Appraising and Rewarding Performance

General objectives: After 1 hour of varied teaching learning strategies, the masterands will be able to acquire a higher level of knowledge, skills, and positive attitude on Appraising and Rewarding Performance.

Specific Objectives:
Understand the complete program of reward system. Identify the importance of money as a means or rewarding employees. Discuss the different motivational models. List the steps of MBO Justify the economic incentive systems

A COMPLETE PROGRAM

Figure 6-1

The reward pyramid:

The makeup of a complete pay program

(read from bottom)

MONEY AS A MEANS OF REWARDING EMPLOYEES

MONEY VALUABLE A SOCIAL MEDIUM OF EXCHANGE HAS STATUS VALUE -WHEN IT IS BEING RECEIVED AND SPENT ONE INDICATION OF ONE EMPLOYEES STATUS RELATIVE TO OTHER EMPLOYEES

 Application of the Motivational ModelsUSEFUL WAY TO THINK ABOUT MONEY AS A REWARD

Drives Needs

Expectancy
Behavior Modification Equity

 Additional Considerations in the Use of Money

Extrinsic and Intrinsic Rewards

Compliance with the Law

Equal Pay Act of 1963 Comparable worth

ORGANIZATIONAL BEHAVIOR AND PERFORMANCE APPRAISAL

Management by objectives (MBO)

1. Objective setting

2. Action planning

3. Periodic reviews
4. Annual evaluation Performance appraisal

ORGANIZATIONAL BEHAVIOR AND PERFORMANCE APPRAISAL

360-Degree Feedback Programs

Performance feedback
Improved attitudes

Improved performance

360-degree feedback

ECONOMIC INCENTIVE SYSTEMS

Purposes and Types

Economic

incentive system

Complete pay program

Incentives Linking Pay with Performance

Incentive measure Amount of output Quality of output Example Piece rates; sales commission Piece rate only for pieces meeting the standards Bonus for selling an established number of items during a predetermined time span

Success in reaching goals

Amount of profit Cost efficiency Employee skills

Profit sharing Gain sharing Skill based pay

ECONOMIC INCENTIVE SYSTEMS

Wage Incentives
- More Pay for More Production

Profit Sharing
Nature and Merits Mutual interest

 Gain Sharing
Gain-sharing plan

Skill-Based Pay
Advantages Difficulties

Synthesis:

The still untapped source of human vitality, the unmined lode of talent, is in those people already hired and thereafter neglected

-John Gardner

Questions