Chapter 6: Performance Management
Chapter 6: Performance Management ORGB 300
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This 4 page Class Notes was uploaded by Thao Duong on Tuesday October 27, 2015. The Class Notes belongs to ORGB 300 at Drexel University taught by Blythe Rosikiewicz in Fall 2015. Since its upload, it has received 166 views. For similar materials see Organizational Behavior in Humanities and Social Sciences at Drexel University.
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Date Created: 10/27/15
CHAPTER 6 PERFORMANCE MANAGEMENT 1 Performance Management Processes Performance Management PM a set of processes and managerial behaviors that involve defining monitoring measuring evaluating and providing consequences for performance expectations a Effective PM PM as multiple steps Step 1 Defining performance Set goals and communicate performance expectations Step 2 Monitoring and evaluating performance Measure and evaluate progress and outcomes Step 3 Reviewing performance Deliver feedback and coaching Step 4 Providing consequences Administer valued rewards and appropriate punishment Effective PM generally in uences greater employee engagement and better organizational performance b Common Uses of Performance Management PM has 3 primary functions 0 Make employeerelated decisions 0 Guide employee development 0 Send strong signals to employees about what they are supposed to do and how to advance their careers 2 STEP 1 Define Performance Expectations and Setting Goals An important way to improve your performance and your ability to manage the performance of others is to create better goals Goals provide focus enhance productivity and bolster selfesteem Goals in crease commitment A challenge and prime responsibility for managers is to set and align goals across levels of OB individual department and organizational a Two TVDes of Goals Performance goal targets a specific end result Learning goals involves enhancing your knowledge or skill b Managing the GoalSetting Process Step A Set goals 0 SMART Specific Measurable Attainable Results oriented and Time bound Step B Promote Goal Commitment Step C Provide Support and Feedback Step D Create Action Plans 0 Contingency Approach to Defining Performance Use a contingency approach it is important to do what the situation requires rather than applying a onesizefitsall approach and doing what has been done 3 STEP 2 Performance Monitoring and Evaluation a Monitoring Performance Measure Goals Appropriately and Accurately Monitoring performance Involves measuring tracking or otherwise verifying progress and ultimate performance Measurements 0 Timeliness Was the work completed on time Quality How well was the work done Quantity How much eg sales goals Financial metrics What were the profits returns or other accountingfinancial outcomes b Evaluating Performance It is important that your measures of performance are both relevant and accurate Evaluating performance the process of comparing performance at some point in time to a previously established expectation or goal 360degree feedback individuals compare perceptions of their own performance with behaviorally specific and usually anonymous performance information from their manager subordinates and peers STEP 3 Reviewing Performance and the Importance of Feedback and Coaching Feedback information about individual or collective performance shared with those Effective feedback is only information is not an evaluation Subjective assessments like You re lazy or You have a bad attitude do not qualify as effective feedback E g hard data such as units sold days absent dollars saved Instructional clarifies roles or teaches new behavior Motivational serves as a reward or promises a reward Eg Boss says You ve completed the project ahead of schedule take the rest of the day off Others e g peers supervisors lowerlevel employees and outsiders Those high in selfconfidence tend to rely on personal feedback more than those with Feedback can be made more useful when supported by senior managers 4 a Effective Feedback in a position to improve the situation b Two Functions of Feedback c Important Sources of Feedback Task Self low selfconfidence d Your Perceptions Matter Both negative and positive feedback need to provide clear guidance to improve performance Selfefficacy can also be damaged by negative feedback Factors that affect your perceptions of feedback 0 Accuracy 0 Credibility of the sources 0 Fairness of the system 0 Performancereward expectancies 0 Reasonableness of the goals or standards e Coaching Turning Feedback into Change Coaching a customized process between two or more people with the intent of enhancing learning and motivating change 5 STEP 4 Provide Consequences Administer Rewards and Punishment Three important components of organizational reward system 0 Types of rewards 0 Distribution criteria 0 Desired outcomes TVDes of Rewards Extrinsic rewards Financial material and social rewards come from the environment Intrinsic rewards Feel your work is meaningful have a sense of responsibility self granted b Distribution criteria Three general criteria are used for distributing rewards Results Tangible outcomes such as individual group or organizational performance quantity and quality Behavior and actions Nonperformance considerations c Extrinsic Total and Alternative Rewards Total rewards encompasses not only compensation and benefits but also personal and professional growth opportunities and a motivating work environment that 9 includes recognition job design and worklife balances 6 Reinforcement and Additional Considerations for Providing Appropriate Consequences a The Law of Effect Linking Conseguences and Behavior Law of Effect behavior with favorable consequences tends to be repeated while behavior with unfavorable consequences tends to disappear b Using Reinforcement to Condition Behavior Respondent behavior unlearned re exes or stimulusresponse connections e g shedding tears when peel onion Operant behavior behavior that is learned when one operates on the environment to produce desired consequences Responsestimulus model c Contingent Consequences CC control behavior by responding to a target behavior in one of four ways positive reinforcement negative reinforcement punishment and extinction Increase desired behaviors 0 Positive reinforcement the process of strengthening a behavior by contingently presenting something pleasing 0 Negative reinforcement also strengthens a behavior by contingently withdrawing something unpleasing Decrease Undesired Behaviors 0 Punishment weakening behavior through either the contingent presentation of something unpleasing or the contingent Withdrawal of something positive 0 Extinction weakening a behavior by ignoring it or making sure it is not reinforced d Positive Reinforcement Schedules Continuous reinforcement If every instance of a target behavior is reinforced then a continuous reinforcement CRF schedule is in effect e g get paid every time you make a sale The sale is the desired behavior and payment is the reinforcement Intermittent reinforcement reinforcement of some but not all instances of a target behavior e Work Organization Typically Rely on the Weakest Schedule