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Performance evaluation and motivation - Coggle Diagram
Performance evaluation and motivation
Cybernetic loops
Compare actual to standard (variance)
Evaluate variance
Measure actual performance
Take corrective action
Establish (expected) standards or targets
why use formal systems to evaluate performance?
Create historical record of performance
Overcome problems in self-evaluation (Dunning-Kruger effect )
reliable basis for comparison
Uncontrollable factors
solution:
make adjustments
Less manager frustrations
Better decision making: less noise.
More accurate evaluation
Lower compensation costs
Hopwood 1972 study
Profit Conscious
Non accounting
Budget constrained
what induces employees motivation?
Instrumentality: performance = desired outcome (reward)
Valence: attractiveness of reward
Expectancy: effort = certain performance