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an organization-wide system whereby managers integrate the activities of goal setting, monitoring and evaluating, providing feedback and coaching, and rewarding employees on a continuous basis
Goal Setting (Line of Sight)
Employees with a clear line of sight understand the organization’s strategic goals and know what actions they need to take, both individually and a team members.
Performance Outcome Goal
Targets a specific end result
strives to improve creativity and develop skills
Management by Objectives
management system incorporating participation in decision making, goal setting, and feedback
Step 1) Set Goals
- Whether goals are imposed or, preferably, set participatively via a free exchange with one’s manager, they should be “SMART.” specific, measurable,
- attainable, results oriented, and time bound
- -Because of individual differences, it may be necessary to establish different goals for employees performing the same job.
Step 2) Promote Goal Commitment
- 1. Explain why the organization is committed to a comprehensivegoal-setting program.
- 2. Create clear lines of sight by clarifying the
- corporate goalsand linking the individual’s goals to them. .
- 3. Let employees participate in setting their own goals and creatingtheir own action plans. Encourage them to set challenging“stretch” goals.
- 4. Foster personal growth by having employees build goal ladders, chains of progressively more difficult and challenging goals.
Step 3) Provide Support+Feedback
- 1)Make sure each employee has the necessary skills and information to reach his goals
- 2)Pay attention to employees’ effort→performance expectations, perceived self-efficacy, and reward preferences and adjust accordingly
- 3)Be supportive and helpful
- information about individual or collective performance
- enhances effect of specific, difficult goals
clarifies roles or teaches new behaviors
serves as a reward or promise of a reward
Lessons from Feedback
- Managers can enhance their credibility as sources of feedback by developing their expertise and creating a climate of trust.
- Negative feedback is typically misperceived or rejected
- Recipients of feedback perceive it to be more accurate when they actively participate in the feedback session versus passively receiving feedback
360 Degree Feedback
Letting individuals compare their own perceived performance with behaviorally specific (and usually anonymous) performance information from their manager, subordinates, and peers
financial, material, or social rewards from the environment
self-granted, psychic rewards
Performance: Actions and Behaviors
teamwork, cooperation, risk-taking
contractual where type of job, nature of work, equity, tenure, level in hierarchy are rewarded
Why Extrinsic Rewards Fail to Motivate (8)
- 1. Too much emphasis on monetary rewards.
- 2. Rewards lack an “appreciation effect.”
- 3. Extensive benefits become entitlements.
- 4. Counterproductive behavior is rewarded. (For example, “a pizza deliverycompany)
- 5. Too long a delay between performance and rewards.
- 6. Too many one-size-fits-all rewards.
- 7. Use of one-shot rewards with a short-lived motivational impact.
- 8. Continued use of demotivating practices such as layoffs, across-the-boardraises and cuts, and excessive executive compensation.
Pay For Performance
monetary incentives linking at least some portion of the paycheck directly to results or accomplishments
Law of Effect
Behavior with favorable consequences tends to be repeated; behavior with unfavorable consequences tends to disappear
Skinner’s term for unlearned reflexes or stimulus-response connections
behavior that is learned when one “operates on” the environment to produce desired consequences.
process of strengthening a behavior by contingently presenting something pleasing
strengthens a desired behavior by contingently withdrawing something displeasing
process of weakening behavior through either the contingent presentation of something displeasing or the contingent withdrawal of something positive
Weakening a behavior by ignoring it or making sure it is not reinforced
reinforcing every instance of a behavior
Intermittent reinforcement – reinforcing some but not all instances of behavior (fixed ratio, variable ratio, fixed interval, variable interval)
reinforcing closer and closer approximations to a target behavior