Test Flashcards
Merit pay
Increases in base pay to how highly employees are rated on performance evaluation
Merit bonuses
Differ from merit pay in that employees receive an end of year bonus that does not build Into base pay
Spot awards
Are given for exceptional performance often on Special projects or for performance exceeding expectation
Individual incentive plans
Offer a promise of pay for some objective or pre established level of performance
group incentive plans
The established standard measures team performance to determine the magnitude of the incentive pay
Scanlon plan
Incentives derived as a function of the ratio between labor costs and scales value of production (svop)
Rucker plan
A ratio is calculated expressing the value of production required for each dollar of the total wage bill
The incentives to a variety of savings
Mornelinkable with individual incentive plans
Improshare
Improved productivity through sharing, is easier to administer and to communicate
Earnings at risk
Designed to enhance performance in part by creating base wage dissatisfaction that in Tun triggers greater efforts directed toward performance behaviors rewarded with incentive pay
Success sharing: employee base wages are constant and variable pay adds on a predetermined amount in successful years
If the company does poorly
Long term incentives
Focus on performance beyond one year
Broad based option plans
Stock grants with a firm giving employees shares of stock over a designated time period
Self funding plan
Triggers specific payouts only after the company reaches a certain profit target
Criterion deficient
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Ranking formats
Rater compares employees determining the relative ordering of the group on some performance measure
Alternation ranking
Rater start with the best and worst employee
Paired comparison ranking
Compares each individual to all others
The standard rating scale
Uses adjectives to anchor the continuum
Behaviorally anchored rating scales
BARS are the most common format when behaviors are anchors. Firms home bars format makes evaluations less subjective …eaters calculate performance as a weighted average
Management by objectives
MBO when outcomes are the standard … each level has objectives which support organizational goals , performance rating depends o. How well objectives were met
360 degree feedback
Rare in appraisals or pay decisions
Criterion contamination
Occurs in every company and every job . Eaters are influenced by appearance, sex, race
Rater error training
Reduces psychometric errors by familiarizing eaters with their existence
Performance dimension training
Exposes supervisors to the performance dimensions used in the ratings
Performance standard training
Provides a standard of comparison or crime of reference for making appraisals
