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Performance Management


Learning Outcomes

  • Specify the two basic functions of feedback and three sources of feedback.
  • Define upward feedback and 360-degree feedback
  • Summarize the general tips for giving good feedback
  • Briefly explain the four different organizational reward norms.
  • Explain the difference between positive reinforcement, negative reinforcement, punishment, and extinction.

Chapter Summary

1. Specify the two basic functions of feedback and three sources of feedback. Feedback, in the form of objective information about performance, both instructs and motivates. Individuals receive feedback from others, the task, and from themselves.

2. Define upward feedback and 360-degree feedback. Lower-level employees provide upward feedback (usually anonymous) to their managers. A person receives 360-degree feedback from subordinates, the manager, peers, and selected others such as customers or suppliers.

3. Summarize the general tips for giving good feedback. Good feedback is tied to performance goals and clear expectations, linked with specific behaviour and/or results, reserved for key result areas, given as soon as possible, provided for improvement as well as for final results, focused on performance rather than on personalities, and based on accurate and credible information.

4. Briefly explain the four different organizational reward norms. Maximizing individual gain is the object of the profit maximization reward norm. The equity norm calls for distributing rewards proportionate to contributions (those who contribute the most should earn the most). Everyone is rewarded equally when the equality reward norm is in force. The need reward norm involves distributing rewards according to employees' needs.

5. Explain the difference between positive reinforcement, negative reinforcement, punishment, and extinction. Positive and negative reinforcement are consequence management strategies that strengthen behaviour, whereas punishment and extinction weaken behaviour. These strategies need to be defined objectively in terms of their actual impact on behaviour frequency, not subjectively on the basis of intended impact.











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