exam 2 Flashcards
Cash: salary, merit increases, bonuses, stock options
Benefits: health insurance, paid vacation, unemployment compensation
Total compensation includes 2 main categories
focuses on what employees in other organizations are paid for doing the same general job
External equity:
focuses on what employees within the same organization but different job, are paid
Internal equity
Two competitive market challenges exist for a company when determining what to pay its employees
How do product and labor market competition relate to employee pay
labor costs are a larger share of total costs and demand for the product is affected by changes in price
Product market competition
reflects the number of workers available relative to the number of jobs available
Labor market competition
Employees paid more than they would receive elsewhere will put forth effort to retain good jobs
What is efficiency wage theory
Comparing an organization’s practices against those of the competition (market pay survey)
What is benchmarking
Permit companies to recognize differences in employee performance seniority and training in setting individual pay
May be single rate for all employees within in same job
What is the purpose of rate ranges
composed of composable factors and a weighting scheme.
are the characteristics of jobs that an organization values and chooses to pay for
May include things like complexity, working conditions, required education, required experience, and responsibility
In a job evaluation, what are compensable factors referring to
frequently used index of the correspondence between actual and intended pay
Grade compa-ratio= actual pay for grade/ pay midpoint for grade
What is compa-ratio and what is it used for
a response followed by a reward is more likely to recur in the future
Assumes high employee performance followed by monetary rewards will influence future high performance
List and describe the three theories related to compensation effects on employees
Reinforcement theory:
emphasizes expected (not experienced) rewards
Perceived link between behaviors and pay
List and describe the three theories related to compensation effects on employees
Expectancy theory
focuses on interests and goals of the organization’s stakeholders and the ways compensation can be used to align these interests and goals
List and describe the three theories related to compensation effects on employees
Agency theory
a person (generally and owner) who seeks to direct another person’s behavior
Principal
a person (generally manager) who is expected to act on behalf of a principal
Agent
link performance appraisal ratings to annual pay increases
What is a merit program and what is it used for
combines an employee’s performance rating with employees position in pay range to determine size and frequency of pay increases
merit increase
Used to identify individual differences in performance
information on individual performance is collected from the immediate supervisor
There is a policy of linking pay increases to performance appraisal results
The feedback tends to occur infrequently
Flow of feedback tends to be unidirectional (supervisors to subordinate)
Understand the characteristics of merit pay
Abstract ideals that guide one’s thinking and behavior across all situations
Describe personal values
evaluations, feelings, or opinions about people, places, and objects
Personal attitudes
psychological discomfort experienced when simultaneously holding two or more conflicting cognitions (ideas, beliefs, values, or emotions)
Cognitive dissonance:
changing attitudes, behaviors, or both
Belittling the importance of inconsistent behavior
Find consonant elements that outweigh dissonant ones
Cognitive dissonance is reduced by:
The extent to which employees give it their all to their work roles includes the feeling of urgency, being focused, intensity, and enthusiasm
Describe employee engagement
An affective or emotional response towards various facets of one’s job
What is job satisfaction
Motivation, job involvement
Withdrawal cognitions, perceived stress
How do attitudes impact job satisfaction
job satisfaction is positively associated with the organizational-level outcomes
accounting/financial performance
Customer service/ satisfaction
organizational citizenship behavior
Managers have little or no impact on fixed IDs (intelligence and personality) but they have more influence on relatively flexible IDs that influence individual-level work outcomes (performance and job satisfaction)
To what extent can managers influence individual differences
tendency to experience positive emotions and moods and feel good about oneself and the rest of the world, social, talkative, energetic.
good at social interaction, and excitement-seeking, is a stronger predictor of job performance than agreeableness
List and describe the 5 types of personality dimensions
Extraversion
tendency to get along well with others
Good in groups
High agreeableness- not top managers
List and describe the 5 types of personality dimensions
Agreeableness
tendency to be careful, scrupulous, and persevering
Has the strongest effect on job performance and job satisfaction, achievement-oriented, desire status, may be overly detail-oriented
List and describe the 5 types of personality dimensions
Conscientiousness
tendency to experience negative emotions and moods, feel distressed, and be critical of oneself and others
More likely to experience burnout, not best performers, high NA less likely to engage in citizenship behaviors
List and describe the 5 types of personality dimensions
Neuroticism
tendency to be original, have broad interests, be open to a wide range of stimuli, be daring, and take risks
Nonconforming, Creative, adapt well to change, more likely to benefit from training
List and describe the 5 types of personality dimensions
Openness to experience:
A broad personality trait comprised of four narrow and individual traits
Generalized self-efficacy, self esteem, locus of control, and emotional stability
What do core self-evaluations consist of
Relatively stable personality characteristic that describes how much personal responsibility someone takes for their behaviors and its consequences
locus of control
You make things happen, i make things happen, look what i can do, i can determine my future
Internal locus of control
Things happen to you, why does everything happen to me, why bother, there is nothing i can do about my future
External locus of control
A person’s belief about his or her chances of successfully accomplishing a specific task, can be developed
What is self-efficiency
General belief about self-worth
^ Personal achievement and praise raise self-esteem
V prolonged unemployment and destructive feedback lower self-esteem
What is self-esteem
Individuals with high levels of emotional stability tend to be relaxed, secure, unworried, less likely to experience negative emotions under pressure have higher job performance more OCB, fewer CWBs
What is emotional stability
complex, relatively brief, affective responses associated with a particular target
emotions
the force acting on or within a person that causes the person to behave in a specific, goal directed manner
Motivation
:results from external rewards
Recognition, money, promotion
Extrinsic motivation
results from internal feelings
Positive emotions, satisfaction, self-praise
Intrinsic motivation:
a pessimistic view of employees: assumes they dislike work, must be monitored and can be motivated only with rewards and punishment, he felt this was typical perspective held by managers
What does Mcgregor’s theory x state
a modern and positive set of assumptions about people at work, they are engaged, committed, responsible, and creative
What does Mcgregor’s theory y state
Self- actualization, esteem, affiliation, security, psychological (needs high to low)
Must satisfy lower levels before higher levels become important
Under Maslow’s hierarchy of needs, what must occur before moving on to the next level
maintain social relationships, be liked, and join group
In mcclelland’s acquired needs theory, which three needs are key drivers of employee behavior
Affiliation
desire to excel, overcome obstacles, rival and surpass others
In mcclelland’s acquired needs theory, which three needs are key drivers of employee behavior
Achievement
desire to influence, coach, teach, or encourage others to achieve
In mcclelland’s acquired needs theory, which three needs are key drivers of employee behavior
Power
job satisfaction and dissatisfaction arise from two different sets of factors
Satisfaction comes from motivating factors while dissatisfaction comes from hygiene factors
Motivator factors: work itself, recognition, advancement, responsibility
Intrinsic factors
Hygiene factors: salary, working conditions, interpersonal relations, company policy
Extrinsic factors
What are the attributes of herzberg’s motivator-hygiene theory
perceived fairness of how resources and rewards are distributed/allocated
Distributive justice
perceived fairness of the process and procedures used to make allocation decisions
Procedural justice:
quality of the interpersonal treatment people receive when procedures are implemented
Interactional justice:
has a strong negative relationship with job satisfaction
Managers need to find ways to reduce _____
Hire individuals who are less prone to engage in this behavior
Motivate desired behaviors and not ______
Respond quickly and appropriately to employees engaging in ______
counterproductive work behavior
merit pay paid in the form of a bonus, instead of a salary increase
Merit bonus:
reinforcement theory, expectancy theory, agency theory
what are the three theories related to compensation effects on employees
extraversion, agreeableness, conscientiousness, neuroticism, openness to experience
what are the 5 types of personality dimensions
affiliation, achievement, power
in McClelland’s acquired needs what are the three needs drive employee behavior
distributive justice, procedural justice, interactional justice
what are the three types of justice
Total compensation includes 2 main categories
Cash: salary, merit increases, bonuses, stock options
Benefits: health insurance, paid vacation, unemployment compensation
