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MGMT 371 Chapter 8: Improving Job Performance with Feedback, Extrinsic Rewards, and Positive Reinforcement I. Feedback II. Extrinsic Rewards III. Positive Reinforcement FEEDBACK Feedback: Objective information about performance. Functions of feedback: Instructional Motivational Three Sources of feedback: Others Task Oneself McGraw-Hill McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved. I. Feedback A. Sources B. Recipients 1. Characteristics 2. Perceptions 3. Cognitive Evaluation I. Feedback C. Behavioral Outcomes 1. 2. 3. 4. Direction Effort Persistence Resistance Bolstering the Job Performance Cycle With Feedback, Rewards and Reinforcement Figure 8-1 Timely and instructive feedback Ability Effort Results • Learning • Personal development • Stable, strong job performance Properly administered rewards and positive reinforcement McGraw-Hill McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved. I. Feedback D. Do’s and Don’ts E. Nontraditional 1. Upward 2. 360 Degree Popularity of Nontraditional Feedback 1. 2. 3. Traditional performance appraisal systems have created widespread dissatisfaction. Team-based organization structures are replacing traditional hierarchies. Multiple-rater systems are said to make feedback more valid than single-source feedback. McGraw-Hill McGraw-Hill/Irwin ©©2006 2005 The McGraw-Hill Companies, Inc. All rights reserved. Popularity of Nontraditional Feedback 4. Advanced computer network technology (the Internet and company Intranets) greatly facilitates multiple-rater systems. 5. Co-workers and lower-level employees are said to know more about a manager’s strengths and limitations than the boss. 6. Bottom-up feedback meshes nicely with the trend toward participative management and employee empowerment. Skills & Best Practices: Effectively Giving Feedback Tie feedback to existing performance goals and clear expectations. Give specific feedback. Provide feedback focused key result areas. Give feedback ASAP. Give positive feedback for improvement, not just final results. Focus feedback on performance, not personalities. Base feedback on accurate and credible information. McGraw-Hill McGraw-Hill/Irwin ©©2006 2005 The McGraw-Hill Companies, Inc. All rights reserved. II. Extrinsic Rewards A. B. C. D. Org. Reward Norms Reward Distribution Pay for Performance Team Based Organization Reward Norms Profit Maximization Pay least wages for max effort (org) Max rewards (employee) Reward Equity Reward Equality Need Rewards Fail to Motivate When… 1. 2. 3. 4. 5. 6. 7. McGraw-Hill McGraw-Hill/Irwin Too much emphasis on money Benefits become entitlements Wrong behaviors are rewarded Performance and rewards aren’t linked Rewards aren’t valued or varied Use of one-shot rewards with a brief motivational impact Using demotivating practices such as layoffs, punitive mgmt practices, excessive exec pay, etc. © 2005 The McGraw-Hill Companies, Inc. All rights reserved. III. Positive Reinforcement A. Thorndike’s Law of Effect B. Skinner’s Operant Conditioning III. Positive Reinforcement C. Contingent Consequences 1. 2. 3. 4. Positive Reinforcement Negative Reinforcement Punishment Extinction III. Positive Reinforcement D. Reinforcement Schedules 1. Continuous 2. Intermittent a. Fixed ratio b. Variable ratio c. Fixed interval d. Variable interval E. Behavior Shaping