Test 4

Question 1

The process of creating a work environment in which people can perform to the best of their abilities.

Answer 1

Performance Management

Question 2

A process, typically performed annually by a supervisor for a subordinate, designed to help employees understand their roles, objectives, expectations, and performance success.

Answer 2

Performance Appraisal

Question 3

A process whereby managers meet to discuss the performance of individual employees to ensure their employee appraisals are in line with one another

Answer 3

calibration

Question 4

Must be based on job-related requirements derived from job analysis and reflected in job description and job specifications.
Help translate an organization’s goals and objectives into job requirements that define acceptable and unacceptable performance levels.
Calibration

Answer 4

Establishing Performance Standards

Question 5

Individual standards directly relate to strategic goals.

Answer 5

strategic relevance

Question 6

Occurs when standards don’t capture all of an individual’s contributions. Focus on minimizing this.

Answer 6

criterion deficiency

Question 7

Occurs when performance capability is reduced by external factors. Focus on minimizing this.

Answer 7

criterion contamination

Question 8

Standards are quantifiable, measurable, and stable.

Answer 8

reliability (consistency)

Question 9

Appraisal done by an employee’s manager and reviewed by a manager one level higher.

Answer 9

Manager and/or Supervisor

Question 10

Appraisal done by the employee being evaluated, generally on an appraisal form completed by the employee prior to the performance interview.

Answer 10

self appraisal

Question 11

Appraisal of a superior by an employee, which is more appropriate for developmental than for administrative purposes.

Answer 11

subordinate appraisal

Question 12

Appraisal by fellow employees, compiled into a single profile for use in an interview conducted by the employee’s manager.

Answer 12

peer appraisal

Question 13

Based on TQM concepts; recognizes team accomplishment rather than individual performance

Answer 13

teram appraisal

Question 14

A performance appraisal that, like team appraisal, is based on TQM concepts and seeks evaluation from both external and internal customers

Answer 14

customer appraisal

Question 15

• Communicating effectively
• Diagnosing the root causes of performance problems
• Setting goals and objectives

Answer 15

feedback skills training

Question 16

• Observe other managers making errors
• Actively participate in discovering their own errors
• Practice job-related tasks to reduce the errors they tend to make

Answer 16

rating error training

Question 17

A trait approach to performance appraisal whereby each employee is rated according to a scale of individual characteristics.

Answer 17

graphic rating scale method

Question 18

An approach to performance appraisal similar to other scale methods but based on comparison with (better than, equal to, or worse than) a standard.

Answer 18

mixed standard scale method

Question 19

• A performance appraisal that measures the frequency of observed behavior (critical incidents).
• Preferred over BARS for maintaining objectivity, distinguishing good performers from poor performers, providing feedback, and identifying training needs.

Answer 19

Behavior Observation Scale (BOS)

Question 20

Consists of a series of vertical scales, one for each dimension of job performance; typically developed by a committee that includes both subordinates and managers.

Answer 20

Behaviorally Anchored Rating Scale (BARS)

Question 21

• An unusual event that denotes superior or inferior employee performance in some part of the job
• The manager keeps a log or diary for each employee throughout the appraisal period and notes specific critical incidents related to how well they perform.

Answer 21

critical incident method

Question 22

• Appraisals based on quantitative measures (e.g., sales volume) that directly link what employees accomplish to results beneficial to the organization.
• Criterion contamination
• Focus on short-term results

Answer 22

productivity measures

Question 23

A philosophy of management that rates performance on the basis of employee achievement of goals set by mutual agreement of employee and manager.

Answer 23

management by objectives (MBO)

Question 24

Links the compensation of employees to the mission, objectives, philosophies, and culture of the organization.

Answer 24

strategic compensation

Question 25

The standard by which managers tie compensation to employee effort and performance.

Answer 25

pay for performance standard

Question 26

An employee’s perception that compensation received is equal to the value of the work performed.

Answer 26

pay equity

Question 27

– fairness of your pay relative to others in the labor market

Answer 27

External pay equity

Question 28

fairness of your pay relative to others in the organization

Answer 28

Internal pay equity

Question 29

A motivation theory that explains how people respond to situations in which they feel they have received less (or more) than they deserve.

Answer 29

equity theory

Question 30

A theory of motivation that holds that employees should exert greater work effort if they have reason to expect that it will result in a reward that they value.

Answer 30

expectancy theory

Question 31

An organizational policy prohibiting employees from revealing their compensation information to anyone. Creates misperceptions and distrust of compensation fairness and pay-for-performance standards.

Answer 31

pay secrecy

Question 32

Work paid on an hourly basis.

Answer 32

hourly work

Question 33

Work paid according to the number of units produced.

Answer 33

piecework

Question 34

Employees whose compensation is computed on the basis of weekly, biweekly, or monthly pay periods.

Answer 34

salary workers

Question 35

- Employees who not covered in the overtime provisions of the Fair Labor Standards Act. - Managers, supervisors, and white-collar professional employees are exempted on the basis of their exercise of independent judgment and other criteria.

Answer 35

exempt employees

Question 36

- Employees covered by the overtime provisions of the Fair Labor Standards Act. - They must be paid time and one-half their regular pay for all work performed after forty regular hours of work in a workweek.

Answer 36

nonexempt employees

Question 37

Having the resources and profits to pay employees.

Answer 37

employers ability to pay

Question 38

Rewarding individual employee performance

Answer 38

employees relative worth

Question 39

Establishing the internal wage relationship among jobs and skill levels

Answer 39

worth of a job

Question 40

- Establishes the internal wage relationship among jobs and skill levels - Sets organization compensation policy to lead, lag, or match competitors’ pay. - Rewards employee performance

Answer 40

employers compensation strategy

Question 41

Availability and quality of potential employees is affected by economic conditions, government regulations and policies, and the presence of unions.

Answer 41

labor market conditions

Question 42

A firm’s formal wage structure of rates is influenced by those being paid by other area employers for comparable jobs.

Answer 42

area wage rates

Question 43

- Local housing and environmental conditions can cause wide variations in the cost of living for employees. - Inflation can require that compensation rates be adjusted upward periodically to help employees maintain their purchasing power.

Answer 43

cost of living

Question 44

- Escalator clauses in labor agreements provide for quarterly upward cost-of-living (COLA) wage adjustments for inflation to protect employees’ purchasing power. - Unions bargain for real wage increases that raise the standard of living for their members.

Answer 44

collective bargaining

Question 45

The systematic process of determining the relative worth of jobs in order to establish which jobs should be paid more than others within an organization.

Answer 45

job evaluation

Question 46

Oldest system of job evaluation by which jobs are arrayed on the basis of their relative worth.

Answer 46

job ranking system

Question 47

A system of job evaluation in which jobs are classified and grouped according to a series of predetermined wage grades.

Answer 47

Job Classification system

Question 48

A quantitative job evaluation procedure that determines the relative value of a job by the total points assigned to it.

Answer 48

point system

Question 49

A handbook that contains a description of the compensable factors and the degrees to which these factors may exist within the jobs.

Answer 49

the point manual

Question 50

A survey of the wages paid to employees of other employers in the surveying organization’s relevant labor market.

Answer 50

wage and salary survey

Question 51

The area from which employers obtain certain types of workers.

Answer 51

labor market

Question 52

Compression of pay between new and experienced employees caused by the higher starting salaries of new employees; also the differential between hourly workers and their Managers.

Answer 52

wage rate compression

Question 53

There is evidence of a relationship between incentive plans and improved organizational performance.

Answer 53

incentive plan effectiveness

Question 54

An incentive plan under which employees receive a certain rate for each unit produced.

Answer 54

straight piecework

Question 55

A compensation rate under which employees whose production exceeds the standard amount of output receive a higher rate for all of their work than the rate paid to those who do not exceed the standard amount.

Answer 55

differential piece rate

Question 56

- An incentive plan that sets pay rates based on the completion of a job in a predetermined “standard time.” - If employees finish the work in less than the expected time, their pay is still based on the standard time for the job multiplied by their hourly rate.

Answer 56

standard hour plan

Question 57

Incentive payment that is supplemental to the base wage for cost reduction, quality improvement, or other performance criteria.

Answer 57

bonus

Question 58

Links an increase in base pay to how successfully an employee achieved some objective performance standard.

Answer 58

merit pay program

Question 59

Compensation plan that permits salespeople to be paid for performing various duties that are not reflected immediately in their sales volume.

Answer 59

straight salary plan

Question 60

Compensation plan based upon a percentage of sales.

Answer 60

straight commission plan

Question 61

A compensation plan that includes a straight salary and a commission component (“leverage”). Most common

Answer 61

combined salary commission plan

Question 62

Compensation plans where all team members receive an incentive bonus payment when production or service standards are met or exceeded.

Answer 62

team incentive plans

Question 63

Programs under which both employees and the organization share the financial gains according to a predetermined formula that reflects improved productivity and profitability.

Answer 63

gainsharing plans

Question 64

Rewards come from employee participation in improving productivity and reducing costs.

Answer 64

scanlon plan

Question 65

Gainsharing based on increases in productivity of the standard hour output of work teams.

Answer 65

improshare

Question 66

Any procedure by which an employer pays, or makes available to all regular employees, in addition to their base pay, current or deferred sums based upon the profits of the enterprise.

Answer 66

profit sharing

Question 67

- Granting employees the right to purchase a specific number of shares of the company’s stock at a guaranteed price (the option price) during a designated time period. - The value of an option is subject to stock market conditions at the time that option is exercised.

Answer 67

stock options

Question 68

Stock plans in which an organization contributes shares of its stock to an established trust for the purpose of stock purchases by its employees.

Answer 68

Employee Stock Ownership Plans (ESOPs)

Question 69

mental or physical activity that produces some result

Answer 69

work

Question 70

Pieces of work are combined to form Jobs

Answer 70

job

Question 71

The process of formally specifying the task-related activities assigned to and carried out by a worker

Answer 71

job design

Question 72

The degree to which a job requires a variety of different activities in carrying out the work and involves the use of a number of different skills and talents of the person

Answer 72

skill variety

Question 73

The degree to which a job requires completion of a “whole” and identifiable piece of work, that is, doing a job from beginning to end

Answer 73

task identity

Question 74

The degree to which the job has a substantial impact on the lives of other people, whether those people are in the immediate organization or in the world at large

Answer 74

task significance

Question 75

The degree to which the job provides substantial freedom, independence, and discretion to the individual in scheduling the work and in determining the procedures to be used in carrying it out.

Answer 75

autonomy

Question 76

The degree to which carrying out the work activities required by the job provides the individual with direct and clear information about the effectiveness of his or her performance.

Answer 76

feedback from the job

Question 77

A mathematical index describing the degree to which a job is designed so as to motivate people, as suggested by the job characteristics model. It is computed on the basis of a questionnaire known as the Job Diagnostic Survey (JDS).

Answer 77

motivating potential source

Question 78

Working hours that permit employees the option of choosing daily starting and quitting times, provided that they work a set number of hours per day or week.

Answer 78

flextime

Question 79

Shortening the number of days in the workweek by lengthening the number of hours worked per day.

Answer 79

compressed workweek

Question 80

The arrangement whereby two part-time employees perform a job that otherwise would be held by one full-time employee.

Answer 80

job sharing

Question 81

The use of personal computers, networks, and other communications technology such as fax machines to do work in the home that is traditionally done in the workplace.

Answer 81

telecommuting