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Human Resource Management > Exam 2 Study Guide > Flashcards

Exam 2 Study Guide Flashcards

1
Q

the selection process

A

5 steps:

1) screening applications and resumes
2) testing and reviewing work samples
3) interviewing candidates
4) checking references and background
5) selection

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2
Q

what is the goal of selection?

A

to maximize the number of “hits” and “minimize” the number of mistakes in hiring

“hits” are accurately predicting that a person would not have succeeded on the job and accurately predicting a person succeeding on the job

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3
Q

How do you know when the tools you’re using to select people are effective?

A

We look at several criteria that make selection tests effective including:

Person-organization fit, person-job fit, other kinds of fit.
Reliability
Validity

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4
Q

test-retest reliability

A

consistency of scores on a test over time

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5
Q

inter-rater reliability

A

consistency of scores across judges

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6
Q

validity of a test

A

the degree to which the test measures what it is supposed to measure

in the selection context, the degree to which a selection test predicts future job performance

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7
Q

content validity

A

extent to which the content on a test is representative of a job’s content

similarity between the selection test and the job description

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8
Q

criterion validity

A

correlation between selection test scores and job performance scores

2 forms: predictive and concurrent validity

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9
Q

concurrent criterion validity

A

extent to which scores on a selection test are related to job performance

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10
Q

predictive criterion validity

A

extent to which scores on a selection test correlates with future job performance

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11
Q

letters of recommendation, references, and applications

A

generally poor validity
better validity if it focuses on KSA’s
can be risky (could sue and file a defamation of character)

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12
Q

application forms

A 
education
experience 
national origin (protected class)
references 
disabilities (protected class)
EEO statements

good applications only focus on job-related information
they have moderate validity
companies should avoid asking for religion, age, race, and marital status (protected classes)

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13
Q

physical ability tests

A

generally valid
exclude women and those with disabilities
need to be certain that physical requirements are essential to job performance

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14
Q

cognitive ability tests

A

vernal and math skills, very controversial for adverse impact reasons

valid especially for complex jobs

adverse impact (mainly along racial lines)

some companies give cognitive ability tests less weight than other predictors

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15
Q

personality tests

A

can be valid depending on the job and job analysis results

big 5 personality inventory measures agreeableness, neuroticism/emotional stability, conscientiousness, openness, and extraversion

conscientiousness and extraversion are the biggest generally

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16
Q

integrity tests

A

identify applicants who might steal

theft tolerance, attitudes, towards dishonest behavior

moderate validity

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17
Q

polygraphs

A

employee polygraph protection act (1988) is protecting most employees at private companies

very poor validity and reliability

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18
Q

interviews

A

unstructured/non-directive have low reliability and validity

structured are better validity and reliability

based on job analysis, consistent questions

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19
Q

what does an interview uniquely capture?

A

critical thinking and rationale

interpersonal skills

detailed behavioral examples

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20
Q

can someone fail a personality test?

A

high neuroticism, high narcissism, and low agreeableness

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21
Q

situational questions in interviews

A

uses critical incidents to assess decision making in dilemma-type hypothetical situations

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22
Q

what are the challenges of interviewing?

A

the halo effect (interviewer has a positive bias towards the interviewee)
biasses focusing on negative information based on race, sex, age, and appearance
1st impression error
faulty memory
MANY MORE

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23
Q

what can help combat problems with interviewing?

A

interviewer training can help all of these, but they require a lot of effort and are very expensive

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24
Q

assessment centers

A

highly representative sample of the job content

in basket (give them a basket full of tasks and watch them get through it and delegate)

leaderless group discussion

dimensions to measure important parts of the job (critical thinking and teamwork)

nowadays, they give you an inbox of tasks and watch you tackle it!

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25
Q

what do assessment centers show you?

A

REAL behaviors. strongly related to future job performance and has low AI

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26
Q

bad interview questions

A 
what is the origin of your name?
what is your ancestry?
how old are you?
what is your date of birth?
are you a man or a woman?
what is your race?
do you have any physical defects?
what color are your eyes/hair?
how tall are you?
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27
Q

multiple hurdle selection

A

many companies use a multiple hurdle approach

application - test - screening interview - 2nd interview - reference check - drug test and background check - HIRE

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28
Q

legal issues in selection

A

any preemployment test can be challenged legally if connection to job is not obvious

negligent hiring: company gets in trouble for hiring someone with a troubled past

  • due diligence
  • company is responsible for incidents occurring on work time
  • thorough accurate background check is needed to avoid this

discrimination law - ADA, age discrimination act, and title VII and minimum qualifications

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29
Q

training

A

a company’s planned efforts to help employees gain job-related KSA’s so that employees can apply these KSA’s back to the job

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30
Q

what are the benefits of training?

A

more efficiency and productivity on the job

keep up with the rapidly chaining environment

employee motivation, interest, and retention

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31
Q

US business training $$ increase over time

A

this is true

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32
Q

costs involved in training

A 
trainer's salary
trainee's salary or wage
materials and supplies training
development costs
consultants or contractors services fees
travel and living expenses for the trainer and trainees
transportation
equipment costs
support costs
lost production (opportunity costs)
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33
Q

training vs development

A

training teaching specific KSA’s addressing deficiencies and is essential to job functioning (saves $$$ in the short run)

development is helping employees prepare for the future and can look similar to training, but perspective is long-term

can save $$$ long term with future job filling

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34
Q

can both training and development improve a company’s bottom line?

A

YES. development = using formal education, job experience, relationships, and assessment to help employees become more competitive for future jobs

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35
Q

how does training tie into other HR functions in selection?

A

effective selection may reduce training needs, and training may permit hiring less qualified applicants

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36
Q

how does training tie into other HR functions in performance appraisal?

A

training aids in the achievement of performance and is a basis for assessing training needs and results

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37
Q

how does training tie into other HR functions in compensation management?

A

training and development may lead to higher pay and is a basis for determining employee’s rate of pay

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38
Q

training phase one: needs assessment (task analysis, person analysis, and organizational analysis)

A

identify problems/needs that the training program will satisfy

organizational analysis will identify orgs needs and goals/strategy, resources available for training, and level of support for training

task analysis: analyzes tasks and duties involved in the job and working conditions under which the task is performed

person analysis: who needs training? consider KSA’s needed that impact performance, and figure out the source of performance problems

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39
Q

why do a needs assessment?

A

to understand the source of the problems that prompted the needs assessment in the first place and decide whether training is needed or not

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40
Q

training phase two: design training program

A

establish training objectives

say what the employee is expected to do and the quality of performance that is acceptable (what participants should be able to do at the end of the training)

measurable performance standards

resources that will be provided to help employees achieve the goal

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41
Q

are employees willing and ready to be trained?

A

ability to learn, motivation, doesn’t hate trying, and use positive reinforcement and interesting lessons to peak peoples’ interest

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42
Q

in house or contractor for design of training program?

A

write up a request for proposal from contractors to bid on

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43
Q

focus on learning and transfer

A

goal setting (what will you get out of this training)

meaningfulness of presentation

behavioral modeling

recognizing individual learning differences (visual vs audio)

44
Q

focus on method and process

A

practice and repetition
whole vs. part learning
mass vs. distributed learning
feedback and reinforcement - immediate feedback and behavioral modification via reinforcement

45
Q

stage three: implement program

A

training formats: presentation (lecture style), hands on (on the job training, simulations, and assessment centers), and group based (group discussions, experiential programs, team training)

OTJ training
job rotation
apprenticeships 
internships
coaching, assignments, special projects, action learning, and so on.
46
Q

methods of training: classroom training

A

lecture, role play, group discussions and group activities

47
Q

methods of training: computer-based learning

A

e-learining = online training/learning via computer based activities; flexible and easily updated

48
Q

methods of training: simulations

A

artificially created - represents a real-life situation

virtual reality - assessment center simulations

49
Q

MORE TRAINING METHODS

A

OJT, seminars, conferences, games, case studies, role play exercises, behavior modeling, and team training

50
Q

stage four: evaluation of the program

A

did the program work?

trainee’s reactions, behavior, and learning

monetary outcomes - have customer services comments improved since the training was delivered?

validity - did the program train what it was designed to train? content and criterion validity vs. control group

pre-test vs post-test

transfer of training

benchmarking (seeing what competitors are doing)

51
Q

transfer of training

A

good transfer means that people have learned the content, are able and willing to apply it back to the job

bad ones mean they haven’t understood the KSA’s, and aren’t applying what they learned for various reasons

52
Q

benchmarking

A

measuring one’s own shrives and practices against the recognize leaders in the field to identify areas for improvement

training activity: how much training is occurring?
training results: do training and developments achieve their goals?
training efficiency: are resources utilized in the pursuit of the mission?

53
Q

evaluating a training program

A

it takes time to see results

54
Q

performance management

A

the process through which supervisors and managers check on and guide employees towards meeting the company’s goals

  • define performance and management outcomes
  • setting performance goals
  • observing employee activities and performance
  • giving constructive feedback
  • taking action to improve performance
55
Q

what is performance?

A

behaviors and outcomes that are congruent with a company’s goal

in-role (in job description) and extra-role (help others with their projects, volunteer for the company)

some employees are incredible at one or the other, and performance evals need to weigh both accordingly

directly tied to the bottom line is performance (this provides jobs for job management consultants)

56
Q

performance appraisal

A

usually a meeting

helping employees understand their roles, objectives, expectations, and performance success

annual meeting between boss and employee

involves determining what areas of work the manager should evaluate, judging how well or poorly the employee is doing, and giving feedback, goals-setting, and coaching

57
Q

performance management

A

the process of creating a work environment in which people can perform to the best of their abilities

1) set performance goals and make development plans
2) monitor goals progress
3) coaching by supervisor all year
4) monitor goal progress
5) annual appraisal, adjust goals and plan for next year

58
Q

why use PM and PA?

A

administrative- compensation, job evaluation, and EEO/AAS support

developmental - individual evaluation, training, and career planning

59
Q

challenges in identifying performance dimensions?

A

focusing on the right dimensions - what are the most important performance dimensions that need to be assessed for a sales person?

contamination - when information is gathered but is irrelevant or not actually part of the job

deficiency: when important, performance-related information is not included in the performance evaluation

60
Q

types of rating formats (4 types)

A

relative - comparing an employee’s performance to other employees doing the same job

absolute - judgments bade based on performance only; no comparisons made. easier to defend in court

ranking - ranking employees by performance using numbers

forced distribution - have a top ten percept, an average 40 percent, a below average 40%, and an unacceptable 10%

61
Q

rating formats

A

traits, using graphic ratio scale (employee rated on individual characteristics using a scale)
behaviors (behaviorally anchored ratio scales)
behavior observation scale
critical incidents (manager tracks unusually good or bad performances and works in into the PA)
outcomes - productivity measures

62
Q

which method of rating is best??

A

subjective vs objective? (absolute)
legally defensible? (trait)
useful for promotion or termination? (behaviors)
useful for developing employees? (outcomes)

63
Q

which method is best?

A

relative method

64
Q

who rates performance?

A 
supervisor 
manager
peers
self
subordinate
customer/client
360 degree feedback (confusing, and best for development)
65
Q

biases and fairness

A 
rater biases (halo and horns)
severity and leniency
similar - to - me
recency
race, age, and gender

clear performance standards help with bias

66
Q

halo example

A

impressions of someone’s teamwork skills may influence your impressions about other areas - “he must also be really smart”

67
Q

how can you make PA more accurate?

A

rater training

frame of reference training (one of the best ways to deal with errors and bias in ratings, getting all the raters “on the same page” or getting a common frame or reference)

ratings are calibrated (people discuss why they gave the rating they did, and see how much others agree with their ratings)

68
Q

Why are PA ratings such a mess?

A

inadequate preparation on the part of the manager

employees not given clear objectives at the beginning of the period

managers may not be able to observe performance or have all the information

performance standards may not be clear

inconsistency in rating among supervisors or other rates

manager rating personality rather than performance

the halo effect, contrast effect, or some other perceptual biases

69
Q

things to figure out before appraisal meeting with employee

A

how often do we do performance meetings?

how do we define measure performance?

legally, are there trends leading to lawsuits?

do managers have the skills to do PA well?

is there an employee appeals process?

how will our written feedback look?

70
Q

what does validity mean when talking about performance appraisal?

A

content validity

71
Q

what does reliability mean when talking about performance appraisal?

A

inter-rater reliability

72
Q

things to figure out during and after appraisal meeting with employee

A

lacking ability to do the job?
motivation lacking to do the job?

wrapping up the meeting, and after the meeting?
goal setting and action planning
career management and mentoring

73
Q

compensation 101

A

goal is to attract, select, and maintain/retain the good talent

compensation is the process of:
- determining how much and how to pay employees, and paying them as fairly as possible in exchange for labor
directly and strongly predicts employee turnover

74
Q

inequalities, fairness, and motivation

A

the feeling of quality in inequality is a very basic part of human experience

equity theory and pay equity “I work 50 hours a week and worked hard to get my degree. am i getting paid what i deserve? am i getting as much as the other people in the company?”

outcomes must match inputs

75
Q

3 parts of compensation

A

indirect, direct, and non financial

76
Q

indirect compensation

A

benefits

77
Q

direct compensation

A

wages and salary
incentives
bonuses
commissions

78
Q

non financial compensation

A 
recognition programs
rewarding work
organizational support 
work environment
flexibility
79
Q

compensation system

A

internal equity = is pay structure within the company seen as fair?
external equity = is pay structure seen as fair when comparing to competitor rates for the same labor?

80
Q

equity theory

A

we make both internal and external comparisons all the time

81
Q

step 1 to building a competitive pay structure: strategically paying for performance

A

strategic compensation: linking employee pay to a company’s goals

  • using goals to shape employee pay in such a way that it motivates employees
  • evaluating the compensation program to see if they help the company and employees

pay for performance : a general terms referring to programs where $$ is tied to performance

  • incentive pay, bonuses, commission, merit pay, and so on
  • understanding what good and bad performance looks like
82
Q

big decisions about pay

A

4 major steps:

1) figure out a company’s objectives and board/specific goals
2) consider internal and external factors, and do job evaluation
3) surveys on the competition (benchmarking), then integrating the dat with the job evaluation
4) evaluate how well your compensation system is doing

83
Q

bases for compensation

A

hourly work - work paid on an hourly basis
piece work - work paid according to the number of units produced
salary workers - employees whose compensation is computed on the basis of weekly, biweekly, or monthly pay periods

84
Q

step 2 to building a competitive pay structure: internal and external factors affecting the pay mix

A

pay mix: combo of compensation and employee benefits components that make up an employee’s total compensation package. many faros influence this combination.

job evaluation: a way of establishing internal equity; it involves identifying the relative worth of jobs in a company (entry level sales person and entry level administration should have a similar salary)

point system involves looking at compensable factors such as experience, education, complexity of the job, working conditions (can be determined by job analysis)

85
Q

internal factors affecting the pay mix

A

worth of the job
compensation strategy of organization
employee’s relative worth
employers ability to pay

86
Q

external factors affecting the pay mix

A 
conditions of the labor market
area pay rates
cost of living
collective bargaining
legal requirements
87
Q

step 3 to building a competitive pay structure: how to find out what competitors are paying

A

wage and salary surveys: surveys of the wages paid to employee’s of other companies in the surveying organizations relevant labor market

salary surveys: if a company wants to do its own survey, it cam select key jobs, determine relevant labor market, select organizations, decide on information to collect (wages/benefits/pay policies), compile data received, determine wage structure and benefits to pay

88
Q

pay structure and wage curve

A

relative value of each job and how much to pay; balances internal/external information (pay grades, pay rates/range, and red circle pay)

89
Q

pay grades

A

a pay grade consists of a group of jobs that are similar somehow

“similar” jobs have similar rates

90
Q

pay rates and ranges

A

each job or pay grade gets a range (min-max)

91
Q

assessing the effectiveness of your compensation system…

A

assessing the effectiveness of your compensation system is vitally important to linking compensation with strategy

92
Q

step 4 to building a competitive pay structure: evaluating your new or updated pay system

A

assessing the effectiveness of your compensation system is vitally important to linking compensation with strategy

evaluating your pay system can:
- help the company detect potential pay problems
- make compensation decision more transparent
- improve the alignment of compensation decisions with organizational objectives
-

compa ratio: numerical way to compare your company;s pay to the market rate (1 = market match rate, < 1 = market lag rate, > 1 = market lead rate)

93
Q

legal requirements in compensation

A

equal employment opportunity

title VII (differences in pay cannot be based on differences in sex, race, or other protected classes)

Equal pay act 1963 - men and women paid equally for same jobs in terms of skill, effort, responsibility, and working conditions (exceptions are seniority, performance)

94
Q

legal requirements in compensation

A

fair labor standards act of 1938 - establishes minimum wages, maximum hours, overtime, child labor protection.

driven much of our contemporary work life

95
Q

pay compression/inversion

A

when pay spread between new hires and more qualified employees is small (threatens competitive advantage)

caused by failure to raise pay range limits, scarcity of qualified applicants

96
Q

why do variable and incentive programs exist, and when do they work?

A

fixed pay: base pay; usually predictable monthly paycheck

variable pay: tying pay to some measure of individual, or group or organizational performance

incentive pay programs: establish a performance threshold to quality for incentive payments, must have clear, obvious link between performance and pay, getting involvement from employees in establishing the pay for performance program can result in fair, challenging yet achievable standards

NO RATCHETING UP

97
Q

individual pay

A

piece rate, performance based bonuses, merit pay, and sales incentives

straight piecework: an incentive plan under which employees receive a certain rate for each unit produced

differential piece rate: a compensation rate under which employees whose production exceeds standard amount of output receive higher rate for all of their work than the rate paid to these who do not exceed the standard amount

bonus: incentive payment that is supplemental to the base wage for cost reduction, quality improvement, or other performance criteria

lump sum bonus: payment of entire increase at one time.

98
Q

group level pay

A

team level bonuses and the group level rewards, gainsharing

rewarding employees for collective performance (team based and gainsharing)

measure of group performance: customer satisfaction, labor cost savings, materials cost savings, reduction in accidents, services cost savings

how are rewards for group performance structured?
equal incentive payments, differential payments based on contribution to goals, differential payments according to base pay

99
Q

company level pay

A

stocked owned by employees, profit sharing

rewarding employees when company meets its goals

profit sharing: employer pays (in addition to the base pay) money based on the profits of the enterprise - a challenge is maintaining motivational connection of profit sharing to performance of employees

stock options = granting employees right to purchase a specific number of shares of the company’s stock at a guaranteed price during a designated period of time

100
Q

merit pay

A

goals: reward excellent performance, motivate future performance, retain valued employees.

can be tricky and risky. company must specify which behaviors will be rewarded
behaviors should be in line with company values
ensure that employees don’t ignore goals that are not rewarded

101
Q

sales incentives

A

straight salary, straight commission, salary and commission combinations

102
Q

straight salary plan

A

fixed base compensation (risk-free from employee’s perspective)

advantages are that encourages building customer relationships and provides compensations during periods of poor sales

cons are may not maximize motivation

103
Q

straight commission

A

based on fixed percentage of sales price

salespeople stress high priced products, customer services after sale may be neglected, and earnings can fluctuate widely between good and poor business periods

104
Q

salary and commission combinations

A

most common plan; part of income is fixed (base salary) while other part is commission based.

motivates sales force to achieve specific company marketing objectives in addition to sales volume

105
Q

gainsharing

A

incentives based on company’s performance goals like increased productivity, increased customer satisfaction

involves employee participation, and includes bonuses

comply applied to a single branch or location

106
Q

pros and cons to group incentives

A

pros: companies can more easily develop performance measures for groups plans than individual plans, greater group cohesion,
cons: free riders, members may be uncomfortable with the fact that other members’ performance influences their compensation

107
Q

chief executive and $$$

A

us executives are best paid in the world

they have disproportionate ability to influence organizational performance

executives have incentive pay

  • base pay and benefits
  • short and long term incentives
  • perks
  • golden parachute

Human Resource Management (9 decks)

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