THE SCIENCE OF BEHAVIOR IN BUSINESS Business

Is Behavior

COMMON SENSE ? SCIENCE
•? •?
Common Sense isn’t “common” or “sensible”

Ø?? Culturally defined fallacies
A science of behavior distinguishes reality from intuition

Ø?? Increases predictability of behaviors and patterns

WAYS OF KNOWING
1.? Authority – Believe/trust an authority figure 2.? Agreement – Consensus 3.? Personal Experience – First hand account, consistent result 4.? Science – Empirically validated data and analysis – Ongoing process improvement done through scientific approach – Focuses on employee performance behaviors, not their personality – Best way to increase revenue and profits – Only way “Lean” (value add for customers) can be done – Most powerful way to create customer “value add”
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COMMON SENSE KNOWLEDGE VS. SCIENTIFIC KNOWLEDGE
Common Sense Knowledge 1. Acquired in ordinary business and living 2. Is individual 3. Accepts the obvious 4. Is vague 5. Is not reliable for consistent results 6. Gained through uncontrolled experience Scientific Knowledge 1. Must be pursued deliberately, systematically 2. Is universal 3. Questions the obvious 4. Is precise 5. Yields same results every time 6. Gained through controlled experience

DETERMINING CAUSE AND EFFECT
•? •? •?
Remember: Correlation is not causation Case studies may not be enough Finding causes of behavior & demonstrating reliable behavior-results relationships is primary goal

Ø?? Helps formulate effective interventions •? •?
Achieved by scientific methods of research Nomenclature of PM is based in behavior analysis research

Ø?? Determined by specific scientific terminology in Psychology

BUSINESS IS BEHAVIOR
•?
Eliminating people, relocation of resources, hiring process changes, etc. are for specific organizational outcomes

Ø?? Most organizational improvement initiatives ignore behavioral
elements

•? •?

We aren’t interested in changing people, only behavior & the environment Behavior isn’t personal, it’s environmental

BEHAVIOR-BASED ORGANIZATIONS
•? •?
Success in business is defined by an organization’s ability to produce results, and by adding value for customers and stakeholders All organizational results are produced by behavior

Ø??To change results, behavior must be changed

RESULT VS. BOTTOM LINE
•?
Bottom Line

Ø?? Accounting for mission critical behaviors and results Ø?? General measure for entire organization •?
Result

Ø?? The outcome of the process designed to convert inputs into outputs,
later translated into economic value

Ø?? General interest of managers for specific work tasks

COMMON ORIENTATIONS OF MANAGING
•? •? •?
Trial and error

Ø?? Lack of direction
Results-only

Ø?? Don’t care about how something is achieved
Micromanagement*

Ø?? Focus on small, detailed behaviors; deny employee autonomy

* Close supervision while learning new procedures, job responsibilities, or while an employee is involved in organizational change or performance efforts is not micromanagement.

ETHICAL BEHAVIOR = ETHICAL RESULTS
Behavior is lawful

•? •?

Behavior is predictable in that it is controlled by available consequences (drives results in business) Past patterns of behavior are critical indicators for future behavior (under similar conditions)

EDWARDS DEMING
•? •?
Quality guru Examined process variance and employee contribution

Ø?? Noted the importance of
understanding a flawed system

DEMING’S FOUR MS
Value is added for customers by incorporating “lean” concepts (reducing waste, and by eliminating unnecessary activities / behaviors through ongoing process improvement efforts)

Materials Methods

Machinery Manpower
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DEMING’S FOUR MS
Value is added for customers by reducing waste, and by eliminating unnecessary activities / behaviors through ongoing process improvement efforts

Materials
•? Product / Service

Machinery
•? Work tools & equipment

•? Tools in service or training

Methods
•? Initiatives
•? Ongoing process improvement •? PDCA Ø?? Plan Ø?? Do Ø?? Check Ø??Act

Manpower

(Fear Management)

•? Define performance behaviors
Ø?? Objective Ø?? Reliable Ø?? Controllable, Ø?? Measurable Ø?? Active •? Maximize employee efforts
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PERFORMANCE MANAGEMENT IS….
“A systematic, data-oriented approach to managing people at work that relies on positive reinforcement as the major way to maximize performance.”

“…the best kept secret in business!”

Aubrey C. Daniels, Ph.D. !

PERFORMANCE MANAGEMENT (PM)
1.? An area in the Industrial/ Organizational segment of Psychology, but with an emphasis in Behavior Analysis 2.? A non-traditional approach to management

Ø??

Relates to:

ü?? HR Management

ü?? ü?? ü?? ü?? ü?? ü?? ü?? ü?? ü??

Human Factors Organizational Design / Behavior Developmental / Instructional Systems Design Compensation Planning Management & Leadership Performance Measurement Marketing Sales Customer & Client Service
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A PM APPROACH TO UNDERSTANDING WORKPLACE BEHAVIOR
•? •? •?
Precise measurement of performance and results of performance Analyze performance data and environments in which performance occurs Design (Plan), Implement (Do), Evaluate (Check), Revise (Act) practical solutions to produce positive, effective workplace performance change

MISCONCEPTIONS OF PM
1.? PM is not performance appraisal. Ø?? Terms overlap, but performance appraisals are too delayed and ineffective at changing behavior. 2.? PM is not based on organizational hierarchy. Ø?? Promotes self-management and assist all levels of an organization – employees are responsible for improving processes, activities, and self-development 3.? PM is not a rigid, narrow system. Ø?? Promotes creativity, flexibility, and initiative 4.? PM is not common sense. Ø?? Based on a science of behavior and operant conditioning 5.? PM is not attaboy, warm fuzzies, or pat-on-the-back. Ø?? Requires proper contingency management and understanding of reinforcement

VALUE OF PM
1.? PM produces short-term and long-term results. 2.? PM requires no psychological training. 3.? PM is a system for maximizing all performance. 4.? PM creates an enjoyable workplace. 5.? PM can be used to enhance relationships. 6.? PM is an open system. 7.? PM works.

PERFORMANCE MANAGEMENT IMPACT
Successful Intervention Areas How Adds Value

•? •? •? •? •? •? •? •? •? •? •? •?

Customer Service Distribution and Transportation Engineering Information Management Manufacturing Research and Development Safety Marketing Sales Compliance Vendor Performance Employee / Organizational Performance

•? •? •? •? •? •? •? •?

Increases productivity Enhances quality of products or services Improves efficiency Promotes individual initiative Improves teamwork Increases risk management and safety compliance Improves leadership Improves revenue & profits

A SCIENTIFIC EXPLANATION WHY PEOPLE DO WHAT THEY DO

THE ABC MODEL: AN INTRODUCTION
A tool for understanding causes of behavior

Ø?? Examining factors and variables that both precede (antecedents) Ø?? and follow (consequences) the occurrence of a behavior

THE BEHAVIORAL LAW
Behavior is a function of its consequences

Ø?? The Consequence of a behavior ultimately controls the occurrence of
the behavior, while the Antecedent helps to indicate when the behavior should/not occur

Ø??You get what you reinforce!!

THE PERFORMANCE MANAGEMENT PROBLEM SOLVING PROCESS
(CREATING VALUE ADDED PERFORMANCE BEHAVIORS)

PM PROBLEM SOLVING PROCESSES
Pinpoint
Ø?? Define behaviors vs. non-behaviors Ø?? Define results that can be measured. Ø?? Define behaviors that lead to desired results that can be measured. Ø?? Use counting or objective judgment. Ø?? Measure quality, quantity, timeliness, improvement, and cost of performance. Ø?? Done correctly, can be R+ Ø?? Provide good data. Ø?? Show how to change future performance Ø?? Can provide R+ if done correctly. Ø?? Determine if consequences will lead to desired performance behaviors. Ø?? Determine if consequence appropriate. Ø?? R+ demonstrated by accelerated desired performance over time. Ø?? Determining if planned intervention produced desired change. Ø?? Monitor/Make needed changes.

Measure

Feedback

Reinforce

Evaluate

THE PROBLEM SOLVING PROCESSES
Pinpoint

Concept
Ø?? Define results correctly. Ø?? Ø?? Define behaviors that lead to desired results that can be measured. ü?? M = Measurable ü?? O = Objective ü?? R = Reliable ü?? C = Controllable by employee Anything a dead man can do is not a Pinpoint. SMART goals often violated Dead Man’s Rule.) Ø?? Don’t create losers. Ø?? Use counting or objective judgment. Ø?? Measure quality, quantity, timeliness, improvement, and cost of performance.

Goal
Clearly define what is to be done in easy to understand measurements.

Objectives
Ø?? Perform accurate assessment of needs. Ø?? Demonstrate understand customer and client needs.

Measure

Ø?? Be clear on progress or on Ø?? Create clear, easy success needed changes / metrics. revisions. Ø?? Keep everyone up-to-date. Ø?? Avoid unnecessary Ø?? Measure improvements. actions. Ø?? Keep up-to-date with good data Ø?? Educate on products / service Ø?? Use R+ behaviors (be professional at all times). Ø?? Make sure customer perception is positive – go beyond meeting their immediate needs. Ø?? Verify customer needs met. Ø?? Suggest changes & options when appropriate. Ø?? Revise Ø?? Be professional at all times. Ø?? Take time to clearly explain. Ø?? Reflect to ensure understanding. Ø?? Keep team updated. Ø?? Follow Outcome standards. Ø?? QA type of reinforcement used.

Feedback

Ø?? Provide good data. Ø?? Show how to change future performance.

Reinforce

Ø?? Determine if consequences will lead to desired performance behaviors. Ø?? Determine if consequence appropriate. Ø?? R- (Successful manager, goals on time) Employees perform because the “have to”. Ø?? R+ (Effective Manager, continuously improve time to goal attainment Employees perform because they “want to”. Ø?? Determining if planned intervention produced desired change. Ø?? Monitor/Make needed changes.

Evaluate

Ø?? QA everything. Ø?? Recommend changes. Ø?? Always seek to improve. processes and relationships.
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R+ EXAMPLE: CUSTOMER SERVICE
1.? Creating positive impression and customer feeling that they have been effectively helped as a result of understanding customer needs at all times. A.? Exhibiting a positive, professional, courteous, and friendly demeanor while demonstrating ethical behavior in all interactions and transactions. B.? Working with customer to determine best ways to fix problems, including getting their ideas. C.? Clearly explaining how UIS can meet current and potential future needs efficiently. D.? Appropriately greeting and ending contact. E.? Following up to make sure customer problem has been solved, and to possibly offer other services to better help them, as appropriate.

R+ EXAMPLE: CUSTOMER SERVICE
2.? Increasing customer satisfaction through effective use of communication. A.? Listening and or paying attention in any type of communication. B.? Identifying the customer’s concerns and problems, and giving information and solutions in a professional and friendly manner. C.? Asking questions in an appropriate manner while reflecting back with the customer to insure understanding of needs, explanations, and answers to questions through appropriate language skills. D.? Politely asking for more information when a customer says no or they need more time to consider. E.? Demonstrating good customer relations over the phone by greeting and ending conversations in a professional and friendly tone. F.? Demonstrating good customer relations in email by providing timely feedback, professionally and in a positive tone clearly indicating what you mean in inquiries and in giving information and explanations. G.? Being readily accessible and returning all communication in a timely manner.
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MANAGEMENT RESPONSIBILITIES
1.? Manage and control the premises. 2.? Select, hire, promote, suspend, dismiss, assign, supervise, and discipline employees. 3.? Determine, change, and enforce starting time, quitting times, shifts, and work schedules. 4.? Write and revise employee roles, job descriptions, duties, responsibilities, and performance standards, expectations, and needed background and experience. 5.? Transfer employees. 6.? Determine and change the size of, composition of, and qualifications of the work force. 7.? Determine and change methods and means by which operations are to be carried out. 8.? Assign duties to employees in accordance with the needs and requirements as determined by the company. 9.? Determine that employees are following policies and procedures. 10.? Carry out all other ordinary functions of management deemed in the best interest of the company, including requirements of applicable law.
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EMPLOYEE RESPONSIBILITIES
1.? Meet customer needs – go beyond when possible. Ø?? Educate customer on appropriate products and services. Ø?? Meet performance outcomes and standards. Ø?? Provide “best in class” service. Ø?? Keep current on all job knowledge to create and to continue “best in class” products and service. 2.? Communicate professionally and timely with all stakeholders. 3.? Provide input on how to improve processes on an ongoing basis. 4.? Assist other team members, and stakeholders when appropriate. 5.? Follow up – follow up – follow up. 6.? Follow all policies and procedures.

NEXT STEPS
•? •? •? •?
Using Job Analysis, revise / create accurate job descriptions. Training on Reinforcement –for better teamwork and for “best in class” customer service that will lead to “Raving Fans.” Train everyone on program. Monitor / Evaluate / Revise / Train.

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