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Human Resource Mgt. Test 2
Auburn University-Ianuzzi-Fall 2011
130
Management
Undergraduate 3
09/29/2011

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Term
Employee compensation
Definition
All forms of pay or rewards going to employees and arising from their employment
Direct financial payments
Indirect payments
Term
Direct financial payments
Definition
Payments in the form of wages, salaries, incentives, commissions, and bonuses
Term
Indirect payments
Definition
Payments in the form of financial benefits like employer-paid insurance and vacations
Term
Fair Labor Standards Act
Definition
Contains provisions covering the majority of U.S. workers:
Minimum wage
maximum hours
overtime pay
equal pay
record-keeping
child labor
It states that employers must pay an overtime rate of 1.5 times normal pay for any hours worked over 40 in a workweek.
It sets a minimum wage, which is $7.25 per hour as of July 2010.
Term
Exempt
Definition
excused of minimum wage and overtime requirements under the FLSA
Term
Non-Exempt
Definition
hourly employee, making a standard wage, and is eligible for overtime
Term
Equal Pay Act
Definition
Employees of one sex may not be paid wages at a rate lower than that paid to employees of the opposite sex for doing roughly equivalent work.
Term
Title VII of the Civil Rights Act
Definition
Makes it an unlawful practice for an employer to discriminate against any individual with respect to hiring, compensation, terms, conditions, or privileges of employment because of race, color, religion, sex, or national origin
Term
Age Discrimination in Employment Act
Definition
prohibits age discrimination against employees age 40 and older
Term
Americans with Disabilities Act
Definition
prohibits discrimination against qualified persons with disabilities
Term
Family and Medical Leave Act
Definition
entitles eligible men and women to take up to 12 weeks of unpaid, job-protected leave for the birth of a child, or care of a child, spouse, or parent
Term
National Labor Relations Act (NLRA) of 1935
Definition
Granted employees the right to organize, to bargain collectively, and to engage in concerted activities for the purpose of collective bargaining
Term
External equity
Definition
Pay must compare favorably with rates in other companies, or an employer will find it hard to attract and retain qualified employees.
Term
Internal equity
Definition
Each employee should view his or her pay as equitable, given other employees' pay in the organization
Term
Salary (or compensation) surveys
Definition
Formal or informal surveys of what other employers are paying for similar jobs
Used to benchmark job pay rates
Also collect data on benefits
Term
Job evaluation
Definition
Formal and systematic comparison of jobs to determine the worth of one job relative to another
Term
Compensable factors
Definition
Factors that determine:
the definition of job content
establish how the jobs compare to each other
set the compensation paid for each job
Term
Ranking method
Definition
Ranks each job relative to all other jobs
Term
Job classification
Definition
Manager categorizes jobs into groups based on their similarity in terms of compensable factors such as skills and responsibility
Term
Pay grade
Definition
Comprises jobs of approximately equal difficulty or importance as determined by job evaluation
Term
wage curve
Definition
show the relationship between:
The value of the job as determined by one of the job evaluation methods, and
The current average pay rates for the grades.
Term
Base salary
Definition
includes the fixed compensation paid regularly, as well as bonuses.
Term
Short-term incentives
Definition
are usually paid in cash or stock for achieving short-term goals.
Term
Deferred long-term incentives
Definition
include stock options bought at today’s price for which payment is deferred, that is, paid at a later date.
Term
Executive benefits and perks
Definition
include supplemental retirement plans, supplemental life insurance, leased automobiles, etc.
Term
Board of Directors
Definition
body of elected or appointed members who jointly oversee the activities of a company or organization
All publically traded companies are required to have them
Term
Sarbanes-Oxley Ac
Definition
holds executives personally liable for corporate financial oversight
Term
Securities and Exchange Commission (SEC)
Definition
require public filing of executive compensation
Term
Profit-sharing plan
Definition
A plan whereby most employees share in the company’s profits
Term
current
Definition
employees share in a portion of the company’s profits quarterly or annually (usually done in bonuses)
Term
deferred
Definition
employer puts cash into trust accounts for the employee’s retirement
Term
Benefits
Definition
Indirect financial payments given to employees
May include:
health and life insurance
vacation
pension
education plans
discounts on company products
discounts at other retailers
gym memberships and other health programs
on-site child care
etc., etc.
Term
Supplemental pay benefits
Definition
pay for time not worked, such as holidays, vacations, sick leave, and unemployment insurance payments—are expensive.
Term
Workers’ compensation laws
Definition
aim to provide sure, prompt income and medical benefits to work-related accident victims or their dependents, regardless of fault.
Term
Retirement benefits
Definition
provide an income if the employee retires at age 62 or thereafter.
Term
Disability payments
Definition
provide monthly payments to the employee and dependents.
Term
Survivor’s or death benefits
Definition
provide monthly payments to dependents of the employee.
Term
Medicare
Definition
health care to 65+
Term
Workplace flexibility
Definition
Arming employees with the information technology tools they need to get their jobs done, wherever the employees are
Term
Flexible benefits plans
Definition
Initially called “cafeteria plans” because employees could spend their benefits allowances on a choice of benefits options
Term
Negligent hiring
Definition
Hiring workers with criminal records or other such problems without proper safeguards
Term
Equal Employment Opportunity laws
Definition
require that you do not unfairly discriminate against any protected group.
Term
Basic Testing Concepts
Definition
Validity, Reliability
Term
Reliability
Definition
Consistency of scores obtained by the same person when the person is retested with the identical test or with an equivalent form of a test
Are test results stable over time?
Term
retest estimate
Definition
administering the same test to the same person at two different points in time and comparing the test scores
Term
equivalent-form estimate
Definition
administering a test and then an equivalent form of the test at a later date.
Term
internal comparison estimate
Definition
by posing questions that ask the same thing in different ways to elicit a consistent response from a candidate.
Term
Validity
Definition
The accuracy with which a test, interview, etc. measures what it claims to measure or fulfills the function it was designed to fulfill
Does the test actually measure what it is intended to measure?
Term
Criterion Validity
Definition
Scores on the test (predictors) are related to job performance (criterion).
Term
Content Validity
Definition
The test contains a fair sample of the skills and activities actually needed for the job in question.
Term
Cognitive tests
Definition
include tests of general reasoning ability (intelligence) and tests of specific mental abilities like memory and inductive reasoning
Term
Tests of motor and physical abilities
Definition
measure motor abilities, such as finger dexterity, manual dexterity, and reaction time
Term
Personality tests
Definition
measure basic aspects of an applicant’s personality, such as introversion, stability, and motivation.
Term
Achievement tests
Definition
measure what someone has learned. Most of the tests you take in school are _________. They measure your “job knowledge” in areas like economics, marketing, or human resources.
Term
Intelligence tests (IQ tests)
Definition
Tests of abilities including memory, vocabulary, verbal fluency, and numeric ability
Term
Stromberg Dexterity Test
Definition
Measures the speed and accuracy of simple judgment as well as the speed of finger, hand, and arm
Term
“big five” personality dimensions
Definition
extraversion, emotional stability/neuroticism, agreeableness, conscientiousness, and openness to experience.
Term
Conscientiousness
Definition
shows a consistent relationship with all job performance criteria.
Term
Extroversion
Definition
is a valid predictor of performance for managers and sales employees
Term
Openness to experience and extroversion
Definition
predicts training proficiency for all occupations.
Term
Interest Inventories
Definition
Compare one’s interests with those of people in various occupations
Term
Situational judgment tests
Definition
Personnel tests that “are designed to assess an applicant’s judgment regarding a situation encountered in the workplace”
Term
Management assessment center
Definition
A facility in which management candidates are asked to make decisions in simulated situations and are scored on their performance
Term
The in-basket exercise
Definition
a candidate prioritizes and deals with an accumulation of reports, memos, notes of incoming phone calls, letters, etc.
Term
leaderless group discussion
Definition
a group without a designated leader receives a discussion question and must arrive at a group decision. The group members are evaluated on interpersonal skills, acceptance by the group, leadership ability, and individual influence.
Term
Individual presentations
Definition
A participant’s communication skills and persuasiveness are evaluated by having the participant make an oral presentation on an assigned topic.
Term
interview
Definition
is a selection procedure designed to predict future job performance by soliciting information from a person’s oral responses or oral inquiries
Term
Non-structured Interview
Definition
Interviewer asks questions as they come to mind.
No set format to follow
Term
structured or directive interview
Definition
the interviewer specifies the questions in advance, and maybe even acceptable answers, and then rates the responses for appropriateness or content.
Term
Situational questions
Definition
focus on the candidate’s ability to explain what his or her behavior would be in a given situation. (future focused)
Term
Behavioral questions
Definition
ask interviewees how they behaved in a past situation. (past focus)
Term
one-on-one interview
Definition
where two people meet and one interviews the other
Term
sequential interview
Definition
several people interview the applicant in sequence before a selection decision is made
Term
sequential interview
Definition
several people interview the applicant in sequence before a selection decision is made
Term
panel interview
Definition
the candidate is interviewed simultaneously by a group (or panel) of interviewers, rather than sequentially.
Term
Situational
Definition
Which type of interview would result in a higher mean validity?
Term
Structured
Definition
Which type of interview is generally more useful for predicting job performance?
Term
One-on-One Sequential
Definition
Which type of interview is usually more effective?
Term
Snap judgments
Definition
Research shows that interviewers jump to conclusions about candidates during the first few minutes of the interview, based on test scores, résumés, and first impressions.
Term
Negative emphasis
Definition
Interviewers search for negative information, are more influenced by unfavorable than favorable information, and are more likely to turn from favorable to unfavorable judgments. Therefore, interviewers need to keep an open mind and consciously work against unwarranted negative impressions.
Term
Not knowing the job
Definition
Interviewers who don’t know exactly what the job entails and what type of candidate is best suited make poor matches.
Term
Candidate order (contrast) error
Definition
The order in which the interviewer see applicants affects how the interviewer rates them
Term
Influence of nonverbal behavior
Definition
Applicants who demonstrate more eye contact, head moving, smiling, and similar nonverbal behaviors score higher
Term
Ingratiation
Definition
Recruiters are favorably influenced by interviewees who agree with the interviewer’s opinions and who promote their skills and abilities to create the impression of competence.
Term
Nonverbal implications
Definition
Interviewers should guard against the potential biases of attractiveness, gender, race, or how polished the interviewee appears and concentrate on who the candidate is and what he or she is saying
Term
The polygraph (or “lie detector”) test
Definition
legally prohibited for use by most employers
Term
Pencil-and-paper honesty tests
Definition
psychological tests designed to predict job applicants’ proneness to dishonesty
Term
Employee orientation
Definition
Provides new employees with basic background information needed to perform their jobs satisfactorily
Term
Socialization
Definition
The continuing process of instilling in all employees the attitudes, standards, values and behavior patterns expected by the company
Term
Training
Definition
Methods used to give new or present employees the skills they need to perform their jobs
Term
Training and Development Process
Definition
1. Needs analysis 2. Instructional design 3. Implementation 4. Evaluation
Term
needs analysis step
Definition
identifies the specific knowledge and skills the job requires, and compares these with the prospective trainees’ knowledge and skills, "skills gapping"
Term
instructional design step
Definition
formulates specific training objectives, reviews possible training program content (including workbooks, exercises, and activities), and estimates a budget for the training program
Term
Task analysis
Definition
Detailed study of the job to determine what specific skills are required; for new employees
Term
Performance Analysis
Definition
Verifying that there is a significant performance deficiency and determining whether it should be rectified through training.
Distinguishing between “can’t do” and “won’t do” problems is the heart of performance analysis; for current employees
Term
Designing the training program
Definition
Formulate specific and measureable training objectives
Review training program content (including workbooks, exercises, activities, etc.)
Estimate a budget
Term
Training objectives
Definition
Specify the employee and organizational outcomes that should be achieved as a result of the training
Should specify what the trainee should be able to accomplish after successfully completing the training program
Term
On the Job Training
Definition
Having a person learn a job by actually doing the job.
Types of _______:
Coaching or understudy
Job rotation
Special assignments
Advantages:
Inexpensive
Learn by doing
Immediate feedback
Term
Behavior modeling
Definition
shows trainees the right (or “model”) way of doing something. It then lets trainees practice the model way, and gives feedback on the trainees’ performance. It is a widely used, well researched, and highly regarded psychologically based training method
Term
Computer-based training
Definition
Trainee uses a computer-based system to interactively increase knowledge or skills
Term
Simulated Learning
Definition
Virtual reality-type games
Step-by-step animated guide
Scenarios with questions and decision trees overlaying animation
Online role-play with photos and videos
Software training, including screenshots with interactive requests
Term
Learning Portal
Definition
A section of an employer’s website that offers employees online access to many or all of the training courses they need to succeed at their jobs
Term
Mobile Learning
Definition
Delivering learning content on demand via mobile devices like cell phones, laptops, and iPhones, wherever and whenever the learner wants to access it
“On-demand learning”
Term
Lifelong learning
Definition
Providing employees with continuing learning experiences over their tenure with the firm, with the aims of ensuring they have the opportunity to learn the skills they need to do their jobs and to expand their horizons
Term
Diversity Training
Definition
Techniques for creating better cross-cultural sensitivity among supervisors and nonsupervisors with the aim of creating more harmonious working relationships among a firm’s employees
Term
Managerial development
Definition
Attempt to improve managerial performance by:
imparting knowledge
changing attitudes
increasing skills
Term
Job rotation
Definition
Moving management trainees from department to department to broaden their understanding of all parts of the business
Term
Coaching/understudy method
Definition
The new manager receives ongoing advice from the person he or she is scheduled to replace
Term
In-house development centers
Definition
Usually combine classroom learning (lectures and seminars, for instance) with other techniques, such as assessment centers and online learning opportunities, to help develop employees and other managers
Term
Organizational development
Definition
Change process through which employees diagnose and formulate the change that’s required and implement it, often with the assistance of trained consultants
Term
Action research
Definition
Gathering data about the organization and its operations and attitudes, with an eye toward solving a particular problem
Feeding back these data to the employees, and then having them team-plan solutions to the problems
Term
Lewin's Change Process
Definition
Unfreezing, Moving, Refreezing
Term
Performance management
Definition
The continuous process of identifying, measuring, and developing the performance of individuals and teams, and aligning their performance with the organization’s goals
Term
Performance Appraisal
Definition
Evaluating an employee’s current and/or past performance relative to his or her performance standards
Requires that supervisors set performance standards
Requires that the employee receives the training, feedback, and incentives needed to eliminate performance deficiencies
Term
performance appraisal cycle
Definition
Setting goals and work standards
Assessing the employee’s actual performance relative to those goals and standards
Providing feedback and corrective action to help eliminate performance deficiencies or support to help the employee continue to perform above par
Term
Rating Committees
Definition
Composed of:
Immediate supervisor
3-4 other supervisors
Can help to cancel out bias due to individual raters
Can include the different facets of an employee’s performance observed by different appraisers
Term
Upward feedback
Definition
Subordinates evaluate their supervisors’ performance
Usually for developmental rather than pay purposes
Term
360 degree feedback
Definition
the employer collects performance information from the employee’s supervisors, subordinates, peers, and internal or external customers—generally for developmental rather than pay purposes
Term
Graphic Rating Scale
Definition
Lists a number of traits and a range of performance for each.
The supervisor rates each subordinate by circling or checking the score that best describes the subordinate’s performance for each trait, and then totals the scores for all traits.
Term
Alternation Ranking Method
Definition
Ranking employees from best to worst on a trait
Alternates between highest and lowest until all employees to be rated have been addressed
Term
Paired Comparison Method
Definition
Every subordinate to be rated is paired with and compared to every other subordinate on each trait
Term
Forced Distribution Method
Definition
Manager places predetermined percentages of subordinates in performance categories
Prevents supervisors from leniently rating most employees “satisfactory”
Makes top and bottom performers stand out
Term
Critical Incident Method
Definition
Keeping an anecdotal record of uncommonly good or undesirable examples of an employee’s work-related behavior, and reviewing it with the employee at predetermined times
Term
Behaviorally Anchored Rating Scale
Definition
Combines the benefits of narrative critical incidents and quantitative ratings by anchoring a quantified scale with specific narrative examples of good and poor performance
Term
Management by Objectives (MBO)
Definition
Requires the manager to set measurable goals with each employee and then periodically discuss progress toward these goals
Term
Halo effect
Definition
The rating of a subordinate on one trait influences the way you rate the subordinate on other traits
Term
Central Tendency
Definition
The tendency to rate all employees about average
Term
Leniency or strictness
Definition
Rating all subordinates consistently high or low
Term
Appraisal interview
Definition
Supervisor and subordinate review the appraisal and formulate plans to remedy deficiencies and reinforce strengths.
Term
Performance management
Definition
means continuous, daily, or weekly interactions and feedback to ensure continuous improvement.
is always goal-directed.
means continuously re-evaluating and (if need be) modifying how the employee and team get their work done
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