Ch 10 Pay for Performance: Perf. Appraisal and Plan Design*Done Flashcards
What are the three techniques to identify the value a firm places on it’s jobs?
- Job analysis
- Job evaluation
- Job pricing
What is pay for performance plan?
a pay plan that links individual pay to some measure of performance on the job
What are the 3 factors that employee performance depends on?
Ability
Motivation to perform
E Supportive environment
What behaviours do employers care about?
join
stay
perform well
develop skills
What motivates employees?
What’s important to a person
Offering it in exchange for something
desired behaviour
What is the MARS model for individual behaviour?
Motivation
Ability
Role perceptions
Situation factors
What is Content Theories?
What is important to a person
- Maslow’s need hierarchy
- Herzberg’s 2-factor theory
What is process theories?
The nature of the exchange
- Expectancy theory
- Equity theory
- agency theory
What are reinforcement theories
Desired behaviours
- goal setting
- reinforcement
What should performance measurement and compensation strategy be based on?
Variability/ease of measurement of:
individual performance
organizational performance
What is total rewards system?
All financial and non financial rewards provided by organizations to their employees
Common errors in appraising performance
Observations (Attention)
storage and recall
actual evaluation
What are the components of a total rewards system?
Compensation benefits social interaction security status/recognition work variety workload work importance authority/control/autonomy advancement feedback work conditions development opportunity
What are the wage components?
base pay across the board increase cost of living increase merit pay lump-sum bonus individual incentive group incentive gain sharing plans profit sharing plans risk sharing plans
What are gain sharing plans?
The employee get’s a reward for increase in organizational performance - they get a portion of the extra amount earned because of money saved by the new work activity.
Do people leave or stay in a firm because of pay?
yes
Should pay increase be tied to performance?
yes (managers and employees alike agree)
What are the performance appraisal formats?
Comparative - ranking, alternation ranking, paired comparison
Behvioural - BARS
Results/outcomes - Mgmnt by objective
What are the strategies to better understand and measure performance?
- Dimensions should be relevant to strategy
- Involve the employees
- raters must be trained
- raters must be motivated to rate accurately
- raters maintain a diary of ee performance
- diagnose in advance if problems are due to motivation, skill, deficiency, or external enviro.
What are the three variables in merit pay grids?
- level of performance
- Distribution of employees within pay ranges
- Merit budget increase percentage.
What are the three things that determine the effectiveness of a rewards system?
Efficiency
Fairness
Legislative Compliance
What three things contribute to the efficiency of the effectiveness of a rewards system?
Strategy
Structure
Standards
What are the two types of fairness that employers must consider in making the rewards system effective?
Distributive justice
Procedural justice
