FINAL EXAM Flashcards
Appraisal Process
- Establish performance standards with employees
- Communicate expectations
- Measure actual performance
- Compare actual performance with standards
- Discuss the appraisal process with the employee
- If necessary, initiate corrective action
MBO’s contain
- Specific goals
- Participative decision making
- Specific time period
- Performance feedback
Leniency error
performance appraisal distortion caused by evaluating employees against one’s own value system
Halo error
the tendency to let our assessment of an individual on one trait influence our evaluation of that person on other specific traits
Similarity error
evaluating employees based on the way an evaluator perceives himself or herself
Central tendency
the tendency of a rater to give average ratings
Attribution theory
a theory of performance evaluation based on the perception of who is in control of an employee’s performance
Management by objectives (MBO)
a performance appraisal method that includes mutual objective setting and evaluation based on the attainment of the specific objectives
Absolute standards- Measuring an employee’s performance against established standards
Critical incident appraisal- a performance evaluation that focuses on key behaviors that differentiate between doing a job effectively or ineffectively
· Checklist appraisal- a performance evaluation in which a rater checks off applicable employee attributes
· Graphic rating scale- a performance appraisal method that lists traits and a range of performance for each
· Forced choice appraisal- a performance evaluation in which the rater must choose between two specific statements about an employee’s work behavior
· Behaviorally anchored rating scales (BARS)- a performance appraisal technique that generates critical incidents and develops behavioral dimensions of performance. The evaluator appraises behaviors rather than traits.
Relative Standards Methods
· Relative standards- evaluating an employee’s performance by comparing the employee with another employee
· Individual ranking- Ranking employee’s performance from highest to lowest
· Paired comparison- Ranking individuals performance by counting the times any one individual is the preferred member when compared with all other employees
Intrinsic rewards
satisfactions derived from the job itself, such as pride in ones work, a feeling of accomplishment, or being part of a team
Extrinsic rewards
benefits provided by the employer, usually money, promotion, or benefits
Job enrichment
enhancing jobs by giving employees more opportunity to plan and control their work
Performance based rewards
rewards exemplified by the use of commissions, piecework pay plans, incentive systems, group bonuses, or other forms of merit pay
Compensation administration
the process of managing a company’s compensation program
Fair Labor Standards Act (FLSA)-
Passed in 1938 this act established laws outlining minimum wage, overtime pay, and maximum hour requirements for U.S. workers
Exempt employees
employees in positions that are exempt from most employee protection outlined in FLSA, especially overtime pay
Nonexempt employees
Employees who are covered by the FLSA, including overtime pay and minimum wage provisions of the act
Equal Pay act of 1963
- This act requires equal pay for work
Ordering method
ranking job worth from highest to lowest
Classification method
evaluating jobs based on predetermined job grades
Point method
breaking down jobs based on identifiable criteria and the degree to which these criteria exist on the
Compensation surveys
used to gather factual data on pay practices among firms and companies with specific communities
Wage structure
a pay scale showing ranges of pay within each grade
External factors of pay
Geographical location · Labor supply · Competition · Cost of living · Collective bargaining · Communicating with employees
Incentive compensation plans
motivate systems based on individual work performance
Merit pay
an increase in pay, usually determined annually
Group incentive
motivational plan provided to a group of employees based on their collective work
Organization wide incentive
a motivation system that rewards all facility members based on how well the entire group performed
Scanlon plan
an organization wide incentive program focusing on cooperation between management and employees through sharing problems, goals, and ideas
IMPROSHARE
an incentive plan that uses a specific mathematical formula for determining employee bonuses
Pay for performance
rewarding employees based on performance
Broad banding
paying employees at preset levels based on their level of competency
Team based compensation-
pay based on how well the team performed
· Executive compensation Programs
Perquisites
attractive benefits, over and above a regular salary, granted to executives, also known as perks
Golden parachute
financial protection plan for executives in case they are severed from the organization
Employee benefits
Membership based, nonfinancial rewards offered to attract and keep employees
Domestic partner benefits
benefits offered to an employee’s live-in partner
· Legally required benefits
