8. CHAPTER 8 Motivation Tools II: Performance Appraisal, Pay, and Careers Copyright © 1999 Addison Wesley Longman 2 FIGURE 8.1 Motivation Tools

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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



Performance Appraisal

Evaluating performance to encourage worker motivation and performance and to provide information to be used in managerial decision making.



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.



FIGURE 8.2 Choices in Developing an Effective Performance Appraisal System



Who Appraises Performance

• Self-Appraisal

• Peer Appraisal

• Subordinate Appraisal

• Customer/Client Appraisal

• Multiple Raters

• Superior Appraisal

• 360-degree Appraisal



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



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.



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.



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.



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.



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.



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.



Definition

Merit Pay: A plan that bases pay entirely on an individual’s performance.



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?



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.



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.



Motivation Through Career Opportunities

Career: The sum of work-related experiences throughout one’s lifetime.



Types of Careers

• Steady-State Career

• Linear Career

• Spiral Career

• Transitory Career



Career Stages

• Preparation for Work

• Organizational Entry

• Early Career

• Midcareer

• Late Career



FIGURE 8.4 Career Stages



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.



Careers - Key Term

• Career Plateau - a position from which the chances of obtaining a promotion or a job with more responsibility become very small.



Career Challenges for the 1990s and Beyond

• Ethical Career Management

• Career Management that Supports Diversity

• Career Management in an Era of Dual-Career Couples

Documents

8. CHAPTER 8 Motivation Tools II: Performance Appraisal, Pay, and Careers Copyright © 1999 Addison Wesley Longman 2 FIGURE 8.1 Motivation Tools