1. Chapter 5 Evaluation, Feedback, and Reward of Individual Behavior
John M. Ivancevich
Michael T. Matteson
Slides Prepared by Bruce R. Barringer
University of Central Florida
© McGraw-Hill Companies, Inc., 1999

2. Learning Objectives Slide 1 of 2
Describe several purposes of performance evaluation.
Explain why a 360-degree feedback program is considered more thorough.
Discuss reinforcement theory.
Describe the elements in a model of rewards.
© McGraw-Hill Companies, Inc., 1999

3. Learning Objectives Slide 2 of 2
Compare intrinsic and extrinsic rewards.
Understand the role rewards play in turnover, absenteeism, performing, and commitment.
Identify several innovative reward systems.
© McGraw-Hill Companies, Inc., 1999

4. Purposes of Evaluation
Judgmental Orientation
Developmental Orientation
- Provide basis for reward
allocation
- Identify high-potential
employees
- Validate effectiveness of
employee selection procedures
- Evaluate previous training
programs
- Facilitate future performance
improvements
- Develop ways of overcoming
obstacles & performance barriers
- Identify training and development
opportunities
- Establish supervisor-employee
agreement on performance
expectations
© McGraw-Hill Companies, Inc., 1999

5. Focus of Evaluation
Effective performance evaluation asks the following two questions:
Is the work being done effectively?
Are employee skills and abilities being fully utilized?
© McGraw-Hill Companies, Inc., 1999

6. Improving Evaluations Slide 1 of 2
Suggestions for Improving the Effectiveness of an Evaluation System
Ask employees to participate in the evaluation process.
Set specific performance goals.
Provide supervisor’s training in evaluation subordinates’ performance.
Communicate the results of the evaluation process to employees.
© McGraw-Hill Companies, Inc., 1999

7. Improving Evaluations Slide 2 of 2
Suggestions for Improving the Effectiveness of an Evaluation System (continued)
Do not focus entirely on problem areas; good performance should be actively recognized and rewarded.
Make performance evaluation a continuous, ongoing process.
© McGraw-Hill Companies, Inc., 1999

8. Performance Evaluation Feedback
Instructional
Feedback instructs when it points out areas for improvement and teaches new behavior
Performance evaluation feedback can be instructional and/or motivational to the receiver (the evaluated person).
Motivational
Feedback is motivational when it provides a reward or promises a reward
© McGraw-Hill Companies, Inc., 1999

9. Multisource Feedback: A 360-Degree Approach
A 360-degree program evaluators could include creditors, peers or team members, supervisors, subordinates, and the person being evaluated. The increasing use of multisource programs is the result of calls for more fairness, clarity, and creditability in performance improvement programs.
© McGraw-Hill Companies, Inc., 1999

10. Reinforcement Theory Slide 1 of 2
Rationale behind Reinforcement Theory
Learning experts believe that reinforcement is the most important principle of learning.
Desired or reinforcing consequences will increase the strength of a behavior and increase the probability of the behavior being repeated.
Operants
Behaviors that can be controlled by altering the consequences that follow them.
© McGraw-Hill Companies, Inc., 1999

11. Reinforcement Theory Slide 2 of 2
Forms of Reinforcement
Positive Reinforcement
A stimulus that, when applied to the situation, strengthens the probability of a behavioral response.
Punishment
Is defined as presenting an uncomfortable or unwanted consequence for a particular behavioral response.
Extinction
Reduces unwanted behavior by withholding positive reinforcers.
© McGraw-Hill Companies, Inc., 1999

12. Exhibit 5.2: Rewards, Reinforcement, and Punishment
Desirable
Undesirable I II
Positive reinforcement (behavior increases)
Punishment (behavior decreases)
Applied
III IV
Withdrawn
Punishment (behavior decreases)
Negative reinforcement (behavior increases)
© McGraw-Hill Companies, Inc., 1999

13. Reinforcement Schedules Slide 1 of 2
Fixed Interval
A situation in which a reinforcer is applied only after a certain period of time has elapsed since the last reinforcer was applied.
Variable Interval
A reinforcer applied at some variable interval of time.
© McGraw-Hill Companies, Inc., 1999

14. Reinforcement Schedules Slide 2 of 2
Fixed Ratio
A reinforcer is applied only if a fixed number of desired responses have occurred.
Variable Ratio
A reinforcer is applied only after a number of desired responses, with the number of desired responses changing from situation to situation, around an average.
© McGraw-Hill Companies, Inc., 1999

15. Exhibit 5.4: The Reward Process
Ability and
skill
Intrinsic
rewards
Motivation
to exert effort
Performance
results:
Individual
Performance
evaluation
Satisfaction
Experience
Extrinsic
Rewards
© McGraw-Hill Companies, Inc., 1999

16. Intrinsic and Extrinsic Rewards
Intrinsic Rewards
Rewards that are part of the job itself. The responsibility, challenge, and feedback characteristics of the job are intrinsic rewards.
Extrinsic Rewards
Rewards external to the job such as pay, promotion, or fringe benefits.
© McGraw-Hill Companies, Inc., 1999

17. Administering Rewards
The three major theoretical approaches to reward administration are:
Positive
Reinforcement
Modeling and
Social
Interaction
Expectancy
Theory
© McGraw-Hill Companies, Inc., 1999

18. Organizational Concerns that are Influenced by Rewards
Turnover and Absenteeism
Performance
Commitment
© McGraw-Hill Companies, Inc., 1999

19. Innovative Reward Systems
Gainsharing
Skill-Based Pay
Broadbanding
Banking Time Off
Team-Based Rewards
All-Salaried Team
Employee Stock Ownership Plans
© McGraw-Hill Companies, Inc., 1999

20. Line of Sight: The Key Issue
Line of sight means that the employee perceives that there is a “real” linkage between his or her performance and the rewards received.
Real link between performance and rewards
© McGraw-Hill Companies, Inc., 1999