Weeks 9 & 10 Flashcards Preview

Human Resources Management Final Exam > Weeks 9 & 10 > Flashcards

Flashcards in Weeks 9 & 10 Deck (86):
1

Performance Management Feedback Should Have

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

2

What is the TOP of Performance Mgmt?

Organizational Strategy, Organizational Goals,
Sr. Leadership Accountability

3

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

1) Individual Goal Setting
2) Competencies Review

4

Step _ in Performance MGMT is Providing Ongoing Feedback and Coaching

This is Step 2.
After Performance Expectations

5

Step 3 is Performance Review Discussions this includes

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

6

Performance Review Discussions lead to these discussions on these outcomes

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

7

Crowd sourcing is

getting information from a large group of people / multiple sources

8

Appraisal Method:
The MOST COMMON form of rating performance is:

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

9

Traits and Competencies are rated on Graphic Rating Scale and then

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

10

Appraisal Method: Alternation Ranking Method

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

11

Appraisal Method: Critical Incident Technique

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.

12

Appraisal Method: Narrative Forms

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

13

Performance Improvement Plan (PIP)

• 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

14

Appraisal Method: BARS - Behaviourally Anchored Rating Scale

- Most Time consuming to develop
-Has a scale Associated with a behaviour

15

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.

BARS - Behaviourally Anchored Rating Scale

16

Appraisal Method: MBO - Management By Objectives

Goal Setting using SMART goals

17

Appraisal Method: 360 Performance Review

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

18

Name the 7 Types of Appraisal Methods

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

19

Performance Appraisal Cautions:
THE HALO EFFECT

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

20

Performance Appraisal Cautions:
CENTRAL TENDANCY

All employees rated as somewhere in the middle

21

Performance Appraisal Cautions:
STRICTNESS / LENIENCY

Either rating too high or too low

22

Performance Appraisal Cautions:
APPRAISAL BIAS

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

23

Performance Appraisal Cautions:
RECENCY EFFECT

Only considering the employees most recent performance

24

Performance Appraisal Cautions:
SIMILAR-TO-ME BIAS

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

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

33

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

50

[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

57

merit pay / performance pay

continual increments in salary

58

bonus pay

one time payment

59

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

62

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

64

guaranteed piecework plan

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

65

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

66

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

67

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

68

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)

70

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

72

INCENTIVES FOR SALES PEOPLE

Salary plan, commission plan, combination plan

73

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

74

commission plan

Payment in direct proportion to sales: pay for results
and only for results

75

combination plan

Mix of fixed salary and commissions

76

legal considerations for compensation`

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

77

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.

78

Pay Equity Act

Bill 148 - Equal Pay for Equal Work

79

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.

80

Human Rights Act

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

81

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)

85

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

86

How people prefer to be rewarded:

prepaid cards