish between extrinsic and intrinsic rewards, and explain the four building blocks of intrinsic rewards and motivation. 9-3 Learning  Objec2ves  (cont.)   LO.5 Summarize the reasons why extrinsic rewards often fail to motivate employees. LO.6 Discuss how managers can generally improve extrinsic reward and pay-for-performance plans. LO.7 State Thorndike’s law of effect, and explain Skinner’s distinction between respondent and operant behavior. LO.8 Define positive reinforcement, negative reinforcement, punishment, and extinction, and distinguish between continuous and intermittent schedules of reinforcement. LO.9 Demonstrate your knowledge of behavior shaping. 9-4 Performance  Management   !  Performance management 9  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 9-5 Improving  Individual  Job   Performance   9-6 Goal  SeDng   !  Employees with a clear line of sight understand the organization’s strategic goals and know what actions they need to take, both individually and a team members. 9-7 Two  Types  of  Goals   !  Performance outcome goal 9  targets  a  specific  end   result.   !  Learning goal 9  strives to improve creativity and develop skills 9-8 Goal  SeDng   !  Management by objectives 9  management system incorporating participation in decision making, goal setting, and feedback 9-9 Managing  the  Goal-­‐SeDng  Process   !  Step 1: Set goals 9  Whether goals are imposed or, preferably, set participatively via a free exchange with one’s manager, they should be “SMART.” 9  specific, measurable, attainable, results oriented, and time bound 9-10 Managing  the  Goal-­‐SeDng  Process   Two additional recommendations:.

1. Discuss why organizational reward systems often fail and
describe specific actions firms could take to improve their
reward systems. To ensure full credit, you will need to support
your position from the information found in your textbook
(Chapter 9). You will need to include at least 2 references to
support your position. Do not forget to cite your references
throughout your discussion posting and include a reference list
at the end of your discussion. ½ page in length
© 2013 The McGraw-Hill Companies, Inc. All rights reserved.
Chapter
Nine
9-2
Learning
Objec2ves
LO.1 Define the term performance management, distinguish
between learning goals and performance outcome
goals, and explain the three-step goal-setting process.
LO.2 Identify the two basic functions of feedback, and specify
at least three practical lessons from feedback
research.
LO.3 Define 360-degree feedback, and summarize how to

2. give good feedback in a performance management
program.
LO.4 Distinguish between extrinsic and intrinsic rewards, and
explain the four building blocks of intrinsic rewards and
motivation.
9-3
Learning
Objec2ves
(cont.)
LO.5 Summarize the reasons why extrinsic rewards often fail
to motivate employees.
LO.6 Discuss how managers can generally improve extrinsic
reward and pay-for-performance plans.
LO.7 State Thorndike’s law of effect, and explain Skinner’s
distinction between respondent and operant behavior.
LO.8 Define positive reinforcement, negative reinforcement,
punishment, and extinction, and distinguish between
continuous and intermittent schedules of
reinforcement.
LO.9 Demonstrate your knowledge of behavior shaping.
9-4

3. Performance
Management
! Performance management
9 -wide system whereby
managers integrate the activities of goal
setting, monitoring and evaluating, providing
feedback and coaching, and rewarding
employees on a continuous basis
9-5
Improving
Individual
Job
Performance
9-6
Goal
SeDng
! Employees with a clear line of sight
understand the organization’s strategic
goals and know what actions they need to
take, both
individually

4. and a team
members.
9-7
Two
Types
of
Goals
! Performance
outcome goal
a
specific
end
result.
! Learning goal
creativity and
develop skills
9-8
Goal
SeDng

5. ! Management by objectives
pation
in decision making, goal setting, and feedback
9-9
Managing
the
Goal-­‐SeDng
Process
! Step 1: Set goals
participatively via a free exchange with one’s
manager, they should be “SMART.”
oriented, and
time bound
9-10
Managing
the
Goal-­‐SeDng
Process

6. Two additional recommendations:
1. For complex tasks, managers should train
employees in problem-solving techniques
and encourage them to develop a
performance action plan
9-11
Managing
the
Goal-­‐SeDng
Process
2. Because of individual differences, it may be
necessary to establish different goals for
employees performing the same job.
9-12
Guidelines
for
Wri2ng
SMART
Goals

7. 9-13
Managing
the
Goal-­‐SeDng
Process
! Step 2: Promote goal commitment
comprehensive goal-setting program.
reate clear lines of sight by clarifying the
corporate goals and linking the individual’s
goals to them.
goals
9-14
Managing
the
Goal-­‐SeDng
Process
! Step 3: Provide support and feedback
skills and information to reach his goals

8. effort→performance expectations, perceived
self-efficacy, and reward preferences and
adjust accordingly
9-15
Feedback
! Feedback
individual or
collective
performance
9-16
Two
Func2ons
of
Feedback
! Instructional
aches new behaviors
! Motivational

9. ! Feedback enhances the effect of specific, difficult
goals
9-17
Prac2cal
Lessons
from
Feedback
Research
! Managers can enhance their credibility as
sources of feedback by developing their
expertise and creating a climate of trust.
! Negative feedback is typically misperceived
or rejected
! Recipients of feedback perceive it to be
more accurate when they actively
participate in the feedback session versus
passively receiving feedback
9-18
Six
Common

10. Trouble
Signs
for
Organiza2onal
Feedback
Systems
9-19
360-­‐Degree
Feedback
! 360-Degree feedback
ir own perceived
performance with behaviorally specific (and
usually anonymous) performance information
from their manager, subordinates, and peers
9-20
How
to
Give
Feedback
for
Coaching
Purposes

11. and
Organiza2onal
Effec2veness
! 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.
9-21
A
General
Model
of
Organiza2onal
Reward
Systems
9-22
Types

12. of
Rewards
! Extrinsic rewards
the
environment
! Intrinsic rewards
-granted, psychic rewards
9-23
Reward
Distribu2on
Criteria
! Performance: results
! Performance: actions and behaviors
-taking
! Non-performance considerations
9-24
Thomas’s
Building

13. Blocks
for
Intrinsic
Rewards
and
Mo2va2on
9-25
Why
Do
Extrinsic
Rewards
Too
OZen
Fail
to
Mo2vate?
1. Too much emphasis on monetary rewards.
2. Rewards lack an “appreciation effect.”
3. Extensive benefits become entitlements.
4. Counterproductive behavior is rewarded.
5. Too long a delay between performance and
rewards.
6. Too many one-size-fits-all rewards.

14. 9-26
Pay
for
Performance
! Pay for
performance
incen2ves
linking
at
least
some
por2on
of
the
paycheck
directly
to
results
or
accomplishments
9-27
GeDng

15. the
Most
out
of
Extrinsic
Rewards
and
Pay
for
Performance
! 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 of the performance-pay formulas
! Reward teamwork and cooperation whenever
possible
9-28
Thorndike’s
Law
of
Effect

16. ! Law of effect
be repeated; behavior with unfavorable
consequences tends to disappear
9-29
Posi2ve
Reinforcement
! Respondent behavior
stimulus-response connections
! Operant behavior
on” the environment to produce desired
consequences.
9-30
Con2ngent
Consequences
in
Operant

17. Condi2oning
9-31
Con2ngent
Consequences
! Positive
reinforcement
of
strengthening
a
behavior
by
con2ngently
presen2ng
something
pleasing
! Negative
reinforcement
desired behavior by
contingently

18. withdrawing
something
displeasing
9-32
Con2ngent
Consequences
! Punishment
the contingent presentation of something
displeasing or the contingent withdrawal of
something positive
! Extinction
sure it is not reinforced
9-33
Schedules
of
Reinforcement
! Continuous reinforcement

19. ! Intermittent reinforcement
forcing some but not all instances of a
target behavior
9-34
Behavior
Shaping
! Shaping
a target behavior
9-35
Ten
Prac2cal
Tips
for
Shaping
Job
Behavior

20. © 2013 The McGraw-Hill Companies, Inc. All rights reserved.
Chapter
Eight
8-2
Learning
Objec2ves
LO.1 Contrast Maslow’s, Alderfer’s, and McClelland’s
need theories.
LO.2 Explain the practical significance of Herzberg’s
distinction between motivators an hygiene factors.
LO.3 Discuss the role of perceived inequity in employee
motivation.
LO.4 Explain the differences among distributive,
procedural, and interactional justice.
LO.5 Describe the practical lessons derived from equity
theory.
8-3
Learning
Objec2ves

21. LO.6 Explain Vroom’s expectancy theory.
LO.7 Explain how goal setting motivates an
individual.
LO.8 Review the five practical lessons from goal-
setting research.
LO.9 Discuss the three conceptually different
approaches to job design.
8-4
Employee
Mo2va2on
! Motivation
direction, and persistence of voluntary actions
that are goal directed
8-5
Employee
Mo2va2on
! Content theories of motivation

22. instincts, needs, satisfaction, and job
characteristics that energize employee
motivation.
! Process theories of motivation
s by which
internal factors and cognitions influence
employee motivation
8-6
Overview
of
Mo2va2on
Theories
8-7
Need
Theories
of
Mo2va2on
! Needs
or
psychological

23. deficiencies
that
arouse
behavior.
8-8
Maslow’s
Need
Hierarchy
Theory
! Motivation is a function of five basic needs –
physiological, safety, love, esteem, and self-
actualization
! Human needs emerge in a predictable stair-
step fashion
8-9
Maslow’s
Need
Hierarchy

24. 8-10
Alderfer’s
ERG
Theory
! Existence needs (E)
wellbeing;
! Relatedness needs (R)
significant others
! Growth needs (G)
one’s abilities to their fullest potential
8-11
McClelland’s
Need
Theory
! Need for achievement
t.
! Need for affiliation

25. relationships, joining groups, and wanting to be
loved
! Need for power
others to achieve.
8-12
McClelland’s
Need
Theory
Achievement-motivated people share three
common characteristics:
1. Preference for working on tasks of moderate
difficulty
2. Preference for situations in which
performance is due to their efforts
3. Desire more feedback on their successes
and failures
8-13
Herzberg’s
Mo2vator-­‐Hygiene

26. Model
8-14
Herzberg’s
Mo2vator–Hygiene
Theory
! Motivators
characteris2cs
associated
with
job
sa2sfac2on
! Hygiene factors
associated with job
dissatisfaction
8-15
Adams’s

27. Equity
Theory
of
Mo2va2on
! Equity theory
of
mo2va2on
that
explains
how
people
strive
for
fairness
and
jus2ce
in
social
exchanges
or
give-­‐and-­‐take
rela2onships

28. 8-16
Nega2ve
and
Posi2ve
Inequity
! Negative inequity
greater outcomes for similar inputs.
! Positive inequity
lesser outcomes for similar inputs.
8-17
Nega2ve
and
Posi2ve
Inequity
8-18
Prac2cal
Lessons
from
Equity
Theory

29. ! No matter how fair management thinks the
organization’s policies, procedures, and
reward system are, each employee’s
perception of the equity of those factors is
what counts.
! Managers benefit by allowing employees to
participate in making decisions about
important work outcomes
8-19
Prac2cal
Lessons
from
Equity
Theory
! Employees should be given the opportunity
to appeal decisions that affect their welfare.
! Managers can promote cooperation and
teamwork among group members by
treating them equitably
8-20
Prac2cal
Lessons

30. from
Equity
Theory
! Employees’ perceptions of justice are
strongly influenced by the leadership
behavior exhibited by their managers
! Managers need to pay attention to the
organization’s climate for justice.
8-21
Expectancy
Theory
of
Mo2va2on
! Expectancy
theory
that
people
are
mo2vated
to
behave
in
ways
that

31. produce
desired
combina2ons
of
expected
outcomes.
8-22
Vroom’s
Expectancy
Theory
! Motivation boils down to the decision of how
much effort to exert in a specific task
situation.
! Expectancy
degree of effort will be followed by a particular
level of performance.
8-23
Expectancy

32. The following factors influence an employee’s
expectancy perceptions:
-esteem.
-efficacy.
y to complete the task.
8-24
Vroom’s
Expectancy
Theory
! Instrumentality
! Valence
outcomes
! Outcomes
performance
8-25

33. Managerial
and
Organiza2onal
Implica2ons
of
Expectancy
Theory
8-26
Goals:
Defini2on
and
Background
! Goal
ividual is trying to accomplish
8-27
How
Does
Goal
SeTng
Work

34. ! Goals direct attention
! Goals regulate effort
! Goals increase persistence
! Goals foster the development and
application of task strategies and action
plans
8-28
Prac2cal
Lessons
from
Goal-­‐SeTng
Research
1. Specific high goals lead to greater
performance
– quantifiability of a goal
2. Feedback enhances the effect of specific,
difficult goals
3. Participative goals, assigned goals, and
self-set goals are equally effective.
8-29
Prac2cal
Lessons

35. from
Goal-­‐SeTng
Research
4. Action planning facilitates goal
accomplishment.
activities or tasks that
need to be accomplished in order to obtain a
goal.
5. Goal commitment and monetary incentives
affect goal-setting outcomes
– extent to which an
individual is personally committed to achieving
a goal
8-30
Top-­‐Down
Approaches
! Scientific management
business or affairs by standards established by
facts or truths gained through systematic
observation, experiment, or reasoning

36. 8-31
Top-­‐Down
Approaches
! Job enlargement
by combining specialized tasks of comparable
difficulty.
! Job rotation
another
8-32
Top-­‐Down
Approaches
! Job enrichment
work, responsibility, and advancement into a
job.
8-33

37. The
Job
Characteris2cs
Model
8-34
BoWom-­‐Up
Approaches
! Job crafting
aimed at changing the nature of one’s job.
8-35
Idiosyncra2c
Deals
(I-­‐Deals)
! Idiosyncratic deals (i-deals)
negotiate for themselves, taking myriad forms
from flexible schedules to career development.”