Final Terms

Question 1

skill analysis

Answer 1

a systematic process of identifying and collecting about skills required to perform work in an organization

Question 2

How to skill analysis

Answer 2

collect specific info on every aspect of the production process

Question 3

How to competency analysis

Answer 3

personal characteristics, visionary, organization specific

Question 4

the perfect pay structure

Answer 4

provide sufficient ambiguity to afford flexibility

Question 5

Variable pay improve performance results?

Answer 5

plans often have too small payout, unattainable goals, outdated metrics, too Many metrics

Question 6

spot award

Answer 6

a good way to recognized performance shortly after the performance was completed

Question 7

performance ratings

Answer 7

rating an employee based on how well they perform their job, usually on a scale

Question 8

MBOs

Answer 8

(manage by objective) uses outcomes as the standard of performance measure

Question 9

360 degree feedback

Answer 9

receiving feedback from subordinates, colleagues supersvisors, and self eval

Question 10

Types of team incentive plane

Answer 10

group incentive, gain-sharing plans

Question 11

group incentive plans

Answer 11

team performance is measure against a set standard to determine incentive pay

Question 12

gain sharing plans

Answer 12

pay offs for teams defined at the level of a strategic business unit (use operating measures to gauge performance

Question 13

Five causes of failure for team incentive plans

Answer 13

team variety, the level problem, complexity, control, comm

Question 14

profit sharing plans

Answer 14

use financial measures

Question 15

Explosive interest in LTI plans

Answer 15

spurred by a desire to motivate longer term value creation

Question 16

RSU

Answer 16

have value regardless if the stock price goes up from grant date

Question 17

Stock options

Answer 17

(3 options need to be granted to = 1 RSU) only have value if the stock goes up from grant/exercise price

Question 18

term

Answer 18

length of time a stock option can be exercised; typically 7 years

Question 19

employee stock ownership plans

Answer 19

generate LT effects, foster employee willingness to participate in the decision making process, little impact on productivity or profit

Question 20

performance plans

Answer 20

driven by financial earnings or return measures, pay for meeting or exceeding goals

Question 21

Broad based option plans

Answer 21

are stock grans and versatile

Question 22

combination plans

Answer 22

mixing individual and group plans

Question 23

self funding plans

Answer 23

payouts only occur after the company reaches a certain profit target

Question 24

criterion deficient

Answer 24

just because something is quantifiable does not mean it is an objective measure of performance

Question 25

managers grouped into one of three categories

Answer 25

performance, counterproductive performance or both

Question 26

balance scorecard approach

Answer 26

looks at what contributes value in a an organization

Question 27

equal employment opportunity

Answer 27

forces organizations to document decisions to ensure they are firmly tied to performance or expected performance

Question 28

general increases

Answer 28

give equal increases to all employees, regardless of performance

Question 29

across the board increases

Answer 29

are linked with cost of living and adjusts base pay for all employees

Question 30

seniority increases

Answer 30

come close to tying pay to performance, progressive pre set pay increases

Question 31

tying pay to performance requires three things

Answer 31

a definition of performance, a continuum showing levels from low to high, awarded merit increase at each level

Question 32

components of exec comp

Answer 32

base salary, annual bonuses, LTI, benefits, prerequisites

Question 33

Diff btw exec and regular comp

Answer 33

execs receive higher benefits