8. chapter 8 motivation tools ii: performance appraisal, pay, and careers copyright © 1999 addison...
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Copyright © 1999 Addison Wesley Longman
2 CHAPTER 8 Motivation Tools II: Performance Appraisal, Pay, and Careers
FIGURE 8.1 Motivation Tools
Copyright © 1999 Addison Wesley Longman
3 CHAPTER 8 Motivation Tools II: Performance Appraisal, Pay, and Careers
Performance Appraisal
Evaluating performance to encourage worker motivation and performance and to provide information to be used in managerial decision making.
Copyright © 1999 Addison Wesley Longman
4 CHAPTER 8 Motivation Tools II: Performance Appraisal, Pay, and Careers
Developing A Performance Appraisal System
Choices to be made:
• The mix of formal and informal appraisals.
• What factors to evaluate.
• Methods of appraisal
• Who appraises performance.
Copyright © 1999 Addison Wesley Longman
5 CHAPTER 8 Motivation Tools II: Performance Appraisal, Pay, and Careers
FIGURE 8.2 Choices in Developing an Effective Performance Appraisal System
Copyright © 1999 Addison Wesley Longman
6 CHAPTER 8 Motivation Tools II: Performance Appraisal, Pay, and Careers
Who Appraises Performance
• Self-Appraisal
• Peer Appraisal
• Subordinate Appraisal
• Customer/Client Appraisal
• Multiple Raters
• Superior Appraisal
• 360-degree Appraisal
Copyright © 1999 Addison Wesley Longman
7 CHAPTER 8 Motivation Tools II: Performance Appraisal, Pay, and Careers
Problems and Biases in Performance Appraisal
• Stereotypes
• Primacy Effect
• Contrast Effect
• Halo Effect
• Harshness, Leniency, and Average Tendency Biases
• Knowledge-of-Predictor Bias
• Similar-to-me Effect
Copyright © 1999 Addison Wesley Longman
8 CHAPTER 8 Motivation Tools II: Performance Appraisal, Pay, and Careers
Advice to Managers
• Use frequent, informal performance appraisals and periodic formal ones to help motivate your subordinates and to make decisions about how to distribute outcomes, whom to promote, and how to assign tasks. Informal appraisals can be used to motivate and give feedback on a day-to-day basis.
Copyright © 1999 Addison Wesley Longman
9 CHAPTER 8 Motivation Tools II: Performance Appraisal, Pay, and Careers
Advice to Managers
• Performance appraisals should focus on the assessment of behaviors or results. Performance appraisals should not focus on the assessment of traits, for traits can be difficult to assess objectively and may not be related to actual job behaviors or performance.
Copyright © 1999 Addison Wesley Longman
10 CHAPTER 8 Motivation Tools II: Performance Appraisal, Pay, and Careers
Advice to Managers
• Be aware that one or more perception problems may influence your appraisal of a person’s performance. Carefully and honestly examine your evaluations to be sure that personal biases have not affected your judgments.
Copyright © 1999 Addison Wesley Longman
11 CHAPTER 8 Motivation Tools II: Performance Appraisal, Pay, and Careers
Advice to Managers
• Develop and use performance measures that accurately assess behaviors or results. Only accurate performance appraisals result in high levels of motivation and performance and in good decisions.
Copyright © 1999 Addison Wesley Longman
12 CHAPTER 8 Motivation Tools II: Performance Appraisal, Pay, and Careers
Pay as a Motivational Tool
• Operant Conditioning - to encourage the learning of desired organizational behaviors, positive reinforcers or rewards should be distributed to workers contingent on performance.
• Need Theory - when pay is contingent on performance, workers are motivated to perform to help satisfy their needs.
Copyright © 1999 Addison Wesley Longman
13 CHAPTER 8 Motivation Tools II: Performance Appraisal, Pay, and Careers
Pay as a Motivational Tool
• Expectancy Theory - pay is an outcome that has high valence for most workers and instrumentality must be high for motivation to be high.
• Equity Theory - outcomes should be distributed in proportion to inputs.
• Procedural Justice Theory - methods used for distributing pay need to be fair.
Copyright © 1999 Addison Wesley Longman
14 CHAPTER 8 Motivation Tools II: Performance Appraisal, Pay, and Careers
Definition
Merit Pay: A plan that bases pay entirely on an individual’s performance.
Copyright © 1999 Addison Wesley Longman
15 CHAPTER 8 Motivation Tools II: Performance Appraisal, Pay, and Careers
Merit Pay Issues
• Should merit pay be based on individual, group, or organizational performance?
• Should merit pay be in the form of a salary increase or a bonus?
Copyright © 1999 Addison Wesley Longman
16 CHAPTER 8 Motivation Tools II: Performance Appraisal, Pay, and Careers
Advice to Managers
• To have high levels of motivation, pay should be based on performance whenever possible.
• When individual performance can be appraised accurately and cooperation across workers is adequate, pay should be based on individual levels of performance to maximize motivation.
Copyright © 1999 Addison Wesley Longman
17 CHAPTER 8 Motivation Tools II: Performance Appraisal, Pay, and Careers
Advice to Managers
• When individual performance cannot be appraised or when a higher level of cooperation across workers is necessary, pay should be based on group or organizational performance.
Copyright © 1999 Addison Wesley Longman
18 CHAPTER 8 Motivation Tools II: Performance Appraisal, Pay, and Careers
Motivation Through Career Opportunities
Career: The sum of work-related experiences throughout one’s lifetime.
Copyright © 1999 Addison Wesley Longman
19 CHAPTER 8 Motivation Tools II: Performance Appraisal, Pay, and Careers
Types of Careers
• Steady-State Career
• Linear Career
• Spiral Career
• Transitory Career
Copyright © 1999 Addison Wesley Longman
20 CHAPTER 8 Motivation Tools II: Performance Appraisal, Pay, and Careers
Career Stages
• Preparation for Work
• Organizational Entry
• Early Career
• Midcareer
• Late Career
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21 CHAPTER 8 Motivation Tools II: Performance Appraisal, Pay, and Careers
FIGURE 8.4 Career Stages
Copyright © 1999 Addison Wesley Longman
22 CHAPTER 8 Motivation Tools II: Performance Appraisal, Pay, and Careers
Careers -- Key Terms
• Realistic Job Preview - occurs when an organization gives job applicants an accurate picture of the job and the organization by including both the positive features and negative ones.
• Career goals - the experiences, positions, or jobs that workers would like to have during their careers.
Copyright © 1999 Addison Wesley Longman
23 CHAPTER 8 Motivation Tools II: Performance Appraisal, Pay, and Careers
Careers - Key Term
• Career Plateau - a position from which the chances of obtaining a promotion or a job with more responsibility become very small.
Copyright © 1999 Addison Wesley Longman
24 CHAPTER 8 Motivation Tools II: Performance Appraisal, Pay, and Careers
Career Challenges for the 1990s and Beyond
• Ethical Career Management
• Career Management that Supports Diversity
• Career Management in an Era of Dual-Career Couples