Rewarding Individual PerformanceChapter 6Organizational
Behavior: ManagingPeople and Organizations,Ninth EditionGregory
Moorhead, Ricky W. GriffinGoal Setting and MotivationPurpoe of
Setting Goal in !rgani"ation#o provide a ueful framework for
managing motivation to enhance employee performance#o erve
management a a control device for monitoring of how well the
organi"ation i performingGoal$ deira%le
o%&ectiveSelf'(fficacy#he e)tent to which we %elieve we can
accomplih our goal even if we failed to do o in the patGoal Setting
and Motivation *cont+d,Goal Setting #heory *-ocke,$ume that
%ehavior i a reult of conciou goal and intention, therefore goal
influence %ehavior *performance,Goal .haracteriticGoal
difficulty#he e)tent to which a goal i challenging, re/uire effort,
and i attaina%leGoal pecificity#he clarity and preciion of a goal
()panded Goal Setting #heory *-ock and -atham,#he Goal'Setting
ProceGoal'directed effort i a function of goal attri%ute01. Goal
difficulty2. Goal pecificity3. Goal acceptance0 the e)tent to which
a peron accept a goal a hi4her own5. Goal commitment0 the e)tent to
which a peron i intereted in reaching a goal 6roader Perpective on
Goal SettingManagement %y !%&ective *M6!,$ colla%orative
goal'etting proce through which organi"ational goal cacade down
throughout the organi"ationRe/uire cutomi"ing to each
organi"ation.an %e effective for managing reward ytem where the
manager ha individual interaction with each employeeGoal Setting0
(valuation and ImplicationReearch ha hown that0Goal difficulty and
pecificity are cloely aociated with performance.Goal'etting theory
may focu too much on hort'run conideration.M6! ha the potential to
motivate %ecaue it help implement goal'etting theory on a ytematic
%ai throughout the organi"ation.M6! ha a tendency to overemphai"e
/uantitative goal to enhance verifia%ility.Performance Management
in !rgani"ation#he 7ature of Performance ManagementPerformance
meaurement *or appraial, proce01. (valuating an employee+ work
%ehavior %y meaurement and comparion with previouly eta%lihed
tandard2. 8ocumenting the reult3. .ommunicating the reult to the
employeePerformance Management Sytem .omprie the procee and
activitie involved in performance appraial Performance Management0
#he Proce#he $ppraier0 $lternative#he direct uperviorMultiple'rater
ytem *including elf'evaluation,39:'degree feed%ack$ ytem in which
people receive performance feed%ack from thoe on all ide of them in
the organi"ation *%o, colleague, peer, u%ordinate,;re/uency of
$ppraial8etermined %y convenience for adminitrative purpoe,
cultural appropriatene, and relevancePerformance Management0 #he
Proce *cont+d,Meauring Performance.onideration8eired deciion to %e
made %aed on outcomeIntrument mut %e valid, relia%le, and free of
%ia.hoice of meaurement methodGraphic rating cale, checklit,
eay4diarie, %ehaviorally anchored rating cale, forced'choice
ytem.omparative method uch a ranking, forced ditri%ution, paired
comparion, multiple rater Individual Reward in !rgani"ationReward
Sytem.onit of all organi"ational component involved in allocating
compenation and %enefit to employee in e)change for their
contri%ution to the organi"ation
including0PeopleProceeRuleProcedure8eciion'making activitieReward+
Purpoe, Role, and MeaningPurpoe#o attract, retain, and motivate
/ualified employeeRole of compenation tructure#o %e e/uita%le and
conitent#o %e a fair reward for the individual+ contri%ution#o %e
competitive in the e)ternal la%or marketMeaning of rewardSurface
value0 o%&ective meaning or worth of rewardSym%olic value0
u%&ective and peronal meaning or worth of reward#ype of
Individual Reward.ompenation Package#he total array of money *wage,
alary, commiion,, incentive, %enefit, per/uiite, and award provided
%y the organi"ation6ae PaySym%oli"e an employee+ worth.an improve
motivation and performance if part of an effectively planned and
managed pay ytem I a ma&or cot of doing %uine.an reduce
turnover and increae morale when well'deigned#ype of Individual
Reward *cont+d,Incentive Pay SytemPlan in which employee can earn
additional compenation in return for certain type of performance 1.
Piecework program2. Gain'haring program3. 6onu ytem5. -ong'term
compenation
