This chapter discusses performance measurement and management in organizations. It outlines the benefits of performance measurement, such as performance planning, increased effectiveness of supervision, and improved employee morale. However, it also notes pitfalls like negative attitudes towards measurement. The chapter emphasizes that positive, immediate, and certain consequences are the most powerful motivators for employees' performance and behavior. Overall, it stresses that good performance management involves defining goals, monitoring rewards systems, and cultivating a culture where people feel safe and rewarded for change.

1. CHAPTER 12, MOTIVATING
PEOPLE
Companies Are Judged
By The People They Keep
1

2. BENEFITS OF PERFORMANCE
MEASUREMENT/MANAGEMENT
 Performance planning
 Routine performance
measurement/management increases
effectiveness of supervision
 Opens communication channels
 Enhances empowerment
2

3. BENEFITS OF PERFORMANCE
MEASUREMENT/MANAGEMENT
 Enhanced learning from recent success or
failure
 Benchmarking plots a path to success
 Maximize strengths and deal with weaknesses
 Good for employee morale
 Improved performance
3

4. PITFALLS OF PERFORMANCE
MEASUREMENT/MANAGEMENT
 ATTITUDES TO MEASUREMENT
 Obstacles come from management thinking that:
 some jobs can't be measured
 measurement is too difficult to work with
 there isn't time to measure
 measurement is a prompt or cue for
punishment
 Costs outweigh benefits
 Measure too much
 Measure too little
 Measure the wrong things
4

5. Where Are We And How Did
We Get here?
 Most people don’t like to be measured.
 Those who do like to be measured are
already winners
 Those who don’t like to be measured
have had some bad experiences
 Employee of the month
 This is a practice that is very dangerous!
5

6. Flaws in positive
reinforcement
 What we presently do to deliver reinforcement
is also flawed.
 too late to be effective,
 we deliver reinforcement to the wrong
people,
 Don’t know how to be positive, so we choose
to do nothing
6

7. Where Do We Want To Be,
And How Do We Get There?
 An absolutely perfect performance
management system would have the
measures collected by the performer, and
the motivation to improve come from
within the performer.
 Wouldn’t it be fantastic to have a group of
sales people as motivated and as
independent as Olympic athletes..
7

8. Figure 12.1 The evolution of
reinforcement
8

9. Figure 12.2 ,
the opportunities of positive
reinforcement
9

10. Discretionary effort
 Discretionary effort, …. is what will make
your organization excellent.
 There are excellent performers who are
simply waiting for the system to offer the
reinforcement they need because they
cannot find a way to get the positive
reinforcement from within.
10

11. Some principles to follow to make
measurement active are:
 Make positive reinforcement happen as
often as possible
 Don’t save up reinforcement until the
annual company party.
 The reward must have value to the
performer
 Most people say that the reward for good
work is more work!
11

12. Some principles to follow to make
measurement active are:
 The reward should be earned
 Don’t reward people for things that
happen naturally, a meaningful reward
should reflect meaningful work.
 There should be a celebration
12

13. What is Positive
Reinforcement?
 Here is the general rule. “positive”
reinforcement can only be defined by the
performer.
 Here are some short examples.
 A manager who was an avid golfer, wanting to
reward a team for being “on the ball” gave each
member a sleeve of golf balls and a pass for the
local golf course at the Christmas office party.
 The top sales person at the real estate office
reached a new record of sales which netted the firm
in excess of $750,000 in commission.
13

14. “Management by
wandering around”.
 It would be better if they used “Management by
wondering around”.
14

15. The value of rewards
 Rewards don’t have to be
expensive, they need only be of
trophy value to the performer.
 Incentives and rewards are an
integral part of reinforcement and
money is not always available..
15

16. People, Our Most Valuable Asset,
and most Threatening Liability
 We get:
1. An employee refuses to wear a hard hat in the
shop because their hair gets messy.
2. A drug pusher stands on a street corner defying
the law.
3. An employee steals from the company
4. You decide to drink beer rather than study
performance management.
 We need to use the “no-but” rule
16

17. We want:
 What do we want instead? We want performances that
add value and make the realization of goals possible.
 The employee to wear the hard hat so that safety is
in the workplace
 Drug pushers to choose a socially acceptable way
to support themselves
 Employees to use the assets of the company for the
benefit of the company
 You to study and use performance management so
you can get a job and afford good beer
 So, how do we get what we want?
17

18. People choose to perform based on their analysis
of the Consequences of their choice
 Employees don’t wear hard hats because the
consequence is messy hair.
 Drug dealers defy the law because the
consequence is they make lots of money
 An employee steals from the company because
the consequence is they will have what they
want.
 You drink beer because its fun.
18

19. Consequences, what do
they look like.
 Figure 12.3, the dimensions of consequences.
Positive Negative
I Get something I want I Get something I don’t want
The performers Immediate Future
view of
consequences What I get happens
What I get happens in the future
immediately
Certain Uncertain
What I get happens every time
What I get may or may not happen
I perform
19

20. Figure 12.4, how consequences are
perceived
To the performer To the organization
NIC hair gets PFU injury could be
Putting on the messy avoided
hard hat
PIC cash in NFU buyer lives
Selling drugs hand could be ruined
PIC goods in NFU company
Stealing hand might go bankrupt
PIC having fun NFU possible future
Partying with friends career impact
20

21. Which consequences are
most powerful?
 The lesson learned here is that Positive,
Immediate, Certain, (PIC) consequences
are very powerful in terms of having
people choose to do something and
Positive, Future, Uncertain, (PFU)
consequences are very weak.
 Similarly, NIC consequences are very
powerful in getting someone to stop
doing something while NFU
consequences are weak.
21

22. Figure 12.5,
conflicting perceptions of consequences.
 When making a personal income, avoiding
immediate cash costs or improving the short
term bottom line are up against future, uncertain
strategic gains, performers will most frequently
choose the short term, thus damaging the long
term.
 When consequences are managed, performance
measurement/management becomes active.
22

23. Performance Measurement/Management, The role
of leaders
 Leaders have four specific jobs to do.
Each job is done with the full
consultation of performers.
1. Define the results
2. Put boundaries on the rewards that can be used
3. Monitor the scope of the distribution of rewards
4. Monitor the effectiveness of the performance
measurement/management system
23

24. Performance Measurement/Management,
The role of leaders
 At the same time, leaders have
three jobs they should not do.
1. Don’t offer reinforcement that is not recognized
by the system
2. Don’t participate in celebrations unless you are
asked
3. Don’t abandon the system if there are glitches in
the short run.
24

25. Chapter Summary
 Good systems need good people.
 There is no sense in examining a process unless
at the same time you examine the people who
govern the process.
 A good people system involves developing a
culture that make change safe and rewarding.
25

26. Closing Remarks
 Please remember three things from this book.
1. Plan for what you want.
2. Act on the plan
3. Measure your results
 If you can and will do those three things, this
study has been a success.
26