Exam 2 Flashcards

(70 cards)

1
Q

What is the difference between training and development?

A
  • Training is a short-term process while development is a long-term process.
  • Development can INCLUDE training. So to help and develop an employee you may give them certain training courses, or you develop them to be ready to work in a certain position.
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2
Q

Good incentives for training

A

You’ve performed a needs assessment, demonstrated returns, or the program contributes to organizational performance

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3
Q

Annual spending on training

A

Over $100 Billion spent annually on training

For formal training, companies spent $300 per employee per year, for 26.8 hours of training per year

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4
Q

Training

A

Systematic process to foster the acquisition of skills, rules, concepts, or attitudes that result in an improved match between employee characteristics and employment requirements.

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5
Q

Development

A

Long-term process of acquisition employee capabilities and motivation to make them valuable future members of the organization.

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6
Q

Linking training to organizational needs

A
  1. Assess needs for training
  2. Ensure readiness for training
  3. Plan training program
  4. Implement training program
  5. Evaluate results of training
    Then feedback informs sets 1-4
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7
Q

Needs Assessment

A

Organization
What does the organization need to achieve its mission?

Person
Who needs training?

Task
What subjects should the training cover?

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8
Q

Skills training

A
Training used to give employees the knowledge of how to do a job
Basic skills training
Customer service training
Retraining
Crisis training
Cross functional training
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9
Q

Process Training

A
Training used to teach employees how to function on a job more effectively
Cross functional training
Team training
Creativity training
Diversity training
Ethics/Values training
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10
Q

Ways to Deliver Training

A
Coaching
Internships
On-the-job training
Job rotation
Job instruction method
Computer-assisted instruction
Simulation
Mentoring
Off-the-job training
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11
Q

Planning the Training Program

A

Objectives
What is the employee expected to do?
Measureable performance standards
Identify resources needed to carry out the training

Trainers
In-house or contracted out?
Training officer or content expert?

Methods
How will the training (or development) be delivered?
Determine how to deliver the training based on the content

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12
Q

Evaluating Training

A

Reaction (ie how was this training?)

Learning (ie do a knowledge test of trained v control)

Behavior (ie do a performance appraisal of trained v control)

Results (ie ROI, Human capital inventory change, Organizational performance change)

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13
Q

Issues to Consider When Designing an Orientation Program

A

Communicate specific information to employees
Avoid degrading beginning assignments
Have a formalized plan to follow up initial orientation
Evaluate the orientation program

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14
Q

Purposes of Performance Appraisal

A

Provide feedback
Distinguish between individuals to allocate rewards
Evaluate and maintain the human resource systems of the organization
Create a paper trail to document the reason for certain actions

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15
Q

Why performance appraisals don’t work

A

People dislike giving feedback
Delivery of feedback is generally poor
People don’t like receiving critical feedback
Companies don’t take advantage of the data

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16
Q

Steps in Developing an Appraisal System

A
Determine characteristics necessary for successful job performance
Develop rating system
Train supervisors 
Develop appeals mechanism
Provide performance counseling
Document the appraisal
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17
Q

Requirement for Effective Performance Appraisal

A
Fit with strategy
Relevance to job
Sensitivity
Reliability
Acceptability
Specificity
Practicality
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18
Q

Types of Appraisals

A
Trait Oriented (Executive--BAD)
Behavior-oriented ratings (Where you can view staff's behavior)

Results-oriented rating method
ie Management by objectives, Productivity–good where you can’t observe ie sales associate

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19
Q

Threats to Appraisal Validity: Rater Errors

A
Varying standards
Recency and primacy effects (ie last and first things)
Halo and horn effects
Restriction of range-- only give 2,3,4
Leniency or strictness
Rater bias
Contrast errors
Similarity to rater
Sampling error (opportunity to observe)
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20
Q

Other appraisal threats

A

Lack of implications

Influence of liking

Organizational politics

Avoidance of confrontation

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21
Q

Total Compensation

A
Monetary Awards
Direct Compensation
Base Pay
Short-term incentives
Long-term incentives
Indirect Compensation
Benefits
Non-Monetary Awards
General benefits
Job enrichment
Job security
Perquisites
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22
Q

Motivation Theory

A

Needs
Maslow’s Needs Hierarchy
Herzberg’s Two-Factor Theory

Reinforcement

Expectations
Expectancy Theory (VIE Theory)
Agency Theory

Fairness
Equity Theory

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23
Q

Herzberg’s Two-Factor Theory

A

states that there are certain factors in the workplace that cause job satisfaction, while a separate set of factors cause dissatisfaction.

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24
Q

Expectancy Theory (VIE Theory)

A

proposes that an individual will decide to behave or act in a certain way because they are motivated to select a specific behavior over other behaviors due to what they expect the result of that selected behavior will be.[1] In essence, the motivation of the behavior selection is determined by the desirability of the outcome.

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25
Agency Theory
The agency theory says that the principal must choose a contracting scheme that helps align the interest of the agents with the principal's own interests--losses in productivity that may occur when the interests of owners and employees are imperfectly aligned
26
Equity theory
employees seek to maintain equity between the inputs that they bring to a job and the outcomes that they receive from it against the perceived inputs and outcomes of others
27
Pay Policy Decisions
Market Position (lead, match, lag) Degree of Hierarchy (Egalitarian Pay employees similarly across organizational levels. Hierarchical Larger pay differences across organizational levels) At-risk pay (ie variable vs. fixed)
28
Non Pay-for-Performance Tools
Cost of living adjustments Equity Adjustments Across the board raises All-employee benefits, services, etc. Organization-wide functions
29
Individual-based incentives
``` Commissions Piece-rate Merit pay Individual based performance bonus Spot bonus Tips ```
30
Group-based incentives
Pooled tips Gainsharing Profit sharing Stock awards
31
The Effects of Pay-for-Performance
``` Incentive effects (The effect of the work habits of an individual when they are offered some type of increase in pay or other type of benefit.) Sorting effects (people who are successful want incentive based pay) ```
32
Spread
(Maximum– Minimum)/Minimum
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Midpoint
“market average” * policy
34
Minimum
midpoint/(1+ (0.5 * spread))
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Maximum
minimum + (spread * minimum)
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Recommended spreads
Low complexity: 25% Moderate low complexity: 30% Moderate complexity: 50%
37
Green circle
How do you want to handle those below the minimum? Policy 1: Raise all employees to the range minimum. Policy 2: Raise all employees at acceptable performance or higher. Policy 3: Enhance pay increases until minimum is reached. Policy 4: Raise all employees proportionally into new structure. or do nothing
38
Red circle
Policy 1: Freeze pay until individuals are in line with pay policy. Policy 2: Freeze pay; use merit pay guide as a “bonus” plan. Policy 3: Reassign red-circled employees into positions that are in line with pay rate; otherwise, reduce pay. Policy 4: Grandfather red-circled employees.
39
Compa-ratio
avg of what you are paying employees in a job/your target midpoint (1 is ideal)
40
COLA
Cost of living adjustment
41
Rising cost of benefits
companies started to offer benefits to compete, gov provides incentives for benefits, companies can purchase benefit cheaper than individuals, people expect them
42
Benefit options
``` Legally Required Benefits Workers’ Compensation Social Security Unemployment Insurance Family and Medical Leave COBRA Most Common Benefits Medical Insurance Retirement and Savings Plans ```
43
Usual, customary
The amount paid for a medical service in a geographic area based on what providers in the area usually charge for the same or similar medical service.
44
Maximum dollar limit
the maximum amount of money that an insurance company (or self-insured company) will pay for claims within a specific time period.
45
Out of pocket maximum
The most you pay during a policy period (usually one year) before your health insurance or plan starts to pay 100% for covered essential health benefits.
46
Coinsurance
Your share of the costs of a covered health care service, calculated as a percent (for example, 20%) of the allowed amount for the service. You pay coinsurance plus any deductibles you owe.
47
Consumer-driven health care (CDHC),
defined narrowly, refers to third tier health insurance plans that allow members to use health savings accounts (HSAs), Health Reimbursement Accounts (HRAs), or similar medical payment products to pay routine health care expenses directly, while a high-deductible health plan (HDHP) protects them from catastrophic medical expenses.
48
Medical Flexible Spending Account (Medical FSA)
Individual contributions | Use it or lose it cover medical expenses or dependent care expenses—pre tax—cover deductible/co payments
49
Health Saving Account (HAS)
Individual contributions--specifically for high deductible plans
50
Health Reimbursement Account (HRA)
Employer contributions
51
Defined benefit
Specified the benefits, but not how much you’re putting in—pension plan—most benefit plans at work
52
Defined contribution
what you put in is specified but unsure what you’re getting out 401k Primary reason to switch to defined contribution/flexible benefits (you control your health care costs and meeting diverse needs)--employees pick what benefits they want given cash amount
53
engineering controls
making the workplace safer
54
management controls
change worker behaviors to be safer—incentive plan for safety ect
55
Employee Assistance Programs
EAPs offer professional counseling and services to all “troubled” employees
56
Wellness Programs
Wellness programs focus on prevention EAPs focus on rehabilitation
57
Concern healthcare
US companies spend, on average, 26% of their earnings on health-care costs Health care costs grow, on average, over 10% per year The U.S. ranks 50th in terms of the overall health of its inhabitants 33.8% of Americans are obese 21% of Americans smoke Centers for Disease Control and Prevention found that 75 percent of all health care spending is related to those chronic conditions.
58
Pros and Cons of Wellness Programs
``` Benefits Healthier employees Reduced health care costs Lower absenteeism Higher satisfaction Concerns Costs (Takes 2-3 years for a new wellness program to affect the health care cost curve) Employee privacy Appropriateness of employer paternalism ```
59
closed shop
a form of union security agreement under which the employer agrees to hire union members only, and employees must remain members of the union at all times in order to remain employed Made illegal by Taft Hartley
60
union shop
a form of a union security clause under which the employer agrees to hire either labor union members or nonmembers but all non-union employees must become union members within a specified period of time or lose their jobs
61
agency shop
a form of union security agreement where the employer may hire union or non-union workers, and employees need not join the union in order to remain employed.[1] However, the non-union worker must pay a fee to cover collective bargaining costs
62
right to work law
a statute in the United States that prohibits union security agreements, or agreements between labor unions and employers, that govern the extent to which an established union can require employees' membership, payment of union dues, or fees as a condition of employment, either before or after hiring
63
Regression to the mean
if someone is high one time, chances are they will be lower the next time (or low one time, they are high next time)—statistical
64
Restriction of range:
don’t have high or low performers-ie fire all the bad people and then your statistical estimates are off—statistical—central tendency causes regression to mean
65
Wagner Act (1935)
Created the National Labor Relations Board (NLRB) To administer certification elections Prevent and remedy unfair labor practices
66
Taft-Hartley Act (1947)
Intent Included remedies to unfair labor practices Closed shops made illegal Allowed right-to-work laws Unions may be decertified and elections are monitored by the NLRB Created the Federal Mediation and Conciliation Service to help mediate labor disputes
67
Landrum-Griffin Act
Designed to protect union members and their participation in union affairs
68
Employers cannot
Spy, Promise, Interrogate, or Threaten (SPIT) during union organizing
69
Business union
Payment, benefits
70
Strategic union
Union involved in strategy