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HRM Flashcards

1
Q

WHAT: All forms of pay or rewards going to employees & arising from their employment

A

COMPENSATION

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2
Q

Two forms of compensation

A

Direct forms
Indirect forms

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3
Q

FORMS OF COMPENSATION: wages, salaries, incentives, commission, bonuses

A

Direct forms

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4
Q

FORMS OF COMPENSATION: employer paid insurance, leave pay (VL/SL)

A

Indirect forms

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5
Q

WHAT: A segment of HRM which focuses on planning, organizing and
controlling the direct and indirect payments employees receive for
the work they perform.

A

COMPENSATION ADMINISTRATION

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6
Q

A ___________ is an important part of the overall strategic HRM plan, since much of the company budget is for employee compensation. It can include salary, bonuses, health-care plans, and a variety of other types of compensation.

A

compensation package

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7
Q

COMPENSATION STRATEGIES

A

Market COMPENSATION policy
Market PLUS philosophy
Market MINUS philosophy

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8
Q

COMPENSATION STRATEGIES: To pay the going rate for a particular job.

A

Market COMPENSATION policy

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9
Q

COMPENSATION STRATEGIES: Determine the going rate and add a percentage to that rate, such as 5%.

A

Market PLUS philosophy

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10
Q

COMPENSATION STRATEGIES: Particular percentage less than the market.

A

Market MINUS philosophy

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11
Q

PAY THEORIES

A

EQUITY THEORY
EXPECTANCY THEORY
REINFORCEMENT THEORY

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12
Q

PAY THEORIES: concerned with the relational satisfaction employees get from pay and inputs they provide to the organization. It says that people will evaluate their own compensation by comparing their compensation to others’ compensation and their inputs to others’ inputs

A

equity theory

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13
Q

PAY THEORIES: employees will put in as much work as they expect to receive. In other words, if the employee perceives they are going to be paid favorably, they will work to achieve the outcomes. If they believe the rewards do not equal the amount of effort, they may not work as hard.

A

expectancy theory

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14
Q

PAY THEORIES: ,developed by Edward L. Thorndike, says that if high performance is followed by some reward, that desired behavior will likely occur in the future

A

reinforcement theory

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15
Q

METHODS OF WAGE PAYMENTS

A

TIME RATE WAGE SYSTEM
PIECE RATE WAGE SYSTEM

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16
Q

METHODS OF WAGE PAYMENTS: Workers are paid according to the work done during a certain period of time at a rate of per hour, per day, per week, per month o any other fixed period of time.

A

TIME RATE WAGE SYSTEM

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17
Q

METHODS OF WAGE PAYMENTS: Workers are paid according to the amount of work done or numbers of units produced or completed, the rate of each unit being settled in advance irrespective of the time taken to do the work.

A

PIECE RATE WAGE SYSTEM

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18
Q

TYPES OF PAY SYSTEMS

A

SKILL BASED PAY
COMPETENCY BASED PAY
BROADBANDING
VARIABLE PAY SYSTEM

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19
Q

TYPES OF PAY SYSTEMS: salary levels are based on an employee’s skills, as opposed to job title. This method is implemented similarly to the pay grade model, but rather than job title, a set of skills is assigned a particular pay grade.

A

SKILL BASED PAY

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20
Q

TYPES OF PAY SYSTEMS: looks at the employee’s traits or characteristics as opposed to a specific skills set. This model focuses more on what the employee can become as opposed to the skills he or she already has.

A

COMPETENCY BASED PAY

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21
Q

TYPES OF PAY SYSTEMS: all jobs in a particular category are assigned a specific pay category. For example, everyone working in customer service, or all administrative assistants (regardless of department), are paid within the same general band.

A

BROADBANDING

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22
Q

TYPES OF PAY SYSTEMS: This type of system provides employees with a pay basis but then links the attainment of certain goals or achievements directly to their pay.

A

VARIABLE PAY SYSTEM

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23
Q

PROCESS OF WAGE DETERMINATION

A
  1. JOB ANALYSIS AND JOB EVALUATION
  2. DETERMINING PERFORMANCE STANDARD AND WAGE SURVEYS
  3. DECIDING WAGE STRUCTURE AND RULES FOR ITS ADMINISTRATION
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24
Q

WHAT: reveals information about tasks, duties, responsibilities and standards proposed job is to be performed by the employees.

A

Job analysis

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25
WHAT: finding out relative worth of job in terms of its contribution and significance to the overall organizational objectives.
Job evaluation
26
WHAT: Things of value other than compensation that an organization provides to its employees.
BENEFITS
27
TWO TYPES OF BENEFITS
MANDATED BENEFITS NONMANDATED BENEFITS
28
TWO TYPES OF BENEFITS: Benefits that are mandated by law.
MANDATED BENEFITS
29
TWO TYPES OF BENEFITS: Other benefits provided by the organization in addition to those mandated by law.
NONMANDATED BENEFITS
30
SSS contribution rate is _____ of your monthly salary credit (MSC) not lower than P2,000 and not exceeding P20,000, and this is being shared by you (employee) and your employer at 4% and 8%, respectively.
12%
31
Philippine Health Insurance (PHILHEALTH) premium rate for CY 2022 is _____ for all Direct Contributors with an income floor of P10,000 and income ceiling of P80,000 effective January 2022.
4%
32
HOME MUTUAL DEVELOPMENT FUND (HDMF): The employee share is pegged at ______ if his monthly compensation is ₱1,500 and below, and _______ if monthly compensation is more than ₱1,500. The employer share is set at 2% regardless of the employee’s monthly compensation.
1%; 2%
33
COMMON EMPLOYEE BENEFITS (NONMANDATED) in the PHILS.
* Paid leave * Health insurance/Dental insurance * Life insurance * Scholarship grant/Tuition reimbursement * Housing * Vehicle plan * Commuting/travel assistance * Wellness programs/Gym memberships * Workplace perks such as recreation activities, food and coffee, and flexible work schedules * Telecommuting options
34
WHAT: A systematic way to examine how well an employee is performing his or her job.
PERFORMANCE EVALUATION SYSTEMS
35
WHAT: The process of assessing the performance or progress of an employee, or a group of employees on the given job.
PERFORMANCE EVALUATION SYSTEMS
36
CHARACTERISTICS OF PERFORMANCE APPRAISAL
1. A PROCESS 2. SYSTEMATIC ASSESSMENT 3. MAIN OBJECTIVE 4. SCIENTIFIC EVALUATION 5. PERIODIC EVALUATION 6. CONTINUOUS PROCESS 7. EMPLOYEE FEEDBACK
37
USES OF PERFORMANCE APPRAISAL
1. DECIDING PROMOTION 2. PERSONNEL ACTIONS 3. WAGE AND SALARY ADMINISTRATION 4. TRAINING AND DEVELOPMENT 5. PERSONNEL RESEARCH 6. SELF EVALUATION 7. HEALTHY COMPETITION
38
ESSENTIALS OF AN EFFECTIVE PERFORMANCE APPRAISAL SYSTEM
* MUTUAL TRUST * CLEAR OBJECTIVES * STANDARDIZATION * TRAINING * JOB RELATEDNESS * STRENGTH & WEAKNESS * FEEDBACK AND PARTICIPATION * INDIVIDUAL DIFFERENCES * POST APPRAISAL INTERVIEW * REVIEW AND APPEAL
39
DESIGNING PERFORMANCE APPRAISAL SYSTEM
1. FREQUENCY 2. REWARDS 3. GOALS 4. SOURCE 5. COMMUNICATE
40
DESIGNING PERFORMANCE APPRAISAL SYSTEM: Determine how often performance appraisals should be given.
FREQUENCY
41
DESIGNING PERFORMANCE APPRAISAL SYSTEM: Determine if pay increase can be tied to employee performance.
REWARDS
42
DESIGNING PERFORMANCE APPRAISAL SYSTEM: Determine goals of the appraisal.
GOALS
43
DESIGNING PERFORMANCE APPRAISAL SYSTEM: Determine who should evaluate the performance of the employee.
SOURCE
44
DESIGNING PERFORMANCE APPRAISAL SYSTEM: communicate the process; train managers and employees on the process.
COMMUNICATE
45
APPRAISAL METHODS: This type of evaluation lists traits required for the job and asks the source to rate the individual on each attribute.
GRAPHIC RATING SCALE
46
APPRAISAL METHODS: The source answers a series of questions about the employee’s performance in essay form.
ESSAY APPRAISAL
47
APPRAISAL METHODS: The manager records examples of the employee’s effective and ineffective behavior during the time period between evaluations, which is in the behavioral category.
CRITICAL INCIDENT APPRAISAL
48
APPRAISAL METHODS: When it is time for the employee to be reviewed, the manager will pull out this file and formally record the incidents that occurred over the time period.
CRITICAL INCIDENT APPRAISAL
49
APPRAISAL METHODS: These statements may include strengths and weaknesses about the employee, or statements about past performance, specific examples or incidents of past performance.
ESSAY APPRAISAL
50
APPRAISAL METHODS: A series of questions is asked and the manager simply responds yes or no to the questions, which can fall into either the behavioral or the trait method or both.
CHECKLIST SCALE
51
APPRAISAL METHODS: With this results-focused approach, a minimum level is set and the employee’s performance evaluation is based on this level.
Work Standards Approach
52
APPRAISAL METHODS: Employees in a particular department are ranked based on their value to the manager or supervisor. This system is a comparative method for performance evaluations.
Ranking Method (Stack Ranking)
53
APPRAISAL METHODS: The tool utilizes narrative information as from critical incidents file and assigns quantified ranks to each expected behavior. There is a specific narrative outlining what exemplifies a “good” or “poor” behavior for each category.
BEHAVIORALLY ANCHORED RATING SCALE (BARS)
54
POTENTIAL APPRAISAL PROBLEMS: An appraisal that is too open to interpretation.
UNCLEAR STANDARDS
55
POTENTIAL APPRAISAL PROBLEMS: In performance appraisal, the problem that occurs when a supervisor’s rating of a subordinate on one trait biases the rating of that person on other traits.
HALO EFFECT
56
POTENTIAL APPRAISAL PROBLEMS: a tendency to rate all employees the same way, such as rating them all average.
CENTRAL TENDENCY
57
POTENTIAL APPRAISAL PROBLEMS: the problem that occurs when a supervisor has a tendency to rate all subordinates either high or low.
LENIENCY OR STRICTNESS
58
POTENTIAL APPRAISAL PROBLEMS: letting what the employee has done recently blind you to what his or her performance over the past year.
RECENCY EFFECT -
59
POTENTIAL APPRAISAL PROBLEMS: the tendency to allow individual differences such as age, race and sex to affect the appraisal ratings employees receive.
BIAS
60
LIMITATIONS OF PERFORMANCE APPRAISALS
1. TIME CONSUMING 2. LACK OF RELIABILITY 3. INCOMPETENCE 4. NO UNIFORM STANDARDS 5. ABSENCE OF EFFECTIVE PARTICIPATION OF EMPLOYEES 6. RESISTANCE OF EMPLOYEES TO APPRAISAL 7. PAPERWORK 8. FEAR OF SPOILING RELATIONS 9. STEREOTYPING 10. NEGATIVE APPROACH 11. MULTIPLE OBJECTIVES 12. RESISTANCE 13. INDIVIDUAL DIFFERENCES 14. UNCONFIRMED
61
GUIDELINES FOR EFFECTIVE APPRAISALS
1. KNOW THE PERFORMANCE APPRAISAL PROBLEMS 2. USE THE RIGHT APPRAISAL TOOL 3. KEEP A DIARY 4. GET AGREEMENT ON A PLAN 5. ENSURE FAIRNESS
62
WHAT: An interview in which the supervisor and subordinate review the appraisal and make plans to remedy deficiencies and reinforce strengths.
APPRAISAL INTERVIEW
63
GUIDELINES IN CONDUCTING APPRAISAL INTERVIEWS
1. Be direct and specific. 2. Do not be personal; always compare the performance to the standard. 3. Remember, it is a development opportunity. 4. Thank the employee and avoid criticism.
64
PERFORMANCE MANAGEMENT PROCESS
1. PERFORMANCE PLANNING 2. DAY TO DAY COACHING AND FEEDBACK 3. QUARTERLY PERFORMANCE CHECK IN 4. FORMAL PERFORMANCE REVIEW
65
WHAT: A psychological process that begins with a need that transforms into a goal which in turn directs and employee behavior.
EMPLOYEE MOTIVATION
66
_________gives an employee extra motivation to go above and beyond current level of performance.
Rewards
67
Earning a _______ and doing a work that makes them proud.
paycheck
68
WHAT: he rate at which employees leave the company.
EMPLOYEE TURNOVER
69
TWO TYPES OF TURNOVER: initiated by the employee for many different reasons. It can be somewhat predicted and addressed in HR, the focus of this chapter.
Voluntary turnover
70
TWO TYPES OF TURNOVER: employee has no choice in their termination—for example, employer-initiated due to nonperformance.
Involuntary turnover
71
COSTS OF TURNOVER
* DIRECT * INDIRECT
72
DIRECT COST OF TURNOVER
- Recruitment Costs - Advertising Costs - Orientation and training of new employee - Severance costs - Testing costs - Time to interview new replacements, Time - to recruit and train new hires
73
INDIRECT COST OF TURNOVER
- Lost Knowledge - Loss of productivity while new employee is brought up to speed - Cost associated with lack of motivation prior to leaving - Cost associated with loss of trade secrets
74
REASONS FOR VOLUNTARY TURNOVER
1. POOR MATCH BETWEEN THE JOB AND THE SKILLS OF THE EMPLOYEE 2. LACK OF GROWTH 3. INTERNAL PAY EQUITY 4. MANAGEMENT 5. WORKLOAD
75
MOTIVATION THEORIES: Mayo developed these experiments to see how the physical and environmental factors of the workplace, such as lighting and break times, would affect employee motivation. “People tend to be more motivated when they felt cared about” (observer effect)
Hawthorne Studies
76
WHO: HAWTHORNE STUDIES
Elton Mayo
77
WHEN: HAWTHORNE STUDIES
1927-1932
78
WHERE: HAWTHORNE STUDIES
Western Electric Hawthorne Works company in Illinois
79
MOTIVATION THEORIES: there is a hierarchy of five needs, and as one level of need is satisfied, it will no longer be a motivator. In other words, people start at the bottom of the hierarchy and work their way up.
Maslow’s Hierarchy of Needs
80
Maslow’s hierarchy consists of
* Self-actualization needs * Esteem needs * Social needs * Safety needs * Physiological needs
81
WHEN: HIERARCHY OF NEEDS
1943
82
WHO: HIERARCHY OF NEEDS
Abraham Maslow
83
MOTIVATION THEORIES: People’s needs are grouped in three possibly overlapping categories: Existence, Relatedness, Growth.
Alderfer's ERG Theory
84
WHO: Alderfer's ERG Theory
Clayton P. Alderfer
85
ALDERFER"S ERG THEORY: desire for physiological and material well-being.
EXISTENCE
86
ALDERFER"S ERG THEORY: desire for interpersonal relationships.
RELATEDNESS
87
ALDERFER"S ERG THEORY: desire for continued growth & development.
GROWTH
88
MOTIVATION THEORIES: he developed the motivation-hygiene theory to explain the results
Herzberg Two-Factor Theory
89
In ________ Frederick Herzberg published The Motivation to Work, which described his studies to determine which aspects in a work environment caused satisfaction or dissatisfaction.
1959
90
WHO: Herzberg Two-Factor Theory
Frederick Herzberg
91
MOTIVATION THEORIES: theory gives us a starting point to understanding how management style can impact the retention of employees. His theory suggests two fundamental approaches to managing people.
McGREGOR’s Theory X and Theory Y
92
Douglas McGregor proposed the X-Y theory in his 1960 book called _________
The Human Side of Enterprise
93
WHO: McGREGOR’s Theory X and Theory Y
Douglas McGregor
94
WHEN: McGREGOR’s Theory X and Theory Y
1960
95
WHEN: CARROT AND STICK THEORY
1700s during the Seven Years’ War
96
CARROT AND STICK THEORY: rewards/incentives
CARROT
97
CARROT AND STICK THEORY: “poking and prodding” to get employees to do something
STICK
98
MOTIVATION THEORIES: People will have different characteristics dispensing on their dominant motivator. * POWER, AFFILIATION, ACHIEVEMENT
McCLELLAND’S NEEDS THEORY
99
WHO: McCLELLAND’S NEEDS THEORY
David McClelland
100
MOTIVATION THEORIES: Goal setting is essentially linked to task performance. Motivation is a goal-directed process.
GOAL SETTING THEORY OF MOTIVATION
101
WHO: GOAL SETTING THEORY OF MOTIVATION
Edwin Locke
102
5 Conditions of GOAL SETTING THEORY OF MOTIVATION
CLARITY, CHALLENGE, COMMITMENT, FEEDBACK, COMPLEXITY
103
MOTIVATION THEORIES: Individual’s behavior is a function of its consequences. You can change someone’s behaviour by using reinforcement, punishment, and extinction or the “Law of Effect”
REINFORCEMENT THEORY
104
WHO: REINFORCEMENT THEORY
B.F. Skinner
105
WHEN: REINFORCEMENT THEORY
1974
106
MOTIVATION THEORIES: Employees seek to maintain equity between the inputs that they bring to the job and the outcomes they receive from it against the perceived inputs and outcomes of others. * It is concerned with BALANCE.
EQUITY THEORY
107
WHO: EQUITY THEORY
J. Stacy Adams -behavioral and workplace Psychologist
108
WHEN: EQUITY THEORY
1960s
109
MOTIVATION THEORIES: help managers identify the factors that motivate employees ● provides insight into the sources of motivation and the relationship between effort, performance, and desired outcomes.
EXPECTANCY THEORY
110
WHO: EXPECTANCY THEORY
Victor Vroom
111
WHAT: Developed to address employee turnover, resulting in a more effective organization. E.g. Surveys/Exit Interviews
RETENTION PLAN
112
WHAT: an interview performed by HR or a manager that seeks information as to what the employee liked at the organization and what they should be improved.
EXIT INTERVIEW
113
EMPLOYEE RETENTION STRATEGIES
1. SALARIES AND BENEFITS 2. TRAINING AND DEVELOPMENT 3. PERFORMANCE APPRAISAL 4. SUCCESSION PLANNING 5. FLEXITIME, TELECOMMUTING, SABBATICALS 6. MANAGEMENT TRAINING 7. CONFLICT MANAGEMENT AND FAIRNESS 8. JOB DESIGN, JOB ENLARGEMENT AND EMPOWERMENT 9. WORK-LIFE BALANCE

1ST YEAR FINALS (4 decks)

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