Managing HR Flashcards
Employee seperation
the termination of an employee’s membership in an organisation
turnover rate
the rate one employee separations in an organisation
Voluntary x external
quit
voluntary internal
voluntary transfer
involuntary external
termination
involuntary internal
mandatory transfer
Benefits of employee separation
reduced labour cost
replacement of poor performers
increased innovation
opportunity for greater diversity
Discharges
takes place when management decides that there is a poor fit between an employee and the organisation
downsizing
A company’s strategy to reduce the scale and scope of its business in order to improve the company’s financial performance
rightsizing
the process of reorganising a company’s employees to improve their efficiency
Attrition
not refilling job vacancies that are created by turnover
Hiring freeze
not hiring any new employees into the ocmpany
WARN worker adjustment and retraining notification act
a fever law requiring u.s. employers with 100 or more employees to give 60 day’s advance notice to employees who will be laid off as a result of a plan
most important criteria for layoffs (2)
- seniority
2. employee performance
outplacement
an hr program created to help separated employees deal with the emotional stress and finding a new job
-> emotional support, job search support
Performance appraisal
the identification, measurement and managing of human performance in organizations.
2 ways to classify appraisal formats
- relative judgements
2. absolute judgement
relative judgement
ask a supervisor to compare an employee’s performance to the performance of other employees
absolute judgement
formats ask supervisors to make judgments about an employee’s performance based on the standards
Trait appraisal instrument
an appraisal tool that asks a supervisor to make judgments about worker characteristics
trait based scales are: decisiveness, reliability, energy and loyalty
behavioural appraisal instrument
focus on assessing a worker’s behaviour
Outcome appraisal instrument
to assess the results achieved by workers
self review
workers rate themselves
peer review
workers at the same level of the organisation rate one another
subordinate review
workers rate their supervisors
360 feedback
a combination of peer, subordinate, and self review§
(challenges to effective performance management) rate error
- a supervisor may make an overall judgment about a worker and then conform all dimensional ratings to that judgment
- a supervisor may make all ratings consistent with the worker’s performance level on a dimension that is important to the supervisor
(challenges to effective performance management) Restricition of errors
when a manager restricts all of his ratings to a smal portion of the reading scale
3 range restricitons
- Leniency error
high portion of the scale - central tendency error
using only the middle points of the scale - severity error
only the low portion of the scale
(challenges to effective performance management) influence of liking
when raters allow their like or dislike of an individual to influence their assessment
(challenges to effective performance management) whether to focus on the individual or group
- individual contribution to team performance
2. the performance of the team as a unit
(challenges to effective performance management) legal issues
must be free from discrimination
(challenges to effective performance management) legal issues
must be free from discrimination
Total compensation includes 3 components
base compensation, pay incentive and indirect compensations
base compensation
the fixed pay an employee receives on a regular basis, either in a form of salary or as an hourly wage
pay incentive
program designed to reward employees for good performance
indirect compensation/benefits
E.G. health insurance, vacations and unemployment compansation
performance-contingent compensation
traditional piece-rate plans, pay based on units
membership-contingent compensation
provide the same similar wage to every employee in a given job
egalitarian pay system
a pay plan in which most employees are part of the same compensation system
elitist pay system
a pay plan in which different compensation systems are established for employees or groups at different organisational levels
keys steps in creating a job-based compensation plan
1: achieving internal equity
2. achieving external equity
3. achieving individual equity
- Achieving internal equity
step 1. conduct job analysis step 2. write job descriptions step 3. determine job specifications step 4. rate worth of all jobs using a predetermined system step 5. create job hierarchy step 6. classify jobs by grade level
- achieving external equity
step 1. identify jobs that are similar and check salary surveys to determine how much these jobs are worth to other employees
step 2. establish pay policy
- achieving individual equity
assign each employee a pay rate within the range established for his or her job.
use previous experience, seniority and performance appraisal
skills based pay
uses skills as the basis of pay
depth skills
when they learn more about a specialised area or become expert in a given field.
horizontal/breath skills
when they learn more and more jobs or tasks within the firm
vertical skills
when they acquire ‘self management’ abilities such as scheduling, coordinating, training and leadership
exempt employees
an employee who is not covered by the provisions of the fair labour standards
nonexempt employees
an employee who is covered by the provisions of the fair labour standard acts.
there are 3 different employee rights
- statutory rights
- contractual rights
- other rights
Statutory rights
a right protected by specific laws
protection from discrimination based on race, sex, religion, national origin, age, handicap etc.
contractual rights
a right based on the law of contracts
contract
a legally binding promise between two or more competent parties
other rights
- right to ethical treatment
- limited right to privacy
- limited right to free speech
employment at will
a common-law rule used by employers to assert their right to and an employment relationship with an employee at any time for any cause
Legal limitations to employment at will
- public policy exceptions
an employee can’t be discharged for engaging in activities protected by law - implied contracts
when an employer makes oral or written promises of job security - lack of good faith an fair dealing
that courts expect that each party in the employment relationship treats the other in good faith
(challenges of employee rights) random drug testing
drug testing can be seen as a violation of the privacy of employees
therefore often used: the performance tests
computer-based performance tests that test workers coordination to measure their ability to do their jobs
(challenges to effective performance management) electronic monitoring
electronic surveillance devices to monitor employees (because there is a lot of theft)
(challenges to effective performance management) whistle blowing
A whistle-blower is an employee of your organization who reports another employee for something that is believed to be wrong, dishonest or illegal
(challenges to effective performance management) restrictions on moonlighting
holding a second job outside normal working hours
(challenges to effective performance management) restriction of office romance
no dating policies
progressive discipline
a series of management interventions that gives employees the opportunities to correct undesirable behaviours before being discharged
step 1. verbal warning
step 2. written warning
step 3. suspension
step 4. discharge
positive discipline
step 1: session that ends with a verbal solution that is acceptable for both parties
step 2. they meet again to discuss why it failed and to develop a new plan. this plan is written down this time
step 3. warning that the employee is at risk of being discharged with pay
step 4. failure to improve performance after the final warning results in discharge.
incompetent employee
someone who is lacking ability, not effort
probationary employment period
a period of time that allows the employer to discharge any employee at will.
insubordination
either refusal to obey a direct order from a supervisor or verbal abuse of a supervisor
against workplace bullying hr should 3x
promote zero tolerance
value statements
screen job candidates
