Organizational Behavior and Management Sixth Edition lvanceyich Matteson
McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved
CHAPTER 5 Eyaluation, Feedbac水k and Reward of Individual Behavior LDESCRIBE several purposes of performance evaluation EXPLAIN why a 360-degree Feedback Program is considered more thorough DISCUSS reinforcement theory o desCribe the elements in a model of rewards o COMPARE intrinsic and extrinsic rewards UNDERSTAND the role rewards play in turnover absenteeism, performance, and commitment OIDENTIFY several innovative reward systems
McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 5 C H A P T E R Evaluation, Feedback and Reward of Individual Behavior ⚫DESCRIBE several purposes of performance evaluation. ⚫EXPLAIN why a 360-degree Feedback Program is considered more thorough. ⚫DISCUSS reinforcement theory. ⚫DESCRIBE the elements in a model of rewards. ⚫COMPARE intrinsic and extrinsic rewards. ⚫UNDERSTAND the role rewards play in turnover, absenteeism, performance, and commitment. ⚫IDENTIFY several innovative reward systems
5-3 Purposes of Evaluation Judgmental Orientation Developmental Orientation Provide a basis for reward Stimulate performance allocation Improvement Identify high-potential Develop ways of overcoming employees obstacles and performance Validate the effectiveness of barriers employee selection Identify training and procedures development opportunities Evaluate previous training Establish supervisor-employee programs agreement on performance standards MeGraw-Hillnwin Copyright o 2002 by The McGraw-Hill Companes, Inc. All rg/nts reserved
McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 5-3 Purposes of Evaluation ⚫ Provide a basis for reward allocation ⚫ Identify high-potential employees ⚫ Validate the effectiveness of employee selection procedures ⚫ Evaluate previous training programs ⚫ Stimulate performance improvement ⚫ Develop ways of overcoming obstacles and performance barriers ⚫ Identify training and development opportunities ⚫ Establish supervisor-employee agreement on performance standards Judgmental Orientation Developmental Orientation
5-4 Relevancy in Evaluations Deficiency Occurs when the evaluation does not focus on all aspects of the job Contamination Occurs when activities not part of the Job are evaluatea Distortion Occurs when an improper emphasis is given to various job elements McGramw-HillArwin Copyright@ 2002 by The McGraw-Hill Companies, Inc. All rights reserved
McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 5-4 Relevancy in Evaluations Deficiency Occurs when the evaluation does not focus on all aspects of the job Contamination Occurs when activities not part of the job are evaluated Distortion Occurs when an improper emphasis is given to various job elements
5-5 Improving the Evaluation Process Encourage higher levels Communicate results to of employee participation employees ● Set specific performance‖● Recognize and reinforce goals good performance ● Train supervisors and Realize that effective evaluate effectiveness evaluation Is an ongoing process Reinforcement Behavior is influenced by its consequences and it is possible to affect behavior by controlling such consequences Mcgraw-hillarwin Copyright o 2002 by The McGraw-Hill Companies, Inc. All rights reserved
McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 5-5 ⚫ Encourage higher levels of employee participation ⚫ Set specific performance goals ⚫ Train supervisors and evaluate effectiveness Improving the Evaluation Process ⚫ Communicate results to employees ⚫ Recognize and reinforce good performance ⚫ Realize that effective evaluation is an ongoing process Reinforcement Behavior is influenced by its consequences and it is possible to affect behavior by controlling such consequences
5-6 Improving Evaluation Feedback GUDELINES Provide frequent feedback beyond the typical one year formal review .Allow employee participation in the feedback sessions o Focus on both effective and ineffective performance o Address results. goals. and goals accomplished; not personalities Mcgraw-hillarwin Copyright @2002 by The McGraw-Hill Companies, Inc. All rights reserved
McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 5-6 GUIDELINES ⚫ Provide frequent feedback beyond the typical one year formal review ⚫ Allow employee participation in the feedback sessions ⚫ Focus on both effective and ineffective performance ⚫ Address results, goals, and goals accomplished; not personalities Improving Evaluation Feedback
5-7 Multisource Feedback 360-Degree Approach o Alternative to traditional Supervisors supervisor-only, or top down approaches o Uses multiple appraisers Self. PEers appraisal of work performance ● Still needs to be more thoroughly researched Subordinates Mcgraw-hillarwin Copyright @2002 by The McGraw-Hill Companies, Inc. All rights reserved
McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 5-7 Multisource Feedback ⚫ Alternative to traditional supervisor-only, or topdown approaches ⚫ Uses multiple appraisers of work performance ⚫ Still needs to be more thoroughly researched 360-Degree Approach Subordinates Peers Supervisors Selfappraisal
5-8 Reinforcement Theory Operant Conditioning Attempts to influence behavior through the use of rewards and punishments that are consequences of behavior o Reinforcers ● Punishment Positive-stimulus that o Presenting an strengthens the probability uncomfortable or of a behavioral response unwanted consequence Negative- increases the ● Extinction frequency of a response Withholding po oSitive following removal of a reinforcement for a negative reinforcer learned behavior Mcgraw-hillarwin Copyright @2002 by The McGraw-Hill Companies, Inc. All rights reserved
McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 5-8 Reinforcement Theory ⚫ Punishment ⚫ Presenting an uncomfortable or unwanted consequence ⚫ Extinction ⚫ Withholding positive reinforcement for a learned behavior Operant Conditioning Attempts to influence behavior through the use of rewards and punishments that are consequences of behavior ⚫ Reinforcers ⚫ Positive - stimulus that strengthens the probability of a behavioral response ⚫ Negative - increases the frequency of a response following removal of a negative reinforcer
5-9 Reinforcement Schedules Continuous Reinforcement o Response is reinforced each time it occurs Use faces practical constraints in the workplace Intermittent Reinforcement e Response is reinforced only after some instances of a response Constitutes almost all workplace reinforcement m Passage of Time Number of Desired Responses Fixed interval Fixed ratio Variable interval Variable ratio Mcgraw-hillarwin Copyright@ 2002 by The McGraw-Hill Companies, Inc. All rights reserved
McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 5-9 Reinforcement Schedules Continuous Reinforcement ⚫ Response is reinforced each time it occurs ⚫ Use faces practical constraints in the workplace Intermittent Reinforcement ⚫ Response is reinforced only after some instances of a response ⚫ Constitutes almost all workplace reinforcement Passage of Time Fixed interval Variable Interval Number of Desired Responses Fixed ratio Variable ratio
Individual Rewards Main Objectives ofReward programs .To attract qualified people to join the organization To keep employees coming to work o To motivate employees to achieve high levels of performance Mcgraw-hillarwin Copyright @2002 by The McGraw-Hill Companies, Inc. All rights reserved
McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 5-10 Individual Rewards Main Objectives of Reward Programs ⚫To attract qualified people to join the organization ⚫To keep employees coming to work ⚫To motivate employees to achieve high levels of performance