Shared Flashcard Set

Details

HR Final
HRM Final
133
Business
Undergraduate 4
12/12/2010

Additional Business Flashcards

 


 

Cards

Term
Incentive Pay (12)
Definition

 forms of pay linked to an employee’s performance as an individual, group member, or organization member

Term

  1. Discuss the connection between incentive pay and employee performance

Definition

          Incentive pay is influential because the amount paid is linked to certain predefined behaviors or outcomes

          For incentive pay to motivate employees to contribute to the organization’s success, the pay plans must be well designed

          Can be paid at different levels, whether individuals, teams, departments or even based on the well being of the company as a whole. 

Term
Individual performance, Group performance, and Organizational performance - definitions (12)
Definition

          Individual performance:  based on performance of a single individual

Group performance:   based on performance of a work group or team

          Organizational performance:  based on the company’s overall performance

Term

  1. Describe how organizations recognize individual performance (12)

Definition

          Choices for these categories should consider their strengths and weaknesses and also their fit with the organization.  There is evidence that

          Team-based rewards tend to attract employees who are more team-oriented

          Rewards tied to individual performance make an organization more attractive to those who think and act independently as individuals 

Term
Piecework rate (12)
Definition

wage based on the amount workers produce

 

Can cause workers to overlook quality in order to produce more

Term
Piecework - Straight piecework plan 
Definition
incentive pay in which the employer pays the same rate per piece, no matter how much the worker produces 
Term
Piecework rate - differential piece rates (12)
Definition
incentive pay in which the piece rate is higher when a greater amount is produced
Term
Standard Hour Plan (12)
Definition

an incentive plan that pays workers extra for work done in less than a preset "standard time"

 

          These plans are much like piecework plans

          They encourage employees to work as fast as they can, but not necessarily to care about quality or service

Term
Merit Pay (12)
Definition

          a system of linking pay increases to ratings on a performance scale

          They make use of a merit increase grid

          The system gives the lowest paid best performers the biggest pay increases

Term
Performance bonuses (12)
Definition

          bonuses for individual performance can be extremely effective and give the organization great flexibility in deciding what kinds of behavior to reward

          Performance bonuses are not rolled into base pay

          The employee must re-earn them during each performance period

          Sometimes the bonus is a one-time reward

          Bonuses may also be linked to objective performance measures, rather than subjective ratings

Term
Commissions (12)
Definition

          incentive pay calculated as a percentage of sales

          Some salespeople earn a commission in addition to a base salary

Term
Straight commission plan (12)
Definition

Salespeople who only earn commission


On the other hand, some people earn no commission, just salary.

Term
Gainsharing (12)
Definition

 

group incentive program that measures improvements in productivity and effectiveness and distributes a portion of each to employees

          Gainsharing addresses the challenge of identifying appropriate performance measures for complex jobs

          Gainsharing frees employees to determine how to improve their own and their group’s performance

 

Term
Scanlon Plan (12)
Definition
:  a gainsharing program in which employees receive a bonus if the ratio of labor costs to the sales value of production is below a set standard
Term

 

          Org Conditions Necessary for Gainsharing to Succeed (12)

 

Definition

 Management commitment

Need for change or strong commitment to continuous improvement

Management acceptance and encouragement of employee input

High levels of cooperation and interaction

Employment security

Information sharing on productivity and costs

Goal setting

Commitment of all involved parties to the process of change and improvement

Performance standard and calculation that employees understand and consider fair and that is closely related to managerial objectives

Employees who value working in groups

Term
Group bonuses (12)
Definition

          :  bonuses for group performance for smaller work groups

          These bonuses reward the members of a group for attaining a specific goal, usually measured in terms of physical output

Term
Team Awards (12)
Definition

 Similar to group bonuses, but are more likely to use a broad range of performance measures:

          Cost savings

          Successful completion of a project

          Meeting deadlines

Term
Profit Sharing (12)
Definition

          incentive pay in which payments are a percentage of the organization’s profits and do not become part of the employees’ base salary

          Profit sharing may encourage employees to think like owners

          Evidence is not clear whether profit sharing helps organizations perform better

          Considerations for Setting Up a Profit-Sharing Plan

1.Get supervisors on board with the plan

2.Make  sure employees understand how the plan works

3.Identify the behaviors and results that contribute to greater profits

4.Make sure managers understand that they contribute to the profit-sharing goals by encouraging their employees and keeping them focused on their goals

5.Consider linking rewards to the department’s or division’s performance, if profits can be assigned to the group

6.Make the rewards big enough to matter

7.Time the profit-sharing payments for maximum effect

Term
Stock Options (12)
Definition

Rights to buy a certain number of shares of stock at a specified price

          Traditionally, stock options have been granted to executives

          Some companies are trying to push eligibility for options further down the organization’s structure

          New accounting rules (2005+) mandate that options are expensed

          Many companies reducing use of options and replacing them with stock grants 

Term
Employee Stock Ownership Plan (ESOP) (12)
Definition

an arrangement in which the organization distributes shares of stock to all its employees by placing it in a trust

          This is the most common form of employee ownership

Term
Balanced Scorecard (12)
Definition

a combination of performance measures directed toward the company’s long- and short-term goals and used as the basis for awarding incentive pay

          Combines the advantages of different incentive pay plans

          Helps employees understand the organization’s goals

          The four categories of a balanced scorecard include:

          Financial

          Customer

          Internal

          Learning and growth

          By communicating the balanced scorecard to employees, the organization shows employees information about what its goals are and what it expects employees to accomplish

Term
The processes that can contribute to the success of incentive programs (12)
Definition

  Participation in decisions

Employee participation in pay-related decisions can be part of a general move toward employee empowerment

Employee participation can contribute to the success of an incentive plan

Communication

Communication demonstrates to employees that the pay plan is fair

When employees understand the requirements of the incentive pay plan, the plan is more likely to influence their behavior as desired

Important when the pay plan is being changed

Term
Short Term incentives (12)
Definition

 

bonuses based on the year’s profits, return on investment, or other measures related to the organization’s goals

 

Actual payment of the bonus may be delayed to gain tax advantages

 

Term
Long term incentives (12)
Definition

Include stock options and stock purchase plans

          •Rationale for these long-term incentives is that executives will want to do what is best for the organization because that will cause the value of their stock to grow

Term
Employee Benefits (13)
Definition

Compensation in forms other than cash

 

Benefits contribute to attracting, retaingi, and motivating employees

Benefits packages are more complex than pay structures, making them harder for employees to understand and appreciate

The important role of benefits is one reason that benefits to government regulation

Legally required benefits

Tax laws can make benefits favorable

Term
Benefits required by law (13)
Definition

Social Security: eligible persons receive retirement benefits according to their age and earning history

 

Unemployment Insurance: a federally mandated program to offset the hardships of unemployment

 

Workers compensation insurance: State programs that provide benefits to workers who suffer work-related injuries or illness, or to their survivors

 

Family and Medical Leave (FMLA) Federal law requiring organizations to promote up to 12 weeks of unpaid leave for childbirth, adoption, or serious illness

Term
Social security (13)
Definition

the federal Old Age, Survivors, Disability and Health Insurance program

Also includes hospital insurance (Medicare Part A)

and Supplementary medical insurance (Medicare part B)

 

Taxes both the employeer and the employee

Covers over 90% of US employees

Term
Unemployment Insurance (13)
Definition

Federall mandated program to minimize the hardships of unemployment through payments to unemployed workers, help in finding new jobs and incentives to stabilize employment

 

Employers and employees pay.

Employers pay is based on experience rating

Term
Experience rating (13)
Definition

the number of employees a company has laid off in the past and the cost of providing them with unemployment benefits

 

Careful HR planning can minimize layoffs and keep their experience rating favorable. 

Term
Workers Compensation (13)
Definition

State programs that provide benefits to workers who suffer work-related injuries or illness, or to their survivors. Major categories include:

Disability income

Medical care

Death benefits

Rehab benefits

 

Operate under a no fault liability - worker does not need to show the employer is grossly at fault, and employer is protected from lawsuits

Term
Family and Medical Leave (13)
Definition

Federal law requiring organizations to provide up to 12 weeks of unpaid leave after childbirth or adoption, to care for a seriously ill family member or for an employees own serious illness

Coverage: Employers with 50 or more employees within a 75-mile radius

Requirements: employee must allow eligible employees to take up to a total of 12 weeks unpaid leave within a 12 month period.

Term
Describe the most common forms of paid leave (13)
Definition

Vacation: typically 2 weeks per year

Holidays - Typically 10 days or fewer

Floating holidays: paid holidays that vary from year to year

Sick Leave: Pay for days not worked due to illnesses

 

Flexible approaches

Personal days: days off that employees may schedule according to their personal needs

Paid time off: employer pools personal days, sick days, and vacation days for employees to use as the need or desire arises

Leave without pay: leave of absence to pursue nonwork goals or to meet family needs

Term
Consolidated Omnibus Budget Reconciliations Act (COBRA)
Definition

federal law that requires employers to permit employees or their dependents to extend their health insurance coverage at group rates for up to 36 months  following a qualifying event:
Termination (except for gross misconduct)
Layoff
Reduction in hours
Employee’s death
To extend the coverage, the employee or the surviving spouse or dependent must pay for the insurance, but at the group rate

  1.  

Term
Managed Care (13)
Definition
the insurer plays a role in decisions about health care
Term
Health Maintenance Organization (HMO):   (13)
Definition

a health care plan that required patients to receive their medial care from the HMO’s health care professionals, who are often paid a flat salary and provides all services on a prepaid basis. Generally costs less. But sometimes patients feel like they don’t have the access to the type of medical attention they feel that they might need. 

  1.  

Term
Preferred Provider Organization (PPO): (13) 
Definition

  1.  
    1. a health care plan that contracts with health care professionals to provide services at a reduced fee and given patients incentives to use network providers. 

Term
Flexible spending account (13)
Definition

  1.  
    1. employee-controlled pretax earnings set aside to pay for certain eligible expenses such as health care expenses during the same year (anything unspent will just go back to the ER. Good for predictable health expenses)  

Term
Employee Wellness Programs (EWP) (13)
Definition

  1.  
    1. a set of communications, activities and facilities designed to change health-related behaviors in ways that reduce health risks. (Broad range for goal: healthier employees means they’ll use fewer medical costs 

Term
Term Life insurance (13)
Definition

if the employee dies during the term of the policy, the employee’s beneficiaries receive a death benefit payment
•Usually twice the employee’s yearly pay

  1.  
•Additional benefits may include accidental death and dismemberment
  1.  

Term
Disability Insurance (13)
Definition

  1.  
    1. :  provides protection against the loss of income due to disability which makes employee unable to work
      1. Short-term disability insurance:  insurance that pays a percentage of a disabled employee’s salary as benefits to the employee for six months or less
      2. Long-term disability insurance:  insurance that pays a percentage of a disabled employee’s salary after an initial period and potentially for the rest of the employee’s life
      3. •Disability payments are a percentage of the employee’s salary – typically 50-70 percent 

Term
Retirement Plan - Contributory Plan (13)
Definition

 

  1.  
    1.  
      1. retirement plan funded by contributions from both the employer and employee (most common) 

 

Term

Retirement Plan - Noncontributory Plan (13)

Definition
:  retirement plan funded entirely by contributions from the employer 
Term
Defined benefit plan (13)
Definition

Pension plan that guarantees a specified level of retirement income.  Employer sets up a pension fund to invest the contributions (Puts more risk to employer) 

  1.  

Term
Defined Benefit Plan: Employee Retirement Income Security Act (ERISA) (13)
Definition

  1.  
    1.  
      1. federal law that increased the responsibility of pension plan trustees to protect retirees, established rights related to vesting and portability
        1. •The employer must contribute enough for the plan to cover all the benefits to be paid out to retirees

Term
Vesting (13)
Definition

Earning a right to receive the pension. Must be in the program/ in the company for a minimum amount of years. If you are able to earn vesting, you will be guaranteed to receive retirement.

  1.  
    1.  

Term
Defined Benefit Plan: Portability (13)
Definition

  1.  
    1.  
      1. being able to move retirement savings when changing employers

Term

Defined Benefit Plan: Pension Benefit Guarantee Corporation (PBGC) (13)

Definition

federal agency that insures retirement benefits and guarantees retirees a basic benefit if the employer experiences financial difficulties (If ER goes bankrupt, they will still have to pay you retirement) 

  1.  
    1.  

Term
Defined Contribution Plans (13)
Definition

retirement plan in which an employer sets up an individual account for each employee and specifies the size of the investment into that account


•Money purchase plan
•Profit-sharing and ESOP plans
•401K plans (matching programs)
•These plans free employers from the risks that investments will not perform as well as expected
•The responsibility for wise investing is with each employee 

  1.  
    1.  

Term
Cash Balance Plans (13)
Definition

  1.  
    1. retirement plan in which an employer sets up an individual account for each employee and contributes a percentage of the employees salary; the account earns interest at a predefined rate

Term
Government requirements for Retirement Plans
Definition

  1.  
    1.  
      1. Vesting rights:  guarantee that when employees become participants in a pension plan and work a specified number of years, they will receive a pension at retirement age, regardless of whether they remained with the employer
      2. Summary Plan Description (SPD):  a report that describes a pension plan’s funding, eligibility requirements, risks and other details
        1. •Employers also provide an individual benefit statement which describes the employee’s vested and unvested benefits

Term
How to choose the contents of an employee benefits package (13)
Definition

Decisions about which benefits to include should take into account:
The organization’s goals
The organization’s budget
The needs and expectations of the current and future employees

  1.  
    1.  

•An organization that does not offer expected benefits will have difficulty attracting and keeping employees

  1.  

 

Term
Cafeteria-style pan (13)
Definition

a benefits plan that offers employees a set of alternatives from which they can choose the types and amounts of benefits they want
•Advantages include:
Employees become more aware of the value of the benefits
Employees can match their needs to the benefits
Avoids the cost of non-valued benefits

  1.  
    1.  
      1.  
Disadvantages include:
Higher administrative costs
Selection of frequently used benefits
Tends to be more expensive 
  1.  
    1.  
      1.  

Term
 the importance of effectively communicating the nature and value of benefits to employee
Definition

Organizations must communicate benefits information to employees so they will appreciate the value of their benefits
•Communication is essential so that the benefits can achieve their objective of attracting, motivating, and retaining employees
•An investment of creativity in employee communication can reap great rewards in the form of committed, satisfied employees
•Employees are interested in their benefits, and they need a great deal of detailed information to take advantage of benefits

  1.  

Term

  1. Define human resource management and explain how HRM contributes to an organization’s performance (1)

Definition

  1.  
    1. HRM: the policies, practices, & systems that influence employees’ behavior, attitudes, & performance.
    2. Managers & economists have traditionally seen HRM as a necessary expense, rather than a source of value to the org.
    3. Based on the need to retain & expand their potential of an org’s human capital HRM as a field has grown & become much more strategic in nature.
    4. At companies w/effective HRM: employees & customers tend to be more satisfied, the company also tends to be more innovative, have greater productivity, & develop a more favorable reputation in the community. 

Term
Summarize the types of skills needed for human resource management (1)
Definition

 

  1.  
    1. Human Relations Skills: the ability to understand & work well with other people is important to virtually any career, but human relations skills are especially significant for human resource management today.
    2. Decision-Making Skills: HR managers must make a wide variety of decisions that affect whether employees are qualified & motivated & whether the org is operating efficiently & complying with the law.
    3. Leadership Skills: HR Managers need to play a leadership role with regard to the orgs HR. In today’s environment, leadership often requires helping the org manage change.
    4. Technical Skills: professionals need knowledge of state-of-the-art practices in such areas as staffing, development, rewards, orgl design, & communication

 

 

Term
Labor force (2)
Definition
general way to refer to all people willing & able to work. 
Term
External Labor Market (2)
Definition

individuals who are actively seeking employment

 

 The # and kinds of people in the external labor market determine the kinds of HR avb. To an org. 

  1.  
    1.  
      1.  

Term
Internal Labor Market (2)
Definition

an org’s workers – its employees & the people who have contracts to work at the org.

  1.  
    1.  
      1.  
        1. Direct Employees already in the org.
        2. Derived from it’s external labor market

Term
Key trends in the external labor market (2)
Definition

  1.  
    1.  
      1.  
        1.  
          1. an aging workforce: workers 55 + and older will be the fastest-growing age group. The 25-44 year old group will incr. its #’s slightly, so its share of the total workforce will fall, & Young workers between the ages of 16 & 24 will actually be fewer in #.
          2. Implications of the Aging Workforce: HR pro’s will spend much of their time on concerns related to retirement planning, retraining older workers, & motivating workers whose careers have reached a plateau; Orgs will struggle with ways to control the rising costs of health care & other benefits; Many of tomorrow’s managers will supervise employees much older than themselves; Orgs will have to find a way to attract, retain, & prepare the youth labor force.
          3. diverse workforce: orgs must recruit from a diverse population, establish bias-free HR systems, & help employees understand & appreciate cultural differences. 

Term
Human Resource Information Systems: (HRIS) (2) 
Definition

a computer system used to acquire, store, manipulate, analyze, retrieve, & distribute info related to HR. an HRIS can:

  1.  
    1.  
      1.  
        1. Support strategic decision making
        2. Help the org avoid lawsuits
        3. Provide data for evaluating programs or policies
        4. Support day-to-day HR decisions

Term

Changes in the Employment Relationship

  1.  

 

Definition

 

  1.  
    1.  
      1. Technology & the other trends described require managers at all levels to make rapid changes in response to new opportunities, competitive challenges, & customer demands.
      2. These changes are most likely to succeed in flexible, forward thinking orgs, & the employees who will thrive in such an environment need to be flexible & open to change as well.
      3. Employers & employees have begun to reshape the employment relationship: 
      4. psychological contract: a description of what an employee expects to contribute in an employment relationship & what the employer will provide the employee in exchange for those contributions. 

 

Term
Psychological Contract
Definition

 

  1.  
    1.  
      1. : a description of what an employee expects to contribute in an employment relationship & what the employer will provide the employee in exchange for those contributions.
        1. Today: employers provide competitive compensation & benefits, career development opportunities & flexibility to balance work & home life. Employees contribute continuous skill improvement, reasonable time with the org and extra effort when needed.
        2. Factors Affecting Psychological Contract: Age of employee & changes in economic conditions; Competitive environment, org restructuring, mergers, acquisitions, layoffs, & longer hours; One’s personal situation & needs; Realistic job preview can really help shape the psychological contract because it provides info about what the job is really like. 

 

Term

  1. Define employee empowerment and explain its role in the modern organization

Definition

  1.  
    1. Employee Empowerment: giving employees responsibility & authority to make decisions regarding all aspects of product development or customer service.
Employee Engagement: full involvement in one’s work & commitment to one’s job & company. Associated with: higher productivity, better customer service & lower employee turnover

Term
13th Amendment (1865) (3) 
Definition
Abolished slavery, covers all individuals, enforced by courts
Term
14th Amendment (1868) (3) 
Definition

  1.  
    1. Provides equal protection for all citizens & requires due process in state action; covers state actions, enforced by courts; Bakey vs. State of CA – white are protected against reverse discrimination. 

Term
Civil Rights act of 1964 – Tivle VII (3) 
Definition
Prohibits discrimination based on race, color, religion, sex, or national origin. Pertains to hiring, firing, pay, conditions of employment, or privileges. Applies to orgs with 15+ employees working 20+ weeks a year involved in interstate commerce (State & local governments, employment agencies or labor orgs) But does NOT protect for sexual orientation, older workers or decisions about training opportunities in employment decisions. 
Term
Civil Rights Act of 1991: 
Definition

  1.  
    1. : allowed for victims of intentional discrimination to be awarded compensatory & punitive damages. 

Term
Age Discrimination in Employment Act: (ADEA)
Definition

  1.  
    1. outlaws discrimination in employment decisions based on a person’s age being over 40 whether intentional or not. Includes hiring, firing, setting compensation rates or other employment decisions. 

Term
Affirmative Action
Definition

  1.  
    1. an org’s active effort to find opportunities to hire or promte people in a particular group. 

Term
Americans with Disabilities Act (ADA): 
Definition

  1.  
    1. protects individuals with disabilities from being discriminated against in the workplace.
      1. Disability: a physical or mental impairment that substantially limits one or more major life activities, a record of having such an impairment, or being regarded as having such an impairment. 

Term
Equal Employment Opportunity commission (EEOC)
Definition

  1.  
    1. responsible for enforcing most of the EEO laws (incl. Tile VII, the Equal Pay Act & THE ADA); Created by the CRA of 1964; Receives & investigates complaints, Issues Guidelines
      1. EEO-1 Report: the EEOC’s Employer Information Report, which counts employees sorted by job category, sex, ethnicity & race.
      2. Office of Federal Contract Compliance (OFCCP): the agency responsible for enforcing the executive orders that cover companies doing business w/the federal govt.  (Ensures companies have an Affirmative Action plan which includes utilization analysis, goals & timetable & action steps. 

Term

Ways employers can avoid illegal discrimination and provide reasonable accommodation

 

Dispareate Treatment

BFOQ (Bono Fide Occupational Qualification 

Disparate Impact

Four-fifths rule

Definition

  1.  
    1. Disparate Treatment: differing treatment of individuals, where the differences are based on the individuals’ race, color, religion, sex, national origin, age, or disability status.
    2. BFOQ (Bono Fide Occupational Qualification): a necessary qualification for performing a job (not preferred)
    3. Disparate Impact: a condition in which employment practices are seemingly neutral yet disproportionately exclude a protected group from employment opportunities.
    4. Four-Fifths Rule: Rule of thumb that finds evidence of discrimination if an org’s hiring rate for a minority group is less than four-fifths the hiring rate of the majority group. 

Term

Job analysis

Job description

Job specification 

Definition

  1.  
    1. the process of getting detailed info about jobs. Includes the preparation of job descriptions & job specs:
    2.  focuses on the activities involved in carrying out a job; what the job holder does & how they do it.
    3.  looks at the qualities or requirements the person performing the job must possess (Knowledge, abilities & skills required)

Term
Position Analysis Questionnaire (PAQ)
Definition

  1.  
    1.  
      1. ): standardized job analysis questionnaire with 27 job dimensions and 194 questions about work behaviors, work conditions, & job characteristics that apply to a wide variety of jobs. Questionnaire organizes 6 sections concerning different aspects of the job: Information Input, Mental processes, Work output, Relationships with other persons, Job Context, & others. 

Term

Managing a surplus

Downsizing

Early Retirement Programs

Definition

  1.  
    1.  
      1.  planned elimination of large numbers of personnel with the goal of enhancing the org’s competitiveness. Reasons: reducing costs, replacing labor with technology, mergers & acquisitions, moving to more economical locations
      2. programs that encourage older workers to leave voluntarily. 

Term

Managing a shortage

 

Definition

Overtime and Expanded Hours

Employing Temp/Contract Workers 

Outsourcing 

Term

Overtime and Expanded Hours

Employing Temp/Contract Workers 

Outsourcing 

Definition

  1.  
    1.  
      1.  easiest & most widely used. But employees get burned out (physically & mentally exhausting) Good only for short term.
      2. provides flexibility & lowers costs.
      3. contracting with another org to perform a broad set of services, Guidelines for success:
        1. Look for experienced providers w/adequate resources
        2. Do not outsource work that is proprietary or requires tight security
        3. Start small & monitor the work closely
        4. Look for opportunities in areas that promote growth

Term

Sources of job applicants

Internal sources

Definition

 

  1.  
    1. employees who currently hold other positions in the org.
      1. Encourages people within the company to move up & get more involved in the org.
      2. We already know what these personalities are like, how well they fit in the culture, faster to transfer.
      3. May create a “back-fill” if someone is promoted to a different job.
      4. Job Posting: the process of communicating info about a job vacancy on company bulletin boards, in employee publications, on corporate intranets, & anywhere else the org communicates w/employees.
      5. 1 in 3 positions are filled with insiders.
      6. Want to encourage people to move up in the org but you also want new people for new ideas. 

 

Term

 

Sources of job applicants

External sources

 

Definition

 

  1.  
    1. : if org has no internal recruits or to bring in outsiders for new ideas or new ways of doing business
      1. Direct Applicants: people who apply for a vacancy without prompting from the org
        1. (“self-selection”) people who just apply whether or not there is a vacancy. They are already sold on the company
      2. Referrals: people who apply for a vacancy because someone in the org prompted them to do so.
        1. Nepotism: the practice of hiring relatives (if we hire from referrals often, we tend to create a homogeneous type of environment, lost diversity) 

 

Term

  1. Summarize the government’s requirements for employee selection (6)

Definition

 

  1.  
    1. Orgs should create a selection process in support of its job descriptions
    2. Selection process should be set up in a way that it lets the org ID people who have the necessary KSAO’s
    3. Requires effective measures
      1. Method requires reliable info
    4. Method provides Valid info

 

Term
Reliability
Definition

The extent to which a type of measurement is free from random error

 

Generates consistent results

Term
Validity
Definition
The extent to which performance on the measure (such as test scores_ is related to what the measure is designed to assess (such as job performance)
Term
Criterion-related validity
Definition

A measure of validity based on showing a substantial correlation between test scores and job performance 

 

Most respected approach to validation because a clear, statical relationship is developed between the measure and job performance.

Term
Predictive validation
Definition
research that uses the test scores of all applicants and looks for a relationship between the scores and future performance
Term
Concurrent validation
Definition

Research that consists of administering a test to people who currently hold a job, then compares their scores to existing measures of job performance

 

Requires incumbents to take the assessment and then job performance is collected right away

Term
Content Validity
Definition

Consistency between the test items or problems and the kinds of situations or problems that occur on the job

 

Most appropriate for interviews, as it exposes the test taker of things must likely to happen on the job

Term
Construct Validity
Definition

Consistency betwwn a high score on a test and a high level of construct, as well as between the mastery of this construct and successful performance on the job.


Leadership ability, measures abstract qualities.

Term
Generalizable
Definition

Valid in other contexts beyond the context in which the selection method was developed

 

Tests of intelligence and thinking skills (cognitive abilities) can be generalized

Term
Utility
Definition

The extent to which something provides economic value greater than its cost

 

Selection procedures such as testing and interviews cost money - they should cost much less than the benefits of hiring the new employee

Term
Selection criteria are legal
Definition

All selection methods must conform to the existing laws and legal precedents 

 

Civil Rights Act of 1964 and 1991

Age Duscrunubatuib in Employment

Americans with Disabilities Act

Term
Interviewing techniques: Nondirective interview
Definition

  1.  
    1. The interviewer has great discretion in choosing questions to ask each candidate.
    2. Takes a direction of it’s own, interviewer can ask anything legal.
    3. Not that great, you can get off on a tangent or not job related so you can’t compare applicants, not valid. 

Term
Interviewing Techniques: Structured Interview 
Definition

  1.  
    1. Consists of a predetermined set of questions for the interviewer to ask
    2. •Can get consistent responses

Term
Interviewing Techniques: Situational Interviews
Definition

 

  1.  
    1. A structured interview in which the interviewer describes a situation likely to arise on the job, then asks the candidate what he or she would do in that situation
    2. Any one can answer, can indicate natural ideas of the situation, may have high validity. BUT might not be linked to job performance. 

 

Term
Interviewing Techniques: Behavior Description Interview
Definition

 

  1.  
    1.  A structured interview in which the interviewer asks the candidate to describe how he or she handled a type of situation in the past
    2. •Describes an actual experience the applicant have had. Tends to have high validity. But it’s whether or not they actually did it or not. 

 

Term
Interviewing Techniques: Panel Interview
Definition

  1.  
    1. several members of the organization meet to interview each candidate
    2. Be prepared 
    3. Assign responsibilities
    4. Put the applicant at ease
    5. Ask about past behaviors
    6. Figure out what your employees do, and ask questions that look for similar behaviors
    7. At the end of the interview, make sure the candidate knows what to expect next 

Term
Needs Assessment (7)
Definition
The process of evaluating the organization, individual employees, and an employees’ tasks to determine what kinds of training, if any, are necessary
Term
Organization Analysis
Definition

  1.  
    1. The process for determining the appropriateness of training by evaluating the characteristics of the organization
    2. •The organization analysis looks at training needs in the light of:
    3. The organization’s strategy
    4. Resources available for training
    5. Management’s support for training activities
    6. Training needs vary depending on whether the organization’s strategy is
    7. Based on growing or shrinking
    8. If in growth mode, develop new products/services
    9. Shrinking, it’s hard to justify. Do you want to spend a lot of money on training right now or not?
    10. Expanding to serve a broad customer base
    11. Focusing on the specific needs of a narrow market segment

Term
Person Analysis
Definition

A process for determining individuals’ needs and readiness for training

•Require additional knowledge and skills

•Willing and able to learn

•The primary variables that can influence performance include:

•Person’s ability and skills

•His or her attitudes and motivation

•Organization’s input

•Performance feedback

•Positive consequences to motivate good performance 

Term
Task Analysis
Definition

Process of identifying and analyzing tasks to be trained for

•Usually conducted along with person analysis

•For each task, must identify the knowledge, skills and abilities required to perform the tasks

•Training is most needed for tasks that are important, frequent and at least moderately difficult

•To carry out the task analysis, the conditions in which tasks are performed are looked at:

•The equipment and environment of the job

•Time constraints

•Safety considerations

•Performance standards

Term
Training methods: Classroom Training
Definition

  1.  
    1. :  good when presenting a specific topic to many trainees – one of least expensive and least time consuming
Widely used

Term
Training Methods: Distance Learning 
Definition

  1.  
    1. :  trainees at different locations attend programs over phone and computer lines

Term
Training Methods: Audiovisual Training
Definition
:  to work independently or to supplement classroom instruction
Term
Training Methods: Computer Based Training
Definition
:  course instructions and materials distributed over internet or CD-ROM
Term
Training Methods: E-Learning 
Definition
receiving training via the internet or the organization’s intranet
Term
Training Methods: Electrionic Performance Support Systems
Definition

  1.  
    1. computer applications that provide access to skills training, information and expert advice when a problem occurs on the job 

Term
Training Methods: On The Job Training
Definition

  1.  
    1. training methods in which a person with job experience and skill guides trainees in practicing job skills at the workplace
    2. •To be effective, organization should
    3. •Issue a policy statement describing the purpose of OJT and emphasizing the organization’s support for it
    4. •Specify who is accountable for conducting OJT
    5. •Review OJT practices at companies in similar industries
    6. •Managers and peers should be trained on OJT principles
    7. •Knowing how to train OJT will be helpful, maybe explain what you’re doing before you’re doing
    8. •Employees who conduct OJT should have access to lesson plans, checklists, procedure manuals, training manuals, learning contracts and progress report forms
    9. •Before conducting OJT with an employee, the organization should assess the employee’s level of basic skills 

Term
Apprenticeship
Definition

  1.  
    1. :  a work-study training method that teaches job skills through a combination of on-the-job training and classroom training
    2. •Typically more trade-type jobs, trade-schools, community college, hands on learning        

Term
Internship
Definition

  1.  
    1. :  on-the-job learning sponsored by an educational institution as a component of an academic program
    2. •Tends to be paid, get to know the company, co gets to know you, you may already have a foot in the door as soon as you graduate,  

Term
Simulations
Definition
:  a training method that represents a real-life situation, with trainees making decisions resulting in outcomes that mirror what would happen on the job
Term
Business games and case selections
Definition

  1.  
    1. used to develop employees’ management skills;  requires that participants come together to discuss or progress the game

Term
Behavior Modeling
Definition
training sessions in which participants observe other people demonstrating the desired behavior, then have the opportunities to practice the behaviors themselves
Term
Experiential Programs
Definition
training programs in which participants learn concepts and apply them by simulating behaviors involved and analyzing the activity, connecting it with real-life situations 
Term
Adventure Learning
Definition

  1.  
    1. a teamwork and leadership training programs based on the use of challenging, structured physical activities 

Term

Cross Training

Coordination Training 

Team Leader Training

Action Learning

Definition

  1.  
    1.  
      1. Cross training:  team training in which team members understand and practice each other’s skills so that they are prepared to step in and take another members place
      2. Coordination training:  team training that teaches the team how to share information and make decisions to obtain the best team performance
      3. Team leader training:  training in the skills necessary for effectively leading the organization’s teams
      4. Action learning:  training in which teams get an actual program, work on solving and commit to an action plan, and are accountable for carrying it out

Term
Employee Orientation
Definition

  1.  
    1. training designed to prepare employees to perform their job effectively, learn about the organization, and establish work relationships
    2. •Developing an orientation program that works:
    3. •Start where employees are
    4. •Keep it simple
    5. •Allow for conversation
    6. •Encourage participation
    7. •Help employees communicate
    8. •Help employees remember
    9. •Learn from experience 

Term
Diversity Training and its goals
Definition

  1.  
    1. :  training designed to change employee attitudes about diversity and/or develop skills needs to work with a diverse workforce
    2. •Goals
    3. •Employees should understand how their values and stereotypes influence their behavior toward others of different gender and ethnic, racial and religious backgrounds
    4. •Employees should gain an appreciation of cultural differences among themselves
    5. •Employees should avoid and correct behaviors that isolate and intimidate minority groups

Term
Criteria for Effective Performance Management
Definition

Fit with strategy

Specific Feedback

Acceptability

Reliability 

Validity 

Term
Progressive Discipline (10)
Definition

A formal discipline process in which hte consequences become more serious if the employee repeats the offense

 

 

Term
Alternative dispute resolution (ADR)
Definition

Methods of solving a problem by bringing in an impartial outsider, but not using the court system.

Cheaper

 

 

Term

Alternative dispute resolution (ADR)

Open Door Policy

Peer Review

Mediation

Arbitration 

Definition

  1.  
    1. Open-door policy:  an organization’s policy of making managers available to hear complaints. Try to have the Manager help the situation & solve. Can work up or across the chain of command.
    2. Peer review:  process for resolving disputes by taking them to a panel composed of representatives from the organization at the same levels as the people in the dispute
    3. Mediation: nonbinding process in which a neutral party from outside the organization hears the case and tries to help the people in conflict arrive at a settlement
    4. Arbitration: binding process in which a professional arbitrator from outside the organization (usually a lawyer or judge) hears the case and resolves it by making a decision

 

Term

Job dissatisfaction

Tasks

Roles 

Role ambiguity

Role Conflict

Role Overoad

Personal Dispositions

Negative affectivity

Core Self-evaluations

Supervisors and coworkers

Pay levels

Definition

  1.  
    1. Tasks: many aspects of a task have been linked to job dissatisfaction
    2. •Especially complexity, degree of physical strain and exertion
    3. Roles:  set of behaviors that people expect of a person in a particular job
    4. Role ambiguity:  uncertainty about what the organization expects
    5. Role conflict:  an employee’s recognition that demands of the job are incompatible or contradictory
    6. Role overload:  a state in which too many expectations or demands are placed on a person
    7. Personal dispositions associated with job dissatisfaction
    8. Negative affectivity:  pervasive low levels of satisfaction with all aspects of life
    9. Core self-evaluations:  opinions individuals have of themselves – positive or negative
    10. Supervisors and coworkers:  if people feel they are not valued by their supervisors or coworkers, they may leave
    11. Pay levels: if pay and benefits do not meet the employee’s expectations they may pursue other opportunities

Term

Government regulation affects pay structure:

Equal Employment Opportunity

Definition

  1.  
    1.  
      1.   any differences in pay must be tied to business-related considerations such as job responsibilities or performance. Goal:  Equal pay for equal work

Laws do not guarantee equal pay for men/women, whites and minorities or any other group because so many legitimate factors (from education to choice of occupation) affect a person’s earnings

Term

 

  1.  
    1.  
      1. •Fair Labor Standards Act (FLSA) of 1938: 

 

Definition

 

  1.  
    1.  
      1. Federal Law that establishes a minimum wage and requirements for overtime pay and child labor

 

Term

Minimum wage

Living Wage

Definition

 

  1.  
    1.  
      1.  the lowest amount that employers may pay under federal or state law, stated as an amount of pay per hour
      2. a minimum wage based on cost of living in a particular area

 

Term
Overtime Pay
Definition
Hours worked beyond 40 hrs per week.
Term
Exempt employess
Definition

 

  1.  
    1.  
      1. managers, outside salespeople and any other employee not covered by FLSA requirement for overtime pay

 

Term
NON exempt employees
Definition

 

  1.  
    1.  
      1. :  employees covered by FLSA requirement for overtime pay
      2. •The overtime rate under the FLSA is 1.5 times the employee’s usual hourly rate, including any bonuses, and piece-rate payments
      3. •Overtime pay is required, whether or not the employer specifically asked or expected the employee to work more than 40 hours
      4. •Only four states (Alaska, California, Colorado, Nevada, plus Puerto Rico) have daily overtime rules (> 8 hours / day)
      5. •Employers can choose to have more favorable OT rules, but this is not a legal requirement
      6. •If the employer knows the employee is working overtime but does not pay time and a half, the employer may be violating the FLSA 

 

Term
Child Labor
Definition

 

  1.  
    1.  
      1.  
        1. FLSA sharply restricts the use of child labor  
      2. •Children 16 and 17 cannot be employed in hazardous occupations
      3. •Children 14 and 15 may only work outside school hours for limited time periods
      4. •Cannot work for a company that is involved in interstate commerce. But they are able to work for their parents business.

 

Term
Product Market
Definition

 

  1.  
    1. :  organizations that offer competing goods and services
    2. •Labor costs are a key consideration to stay competitive

 

Term
Labor Markets
Definition

 

  1.  
    1. :  the market in which workers compete for jobs and employers compete for workers
    2. •Companies have to stay competitive with regard to pay to attract the best employees

 

Term
Compra Ratio
Definition

  1.  
    1. : ratio of average pay to the midpoint of the pay range
    2. •Assuming the pay structure is well planned to support the organization’s goals, the compa-ratios should be close to 1
    3. •If > 1:  the average pay is above the midpoint
    4. •If < 1:  the average pay is below the midpoint

 

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