Exam 3 For Hrm

Front 1

Performance Management

Back 1

Formal, structured process used to measure, evaluate, and influence employees, job related attributes, behaviors and performance results.

Front 2

Motivation

Back 2

Decision about which behaviors to engage in and decision about how much effort to expend

Front 3

Expectancy Theory

Back 3

States that people choose their behaviors and effort levels after considering whether their behaviors and effort will improve their performance and lead desired consequences

Front 4

Expectancy

Back 4

If I make an effort, will I be able to perform as intended?

Front 5

Instrumentality

Back 5

What consequences, if any, will follow from my decision to perform?

Front 6

Valence

Back 6

How much do I value the consequences associated with the intended behavior?

Front 7

Valid Performance Measure

Back 7

Accurately reflects all aspects of the job, and nothing else.

Front 8

Deficient Performance Measure

Back 8

If the performance measure does not assess all of the behavior and results that are important an relevant to the job

Front 9

Contaminated Performance Measure

Back 9

If the performance measure assesses anything that is unimportant or irrelevant to the job

Front 10

Performance Criteria

Back 10

The dimensions against which the performance of an incumbent, a team, or a work unit is evaluated

Front 11

Trait-based Criteria

Back 11

Focus on personal characteristic, such as loyalty, dependability, communication ability, and leadership

Front 12

Behavioral Criteria

Back 12

Focus on how work is performed.

Front 13

Results Criteria

Back 13

Focus on what was accomplished or produced rather than on how it was accomplished or produced

Front 14

Focal-point Approach

Back 14

Performance measurement for all employees occurs at approximately the same time

Front 15

Anniversary Approach

Back 15

Distributes the task of reviewing performance and providing feedback over the year

Front 16

Self-Appraisal

Back 16

When Employees assess their own performance

Front 17

Upward Appraisal

Back 17

When such surveys are used to evaluate the performance of specific managers

Front 18

360-Degree Appraisal

Back 18

When evaluation from supervisors, subordinates, peers, and employees themselves are all used to measure performance

Front 19

Performance Appraisal

Back 19

Involves evaluating performance bases on the judgment and opinions of subordinates, peers, supervisors, other managers, and even the employees themselves

Front 20

Norm-Reference Format

Back 20

The rater is forced to evaluate the individual or team and make comparison to others

Front 21

Straight Ranking

Back 21

The appraiser lists the focal employees (or teams of employees) in order, from the best to worst, usually on the basis of over-all performance

Front 22

Forced Distribution

Back 22

The appraiser distributed employees across several categories of performance following a set rule about the distribution of ratings that are permitted

Front 23

Behavioral Anchored Rating Scales
(BARS)

Back 23

Provide appraiser with specific examples of the behaviors that go along with each value that can be assigned to an employee's performance

Front 24

Behavioral Observation Scales (BOS)

Back 24

Ask appraisers to report how frequently employees engage in specific behaviors

Front 25

Direct Index Approach

Back 25

Measures performance using objective, impersonal criteria, such as productivity, absenteeism, and turnover

Front 26

Balanced Scorecard

Back 26

Using multiple objective measures that tap into numerous different dimensions of performance

Front 27

Management by Objectives (MBO)

Back 27

begins with the establishment of performance objectives (goals) for the upcoming performance period; performance is then measured against the objectives that were set.

Front 28

Positive Reinforcement

Back 28

Involves the use of positive rewards to increase the occurrence of the desired performance

Front 29

Punishment

Back 29

Decreases the frequency of undesirable behavior

Front 30

Biometric Technologies

Back 30

Which are technologies using unique qualities of body parts for identification

Front 31

Total Compensation

Back 31

Refers to the monetary and non-monetary rewards offered to employees

Front 32

Pay Fairness

Back 32

Refers to what people believe they deserve to be paid in relation to what others deserve to be paid

Front 33

Pay Satisfaction

Back 33

Which is the amount of positive or negative feeling employees have toward their pay

Front 34

Monetary Compensation

Back 34

Includes direct payment such as salary, wages and bonuses, and indirect payments such as payments to cover benefits and services

Front 35

Non-monetary Compensation

Back 35

Includes many forms of social and psychological rewards-recognition and respect from others, enjoyment from doing the job itself, opportunities for self-development, and so on

Front 36

Pay Mix

Back 36

The way an organization distributes pay among all elements of total compensation, including monetary versus non-monetary elements

Front 37

Base Pay

Back 37

Refers to the wage or salary an employee receives, exclusive of any incentive pay or benefits

Front 38

Pay Level

Back 38

Refers to how an organization's overall monetary pay compares to that of other organizations

Front 39

Industry Capital Intensity

Back 39

The ratio of capital to total expenses

Front 40

Industry Unionization

Back 40

Is the percentage of organization in the industry that are unionized

Front 41

Fair Labor Standards Act (FLSA)

Back 41

Sets minimum wages, maximum hours, child labor standards, and overtime pay provisions for most employees

Front 42

Non-Exempt Employees

Back 42

Employees who are protected by the FLSA

Front 43

Exempt Employees

Back 43

Are not covered by the minimum wage or overtime provision of the FLSA

Front 44

Equal Pay Act

Back 44

Prohibits an employer from discriminating

Front 45

Comparable Worth

Back 45

Which is based on the principle that pay for even dissimilar jobs should be equal if the jobs have a similar overall value to the organization

Front 46

Pay Structure

Back 46

Combines job evaluation information an information about market pay rates in order to establish a policy that specifies the base pay of employees in each job

Front 47

Job Evaluation

Back 47

A procedure for establishing the relative internal worth of job

Front 48

Internal pay equity

Back 48

Employees should perceived that they are paid fairly compared to others in the same organization, given the contribution that they and others make to the organization

Front 49

Job Based pay structure

Back 49

The pay people receive is determined primarily by the job they hold

Front 50

Compensable Factors

Back 50

The dimension of work that an organization chooses to use when establishing the relative value of jobs

Front 51

Job Classification Method

Back 51

First groups jobs into a smaller set of job classes and then the job classes (not individual jobs) are ranked according to their value of importance to the organization

Front 52

Point Factor Rating Method

Back 52

A sophisticated system for assigning values to jobs based on numerical ratings of job elements

Front 53

Competency-Based Job Evaluation

Back 53

Which keeps the focus on the job, but emphasizes the competencies needed to perform the job, rather than the job duties

Front 54

Broadbanding

Back 54

The use of pay structures that have very few (e.g. three to five) pay grades

Front 55

Skill-Based pay

Back 55

Rewards employees for the range, depth and types of skills they're capable of using, regardless of whether the job they currently hold requires the use of those skills.

Front 56

External Pay Equity

Back 56

When employees feel they are being paid fairly relative to what people in similar jobs (or with similar competencies) are paid by other employers

Front 57

Compensation Survey

Back 57

Used by employers to obtain data about pay rates in the external labor market

Front 58

Benchmark Jobs

Back 58

Jobs commonly found across a range of organization an they involve essentially the same work and responsibilities regardless of the company

Front 59

Market Pay Policy

Back 59

Established by plotting pay rates against the evaluation points that the company assigned to the benchmark job

Front 60

Organization Pay Policy

Back 60

Specifies the pay rates that will be used for the jobs in a particular organization

Front 61

Lead Policy

Back 61

Indicates that the organization intends to pay somewhat above the market rate

Front 62

Match Policy

Back 62

Sets the organization's policy line at the middle of the market

Front 63

Lag Policy

Back 63

Where the organization intentionally pays below the market

Front 64

Shadow Range

Back 64

Which is a temporary readjustment that expands the size of the minimum and maximum pay rates associated with a pay grade

Front 65

Salary Budget Surveys

Back 65

Which estimate the amount of salary increases for the coming year

Front 66

Individual Pay Equity

Back 66

Established when the individual perceives that he or she is paid fairly compared to others in the same organization with the same job

Front 67

Green-Circled

Back 67

Indicating that the person needs to be given a pay adjustment to bring his or her pay up to at least the pay grade's minimum

Front 68

Red-Circled

Back 68

Indicating that the person's pay is frozen and that he or she should not be offered any more pay raises

Front 69

Performance-Based pay

Back 69

Recognizes that people working in the same job can differ greatly in terms of the value they contribute to the organization , and it seeks to provide employees with an incentive for maximizing the value they contribute

Front 70

Variable Pay

Back 70

Cash rewards that are tied to some aspect of performance an paid in lump sums rather than as raises

Front 71

Recognition Awards

Back 71

Noncash rewards as an after-the-fact display of appreciation or acknowledgment of an individual's or team's desired behavior, effort, or business result that supports the organization's goals and values

Front 72

Merit Pay

Back 72

base pay, (the pay to be received regardless of performance) is set at a market rate and a small pool of money is allocated for distributing annual raises that reflect the past year's performance of each employee

Front 73

Incentive Pay

Back 73

Base pay near the market average and employees earn additional monetary compensation for excellent performance

Front 74

Earning-At-Risk pay

Back 74

Base pay is set below the market average and a large portion of total earnings are paid based on performance

Front 75

Line-of-Sight

Back 75

A term managers often use to refer to the amount of influence an employee has on a performance measure

Front 76

Spot Awards

Back 76

Are granted on the spot to recognize employees for performing beyond the call of duty

Front 77

Lump Sum Merit

Back 77

Which ties performance appraisals to lump sum bonuses rather than to raises

Front 78

Merit Matrix

Back 78

Which is a tool used by managers and compensation professionals to determine the merit increase using information about employees performance ratings

Front 79

Straight Piecework Plan

Back 79

Employees are guaranteed a standard pay rate for each unit

Front 80

Differential piece-rate plan

Back 80

More than one rate of piecework pay is set for the same

Front 81

Standard Hour Plan

Back 81

Sets a standard time for each unit of production and uses this time unit to determine how much employees are paid

Front 82

Gainsharing Plans

Back 82

Involve measuring a work unit's costs and productivity, then sharing future gains with employees

Front 83

Current Distribution plans

Back 83

Provide a percentage of profits to be distributed quarterly or annually to employees

Front 84

Deferred Distribution plans

Back 84

Place earnings in an escrow fund for distribution upon retirement, termination, death, or disability

Front 85

Combined Distribution plans

Back 85

Distribute a portion of profits immediately to employees, setting the remaining amount aside in a designated account

Front 86

Commission

Back 86

Pay based on a percentage of the sales price of the product

Front 87

Employee Stock Ownership plan
(ESOPs)

Back 87

Grant shares of stock to employees, frequently as a means of long-term savings and retirement

Front 88

Stock Appreciation Rights (SARs)

Back 88

Grant employees cash or stock awards based on the increase in stock price over a specified time

Front 89

Stock Option

Back 89

Gives an employee the right to buy stock during a specified time period or under other specified conditions

Front 90

Underwater Stock option

Back 90

Have an exercise price that is above the market value of a company's stocks

Front 91

Backdating

Back 91

Involves changing the option date after the stock is issued to a date when stock prices were particularly low which maximizes the option value