Weeks 9 & 10 Flashcards

1
Q

Performance Management Feedback Should Have

A

1) No Surprises
2) be done in a TIMELY manner
3) focus on the Individual’s development and goals in
line with the organizations goals

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2
Q

What is the TOP of Performance Mgmt?

A

Organizational Strategy, Organizational Goals,

Sr. Leadership Accountability

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3
Q

Defining Performance Expectations is the FIRST step in the Performance MGMT process. This includes 2 things

A

1) Individual Goal Setting

2) Competencies Review

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4
Q

Step _ in Performance MGMT is Providing Ongoing Feedback and Coaching

A

This is Step 2.

After Performance Expectations

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5
Q

Step 3 is Performance Review Discussions this includes

A

1) Documenting the progress of goals and competencies as well as development plans
2) Crowdsourcing

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6
Q

Performance Review Discussions lead to these discussions on these outcomes

A

1) Compensation and Rewards
2) Learning & Career Development
3) Promotions, Decisions and Succession Planning
4) Disciplinary or Termination Decisions

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7
Q

Crowd sourcing is

A

getting information from a large group of people / multiple sources

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8
Q

Appraisal Method:

The MOST COMMON form of rating performance is:

A

The Graphic Rating Scale

E.x. Scale: 1 (developmental), 2 (meets expectations), 3 (exceeds expectations), 4 (exceptional)

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9
Q

Traits and Competencies are rated on Graphic Rating Scale and then

A

the Average Point Score is tallied
Reliability Communication Average Point
Maya 4 3 4
Cameron 2 1 2
Erum 2 2 2
Jonathan 1 4 3

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10
Q

Appraisal Method: Alternation Ranking Method

A

Trait: Reliability: + (better than), - (worse than)
Involves comparisons with other employees

Ranking employees from best to worst on a trait or traits. • This method is used to indicate the employee who is highest on the trait being measured and also the one who is lowest, alternating between highest and lowest until all employees to be rated have been addressed

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11
Q

Appraisal Method: Critical Incident Technique

A

Manager keeps a log of desirable or undesirable examples or incidents of employee’s behavior.
Every 6 months or so, manager and employee meet to discuss.

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12
Q

Appraisal Method: Narrative Forms

A

Competencies clearly defined - asked to rate and provide an example of when the employee showed that behaviour

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13
Q

Performance Improvement Plan (PIP)

A
• Identifies measurable improvement
goals, timelines and key success
indicators
• Lists a timetable where manager and
employee will come together to
review the PIP (usually frequent
meetings)
• Lists trainings that would be
beneficial to the employee
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14
Q

Appraisal Method: BARS - Behaviourally Anchored Rating Scale

A
  • Most Time consuming to develop

- Has a scale Associated with a behaviour

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15
Q

This is an example of:

Scale: 1 (developmental), 2 (meets expectations), 3 (exceeds expectations), 4 (exceptional)

For cashiers, the “accuracy” trait could look like this;

1: makes frequent errors in calculating and inputting the total amount
2: most of the time, accurate in calculating and inputting the total amount
3: always accurate in calculations and inputting the total amount
4: always accurate in calculations and inputting the total amount. In addition, responds to
customers’ questions accurately and positively.

A

BARS - Behaviourally Anchored Rating Scale

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16
Q

Appraisal Method: MBO - Management By Objectives

A

Goal Setting using SMART goals

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17
Q

Appraisal Method: 360 Performance Review

A

EVERYONE around you performs appraisal (e.g. boss, peers, customers, clients, suppliers, etc.)

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18
Q

Name the 7 Types of Appraisal Methods

A

1) Graphic Rating Scale (Most Common)
2) Alternation Ranking (comparing employees and finding best and worst)
3) Critical Incident
4) Narrative Forms
5) BARS (most difficult)
6) MBO
7) 360

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19
Q

Performance Appraisal Cautions:

THE HALO EFFECT

A

Rating an employee on one trait biases the way that person is rated on other traits

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20
Q

Performance Appraisal Cautions:

CENTRAL TENDANCY

A

All employees rated as somewhere in the middle

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21
Q

Performance Appraisal Cautions:

STRICTNESS / LENIENCY

A

Either rating too high or too low

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22
Q

Performance Appraisal Cautions:

APPRAISAL BIAS

A

Tendency to allow individual differences, such as age, race, and sex, to affect
the appraisal ratings

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23
Q

Performance Appraisal Cautions:

RECENCY EFFECT

A

Only considering the employees most recent performance

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24
Q

Performance Appraisal Cautions:

SIMILAR-TO-ME BIAS

A

Tendency to give higher performance ratings to employees who are
perceived to be similar to the rater

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25
Q

List 6 Performance Appraisal Cautions

A
1 - HALO EFFECT
2- CENTRAL TENDENCY 
3- STRICT / LENIENT
4- APPRAISAL BIAS
5- RECENCY EFFECT
6- SIMILAR-TO-ME
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26
Q

Forced Distribution Method is

A
  • Developed by Jack Welch (GE)
  • Involves arranging employees into 3 categories: A Players (top 20%), B Players (middle 70%) and C Players (weak / bottom 10%)
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27
Q

Forced Distribution Pros / Cons

A
  • Eliminates some biases: Central Tendency or Strictness/ Leniency
  • Might push the organization to perform better
  • Need to watch out for cultural adaptation and fit
  • Might create demotivation, rivalry among employees
  • Assumes majority of the employees are average or poor performers: no linkage to organizational or departmental performance
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28
Q

According to Maslow’s Hierarchy of Needs, Pay falls into

A

The bottom wrung as a basic need for safety / security and to satisfy physiological needs

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29
Q

Pay can lead to [blank] but not [blank]

A

Pay can lead to JOB DISSATISFACTION but not SATISFACTION

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30
Q

Frederick Herzberg’s Motivating Factors for Job DISSATISFACTION are

A
  • quality of supervision
  • pay
  • company policies
  • physical conditions
  • relations with others
  • job security
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31
Q

Frederick Herzberg’s Motivating Factors for Job SATISFACTION (INTRINSIC MOTIVATORS) are: PORRA

A
  • Promotion
  • Opportunities for personal growth
  • Recognition
  • Responsibility
  • Achievement
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32
Q

INTRINSIC MOTIVATION comes from

A

within

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33
Q

EXPECTANCY THEORY

A

PEOPLE WILL BE MOTIVATED TO THE EXTENT TO WHICH THEY BELIEVE THAT THEIR EFFORTS WILL LEAD TO GOOD PERFORMANCE, THAT GOOD PERFORMANCE WILL BE REWARDED, AND THAT THEY WILL BE OFFERED ATTRACTIVE REWARDS.

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34
Q

EQUITY THEORY

A

THE EQUITY THEORY IS DEFINED AS A THEORY THAT STATES THAT PEOPLE WILL BE MOTIVATED WHEN THEY PERCEIVE THAT THEY ARE BEING TREATED FAIRLY

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35
Q

Motivation =

A

Expectancy (I worked so hard. I
should get 10%
increase.)

x

Instrumentality
(I got 10% increase
but they gave it to
everyone.)

x Valence
(With 10%
increase, I can go
on a vacation.)

36
Q

Forms of Equity:

External Equity

A

example: What are others making OUTSIDE the company?

37
Q

Forms of Equity:

Internal Equity

A

Ex. what are people inside my COMPANY getting?

38
Q

Forms of Equity:

Individual Equity

A

Ex. What are my coworkers being compensated?

39
Q

Forms of Equity:

Procedural Equity

A

Is this process Fair?

40
Q

Name 2 components of Pay

A

Variable Pay and Base Pay

41
Q

Example of COMPENSABLE FACTORS (used to determine pay)

A

Skill, Effort, Working Conditions, Responsibility

42
Q

How do we remain objective when deciding which jobs should get paid more or less

A

use a JOB EVALUATION COMMITTEE

43
Q

Job Categorization:

Define CLASSES

A

CLASSES contain similar jobs, i.e.

executive assistants

44
Q

Job Categorization: Define GRADES

A

GRADES are jobs similar in difficultly but otherwise

different, i.e. executive assistants and mechanics

45
Q

Job Evaluation Methods:

When do you uses JOB CLASSES?

A

Classes are used when you do not have many jobs and organization is relatively small

46
Q

Job Evaluation Methods:

How do you use JOB CLASSES?

A
  • By defining a description for each class

- By defining rules, i.e. amount of independent judgement, skill

47
Q

Job Evaluation Methods:

When do you use JOB GRADES?

A

Job GRADES are used when you have many jobs and the organization is not small

48
Q

Job Evaluation Methods:

HOW do you use JOB GRADES?

A

By defining compensable criteria i.e. skill, effort, responsibility, working conditions

49
Q

Job Evaluation Methods:

The POINT METHOD

A
Determining a Point Value for each job:
FACTOR SUB-FACTOR Executive Assistant
Skill Education and Experience
Interpersonal Skill
2
3
Effort Physical Effort
Mental Effort
1
3
Responsibility Supervision of Others
Planning
1
3
Working Conditions Physical Environment
Travel
1
1
Total Points: 15
50
Q

[blank] + [blank] determines the pay for jobs

A

JOB EVALUATION + SALARY SURVEY

51
Q

Red Circle Pay Rate

A

Outlier- employee who is making more than the average pay rang

52
Q

What can you do with RED CIRCLE PAY employees?

A

freeze their base pay raises, transfer or promote the employee

53
Q

Wage Curve is

A

the curve of the target wage

54
Q

BANDS are

A

pay ranges for each job grade with a max point a mid point (on the target wage curve line) and a min point

55
Q

Broadbanding

A

when bands overlap significantly - less need to promote - usually similar jobs are within the same broadband

56
Q

INCENTIVES FOR ALL EMPLOYEES

A

includes:1. Merit (performance pay), 2.bonuses, 3.employee share plan / stock ownership plan, 4.profit sharing plan,5. gain sharing plan

57
Q

merit pay / performance pay

A

continual increments in salary

58
Q

bonus pay

A

one time payment

59
Q

employee share plan / stock ownership plan

A

Trust established to hold shares of company stock purchased for or
issued to employees (60% of Canadian organizations)

60
Q

profit sharing plan

A

A plan whereby most or all employees share in the company’s profits
(fewer than 15% of Canadian organizations)

61
Q

gain sharing plan

A

plan that engages employees in a common effort to achieve

productivity objectives and share the gains

62
Q

piecework plan

A

Incentive based on number of units produced in a given time, such as items per hour or items per day

63
Q

straight piecework plans

A

A set payment for each piece produced or processed

64
Q

guaranteed piecework plan

A

The minimum hourly wage plus an incentive ($) for each unit produced above a set number of units per hour

65
Q

differential piecerate plan

A

A plan by which a worker is paid a basic hourly rate plus an extra
percentage (%) of his/her base rate for production exceeding the
standard per hour or per day

66
Q

team / group incentive plan

A

A plan in which a production standard is set for a specific work group and its members are paid incentives if the group exceeds the production standard

67
Q

INCENTIVES FOR OPERATIONS / PRODUCTION EMPLOYEES

A
  1. piecework plan 7. straight piecework plan 8. guaranteed piecework plan
  2. differential piece-rate plan 10. team / group incentive plan
68
Q

INCENTIVES FOR EXECUTIVES & SR. MANAGERS

A

merit pay / performance pay, bonus, capital accumulations programs,stock options

69
Q

capital accumulation programs

A

Opportunity to accumulate capital (in the form of company shares)
based on the firm’s long-term success (60% of Canadian private sector)

70
Q

stock options

A

The right to purchase a specific number of shares of company stock at today’s price at some point in the future

71
Q

CEO earnings are made of:

A
31% share units
30% cash bonus
16% base salary
15% stock options
8% other
72
Q

INCENTIVES FOR SALES PEOPLE

A

Salary plan, commission plan, combination plan

73
Q

salary plan

A

In a salary plan, salespeople are paid a fixed salary, although there may
be occasional incentives in the form of bonuses, sales contest prizes,
and the like. Mostly used in pharmaceutical industry

74
Q

commission plan

A

Payment in direct proportion to sales: pay for results

and only for results

75
Q

combination plan

A

Mix of fixed salary and commissions

76
Q

legal considerations for compensation`

A

ESA / canadian labour labour codes, pay equity act - bill 148, workers compensation, human rights act, CPP/QPP

77
Q

ESA / Canadian Labour Laws

A

Sets minimum standards regarding pay, including minimum wage,
maximum hours of work, overtime pay, paid vacation, termination pay,
paid statutory holidays, etc.

78
Q

Pay Equity Act

A

Bill 148 - Equal Pay for Equal Work

79
Q

Workers Comp Laws

A

Each jurisdiction has its own Workers Compensation Laws. Objectives of these laws are to provide a prompt, sure, and reasonable income to victims of work-related accidents and illnesses, regardless of fault.

80
Q

Human Rights Act

A

Protect Canadians from discrimination on the basis of age, sex, colour, race, religion, marital status, and disability

81
Q

CPP/QPP

A

All employees and employers must contribute to Canada/Quebec
Pension Plan throughout their working life. Pension benefits based
on the employee’s average earnings are paid during retirement

82
Q

Levels of Employee recognition

A

1 - day-to-day recognition
2- departmental recognition
3- organization wide recognition (i.e. service recognition awards)

83
Q

level 1. day-to-day recognition examples and purpose

A

Purpose: Recognize on the spot, immediate recognition

  • Way of saying a “thank you” in a more structured way
  • Mostly non-monetary recognition (i.e. thank you card)
84
Q

level 2: departmental recognition examples and purpose

A
  • Purpose: celebration of achievements within the
    department
  • Criteria tied to departmental objectives and values
  • Monetary recognition (i.e. gift card)
85
Q

level 3: organization wide recognition examples and purpose

A
  • Purpose: Celebration of achievements that have been critical in achieving organizational strategies and goals
  • Criteria tied to organizational strategies and values
  • Monetary recognition is significant
86
Q

How people prefer to be rewarded:

A

prepaid cards