Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

OB/HR > Week 4 Exam 2 > Flashcards

Week 4 Exam 2 Flashcards

1
Q

Performance Management (PM)

A

the process of ensuring that employee’s activities contribute to the organization’s goals; includes defining, monitoring, measuring, evaluating, and providing consequences for performance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

PM Steps

A
  1. define performance outcomes for the company
  2. develop employee goals to achieve outcomes
  3. provide support
  4. evaluate performance
  5. identify improvements needed
  6. provide consequences for performance results
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

PM Limitations

A

-Manager Bias
-Lack of feedback & feedback clarity
-Negative reactions
-PM not taken seriously

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

To improve PM effectiveness…

A

Organizations must create accountability, continually coach, and establish clear expectations

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

PM Purposes

A

-Strategic (link employee behavior to organization goals)
-Administrative (provide decisions about salary, bonuses, hiring, or firing)
-Developmental (basis for developing employees knowledge and skills)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

PM Benefits for Employees

A

Identifies their strengths and weaknesses and establishes a plan to develop skills

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

PM Benefits for Managers

A

Helps build strong relationships with employees

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Criteria for effective PM

A

-Fit with Strategy, Acceptability, Specific Feedback, Reliability, Validity
-Only Information, NOT an Evaluation
-Given regularly not just annually
-Links goal setting & feedback

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Reliability PM

A

consistency of the results performance measure will deliver

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Interrater reliability

A

consistency of results when more than one person measures performance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Test-Restest reliability

A

consistency of results over time

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Validity PM

A

-whether the appraisal measures all relevant aspects of performance
-minimize deficiency (information that is not gathered but is relevant) and contamination (information that is gathered but irrelevant)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Performance Evaluation Approaches

A

Making Comparisons, Rating Individuals, Measuring Results

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Making Comparisons- Performance Evaluation

A

Ex. Simple Ranking, Forced Distribution, and Paired Comparison

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Benefits of Making Comparisons

A

Counteracts leniency (rating everyone positively) and central tendency (rating everyone as average)
Easy to use
Helps make decisions about raises and layoffs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Simple Ranking

A

-Requires managers to rank employees in their group from the highest performer to the poorest performer
-Problem: Validity; best and worst do not define what is good and bad about performance nor does it provide actual feedback

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Forced Distribution

A

-Assigns a % of employees to each category in a set of categories (i.e. exceptional, above average, average, etc.)
-Problem: could be incorrect; people who are actually good may be in the lower category)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Paired-Comparison

A

-Compares each employee with another employee to establish rankings
Problem: time-consuming for a manager

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Rating Attributes- Performance Evaluation

A

-Lists traits and provides a rating scale for each trait; the employer uses a scale to indicate to which extent the employee displays each trait
-Problems: low reliability, rarely linked to the organization’s strategy, doesn’t generate feedback

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Rating Behaviors (BARS)

A

-Rates behavior in terms of a scale showing specific statements of behavior that describe different levels of performance
-Problem: can be biased, time-consuming, and costly

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Rating Behaviors (BOS)

A

-A variation of BARS that uses all behaviors necessary for effective performance to rate performance at a task; better for being objective and generating feedback, and it is easy to use
-Problem: time-consuming and requires a lot of information

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Management by Objectives (MBO): - Performance Evaluation

A

Managers and employees work together to set specific objectives that are tied to the overall business goals; these goals become the standards for evaluating each employee’s performance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Manager’s role in performance evaluation

A

-Provide frequent feedback throughout the year both formally and informally
-Take the atmosphere/context in consideration for the actual review discussion
-Encourage the individual to actively participate in the discussion, professionally
-Provide a balance of positive and constructive feedback
-Recognize mistakes but make it a learning experience; focus on solving problems for the future
-Focus the feedback on behaviors and NOT personal characteristics
-!!! Accurately rate performance/potential !!!

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Errors in Performance Measurement

A

“Similar to Me” error, Contrast error, Distributional errors, and Raters let their opinion of one quality alter their opinion of others

25
Q

“Similar to Me” error

A

You may give higher ratings to someone similar to you

26
Q

Contrast error

A

Occurs when candidates are compared to each other rather than on a standardized rating scale (i.e. NBA player sucks but only comparing to people in the NBA)

27
Q

Distributional errors

A

-Leniency (rating everyone near the top)
-Strictness (rating majority near the bottom)
-Central Tendency (put everyone near the middle of the scale)
-Makes comparisons difficult among employees rated by the same person or among different raters

28
Q

Halo effect error & Negative halo effect error

A

Halo: when the bias is in a favorable direction
Neg: when the bias is negative

29
Q

Feedback

A

information about an individual or collective performance that is shared with those in a position to improve

30
Q

Feedback functions

A

Instructional: when it clarifies roles or teaches new behavior
Motivational: when it serves as a reward or promises a reward (i.e. information that builds self-efficacy)

31
Q

Why is feedback important?

A

-It can help employees improve their performances

32
Q

“Tell-and-Sell” method

A

The manager tells employees their ratings and the manager justifies those ratings

33
Q

“Tell-and-Listen” method

A

The manager tells employees their ratings and allow the employee to explain

34
Q

“Problem-Solving” method

A

Manager and employee work together to solve performance problems

35
Q

Performance Goal vs. Learning Goal

A

PG: targets a specific end result
LG: promotes enhancing your knowledge/skill
-must focus on LG before PG

36
Q

Total Rewards

A

-The sum of all the things in the work experience that affect (or are available to) an employee
-Can be tangible (compensation) or intangible (recognition)
-Goal is to find a set of total rewards that are meaningful to the widest possible group of employees including potential ones

37
Q

Compensation

A

-Includes all forms of financial returns and tangible services and benefits employees receive as part of an employment relationship
-Related to individual motivation, engagement, and retention
-Must be aligned with the goals and strategy of the organization

38
Q

Incentive Pay

A

Forms of pay linked to an employee’s performance on all levels

39
Q

Ways to Pay for Individual Performance:

A

Piecework Rate, Standard Hour Plan, Merit Pay, Performance Bonuses, or Sales Commissions

40
Q

Piecework Rate

A

Pay based on the amount workers produce

41
Q

Straight Piecework Rates vs Differential Piecework Rates

A

-Straight: The employer pays the same rate per piece (no matter how much the worker produces)
-Differential: The piece rate is higher when a greater amount is produced

42
Q

Standard Hour Plan (include Pros/Cons)

A

Pays workers extra for work done in less than a standard time
-Pro: Encourages employees to work faster
-Con: Employees often neglect quality or customer service

43
Q

Merit Pay

A

Pay increases linked to ratings on performance appraisals, uses a merit increase grid

44
Q

Merit Pay Advantages & DIisadvantages

A

-Adv.: able to reward all aspects of employee’s performance that are measured
-Disadv.: expensive, may discourage teamwork and encourage self-centeredness

45
Q

Compa-ratio vs Group Compra-ratio

A

-CR: describes the individual’s position in the pay range against the pay policy reference point for the range (assesses the competitiveness of an employee’s pay level)
-GCR: compares the average salary of a group of employees to the average salary of other groups within the same organization or to competitors

46
Q

GCR Number…

A

-Close to 1 (the pay structure is well-planned to support the organization’s goals)
-Greater than 1 (paying more than anticipated for HR and may have difficulty keeping costs under control)
-Less than 1 (underpaying for HR relative to expectations)

47
Q

Performance Bonuses (include PRO)

A

-Not rolled into base pay, Employees must re-earn the bonus each period
-Pro: gives companies great flexibility in deciding what to reward

48
Q

Sales Commissions & examples

A

-Incentive pay is calculated as a percentage of sales
-Ex.:Straight commission plan (no base salary), Straight salary (no commission), Commission “in addition to” a base salary

49
Q

Ways to Pay for Group Performance:

A

Gainsharing, Group Bonuses, and Team Awards

50
Q

Gainsharing (include advantages)

A

-Measures increases in productivity and effectiveness and distributes a portion of each gain to all employees in a unity (group)
-Adv.: addresses the challenge of identifying appropriate performance measures, frees employees to determine how to improve their group’s performance

51
Q

Group Bonuses

A

Reward members of a group for achieving a specific goal; can create competition between groups

52
Q

Team Awards

A

Similar to group bonuses but more likely to use recognition as the “payment”

53
Q

Ways to Pay for Organization Performannce

A

Profit Sharing & Stock Options

54
Q

Profit Sharing

A

-Incentive pay in which payments are a percentage of the organization’s profits and do not become part of the employee’s base salary
-Pros: encourages employees to think like owners and make the organization more successful

55
Q

Stock Options

A

-Rights to buy a certain number of shares of stock at a specified price
-Pro: a sense of ownership in the company

56
Q

Employee Stock Ownership Plans (ESOPs)

A

-the organization distributes shares of stock to all its employees by placing it in a trust, employees get updates on the value of their stocks and can sell the stocks when they leave the organization

57
Q

Mandatory Benefits

A

Social Security, Unemployment, Worker’s Comp, FMLA, and Healthcare

58
Q

Retirement- Defined Benefit

A

You get paid a certain amount of money per year (i.e. pensions)

59
Q

Retirement- Defined Contribution

A

You put in a certain amount from each paycheck, the money gets invested in some way, its tax free until you withdraw it

OB/HR (14 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions