Weeks 9 & 10 Flashcards

(86 cards)

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
List 6 Performance Appraisal Cautions
``` 1 - HALO EFFECT 2- CENTRAL TENDENCY 3- STRICT / LENIENT 4- APPRAISAL BIAS 5- RECENCY EFFECT 6- SIMILAR-TO-ME ```
26
Forced Distribution Method is
- 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%)
27
Forced Distribution Pros / Cons
* 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
28
According to Maslow's Hierarchy of Needs, Pay falls into
The bottom wrung as a basic need for safety / security and to satisfy physiological needs
29
Pay can lead to [blank] but not [blank]
Pay can lead to JOB DISSATISFACTION but not SATISFACTION
30
Frederick Herzberg's Motivating Factors for Job DISSATISFACTION are
- quality of supervision - pay - company policies - physical conditions - relations with others - job security
31
Frederick Herzberg's Motivating Factors for Job SATISFACTION (INTRINSIC MOTIVATORS) are: PORRA
- Promotion - Opportunities for personal growth - Recognition - Responsibility - Achievement
32
INTRINSIC MOTIVATION comes from
within
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EXPECTANCY THEORY
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.
34
EQUITY THEORY
THE EQUITY THEORY IS DEFINED AS A THEORY THAT STATES THAT PEOPLE WILL BE MOTIVATED WHEN THEY PERCEIVE THAT THEY ARE BEING TREATED FAIRLY
35
Motivation =
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
Forms of Equity: | External Equity
example: What are others making OUTSIDE the company?
37
Forms of Equity: | Internal Equity
Ex. what are people inside my COMPANY getting?
38
Forms of Equity: | Individual Equity
Ex. What are my coworkers being compensated?
39
Forms of Equity: | Procedural Equity
Is this process Fair?
40
Name 2 components of Pay
Variable Pay and Base Pay
41
Example of COMPENSABLE FACTORS (used to determine pay)
Skill, Effort, Working Conditions, Responsibility
42
How do we remain objective when deciding which jobs should get paid more or less
use a JOB EVALUATION COMMITTEE
43
Job Categorization: | Define CLASSES
CLASSES contain similar jobs, i.e. | executive assistants
44
Job Categorization: Define GRADES
GRADES are jobs similar in difficultly but otherwise | different, i.e. executive assistants and mechanics
45
Job Evaluation Methods: | When do you uses JOB CLASSES?
Classes are used when you do not have many jobs and organization is relatively small
46
Job Evaluation Methods: | How do you use JOB CLASSES?
- By defining a description for each class | - By defining rules, i.e. amount of independent judgement, skill
47
Job Evaluation Methods: | When do you use JOB GRADES?
Job GRADES are used when you have many jobs and the organization is not small
48
Job Evaluation Methods: | HOW do you use JOB GRADES?
By defining compensable criteria i.e. skill, effort, responsibility, working conditions
49
Job Evaluation Methods: | The POINT METHOD
``` 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 ```
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[blank] + [blank] determines the pay for jobs
JOB EVALUATION + SALARY SURVEY
51
Red Circle Pay Rate
Outlier- employee who is making more than the average pay rang
52
What can you do with RED CIRCLE PAY employees?
freeze their base pay raises, transfer or promote the employee
53
Wage Curve is
the curve of the target wage
54
BANDS are
pay ranges for each job grade with a max point a mid point (on the target wage curve line) and a min point
55
Broadbanding
when bands overlap significantly - less need to promote - usually similar jobs are within the same broadband
56
INCENTIVES FOR ALL EMPLOYEES
includes:1. Merit (performance pay), 2.bonuses, 3.employee share plan / stock ownership plan, 4.profit sharing plan,5. gain sharing plan
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merit pay / performance pay
continual increments in salary
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bonus pay
one time payment
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employee share plan / stock ownership plan
Trust established to hold shares of company stock purchased for or issued to employees (60% of Canadian organizations)
60
profit sharing plan
A plan whereby most or all employees share in the company’s profits (fewer than 15% of Canadian organizations)
61
gain sharing plan
plan that engages employees in a common effort to achieve | productivity objectives and share the gains
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piecework plan
Incentive based on number of units produced in a given time, such as items per hour or items per day
63
straight piecework plans
A set payment for each piece produced or processed
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guaranteed piecework plan
The minimum hourly wage plus an incentive ($) for each unit produced above a set number of units per hour
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differential piecerate plan
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
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team / group incentive plan
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
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INCENTIVES FOR OPERATIONS / PRODUCTION EMPLOYEES
6. piecework plan 7. straight piecework plan 8. guaranteed piecework plan 9. differential piece-rate plan 10. team / group incentive plan
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INCENTIVES FOR EXECUTIVES & SR. MANAGERS
merit pay / performance pay, bonus, capital accumulations programs,stock options
69
capital accumulation programs
Opportunity to accumulate capital (in the form of company shares) based on the firm’s long-term success (60% of Canadian private sector)
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stock options
The right to purchase a specific number of shares of company stock at today’s price at some point in the future
71
CEO earnings are made of:
``` 31% share units 30% cash bonus 16% base salary 15% stock options 8% other ```
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INCENTIVES FOR SALES PEOPLE
Salary plan, commission plan, combination plan
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salary plan
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
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commission plan
Payment in direct proportion to sales: pay for results | and only for results
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combination plan
Mix of fixed salary and commissions
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legal considerations for compensation`
ESA / canadian labour labour codes, pay equity act - bill 148, workers compensation, human rights act, CPP/QPP
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ESA / Canadian Labour Laws
Sets minimum standards regarding pay, including minimum wage, maximum hours of work, overtime pay, paid vacation, termination pay, paid statutory holidays, etc.
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Pay Equity Act
Bill 148 - Equal Pay for Equal Work
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Workers Comp Laws
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.
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Human Rights Act
Protect Canadians from discrimination on the basis of age, sex, colour, race, religion, marital status, and disability
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CPP/QPP
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
Levels of Employee recognition
1 - day-to-day recognition 2- departmental recognition 3- organization wide recognition (i.e. service recognition awards)
83
level 1. day-to-day recognition examples and purpose
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
level 2: departmental recognition examples and purpose
- Purpose: celebration of achievements within the department - Criteria tied to departmental objectives and values - Monetary recognition (i.e. gift card)
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level 3: organization wide recognition examples and purpose
- 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
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How people prefer to be rewarded:
prepaid cards