Evaluation, Feedback and

Reward

CHARLENE O. DUQUE – EDM206

 INTRODUCTION

Organization use a variety of

rewards to attract and retain people
and to motivate them to achieve their
personal and organizational goals.
 PURPOSES OF EVALUATION
JUDGEMENTAL DEVELOPMENTAL

Provide a basis for reward allocation Stimulate performance improvement

Develop ways of overcoming obstacles

Identify high-potential employees
and performance barriers

Validate the effectiveness of employee Identify training and development

selection procedures opportunities

Establish supervisor-employee
Evaluate previous training programs
agreement on performance expectations
 FOCUS OF EVALUATION
Translating the position
responsibilities into each
employee’s day-to-day
Job performance, not
activities
individuals

Evaluations should have

proper weighing of
relevant behaviors
RELEVANCY OF EVALUATION
Deficiency
Occurs when the evaluation does
not focus on all aspects of the job.

Contamination
Occurs when activities not part of
the job are included in the evaluation.

Distortion
Occurs in the evaluation process
when an improper emphasis is given to various
job elements.
 IMPROVING EVALUATIONS

Ask employees to participate in the

evaluation process.

Set specific performance goals.

Provide supervisor’s training in evaluating

subordinate’s performance.
 IMPROVING EVALUATION
Communicate the results of the evaluation
process to employees.
Do not focus entirely on problem areas;
good performance should be actively
recognized and rewarded.
Make performance evaluation a
continuous ongoing process.
 PERFORMANCE EVALUATION
FEEDBACK
Instructional Motivational

Feedback instructs when Feedback is motivation

it points out areas for when it provides a reward
improvement and teaches or promises a reward.
new behavior
A FEEDBACK MODEL
 A 360-DEGREE APPROACH

A 360-degree program evaluators could

include creditors, peers or team members,
supervisors, subordinates, and the person
being evaluated. The increasing use of
multisource programs is the result of calls for
more fairness, clarity, and creditability in
performance improvement programs.
 BEST PRACTICES TO IMPROVE 360-
DEGREE PROGRAMS
Use 36-degree feedback primarily for
individual development

Link the feedback process with the overall

strategy and direction of the firm.

Exert administrative control over every

aspect of the 360-degree process.
 BEST PRACTICES TO IMPROVE
360-DEGREE PROGRAMS

Use senior management as role models.

Use highly trained internal coaches to

leverage the investment.

Evaluate the effectiveness of return on

investment of the process.
 REINFORCEMENT THEORY

Reinforcement is the most important

principle learning.
Desirable or reinforcing consequences will
increase the strength of a behavior and increase the
probability of being repeated.
Undesirable or punishment consequences
will decrease the strength of a response and
decrease its probability of being repeated.
 FORMS OF REINFORCEMENT
Positive Reinforcement
A stimulus that, when applied to the situation,
strengthens the probability of a behavioral response.

Punishment
Presenting an uncomfortable or unwanted
consequence for a particular behavioral response.

Extinction
Reduces unwanted behavior by withholding positive
reinforcers.
REWARDS, REINFORCEMENT AND
PUNISHMENT
 REINFORCEMENT SCHEDULES

Schedule Description Organizational Example

Continuous Reinforcer follows every Praise after every new sale and
response order

Fixed Interval Response after specific Weekly, bimonthly, monthly

time period is reinforced paycheck

Variable Interval Response after varying Transfers. Unexpected bonuses.

period of time (an Promotions, recognition
average) is reinforced
 REINFORCEMENT SCHEDULES
Schedule Description Organizational
Example

Fixed Ratio A fixed number of Piece rate, commission on

responses must occur units sold
before reinforcement

Variable A varying number Random checks for

Ratio (average) of responses quality yield praise for
must occur before doing good work
reinforcement
THE REWARD PROCESS
 INTRINSIC AND EXTRINSIC REWARDS
Intrinsic
Rewards that are part of the job itself. The
responsibility, challenge, and feedback characteristics
of the job.

Extrinsic

Rewards external to the job such as pay, promotion, or

fringe benefits.
 ADMINISTERING REWARDS

Positive Reinforcement

Modeling and Social Interaction

Expectancy Theory
ORGANIZATIONAL CONCERNS THAT
ARE INFLUENCED BY REWARDS

Turnover Absenteeism

Performance Commitment
 INNOVATIVE REWARD SYSTEM

Team-Based
Gainsharing Broadbanding
Rewards

Skill-Based Banking Time All-Salaried

Pay Off Team

Employee Stock
Ownership Plans
LINE OF SIGHT: THE KEY ISSUE

Line of sight – means that the

employee perceives that there is a
“real” linkage between his or her
performance and the rewards
received.
 LINE OF SIGHT: THE KEY ISSUE

For extrinsic rewards, organizations need to

have systems that clearly tie rewards to desired
performance.

Organizations can influence intrinsic rewards by:

- Providing jobs that are challenging
- Providing clear feedback on job performance