Final Exam Flashcards
Motivation
The psychological processes that underlie the direction, intensity, and persistence of behavior or thought
Extrinsic Motivation
Result of potential or actual receipt of external rewards
Intrinsic Motivation
Inspired by the positive internal feelings that are generated by doing well
Content Theories
Identify internal factors such as needs and satisfaction that energize employee motivation
Process Theories
Explain the process by which internal factors and situational factors influence employee motivation.
Needs
Physiological or psychological deficiencies that arouse behavior
Theory X
A pessimistic view of employees: They dislike work, must be monitored, and can be motivated only with rewards and punishment (“carrots and sticks”)
Theory Y
A modern and positive set of assumptions about people at work: They are self-engaged, committed, responsible, and creative
Need hierarchy theory
States that motivation is a function of five basic needs: physiological, safety, love, esteem, and self-actualization
Acquired Needs Theory
States that three needs—achievement, affiliation, and power—are the key drivers of employee behavior
Needs for Achievement
The desire to excel, overcome obstacles, solve problems, and rival and surpass others.
Need for affiliation
The desire to maintain social relationships, be liked, and join groups.
Need for Power
The desire to influence, coach, teach, or encourage others to achieve.
Self-Determination Theory
Assumes that three innate needs influence our behavior and well-being—the needs for competence, autonomy, and relatedness
Competence
The desire to feel qualified, knowledgeable, and capable to complete an act, task, or goal.
Autonomy
The desire to have freedom and discretion in determining what you want to do and how you want to do it.
Relatedness
The desire to feel part of a group, to belong, and to be connected with others.
Motivator-Hygiene Theory
Proposes that job satisfaction and dissatisfaction arise from two different sets of factors—satisfaction comes from motivating factors and dissatisfaction from hygiene factors
Hygiene Factors
Include company policy and administration, technical supervision, salary, interpersonal relationships with supervisors, and working conditions. They cause a person to move from a state of no dissatisfaction to dissatisfaction
Motivating Factors (Motivators)
Include achievement, recognition, characteristics of the work, responsibility, and advancement. They cause a person to move from a state of no satisfaction to satisfaction
Equity Theory
A model of motivation that explains how people strive for fairness and justice in social exchanges or give-and-take relationships
Distributive Justice
The perceived fairness of the way resources and rewards are distributed or allocated
Procedural Justice
The perceived fairness of the process and procedures used to make allocation decisions
Interactional Justice
The quality of the interpersonal treatment people receive when procedures are implemented
Voice
The discretionary or formal expression of ideas, opinions, suggestions, or alternative approaches directed to a specific target inside or outside of the organization with the intent to change an objectionable state of affairs and to improve the current functioning of the organization
Voice Climate
Climate in which employees are encouraged to freely express their opinions and feelings
Expectancy Theory
Holds that people are motivated to behave in ways that produce desired combinations of expected outcomes
Expectancy
An individual’s belief that a particular degree of effort will be followed by a particular level of performance
Instrumentality
The perceived relationship between performance and outcomes
Valence
Describes the positive or negative value people place on outcomes
Goal Specificity
Indicates whether a goal has been quantified
High-Performance Work System
An organization in which technology, organizational structure, people, and processes work together seamlessly to give an organization an advantage in the competitive environment.
Organizational Structure
The way the organization’s people are grouped into useful divisions, departments, and reporting relationships.
Task Design
Determines how the details of the organization’s necessary activities will be grouped, whether into jobs or team responsibilities.
Elements of a High-Performance Work Systems:
-Organizational Structure
-Information Systems
-Task design
-Reward Systems
-People (selection, training, and development)
Reward Systems
Contribute to high performance by encouraging people to strive for objectives that support the organization’s overall goals.
Information Systems
Systems that store and distribute information. Managers choose the source of information and who has access to it.
High-performance work systems lead to
Higher productivity
-Higher quality
-Higher efficiency
-Low employee turnover
-Customer Satisfaction
Steps of Performance management:
- Identify what the company is trying to accomplish
- Develop employee goals and actions to achieve these outcomes.
- Provide training and resources to employees.
- Evaluate employees performance
- Identify what employee can do differently
- Provide consequences
Purposes of Performance Management:
-Strategic Purpose
-Administrative Purpose
-Developmental Purpose
Simple Ranking
Method of performance measurement that requires managers to rank employees in their group from the highest performer to the poorest performer.
Forced-Distribution Method
Method of performance measurement that assigns a certain percentage of employees to each category in a set of categories.
Paired-Comparison Method
Method of performance measurement that compares each employee with each other employee to establish rankings.
Graphic Rating Scale
Method of performance measurement that lists traits and provides a rating scale for each trait; the employer uses the scale to indicate the extent to which an employee displays each trait.
Mixed-Standard Scales
Method of performance measurement that uses several statements describing each trait to produce a final score for that trait.
Critical-Incident Method
Method of performance measurement based on managers’ records of specific examples of the employee acting in ways that are either effective or ineffective.
Behaviorally Anchored Rating Scale (BARS)
Method of performance measurement that rates behavior in terms of a scale showing specific statements of behavior that describe different levels of performance.
Behavioral Observation Scale (BOS)
A variation of a BARS which uses all behaviors necessary for effective performance to rate performance at a task.
Organizational Behavior Modification (OBM)
A plan for managing the behavior of employees through a formal system of feedback and reinforcement.
Management By Objectives (MBO)
A system in which people at each level of the organization set goals in a process that flows from top to bottom, so employees at all levels are contributing to the organization’s overall goals; these goals become the standards for evaluating each employee’s performance.
How to provide performance feedback effectively:
-Neutral Location
-Strive for problem-solving approach
-Look for opportunities to praise and limit criticism
-Focus on behavior instead of personality.
Comparable Worth
Uses job evaluation to establish the worth of an organization’s jobs in terms of such criteria as their difficulty and importance to the organization.
Minimum Wage
The lowest amount that employers may pay under federal or state law, stated as an amount of pay per hour.
Fair Labor Standards Act (FLSA)
Federal law that establishes a minimum wage and requirements for overtime pay and child labor.
Exempt Employees
Managers, outside salespeople, and any other employees not covered by the FLSA requirement for overtime pay.
Nonexempt Employees
Employees covered by the FLSA requirements for overtime pay.
Federal contractors must pay their employees at rates
at least equal to the prevailing wages in the area (30% of local labor force)
Dodd-Frank Act
Companies are required to include pay ratio in their financial statements.
Job Evaluation
An administrative procedure for measuring the relative internal worth of the organization’s jobs.
How Pay structure is designed.
Connection between incentive pay and employee performance:
-Higher Incentive Pay leads to Higher Performance
-To be effective, Goals must be achievable and incentives should encourage behaviors most needed.
Piecework Rate
Rate of pay per unit produced.
Straight Piecework Plan
Incentive pay in which the employer pays the same rate per piece, no matter how much the worker produces.
Differential Piece Rates
Incentive pay in which the piece rate is higher when a greater amount is produced.
Standard Hour Plan
An incentive plan that pays workers extra for work done in less than a preset “standard time.”
Merit Pay
A system of linking pay increases to ratings on performance appraisals.
Commissions
Incentive pay calculated as a percentage of sales.
Importance of benefits as a part of employee compensation:
-Benefits help employers attract, retain, and motivate employees
-High variety of benefits that can be tailored to specific employees.
-Going beyond the minimum helps an organization compete in the labor market.
Social Security
The federal Old Age, Survivors, Disability, and Health Insurance (OASDHI) program, which combines old age (retirement) insurance, survivor’s insurance, disability insurance, hospital insurance (Medicare Part A), and medical insurance (Medicare Part B) for older individuals.
Unemployment Insurance
A federally mandated program to minimize the hardships of unemployment through payments to unemployed workers, help in finding new jobs, and incentives to stabilize employment.
Experience Rating
The number of employees a company has laid off in the past and the cost of providing them with unemployment benefits.
Workers’ Compensation
State programs that provide benefits to workers who suffer work-related injuries or illnesses, or to their survivors.
Family and Medical Leave Act (FMLA)
Federal law requiring organizations with 50 or more employees to provide up to 12 weeks of unpaid leave after childbirth or adoption; to care for a seriously ill family member or for an employee’s own serious illness; or to take care of urgent needs that arise when a spouse, child, or parent in the National Guard or Reserve is called to active duty.
Patient Protection and Affordable Care Act
Health care reform law passed in 2010 that includes incentives and penalties for employers providing health insurance as a benefit.
Most common forms of paid leave:
-Vacations
-Holidays
-Sick leave
-Personal Days
-Floating Holidays
Consolidated Omnibus Budget Reconciliation Act (COBRA)
Federal law that requires employers to permit employees or their dependents to extend their health insurance coverage at group rates for up to 36 months following a qualifying event, such as a layoff, reduction in hours, or the employee’s death.
Health Maintenance Organization (HMO)
A health care plan that requires patients to receive their medical care from the HMO’s health care professionals, who are often paid a flat salary, and provides all services on a prepaid basis.
Preferred Provider Organization (PPO)
A health care plan that contracts with health care professionals to provide services at a reduced fee and gives patients financial incentives to use network providers.
Flexible Spending Account
Employee-controlled pretax earnings set aside to pay for certain eligible expenses, such as health care expenses, during the same year.
High-deductible health plan (HDHPs)
Health care plans that provide incentives for employees to make decisions that help lower health care costs.
Employee Wellness Program (EWP)
A set of communications, activities, and facilities designed to change health-related behaviors in ways that reduce health risks.
Short-Term Disability Insurance
Insurance that pays a percentage of a disabled employee’s salary as benefits to the employee for six months or less.
Long-Term Disability Insurance
Insurance that pays a percentage of a disabled employee’s salary after an initial period and potentially for the rest of the employee’s life.
