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evaluating_and_rewarding_teams-1.pptxEvaluating and rewarding teams
Chapter 16
Evaluating and rewarding teams
An important way to motivate teams is through performance evaluation and reward programs
Performance evaluations communicate to the team how well it is performing
The information may be used to provide direction, motivate performance, and inform the organization’s reward system
Team members should participate in the evaluation process
Organizations can use combinations of individual, team, and organizational rewards to motivate teams
Team performance evaluations
Organizations may evaluate individual team members, the operation of the entire team, or combinations of individual and team
Performance evaluation measures need to be specific and clear, identified in advance, and related to behaviors under members’ control
Performance evaluations are valuable for providing feedback to employees, motivating them, and supporting training and development
Types of evaluations
Traditional individual evaluations- supervisor appraises an individual employee. This evaluation is tied to the organization’s compensation system
Team member evaluations-team members instead of a supervisor conduct the performance evaluations
Evaluation of the team-work of a team is highly interdependent. It may be impossible to evaluate employees individually, the supervisor instead of team members evaluates the operation of the entire team
Types of evaluations
There are several factors that affect which type of performance evaluation is appropriate for a circumstance
From a teamwork perspective, the most important factor is work design
Individual evaluations are more important for individual work assignments
When work is highly interdependent or conducted primarily as a team, individual evaluation approaches are not appropriate and may discourage cooperation in the team
Types of measures
The key to developing a good measurement system is making certain that it captures both team and organizational goals
It is necessary to ensure the measurements relate to factors that the team has the ability to influence
Measures should focus on the results of the team’s performance, not on the internal activities of the team
Performance evaluations are improved when specific, quantifiable goals are set for the team, and these are identified in advance
Types of measures
It is useful to include team members in the development of the performance evaluation system
Many performance evaluations systems fail because the measures are vague or poorly defined
One alternative is using behavioral measures versus the results of performance
Behavioral performance measures can be used for any type of job, the rater can deal with factors outside the employee’s control, they can encourage positive employee behaviors that are not directly related to the job
Types of measures
A team performance measurement system contains 5 to 10 different measures
It is preferable to have a simpler system team members can relate to, rather than a sophisticated system that is hard to interpret
Using behavioral scales encourages the rater to focus on the target’s behavior rather than on personality
Including team members in the development of behavioral scales is a good way to improve the relevance and credibility of the evaluation system
Participation in the evaluation process
It is a difficult for a supervisor to conduct a performance evaluation on someone who works on a team
Teamwork often requires a shift to the use of multirater evaluation approaches, such as 360-degree feedback, that include input from team members, customers, and supervisors
The most qualified to evaluate a team member’s performance are the fellow team members
Multirater performance evaluations are more reliable and valid than supervisor-only evaluations
Problems and biases with team evaluations
Inflation bias- positive evaluations given when raters expect to have to present feedback to others. Inflation comes from both empathy and fear of creating conflict in the team
Reciprocity bias- people feel obligated to give positive ratings after they have received positive ratings from others
Team Halo Effect- when teams are successful, team members view success as caused by the team; when they are unsuccessful, they tend to blame individual members for the failure
Reward systems
Team rewards have the potential to influence the motivation of individual team members, the level of coordination in the team, and the quality of the group process
An organization needs to change its compensation practices to support teamwork, because pay is a communication device that tells employees what is important
As organizations become more team oriented, existing compensation practices either get in the way or are modified to support the use of teams
Reward systems
The three approaches to rewarding performance are individual, team, and organizational
Individual reward systems are good for motivating high performers but may discourage cooperation and teamwork
Team and organizational approaches are better at encouraging teamwork and are appropriate when the tasks are highly interdependent
Most US employees prefer individual rather than team based awards
Reward systems
Hybrid Approaches
In some studies, teams that are rewarded for a mix of individual and team performance perform better than teams rewarded solely for individual or team performance
May create a social dilemma for team members (should they act for the team or their individual self-interest?)
The best approach may depend on the type of tasks the team is performing
Team and organizational reward systems
Team rewards are based on successful team performance
The effectiveness of team reward programs depends on the characteristics of the rewards, the organization, and the team
Team rewards should be large enough to make a noticeable difference in the member’s pay; they are often assumed to be about 10% of the salary
To encourage cooperation, rewards should be distributed equally among all team members
Effective team rewards require clear team goals, measurable performance standards, and a task that requires integrated teamwork
Team and organizational reward systems
Recognition awards are one-time events that acknowledge team and individual success
Recognition awards may be cash or non-cash
Survey show that about 1/3 of large US companies use recognition awards to reward successful team performance
Non-cash awards should be appropriate for specific employees and given in a manner that publicly recognizes team accomplishments
Cash awards should be large enough to have an impact
Awards should be given as close as possible to the time of team success
Team and organizational reward systems
A potential problem with team incentive programs is that they may inadvertently create competition among teams within an organization
Profit-sharing programs are based on meeting profitability targets for the organization
Gain-sharing programs link pay to collective results at a level smaller than the entire organization (may be linked to the performance of a specific facility or production unit)
Relationship of rewards to types of teams
The reward program an organization uses to support teamwork depends on the type of team being rewarded
Parallel teams are typically part-time, temporary teams that supplement the regular work system and perform problem solving and improvement functions
There is an inherent conflict between commitment to the team’s task and commitment to the member’s primary job functions
Relationship of rewards to types of teams
Process, or work team, is a full-time permanent team that is a major part of the members’ work
Process or work teams are responsible for producing a product or providing a service
Process teams are used by 78% of large US companies
Project teams are typically composed of a diverse group of knowledge workers who come together to perform a project in a defined period
Linking rewards to types of teams
Parallel teams do well with team recognition rewards as well as organizational rewards
Process teams do well with salary based compensation, skill-based pay, and individual, team, and organizational rewards
Project teams do well with team recognition rewards and team and organizational rewards
Project teams may be the most difficult type of team to reward (team membership may change during the project)
