Study Guide Flashcards
1
Q
Davis Bacon Act
A
Contractors/subcontractors have to pay prevailing wages to their laborers/mechanics
2
Q
Consumer Credit Protection Act (1968)
A
Applies to companies with at least 1 employee
Limits the amount of wages that can be garnished
Creditors can only garnish 25% of disposable wages
Child support up to 50% with dependents 60% without
Student loans up to 15%
Back taxes - employer pays minimum, rest to taxes
Employers cannot retaliate unless you have more than 1 garnishment
Protections decrease once you have 2 or more garnishments
3
Q
Employee Retirement Income Security Act
A
Protects employees covered by a pension plan from losses in benefits due to job changes, plant closings, bankruptcies, or mismanagement
4
Q
Health Insurance Portability and Accountability Act
A
Individuals who leave/lose their jobs can obtain health coverage even if they or someone in their family has a serious illness/injury or is pregnant
Provides privacy requirements related to medical records
Limits exclusions for preexisting conditions and guarantees renewability of health coverage to employers and employees
5
Q
Fair Labor Standards Act
A
Mainly related to how people are paid (min wage/overtime)
Helps determine whether a job is exempt or nonexempt from overtime pay
Requires employers to keep a record of employee information
How much they are paid, as well as basic identifying information
Overtime calculation (1.5x normal pay rate, for all hours worked over 40)
6
Q
Five main types of exempt status under FLSA
A
Executive
Administrative
Professional
Computer Systems
Outside Sales
7
Q
What three standards must an exempt employee meet under FLSA?
A
Minimum salary
Paid on a salary basis without improper deductions
Perform exempt duties
8
Q
What is a primary duty according to FLSA
A
A primary duty is the main or most important duty and is an important part of exemption. Employees who spend more than 50% of their time performing a specific duty will generally satisfy the primary duty requirement
9
Q
Executive Exemption
A
Have a primary duty of managing an enterprise, department, or subdivision
Have the authority of the employer to hire and fire
Direct the work of at least two full-time employees or their equivalent
Affect promotion decisions
10
Q
Administrative Exemption
A
Requires performance of office or non-manual work directly related to the management or general business operations of the employer or the employer’s customers
Includes the exercise of discretion and independent judgement related to “matters of significance”
11
Q
Professional Exemptions
A
Learned Professionals
Requires advanced knowledge in a field of science or learning that
is acquired by prolonged instruction
Work is intellectual in nature and requires exercise of discretion and judgement
Creative Professionals
Must meet minimum salary requirements
Perform work that requires invention, imagination, originality or talent Perform in a recognized field of creative or artistic endeavor
12
Q
Highly Compensated Exemption
A
Make an annual salary of $100k or more that includes at least $455 per week paid on a salary or fee basis
Perform one of the duties of an exempt executive, administrative, or professional employee
13
Q
Computer Employees Exemption
A
Must meet the salary minimum
Employee’s pay cannot be subject to deductions inconsistent with the salary basis requirement
Primary duties must fall into on of four categories
Application of systems analysis techniques and procedures
Design, development, documentation, etc of computer systems Design, documentation, testing of computer programs related to machine operating systems A combination of these duties
14
Q
Outside Sales Exemption
A
Have a primary duty involving making sales or obtaining orders and contracts
Be customarily and regularly engaged away from the employer’s place of business
Outside sales employees are not subject to the minimum salary requirements of other exemptions
15
Q
Safe Harbor
A
A safe harbor provision prevents an employer from losing an overtime exemption for improper pay deductions - regardless of the reason for the improper deductions where:
The employer has a clearly communicated policy prohibiting improper pay deductions
Employees are reimbursed for any improper deductions
The company makes a good-faith effort to comply in the future
16
Q
Compensatory Time
A
Overtime usually must e paid in cash
Public sector employers may grant compensatory time off
Does not apply to nonexempt private sector employees
Public employees can accumulate comp time
17
Q
Labor Management Relations Act (LMRA)
A
AKA Taft Hartley Act
Helps employers
Prohibits unfair labor practices by unions and outlaws closed shops, where union membership is required in order to get and keep a job
18
Q
National Labor Relations Act (NLRA)
A
AKA Wagner Act
Helps unions
Provides employees the right to form unions and negotiate wage and hour issues with employers
Grants employees the right to organize, join unions, and engage in collective bargaining and other concerted activities
Protects against unfair labor practices by employers
19
Q
Landrum-Griffin Act
A
Helps employees in unions
Protects the rights of union members from corrupt or discriminatory labor unions, and applies to all labor organizations
Taft-Hartley and Landrum Griffin both aim to protect individuals from unions
20
Q
Norris-LaGuardia Act
A
Prohibits yellow-dog contracts
Agreements where employees promise employers that they would not join unions
21
Q
Sherman Anti-Trust Act
A
Prohibits attempts to restrict competition or fix prices
Prohibits restraint of trade
22
Q
Wagner-Peyser Act
A
Assists the unemployed
Provides job seekers with assistance in their job search, and recruitment services for employers
23
Q
Americans with Disabilities Act
A
15 or more employees
Employers are required to provide job accommodations for qualified individuals
Job accommodations: If there is no request for accommodation, no action is required by the employer
Prohibits employers from inviting job applicants to identify their disability status prior to receiving a job offer
An employer is not required to make an accommodation if it would impose an undue hardship on the operation of the employer’s business.
24
Q
Civil Rights Act (Title VII)
A
Relates to employment discrimination and cites six protected classes (race, color, religion, national origin, sex, sexual orientation/gender identity)
25
Drug Free Workplace Act
Only applies to federal contractors and all organizations receiving grants from the federal government.
What is through the Drug-Free Workplace Act?
Under the Drug-Free Workplace Act of 1988, federal workplaces and non-federal workplaces with a federal contract of $100,000 or more or a federal grant in any amount must implement a Drug-Free Workplace Program, which includes drug testing requirements.
26
Genetic Information Nondiscrimination Act
Prohibits employers from using genetic information to make employment decisions.
27
Lilly Ledbetter Fair Pay Act
Clock will begin running anew each time an illegal act of discrimination is experienced by an employee
Statute of limitations for filing an equal pay lawsuit prior to the LLFPA was 180 days
New statute of limitations for filing a claim under the Fair Pay Act with the EEOC is two years from the time the discriminatory paycheck was received
28
Age Discrimination in Employment Act (ADEA)
Prohibits discrimination for employees 40 years old or older
29
COBRA
Requires employers to offer terminating employees the opportunity to continue their health plan coverage after they leave the company or no longer qualify for benefits
Update general and qualifying event notices
Provide notice within 90 days of employee leaving
Establish reasonable notification procedures and communicate them to alle employees
Provide a notice of unavailability to continuation of coverage within 14 days of the date you are informed of the qualifying event
Notify individuals whose coverage ends before the maximum continuous coverage period allowed
30
Affirmative Action
Federal contractors are required to have an AA program
Equal employment opportunities and establish outreach programs for minorities and women
31
Family Medical Leave Act
50 or more employees
Applies to all public schools and agencies, regardless of size
Provides leaves lasting up to 12 weeks in a 12-month period
To qualify, employees must have been employed for at least 12 months, and have at least 1250 hours of service during the 12-month period
Covers childbirth/adoption, care for illchild/spouse/parent, care for employee's own serious illness
Employee is guaranteed return to work on the same job, same pay, under the same conditions as prior to the leave of absence
32
Affordable Care Act
Employers must provide full-time employees with iminimum health insurance coverage
Employers with fewer than 25 employees will receive a tax credit if they provide health insurance to their workers
33
Worker Adjustment and Retraining Notification (WARN)
100 or more full time employees at a single facility
Mass layoff - at least 500 employees laid off from workforce of 500 or more; or when at least 33 percent of the workforce are going to be laid off where there is a total of 50 to 499 workers before the layoff
Requires 60 days advance notice to employees of plant closing or mass layoffs (any employment loss of 50 or more people, excluding part time workers, is considered a trigger event to activate the requirements)
34
Systems Theory
Systems theory is widely applied in organizational development interventions and is essential to the quality movement. A system ios composed of interacting parts that work together to achieve an objective. A system is intended to absorb inputs, process them, and produce outputs.
35
Eli Goldratt's Theory of Constraints
Focused on identifying constraints and eliminating them, thus resulting in continuous improvement
Every organization faces constraints
The greatest constraints come from policies and not from physical entities such as resources or materials
TOC uses five steps to concentrate improvement effects on the components most capable of producing the most positive impact on a system
36
Six Sigma
Data-driven methodology for eliminating defects
A process must not produce more than 3.4 defects per million opportunities
37
Total Quality Management (TQM)
TQM is a strategic management system for achieving customer satisfaction that involves all managers and employees, and uses quantitative methods to continuously improve an organization's processes
Key word is continuous improvement. It highlights the importance of organizational learning
38
Gantt Chart
A Gantt chart is a graphical depiction of a project schedule. it's a type of bar chart that shows the start and finish dates of several elements of a proejc that includes resources, milestones, tasks, and dependencies. Mainly used in project management.
39
Pert Chart
A PERT chart is a project management tool that provides a graphical representation of a proejct's timeline. It is a visual representation of a series of events that must occur within a project's timeline.
It uses circles or rectangles called nodes to represent project events or milestones. These nodes are linked by vectors or lines that represent various tasks.
A PERT chart allows managers to evaluate the time and resources necessary to manage a project
The use of a PERT chart is highly subjective, and its success depends on the management's experience. These charts can include unreliable data or unreasonable estimations for cost or time for this reasons.
Considered preferable to Gantt charts, because they identify task dependencies.
40
PESTLE Analysis
Method of environmental scanning - used to gather data typically before conducting a business venture such as opening another branch
Political
Economic
Social
Technological
Legal
Environmental
41
SWOT Analysis
Strengths (internal)
Weaknesses (internal)
Opportunities (external)
Threats (external)
42
Job Description
A series of statements describing the role, responsibility, duties, and scope of a particular job
Summarizes the most important features of a job
Describes the work that details the required tasks, KSA, responsibilities, and reporting structure
Include the physical requirements of the job for ADA considerations
Include duties that support exempt status
43
Job Analysis
Determining the level of responsibility embedded in the job and how it impacts the overall organization
44
Job Analysis Methods
Observation: Works best for short-cycle jobs in production
Interview: Good for professional jobs
Open-ended questionnaire: Good when a large number of jobs must be analyzed and there are insufficient resources to do it.
Highly-structured questionnaire: Defines job with a relatively objective approach, which also enables analysis to be performed using computer models.
45
Essential Job Functions
Fundamental job-related duties necessary to the position
Essential functions are distinguished from nonessential or marginal functions that are part of the job but are incidental to the purpose and nature of the job
46
Job Analysis Outcomes
Job Description: Written description and job requirements (title and duties)
Job specification: Written statements of the necessary job qualifications (education and experience)
47
Job Evaluation
A systemic determination of the relative worth of jobs within the organization and is concerned with the value of a job to the organization. The process establishes a relative worth of jobs by establishing a hierarchy of jobs
Follows job analysis, which focuses on job description and specification
Supports the need for the total rewards system to further the organization's strategic objectives and is intertwined with the organizatoin's concern for pay equity
48
Job Competencies
These represent the KSAs and personal characteristics that work together to produce outstanding performance, they are the critical success factors needed to perform in a job or functional area.
49
Staffing
Identifies human capital needs
Provides qualified individuals for jobs in the organization
50
Workforce Planning
Organization analyses its workforce and prepares for future needs
Forecasts future conditions and identifies gaps between current and future staff
51
Staffing Needs Analysis Process
Supply Analysis
Demand Analysis
Budget Analysis
Strategic Analysis
52
Trend and Ratio Analysis
The use of statistics to determine whether relationships exist between two variables
53
Trend Analysis
Plots the number fo employees for the last six years and projects the trend out for two more years.
54
Organizational Approach to International Business
Ethnocentric
Poly centric
Regio-centric
Geocentric
55
Ethnocentric
Headquarters maintains tight control over international operations
56
Polycentric
Each international operation is treated as a distinct national entity
57
Regio-centric
Operations are managed regionally
58
Geocentric
Organization is viewed as a single international business rather than a collection of individual headquarters-country and international operations
59
Reliability
Ability of an instrument to measure with a high degree of consistency
60
Validity
Degree to which inferences made from tests are correct and accurate
61
Content validity
Degree to which a test measures KSAs that are part of the job
Least sophisticated type of validity to assess
Used primarily to evaluate job knowledge and skill
Not appropriate for evaluating the ability to learn new skills
62
Construct Validity
Degree to which a selection device measures a theoretical construct or trait. Typical constructs are intelligence, mechanical comprehensions, or personality traits.
63
Criterion-related validity
Correlation of test results to job performance
64
Concurrent Validity
Test employees on a key attribute -> measures employee’s job performance ->then correlate the two things
65
Predictive Validity
Measure all applicants on attribute —> Hire and wait for some period —> Measure performance of newly hired employees
66
Halo effect
When an employee is extremely competent in one area and therefore is rated high in all categories
67
Horn effect
When one weakness results in an overall low rating
68
Recency
Occurs when an appraiser gives more weight to recent occurrences and discounts the employee’s earlier performance
69
Primacy
Occurs when an appraiser gives more weight to the employee’s earlier performance and discounts recent occurrences
70
Strictness
When appraisers believe that standards are too low and they inflate the standards in an effort to make the standards more meaningful in their eyes.
71
Cost Leadership Strategy
Used to increase efficiencies and reduce production costs below the industry average or their closest competitor. To have the lowest priced goods
72
Unit Labor Cost
Average cost of workers divided by their average levels of output
Used to measure the average cost of labor per unit of output
73
Fill Rate
The decision rule for which proportion of openings in a particular job will be covered by internal promotions versus new hires
74
Hofstede’s Cultural Dimensions
Power Distance
Collectivism vs Individualism
Uncertainty avoidance index
Femininity vs. masculinity
Short-term vs long-term orientation
Restraint vs indulgence
75
Power Distance
The extent to which inequality and power are tolerated
High power distance: China
Low Power distance: Indicates that a culture encourages organizational structures that are flat, decentralized decision-making responsibility, and places emphasis on power distribution (US, UK)
76
Individualism vs. Collectivism
The degree to which societies are integrated into groups
77
Uncertainty Avoidance Index
The extent to which uncertainty and ambiguity are tolerated
High uncertainty avoidance index indicates a low tolerance for uncertainty, ambiguity, and risk-taking
78
Masculinity vs. Femininity
Considers the preference of society for achievement, attitude towards sexuality equality, behavior, etc.
79
Long-term vs Short-term
The extent to how a society views its time horizon
Long-term focuses on the future and involves delaying short-term success or gratification in order to achieve long-term success. Emphasis on persistence, perseverance, and long-term growth
Short-term focuses on the near future, involves delivering short term success or gratification and places a stronger emphasis on the present that the future
80
Indulgence vs. Restraint
The extent and tendency for a society to fulfill its desires
81
Balanced Scorecard
The balanced scorecard is a management system. It is a way of looking at an organization that focuses on big-picture strategic goals
Consists of: Financial, learning and growth, customers, and internal business processes
Aligns business function measures with organization strategies
82
Learning and Growth On Balanced Scorecard
Looks at overall corporate culture. Is it easy for employees to collaborate and share knowledge? Does everyone have access to training opportunities?
83
Internal Business Processes on balanced scorecard
About how smoothly the business is running. About reducing waste, speeding things up, doing more with less. Are you providing with what they actually want? What should you be best at?
84
Customer on balanced scorecard
Focuses on the people who buy the products
Are you winning new business
How are you viewed in your industry compared to competitors?
85
Financial on balanced scorecard
The majority focus of the balanced scorecard.
How do you look to shareholders?
Is the business making money?
How is the financial health of the company
86
Steps to creating a balanced scorecard
Plan the process
Design the scorecard
Employ and refine measures
87
Planning step of creating a balanced scorecard
Confirm the scope of the project and establish a project timeline
Outline a project communication approach
Determine organizational participation
Confirm expected project deliverables
88
Designing step of creating a balanced scorecard
Focus on specific measures that support business strategy
Identify critical success factors for implementation
Develop an action plan to support implementation
Collect and prepare data
89
Employees and Refine step of creating a balanced scorecard
Employ scorecard
Monitor performance gaps
Refine measures of scorecard
Identify implementation issues
90
Attrition:
Refers to the phenomenon of employees leaving the company
It is the normal life cycle fo employment
Employees are not leaving because they have a problem with the company, it is a matter of life unfolding
Attrition is higher in companies located in transient cities and in organizations that hire older employees as a matter of practice
91
Turnover
Applies to employees who leave the company due to termination, taking a better job, or because they felt there was no room for growth. A high turnover rate typically. Means working conditions are not optimal, pay is below market average, or staffers are not well rained.
92
Layoffs
Can be a temporary cessation of employment usually initiated because the company is having financial problems
93
Termination
A permanent end to employment that can happen for any reason usually through poor performance or policy violations
94
Organizational Commitment
The bond employees experience with their organization.
Broadly speaking, employees who are committed to their organization generally feel a connection with their organization, feel that they fit in, and feel they understand the goals of the organization
95
Maslow’s Hierarchy of Needs
Physiological
Security
Social
Esteem
Self-Actualization
96
Herzberg’s Two-factor theory
Unacceptable conditions in regards to hygiene factors will lead to job dissatisfaction. Posits that employee satisfaction is achieved mainly through changes in job content.
Consists of extrinsic hygiene factors, and intrinsic motivation factors
Acceptable hygiene conditions will lead only to a state of satisfaction; they do not motivate, they only satisfy
Hygiene levels must be acceptable in order for the motivation factors to become operative
97
McClelland’s theory
Based on studies showing that some people have an intense need to achieve while others do not. His work identifies the characteristics of people with high needs of achievement.
Set moderately difficult but potentially achievable goals
Prefer to work on a problem rather than leave the outcome to chance
Seem to be more concerned with personal achievement than with the rewards of success
Seek situations in which they get concrete feedback on how well they are doing with regards to their work
98
McGregor’s Theory X and Theory Y
Represents two types of management styles
Theory X managers believe that people inherently dislike work and will try to avoid it - authoritative style of management
Theory Y managers believe that employees dislike rigid controls and inherently want to accomplish something - participative style of management
99
Vroom’s expectancy theory
Basically people will be motivated to exert effort towards a goal if they believe that there is a favorable outcome
100
Three parts of Vroom’s expectancy theory
Expectancy - a person’s belief that a chance exists that a certain effort will lead to a. Particular level of performance, which, in turn, will lead to certain outcomes
Instrumentality - a person’s belief that a specific action leads to a specific outcome
Valence - the strength of an individual’s desire for a particular outcome
101
Leadership
Requires alignment to the organizations vision and mission
Leaders influence others toward the achievement of goals, act as change agents, serve by example, and develop other leaders
Produces useful change
By itself never keeps an operation on time and on budget year after year
Establishes direction
Aligns people
Motivates and inspires
102
Management
Can create orderly results that keep something working efficiently
By itself never creates significant, useful change
Planning, budgeting, organizing, staffing, controlling and problem solving
Is about coping with day-to-day operations
Brings order and consistency to the organization
Establishes systems and structures that get results
103
Obstacles to leadership development
Slowly developing crises
Suppressive effects of large and complex organizations
Prestige of specialist professional training
Educational system rewards that value individual performance over teamwork
Negative publicity often associated with high visibility
104
Trait theories of leadership
Early approaches focused on the qualities of leaders and held that leaders were born not made
The great person theory of leadership
Fiver personal trains of effective leaders
Intelligence
Dominance
Self-confidence
High levels of energy and activity
Task-relevant knowledge
105
Behavioral dimensions of leadership
The concept that how a person behaves determines that person’s leadership effectiveness
106
Consideration
Employee centered
Behavior aimed at meeting the social and emotional needs of groups and individuals
Helping group members and explaining decisions
107
Initiating Structure
Job centered
Behavior aimed at careful supervision of work methods and performance levels
Clarifying roles and setting goals
108
Blake Mouton’s Theory
Behavioral
Authoritarian managers: high production, low people
Task oriented, very strong on schedules
Tend not to foster collaboration
Team leaders: high production, high people
Lead by positive example, fosters a team environment
Encourages individual and team development
Country Club Managers: low production, high people
Use rewards to encourage team members
Tend to avoid punitive actions
Impoverished managers: low production, low people
Delegate and disappear management style
Detach themselves, often creating power struggles
109
Situational Leadership
Emphasizes that leadership style should vary according to the situation or the employees involved
110
What are the two components of situational leadership?
Task behavior - refers to the extent to which leaders are likely to organize and define the roles and activities of members of the group
Relationship behavior 0 refers to the extent to which leaders are likely to maintain personal relationships with members of the group
111
Hersey-Blanchard’s theory
Situational
The Hersey-Blanchard theory is distinctive because it does not depict an ideal mode of behavior that is appropriate for all situations. It suggests that leadership style should be matched to the maturity of the employee
Directive or Supportive
112
What are the four leadership tasks of the Hersey Blanchard theory
Delegating - high competence, high commitment
Supporting - High competence low commitment
Coaching - low competence, low commitment
Directing - low competence high Commitment
113
Fiedler’s Contingency Theory
Situational
States that group performance is dependent upon the interaction between leadership style and situational favorableness
114
What determines success in fiedler’s contingency theory
Laedership-member relations: The degree of trust that followers have in their leaders
Task structure: The extent to which tasks are defined
Position Power: The degree of power and influence ea leader has over subordinates
115
Transactional leadership
Offers the promise of reward or threat of discipline, depending upon followers’ performance of measurable tasks
Looks for deviation from rules
Intervenes when standards are not met
Abdicates responsibility and avoids making decisions
116
Transformational leadership
Inspires and simulates followers to join together in a mutually satisfying achievement of genuine consequence
Provides vision and sense of mission
Communicates high expectations
Promotes intelligence and problem solving
Gives personal attention and coaches
117
Performance management
The process of maintaining or improving employee job performance through the use of performance assessment tools, coaching, and counseling as well as providing continuous feedback
The performance review process is the opportunity for the employee and the manager to discuss development goals and jointly create a plan for achieving those goals
118
Performance Management Standards
In setting and communicating performance standards, the HR professional needs to consider:
Behaviors - what does the organization want the employees to do?
Results - what does the organization want the employees to produce.
119
Skinner’s behavioral reinforcement therapy
Positive reinforcement
Negative reinforcement
Punishment
Extinction
120
Positive reinforcement
Person repeated desired behaviors to gain a reward
121
Negative reinforcement
Person works to avoid an undesirable result
122
Punishment
Response causes something negative to occure
123
Extinction
Unlearning a response because of a change in consequences
124
Indidividual performance appraisals
Observe employees performing the job
Identify and record strengths and areas for improvement
Rate employee on progress towards previously stated objectives
Provide reinforcing and corrective feedback on employee performance
Set goals on performance improvement
125
Management by Objectives
Employees help set their objectives defining what they intend to achieve. Objectives are based on the overall organizational goals.
126
Behaviorally anchored rating scale
Designed to combat the problems of category ratings by describing examples of desirable and undesirable behavior.
Examples are then measured against a scale of performance levels
Works best when many employees are performing the same task.
Requires extensive time and energy to develop and maintain
127
Legal performance appraisals
Performance appraisal methods must be:
Valid and free from discrimination
Based on formal evaluation criteria
Based on personal knowledge and interaction with employees
Designed to prevent one manager from influence an employee’s career
Based on equitable treatment of all employees
128
Appraisal feedback guidelines
Describe the behavior, don’t judge it
Assume an attitude of helpfulness
Empathize and listen actively
Give specific examples
129
Documentation guidelines for appraisals
Document as situations happen
Keep notes on all employees, not just a few
Use objective criteria
Support job-related observations with facts, but avoid conclusions
Focus on deficiencies, not causes
Remember that others will read your document
130
Job rotation
The movement between different jobs
131
Job enlargement
Occurs when the employee is doing different tasks within the same job. Adding more tasks give employees a variety of responsibilities that require the same level of skill
132
Job enrichment
Increases the depth of a job by adding responsibilities such as planning, organizing, controlling, and evaluations.
133
Dual Ladder Program
Identify meaningful career paths for people who are not interested in traditional management roles
Technical experts may or may not be well-suited for future management and executive leadership roles
The employee can earn as much as they would in a management position
134
Succession and Replacement Planning
Succession planning is a talent management strategy to help identify and foster the development of high-potential employees. This activity identifies employees who may be considered ready for future higher-level positions as they become available
135
Objectives of a Total Rewards System
Aligned with mission and strategy
Compatible with corporate culture
Appropriate for the workplace
Externally equitable
Internally equitable
Effective in recruiting and retaining employees
136
Entitlement-oriented compensation systems
Believes that employees are entitled to benefits such as healthcare as a condition of employment. There is less emphasis on employee contributions, initiative, and responsibility and more emphasis on the profitability of the organization as a whole.
137
Contribution-oriented compensation systems
Sees the employees as contributors. Compensation programs are more performance driven. Emphasis on performance-based pay, incentives, and shared responsibility for benefits
138
External equity
Compares an organization to other organizations that share its industry, occupation, and location. Defines a company’s relevant labor market.
Organization’s may decide to lag, match, or lead the market.
139
Internal Equity
The perception that jobs within an organization are appropriately compensated.
Means that unique jobs are appropriately compensated by the organization as performance or job differences result in corresponding differences in pay rates
140
Function Organizational Structure
Traditional structure, includes divisions based upon specialty
Forms the well-known hierarchy of senior management, marketing, finance, HR, and operations
Centralized structure
Specialist staff, standardization, greater economies of scale
Lacks variety and job enrichment, greater bureaucracy
Each specialist group answers to top management.
141
Divisional Organizational Structure
This structure groups individuals based on the products or projects they are undertaking
At the top is the CEO, and after them is a hybrid of functional grouping: public relations, legal, finance, global research, business development, and HR
Decentralized structure
Senior management time freed up motivation through greater decision powers
Lack of specialization, extra processing
This style blends the expertise of many different skill sets
142
Organizational Development
This is the process used to enhance the effectiveness of an organization and the well-being of its members through planned interventions.
OD initiatives occur on both a large and small scale
Goals are to improve productivity, employee satisfaction, the organization's ability to revitalize and develop itself over time, and the organizational processes and outputs
143
OD Change Management Initiatives
Focus on changing the entire system
Link to the organization's strategic plan
Use applied behavioral science
Help organizations solve their own problems
The whole system must change, not just a few components of the system
144
OD Interventions
OD interventions are appropriate when an organization:
Experiences an M&A that introduces a culture that is not compatible
Experiences low trust, high turnover, or high stress
Lacks the ability to manage conflict
145
Organizational Development Intervention Process
Diagnose the environment
Develop an action plan
Evaluate the results
HR Roles: Change agent, evaluator
146
Sensitivity Training
is a form of training with the goal of making people more aware of their own goals as well as their prejudices, and more sensitive to others and to the dynamics of group interaction.
Has been criticized for the emotional stress it creates for some participants
147
Organizational Citizenship
Discretionary behavior that is not part of an employee's formal job requirements, but that promotes the effective functioning of the organization.
148
