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Chapter 7. Evaluation, Feedback, and Rewards. Rewards. Organizations use rewards to Attract and Retain employees, and to Motivate them to achieve personal and organizational goals. Rewards. Rewards may be: 1. Universal /Across the Board
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Chapter 7 Evaluation, Feedback, and Rewards
Rewards • Organizations use rewards to Attract and Retain employees, and to Motivate them to achieve personal and organizational goals.
Rewards • Rewards may be: 1. Universal/Across the Board 2. Based on Seniority or Tenure 3. Based on Job Performance • To equitably distribute rewards, it is necessary to evaluate employee performance.
Purposes of Evaluation: Judgmental • Focuses on Past Performance • What are the possible purposes for Judgmental evaluations?
Purposes of Evaluation: Developmental • Focuses on improving Future Performance • What are the possible purposes for Developmental evaluations?
Global OB (p. 181) What are some Cultural Differencesin Performance Evaluation? • Purpose? • Who Conducts? • Feedback?
Relevancy of Evaluations Describe these evaluation Relevancy Problems: • Deficiency • Contamination • Distortion
Forced Ranking • Discussed in Case 5.1 • What are the Pros and Cons of “Forced Ranking?”
Improving Evaluations • Employee Participation • Specific Performance Goals • Supervisor Training • Communicate Results • Reinforce Good Performance & ID Problems • Continuous Process, NOT Annual Event!
Performance Evaluation Feedback • In what areas do employees need feedback? • Why is delivering feedback to apoor performer such a difficult experience for most managers?
Purpose of Evaluation Feedback Instructional Motivational
360-Degree Feedback • What is 360-Degree Feedback? • What are potential Benefits? • Potential Drawbacks? • Who may serve as an Evaluator?
360-Degree Feedback Programs • For what purpose(s) would you use 360-degree feedback? • For what purpose is 360-degree least appropriate?
Reinforcement Theory Employee Learning: • Desirable (Reinforcing) Consequencesincrease the strength of a behavior and increase theprobabilityof beingrepeated. • Undesirable (Punishment) Consequencesdecrease the strength of a response and decreaseitsprobabilityof being repeated.
Reinforcement Theory: Operant Conditioning • Operant Conditioning – attempts to influence __________ through the use of _______and________. • Operants – behaviors that can be controlled by changing consequences that follow. • Most workplace behaviors are “operants.”
Extinction • Extinction occurs when Positive ReinforcementisWithdrawn(IV on the previous diagram), and behavior decreases and eventually stops as a result. • Example?
Rewards, Reinforcement, and Punishment Punishment (behavior decreases) Positive Reinforcement (behavior increases) Positive Reinforcement (behavior decreases) Negative Reinforcement (behavior increases) III I Applied IV II Withdrawn Undesirable Behavior Desirable Behavior
Operant Conditioning: Key Principles Reinforcement Punishment Extinction
Reinforcement Schedules • _______Reinforcementleads toFaster Learning. • __________Reinforcementleads to morePermanent Learning.
Management Pointer (p. 189) Praise is a Powerful Reward • What are important points for effectively praising others? • Does your manager use praise effectively?
Individual Rewards The main objectives of reward programs are: • to Attract qualified people to join the organization • to Retain (keep) those employees • to Motivateemployees to achieve high levels of performance Attract, Retain, Motivate!
The Reward Process Ability and skill Intrinsic rewards Performance results: Individual Motivation to exert effort Performance evaluation Satisfaction Extrinsic rewards Experience Feedback
Lawler’s Conclusions on Satisfaction and Rewards (1 of 3) • Satisfaction with a reward is a function both of how muchis received and how much the individual feels should be received.
Lawler’s Conclusions on Satisfaction and Rewards (2 of 3) • An individual’s feelings of satisfaction are influenced by comparisons with what happens to others. • Satisfaction is influenced by both intrinsic and extrinsic rewards.
Lawler’s Conclusions on Satisfaction and Rewards (3 of 3) • People differin therewardstheydesire and in how important different rewards are to them. • Some extrinsic rewards (such as Money) are satisfying because they lead to other rewards.
Management Considerations for Developing and Distributing Rewards • Available rewards must be sufficient to satisfy basic human needs. • Individuals tend to compare their rewards with those of others. • The reward distribution process should be perceivedasfair. • Reward distribution must recognize individual differences.
Extrinsic reward – initiated from outside the person Examples? Intrinsic reward – one that is self-administered Examples? Intrinsic and Extrinsic Rewards
Organizational Encounter (p. 192) Cutting Pay to Save Jobs • What approaches can be taken in cutting pay to avoid employee layoffs?
You Be the Judge (p. 194) Reward Preferences • What are your Top 5 Reward preferences? • Do you think your work colleagues have the same reward priorities? • Does your Manager share your reward preferences?
Rewards Impact Organizational Concerns Key organizational concerns influenced by rewards: • Turnover • Absenteeism • Performance • Commitment
Organizational Encounter (p. 196) Equitable Pay Treatment? • What is Equal Pay? • What is Comparable Worth? • Why do you think Women earn significantly less than their male colleagues?
Skill-based pay Broadbanding Team-based rewards Concierge services Part-time Benefits Gainsharing Employee stock ownership plans Innovative Reward Systems
Management Pointer (p. 201) Team-Based Rewards • As organizations move from individual work to team work, what are important considerations regarding the Reward System? • Do you see this at your organization?
Line of Sight: The Key Issue (1 of 2) • What is Line of Sight ? • How should Line of Sight impact the extrinsicreward systemsof organizations?
Line of Sight: The Key Issue (2 of 2) • Organizations can also influence intrinsic rewards by: • providing jobs that are challenging • providing clear feedback on job performance
Case 7.1 – The Politics of Performance Appraisal (pp. 211-214) 1. Based on your views about the Objectives of performance evaluation, evaluate the perspectives presented by these managers.
Case 7.1 – The Politics of Performance Appraisal 2. In your opinion, at what point does “fine tuning” evaluations become unacceptable distortion?
Case 7.1 – The Politics of Performance Appraisal 3. Assume you are the VP of HR at this company, and are aware of the “fine tuning” of evaluations. If you disagree with this practice, what steps would you take?