5018 Unit 6

Question 1

Sub-discipline of ABA which is the application of the science of behavior guided by a single theory of human behavior and historically emphasized identification and modification of the environmental variables that affect directly observable or variable employee performance

Answer 1

Organizational Behavior Management

Question 2

Subdivisions of OBM

Answer 2

Performance Management
Behavior Based Safety
Behavioral Systems Analysis
Pay for Performance Based Pay

Question 3

Involves analyzing individual or small groups of employees and modifying the environment to improve performance; most straightforward application of ABA setting

Answer 3

Performance Management

Question 4

Typical interventions in performance management

Answer 4

Antecedent
Training
Consequences
Process

Question 5

Equitably aligns the contingencies in an origination so that the better the employees and company do, the more money they make

Answer 5

Pay for Performance

Question 6

A system with input, an entity that changes its behavior in response to conditions outside its boundaries

Answer 6

Open System

Question 7

Orienting employees to financial data before sharing and linking employee work to financial results

Answer 7

Open Book Management

Question 8

7 Sin of Wages

Answer 8

Fix Cost Pay
Pay for Time
Corporate Socialism
Performance-Based Promotions
Management by Perception
Management by Exception
Entitlement Thinking

Question 9

Fix Cost Pay

Answer 9

Every year employees are entitled to a raise

Question 10

Pay for Time

Answer 10

When you pay for time, jobs will fill the time

Question 11

Corporate Socialism

Answer 11

Conventional pay rewards underperforms and punishes top performers

Question 12

Performance-Based Promotions

Answer 12

If management can not reward top performers by increasing pay, the only way to increase pay is through promotions

Question 13

Management by Perception

Answer 13

Use of subjective measures to evaluate employees

Question 14

Management by Exception

Answer 14

Employees are noticed typically because there are performance problems; punishes bad behavior and ignores good behavior

Question 15

Entitlement Thinking

Answer 15

The company owes me money

Question 16

Familiar, low effort, employees tend to prefer

Answer 16

Merit Increase

Question 17

Management discretion, variable expense, becomes an expectation

Answer 17

Annual Bonus

Question 18

Management control, variable expense, tax benefit

Answer 18

Stock Options

Question 19

Based upon year-end profit, easy to administer

Answer 19

Profit Sharing

Question 20

Pays from expense reduction, may promote cooperation, impacts performance relative to group size

Answer 20

Gain Sharing

Question 21

Generates high production, equitable, no limits to earning

Answer 21

Piece Rate

Question 22

Generates high production, equitable, no limits on earning potential; encourage discounting, selective selling, poor service, credit risks, discourages cooperation

Answer 22

Sales Commissions

Question 23

Setting goals and paying money when goals are met

Answer 23

Goal Sharing

Question 24

A fixed percentage of each employee’s base pay is assigned an incentive opportunity

Answer 24

Goal Sharing Budget

Question 25

Expenses that employees control

Answer 25

Expense Control

Question 26

A ratio of employee output to labor hours

Answer 26

Productivity

Question 27

Payables, collections and inventory

Answer 27

Cash Flow

Question 28

PIPP

Answer 28

Profit Indexed Performance Pay

Question 29

PIPP Components

Answer 29

Basis %
Monthly Compensation
Performance Index Score
Company Multiplier

Question 30

PIPP Formula

Incentive Pay

Answer 30

Salary x Basis % x Scorecard PI x Company Multiplier

Question 31

PIPP Formula

Incentive Pay

Answer 31

Salary x Basis % x Scorecard PI x Company Multiplier

Question 32

Exposure Formula

Answer 32

Wages x Basis %

Example: $300,000 X 4%= $12,000

Question 33

Multiplier Scale

Answer 33

Exposure/ Profit % shared with employees
Example: $12,000/ 0.50 = $24,000
$24,000 + Threshold= 1

Question 34

Creation of objective measurement and PM practices are instituted here

Answer 34

Level I Results Focus

Question 35

Employees give up part of base pay to receive greater opportunity to earn based upon performance

Answer 35

Level II Stakeholder Pay

Question 36

Implement hiring freeze

Answer 36

Level III Job Enrichment

Question 37

All managers practice PM and manager hiring freeze is implemented

Answer 37

Level IV Self-Managing Employees

Question 38

Base Pay Options

Answer 38

Raise reinstated below market value
Permanent freeze
Reduction in base pay

Question 39

Use only when scorecard is reliable; each 1% given up will be offset by 3% above salary incentive opportunity

Answer 39

Voluntary Pay Reduction

Question 40

Job enrichment opportunities

Answer 40

Cross utilization
Job enlargement
Job enrichment
Flexible scheduling
Work prospecting

Question 41

Train employees to complete other jobs within the company

Answer 41

Cross Utilization

Question 42

Increase job functions of a specific position

Answer 42

Job Enlargement

Question 43

Increase authority of a specific position

Answer 43

Job Enrichment

Question 44

As productivity increases, allow employees to work fewer hours

Answer 44

Flexible Scheduling