ch06 - reward and appraisal.ppt

7/24/2019 ch06 - Reward and Appraisal.ppt

1/48

McGraw-Hill/Irwin 2002 The McGraw-Hill Companies, Inc., All 6-1

Chapter 6Appraising

and Rewarding

Performance


2/48


EVOLUTION OF ECONOMY

The Industrial Revolution

Most important event in thehistory of humanity since thedomestication of animals andplants.

Happened between the 18th-1thcentury!

Ma"or chan#es in

a#riculture$ manufacturin#$minin#$ transport$ andtechnolo#y

%rofound e&ect on the

socioeconomic and culturalconditions


3/48



'lobali(ation

%rocess of internationalinte#ration

Interchan#e of world views$

products$ ideas$ and cultures)dvances in transportationand telecommunicationsinfrastructure * internet

Me#a factories +the world isyour mar,et


4/48



10 COUNTRIES OF THE ASEAN ECONOMIC COMMUNITY


5/48



2015 ASEAN Economic Integ!tion " #i$e!%i&e T!'e

T(e ASEAN #e!'e) !t

t(ei S*mmit in +*!%!

#*m,* in ecem$e 1../

'eci'e' to t!n)om

ASEAN into ! )t!$%e,o),eo*) !n' (ig(%

com,etitie egion it(

e*it!$%e economic

'ee%o,ment !n' e'*ce',oet !n' )ocio-

economic 'i),!itie)

ASEAN 7i)ion 202089


6/48




A'!nt!ge Fo T(e :(i%i,,ine);

T(e integ!tion i%% ce!te ! )ing%e m!


7/48McGraw-Hill/Irwin 2002 The McGraw-Hill Companies, Inc., All 6-/



T(e C(!%%enge) Fo T(e :(i%i,,ine);

i) ! )m!%% economit) citi&en) (!e ! %o !!ene)) !$o*t t(e integ!tion initi!tieit (!) %imite' ,o'*ct) " 1/? )(!e in it) e>,ot)

(!) )m!%% ine)to $!)e@*)ine))e) !e not e!' o t(e com,etition


8/48McGraw-Hill/Irwin 2002 The McGraw-Hill Companies, Inc., All 6-

MONEY IS NOT THE ONLY MEANS OF

REWARDING EMPLOYEES


9/48McGraw-Hill/Irwin 2002 The McGraw-Hill Companies, Inc., All 6-.

MONEY AS A MEANS OF REWARDING EMPLOYEES

*ing t(e 20t(cent* em,%oee) ee ,e)*me' to !nt

,im!i% mone t(eeoe mone !) $e%iee' to,o'*ce 'iect moti!tion9

Re)e!c( )*cce))*%% ,oe' t(!t economic e!')

o,e!te' t(o*g( t(e !ttit*'e) o o


10/48McGraw-Hill/Irwin 2002 The McGraw-Hill Companies, Inc., All 6-10

A COMPLETE PROGRAM

Figure 6-1

The rewr!

"#r$i!:

The $%eu"&'

(&$")e*e

"# "r&gr$

+re! 'r&$ ,&**&$



ie)

Nee')

E>,ect!nc

@e(!io Mo'iic!tion

E*it

APPLICATION OF THE MOTIVATION MODELS IN REWARDS



B Application of the Motivational Models

DrivesAchievement Motivation

Re!' S)tem;

BEm,%oee) ,! i) !

me!)*e o t(ei

!ccom,%i)(ment9

BMone !%)o e%!te) to

ot(e 'ie) e>,en)ie

mem$e)(i, c%*$) g!n'

!c!tion) %*>*io*)%ie)t%e8

Affiliation Motivation

Power Motivation




Needs Theory:

B:im! nee')

Maslow, Herzberg, Alderfer Models

@!)ic %ee% nee'); ,oi'ing

em,%oee) it( ! goo' )t!n'!' o

%iing t(o*g( 'ecent ,!

)t*ct*e)9Sec*it nee'); ,oi'ing

em,%oee) it( ! )!e o


14/48


In o'e to en(!nce t(e connection $eteen ,eom!nce !n'

o*tcome) m!n!ge) )(o*%' *)e systems that tie rewards very

closely to performance9

M!n!ge) !%)o nee' to en)*e t(!t t(e e!') ,oi'e' !e

'e)ee' !n' !nte' $ t(e eci,ient)9

APPLICATION OF THE MOTIVATION IN REWARDS

Emotion!% 7!%*e


15/48


M&!i'# E$")ee. /eh0i&r

Org2i3*i&2) /eh0i&r M&!i'i(*i&2 re)ie. he0i)#

&2 *he Law of Effect4" A ,e)on tends to repeat$e(!io t(!t i) !ccom,!nie' $

favorable consequences (einocement).

" A ,e)on ten') not to repeat$e(!io t(!t i)

!ccom,!nie' $ unfavorable consequences(,*ni)(ment).


16/48


/eh0i&r M&!i'i(*i&25 Lw &' E''e(*

S*$ect A S*$ect @

To )*$ect) i%% com,%ete ! ,*&&%e t(e i%% $e time' on (o %ong it

t!


17/48

McGraw-Hill/Irwin 2002 The McGraw-Hill Companies, Inc., All 6-1/

/eh0i&r M&!i'i(*i&25 Lw &' E''e(*

S*$ect A S*$ect @

To Conclude. . .

Re)*%t) !gee it( t(e #! o Eect (ic( )t!te) t(!t gien ! einocement

in t(i) c!)e ! e!' C(i,) !n' Coo


18/48


/eh0i&r M&!i'i(*i&25 Lw &' E''e(*

M2ger. .h&u)! ,e ,)e *& i!e2*i'# powerful consequences

+. "er(ei0e! ,# e$")ee. 2! ,e ,)e *& control andadminister *he.e *h* e$")ee. .h&u)! ,e ,)e *& see the

connection ,e*wee2 *he ,eh0i&r Through conditioning 2 i2!i0i!u) $%e. 2 association

,e*wee2 "r*i(u)r ,eh0i&r 2! (&2.e7ue2(e4


19/48

McGraw-Hill/Irwin 2002 The McGraw-Hill Companies, Inc., All 6-1.

Equity

Em,%oee) *'ge

!ine)) $com,!ing t(e

o*tcome) e!')8

t(e eceie it(

t(ei e%e!nt in,*t)

Conti$*tion)8 !n'

!g!in)t t(e !tio o

ot(e em,%oee)9

eward Equity


!ob Comparisons" In'ii'*!%) mo)t oten com,!e

t(em)e%e) to ot(e ,eo,%e occ*,ing t(e )!me o$ in t(e)!me com,!n9 E>!m,%e; N*)e !t Emegenc Unit !t

M!

Company Comparisons" Em,%oee) com,!e t(em)e%e)

to ,eo,%e in ot(e o$) in t(e )!me og!ni&!tion9 E>!m,%e;

t(e O'e%ie) com,!ing t(em)e%e) to :(!m!ci)t) !n'

N*)e) !t t(e )!me (o),it!%9 =(en t(e com,!i)on ie%') !

$!%!nce t(e e)*%t i) Company Equity.

#ar$et Comparisons" =(en e %oo< !t t(e ,! e!ne'

$ ot(e) 'oing t(e )!me o$ !) *) in ot(e com,!nie) e!e m!


20/48


/eh0i&r M&!i'i(*i&25 Lw &' E''e(*

REAR!" A" RE#$%&R'EME$T"

U.u))# 'i22(i)8re *he *2gi,)e rewr!. gi0e2 *& e$")ee.5 "# ri.e.,&2u.e. 2! ,e2e'i*.4 (E)trinsic Rewards*

" U)e o om!% e!' ))tem

P.#(h&)&gi() rewr!. *h* e$")ee. ge* 'r&$ !&i2g $e2i2g'u) w&r% 2!

"er'&r$i2g i* we))4(#ntrinsic Rewards*

" !-to-'! moti!tion i) moe )tong% 'ien $ intin)ic

e!')9


21/48


N&2$&2e*r# Rewr!. Pr&gr$

&ormal ewards

Em,%oee o te!m o t(e mont( o

*!te o t(e e!8 #engt(-o-)eice !!')

e9g9 Annie)!8 Em,%oee conte)t) Com,!n I'o%8 :%!*e o cetiic!tion o !,,eci!tion Dit Cetiic!te

O,,ot*nit to !tten' !n in'*)tconeence E>,o)*e i)it to ! )imi%! og!ni&!tion

in ! 'ieent egion S,eci!% eent it( )enio %e!'e)(i,

e9g9 #*nc( o 'inne it( t(e ,e)i'ent

o t(e com,!n8

'nformal ewards

7e$!% com,%iment o t(!n< o* A itten note o !,,eci!tion :o)t ! %!ge Gce%e$!tion c!%en'!

in t(e $!nc( oice !n' t!c< on

note) o ecognition) o !c(ieement)

Ho)t ! %*nc( (ee t(e m!n!ge)

coo< !n' )ee oo'

Ree $ n!me to t(e em,%oee (om!'e ! goo' )*gge)tion o i'e! A!' ),eci!% ,oect) t(!t )(o t*)t

!n' coni'ence in t(e em,%oee) )


22/48


B Com,%i!nce it( t(e #! B

Under the Labor Code, yor employees are entitled to

compensation or wages, overtime pay, holiday and

premim pay, service charges and tips in service

bsinesses, !!!, Philhealth, Pag"ibig, service incentive

leaves, and retirement pay#

#in


23/48


B M!n!gement $ o$ectie) M@O8

BO$ectie Setting

BAction :%!nning

B:eio'ic Reie)BAnn*!% E!%*!tion

Process of defining,

assessing, and reinforcing

employee wor$ behaviorsand otcomes

%ccrs in a large

organi&ational conte't



24/48


ORGANI9ATIONAL /EHAVIOR AND

PERFORMANCE APPRAISAL


25/48


ORGANI9ATIONAL /EHAVIOR AND PERFORMANCE APPRAISAL

B :eom!nce A,,!i)!%

T(e ,oce)) $ (ic( ! m!n!ge o con)*%t!nt

eamines!n' evaluates!n em,%oee) oten)ie

ee'$!cten!% C*)tome) $*e)8HR Re,ot) E!%*!to)8

*+, &eedbac$ as a Development Toolto help employees reconie strenths

and wea$nesses and become more

effective


27/48



#in< to Jo$

S!ti)!ction

!n' Jo$

Conte>t

:oi'e ! met(o' to e!' em,%oee) on !

meit $!)i) @!)e' on oe!%% $*'getcon)i'e!tion)89

#erit atin /ystem


28/48


M*t*!% go!%

)etting $eteen

m!n!gement

!n' em,%oee)

Foc*) on go!%)

Im,oe ,o'*ctiit !n' t(e ,eom!nce

o t(e com,!n9

Reinoce og!ni&!tion) mi))ion !%*e

!n' c*%t*e9

0alanced /corecard /ystem

#anaement by 1al$in 2round

(#012) (3emba) Daily meetins on

tarets and ob4ectives


TALENT MANAGEMENT


29/48


TALENT MANAGEMENT


30/48


:ERFORMANCE FACTORS :!!mete)8

:eom!nce F!cto) e,e)ent !e!) o in'ii'*!% ,eom!nce t(!t

!e e))enti!% to )*cce)) in t(e ,o)ition !n' to t(e )*cce)) o t(e

og!ni&!tion9

There are seven performance factors :

B Comm*nic!tion

B C*)tome Seice inten!% !n' e>ten!% c*)tome)8

B Coo,e!tionTe!mo,ect!tion)9

To ,oi'e !n openin to discuss areas o nee'e'

im,oement !n' e)o*ce) !!i%!$%e o im,oing t(o)e

!e!)9

To ,oi'e m!n!ge) it( in)ig(t eg!'ing t(ing) affectinemployee6s wor$ environment conti$*tion) t(e em,%oee

ee%) )(e(e (!) m!'e !n' em,%oee) )*gge)tion) o c(!nge)

!n' im,oement)9

(tt,;9*m


34/48


B 2ppraisal -roblems

Make performance appraisals into a one-waylecture

manager tells an employee aboutproblems with their work or a failure in

their performance, employees tend tonot hear anything else the managerhas to say.

Best Approach: Two-way discussionand focus on the employee assessinghis or her own performance andsetting his or her own goals forimprovement.



35/48


B 2ppraisal -roblems

Performance appraisals are usually connected with theamount of pay raise an employee will receive.

Improving performance will not happen if theoutcome is the employees income.

Raises should be based on a wide range of factors,o'*ctiit *!%it o o


36/48


Li2%i2g P# Wi*h Per'&r$2(e

Economic Incentie S)tem

B:oit S(!ing )ome ,otion o $*)ine)) ,oit )(!e'8

BD!in S(!ing :o'*ction g!in )(!ing8

BS


37/48



Se%-Seing @i!)

BC%!iming *n'*e ce'it o t(ei )*cce)) o og!ni&!tion)

)*cce))

B=(en !i%*e occ*) minimi&ing t(ei on e),on)i$i%it o

,o$%em) ,e)on!% t!it)8


38/48





39/48



The &ects of %erformance )ppraisal on /r#ani(ational

rformance

Identifyin# )reas of 0tren#ths and wea,nesses

0tandardi(ed performance across other areas of theor#ani(ation.

Identifyin# Trainin# eeds

%rovides indication of where additional trainin# anddevelopment may be necessary

2eadership 3evelopment and 0uccession %lannin#

provide an indication of employees with leadershippotential or leadership development needs.

ECONOMIC INCENTIVE SYSTEMS


40/48



A!02*ge. 2! !i.!02*ge. &' i2(e2*i0e. )i2%i2g "# wi*h

"er'&r$2(e

Disadvantaes

Contention amon Employees

A o


41/48




"er'&r$2(e

Disadvantaes

esistance to Chanes

=o,eience ! 'ece!)e in ,o'*ction $ec!*)e o !

%!c< o moti!tion om )ome em,%oee)9 M!n!ge) c!n e'*ce

em,%oee) e)i)t!nce to c(!nge) $ ,oi'ing !'e*!te t!ining

!n' e>,%!ining t(e $eneit) o t(e c(!nge)9



42/48




"er'&r$2(e

2dvantaes

7ess /upervision

Com,!nie) e>,eience ! 'ece!)e in t(e nee' o em,%oee

)*,ei)ion9 Em,%oee) )(o initi!tie $ec!*)e t(e !m,%e i !n em,%oe ,!) em,%oee)

commi))ion-on% )!%!ie) !n em,%oee) e!ning) !e )o%e%

'e,en'ent *,on (i) )*cce))9



43/48




"er'&r$2(e

2dvantaes

'ncrease in etention

Em,%oee) (o ,o))e)) t(e !$i%it to e!n $on*)e) $!)e' on

,eom!nce) *)*!%% (!e (ig( mo!%e $ec!*)e t(e ee% !) t(o*g(t(e com,!n i) e!'ing t(ei eot)9 An em,%oee i) not %it! income9

CONNECT REWARDS WITH GOALS


44/48


CONNECT REWARDS WITH GOALS

Te%%ing )omeone to Lt (!'L o L'o o* $e)tL i)

%e)) eectie t(!n )!ing Lt to get moe t(!n 0

,ecent coectL o Lconcent!te on $e!ting o*$e)t time9L #i


45/48



H&w I2!i0i!u) )i2% *& Org2i3*i&2) Vi.i&2 2! :PI.

+e :eom!nce In'ic!to)

Citic!% S*cce)) F!cto)

Actiitie) :og!m)


46/48


G&) Se**i2g ; Se)' E''i((#

Se)'-e''i((# re'er. *& 2 i2!i0i!u)


47/48


G&) Se**i2g ; Se)' E''i((#


48/48

K*e)tion)

ch06 - reward and appraisal.ppt

Documents