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67 Cards in this Set
- Front
- Back
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Performance Management
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Process through which managers ensure that employee's actions are congruent with organization's goals and policies
Done through performance appraisals |
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Performance Appraisal
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Identification, measurement, and management of human performance in organizations
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Why orgs use PM?
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Strategic-link activities to org goals
Administrative-pay raises, promotions, discipline, recognition Developmental-help employees improve performance, strengthen job skills and identify training needs |
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How to do appraisals correctly
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1. Tie to orgs goals and policies
2. Evaluate employees in same manner 3. ID strong and weak performers 4. Provide legal justification for raises and firings |
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Source of info for appraisals
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Managers
Peers Self Customers 360 degree feedback |
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360 Degree Appraisal
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Combination of peer, self, subordinate reviews (sometimes customer too)
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Criteria used to evaluate PM Systems
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Strategic Congruence-does employees performance help achieve org goals/strategy?
Validity-extent to which PM technique measures relevant aspects of job performance Reliability-measure of consistency in a measure Acceptability-do employees believe system is fair |
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Procedural, Interactional, Distributive Justice
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Procedural-fairness of process
Interactional-fairness of interpersonal treatment during evaluation Distributive- Fairness of outcomes one receives |
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Outcomes of justice perceptions in PA Systems
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Organizational Outcomes-commitment, turnover, trust in management
Employee Outcomes-perception of fairness, satisfaction with PA and system, satisfaction with manager, motivation to stay |
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PM Process
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Planning-objectives and standards
Execution-Feedback, preparing for reviews Appraisal-absolute/relative judgement Review-PA meeting |
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Ultimate goal of job evaluation
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To obtain internal equity of pay structure
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CEO Pay is x times a regular employee
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500X
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Elitest, Egalitarian Pay Systems?
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Egalitarian-most employees under same compensation plan
Elitist-different comp plans based on level in org or employee group |
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Legally Required job benefits
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SS, workers comp, unemployment insurance, family and medical leave
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Inter-Rater Reliability
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Used to assess degree to which different raters give same score
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Family and Medical Leave Act
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1993
Federal law that requires 12 weeks for unpaid leave in event of birth, adoption, to take care of sick parent or spouse, or to take care of health problems that effect job performance |
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How orgs can ensure there is due process (fairness) in PA systems?
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Adequate Notice-inform people of objectives, and process, provide regular feedback, allow employees to participate in development of standards
Judgement based on evidence-apply consistent standards across individuals, explain decision with supporting evidence (critical incident), allow employees to appeal Fair Hearing-raters should be familiar with ratees work, ratees should be allowed to present explanations, ratees should be allowed voice during process |
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Relative Judgement
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PA system that asks employers to compare employees performance to performance of other employees doing same job
Simple ranking, forced distribution, paired comparison |
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Absolute Judgement
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Appraisal format that asks employers to make judgements about an employee's performance solely on performance standards
Behavioral appraisal, MBO, trait appraisal |
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Trait, behavioral, and Outcome Appraisals
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Trait-asks supervisor to rank employees on decisiveness, reliability, energy, and loyalty
Behavioral-whether worker demonstrates certain behavior (works well with others etc.) Outcome/Results-measurable goals (sales, production) |
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Types of behavioral appraisal systems
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Critical Incidents
Behaviorally Anchored Rating Scale (BARS)-supervisor rates employees based on items on numerical scale Behavioral Observation Scales-rank 1-5 on behavioral actions |
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MBO
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Employer and employee sit down and set clear objectives and goals for period
Goals are: specific, measurable, difficult, and objective |
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Advantages/Disadvantages of MBO
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Ads-minimizes subjectivity, high acceptability, links to orgs strategy
Disads-measures may be deficient, focuses on some behaviors but ignores others (quality), may lead workers to disregard ethics to reach goal |
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Rater Erros in PA Systems
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Similar to me effect
Distributional effect-leniency, strictness, central tendency Halo & Horns effect-person rated positive/negative on one characteristic and this effects overall appraisal Receny/Primacy effect-recall items at end of list and forget beginning or remember first things but not middle |
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Frame of Reference Training
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Provide hypothetical behavioral actions of employees
Have raters give feedback and discuss Continue process until all raters have similar frame of reference for evaluating employees Result is more accuracy and common evaluation standards |
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Managers and PA process (before and after PA meeting)
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Before Review Meeting-give feedback frequently, praise publicly and reprimand privately, ignore trivialities, keep accurate records, ask employee to rate self
During review meeting-encourage subordinate participation, be specific, accent positives, focus on solving problems, agree to goals and set new review date |
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Training
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The process of providing employees with specific knowledge/skills to perform their job
Best way to enhance productivity, need extensive training for HPWS |
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Components of Training
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Needs assessment-process of determining orgs training needs
Training design Evaluation Transfer of training |
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Steps in needs assessment
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1. Org Analysis-what does org need
2. Task analysis-What will training cover 3. Person analysis-which people need training and for what |
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Training Delivery Methods
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On the job training-job rotation, internships
Classroom training E-Learning (outside class) Blended Classes |
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E-Learning (Ads and Disads)
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Ads-consistent worldwide training, increases convenience, cost saving
Disads-Up front cost, lack of interaction between trainees *Best method has aspects of different types of training |
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Kirkpatrick's 4 Level Framework for evaluating training effectiveness
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Level 1-Reaction (employee satisfaction)
Level 2-Learning (acquisition of KSA) Level 3-Behavior (employees use new skills on job) Level 4-Results (company return on training investment |
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Transfer of Training
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Using training skills on job
Transfer most successful when: high level of managerial support, opportunities for practice, employees held accountable (climate for transfer) |
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Training v. Development
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Training-providing employees with specific skills or or helping them correct deficiencies in performance
Development-Provide employees with with abilities org will need in future (formal education, assessment center, job experiences, relationships) |
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Career development
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Ongoing and formalized effort that focuses on developing enriched and more capable workers
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Soft Development Activities
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Leadership Training
Working in teams Communication Ethics Time Management Decision Making |
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Protean Career
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Career that is changing frequently based on changes in persons interests and abilities and work environment
Most people have 3-4 careers |
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Psychological Success
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Feeling of pride and accomplishment that comes from achieving life goals
Does not have to relate to work |
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Approaches to employee development
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Formal Training-tuition assistance
Assessment-centers, appraisals Job experiences-most development occurs through on the job training (job rotation) Interpersonal Relationships-mentors and coaches |
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Purposes of Mentorship Program
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Socialize new employees
Provide informal network Pass on values of org leaders to rest of org. Outlet for advice and stress management |
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Mentoring Support Functions
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Vocational-help protege with current projects and prepare for upward movement
Psychosocial-assist in developing own identity in org while promoting self confidence |
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Characteristics of Successful mentorship programs
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Participation voluntary
Matching process flexible Mentors chosen on abilities Clear purpose Minimum level of contact is specified Program is evaluated Employee development rewarded |
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Coaching Programs
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One on one relationship to motivate employees, help them develop skills
Best coaches are empathetic, supportive, self confident but do not appear to know all answers Confidentiality |
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Suggestions for Advancement
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Functional performance as important as interpersonal
Focus on key org values Rarely complain and frequently offer solutions Work well in team and share credit Avoid negative or apathetic attitude |
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Total Compensation
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Base Pay+Pay incentives+indirect compensation (401K, insurance)
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Internal v. External Pay Equity
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Internal-how you compare to pay within org
External-how you measure v. industry/globally |
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Distributive Justice Model v. Labor Market Model
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Distributive-employees think they are fairly paid when the ratio of their inputs and outputs is equivalent to others performing same job
Labor Market-wage for given job is set by supply and demand for labor in the marketplace (firm pays going rate) |
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Fixed v. variable pay
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Fixed-Pay set by base salary
Variable-pay based on bonuses and commissions |
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Performance v. membership
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Performance-pay based on what you do
Membership-get paid based on membership in a certain job |
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Nonmonetary rewards
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Nonmonetary-interesting work, prestige, advancement, family friendly policy
Reinforces commitment to org. |
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Problems with skill based pay system
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Higher labor costs
Loss of specialization Greater difficulty selecting applicants because skills are all similar |
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Job Based v. individual skill based
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Job Based-pay based on job and how much company values that job
Individual-each employee increases pay as they learn new skill |
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Centralized v. Decentralized Pay Decisions
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Centralized-pay decisions tightly controlled by central location (HQ)
Decentralized-pay determined by lower level people (managers) Large orgs better off with decentralized |
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Compensable Factors
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Work related criteria that an org considers most important in assessing the relative value of different jobs
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Fair Labor Standards Act (1938)
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Requires employers to record earnings and hours worked by employees
Minimum Wage and OT included Exempt employees are not covered by the FLSA while nonexempt workers are |
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Equal Pay Act (1963)
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Men and women must be paid equal for jobs of equal skill and responsibility
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Comparable Worth
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Same or comparable pay for different jobs that require similar skills and responsibilities
Theory not Law |
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Piece Rate Systems
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Employees paid based on how many units they produce
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Flexible Benefits Plan/Cafeteria Plan
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Allows employees to select benefits they need most from a menu of choices
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Benefits Mix
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Complete package of benefits that a company offers employees
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COBRA
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Gives employees right to continue health insurance coverage for 18 to 36 months after they have been terminated
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HIPAA
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Protects employee's ability to transfer between health insurance plans with out a gap in coverage due to a preexisting condition
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HMO
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Health care plan that provides comprehensive medical services to employees and families at flat annual fee
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ERISA
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Protects employee retirement benefits from mismanagement
Specifies who is covered and vesting (guarantee that accrued benefits will be given upon retirement) |
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Defined benefit v. defined contribution plan
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Defined benefit-Pension that takes into account employees past earnings
Defined contribution- employer promises to contribute specific amount of funds into account for each participant |
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401K and IRA
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401K-tax free and employers contribute/match
IRA-individual retirement account that allows people to contribute up to 5,000 per year tax deferred. Employers do not match |
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3 Components of Benefits strategy
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Benefits Mix
Benefits amount Flexibility of benefits |
