Chapter 9 – Performance Improvement

BUSA 220Wallace Spring 2012

1. Have you had a performance review with your manager?

2. Have you ever led a performance management review with an employee?

3. Do you look forward to performance evaluation meetings with your boss?

4. What would your ideal performance review look like?

What’s Your Experience?

• Continuous cycle of improving job performance with goal setting, feedback and coaching, rewards and positive reinforcement.– Factors that contribute to

employee success include knowledge, skills, ability, (KSA’s) organizational resources, motivation, and culture.

Continuous Performance Improvement

Graphic Source: www.hrutilities.com

Continuous Performance Improvement

Source: Krietner/Kinicki, 2009

• Setting goals that are only performance based is often a mistake managers or leaders make. Developmental goals that increase skills, creativity and knowledge should improve performance goals as an outcome of self and team improvements.

Goals: Performance and Learning

Organizational Learning Culture

Source: Bersin & Associates

Organizational Learning Culture

Source: Bersin & Associates

Organizational Learning Culture

Source: Bersin & Associates

Organizational Learning Culture

Source: Bersin & Associates

Organizational Learning Culture

Graphic source: www.softsia.com

• Knowledge of the organization’s strategic goals and how we need to contribute– According to research by

Franklin Covey, 56% of American workers don’t understand their organizations’ most important goals.

– 81% don’t have clearly defined goals.

Line of Sight

SMART Goals – Blanchard & Johnson

Source: Krietner/Kinicki, 2009

SMART Goals – Blanchard & Johnson

Source: Penn State Psych 484

1. Set Goals - What do you base the goals on? How do you know what is appropriate?

2. Promote Goal Commitment - Under what conditions will an employee be motivated to pursue a goal?

3. Provide Support and Feedback - How will the employee reach the goal? What resources will be necessary?

Peter Drucker - MBO

Source: Mind Tools

• When employees receive feedback about their performance, it should be either instructional or motivational (not negative). – Instructional feedback

serves to clarify roles or teach new behavior.

– Motivational feedback serves as a reward or a promise of a reward.

Feedback

1. Feedback is used to punish, embarrass, or put down employees

2. Those receiving the feedback see it as irrelevant to their work.

3. Feedback information is provided too late to do any good.

4. People receiving feedback believe it relates to matters beyond their control.

5. Employees complain about wasting too much time collecting and recording feedback data.

6. Feedback recipients complain about feedback being too complex or difficult to understand.

Organizational Feedback Trouble

• A comparison of anonymous feedback from one’s superior, subordinates, peers, vendors and customers with self-perceptions.– Multifactor Leadership

Questionnaire (MLQ)– Servant Leadership

Questionnaire (SLQ)– Leadership Practices

Inventory (LPI)

360 Degree Feedback

Graphic Source: Skills2Lead

Organizational Learning Culture

Source: Bersin & Associates

• Performance, not personalities

• Specific to observable behavior or measurable results

• Channel toward key result areas

• Timely – as soon as possible

• Give positive feedback for improvement, not just final results

• Base on accurate & credible information

• Pair with clear expectations for improvement.

Effective Feedback

Organizational Reward Model

• Financial/material(extrinsic)

• Social (extrinsic)• Psychic (intrinsic)

Types of Rewards

• Attract• Motivate• Develop• Satisfy• Retain

Desired Outcomes

• Results• Behavior• Other factors

Distribution Criteria

Source: Krietner/Kinicki, 2009

• Intrinsic

– Self granted, Psychic

– Autonomy

– Mastery

– Purpose

• Extrinsic

– Financial, Material, Social

Rewards Comparison

Graphic Source: Journal of Knowledge Management Practice, Vol. 10, No. 1, March 2009

Intrinsic vs. Extrinsic

Graphic Source: P2PFoundation

Intrinsic Motivation Model

Sense of

Progress

Sense of

Meaningfulness

Sense of

Competence

Sense of

Choice

Opportunity Rewards

Accomplishment Rewards

FromTask

Activities

FromTask

Purpose

Source: Krietner/Kinicki, 2009

• Too much emphasis on monetary rewards• No “appreciation effect”• Extensive benefits become entitlements• Counterproductive behavior is rewarded• Delay between performance and rewards• Too many one-size-fits-all rewards• Use of one-shot rewards have a short-lived

motivational impact• Demotivating practices such as layoffs,

across-the-board raises and cuts, and excessive executive compensation

Failure of Extrinsic Rewards

Incentive Pay Plans

Source: Krietner/Kinicki, 2009

• Integrate Pay for Performance • Base incentive determinations

on objective performance data.• Engage employees in the

development, implementation, and revision of the performance-pay formulas.• Encourage two-way

communication for early detection of pay-for-performance issues.

Maximizing Extrinsic Rewards

• Use participative suggestion systems or problem-solving teams

• Reward cooperation/teamwork• Engage managers to avoid fear of

employee involvement• Pay annual bonuses in a lump

sum to maximize motivational impact

• Selectively use creative noncash rewards to create buzz and excitement

Maximizing Extrinsic Rewards

• Behavior with favorable consequences is repeated, behavior with unfavorable consequences disappears.

• I work really hard and am not rewarded. The law of effect would suggest that I will

a. Quitb. Keep trying to impress the

right people

The Law of Effect

• Behavior with favorable consequences is repeated, behavior with unfavorable consequences disappears.

• I work really hard and am not rewarded. The law of effect would suggest that I will

a. Quitb. Keep trying to impress the

right people

The Law of Effect

Contingent Consequence Conditioning

Punishment

Negative Reinforcement

Punishment (Response Cost)

Positive Reinforcement

(no contingent consequence)Extinction

ContingentWithdrawal

ContingentPresentation

Positive or Pleasing Negative or Displeasing

Nature of Consequences

Beh

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onse

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Rel

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ip

Source: Krietner/Kinicki, 2009

• Martin’s boss tells him “the next time you come to work late, I’m going to dock your pay”. This best represents:a. Positive reinforcement

b. Negative reinforcement

c. Punishment

d. Response Cost Punishment

What Do You Think?

1. Accommodate the process of behavioral change.

2. Define new behavior patterns specifically.3. Give individual performance feedback .4. Reinforce behavior as quickly as possible.5. Use powerful reinforcement.6. Use a continuous reinforcement schedule (for

new behaviors)7. Use a variable reinforcement schedule for

maintenance8. Reward teamwork - not competition.9. Make all rewards contingent on performance.10.Never take good performance for granted.

Shaping Job Behavior

Changing Behavior – Changing Minds

1. Reason

2. Research

3. Resonance

4. Redescriptions

5. Resources and Rewards

6. Real World Events

7. Resistances

Howard Gardner (2006)

Pur

pose

Em

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E

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Rel

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Opt

imal

P

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Rec

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Rew

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Mor

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Employee Engagement

Employee Engagement

56% of disengaged employees would fire their

boss if they could

66% of disengaged employees would never

recommend your organization to clients

Source: Cormier, R. Disarming the Dangerous, Training, March/April 2009.

"In the end, an organization is nothing more than the collective capacity of its people to create value".

Louis Gerstner (Former IBM CEO)

Autonomy – Mastery - Purpose

Ted Talks: Daniel Pink

Questions