MANAGING AND LEADING FOR HIGH PERFORMANCE MANAGING AND

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MANAGING AND LEADING FOR HIGH PERFORMANCE

MANAGING AND LEADING FOR HIGH PERFORMANCE

MANAGING AND LEADING FOR HIGH PERFORMANCE Performance can be managed in two ways: Through

MANAGING AND LEADING FOR HIGH PERFORMANCE Performance can be managed in two ways: Through job design and goal setting Behaviour reinforcement and rewards

MANAGING PERFOMANCE THROUGH JOB DESIGN AND GOAL SETTING

MANAGING PERFOMANCE THROUGH JOB DESIGN AND GOAL SETTING

Job design and goal setting Definition of job design The methods that management uses

Job design and goal setting Definition of job design The methods that management uses to develop the content of a job, including all relevant tasks, as well as the processes b which jobs are constructed and revised Job design is becoming increasingly important because the nature of work is changing in the light of various recent trend – intrusion of advanced IT, internet, intranet and e business Such recent trends have changed the meaning of such things as “on work and off work times” Because of technology, a person can be on work even when at home, driving, traveling or in bed

 People today have home offices complete with internet, fax machines, mobile telephones etc

People today have home offices complete with internet, fax machines, mobile telephones etc Teleconference are replacing face to face meeting Generally, the telecommunications are giving employees opportunities to work from home All this create new challenges for job design models

Dimensions/approaches of job design Job enrichment – vertically loading the job to provide more

Dimensions/approaches of job design Job enrichment – vertically loading the job to provide more opportunities Job engineering Scientific management, industrial engineering approach Concerned with product, process and tool design, plant layout, standard operating procedures, work measurements and standards, worker methods, and human machine interaction Quality of work life (QWL) – a broad based approach suggesting the importance of overall climate, social- technical designs and teams

 Job characteristics – building skill variety, task identity, task significance, autonomy and feedback

Job characteristics – building skill variety, task identity, task significance, autonomy and feedback into the job

Importance of job design It can reduce stress It can enhance motivation of employee

Importance of job design It can reduce stress It can enhance motivation of employee Can improve job satisfaction and commitment Can improve employee performance allowing organisations to effectively compete in the global market

Job re/design there are two spectrums to follow job enlargement job enrichment.

Job re/design there are two spectrums to follow job enlargement job enrichment.

Job enlargement Increasing the number of task each employee performs Job enlargement adds a

Job enlargement Increasing the number of task each employee performs Job enlargement adds a more variety of tasks and duties to the job so that it is not as monotonous. This takes in the breadth of the job. That is, the number of different tasks that an employee performs. This can also be accomplished by job rotation.

 It enables workers use more skills in performing their tasks May reduce efficiency

It enables workers use more skills in performing their tasks May reduce efficiency and slow down work But generally it is said to increase employee satisfaction and commitment Enlargement horizontally loads the job

Job rotation and job enlargement These were the popular methods of job design in

Job rotation and job enlargement These were the popular methods of job design in the 1950 s and 1960 s They were introduced to take advantage of specialisation of labour form the job engineering approaches and also to reduce some of the negative effects these engineered job have on employee satisfaction and performance

Job rotation was said to: Reduce accidents Reduce incidents of repetitive strains injury Enable

Job rotation was said to: Reduce accidents Reduce incidents of repetitive strains injury Enable employees to be more flexible and cover for someone who is absent For supervisors who are promoted from below the ranks, they would know more about the entire job operation

Job enrichment It adds depth to the job - more control, responsibility, and discretion

Job enrichment It adds depth to the job - more control, responsibility, and discretion to how the job is performed. Gives higher order needs to the employee, as opposed to job enlargement which simply gives more variety. The chart below (Cunningham & Eberle, 1990) illustrates the differences:

Job enrichment and job enlargement _ Higher Order | Job | Enrichment | |

Job enrichment and job enlargement _ Higher Order | Job | Enrichment | | | Enrichment and | Enlargement | | Accent on |_______________|_______________| Needs | | | Routine | Job | Enlargement | | Lower | | | Order |_______________|_______________| Few Variety of Tasks Many

Job enrichment Represents an extension of job rotation and job enlargement The assumptions that

Job enrichment Represents an extension of job rotation and job enlargement The assumptions that in order to motivate person, the job must be designed to provide opportunities for achievement, recognition, responsibility, advancement and growth This would require to ‘enrich the job” so that all these factors are presents

 Job enrichment includes designing jobs that include: Greater variety of work content Require

Job enrichment includes designing jobs that include: Greater variety of work content Require a higher level of knowledge and skills Give workers autonomy and responsibility in terms of planning, directing, and controlling their own performance Proving the opportunity for personal growth and meaningful work experience Enrichment vertically loads the job – not necessity more tasks but more responsibility and accountability

Designing Job Depth: Job Enrichment Managers can provide employees with greater opportunities to exercise

Designing Job Depth: Job Enrichment Managers can provide employees with greater opportunities to exercise discretion by making the following changes: Direct feedback New learning Scheduling Uniqueness Control over resources Personal accountability

Benefits of an enriched jobs Effects of job enrichment Fewer employee errors Less employee

Benefits of an enriched jobs Effects of job enrichment Fewer employee errors Less employee overload More employee creativity Growth of the individual Individuals have better job satisfaction Self-actualization of the individual

 Better employee performance for the organization Organization gets intrinsically motivated employees Less absenteeism,

Better employee performance for the organization Organization gets intrinsically motivated employees Less absenteeism, turnover, and grievances for the organization Full use of human resources for society Society gains more effective organizations

Criticism of job enrichment Management might not know when and why the failures occur

Criticism of job enrichment Management might not know when and why the failures occur Many employees prefer an old familiar job to an enriched job and employees are resistance to change Some employees enjoy the current pattern of on the job socialization and friendship more than they do increased responsibility and autonomy

Richard Hackman and Greg Oldham Model Hackman and Oldham (1975) identified a model on

Richard Hackman and Greg Oldham Model Hackman and Oldham (1975) identified a model on the relationship between certain job characteristics (job scope) and employee motivation The model recognizes that certain job characteristics contribute to certain psychological state and that the strength of employees’ needs for growth has an important moderating effect

Hackman and Oldham model – core characteristics Skill variety: The extent to which the

Hackman and Oldham model – core characteristics Skill variety: The extent to which the job requires the employee to draw form a number of different skills and abilities as well as on a range of knowledge Task identity: Whether the job has an identifiable beginning and end. How complete a module of work does the employee perform

 Task significance: The importance of the task. It involves the internal significance –

Task significance: The importance of the task. It involves the internal significance – how important is the task to the organisation? And the external significance – how proud are the employee to tell relatives, friends what they do where they work Autonomy: Refers to job independence. How much freedom and control do employees have, for their schedule of work, decisions, determining the means to accomplish objectives

 Feedback: Refers to objective information about progress and performance and can come form

Feedback: Refers to objective information about progress and performance and can come form the job itself or form supervisors or an information system

Critical Psychological States These can be summarized as follows: Meaningfulness: This cognitive state involves

Critical Psychological States These can be summarized as follows: Meaningfulness: This cognitive state involves the degree to which employee perceive their work as making a values contribution, as being important and worthwhile skill variety Task identity Task significance

 Responsibility: this state is concerned with the extent to which employees feel a

Responsibility: this state is concerned with the extent to which employees feel a sense of being personally responsible or accountable for the work being done/outcomes Autonomy Knowledge for results: Coming directly from the feedback, it involves the degree to which employees understand how they are performing in the job Feedback

Internal reward and job characteristics The more these three psychological states are present in

Internal reward and job characteristics The more these three psychological states are present in a job characteristics, the more employees will feel good about themselves when they perform well Internal rewards re obtained by an individual when her learns (knowledge of results) that he personally (experience responsibility) has performed well on a task that he cares about (experience meaningfulness)

Internal reward and job characteristics (cont…) These internal rewards are reinforcing to employees and

Internal reward and job characteristics (cont…) These internal rewards are reinforcing to employees and cause them to perform well If they do not perform well, they will try harder in order to get internal rewards that good performance brings Thus it result to a self-perpetuating cycle of positive work motivation powered by self generated rewards This cycle will continue until one or more of the psychological states is no longer present or until the individual no longer values the internal reward that derive form good performance

The Job Characteristics Model Job Characteristics Skill Variety Task Identity Task Significance Critical Psychological

The Job Characteristics Model Job Characteristics Skill Variety Task Identity Task Significance Critical Psychological States Experienced Meaningfulness of Work Autonomy Experienced Responsibility for Outcomes of Work Feedback Knowledge of Actual Results of Work Activities Employee’s Growth Need Strength Personal and Work Outcomes High Internal Work Motivation High-quality Work Performance High Satisfaction with Work Low Absenteeism and Turnover

Example of a surgeon/blue collar job worker Surgeon must draw on a wide variety

Example of a surgeon/blue collar job worker Surgeon must draw on a wide variety of skills and abilities Can readily identify the tasks because they handle patients form beginning to end The job has a life threatening significance There is great deal of autonomy – surgeons have the final word There is clear dirt feedback during the operation itself and during and after recovery Hence the high motivation

Blue collar All five characteristics would be relatively minimal or non existence in the

Blue collar All five characteristics would be relatively minimal or non existence in the perception of such job holders and thus can help explain the motivations problems with these low level jobs To conclude, in this model, it is the job design not just the person holding the job which can be used to explain the motivation to perform

Steps that management can take to increase core job dimensions: 1. Combining task elements

Steps that management can take to increase core job dimensions: 1. Combining task elements 2. Assigning whole pieces of work (i. e. , work modules) 3. Allowing discretion in selection of work methods 4. Permitting self-paced control 5. Opening feedback channels

Guidelines For Redesigning Jobs For each core job characteristics, specific guidelines have been suggested

Guidelines For Redesigning Jobs For each core job characteristics, specific guidelines have been suggested for redesigning jobs

Guidelines For Redesigning Jobs (Cont…) Skill variety Provide cross training Expand duties requiring more

Guidelines For Redesigning Jobs (Cont…) Skill variety Provide cross training Expand duties requiring more skills Task identity Give projects a deadline for completion Form self contained work modules

Guidelines For Redesigning Jobs (Cont…) Task significance autonomy Communicate importance of the job Enhance

Guidelines For Redesigning Jobs (Cont…) Task significance autonomy Communicate importance of the job Enhance image of the organisation Empower to make decisions Give more responsibility and accountability

Guidelines For Redesigning Jobs (Cont…) feedback Implement information systems Supervisors give object, immediate information

Guidelines For Redesigning Jobs (Cont…) feedback Implement information systems Supervisors give object, immediate information on how the employee is doing

QUALITY OF WORK LIFE

QUALITY OF WORK LIFE

 Quality of Work Life (QWL) is a philosophy, a set of principles, which

Quality of Work Life (QWL) is a philosophy, a set of principles, which holds that people are the most important resource in the organization as they are trustworthy, responsible and capable of making valuable contribution and they should be treated with dignity and respect especially because they are capable of making a valuable contribution to the organization

 Quality of work life is defined by Lawler (1973) as the employee perceptions

Quality of work life is defined by Lawler (1973) as the employee perceptions of their physical and mental well being at work. These perceptions can be favourable or unfavourable.

 The elements that are relevant to an individual’s quality of work life include:

The elements that are relevant to an individual’s quality of work life include: The task, The physical work environment, Social environment within the organization, Administrative system Relationship between life on and off the job opportunities for active involvement in group working arrangements or problem solving that are of mutual benefit to employees or employers

 People also conceive of QWL as a set of methods, such as autonomous

People also conceive of QWL as a set of methods, such as autonomous work groups, job enrichment, high-involvement aimed at boosting the satisfaction and productivity of workers.

Quality of work life (QWL) The Quality of Work life (QWL) perspective does not

Quality of work life (QWL) The Quality of Work life (QWL) perspective does not advocate one particular job design technique QWL is more concerned with the overall work climate or culture social technical approach to job design It is describes as a concern about the impact of work on people and organizational effectiveness combined with an emphasis on participation in problem solving and decision making

Quality of working life has been identified by researchers to have the following components:

Quality of working life has been identified by researchers to have the following components: • Pay, • Employee benefits, • Job security, • Alternative work schedules, • Job stress, • Participation in decision making • Workplace democracy, • Profit sharing, • Pension rights, • Working hours, programs that enhance workers’ welfare and overall job satisfaction

 Mirvis and Lawler (1984)) suggested that Quality of working life was associated: With

Mirvis and Lawler (1984)) suggested that Quality of working life was associated: With satisfaction with wages, Hours and working conditions, Safe work environment, Equitable wages, Equal employment opportunities Opportunities for advancement.

 Baba and Jamal (1991) listed what they described as typical indicators of quality

Baba and Jamal (1991) listed what they described as typical indicators of quality of working life, including: Job satisfaction, Job involvement, Work role ambiguity, Work role conflict, Work role overload, Job stress, Organizational commitment

 Purpose of QWL programme is to change and improve the work climate so

Purpose of QWL programme is to change and improve the work climate so that the interface of people, technology and the organisation makes for more favourable work experience and desired outcomes

GOAL SETTING

GOAL SETTING

Meaning A goal is a target that an individual or group of individuals seek

Meaning A goal is a target that an individual or group of individuals seek to accomplish at work Goal achievement is a factor that influences the success level of individuals employees, departments and business units and the overall organisation Goal setting is the process of motivating employ establishing effective and meaningful performance targets

Theoretical background of goal setting Can be traced back to the scientific management theory

Theoretical background of goal setting Can be traced back to the scientific management theory of Fredrick Taylor when he talked of setting the standards of performance Edward Tolman cognitive theory also talked of importance of values and consequences to influence behaviour The most documented theory of goal setting is by Edwin Locke (1968)

Edward Locke Suggests that people strive to attain goals order to satisfy their emotions

Edward Locke Suggests that people strive to attain goals order to satisfy their emotions and desires Goals provide a directional nature to propel behaviour and guide their thought s and actions to one outcome rather than another The individual then responds and performs according to these intentions or goals, even if their goals are not attained Consequences, feedback, or reinforcement are the result of these responses

Locke goal setting theory of work motivation Based on these, Locke summarizes goal setting

Locke goal setting theory of work motivation Based on these, Locke summarizes goal setting to follow the following steps: Goal setting starts with values and value judgment This is followed by emotions and desires This is then followed by intentions of GOAL With intentions, the individual responds, acts or performs This leads to consequences, feedback or reinforcement

Principles of goal setting 1. The goals must be specific – not vague or

Principles of goal setting 1. The goals must be specific – not vague or general. Specific goals result to higher levels of performance 2. Performance targets must be challenging rather than easy or routine. 3. At the same time, goals should be reachable and not so difficult that pursuing them becomes frustrating 4. The individual should e provided with process and outcome feedback. This should be objective and timely

 5. Employee must be commitment to the achievement of the goal. Commitment will

5. Employee must be commitment to the achievement of the goal. Commitment will be greater if the goal is specific, and/or if there is some incentives 6. Employee must own and accept the goal. This means having them participate in goal setting 7. Self efficacy – the employee must perceive or believe that he/she can successfully accomplish a specific goal. People exhibiting a high level of selfefficacy tend to set more challenging personal goals and are more likely to achieve them

The application of goal setting to organizational system performance Goal setting is the basis

The application of goal setting to organizational system performance Goal setting is the basis used for traditional MBO, planning, control, personnel appraisal systems, and overall organizational systems The application of goal setting to the organizational systems generally follows a series of steps similar to MBO or performance appraisal

The steps Set overall objectives and action plans ( specific, owned and accepted) Develop

The steps Set overall objectives and action plans ( specific, owned and accepted) Develop the organisation Set individual objectives and action plans Conduct periodic appraisals and provided feedback on progress and make adjustment Conduct final appraisal and results

MANAGING PERFOMANCE THROUGH REINFORCEMENT and REWARDS

MANAGING PERFOMANCE THROUGH REINFORCEMENT and REWARDS

Reinforcement and Punishment Reinforcement and punishment play a central role in the learning process

Reinforcement and Punishment Reinforcement and punishment play a central role in the learning process and provides principles for behaviour performance management Most learning experts agree that reinforcement is more important than punishment and is the single most important concept and application principles The first theoretical treatment of reinforcement in learning is by pioneering psychologist Edward Thorndike’s classical law of effect

Law of effect/ law of behaviour Thorndike’ s law of effect ( sometimes called

Law of effect/ law of behaviour Thorndike’ s law of effect ( sometimes called the law of behaviour) stated that “ of several responses made to the same situation, those which are accompanied or closely followed by satisfaction (reinforcement) … will be more likely to recur; those that are closely followed by discomfort ( punishment)… will be less likely to recur

Law of effect/ law of behaviour (cont. . ) Desirable and reinforcing , consequences

Law of effect/ law of behaviour (cont. . ) Desirable and reinforcing , consequences will increase the strength of the preceding behaviour and increase its probability of being repeated in future Undesirable, or punishing, consequences will decrease the strength of the preceding behaviour and decrease the probability of being repeated in the future Sometimes a third law is added; if the behaviour is followed by no consequence (neither positive or negative contingent consequences) the behaviour will extinguish over time (this is called extinction principle or law)

Critique of reinforcement theory There may be some occasions when a person’s cognitive rationalizations

Critique of reinforcement theory There may be some occasions when a person’s cognitive rationalizations might neutralize the laws of behaviour For example, people with inaccurate self efficacy beliefs may not be affected by the consequences of their actions. Those with inaccurate or false self efficacy beliefs who experience performance failures time after time will not learn from their mistakes or respond to the manages comments on how to correct the problem. - They have high self-efficacy (they believe that their behaviours are appropriate to successfully accomplish the task but they are wrong

Differences btw reinforcement and reward Reinforcement in behavioral management is defined as anything that

Differences btw reinforcement and reward Reinforcement in behavioral management is defined as anything that both increases the strength and tends to induce repetition of the behaviour that preceded the reinforcement A reward on the other hand is simply something that the person who presents it deem to be desirable

Differences btw reinforcement and reward Cont…) Something is reinforcing if it strengthens the behaviour

Differences btw reinforcement and reward Cont…) Something is reinforcing if it strengthens the behaviour preceding it and induces repetition E. g. . a manager may ostensibly reward an employee who found an error in a report by publicly praising the employee. Yet on examination it is found that the employee is embarrassed and chided by coworkers and error finding behaviour decreases in future In this example, reward is not reinforcing

Differences between Positive, negative reinforcers, and punishment

Differences between Positive, negative reinforcers, and punishment

 It must be understood that reinforcement, positive or negative, strengthens the behaviour and

It must be understood that reinforcement, positive or negative, strengthens the behaviour and increases the probability of repetition Positive reinforcement strengthens and increases behaviour by the presentation of desirable consequence Giving recognition and attention to an employee for successful completion of a task could be an example of positive reinforcement (if this does in fact strengthen and subsequently increase this task behaviour

 Negative reinforcement strengthens and increases behaviour by the threat of use of undesirable

Negative reinforcement strengthens and increases behaviour by the threat of use of undesirable consequences or the termination or withdrawal of desirable consequence A worker is negatively reinforced for getting busy when the supervisor walks through the area. Getting busy terminates being ‘chewed out” by the supervisor

 Negative reinforcement strengthen and increases behaviour, whereas punishment weakens and decreases behaviour However,

Negative reinforcement strengthen and increases behaviour, whereas punishment weakens and decreases behaviour However, both are considered to be forms of negative control of behaviour Negative reinforcement is actually a form of social blackmail, because the person will perform in a certain way in order not to be punished

Punishment Negative reinforcement is not equal to punishment Punishment is anything that weakens behaviour

Punishment Negative reinforcement is not equal to punishment Punishment is anything that weakens behaviour and tends to decrease its subsequent frequency. Punishment consists of the application of an undesirable or noxious (harmful) consequences, but can also be defined as the withdraws of desirable consequences Thus taking away certain organizational privileges from a manager who has poor performance record could be thought to be punishment

Punishment For punishment to be effective, there must be a weakening of and a

Punishment For punishment to be effective, there must be a weakening of and a decrease in, the behaviour that preceded it. Just as a supervisor criticizes a subordinate and thinks this is a punishment, it is not necessarily the case unless the behaviour that proceeded the criticism weakens and decreases in subsequent frequency criticism can be reinforcing especially if the employee needs attention and thinks that by attracting criticism, he will get attention

Criticism against punishment Use of punishment tends to cause many undesirable side effects The

Criticism against punishment Use of punishment tends to cause many undesirable side effects The punished behaviour tends to be only temporarily suppressed rather than permanently changed, and the punished person tends to get anxious or uptight and resentful of the punisher Thus the use of punishment as a strategy to control behaviour is a lose-lose approach Unless punishment is severe, the behaviour will reappear very quickly, but the more severe the punishment, the greater the side effects such as hate or revenge

Guidelines for Administering punishment To minimise the problems with using punishment: 1. Persons administering

Guidelines for Administering punishment To minimise the problems with using punishment: 1. Persons administering it must always provide an acceptable alternative to the behaviour that is being punished. If they do not, the undesirable behaviour will tend to reappear and will cause fear and anxiety in the person being punished 2. The punishment must be administered as close in time to the undesirable behaviour as possible – reprimanding a subordinate a week after the rule was broken is not effective

3. When punishment is administered, it should be remembered that there is also an

3. When punishment is administered, it should be remembered that there is also an effective on the relevant others who are observing the punishment – give punishment in private if possible

Guidelines for punishment ( Cont) 4. Always attempt to reinforce instead of punish in

Guidelines for punishment ( Cont) 4. Always attempt to reinforce instead of punish in order to change behaviour. The use of reinforcement strategy is usually more effective in accelerating desirable behavior than the use of punishment is for decelerating undesirable behaviours because no bas side effect accompany reinforcement

Guidelines for Discipline (cont…) In order to succeed, punishment must be used in an

Guidelines for Discipline (cont…) In order to succeed, punishment must be used in an orderly, rational manner – not, as is too often the case, as a handy outlet for manger or frustration. If used with skill and concern for human dignity. It can be useful In behaviour management, discipline is a learning experience, never purely a coercive experience to prove mastery or control over others. , punishment should give advance warning (it is red hot – don’t touch) and be immediate, consistent and impersonal ( it burns everyone who touches)

Guidelines for Punishment (cont…) Punishment should be situational applied and progressive – punishment for

Guidelines for Punishment (cont…) Punishment should be situational applied and progressive – punishment for a 19 year old should be different form a senior manager. The progressive discipline many start off with clarifying verbal discussion, then move to written contract signed by the person being discipline and next move to time off with or without pay, and then only as a last step, and in termination

Role of Organisational Reward Systems Because positive reinforcement consequences are so important to employee

Role of Organisational Reward Systems Because positive reinforcement consequences are so important to employee behaviour, the Organisational systems becomes critical to behaviour performance management Organisations may have excellent technology, good SP, job descriptions, comprehensive training programmes, but unless the people are reinforced for performance related behaviors, these will have little impact

 The challenge of performance management is to understand this behaviour reality, eliminate the

The challenge of performance management is to understand this behaviour reality, eliminate the reinforcers for undesirable behaviours, and more importantly and effectively, reinforce the desirable behaviour

 There are two types of reinforcers: Financial Non financial

There are two types of reinforcers: Financial Non financial

Money as a reinforcer Money to employees can be determined in several ways Base

Money as a reinforcer Money to employees can be determined in several ways Base pay ( the traditional approach) Merit pay ( for performance) New pay plan ( for performance, skill, competency, etc) Base pay The only reinforcing function provided here the employee walking up to the cash office or banks to pick their pay checks and rarely do employee see it as a motivator to improve performance

Merit pay Money, if well administered can act as a reinforcer – it has

Merit pay Money, if well administered can act as a reinforcer – it has a positive effect on employees behaviour However, its shortcomings will be seen if not well implemented such as poor: measurement of performance lack of acceptance of supervisory feedback limited desirability of merit increases that are too small

 Lack of linkages between merit pay and performance Potential unintended consequences such as

Lack of linkages between merit pay and performance Potential unintended consequences such as focusing on merit related activities and behaviours Some compensation practitioners argue that merit pay only makes employees unhappy because they view it as unfair way to reward for past performances instead of being geared towards improving future performance

 A laboratory study of merit pay led to the following conclusions: 1. Unless

A laboratory study of merit pay led to the following conclusions: 1. Unless a merit pay raise is at least 6 to 7 percent of base pay, it will not produce the desired effect on employee behaviour 2. Beyond a certain point, increases in merit-rise size are unlikely to improve performance 3. When merit pay raises are too small, employee morale will suffer

 4. Cost of living adjustments, seniority adjustments, and other non-merit components of a

4. Cost of living adjustments, seniority adjustments, and other non-merit components of a raise should be clearly separated from the merit component 5. Smaller percentage raises given to employees at the higher ends of base-pay ranges are demotivating In other words therefore, both the traditional base and merit-pay plans have a problem

 The new pay plan This seem to overcome a lot of problems associated

The new pay plan This seem to overcome a lot of problems associated with the traditional base pay and the merit pay as a means of rewarding employees It is said to increase performance by up to 100 per cent in terms of net returns to the organisation - i. e. for every one dollar pay out, the gain was more than $2

Non financial rewards Although money is the most obvious Organisational reward, non financial rewards

Non financial rewards Although money is the most obvious Organisational reward, non financial rewards are receiving increased attention Survey has shown that employees ranking non financial rewards above the financial rewards A study conducted by Peterson and Luthans found that financial incentives initially has a bigger effect on profits, customer service, and employee retention, but over time, except for employee retention, both financial and nonfinancial incentives had an equal significant impact

 In other words therefore, there is little doubt that the nonfinancial rewards can

In other words therefore, there is little doubt that the nonfinancial rewards can be very powerful, but are often overlooked as a reinforcer in behaviour performance management

Categories of non financial rewards Consumables – coffee break treats, free lunches, company dinners,

Categories of non financial rewards Consumables – coffee break treats, free lunches, company dinners, company outing, time off, entertainment events, education classes Manipulatables – desk accessories, company car, trophies, clothing, club privileges, use of company facilities for personal projects

 Visual and auditory – office with space, internet for personal use, decorated work

Visual and auditory – office with space, internet for personal use, decorated work environment, private office, library Job design – job with more responsibility, job rotation, special assignment, training, flexible work hours, participation in decisions, team works, self management Formal recognition – for achievement, feature in in-house newsletters, celebrations, letter of commendation, acknowledgment in front of others

 Performance feedback – nonverbal and verbal performance information, written reports, performance appraisals, performance

Performance feedback – nonverbal and verbal performance information, written reports, performance appraisals, performance charts and graphs, Social recognition and attention – friendly greeting, soliciting for suggestions, compliments of work progress, smile, verbal/non verbal recognition or praise

Major steps in behaviour performance management 1. 2. 3. 4. 5. Identify performance behaviours

Major steps in behaviour performance management 1. 2. 3. 4. 5. Identify performance behaviours Measurement of behaviour Analysis behaviour Develop intervention strategies Evaluate to ensure performance improvement

1. Identify performance behaviours Have to do with quantity and quality of products, delivery

1. Identify performance behaviours Have to do with quantity and quality of products, delivery of services by operating employees This could be done through having the person(s) closest to the job determine the critical behaviours - the jobholder, supervisory or team Or having a behaviour audit done by an expert systematically analyzing each job

 Behaviours to be identified include direct performance behaviour e. g. absenteeism, or attendance,

Behaviours to be identified include direct performance behaviour e. g. absenteeism, or attendance, promptness or tardiness, doing/not doing the job per the procedure that leads to quality/quantity outcomes, time wasted through socializing, playing games on computers, disrupting coworkers Only those behaviours that can be measured and have a significant impact on performance will be included Those behaviours contribute to performance need to be strengthened and dysfunctional behaviours need to be weakened

Step 2: Measurement of behaviour �How often are the performance behaviours identified in step

Step 2: Measurement of behaviour �How often are the performance behaviours identified in step 1 occurring under existing conditions �A baseline measure is obtained by determining (either by observing and counting or by extracting from existing records) the number of times the identified behaviour is occurring under existing conditions �The measure will review whether the behaviour indentified is occurring much less or much more frequently than anticipated �OR that the problem is much bigger than was thought to be the case

 Sometimes, the baseline measure may cause the “problem” to be dropped because its

Sometimes, the baseline measure may cause the “problem” to be dropped because its low (or high) frequency is now deemed not to need change The purpose of the baseline measure is to provide objective frequency data on the critical behaviour

Step 3: functional analysis of the behaviour �Once the performance behaviour has been identified

Step 3: functional analysis of the behaviour �Once the performance behaviour has been identified and a baseline measure is obtained, a functional analysis is performed. �A functional analysis identifies: � What are the antecedent (A) � cues of the performance behaviour (B) � what are the contingent consequences ( C) �This A–B-C analysis is a necessary prerequisite to development an effective intervention strategy �Antecedents and consequences are vital to understanding, prediction and control of human behaviour in organisation

Example of functional analysis of absenteeism behaviours Antecedents cues Illness/accidents Hangover Lack of transport

Example of functional analysis of absenteeism behaviours Antecedents cues Illness/accidents Hangover Lack of transport Traffic Lack of house help Family problems Company policies Seniority/age behaviour Getting up late Staying at home Drinking Working at home Visiting Caring for a sick child consequences Discipline programme Verbal reprimand Written reprimand Layoffs Dismissal Social consequences from coworkers Avoidance of work

 The functional analysis brings out the problem solving nature of the approach Both

The functional analysis brings out the problem solving nature of the approach Both the antecedent cues that emit the behaviour and sometimes control it, and the consequences that are currently making the behaviour must be identified and understood before an effective intervention strategy can be developed

Step 4: developing intervention strategy The goal of the intervention is to strengthen and

Step 4: developing intervention strategy The goal of the intervention is to strengthen and accelerate functional performance behaviours and/or weaken and decelerate dysfunctional behaviors There are several strategies that can be used, and the main ones are: positive reinforcement strategy Punishment-positive reinforcement strategy

Positive reinforcement strategy �Positive and not negative reinforcement is recommended as an effective intervention

Positive reinforcement strategy �Positive and not negative reinforcement is recommended as an effective intervention strategy in organizational behaviour modification (O. B Mod. ) �Reason – positive reinforcement represent a form of positive control of behaviour whereas negative reinforcement represents a form of negative control of behaviour

 It is argued that positive control through positive reinforcement intervention strategy s much

It is argued that positive control through positive reinforcement intervention strategy s much more effective and longer lasting than the negative control It creates a much healthier and productive organizational climate Positive reinforcers – money, feedback, social recognition, a combination of these

A punishment-positive reinforcement strategy Though positive reinforcement strategy is said to be the most

A punishment-positive reinforcement strategy Though positive reinforcement strategy is said to be the most effective, realistically, it is recognized that in some cases, the use of punishment to waken and decelerate undesirable behaviour cannot be avoided For example in the case of unsafe behaviour that needs to be decreased immediately But as said earlier, many negative effects accompany the use of punishment (hate, revenge) and should be avoided if possible

Step 5: Evaluation to Ensure Performance Improvement Purpose – to make sure the intervention

Step 5: Evaluation to Ensure Performance Improvement Purpose – to make sure the intervention does in fact lead to performance improvement If it doe not, then another analysis and/or intervention is made This makes the program credible, accountable, and ensures that everything that is tried has to be proved to have value Evaluation should e done at all 4 level ( reaction, learning, behaviour change, and performance improvement )

1. Reaction level Do people using the approach and those having it used on

1. Reaction level Do people using the approach and those having it used on them like it Can provide information for planning future programmes Positive reaction helps ensure organizational support Is a springboard for enhancing other level of evaluation Can provide useful comparative data between units and across time

2. Learning Level � Do people using the approach understand theoretical background and underling

2. Learning Level � Do people using the approach understand theoretical background and underling assumption and the meaning of, and reasons for, the steps in the model. �If they do, the model will again tend to be used effectively

Behaviour change �Are behaviours actually being changed? � Starting from step 2 where you

Behaviour change �Are behaviours actually being changed? � Starting from step 2 where you get important data for this level of evaluation

4. Performance improvement �The major purpose of O. B. Mod. is not just to

4. Performance improvement �The major purpose of O. B. Mod. is not just to receive favourable reaction, learn concepts and change behaviour. These are important only to the extent that they contribute to the overriding purpose – performance improvement �Measures used are – data on absenteeism, quality, quantity, turnover, customer complains/satisfaction. Safety, sales revenue, RRI

Applications of Behaviour Management �Research on the effectiveness of behaviour and performance management in

Applications of Behaviour Management �Research on the effectiveness of behaviour and performance management in general and its application by various researcher can be summarized as follows: �Employee productivity �Employees productivity or task completion is positively affected by behaviour modification techniques. �The performance improvement is for both quantity and quality of employees output and cuts across virtually all organizational settings and all intervention techniques

 Absenteeism and tardiness This reduces especially if small monetary incentives and or punishment

Absenteeism and tardiness This reduces especially if small monetary incentives and or punishment is used Safety and accidents prevention Reduction in identifiable hazards or increasing safety behaviours - give incentives for those who meet safety goals

 Sales performance A behaviour performance management approach, in which important selling behaviours that

Sales performance A behaviour performance management approach, in which important selling behaviours that can are identified, measured, analyzed, intervened in , and evaluated is said to be more effective NB: These results are not exhaustive but represent the growing application of the behaviour performance management approach