Motivation and performance
management
Outline
•Management styles
•Motivation
•Performance Management
• Feedback • Appraisal • Termination 2
Theory X
◦ Lower order needs
◦ Primary interest is money ◦ Top down
◦ Fear and intimidation
◦ Pessimistic view of employees ◦ Authoritarian style
Theory Y
◦ Higher order needs
◦ Primary interest is self actualization ◦ Inclusive/empowered
◦ Self motivated
◦ Employees want responsibility and freedom ◦ Supportive style
Theory X Mangers
believe employees Theory Y Managers believe employees
Want to be involved
Can make decisions & think
for themselves
Share ownership of tasks Will find work more
rewarding if given
responsibility & and variety of tasks
Have good ideas
Can engage in some level of
self-management
Need to be controlled Don’t like to work
Need to be pushed to be
more productive
Need incentive schemes
Have to be told to do things
“Theory Z”
◦ Focus on quality and costs
◦ Emphasis on continued training
◦ Team approach/collective decision making
◦ Informal control w/ formal measures of quality ◦ Long-term employment
Motivation – satisfaction
Hygiene – dissatisfaction, demotivators
Motivation factors
◦ Achievement ◦ Recognition ◦ Work itself ◦ Responsibility ◦ Promotion ◦ Growth
Hygiene factors: presence is necessary,
absence is a demotivator
◦ Company policy◦ Supervision
◦ Working conditions ◦ Pay and benefits
◦ Relationships w/ peers ◦ Personal life
◦ Relationships w/ subordinates ◦ Status
Control v. Quality focused
Performance feedback - STAG
Quality focused feedback
◦ Positive
◦ Redirection ◦ Negative
aka “evaluation”
The process by which managers ensure that
employees contribute to the success of the firm
You will evaluate subordinates
◦ With a process and a plan, or
◦ In a haphazard, ad hoc, useless, and demoralizing
Your good employees will
judge you based on how you
treat your bad employees
Control focused Quality focused
Old school supervision Primarily reactive
Based on compliance Supervisor (boss) is to
tell you what to do
New supervision
paradigm
Proactive
Based on trust and
fairness
Supervisor (coach) is to
ensure you succeed
Control focused Quality focused A cost Take orders Do your job Manager is responsible for improvement Focus on correcting mistakes
Little need for training Biggest fear: upsetting
the boss
An asset
Ask questions
Critical part of system Everyone is responsible
for improvement
Focus on building
strengths
Training essential Biggest fear: not
meeting expectations
Control focused Quality focused Emphasis ◦ Means/tasks ◦ Reactive ◦ Correcting problems Supervisors ◦ Give orders
◦ Use formal power
Structure ◦ Bureaucratic ◦ Adversarial Emphasis ◦ Ends/accomplishments ◦ Proactive ◦ Quality Supervisors ◦ Ask questions
◦ Use informal power
Structure
◦ Flat
◦ Collegial
Control focused Quality focused
Do the job “right” Demotivating Productivity is less than potential Exceed expectations Motivating Productivity can be outstanding Milligan, ‘08
Feedback needs to be STAG
◦ Specific ◦ Timely
◦ Appropriate ◦ Genuine
Specific Feedback
◦ Based on predetermined standards ◦ Clear
◦ Precise
◦ Unambiguous, avoid “heckuva job, Brownie” ◦ Quantifiable
Timely feedback
◦ Immediately after an event
◦ Four compliments for every criticism
Appropriate feedback
◦ Relates to the task
◦ Relates to the mission/goals of the firm ◦ Relates to the goals of the employee
◦ Considers the performance, the supervision, and
the circumstances
◦ Appropriate type
Positive
Redirective Negative
Genuine feedback
◦ Must be sincere!!! ◦ Do not patronize ◦ Do not fabricate ◦ Be natural ◦ Shouldn’t be a chore
Positive
Redirective
Negative
Good Performance
Unacceptable Performance
Out of control of
employee Under control of employee
Positive
Fundamental theorem of attribution
◦ Blame others
◦ Blame the situation
Tendency of employees to blame the
situation
Tendency of supervisors to blame employee
Employee expects redirective feedback but
gets negative feedback
Julie, at the clothing store
Bill, the construction worker
Ted, the short order cook
Julie, a full-time employee at a clothing store
decided to take initiative in improving
customer service by greeting each customer
at the door. Even though the intention was
good, there are now not enough employees
to help customers make purchasing
Bill is a member of a four-person
construction crew building new homes. All
too frequently there are days (usually
Mondays and Fridays) when his work is clearly
unacceptable. You have talked to him with
The performance expectation for Ted, the
short order cook in the conference center, is
to prepare the grill items in 3 minutes or less.
This cook has met and exceeded these
expectations for several months, but recently,
has been barely meeting and often failing to
meet the expectation thus allowing for very
long lines to build up during 12-2 p.m.
Jean was hired three weeks ago to fill a
vacancy at the local computer store. For the
first 2½ weeks, Jean was doing exceptionally
well with her training and seemed to
understand what she needed to know about
the products focused on during each day’s
training. Recently, however, she seems to be
confused about the new products and even
some of those previously discussed.
Good Performance
Unacceptable Performance
Out of control of
employee Under control of employee
Positive
Redirection or Negative
Am I absolutely certain that the poor performance is
not caused by the situation?
If NO, use redirection
If YES, provide negative feedback
Show/convince the employee that it is not the situation Employee must understand that it is their action, not the situation, that causes the poor performanceRedirection feedback
Begin with (and continue) positive feedback on
expectations met or exceeded
Explain the unacceptable performance. Or better yet,
get them to
Employee is not a fault. This is not a reprimand
Need to change – skill, knowledge, behavior, actions,
resources, procedures
Goal of redirection is to SUCCEED
Negative feedback
Begin with (and continue) positive feedback on expectations met or exceeded Explain the unacceptable performance. Change is expected Employee must recognize that the situation is not the cause, their behavior is Consequences – absence of positive feedback, reminder, reprimand, punishment Pain of consequence must be sufficient to change behavior Goal of negative feedback is still SUCCESSPerformance Appraisal
Formal
Periodic Predetermined Standards based Informal
Frequent Timely More positive than negativeFormal Performance Appraisal
Periodic – annual, quarterly, end of season
Employee and manager need to know standards
Forms, incident reports, performance evaluations Restrict scope to 3‐4 issues
Have employee do self evaluation
Employee’s views first, manager second
Reconcile differences
Develop action plan – focus on future, not past
End on positive feedback
Written and signed summary
Performance Appraisal Tips
Establish feedback policy early Formal/informal, positive/redirection/negative Location is important Positive – Public Redirective – Usually private Negative – Always private (caveats) Never surprise employee with negative feedback Avoid confrontation – focus on behavior, not the person Correct only a few things at a time Just as important for small businessesA note on consequences
Should be predetermined
Should be sufficiently painful to motivate change