Chapter 7: Evaluation, Feedback, and Rewards

Performance evaluation systems must be linked with reward systems to achieve maximum effectiveness

Performance evaluation serves both judgmental purposes (reward allocation, identifying high-potential employees) and developmental purposes (performance improvement, training identification)

360-degree feedback provides more comprehensive evaluation by gathering input from multiple sources including peers, supervisors, subordinates, and self-assessment

Reinforcement theory explains how consequences shape behavior through positive reinforcement, negative reinforcement, punishment, and extinction

Different reinforcement schedules (continuous, fixed interval, variable interval, fixed ratio, variable ratio) produce different behavioral patterns

Not all rewards are reinforcers - reinforcers specifically increase the rate of behavior

Intrinsic rewards are self-administered (achievement, autonomy, personal growth) while extrinsic rewards come from outside sources (salary, benefits, promotions)

Satisfaction with rewards depends on both the amount received and comparisons with others

Effective reward packages must be sufficient to satisfy basic needs, equitable, and individually oriented

Motivation alone cannot ensure good performance - ability, skill, and experience are also required

Innovative reward systems include skill-based pay, broadbanding, team-based rewards, gain-sharing, and employee stock ownership plans

Line of sight - the clear linkage between performance and rewards - is critical for reward effectiveness

Rewards significantly impact turnover, absenteeism, job performance, and organizational commitment

Feedback serves both instructional and motivational purposes in performance management

No research substantiates that extrinsic rewards have a negative effect on intrinsic motivation