Exam 3 - Review

Question 1

Performance appraisal

What are the 2 purposes

Answer 1

1. Adminstristal (Personal Decisions)

2. Developmental (Career Planning)

Question 2

◦ 3 different types of PA methods

Answer 2

Access the extent of one individual to possess an important trait or characteristic that is important to the job or the organization. Criticism: it pays too much about the person instead of what they do.

Question 3

2. Behavioral methods

Answer 3

Behaviorally anchored rating scale (BARS)

• Behavioral observation scale (BOS)

Question 4

3. Results methods

Answer 4

Focusing on Management by objective - goals

Question 5

Pros of Trait Methods

Answer 5

• inexpensive

* easy to use

Question 6

Cons of Trait Methods

Answer 6

• Poor for
feedback
• Potential for
Errors

Question 7

Pros of Behavioral Methods

Answer 7

• useful for providing
feedback
• accepted by employees
• ok for rewards/promotion

Question 8

Cons of Behavioral Methods

Answer 8

• time consuming

* costly

Question 9

Pros of Results Methods

Answer 9

• objective
• accepted by
employees
• encourage goal
settings
• ok for promotions/
rewards

Question 10

Cons of Results Methods

Answer 10

• may be impacted by
circumstances beyond
employees controlled
• Possibly to falsify results

Question 11

Common rater related errors

Error of central tendency

Answer 11

Error of central tendency: rate everyone around average of scale

Question 12

Leniency or strictness error

Answer 12

Leniency or strictness error ◦Managers give out unusually high measures for average performance
◦Managers give out unusually low measures for average performance

Question 13

Similar-to-me errors

Answer 13

Similar-to-me errors
◦give out high measures because of similar things in common (commonalities)
◦for example if they support the same team
◦younger version of me

Question 14

Recency error

Answer 14

Recency error
◦It only focuses on the recent performance rather than the whole time
◦For example, if it looks for annual performance (recency error) the managers will only look at 4 months before the measure is due

Question 15

Contrast Errors

Answer 15

Contrast Errors
◦comparison between two persons
◦Comparison is keyword
◦comparison between two employees rather than comparing performance measure with employee

Question 16

◦Halo error

Answer 16

◦Halo error

‣ Raters will rate on the positive aspect rather than focusing on all performance measure

Question 17

Horns error

Answer 17

Horns error
‣ The managers will rate more on the negative aspects based on one or two things rather than focusing on all the performance measure.

Question 18

All these are considered as unconditional errors
How to minimizes these errors
[help]

Answer 18

• more specific rating formats
• hold raters accountable for accuracy
• Performance appraisal training: understand errors
• Frame of reference training: understand standards

Question 19

◦ Intentional errors

Answer 19

◦ Intentional errors

‣ By politics

Question 20

Performance review session

Answer 20

Pink sheet

Look over

Question 21

Deficiency

Answer 21

‣ Something is missing
‣ Criterion deficiency:
‣ Aspects of actual performance that are not measured

Question 22

Contamination

Criterion contamination

Answer 22

Criterion contamination

Elements that affect the appraisal measures that are not part of the actual performance

Question 23

Three types of Different Job Evaluation

Answer 23

1. Job ranking
2. Job classification
3. Point system

Question 24

Job ranking

Answer 24

Job ranking
Your find the most important jobs according to the firm and pay those jobs more. You determine the worth of the job and use market surveys to develop a pay structure system

Question 25

Job classification

Answer 25

Job classification You create different classifications of grades. Each grade has a description of the job, knowledge, etc. You than compare the job to the description you made to determine pay. Essentially you have a predetermined pay

Question 26

Point system

Answer 26

Point system | A system where you have rank compensable factors with weights to see what job is most important to the firm

Question 27

Pay system Objectives of pay system (4)

Answer 27

1. Strategic 2. Attractive 3. Equitable 4. Motivating 5. Complies with law and regulations

Question 28

Motivation

Answer 28

Expectancy theory The employees effort are rewarded to increase performance The rewards needs to be VALUABLE

Question 29

Broad banding

Answer 29

Broad banding | Gives the managers more flexibility in rewarding someone

Question 30

Comparative worth vs equal pay | Comparative worth

Answer 30

Pay for the same job | Regarding the worth of the job

Question 31

Equal pay

Answer 31

Pay for the equal work | Men and women working on them same job should be paid they same

Question 32

FLSA stands for

Answer 32

Fair Labor Standards Act

Question 33

FLSA

Answer 33

needs more notes

Question 34

Federal minimum wage

Answer 34

Federal minimum wage | $7.25

Question 35

Nevada minimum wage with insurance

Answer 35

Nevada minimum wage with insurance | $7.25

Question 36

Nevada minimum wage without insurance

Answer 36

Nevada minimum wage without insurance | $8.25

Question 37

5 Different classifications of exempt employees

Answer 37

1. executives 2. administrators 3. professionals 4. outside sales people, 5. computer employees

Question 38

Benefits Mandatory 5 benefits

Answer 38

``` Benefits Mandatory 5 benefits 1. Social Security 2. Unemployment insurance 3. Worker’s compensation Paid for getting hurt at the job Not required to get paid for leaves. 4. Leaves without pay 5. Consolidated Omnibus Budget Reconciliation Act (COBRA) ```

Question 39

Discretionary benefits

Answer 39

1. Health Insurance 2. Child care 3. Wellness programs 4. Life and long-term care insurance 5. Payment for time not worked 6. Pension plans

Question 40

Pension plans | [need more notes]

Answer 40

Pension plans [need more notes] Not required by law However, it’s a great benefit to give your employees as it’ll attract talented individuals to your company which will contribute more than the average person.

Question 41

Pension plans Regulated by ERISA - Employee Retirement income security act [ERISA] What do they do (2)?

Answer 41

Pension plans Regulated by ERISA - Employee Retirement income security act [ERISA] What they do 1. Regulate private sector pension plans 2. Sets minimum amount for investing

Question 42

Are pensions required by law?

Answer 42

NOT REQUIRED

Question 43

Vesting

Answer 43

The point in time when pension monies set aside by a company become the actual property of that individual

Question 44

Noncontributing, | Contributory;

Answer 44

Noncontributing, includes employer Company will be the sole contributor to your pension account Contributory; both employer and employee (joint) Employee and company will contribute to your pension account

Question 45

Defined benefits: | Defined contribution:

Answer 45

Defined benefits: guarantee amount (percentage of your retired salary) Traditional type of pension plans The specific amount when you are going to retire is predetermined based on certain parameters Defined contribution: how they are going to define how they are going to make their contributions. It’s less predictable Getting more and more popular as an incentive 401k is an example of a contribution Cash or stocks You do not know how much you are going to get when you retired 401k is tax deferred

Question 46

Flexible benefits programs | Advantages

Answer 46

Flexible benefits programs Advantages ‣ Accommodate difference in employee needs ‣ Prevent waste of benefits Employees gain better understanding of benefits

Question 47

Flexible benefits programs | Disadvantages

Answer 47

``` Flexible benefits programs Disadvantages ‣ Difficult to design and administer ‣ High Administrative cost Possible blame on employer for poor employee choices ```

Question 48

Job evaluation

Answer 48

Job evaluation | Evaluating the relative worth of the job