Appraising and Rewarding Performance

Appraising and Rewarding
Performance
EDUC 203
Reported by：HONEYLYN U. HERANA
GROUP 2
" The typical persons rate his or her performance at
about the 80th percentile. so, people tend to believe
they're doing better than most of the peope around
them."
-Edward E. Lawler
"Managers should give constructive feedback

to employees, so that they can improve their
performance."
-Sherry E. Moss and Juan I.
Sanchez
This report focuses on how
incentives are combined with other
parts of wage and salary
administration to build a complete
reward system that encourages
motivation.
Complete Program
Three incentive foundation of a complete
pay program:
1. Base Pay (according to level of
responsibility and market pressure)
2. Performance Rewards (based on
contribution of the employee)
3. Profit Sharing (rates the organization in
terms of its general economic performance)
The three systems are complimentary because each
reflects a different set of factors in total situation.
Base pay and skill-based pay motivate employees to progress

to jobs of higher skills and responsibility.
Performance pay is an incentive to improve performance on

the job.
Profit sharing motivates workers toward teamwork to

improve an organization's performance.
Money as Means of
RewaRding
eMployees
Question # 1
Why Money has Social Value?
Money has Social Value
Certainly, money is valuable because of the goods

and services that it will purchase and also, money is a
social medium of exchange. Money has status value when
it is being received and spent. It represents to employees
what their employer thinks of them. It is also an idication
of one employee's status relative to that of other employees.
Application of the Motivational Models
vMoney Satisfies many Drives and Needs
Drives Achievement-oriented employees maintain a
symbolic scorecard in their minds by monitoring their total pay
and comparing it with that of others. Their pay is a measure of
their accomplishments.
Needs Pay is viewed primarily as a hygiene factor, although
it may have at least short-term motivational value as well.
Expectancy Expectancy Theory states that
Valence X Expectancy X Instrumentality = Motivation
This means that if money is to act as a strong motivator, an
employee must want more of it (valence), must believe that
effort will be successful in producing desired performance
(expectancy), and must trust that the monetary reward will
follow better performance (instrumentality).
Money often has high valence. This dual role means that most
employees do respond to money as a reward.
Behavior Modification The two desired conditions for applying
contingent rewards under behavior modification principles,
employees can see that there is a direct connection between
performance and reward.
Level of
Level of Instrumentality
Situation Economic
Performance Condition
Reward
1 HIGH HIGH Desirable
2 HIGH LOW Undesirable
3 LOW HIGH Undesirable
4 LOW LOW Desirable
Equity Employer must understand the employee's perspective.

Cost-Reward Comparison
The employee identifies and compares
personal costs and rewards to
determine the point at which they are
equal.
Additional Consideration in the Use of Money
Extrincsic and Intrincsic Rewards
Money is essentially an extrincsic reward rather than an intrincsic one, so it
is easily administered in behavior modification programs.
Four Interdependent Paths that lead to Intrincsic motivation:

1. A sense of meaningfulness
2. A sense of choice
3. A sense of competence
4. A sense of progress
Additional Consideration in the Use of Money
Compliance with the Law Compensation management is also
complicated by the need to comply with a wide range of federal
and state laws.
Comparable Worth Seeks to guarantee equal pay for equal work.
This approach demands that reward systems be designed so people
in different but comparable jobs those of equal value to the
employer receive similar levels of pay.
Other Factors Equality, secrecy, control, and flexibility are
considerations.
Organizational Behavior and Performance Appraisal
Management by Objectives (MBO) is cyclical process that often consists of
four steps as a way to attain desired performance:
1. Objective setting
-joint determinaton by manager and employee of appropriate levels of
future performance for the employee, within the context of overall unit goals
and resources.
2. Action planning
-participated or even independent planning by the employee as to how to
reach those objective.
Organizational Behavior and Performance Appraisal
3. Periodic reviews
-joint assessment of progress toward objectives by manager and employee,
perform informally sometimes spontanously
4. Annual evaluation
-more formal assessment of success in ahieving the employee's annual
objectives, coupled with a renewal of the planning cycle.
Performance Appraisal
Performance Appraisal Plays a key role in reward
systems.
Appraisal is necessary in order to do the following;

1. Allocate scarce resources in a dynamic environment.
2. Motivate and reward employees.
3. Give employees feedback about their work.
4. Maintain fair relationships within groups.
5. Coach and develop employees.
6. Comply with Regulations
Performance Appraisal
The Performance Appraisal System
• is an organizational necessity
• is based on well-defined, objectives criteria
• is based on careful job analysis
• uses only job-related criteria
• is supported by adequate studies
• is applied by trained, qualified raters
• is applied objectively throughout the organization
Appraisal Approaches
Self-Appraisal
This is an opportunity for the employee to be
introspective and to offer a personal assessment of his or
her accomplishments.
Performance Feedback
Feedback enhances an employee's self-image and
feeling of competence. It leads to both improved
performance and improved attitudes if handled properly
by the manager.
thank you ! !

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Appraising and Rewarding

Reported by：HONEYLYN U. HERANA

"Managers should give constructive feedback

Base pay and skill-based pay motivate employees to progress

Performance pay is an incentive to improve performance on

Profit sharing motivates workers toward teamwork to

Certainly, money is valuable because of the goods

Equity Employer must understand the employee's perspective.

Four Interdependent Paths that lead to Intrincsic motivation:

Appraisal is necessary in order to do the following;

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