Exam 2 Flashcards
What is the difference between training and development?
- 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.
Good incentives for training
You’ve performed a needs assessment, demonstrated returns, or the program contributes to organizational performance
Annual spending on training
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
Training
Systematic process to foster the acquisition of skills, rules, concepts, or attitudes that result in an improved match between employee characteristics and employment requirements.
Development
Long-term process of acquisition employee capabilities and motivation to make them valuable future members of the organization.
Linking training to organizational needs
- Assess needs for training
- Ensure readiness for training
- Plan training program
- Implement training program
- Evaluate results of training
Then feedback informs sets 1-4
Needs Assessment
Organization
What does the organization need to achieve its mission?
Person
Who needs training?
Task
What subjects should the training cover?
Skills training
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
Process Training
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
Ways to Deliver Training
Coaching Internships On-the-job training Job rotation Job instruction method Computer-assisted instruction Simulation Mentoring Off-the-job training
Planning the Training Program
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
Evaluating Training
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)
Issues to Consider When Designing an Orientation Program
Communicate specific information to employees
Avoid degrading beginning assignments
Have a formalized plan to follow up initial orientation
Evaluate the orientation program
Purposes of Performance Appraisal
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
Why performance appraisals don’t work
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
Steps in Developing an Appraisal System
Determine characteristics necessary for successful job performance Develop rating system Train supervisors Develop appeals mechanism Provide performance counseling Document the appraisal
Requirement for Effective Performance Appraisal
Fit with strategy Relevance to job Sensitivity Reliability Acceptability Specificity Practicality
Types of Appraisals
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
Threats to Appraisal Validity: Rater Errors
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)
Other appraisal threats
Lack of implications
Influence of liking
Organizational politics
Avoidance of confrontation
Total Compensation
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
Motivation Theory
Needs
Maslow’s Needs Hierarchy
Herzberg’s Two-Factor Theory
Reinforcement
Expectations
Expectancy Theory (VIE Theory)
Agency Theory
Fairness
Equity Theory
Herzberg’s Two-Factor Theory
states that there are certain factors in the workplace that cause job satisfaction, while a separate set of factors cause dissatisfaction.
Expectancy Theory (VIE Theory)
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.
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
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
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)
Non Pay-for-Performance Tools
Cost of living adjustments
Equity Adjustments
Across the board raises
All-employee benefits, services, etc.
Organization-wide functions
Individual-based incentives
Commissions Piece-rate Merit pay Individual based performance bonus Spot bonus Tips
Group-based incentives
Pooled tips
Gainsharing
Profit sharing
Stock awards
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)
Spread
(Maximum– Minimum)/Minimum
Midpoint
“market average” * policy
Minimum
midpoint/(1+ (0.5 * spread))
Maximum
minimum + (spread * minimum)
Recommended spreads
Low complexity: 25%
Moderate low complexity: 30%
Moderate complexity: 50%
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
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.
Compa-ratio
avg of what you are paying employees in a job/your target midpoint (1 is ideal)
COLA
Cost of living adjustment
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
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
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.
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.
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.
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.
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.
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
Health Saving Account (HAS)
Individual contributions–specifically for high deductible plans
Health Reimbursement Account (HRA)
Employer contributions
Defined benefit
Specified the benefits, but not how much you’re putting in—pension plan—most benefit plans at work
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
engineering controls
making the workplace safer
management controls
change worker behaviors to be safer—incentive plan for safety ect
Employee Assistance Programs
EAPs offer professional counseling and services to all “troubled” employees
Wellness Programs
Wellness programs focus on prevention
EAPs focus on rehabilitation
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.
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
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
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
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
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
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
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
Wagner Act (1935)
Created the National Labor Relations Board (NLRB)
To administer certification elections
Prevent and remedy unfair labor practices
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
Landrum-Griffin Act
Designed to protect union members and their participation in union affairs
Employers cannot
Spy, Promise, Interrogate, or Threaten (SPIT) during union organizing
Business union
Payment, benefits
Strategic union
Union involved in strategy
