Pay for performance monetary incentives tied to ones results or accomplishments

Pay for performance monetary incentives tied to ones

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Pay for performance – monetary incentives tied to one’s results or accomplishments Conditions necessary to effectively link pay to performance: o All critical performance dimensions must be captured by the system and readily measured o Standards should be set for each performance dimension o Performance must be important to the employee or team, and manager o Performance must be primarily under the employee’s or team’s direct control o Monetary level and merit differences must be meaningful to the employee or team o System must be affordable o Relationship between manager and employee/team must be one of mutual respect/trust, with effective communication. Positive Reinforcement Thorndike’s Law of Effect o Law of effect – behavior with favorable consequences is repeated; behavior with unfavorable consequences disappears Skinner’s Operant Conditioning Model o Respondent behavior – Skinner’s term for unlearned stimulus-response reflexes Describes a very small proportion of adult human behavior EX: crying while peeling onion, reflexively withdrawing hand from hot stove o Operant behavior – Skinner’s term for learned, consequence-shaped behavior aka Response-Stimulus (R-S) model o contingent consequences control behavior in four ways: positive reinforcement – making behavior occur more often by contingently presenting something positive - strengthens behavior and target behavior occurs more often negative reinforcement – making behavior occur more often by contingently withdrawing something negative - target behavior occurs more often b/c provides relief from an unpleasant situation - EX: army drill Sargent stops yelling when recruit gets out of bed punishment – making behavior occur less often by contingently presenting something negative or withdrawing something positive - target behavior occurs less often extinction – making behavior occur less often by ignoring or not reinforcing it - no contingent consequence - target behavior occurs less often schedules of reinforcement  timing of behavioral consequences is important o continuous reinforcement – reinforcing every instance of a behavior o intermittent reinforcement – reinforcing some but not all instances of a behavior reinforcement in ratio: contingent on # of responses observed - fixed ratio 7
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- variable ratio interval reinforcement: tied to the passage of time - fixed interval (EX: hourly pay) - variable interval shaping – reinforcing closer and closer approximations to a target behavior Ten practical tips for shaping job behavior: o Accommodate the process of behavioral change  behaviors change in gradual stages, not in broad, sweeping motions o Define new behavior patterns specifically  state what you wish to accomplish in explicit terms and in small amounts that can be easily grasped o Give individuals feedback on their performance  a once-a-year performance appraisal is not sufficient o
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