Consequences and Changing Behaviors

Everyone knows that consequences affect behaviors. Then why do most managers find it so challenging to guide their subordinates' performance improvement efforts? Test your understanding of and ability to apply consequential behavior theory.

Overview

Fundamentally, performance management is a daily management system that ensures an organization accomplishes its vision and becomes a high performing entity. Some of the key features of a successful performance management system include the following:

* It's based on a systematic approach. Performance management involves proven techniques that are applied consistently. It requires discipline, but it still has sufficient flexibility to fit managers' and employees' personal styles.

* It focuses on assigning work, enabling work to be carried out as planned, and evaluating performance. If your first reaction is to say, "Our managers won't go for that," ask yourself to define what management means. Isn't it about assigning work? Isn't it about providing resources? Isn't it about letting people know if they're meeting expectations, and helping them get back on track if they're not? If those are the essential components of management anyway, the key to performance management systems is how they help managers do their work more effectively and efficiently-using proven approaches and tools.

* It leads to mutual success. Ultimately, the goal of a performance management system is to create success for both the organization and the employees.

* It's flexible enough to work for all types of jobs in all types of cultures. Because the measures used to set goals and evaluate performance are catered to each specific job and its requirements, these systems are very adaptable.

Linkage Between Strategic Planning and Performance Management

Performance management systems integrate with an organization's strategic planning process to create organizational success through successful performance of employees. This connection exists regardless of the planning methodology the organization uses.

Figure 1 provides a simple illustration of how the two systems are linked to deploy the goals and strategies adopted by an organization in its planning process. Strategic planning deployment represents the macro level of communicating and implementing your company's strategic direction. On the other hand, performance management represents the micro level of deployment.

Strategic plan development usually begins by conducting an assessment of the current situation - strengths, weaknesses, opportunities, and challenges. The assessment then moves to the future, and the organization evaluates where it needs to be in two to five years to be successful. Goals with measures and targets are set at this point. Specific approaches to attain the required future state are established, and these are called strategies.

This is the end of the strategic plan development process, and if organizations stopped their work at this point, their plans wouldn't be very influential at directing real work across the organization. That's where the strategic plan deployment process comes into use.

Deployment not only involves communicating the plan to every work group and person, but it also means revising projects and activities across the organization to create total alignment. After the plan is cascaded, creating aligned work group and individual plans, implementation begins. Implementation is monitored on a regular basis and adjustments are made based on progress against the plan. This is how strategic plan deployment becomes a dynamic process for achieving the organization's goals.

Now let's think about the strategic planning process from a people perspective. The people who work in the organization want to help meet its mission. They have good intentions, and they work hard. Unfortunately, without specific direction, their work efforts are likely disjointed. This can be called "organizational chaos"-a lot of activity that doesn't result in anything particular.

Along comes a strategic plan. Organizational leaders determine the goals, performance measures, and targets to achieve in the future. Leaders announce these plans, and people in the organization hear them. Each employee gets an idea of where the organization is headed and begins to redirect his/her efforts. That improves things a great deal, but it doesn't result in total success because each person's interpretation of the highest priority work and best methods may not be accurate.

In many organizations, the cascading process begins at this point. Work group and individual plans are developed to specifically identify which projects and activities are necessary to achieve the organization's plan. These projects and activities are prioritized so that individual and work group efforts are sequenced properly. At this point, the organization has a deployment plan that provides a coordinated approach for achieving its goals.

Figure 2 provides an illustration that shows how aligned plans connect. The organization-level plan describes the organization's vision in terms of measurable goals with targets and strategies for directing the approaches to achieve goals. Those strategies become goals for work groups across the organization, which develop their own initiatives (projects and activities) for bringing the organization's strategies to life. In turn, those initiatives become goals for employees across the work group, who develop their own initiatives (projects and activities) for bringing the work group's initiatives to life.

At that point, the plan is "theoretically perfect"! It was planned in a way to accumulate individual work efforts to fulfill work group initiatives and work group initiatives to fulfill organizational strategies, which leads to accomplishing organizational goals.

Of course, life isn't "theoretically perfect." Once the "rubber hits the road," real-life issues can undermine how well the aligned plan gets implemented. For instance, issues can arise with communications. If employees and work groups aren't well informed, the effectiveness and efficiency of their efforts can erode. Similarly, issues with obtaining the required resources or with people having the necessary competencies to fulfill the initiatives can occur. And, unfortunately, some people will have trouble aligning their work, as required. They'll resist the changes required-often with the best intentions. All of these issues cause the plan to lose "potency" down the line.

This can create risks for the organization, such as:

* Individual and work group efforts may slide away from the target. Although they'll head in the right direction, some of the work will be non-value-added and wasted.

* Even when the work is aimed at the target, its pacing is affected. Coordination and collaboration may be undermined. Effort, time, money, and other resources may be wasted.

* Gaps in plan deployment are likely to occur, making it difficult - and at times, impossible - for the organization to meet its goals.

How can this loss be minimized? The key is in frequent reinforcement of the plan. Instead of reviewing the plan once a month or even less frequently, it must come to life in the day-to-day workplace. Every individual's work needs to stay on track at all times. Performance management ensures that employees are focusing on the right work at the right time, maximizing achievement of individual, work group, and organizational goals while minimizing waste.

In a way, the combination of systems for strategic planning and performance management creates checks and balances for the organization. The macro-level strategic plan comes to fruition through the micro-level performance management system. Issues identified in the performance management system become inputs to the assessment process for strategic planning, particularly shaping the strategies that are selected for fulfilling the goals and for setting priorities and determining required resources.

Performance Management Fundamentals

Let's envision the performance management process from a manager's view now. Figure 3 divides the primary tasks into the four steps used to describe most processes, Deming's plan-do-check-act (PDCA) cycle.

* First, the manager plans the work. He/she determines what work is required to meet individual and work group goals that are aligned with the strategic plan. Employees' competencies are considered, and a competent employee who has adequate time available is selected for the assignment. Specific expectations, including measurements and targets, boundaries, constraints, and consequences, are communicated to the employee. If necessary, provision is made for the assigned employee to receive education and training to obtain any knowledge and skills that he/she does not already have.

* As the work is under way, the manager ensures that the required resources are available when needed. When barriers arise, the manager works with the employee to resolve them. The manager also supports the employee with mentoring and coaching but without micromanaging how the work is done.

* At appropriate times, the manager monitors the work results and evaluates the employee's behaviors - both the actions taken and the approaches used.

* Then, the manager provides feedback and applies the consequences that were shared when the work was assigned. If necessary, the manager works with the employee to identify corrective action to take.

Now we'll look at the process from an employee's view, still dividing the primary tasks into the four PDCA steps, as shown in Figure 4.

* First, the employee clarifies the specific expectations with the manager. Questions on measures, targets, boundaries, constraints, and consequences are resolved. If necessary, the employee receives education and training in preparation for the work.

* The employee puts the available resources to use wisely. When barriers arise, he/she works with the manager to resolve them. The employee accepts support from the manager without abdicating responsibility.

* The employee measures his/her progress and results as the work is conducted.

* When the manager provides feedback and applies the consequences, the employee accepts them. The employee works with the manager to identify corrective action that needs to be taken and then implements appropriate responses.

The two process flow diagrams reviewed in Figures 3 and 4 are fairly high level, but they provide an idea of how performance management systems involve critical interactions between the manager and employee at every step.

Five components are essential for these two interactive processes to succeed:

* Each employee needs to have clear performance expectations. Not only should these expectations link directly to the strategic plan, but they also should fit with specific competencies that are associated with the employee's job. These expectations should be expressed as measurable results and define appropriate performance standards.

* Each employee has an education, training, and development plan. This plan links the employee's existing competencies to future competency requirements for the job. The plan and its associated education and training are provided in time to make achievement of performance expectations possible.

* Each employee communicates regularly with his/her manager, receiving appropriate mentoring coaching and feedback. The manager guides performance success, providing guidance on a regular basis.

* Each employee receives regular performance appraisals. Appraisals link directly to performance expectations, reflecting the employee's contributions toward achieving the organization's goals. Whereas mentoring, coaching, and feedback are given on a frequent, ongoing basis, performance appraisals represent a more long-term view that focuses strongly on results.

* Each employee receives recognition when performance expectations are met. This recognition consists of acknowledgment of accomplishments and, in some cases, rewards. It is designed to be meaningful and should be provided consistently and in a timely manner.

* Each employee understands what corrective action is necessary to raise performance to an acceptable level. Managers describe required changes in specific terms. Performance issues aren't allowed to fester; they're addressed as soon as they arise.

Guiding Behavioral Change

The concepts of performance management are based on the theories of behavioral psychology. You can think of behaviors as a combination of the actions a person takes and the approaches he/she uses when taking those actions.

For example, suppose a person was asked to redesign the parking lot layout. He/she might take action by conducting a meeting to gather input from people who use the parking lot. He/she might serve as facilitator, encouraging the people attending the meeting to express their ideas and recording those ideas on a flip chart exactly as spoken.

Another person with the same assignment might behave differently. He/she might sit down at his/her desk and draw a diagram of the parking lot, calculate the required size for individual vehicles, and sketch in the slots.

Do you think these two different behaviors would obtain the same results? Probably not. In this scenario, the second approach might be less effective, creating negative reactions from people who didn't have the opportunity to express their opinions. Ultimately, behaviors are evaluated in terms of the results they generate, and ineffective/inefficient actions and inappropriate approaches undermine the ability to obtain the required results.

For any outcome we're expected to achieve, we always have options on what actions we can take and the approaches we can use. Our choices are influenced by many factors.

For instance, our previous education, training, and experiences all affect our behaviors. If we haven't studied accounting, we probably wouldn't use a profit and loss statement to analyze a problem. If we don't feel comfortable speaking in public, we probably wouldn't call an organization-wide meeting to announce changes.

Similarly, the resources we have available to us, including time, money, and personnel, affect our behaviors. A shortage of time may cause us to rush. A shortage of money may cause us to cut corners.

Future behaviors are influenced by what happened to us in the past. If we're rewarded for an achievement, we're likely to repeat the behaviors that helped us accomplish it. If we're punished for a behavior, we're likely to avoid it in the future.

Figure 5 shows how our in-bound capabilities and resources (antecedents), as well as the responses we receive (consequences), affect our behaviors. As this process flow diagram shows, these three components operate in a cyclical process.

The antecedents are inputs to the process. They include a variety of personal capabilities and resources that are available to the person that makes it possible for him/her to behave successfully. Behavior involves the actions taken, and the approaches used are measured by the results obtained. Consequences are responses to the behavior; they can reinforce the behavior positively or negatively. Once a person experiences the consequences of his/her behavior, those consequences become part of the person's mindset and are antecedents to future behavior as shown by the arrow that connects consequences to antecedents in this diagram.

Performance management systems are based on this "ABC model," which has been proven effective for changing individual and group behaviors when it is properly implemented. These systems recognize that managers control antecedents and consequences to a large extent. Managers influence people's behaviors by carefully controlling access to obtaining new and improved capabilities, ensuring the availability of required resources, and providing reinforcement that encourages or discourages future behavior.

Some typical antecedents are listed below with a brief description of how they influence behavior:

* Subject-matter knowledge, skills, and experience. People need to understand the concepts associated with and have the skills required for completing each assignment. Subject-matter knowledge and skills are built through education, training, and development, which provide work-related experiences.

* Organizational knowledge and experience. Even if the person knows the subject matter, his/her success also depends on knowledge of and experience within the organization. Knowing whom to contact, who should be involved, and how the organization normally handles things are invaluable tools for creating success.

* Clearly defined expectations. People need to know exactly what they're expected to accomplish to succeed. This sounds simple, but it's one of the most challenging aspects of performance management systems.

* Appropriate authority. It's difficult for people to succeed at most assignments if they don't have the appropriate authority.

* Available resources. Similarly, almost every assignment requires some resources for successful completion.

* Willing support. As John Donne wrote, "No man is an island." Most people need to know that they have access to others who are prepared to support their efforts.

Even with the appropriate antecedents present, employees must choose to behave as desired by their associates, managers, and the organization. We call this being motivated to behave. Although managers can create an environment for success, motivation comes from within a person, not from outside.

Consequences are responses to behaviors that managers can use to foster motivation and change behavior. Managers have the ability to give things to employees or cause things to happen to employees. Managers also have the ability to take things away from or to stop things from happening to employees. This ability to give or take away can be a significant incentive for changing behavior.

There are two ways in which managers may want employees to change their behaviors. Managers want to have some behaviors increased and others decreased. Different approaches are used to motivate these opposite changes. When a consequence is intended to increase a behavior and make it more likely to occur, it's called a reinforcement. On the other hand, when a consequence is intended to decrease a behavior and make it less likely to occur, it's called a punishment.

Consequences are considered positive when they involve something being given or making something happen. In this case, the manager applies/adds something to the employee's situation. Consequences are considered negative when they involve taking away something or stopping something. In this case, the manager removes/subtracts something from the employee's situation.

Figure 6 shows how the two types of consequences (reinforcement and punishment) are applied or removed to encourage or discourage behavior. This two-by-two matrix illustrates the four consequentially-based approaches to use to change behaviors.

Figure 7 Cakes this model a step deeper, showing exactly how it works from the employee's perspective. An example of each of the four approaches is described below:

* Positive reinforcement-apply what the employee does want to encourage the behavior. The employee has requested additional training on a specific software program. When the employee completes a planned project on time and under budget, the manager approves that training. This consequence is designed to encourage the employee to adhere to time schedules and budgets in the future. The training benefits both the employee and the organization by increasing capability.

* Negative reinforcement-remove what the employee does not want to encourage behavior. The employee has been forced to come into the office an hour early for a staff meeting for more than a year. During his/her performance review, the manager asks what can be done to support the employee's efforts. He/she asks to move the meeting to a time within the normal work hours because it is difficult for him/her to arrange for childcare at the earlier hour. The employee has been a high performer for many years. The manager asks if the employee could obtain the information discussed in the meeting some other way, and the employee admits that very few of the discussions impact his/her work. Since minutes are published for the meeting, the employee suggests that he/she could follow up if any pertinent issues were discussed. The manager excuses the employee from the meeting for the next month, and they agree to assess how that process is working at the end of that period.

* Positive punishment-apply what the employee does not want to discourage behavior. The employee has been late three times in the past month. The manager tells the employee that he/she must make up every minute he/she is late in the future by shortening breaks or lunch periods.

* Negative punishment-remove what the employee does want in order to discourage behavior. The employee has represented the work group at the annual sales meeting for the past three years. The employee is behind schedule on a key project. The manager informs the employee that he/she will not attend the sales meeting this year because his/her work has fallen behind.

As previously mentioned, how people react to a consequence becomes an antecedent. This means that the consequences offered not only affect the current assignment, but they also become a factor in future assignments. They also can have a significant impact on relationships. Figure 8 shows what behaviors typically follow positive/negative reinforcement/punishment.

For instance, positive reinforcement usually encourages people to go above and beyond the call of duty. When they feel respected and appropriately recognized and rewarded, most people give everything they've got. Managers who use this approach are respected by their subordinates. The next time employees who have been positively reinforced are given an assignment they are likely to do even better at the behaviors.

Both negative reinforcement and negative punishment can be used to get people to do what is required, but don't expect anything beyond that. As both involve taking something away, they don't leave the employee with any benefits of performing as expected. They create avoidance behaviors, rather than fostering the development of improved capabilities.

When managers offer employees only negative consequences - either not getting what they want or just being able to avoid what they don't want, tension can build, and morale and respect can be undermined.

Some managers are afraid of or are opposed to giving employees recognition and reward. These managers believe that an employee's basic compensation and benefits are sufficient to expect constant compliance. This Scrooge-like behavior on the part of the manager generates Scrooge-like behavior on the part of the employees. In the end, sustainable employee performance is linked directly to sustainable positive reinforcement. Stingy positive reinforcement may generate begrudging short-term compliance, but it won't build a high-performing organization.

Managers should avoid using positive punishment except under extreme conditions. Positive punishment doesn't generate respect, and it may cause rebellion. Repeated use of positive punishment fractures relationships and creates a fear-based environment that many people consider abusive.

Figure 9 shows some of the consequences that can be found in modern workplaces. Unfortunately, there are many situations where these consequences are applied inappropriately, and managers wonder why employees' behaviors aren't changing in the desired way.

Obviously, it is far more effective to encourage employees by recognizing and rewarding their beneficial behaviors. Praise is the simplest form of positive reinforcement, and it is an extremely effective form of recognition when given sincerely and as close to the occurrence of the behavior as possible. Backing up praise with developmental opportunities, bonuses, raises, and other forms of reward is always a good idea.

All too often, however, employees who perform well are taken for granted. In this case, where they receive no recognition or reward, they actually are being negatively punished; the manager is withholding something the employee wants. Most managers don't understand that refusing to give recognition and reward can actually cause employees to stop behaving as expected. It can create a sense of a "master-slave" relationship between the manager and the employee.

In extreme cases, the threat of termination can occur. Suppose the employee has struggled and is put on probation. If he/she doesn't meet expectations, he/she may be dismissed, which is definitely positive punishment - getting something he/she doesn't want.

Even if this employee does meet expectations, however, he/she probably exists in a "cloud," where the manager is watching more intently for poor performance than for acceptable behaviors. Each time that the employee "escapes" termination, he/she is receiving negative reinforcement because something he/she doesn't want is removed. Although that approach is likely to encourage more of the same behavior, it creates an enormously stressful environment.

Whenever possible, it's best to use positive reinforcement. Offer the person something he/she wants for doing what you want. Positive reinforcement usually encourages people to go above and beyond the call of duty. The next time employees who have received positive reinforcement are given an assignment they are likely to repeat the desired behaviors or to do even better at them.

Practice Test

The concepts associated with the "ABC model" are essential to effective performance management, but they're not always intuitive. The following four scenarios can be used to test your understanding of when and how to apply positive/negative reinforcement/punishment. Answers are shown after the scenarios.

1. Michael has been late for the past three work group meetings. Punctuality is one of the work group's norms. What might Michael's manager, Colleen, do to change his behavior?

2. Linda has worked for Mark for the past four years. She's had eight semi-annual performance appraisals during that time. For the first two years, Mark provided detailed feedback, supporting Linda's "superior" rating. For the next three appraisals, however, Mark just checked off his ratings on the appraisal form and dropped the document off on Linda's desk. During the past six months, Linda has seemed less motivated on the job. What might be the matter? What might be done?

3. The cycle-time reduction team identifies three processes for improvement and succeeds in shortening them by an average of 38%. The team's manager, Marielle, decides to recognize the team's efforts by posting a plaque in its honor in the office lobby. How could Marielle do a better job of positive reinforcement?

4. David did a fantastic job leading a recent product design team. Not only was he recognized in the monthly company newsletter, but he also received a performance bonus. Now he's returned to his regular job in engineering. He's glad to be back to his normal work, and he's busy catching up on many tasks that languished while he was on the special assignment. Last Friday, David's boss, Trent, informed him that he was being assigned to lead another team. David is very unhappy about his new assignment. What might be the reason?

Answers

1. First, Colleen might meet with Michael and review the norms, explaining that all team members are expected to adhere to them. Colleen might ask Michael if there are any particular issues that are affecting his punctuality, and she could provide coaching if he requests. Just the fact that Colleen takes the time to explore the situation with Michael is a form of positive reinforcement and may result in improved performance. Assuming that Michael appears on time for the next meeting, Colleen should make sure to thank Michael privately at the end of the meeting so that he knows she noticed.

2. Performance appraisals without detailed feedback are of minimal value. Linda is accustomed to receiving a high rating and obtaining feedback on her strengths and opportunities for improvement. Mark's recent change in behavior might make Linda feel undervalued or "taken for granted." Linda may perceive that Mark is withholding feedback as negative punishment because it removes the positive reinforcement she had received in past appraisals.

3. Research on teams has shown that their members often feel unappreciated; personal contributions get lost in the accomplishments of the team. So, although Marielle has recognized the team as a whole, she hasn't acknowledged the work of the individual team members and how they met expectations. To give appropriate individual recognition, Marielle needs to spend time with the team, learning more about its work process and the tasks the members performed. Then, she can recognize each team member's specific work.

4. Although Trent may believe that he is positively reinforcing David's successful performance leading the product design team, he is not thinking from David's perspective. David might view the new assignment as positive punishment (getting something he does not want) because he's enjoying being back on his regular job. Additionally, David worries that another special assignment will set him even further behind on his regular duties.

Summary

For an organization to succeed on a sustainable basis, it needs to develop strategic plans that can be deployed rapidly to the work group and individual employee levels. Performance management systems provide a means for managers to ensure that employees change behaviors as necessary to fulfill those plans. By applying the "ABC model," managers can see that required antecedents are available and can respond to employees' behaviors with appropriate consequences that will drive future behaviors.

Copyright Association for Quality and Participation Spring 2004
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