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MGMT 371 Chapter 8 : Improving Job Performance with Feedback, Extrinsic Rewards, and Positive Reinforcement I. Feedback I. Feedback II. Extrinsic Rewards II. Extrinsic Rewards III. Positive III. Positive Reinforcement Reinforcement

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I. Feedback C. Recipients 1. Characteristics 2. Perceptions

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Page 1: MGMT 371 Chapter 8: Improving Job Performance with Feedback, Extrinsic Rewards, and Positive Reinforcement I. Feedback I. Feedback II. Extrinsic Rewards

MGMT 371Chapter 8: Improving Job Performance with Feedback, Extrinsic Rewards, and Positive Reinforcement

I. FeedbackI. Feedback II. Extrinsic RewardsII. Extrinsic RewardsIII. Positive ReinforcementIII. Positive Reinforcement

Page 2: MGMT 371 Chapter 8: Improving Job Performance with Feedback, Extrinsic Rewards, and Positive Reinforcement I. Feedback I. Feedback II. Extrinsic Rewards

I. FEEDBACK

Feedback: Feedback: Objective information about Objective information about performance.performance.

Functions of feedback:Functions of feedback: Instructional Instructional MotivationalMotivational

Three Sources of feedback:Three Sources of feedback: OthersOthers TaskTask OneselfOneself

McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Page 3: MGMT 371 Chapter 8: Improving Job Performance with Feedback, Extrinsic Rewards, and Positive Reinforcement I. Feedback I. Feedback II. Extrinsic Rewards

I. Feedback

C. RecipientsC. Recipients1. Characteristics1. Characteristics2. Perceptions2. Perceptions

Page 4: MGMT 371 Chapter 8: Improving Job Performance with Feedback, Extrinsic Rewards, and Positive Reinforcement I. Feedback I. Feedback II. Extrinsic Rewards

I. Feedback

D. Behavioral OutcomesD. Behavioral Outcomes1. Direction1. Direction2. Effort2. Effort3. Persistence3. Persistence4. Resistance4. Resistance

Page 5: MGMT 371 Chapter 8: Improving Job Performance with Feedback, Extrinsic Rewards, and Positive Reinforcement I. Feedback I. Feedback II. Extrinsic Rewards

Bolstering the Job Performance CycleWith Feedback, Rewards and Reinforcement

McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Results• Learning• Personal development• Stable, strong job performance

Properly administeredrewards and

positive reinforcement

Timely and instructivefeedback

EffortAbility

Page 6: MGMT 371 Chapter 8: Improving Job Performance with Feedback, Extrinsic Rewards, and Positive Reinforcement I. Feedback I. Feedback II. Extrinsic Rewards

I. Feedback

E. NontraditionalE. Nontraditional 1. Upward1. Upward2. 360 Degree2. 360 Degree

Page 7: MGMT 371 Chapter 8: Improving Job Performance with Feedback, Extrinsic Rewards, and Positive Reinforcement I. Feedback I. Feedback II. Extrinsic Rewards

1.1. Traditional performance appraisal systems Traditional performance appraisal systems have created widespread dissatisfaction.have created widespread dissatisfaction.

2.2. Team-based organization structures are Team-based organization structures are replacing traditional hierarchies.replacing traditional hierarchies.

3.3. Multiple-rater systems are said to make Multiple-rater systems are said to make feedback more valid than single-source feedback more valid than single-source feedback.feedback.

McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Popularity of Nontraditional Feedback

Page 8: MGMT 371 Chapter 8: Improving Job Performance with Feedback, Extrinsic Rewards, and Positive Reinforcement I. Feedback I. Feedback II. Extrinsic Rewards

Popularity of Nontraditional Feedback

4. Advanced computer network technology 4. Advanced computer network technology (the Internet and company Intranets) (the Internet and company Intranets) greatly facilitates multiple-rater systems.greatly facilitates multiple-rater systems.

5. Co-workers and lower-level employees are said 5. Co-workers and lower-level employees are said to know more about a manager’s strengths and to know more about a manager’s strengths and limitations than the boss.limitations than the boss.

6. Bottom-up feedback meshes nicely with the 6. Bottom-up feedback meshes nicely with the trend toward participative management and trend toward participative management and employee empowerment.employee empowerment.

Page 9: MGMT 371 Chapter 8: Improving Job Performance with Feedback, Extrinsic Rewards, and Positive Reinforcement I. Feedback I. Feedback II. Extrinsic Rewards

McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Skills & Best Practices: Effectively Giving Feedback

Tie feedback to existing performance goals and Tie feedback to existing performance goals and clear clear expectations.expectations.

Give Give specific specific feedback.feedback. Provide feedback focused Provide feedback focused key result areas.key result areas. Give feedback Give feedback ASAPASAP.. Give positive feedback for Give positive feedback for improvementimprovement, not just , not just

final results.final results. Focus feedback on Focus feedback on performanceperformance, not personalities., not personalities. Base feedback on Base feedback on accurateaccurate and and credible credible

information.information.

Page 10: MGMT 371 Chapter 8: Improving Job Performance with Feedback, Extrinsic Rewards, and Positive Reinforcement I. Feedback I. Feedback II. Extrinsic Rewards

II. Extrinsic Rewards

A. Org. Reward NormsA. Org. Reward NormsB. Reward DistributionB. Reward DistributionC. Pay for PerformanceC. Pay for PerformanceD. Team BasedD. Team Based

Page 11: MGMT 371 Chapter 8: Improving Job Performance with Feedback, Extrinsic Rewards, and Positive Reinforcement I. Feedback I. Feedback II. Extrinsic Rewards

Organization Reward Norms

Profit MaximizationProfit Maximization Pay least wages for max effort (org)Pay least wages for max effort (org) Max rewards (employee)Max rewards (employee)

Reward EquityReward Equity Reward EqualityReward Equality NeedNeed

Page 12: MGMT 371 Chapter 8: Improving Job Performance with Feedback, Extrinsic Rewards, and Positive Reinforcement I. Feedback I. Feedback II. Extrinsic Rewards

McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Rewards Fail to Motivate When…

1.1. Too much emphasis on moneyToo much emphasis on money2.2. Benefits become entitlementsBenefits become entitlements3.3. Wrong behaviors are rewardedWrong behaviors are rewarded4.4. Performance and rewards aren’t linkedPerformance and rewards aren’t linked5.5. Rewards aren’t valued or varied Rewards aren’t valued or varied 6.6. Use of one-shot rewards with a brief Use of one-shot rewards with a brief

motivational impactmotivational impact7.7. Using demotivating practices such as Using demotivating practices such as

layoffs, punitive mgmt practices, excessive layoffs, punitive mgmt practices, excessive exec pay, etc.exec pay, etc.

Page 13: MGMT 371 Chapter 8: Improving Job Performance with Feedback, Extrinsic Rewards, and Positive Reinforcement I. Feedback I. Feedback II. Extrinsic Rewards

III. Positive Reinforcement

A. Thorndike’s Law of EffectA. Thorndike’s Law of EffectB. Skinner’s Operant B. Skinner’s Operant

ConditioningConditioning

Page 14: MGMT 371 Chapter 8: Improving Job Performance with Feedback, Extrinsic Rewards, and Positive Reinforcement I. Feedback I. Feedback II. Extrinsic Rewards

III. Positive Reinforcement

C. Contingent ConsequencesC. Contingent Consequences1. Positive Reinforcement1. Positive Reinforcement2. Negative Reinforcement2. Negative Reinforcement3. Punishment3. Punishment4. Extinction4. Extinction

Page 15: MGMT 371 Chapter 8: Improving Job Performance with Feedback, Extrinsic Rewards, and Positive Reinforcement I. Feedback I. Feedback II. Extrinsic Rewards

III. Positive Reinforcement

D. Reinforcement SchedulesD. Reinforcement Schedules1. Continuous1. Continuous2. Intermittent2. Intermittent a. Fixed ratioa. Fixed ratio b. Variable ratiob. Variable ratio c. Fixed intervalc. Fixed interval d. Variable intervald. Variable interval

E. Behavior ShapingE. Behavior Shaping