Refer to Pages 194–223.

8.1: Summarize the principles of reinforcement theory.

Refer to Page 195

Reinforcement theory is based on the law of effect, which states that past actions that led to positive outcomes tend to be repeated, whereas past actions that led to negative outcomes will diminish. The law of effect led to the development of operant conditioning (sometimes referred to as reinforcement theory). In this approach to motivation, individual personality, thoughts, and attitudes don’t motivate behavior.

8.2: Describe the four steps in the modeling process articulated in social learning theory.

Refer to Page 201.

Social learning theory considers people’s thoughts as well as their perceptions of others (a social cognitive theory). While reinforcement theorists maintained external rewards create permanent behavioral changes, social learning theory proposes that people can learn things but not necessarily change their behavior. There are four steps in the process: (1) Attention. To learn, a person has to be paying attention to another’s behavior. People pay attention to things that are either interesting or new. (2) Retention. The information must be stored for access in the future. This is important to observational learning since a person must remember what they have observed. (3) Reproduction. Once information is noted and retained, the next step is that the person imitates (i.e., performs) the behavior that they recall. Repeating the behavior (i.e., practicing) leads to improved performance. (4) Motivation. For observational learning to work, Bandura acknowledged that the person needs motivation to imitate. Thus, social learning theory discusses the roles of reinforcement and punishment.

8.3: Compare and contrast intrinsic and extrinsic rewards.

Refer to Page 202.

Intrinsic motivation is when someone works on a task because they find it interesting and gain satisfaction from the task itself. Extrinsic motivation involves the performance à outcome instrumentality between the task and a tangible reward. Satisfaction does not come from the task itself but rather from the extrinsic outcome to which the activity leads (e.g., working extra hours to earn a bonus).

8.4: Discuss the guidelines for using monetary rewards effectively.

Refer to Page 205.

Research-based recommendations on how to use monetary rewards effectively include: Define and measure performance accurately. Make rewards contingent on performance. Reward employees in a timely manner. Maintain justice in the reward system. Use monetary and nonmonetary rewards.

8.5: Illustrate the methods for performance management with examples.

Refer to Page 205.

[Examples will vary] It is best to avoid rating traits such as having a positive attitude since they may not relate to actual performance. Most organizations use a standard form to evaluate employee performance. There may be an overall global rating for performance, but there are also specific dimensions that are rated. These ratings are typically on a graphic rating scale having multiple points along a continuum. Here is an example: Outstanding—Performance is consistently superior. Exceeds expectations—Performance is routinely above job requirements. Meets expectations—Performance is regularly competent and dependable. Below expectations—Performance fails to meet job requirements on a frequent basis. Unsatisfactory—Performance is consistently unacceptable. Another approach is to use behaviorally anchored rating scales (BARS) in which a vertical scale is presented with specific examples of performance provided. Some organizations use a forced-ranking method in which all employees in the work group are ranked relative to one another.

8.6: Critique the performance review process.

Refer to Page 209.

There are issues related to performance appraisals that a leader needs know about. Some employees view the appraisal process as unfair and showing favoritism. Others may fear the appraisal process and view it as punitive. There are perceptual biases that may affect the rater’s ability to accurately rate follower performance (including primacy, recency, availability, contrast, and halo). These errors have been shown by research to affect the performance rating process. In addition, there may be a tendency for a rater to be too lenient (or too strict) in their ratings. They might have a central tendency error in which they rate all dimensions of performance as average (e.g., rating every dimension as 3 on a 5-point scale). Cultural values such as power distance and collectivism may influence how a rater assesses the performance of another person. Performance appraisals should be supported by training for those making the ratings to avoid these errors and increase sensitivity to the perspectives of employees from different cultural backgrounds.

8.7: Understand feedback seeking by employees and how it relates to more accurate perceptions of performance.

Refer to Page 211.

Performance management systems have been criticized for emphasis on categorizing employees and failure to address the followers need for feedback on their work on a day-to-day basis. People may either want to defend their self-perception or image (ego or image defense). Alternatively, their goal may be to enhance their self-perception (or image) in the eyes of others (by asking for feedback on something they knew they did a good job on, for example). There are five patterns of feedback seeking that matter: (1) how frequently people seek feedback; (2) how they seek it (observing, comparing, or asking for it); (3) the timing; (4) who they ask for feedback from (i.e., the target); and (5) what they ask for feedback about (e.g., success on an task assignment). Outcomes from feedback seeking are a more accurate perception of one’s own performance and progress on goal attainment by gaining feedback when needed. Also, one’s self-perception and image may be enhanced through the five strategies of feedback seeking. Research on feedback seeking suggests seeking negative feedback does improve an employee’s image (unless the feedback seeker is a poor performer).