Exam 3 - Review Flashcards
Performance appraisal
What are the 2 purposes
- Adminstristal (Personal Decisions)
2. Developmental (Career Planning)
◦ 3 different types of PA methods
Access the extent of one individual to possess an important trait or characteristic that is important to the job or the organization. Criticism: it pays too much about the person instead of what they do.
- Behavioral methods
Behaviorally anchored rating scale (BARS)
• Behavioral observation scale (BOS)
- Results methods
Focusing on Management by objective - goals
Pros of Trait Methods
- inexpensive
* easy to use
Cons of Trait Methods
• Poor for
feedback
• Potential for
Errors
Pros of Behavioral Methods
• useful for providing
feedback
• accepted by employees
• ok for rewards/promotion
Cons of Behavioral Methods
- time consuming
* costly
Pros of Results Methods
• objective • accepted by employees • encourage goal settings • ok for promotions/ rewards
Cons of Results Methods
• may be impacted by
circumstances beyond
employees controlled
• Possibly to falsify results
Common rater related errors
Error of central tendency
Error of central tendency: rate everyone around average of scale
Leniency or strictness error
Leniency or strictness error ◦Managers give out unusually high measures for average performance
◦Managers give out unusually low measures for average performance
Similar-to-me errors
Similar-to-me errors
◦give out high measures because of similar things in common (commonalities)
◦for example if they support the same team
◦younger version of me
Recency error
Recency error
◦It only focuses on the recent performance rather than the whole time
◦For example, if it looks for annual performance (recency error) the managers will only look at 4 months before the measure is due
Contrast Errors
Contrast Errors
◦comparison between two persons
◦Comparison is keyword
◦comparison between two employees rather than comparing performance measure with employee
◦Halo error
◦Halo error
‣ Raters will rate on the positive aspect rather than focusing on all performance measure
Horns error
Horns error
‣ The managers will rate more on the negative aspects based on one or two things rather than focusing on all the performance measure.
All these are considered as unconditional errors
How to minimizes these errors
[help]
- more specific rating formats
- hold raters accountable for accuracy
- Performance appraisal training: understand errors
- Frame of reference training: understand standards
◦ Intentional errors
◦ Intentional errors
‣ By politics
Performance review session
Pink sheet
Look over
Deficiency
‣ Something is missing
‣ Criterion deficiency:
‣ Aspects of actual performance that are not measured
Contamination
Criterion contamination
Criterion contamination
Elements that affect the appraisal measures that are not part of the actual performance
Three types of Different Job Evaluation
- Job ranking
- Job classification
- Point system
Job ranking
Job ranking
Your find the most important jobs according to the firm and pay those jobs more. You determine the worth of the job and use market surveys to develop a pay structure system
Job classification
Job classification
You create different classifications of grades. Each grade has a description of the job, knowledge, etc. You than compare the job to the description you made to determine pay. Essentially you have a predetermined pay
Point system
Point system
A system where you have rank compensable factors with weights to see what job is most important to the firm
Pay system
Objectives of pay system
(4)
- Strategic
- Attractive
- Equitable
- Motivating
- Complies with law and regulations
Motivation
Expectancy theory
The employees effort are rewarded to increase performance
The rewards needs to be VALUABLE
Broad banding
Broad banding
Gives the managers more flexibility in rewarding someone
Comparative worth vs equal pay
Comparative worth
Pay for the same job
Regarding the worth of the job
Equal pay
Pay for the equal work
Men and women working on them same job should be paid they same
FLSA stands for
Fair Labor Standards Act
FLSA
needs more notes
Federal minimum wage
Federal minimum wage
$7.25
Nevada minimum wage with insurance
Nevada minimum wage with insurance
$7.25
Nevada minimum wage without insurance
Nevada minimum wage without insurance
$8.25
5 Different classifications of exempt employees
- executives
- administrators
- professionals
- outside sales people,
- computer employees
Benefits
Mandatory
5 benefits
Benefits Mandatory 5 benefits 1. Social Security 2. Unemployment insurance 3. Worker’s compensation Paid for getting hurt at the job Not required to get paid for leaves. 4. Leaves without pay 5. Consolidated Omnibus Budget Reconciliation Act (COBRA)
Discretionary benefits
- Health Insurance
- Child care
- Wellness programs
- Life and long-term care insurance
- Payment for time not worked
- Pension plans
Pension plans
[need more notes]
Pension plans
[need more notes]
Not required by law
However, it’s a great benefit to give your employees as it’ll attract talented individuals to your company which will contribute more than the average person.
Pension plans
Regulated by ERISA -
Employee Retirement income security act [ERISA]
What do they do (2)?
Pension plans
Regulated by ERISA -
Employee Retirement income security act [ERISA]
What they do
1. Regulate private sector pension plans
2. Sets minimum amount for investing
Are pensions required by law?
NOT REQUIRED
Vesting
The point in time when pension monies set aside by a company become the actual property of that individual
Noncontributing,
Contributory;
Noncontributing, includes employer
Company will be the sole contributor to your pension account
Contributory; both employer and employee (joint)
Employee and company will contribute to your pension account
Defined benefits:
Defined contribution:
Defined benefits: guarantee amount (percentage of your retired salary)
Traditional type of pension plans
The specific amount when you are going to retire is predetermined based on certain parameters
Defined contribution: how they are going to define how they are going to make their contributions. It’s less predictable
Getting more and more popular as an incentive
401k is an example of a contribution
Cash or stocks
You do not know how much you are going to get when you retired
401k is tax deferred
Flexible benefits programs
Advantages
Flexible benefits programs
Advantages
‣ Accommodate difference in employee needs
‣ Prevent waste of benefits
Employees gain better understanding of benefits
Flexible benefits programs
Disadvantages
Flexible benefits programs Disadvantages ‣ Difficult to design and administer ‣ High Administrative cost Possible blame on employer for poor employee choices
Job evaluation
Job evaluation
Evaluating the relative worth of the job
