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104 Cards in this Set
- Front
- Back
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When should PA be conducted, ideally
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Right after employee finishes major assignment
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When should a PA be conducted, practically
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Every 6 to 12 months at specified time or on each employees anniversary date of hire.
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Downside of PA all employees at once
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May burden raters and make them rush to get done
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Rater Training – 3 types of info to cover
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Purpose, procedures and methods, including type of form, common rating errors
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Common rating errors
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Varying standards, recency effect, similar to me errors, central tendency strictness leniency, contrast and halo/horn effect
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Central tendency
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Rating the performance of all employees is rated “3” on a 5 point scale
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Leniency
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Assigning a grade of A to all students on an exam
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Recency
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Good performance in Jan-Nov, in early Dec made major error and appraisal at the end of Dec was very low
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Similar to me
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2 people graduate from the same college and if that persons appraisal is inflated
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Halo/Horn effect
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Being impressed with someone in one category and rated that person high on everything else without considering other factors
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Why the PA form is not the most important consideration
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The best form depends on appraisals purpose. No one best PA form exists
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Categories of PA forms
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Trait, behavioral, results
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Trait PA form category
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Graphic rating scale, forced choice, essay
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Behavioral PA form category
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Critical incidents, behaviorally anchored rating scale (BARS)
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Results PA form category
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Productivity measures, managements by objectives (MBO)
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Types of PA forms
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Graphic rating scale, behaviorally anchored rating scale, forced distribution
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How to improve a Sample graphic rating scale
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Based on job analysis, ambiguous items, different factors lumped together, are job related factors or traits rated, are sale points defined, is quantitative info rated subjectively
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Do not ask raters to check promotable without knowing
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The position and knowledge skills and abilities (KSAs) needed, determining promotability is impossible
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Other concerns about graphic rating scales
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Use objective measures, don’t rate absenteeism and tardiness. Avoid an overall rating, raters compute it first and then manipulate factor ratings to get desired overall rating.
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Suggestion for graphic rating scale and other types of PA forms
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Include disclaimer, a place for employee to sign the form, signature means employee has seen the appraisal, not that they necessarily agrees with it.
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Behaviorally Anchored Rating Scales (BARS)
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Several vertical scales, 1 for each of jobs major performance factors or job dimensions. Developed to overcome ambiguity and vagueness of graphic rating scale, people who know the job develop the vertical scales
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Summary of development of 1 BARS vertical scale 1
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Those who know the job write separate incidents illustrating: outstanding, poor, average, performance on 1 job dimension or factor.
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Summary of development of 1 BARS vertical scale 2
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Incidents are statistically analyzed.
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Summary of development of 1 BARS vertical scale 3
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If 70% of those submitting them agree that an incident illustrates great performance on a job dimension, it becomes an anchor for outstanding behavior on that dimension and is written at top of the vertical scale.
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PA is a process and will be flawed if raters are not trained and if pa is not based on job related factors, even with a great form
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a
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Forced distribution – Bell curve of rank and yank
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Assumes employee performance follows a normal distribution
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Problems with forced distribution method of performance appraisal
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In small depts., employee performance may not follow the bell shaped normal distribution, raters dislike being forced to rate some employees very low, increased chance of lawsuit
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Which firms used the forced distribution
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GE – underperformers fired if no performance improvement, Microsoft, HP, Intel, Goodyear, Ford
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Conducting the appraisal
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Consider employees performance during entire appraisal period, don’t consider incidents that happened before current appraisal period, avoid rater errors
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Performance appraisal interview guidelines
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Let employee prepare in advance and complete self assessment, focus on behavior, not personality, focus on improvement, consider assertive communication, consider types of PA interviews
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Types of Performance appraisal interviews
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Tell and sell, tell and listen, problem solving
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Tell and sell
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Persuade employee to improve
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Tell and listen
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Appraiser communicates and then allows employee to release negative feelings
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Problem solving
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Actively listen, accept and respond to feelings, explore ways to resolve issues together
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Performance appraisal interview guidelines donts
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Avoid human relations sandwich, don’t criticize too much, don’t fear giving negative feedback and DO give specific examples of behavior to be changed
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Globalized labeling of people (GLOPS) and how to fix them
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Slob – left vehicle full of garbage, uncooperative – disregarded instructions
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Appraisal record retention
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How long they should be kept, firm needs documentation if sued, one bad appraisal shouldn’t follow employee forever
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Audit of PA system
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What works well, what could be improved
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Data analysis
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If PAs purpose is administrative then monitor promotions, size of pay raises, by race ethnicity gender and age
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Compensation formal definition
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An exchange of labor for monetary rewards
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Direct compensation
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Base pay wage or salary, variable pay = incentive compensation
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Indirect compensation
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Employee benefits, avg around 40% of total payroll
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Top managers roll in compensation
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Make policy decisions regarding external competitiveness and internal consistency of pay system
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Top management compensation decision external competitiveness
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1st quartile – lag market, 2nd quartile – meet market, 3rd quartile – lead market
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Role of supervisors in compensation
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Make starting pay and raise amount decisions after performance appraisal for individual employees
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Role of HR manager in compensation
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Job evaluation, wage surveys, employee benefits admin
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Role of employees in compensation
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Sometimes decide on benefit preferences
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Pay for performance standard definition
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Method to tie compensation to employee effort and accomplishment
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Issue with pay for performance standard
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May encourage dysfunctional competition and discourage teamwork
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Equity Theory
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Explains how people respond to situations in which they perceive they’ve received less or more than they deserve
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Pay equity
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Employees perception that compensation received equals the value of the work performed
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Relative deprivation
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The employees view on the input and output of the job is less then other view on the input and output of that job
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Pay secrecy
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Organization policy requiring pay levels and decisions about employee pay to be kept secret, may forbid employees from discussing their pay. Doesn’t work
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Pay secrecy negative
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Can create employee misperceptions and distrust of pay fairness and pay for performance standards
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Pay secrecy vs. pay openness
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Trend toward pay openness. This increases perceptions of equity if compensation is based on performance
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3 legs of compensation footstool (structure)
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job evaluation data, wage and salary survey data, individual performance data
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No job evaluation method is objective
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All methods require subjective judgment. Some are more systematic than others. Current complete job descriptions are prerequisites for all job evaluation methods
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Types of job evaluation systems
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Whole job methods, factor based methods
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Job ranking system of job evaluation
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Puts jobs in order from most to least valuable to eh organization based on their relative worth. Oldest method of job evaluation
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Job ranking positives
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Relatively quick when only a few jobs, avoids hypocrisy of trying to be scientific
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Job ranking negatives
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Difficult to judge entire job, doesn’t show amount of difference between jobs ranked next to each other like 2 and 3
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Point system of job evaluation
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Quantitative system that determines relative value/worth of a job within an organization based on total number of points assigned to it
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Steps in point system of job eval
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Choose compensable factors and define degrees, decide on relative importance of compensable factors, determine total number of points and assign point value to degrees, assign points to each job, rank jobs by total points from high to low
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Compensable factors
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Whatever an organization is willing to pay for
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Point manual
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Handbook defining and describing compensable factors, sub factors, and degrees
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Why do organizations conduct wage and salary surveys
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To maintain external pay equity perceived pay fairness compared to other employers
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Key jobs are
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Important to employees and organization, widely known in the labor market, relatively stable in terms of job content
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Outside sources of pay data
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Bureau of labor statistics, sate and local surveys, online survey data, institute of mgt and admin
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The wage curve
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A curve in a scatter gram showing relationship between the relative worth of jobs and wage rates
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Red circled employee
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Make more then the pay grade for that job
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Green circled employee
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Makes less then the pay grade for that job
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Broadbanding
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Reducing number of pay grades into a few wide salary groups
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Pay grades
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Groupings of job that may differ in content but have about the same job worth
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Fair labor standards act 1938
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Set federal min wage, requires payment of overtime for more than 40 hours to nonexempt employees, regulated child labor, equal pay act 1963 amended to it
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Comparable worth
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Jobs different in content but determined to be of equal value to an organization should be paid the same
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Wage rate compression
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Pay distinctions among those with different experience levels are very small or don’t exist
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Compa-ratio
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Current pay divided by the midpoint of the pay range
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5 requirements for an effective benefits program
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set specific benefits objectives, allow employee involvement, consider costs and advantages of employee benefit or service before introducing it, provide for flexibility, communicate benefits information
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Why do employers offer benefits
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Attract good employees, improve morale, cut turnover, increase job satisfaction, increase motivation, enhance firms image
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Voluntary benefits
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Payment for time not worked like vacations, holidays, sick leave, paid time off
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Government mandated benefits in the US
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Social security insurance, unemployment compensation, workers compensation, COBRA, family and medical leave, older worker benefit protection act, patient protection and affordable care act
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Unemployment insurance original purpose
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Help people avoid financial calamity due to temporary unavoidable job loss
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Unemployment insurance goal
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Provide about 50% of income a person would earn while employed, not to create disincentive to work
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Reasons for disqualification from unemployment insurance in WI
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Voluntarily leaving without good cause, refusing suitable work, being fired for gross misconduct, fraud
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Original purpose for workers comp
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To provide prompt medical payments for work related accidents or injury regardless of fault and to provide employers with incentive to reduce accidents
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Types of injuries under workers comp
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Temporary total disability, permanent partial disability, permanent total disability, and temporary partial disability
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Temporary total disability
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Totally disabled but expected to recover fully and return to work
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Permanent partial disability
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Loss of bodily part such as hand or foot
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Permanent total disability
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Employee lives but is unable to work again
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Temporary partial disability
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Sprains, broken limbs that will heal
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Provisions to FMLA of 1993
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12 weeks unpaid, job protected leave per 12 months for birth of child, adoption, foster, employee serious health, spouse child parent serious health, qualifying conditions related to family members of us military
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Qualifying conditions for military
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Short term deployment, military events, childcare
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Which employers must comply with FMLA
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Private employers with 50 or more employees within 75 miles of workplace, public sector employers, federal, sate, local and education institutions
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Employees are eligible for FMLA leave if they
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Worked for a covered employer for at least 12 months, worked for that employer at least 1250 hrs during the last 12 months
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Provisions to FMLA in 2008
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26 weeks unpaid, job protected leave per 12 months to family member to care for active military member under certain conditions
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Human Resource Management is
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Managing people through staffing, HR development, compensation and benefits, health, safety and security, employee and labor relations to achieve organizations goals effectively and efficiently
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5 major HR functions
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Staffing, development, compensation, health and safety, employee labor relations
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Staffing
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Job analysis, human resource planning, recruitment, and selection
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Job analysis
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Gathering information about duties, tasks, responsibilities, knowledge, skills and abilities needed to perform the job satisfactorily
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HR development
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Orientation, training, management development, organizational development, career planning, performance appraisal
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Compensation
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Base pay, incentives, employee benefits
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Job evaluation
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Value of the job itself no matter who is doing it
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Health and safety
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Wellness, stress, legal compliance with osha workers comp and the right to know info, safety and security programs, accident investigation
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Employee and labor relations
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Communication with labor unions, discipline
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