Chapter
9
McGraw-Hill/Irwin
Improving Job
performance with
Goals, Feedback,
Rewards, and Positive
Reinforcement
Copyright © 2008
by The McGraw-Hill Companies, Inc. All rights reserved.
© 2008The
Ch. 9 Learning Objectives
1. Define the term performance management,
distinguish between learning goals and performance
outcome goals, and explain the three-step goal
setting process.
2. Identify the two basic functions of feedback, and
specify at least three practical lessons from feedback
research.
3. Define 360-degree feedback, and summarize how to
give good feedback in a performance management
program.
4. Distinguish between extrinsic and intrinsic rewards,
and explain the four building blocks of intrinsic
rewards and motivation
9-2
© 2008 The McGraw-Hill Companies, Inc. All rights reserved.
Ch. 9 Learning Objectives
5.
6.
7.
8.
9.
Summarize the reasons why extrinsic rewards often fail to
motivate employees.
Discuss how managers can generally improve extrinsic reward
and pay for performance plans.
State Thorndike’s “law of effect,” and explain Skinner’s
distinction between respondent and operant behavior.
Define positive reinforcement, negative reinforcement,
punishment, and extinction, and distinguish between continuous
and intermittent schedules of reinforcement.
Demonstrate your knowledge of behavior shaping.
9-3
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Your Experience
A=Yes, B=No, C= NA
1. Have you had a performance management
discussion with your manager?
2. Have you ever conducted a performance
management discussion with an employee?
3. Do you look forward to performance
evaluation meetings with your boss?
What would your ideal performance
management session be like?
9-4
© 2008 The McGraw-Hill Companies, Inc. All rights reserved.
Improving Performance
Performance
management
• Continuous cycle
of improving job
performance with
goal setting,
feedback and
coaching, and
rewards and
positive
reinforcement.
9-5
© 2008 The McGraw-Hill Companies, Inc. All rights reserved.
Figure 9-1
Improving Individual Performance
9-6
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Goal Setting
Performance
outcome goal:
targets a specific
end result
Learning goal:
Encourages
learning, creativity,
and skill
development
9-7
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Line of Sight
56% of workers in US
don’t “clearly
understand their
organization's most
important goals”
81% don’t have clearly
defined goals
Line of Sight:
Knowledge of the
organization’s
strategic goals and
how they need to
contribute
9-8
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Guidelines for SMART Goals
9-9
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Steps for Effective Goal Setting
Programs
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?
9-10
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Feedback
Feedback objective
information about
performance
Functions of
Feedback
• Instructional
• Motivational
9-11
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Six Trouble Signs For Organizational
Feedback Systems
Table 9-2
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.
9-12
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Nontraditional Feedback
360-Degree
Feedback
comparison of
anonymous feedback
from one’s superior,
subordinates, and peers
with self-perceptions
9-13
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Tips for Giving Good Feedback
Focus feedback on performance, not
personalities
Give specific feedback tied to observable
behavior or measurable results
Channel feedback toward key result areas
Give feedback as soon as possible
Give positive feedback for improvement,
not just final results
Base feedback on accurate and credible
information
Pair feedback with clear expectations for
improvement.
9-14
© 2008 The McGraw-Hill Companies, Inc. All rights reserved.
General Model of Organizational
Reward Systems
Desired Outcomes
Types of Rewards
• Financial/material
(extrinsic)
• Social (extrinsic)
• Psychic (intrinsic)
Figure 9-2
Distribution Criteria
•
•
•
•
•
Attract
Motivate
Develop
Satisfy
Retain
• Results
• Behavior
• Other factors
9-15
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Intrinsic vs. Extrinsic Rewards
Intrinsic
Rewards Selfgranted, psychic
rewards
What are examples
of intrinsic
rewards?
Extrinsic
Rewards
Financial,
material, or social
rewards from the
environment
What are examples
of extrinsic
9-16
rewards?
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A Model of Intrinsic Motivation
Figure 9-3
Opportunity
Rewards
From
Task
Activities
From
Task
Purpose
Accomplishment
Rewards
Sense of
Choice
Sense of
Competence
Sense of
Meaningfulness
Sense of
Progress
9-17
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Why Do Extrinsic Rewards Fail to
Motivate?
Too much emphasis on monetary rewards
Rewards lack an “appreciation effect”
Extensive benefits become entitlements
Counterproductive behavior is rewarded
Too long a delay between performance and rewards
Too many one-size-fits-all rewards
Use of one-shot rewards with a short-lived motivational
impact
Continued use of demotivating practices such as layoffs,
across-the-board raises and cuts, and excessive executive
compensation
9-18
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Use and Effectiveness of Incentive Pay
Plans
Table 9-3
9-19
© 2008 The McGraw-Hill Companies, Inc. All rights reserved.
Maximizing Motivational Impact of Extrinsic
Rewards
Make pay for performance an integral part of the
organization’s basic strategy.
Base incentive determinations on objective
performance data.
Have all employees actively participate in the
development, implementation, and revision of the
performance-pay formulas.
Encourage two-way communication so problems
with the pay-for-performance plan will be detected
early.
9-20
© 2008 The McGraw-Hill Companies, Inc. All rights reserved.
Maximizing Motivational Impact of Extrinsic
Rewards Cont.
Build the pay-for-performance plan around participative
structures such as suggestion systems or problemsolving teams
Reward teamwork and cooperation whenever possible
Actively sell the plan to supervisors and middle
managers who may view employee participation as a
threat to their traditional notion of authority
If annual cash bonuses are granted, pay them in a
lump sum to maximize their motivational impact
Selectively use creative noncash rewards to create buzz
and excitement
9-21
© 2008 The McGraw-Hill Companies, Inc. All rights reserved.
Positive Reinforcement
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. Quit
b. Keep trying to impress the right people
9-22
© 2008 The McGraw-Hill Companies, Inc. All rights reserved.
Behavior-Consequence Relationship
Contingent Consequences in Operant Conditioning
Nature of Consequences
Contingent
Presentation
Contingent
Withdrawal
Figure 9-4
Positive or Pleasing
Negative or Displeasing
Positive Reinforcement
Punishment
Punishment
(Response Cost)
Negative Reinforcement
(no contingent consequence)
Extinction
9-23
© 2008 The McGraw-Hill Companies, Inc. All rights reserved.
Test Your Knowledge
Martin’s boss tells him “the next time you come
to work late, I’m going to dock your pay”. This
best represents:
a.
b.
c.
d.
Positive reinforcement
Negative reinforcement
Punishment
Response Cost Punishment
9-24
© 2008 The McGraw-Hill Companies, Inc. All rights reserved.
Ten Practical Tips to Effectively Shape
Job Behavior
1)
2)
3)
4)
5)
6)
7)
8)
9)
10)
Accommodate the process of behavioral change.
Define new behavior patterns specifically.
Give individuals feedback on their performance.
Reinforce behavior as quickly as possible.
Use powerful reinforcement.
Use a continuous reinforcement schedule (for new
behaviors)
Use a variable reinforcement schedule for
maintenance
Reward teamwork -- not competition.
Make all rewards contingent on
performance.
Never take good performance for granted.
Table 9-4
9-25
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Chapter
9
Supplemental
Slides
9-26
© 2008The McGraw-Hill Companies, Inc. All rights reserved.
Video Cases
Slacking Off
Corporate Health
9-27
© 2008 The McGraw-Hill Companies, Inc. All rights reserved.
Getting Rewards Right:
The Snowfly Slots
Companies are using games to motivate employee’s
behavior
For taking actions that are aligned with the
organization’s objectives employees receive tokens
Tokens are used on an on-line slot machine called
“Snowfly”
Employees can win between 2 cents and $50 per game
This strategy has boosted productivity in a variety of
organizations including banks and beverage
distributors
Source: New Incentives for Workers Combine Cash, Fun, J. Badal, Wall Street Journal, 6/19/06
9-28
© 2008 The McGraw-Hill Companies, Inc. All rights reserved.
Getting Rewards Right:
The Snowfly Slots
Set specific goals and reward achievement quickly;
don’t wait until the end of the year.
Give employees reward choices, to reflect different
tastes
Remind employees about goals and possible rewards
Keep the program fresh; update prices to generate
enthusiasm
Ensure that front-line managers are committed to the
program
Source: New Incentives for Workers Combine Cash, Fun, J. Badal, Wall Street Journal, 6/19/06
9-29
© 2008 The McGraw-Hill Companies, Inc. All rights reserved.
Yearly Reviews
Why don’t managers and employees
like performance reviews?
Where you work or have worked,
how often did you receive feedback?
9-30
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Yearly Reviews
Jack and Suzy Welch’s advice:
•Sit down with each direct report and provide
a single page that says, here’s what you do
well, and here’s what you can do better
•This should happen three or four times a
year, particularly with every raise, bonus, or
promotion
What are the pros and cons of this approach?
Source: Ideas The Welch Way, BusinessWeek, February 26, 2007
9-31
© 2008 The McGraw-Hill Companies, Inc. All rights reserved.
Fear of Feedback
Maladaptive Behaviors
•Procrastination
•Brooding
•Denial
•Jealousy
•Self-sabotage
Source: Fear of Feedback, Jackman, J.M., Strober, M.H. (2005) Harvard Business Review
9-32
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Fear of Feedback
Adaptive Behaviors
•Recognize emotions and maladaptive
responses
•Get support
•Reframe the feedback
•Break it into parts
Source: Fear of Feedback, Jackman, J.M., Strober, M.H. (2005) Harvard Business Review
9-33
© 2008 The McGraw-Hill Companies, Inc. All rights reserved.
Fear of Feedback:
Reframe Your Thinking
Possible Negative
Emotion
Maladaptive
Response
Anger
Acting out
It’s up to me to get the
feedback I need.
Anxiety
Brooding
Avoiding
Finding out can open
up new opportunities
for me
Fear of
confrontation
Hurt
Reframing
Statement
Denial,
Taking the initiative
procrastination, self- puts me in charge and
gives me some power
sabotage
Irritability, jealousy
of others
I can still pay attention
to what he said even
though I feel hurt. 9-34
Source: Fear of Feedback, Jackman, J.M., Strober, M.H. (2005) Harvard Business Review
© 2008 The McGraw-Hill Companies, Inc. All rights reserved.
Fear of Feedback:
Reframe Your Thinking
Possible Negative
Emotion
Maladaptive Response
Defensiveness
Acting out by not
supporting the boss
Being defensive keeps
me from hearing what
she has to say
Brooding, Withdrawal
How I’m doing in my
job isn’t about whether
I’m liked
Denial
I must change to keep
my job. I’ll focus on one
or two key areas.
Procrastination, Passivity
What really serves my
interests best? I need to
take some action now.
Sadness
Fear of Change
Ambivalence
Reframing Statement
9-35
Source: Fear of Feedback, Jackman, J.M., Strober, M.H. (2005) Harvard Business Review
© 2008 The McGraw-Hill Companies, Inc. All rights reserved.
Fear of Feedback
What if the feedback doesn’t improve
despite your attempts to change?
Source: Fear of Feedback, Jackman, J.M., Strober, M.H. (2005) Harvard Business Review
9-36
© 2008 The McGraw-Hill Companies, Inc. All rights reserved.
Play to Your Strengths
Marcus Buckingham, renowned business
consultant & author argues:
•People should focus much more on their
true strengths than focusing on the
activities they aren’t good at or drain them
This provides a win/win for employees and
organizations
“Strengths” are not only what you’re good at
Source: Engaging Generation Y, Training and Development, Aug 2006, 26-30
9-37
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Play to Your Strengths
Acronym: SIGN
S. Success – what did you do last week that you were
good at?
I. Instincts – what you can’t pass up, activities you
looked forward to or volunteered for
G.Growth – you grow most in your strengths, you
focus, are naturally inquisitive about, and practice
these areas
N.Needs – practicing a strength fulfills a need, you
feel in control, authentic
Source: Engaging Generation Y, Training and Development, Aug 2006, 26-30
9-38
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Receiving Feedback
To help clarify feedback, receivers can ask:
Could you give me an example of the behavior that
concerns you?
Can you help me understand how you came to that
conclusion?
Can you help me understand the situations in which
you have seen the behavior and what you see as the
impact?
Can you clarify what you would like to see me do
differently?
9-39
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Schedules of Reinforcement
Schedule
Description
Continuous
(CRF)
Reinforcer follows every response
Intermittent
Fixed ratio (FR)
Reinforcer does not follow every response
A fixed number of responses must be
emitted before reinforcement occurs.
Variable ratio (VR)
A varying or random number of responses
must be emitted before reinforcement occurs.
Fixed interval (FI)
The first response after a specific period of
time has elapsed is reinforced
Variable interval (VI)
The first response after varying or random
periods of time have elapsed is reinforced. 9-40
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Bad Apples
What percent of U.S. workers feel
employees are held accountable for
their performance?
a. 22%
b. 44%
c. 55%
d. 77%
9-41
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Bad Apples (con’t)
What percent of U.S. workers feel their
company helps poorly performing
workers improve?
a. 20%
b. 30%
c. 50%
d. 70%
9-42
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Bad Apples (con’t)
Three ways NOT to handle poor performers:
1. Ignore the problem, reassign the workload
and hope the poor performer will quit or
move to another team
2. Talk to the team as a group rather than to the
individual – this insults the good performers
3. Take poor performance as a personal insult
and confront the employee in a threatening
way.
9-43
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Bad Apples (con’t)
To manage poor performers companies
should establish training for managers
• Ongoing practice
• Just-in-time training
Training should involve:
• Timing of counseling employees
• How to find the root cause
• How to give constructive criticism
9-44
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Pay for Performance
Jamba Juice Co. – specialty health beverage
stores uses the following performance rating
categories
•
•
•
•
Outstanding
Exceeding requirements
Meeting requirements
Falling below requirements
Who should receive a merit increase?
What are the legal implications of rewarding
9-45
poor performers?
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How to Make Sure Performance Feedback Hits
the Target
The person offering
the feedback is
reliable and has good
intentions toward
them
The feedback
development process
is fair
The feedback
communication
process is fair
9-46
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What Sort of Carrots Would You Like?
“Incentive programs
structured with
employee input work
best; however, the
study showed that
only 23% of incentive
systems are selected
with employee input.”
9-47
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Productive Job Behavior Requires Supportive
Antecedents and Consequences
Antecedent
Behavior
Consequences
Behavior
Outcomes
Manager: “I
Payroll Clerk:
Manager: “I’m
The payroll clerk
continues to make
excuses while
missing important
deadlines because
of the manager’s
negative
antecedents and
sarcastic
consequences
suppose you
haven’t finished
the payroll report
yet.”
“No way! I’m
behind schedule
because the
supervisors didn’t
submit their
payroll data on
time.”
sure everyone will
enjoy their
paychecks late
again!”
9-48
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Productive Job Behavior Requires Supportive
Antecedents and Consequences Cont.
Antecedent
Behavior
Consequences
Behavior
Outcomes
Manager: “How
Payroll Clerk:
Manager: “I
The payroll clerk
continues to meet
important
deadlines because
of the manager’s
non-threatening
antecedents and
rewarding
consequences
are you coming
along on this
week’s payroll
report?”
“I’m a little behind
schedule. But if I
work during my
lunch hour, I’ll
have it done on
time.”
appreciate that
extra effort! How
would you like to
spend tomorrow
working on that
bonus-pay project
you suggested last
week?
9-49
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Modifying On-the-Job Behavior
Step 1
Step 2
Identify target
behavior
Perform an
A B C
functional analysis
Step 3
Provide
supportive and
appropriately
Arrange
antecedents scheduled
consequences
Step 4
Evaluate
results
9-50
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O.B. Mod Application Model
Identify
Behaviors for Change
Measure
Baseline frequency of response
Analyze
Functional consequences
Intervene
See Learning Module A
(Web)
Evaluate
For performance improvement
9-51
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A Social Learning Model for Self- Management
Person
(Psychological Self)
• Symbolic coding
• Rehearsal
• Self-talk
Behavior
• Behavior changes
needed for selfimprovement
Situational Cues
• Reminders & attention
focusers
• Self-observation data
• Avoidance of negative
cues
• Seeking of positive
cues
• Personal goal-setting
• Self contracts
Consequences
• Self-reinforcement/
self-punishment
• Building activities into
the task that are
naturally rewarding
• Reinforcement from
relevant others
9-52
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How to Make Team-Based Pay Work
1) Prepare employees with
interpersonal skills training.
2) Don’t introduce team-pay
until teams are running
smoothly.
3) Blend individual and team
incentives.
4) Start by rewarding
teamwork behaviors and
then evolve to incentives
for team results.
5) Make sure each team
member has a clear line of
sight to key team results.
9-53
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Conclusion
Questions for discussion
9-54
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