Chapter 30 Flashcards
1
Q
What are return of employee benefits
A
- Effective recruitment
- Improve morale and loyalty
- Lower turnover and absenteeism
- Good public relations
2
Q
What is pay-for-performance
A
A compensation philosophy of higher pay for higher contributions.
3
Q
How performance calculated on pay-for-performance
A
corporate performance + personal performance
4
Q
What are challenges of pay-for-performance system
A
- Link pay and performance appropriately
- Use pay-for-performance as part of broad HRM system
- Build employee trust
- Promote the belief that performance makes a difference
- Use multilevel layers of rewards
- Increase employee involvement
- Use motivation and non-financial incentives
5
Q
What are pay-for-performance plans
A
- Individual-based plan (Merit pay) (Bonus program or lump-sum payment) (Award) - Team-based plans - Plant-wide plans (gain sharing e.g. some department do excellent work so reward that department) - Corporate-wide plans (profit sharing)
6
Q
What are six criteria of value of performance
A
- Quality
- Quantity
- Timeliness
- Cost effectiveness (minimum input, max output)
- Need for supervision
- Interpersonal impact
7
Q
What are reasons for pay-for-performance failures
A
- Poor perceived connection between performance and pay
- Level of performance-based pay is too low
- Lack of objective accountable results for most jobs, so performance appraisal ratings are used in place of objective outcomes
- Faulty performance appraisal systems
- Union resistance
- Poor connection between pay-for-performance outcomes and corporate performance measures
8
Q
How to improve reward effectiveness
A
- Link rewards to performance
- Ensure rewards are relevant
- Use team rewards for interdependent jobs
- Ensure rewards are valued
- Beware of unintended consequences
9
Q
What are the reasons people leave organization
A
- Limited recognition and praise
- compensation
- limited authority
- Personality conflicts
- Other
10
Q
What is highest most reason for people leave organization
A
- Limited recognition and praise (34%)
11
Q
What is ROI
A
Return on investment
