performancebehaviour

The foundation of behavior-based performance management is the simple principle that people perform best when they know:

• What they are supposed to do

• How they are supposed to do it

• How they are doing

• What is in it for them

More formally, behavior-based workforce management is based on applications of the “ABC Principle,” which defines the three key components of performance:

• Antecedents are the communications that employers giveto employees so they understand what they are supposed to do. Antecedents can come in many forms such as orientation, training, policies and procedures and coaching.

• Behavior that employees do based on what they think they are supposed to do. Behavior is colored by employees’ past experience as well as their expectations for rewards for following antecedents.

• Consequences are the reinforcement, recognition and rewards that employees get for doing the things they are supposed to do.

Despite the best intentions, employers and employees are typically at opposite ends of the spectrum when it comes to effective application of the ABC Principle. Employers tend to rely on antecedents to drive performance results. They invest heavily in orientation and training, communicate changes in policies and procedures and otherwise direct rules and expectations.

Employees, on the other hand, gauge their efforts to change their behavior based on their expectations of what is in it for them, i.e., the consequences. Consequences vary based on how they combine three sets of characteristics:

• Positive vs. negative • Immediate vs. future • Certain vs. uncertainThe most powerful consequences are Positive/Immediate/Certain (“PICs”) followed by Negative/Immediate/Certain (“NICs”). Consequences that are future or uncertain carry a low level of credibility, particularly with line and customer-facing employees whose perspective tends to be short-term and for whom an annual or even quarterly award such as a bonus is often meaningless due to the time horizon.

Companies that liberally use PICs create positive cultures where employees are likely to exercise their discretionary capabilities and continuously contribute to success. Companies that use NICs create cultures of fear where employees typically “fly below the radar screen” to avoid negative consequences. These employees rarely go the extra mile for the company and employers fail to realize the value they could create in a more positive environment.

Positive consequences can take several forms. These include:

• Performance reports. Employees want to know how they are doing on a timely basis. Typically performance reviews occur infrequently and may not follow expected protocols. Objective performance management systems that provide employees with PIC input on a near-real time basis as well as tools to understand historical and comparative trends provide employees with a highly valued resource.

• Reinforcement. Employees appreciate one-to-one praise from managers, peers or others. These can include verbal comments as well as e-mails, e-cards and other media. Reinforcement is an essential component of a positive work culture and should be used frequently.

• Recognition. Recognition is a public affirmation of an employee’s value. Whether it is through a simple announcement or public awards of certificates, pins or other products, recognition serves as an opportunity to make individuals proud of their contributions and communicates the standard for performance for the rest of the company.

• Rewards. Rewards give employees the most tangible trophies for their work. Rewards can take several forms:

• Tangible rewards are goods and services that are paid for by the employer. They typically include merchandise, travel or gift certificates.

• Intangible rewards are captive goods and services that are given by an employer. These can include items such as products manufactured or services delivered by the employer, a day off, a free meal in the cafeteria, a valued parking space, first choice of shift on a holiday or other item.

• Cash that is directly disbursed to the employee. While it is highly flexible and convenient, cash is the weakest form of reward. Employees tend to spend it on day-to-day expenses such as paying bills rather than on a tangible reward that is

recognized by the employee as a direct product of good work. Prolonged use of cash rewards creates a sense of entitlement and locks employers into a vicious cycle that, if disrupted, has a powerful negative effect on the employee.

Regardless of the reward format, it should be positive, immediate, certain and meaningful to the employee to be effective.

Bron: Performinsight