DB Post

16-1

Evaluating and

Rewarding Teams

Chapter 16

16-2

Team Performance Evaluations

 Types of Evaluations:  Traditional individual evaluations

 Team member evaluations

 Evaluations of the team

Choosing a type of evaluation:  Work design

 Organization operation

 Types of Measures:

Specific, quantifiable goals set ahead of time

Team participation

16-3

Team Performance Evaluations

 Participating in the Evaluation Process

Shift to multi-rater evaluation process

 360 degree feedback

 Team members

 Customers

 Supervisors

 Seen as more:

 Reliable, Valid, Credible, and Fair

16-4

Team Performance Evaluations

 Problems and Biases with Team Evaluations

 Encourage competition and reduce teamwork

 Problems with including team members:

 Personal relationships

 Favoritism

 Managers reluctant to give up power

 Discomfort evaluating coworkers

 Inflation bias

 Reciprocity bias

 Team halo effect

16-5

Reward Systems

 Types of Approach:

Individual

Team

 Social loafing

 Inequity problems

Organizational

Hybrid

 Mix of individual & team rewards improves performance

16-6

Reward Systems

 Types of Teams

16-7

Rewarding Individual Team Members

 Changing Base Pay

Fair and equitable

Broad pay bands

Benefit:

 More flexibility for managing teams

Problem:

 Eliminates means of rewarding individual performance

16-8

Rewarding Individual Team Members

 Skill-Based Pay

 Encourages learning new skills

 Benefit:

 Improve team flexibility in performing task

 Organizational flexibility

 Problems:

 Training costs

 Promotions become limited

 Knowledge based pay, career ladders

16-9

Team and Organizational Reward

Programs

Team reward programs success depends on

characteristics of:

 Rewards

 Substantial and distributed equally

 Organization

 Culture supports teamwork

 Team

 Clear team goals

 Measurable performance standards

 Task requiring interdependence

16-10

Team and Organizational Reward

Programs

 Team Recognition Programs

Recognition awards  Levels of awards

 Organization-wide system for nominating

 Organizational Rewards

Profit sharing

Gain sharing

Difficulty connecting employee behavior and performance of organization

16-11

Relationship of Rewards to Types

of Teams

16-11

Chapter 16 Review

 Evaluations

 Reward Programs