Chapter 7

Question 1

Goal

Answer 1

Future outcomes or result that individuals and groups desire and strive to achieve. “a good goal is like a strenuous exercise – it makes you stretch quotation”

Question 2

Goal setting

Answer 2

Specifying desired outcomes toward which individuals, teams, departments and organizations will strive and intended to increase organizational efficiency and effectiveness.

Question 3

Importance of goal setting

Answer 3

Goals focus attention

goals regulate effort

goals increase persistence

goals faster strategies and action programs

Question 4

Criteria for effective goal setting(goal characteristics) WILL BE ON EXAM

Answer 4

• Specific and measurable
• defined time period
• Cover key result areas
• challenging but realistic
• Linked to rewards

Example – ABC company will achieve 10% profit margin in a sale of our painting equipment by the end of 2013 and will reward our employees with 2% profit-sharing bonus.

Question 5

Informal reward programs

Answer 5

Those that result from interactions between people. Example – personal notes.

Pros: cost-effective, flexible, timely, easy.

Cons: They are trivial, not performance-based.

Question 6

Profit-sharing programs

Answer 6

Provide employees with a portion of the companies earnings. Example – typical 4 to 6% of salary.

Pros: Reward organizational performance

Cons: individual/teams not likely to actually impact work performance

Question 7

Skill-based pay programs

Answer 7

Based on the number and level of job related skills and employee has learned.
Example – higher pay.

Pros: higher pay for more skills learned

Cons: Labor cost increase, top out at highest skill

Question 8

Flexible benefit programs

Answer 8

Employees choose the benefits they won. Example – free daycare, more vacation.

Pros: tailored to fit individual needs.

Cons: no linked to performance, difficult with teams.