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Rewards and Punishment

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Judicäelle Patricia

on 23 October 2013

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Transcript of Rewards and Punishment

Chapter 7
Rewards and Punishment


Effective Leader
Reward and Punishment

Skills Traits and Sources of Power
Situational Factors that Enhance the Effectiveness of Leader Reward & Punishment Behaviors
Task, Organizational & Follower Characteristics

Situational Factors that Neutralize Leader Reward & Punishment Behaviors

Task, Organizational & Follower Characteristics
Examples of an Ineffective Leader
Reward and Punishment

Effects on Behavior
Process of Social Change
Intangible Rewards & Punishment
Leaders use both tangible and intangible forms or rewards and punishment but...
Rewards
~Giving special recognition to a follower whose work is outstanding
~Recommending a significant pay increase for someone whose performance is high
~Giving positive feedback when a follower performs well
~Acknowledging improvement in a followers work
~Commending a follower does outstanding work

Punishment
Rewards
~When leaders praise followers when they performed poorly as when they performed well.
~When leaders give bonuses to followers equally, not because they did good but because he could afford it.
~Followers have no way of knowing they are getting rewarded so these bonuses have no effect on performance.

Punishment
~When a leader expresses extreme displeasure and criticizes a follower’s work even though the follower had performed well compared to other group members.
~When a leader repeatedly punishes his follower with severe verbal reprimands, unpleasant task assignments and extra work.
~Embarrassing and punishing a follower in public and in front of their peers.

Punishment
~When leaders punishment is not contingent it decreases followers satisfaction with leader and creates tension
~Decreases satisfaction with work
~Decreases commitment to the organization
~Followers view contingent punishment as fair.
~Contingent punishment can improve followers and group performances when used in combination with contingent reward behavior.
Reward
~Compliance with the leaders requests
~When leaders use reward power extensively leaders will do more than is required for the reward.
~Increase loyalty and commitment to the leader and the organization
~Followers are generally happier with their leader and with those around them when they are well rewarded.
Preference for making their own decisions & taking responsibility
Self Confidence

Accurate monitoring and measuring of followers’ performance

Reward power
(control over important tangible reward such as bonuses and promotions)
Coercive power
(control over important punishments such as demotion or termination)

Legitimate power
(influential by being a high-level management position)

Resource/Connections power
(developed to use high-level managers to obtain resources)
• Follower & Group Characteristics

Followers are members of cohesive work group with positive performance norms
Rewards are valued and expected by followers

• Task Characteristics

Accurate performance measures are clearly explained to followers
Performance is primarily determined by skill and effort
Tangible rewards are distributed fairly and in a timely fashion

• Leader Characteristics

Uses rewards and punishments contingent on performance

Controls important rewards that followers value

Works at high organizational level

Recognized as expert in followers’ tasks or has high status


• Follower Characteristics

Indifference toward organizational rewards
Observation of others disobeying the leaders

• Task Characteristics

Job autonomy
Intrinsically satisfying tasks
Spatial distance between leaders and followers

• Group & Organization

Characteristics
Cohesive work group with anti-leader norms
High degree of organizational formalization

The Unwritten Contract
~The leader controls certain items that the followers either want (rewards) or want to avoid (punishment)

~The contract is usually informal and details aren't specified

~As long as it's fair, they will have a productive relationship
Show Me The Money
Tangible Rewards & Punishment

Intangible Rewards & Punishment

Question: Which do leaders use more of?
TR&P or IR&P
Immediate Results and Reactions
With IR&P, it's easier for the leader to reward or punish quickly

Intangible Leads To Tangible
Since giving intangible R&P is so easy, followers can immediately act accordingly to the social exchange and know how the leader feels about them

Followers can also predict what the tangible response would be
Based on Jim Harvey's speech structures
~Showing displeasure if a followers work is below departmental standards
~Imposing fines for repeated rule violations, reprimanding a follower if his work is consistently below his capabilities
~Recommending that a follower receives no pay increase if his work is below standards
~Giving undesirable job assignments to followers who are late to work
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