MANA 3320 test 3

giving feedback

### Scheduling performance feedback - should occur regularly, not annually - feedback is most effective when the info does not surprise the employee - frequent feedback supports employee engagement ### Preparing for a feedback session - create right context for meeting - location should be neutral - meeting should be in open dialogue - employees should complete a self-assessment ### Conducting the feedback session - Tell and sell approach: managers tell the employees their ratings and justify (most managers rely on this) - Tell and listen: managers tell employees ratings and let employees explain their side - problem-solving: managers and employees work together to solve issues (most superior)

Staffing the new hotel (ritz carlton)

- Mcbride (general manager) was responsible for choosing the executives

physical job withdrawal

- arriving late - calling in sick - requesting to transfer - leaving the org - not working

self

- have employees evaluate their own performance before feedback - Advantages - contribute valuable information - Disadvantages - exaggerates one's contributions - blame outside forces for their failures - self-appraisals are not appropriate as the basis for administrative decisions

ways to reduce errors

- raters can be trained to avoid errors - data analytics - software can find patterns in what employees do

Teamwork and Empowerment

-Design work so it is performed by teams -Managers coordinate roles and provide resources

Progressive Discipline

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

paycheck

Details about the individual employee's pay

job dissatisfaction

How unhappy and discontent a person is with their job job dissatisfaction produces job withdrawal

If an organization can win customers, employees, or investors through deception, why would ethical behavior contribute to high performance?

So that they can maintain positive long-term relationships with their customers and community working in a climate filled with dishonesty creates stress that can lead to employee burnout

HR dashboard

a display of a series of HR measures, showing human resource goals and objectives and progress toward meeting them Ensures that managers are accountable for results and able to act quickly when conditions change

Employee Assistance Program (EAP)

a referral service that employees can use to seek professional treatment for emotional problems or substance abuse

Walsh-Healy Public contracts act of 1936

covers government contractors receiving $10,000 or more

Knowledge sharing

creating a *learning organization* in which people constantly learn and share knowledge so that they continually expand their capacity to achieve desired results

effectiveness of HRM

customer oriented approach: the customers are the org as a whole

pay planning

data about pay ranges and potential for future earnings

Reward systems

encourages people to strive for objectives that support organization's overall goals HRM role: developing and administering reward systems

annual turnover in different sectors

fast food= greater than 100% manufacturing= 10-15%

Causes of Job Dissatisfaction: Pay and Benefits

measures employees worth

orgs try to avoid the ______ for involuntary and to _______ voluntary turnover

need; minimize

delayering

reduce the levels in the org's job structure, creating broad bands of jobs with a pay range for each (obtain's more flexibility)

Performance measurement should evaluate behaviors based on _____ rather than traits

results

pay grades

sets of jobs having similar worth or content, grouped together to establish rates of pay *for each pay grade or job, the org typically establishes a pay range, using the market rate or pay policy line as the midpoint*

job satisfaction

to prevent job withdrawal, orgs need to promote job satisfaction

voluntary turnover

turnover initiated by employees (often when the organization would prefer to keep them) - Typical employees would be: - best performers: found new opportunities - worst performers: quit before they get fired

cloud computing

uses a network of remote servers hosted on the internet to store, manage, and process data

Modern Human Information Systems (HRIS)

uses relational databases—stores data in separate files that can be linked by common elements. Common elements are fields identifying the type of data. ex. Name, Social security number, job status, hiring date, position, title, rate of pay, citizenship status, job history, job location, mailing address, birth date, and emergency contacts

involuntary turnover (termination)

when the org initiates the leave (employees would prefer to stay)

How can an organization promote ethical behavior among its employees?

written code of ethics performance measures that include ethical standards written channels training in ethical matters and how to provide ethical leadership

5 criterias for effective PM

### Fit with Strategy - PM systems should focus on hiring employee's with behaviors and attitudes that support the org's strategy. goals, and culture - Appraisals should measure if employees are engaging on those behaviors ### Validity - refers to whether the appraisal measures all the relevant aspects of performance and omits irrelevant aspects - Deficiency: info that is not gathered but is relevant (ex. a company measuring employees attendance record, but not if they work efficiently) - Contamination: information that is that is gathered but irrelevant (ex. comparing salespeople based on how many calls does not necessarily improve sales, unless they were only well-planned calls.) ### Reliability - describes the consistency of the results that the performance measure will deliver - interrater reliability: consistency of results when more than one person measures performance - Ex. asking supervisor to rate an employee's performance would likely have low interrater reliability; rating will differ depending on who is rating - Test-retest reliability: refers to the consistency of results over time - If a measure lacks test-retest reliability, determining whether an employee's performance has truly changed over time will be impossible ### Acceptability - performance measure must be accepted by people who use it - Users include supervisors, managers, and employees - Employees are likelier to see feedback as fair if it's compared to their past performance, instead of other coworkers ### Specific Feedback - a performance measure should tell employees what is expected of them and how they can achieve those expectations - Being specific helps meet supporting strategy goals and employee development

HRM applications

### Transaction processing - computations and calculations involved in reviewing documenting HRM decisions and practices - documents include employee relocations, training expenses, and enrollments in courses and benefit plans ### Decision Support Systems - computer software systems designed to help managers solve problems - includes a "what if" feature that managers can use to see different outcomes - by applying internal data or research results, managers can try out different assumptions to see different outcomes - Applications: Forecasting and succession planning ### Expert Systems - computer systems that incorporate the decision rules used by people who are considered to have expertise in a certain area - designed to recommend the same actions that a human expert would in a similar situation - Ex. an expert system could guide an interviewer during the selection process - high quality, increase efficiency, and lower costs - helps avoid errors from biases

Outcomes of high performance

**Interesting jobs → Satisfied workers → Low absenteeism and low turnover → lower costs → higher profits** **satisfied workers → satisfied customers** **Knowledge sharing → innovation →** **High quality products/services → satisfied customers → higher sales → higher profits** **Knowledge sharing → greater productivity → higher profits** - A high performance work system achieves the organization's goals, including growth, productivity, profitability, and a strong reputation - On the way to achieving these goals, this system meets intermediate goals such as high quality, innovation, customer satisfaction, job satisfaction, and reduced absenteeism and turnover

Labor markets

**Labor markets**: consist of workers who want to earn as much as possible. to attract and keep workers, employers must pay at least the going rate in their labor markets - orgs make decisions about whether to pay at, above, or below the pay rate set by these market forces - paying above: - make the org less competitive in product markets - gives an advantage in labor markets - org benefits only if it can attract the best candidates and provide the systems that motivates and enables them to do their best work - paying below: - need creative practices for recruiting and training workers so that they can find and keep enough qualified people

ADR methods

**Open door policy**: an org's policy of making managers available to hear complaints 1. expects two people in conflict should first try to arrive at a settlement together. The first "open door" is the employee's supervisor. If they don't get a resolution, they may go to higher level managers 2. works only if the employee trust management and managers who hear complaints listen and are able to act 3. simplest, most direct, and least expensive way to settle **Peer review**: people in conflict take it to a panel with reps from the org at the same levels as them. Panels hears the case and tries to help them settle **Mediation**: neutral party from outside the org hears the case and tries to help parties settle—mediator can't force a solution (non-binding) **Arbitration**: A professional arbitrator from outside the company hears the case and resolves it by making a decision. 1. most of them are experienced employment lawyers or retired judges 2. both parties have to accept this person's decision 3. faster, simpler, and more private than a lawsuit

Managers must avoid:

**Wrongful discharge** - termination might violate an implied agreement if the employer had promised job security or if the action is inconsistent with company policies - Violation of public policy/laws: terminating an employee for refusing to do something illegal, unethical, or unsafe **discrimination** - employers must make decisions without regard to individual's age, sex, race, etc. **Employees' privacy** - employers have legitimate reasons for learning about some personal matters, especially when behavior outside the workplace can affect the productivity, workplace safety, and employee morale. (needs to ensure info is relevant) - random searches or monitoring (theft, drugs, or any misdeeds on the jobs) are permissible, so long as the employer can establish that there is probable cause and the org has work rules established - important to clarify that no one has been accused!!

What are some ways they can go about measuring effectiveness?

*HRM auditing*: 1. formal review of outcomes of HRM functions 2. Audit may look at any measure associated with successful management of HR 3. May come from org's documents and customer satisfaction surveys *HRM analytics*: measuring a program's success in terms of whether it achieved its objectives and whether it delivered value in an economic sense *Organizational Network analysis* 1. measures communication networks—who is communicating with whom and how often 2. patterns of communication can indicate which roles need to collaborate on projects or who seems to be the center of communication within and between work groups

3 purposes of PM

*Strategic purpose* - helps org achieve business objectives - achieves strategic purpose when employees' behavior is linked with organization's goals - Steps 1. define expectations from employees 2. Measure each employee's performance to identify if expectations are/aren't being met (enables orgs to take corrective action) *Administrative* - ways in which orgs use the system to provide information for day-today decisions about salary, benefits, and recognition programs - can also support decision-making related to employee retention, termination, hiring or layoffs—therefore performance appraisals can have a great impact on an employee's future *Developmental* - serves as basis for developing employees' knowledge and skills - effective performance management makes employees aware of their strengths and weaknesses

Features of a Learning Organization

- ***Engages in continuous learning***— each employee's ongoing efforts to gather information and apply it to their decisions. (aimed at improving quality) - ***Knowledge is shared***—shift focus on generating and sharing knowledge. Training increases employees' value to the org. Training content should be related to the org's goals - ***Critical, systematic thinking is widespread**—*when organizations encourages employees to see relationships among ideas, test assumptions and observe results of their actions - ***Organization is a learning culture***—a culture in which learning is rewarded, promoted, and supported by managers and objectives (encourages flexibility and experimentation) - ***Employees are valued***—employees are the source of its knowledge

procedural justice

- ***Procedural Justice***: a judgement that fair methods were used to determine the consequences an employees receives - **Consistency**: procedures should be consistent from one person to another, and manager should **avoid personal bias** - **Accuracy**: procedures should be based on accurate information, not rumors - **Correctable**: procedures should include safeguards such as channels for appeals or correcting errors - **Representation of all interests**: procedures should take into all account the concerns of all the groups affected—employees, customers, managers, etc. - **Ethical standards**: procedures should be consistent with ethical standards - focus on means to those ends

Rating attributes

- **Graphic rating scale:** lists traits and provides a rating scale for each trait - **Mixed standards scale**: uses statements to describe each trait to produce a final score for the trait - Advantages - easy to develop - can be applied to a wide variety of jobs - Drawbacks - manager decides what is "excellent knowledge" or "commendable judgement" - low reliability b/c managers are likely to arrive at different judgements

Identify the kinds of decisions involved in establishing a pay structure

- A job structure establishes relative pay for different jobs within the org - orgs establish relative pay for different functions and different levels of responsibility for each function - must also establish **pay levels**—the average paid for the different jobs - these decisions are based on the org's goals, market data, legal, and principle of fairness - job structure + pay level = pay structure policy

Management by objectives

- A system in which people in each level of the org set goals in a process that flows from top to bottom, so all employees are contributing to the org's goals - Components: 1. Goals are specific, difficult, and objective 2. Managers and employees work together to set goals 3. Managers gives feedback through the rating period to monitor progress

Managers

- Advantages: - have extensive knowledge to observe employees - can provide accurate and helpful feedback - feedback can improve performance because employees tend to view it as accurate - Disadvantages: - supervisor might not have enough opportunity to observe employees performing job duties

Peers

- Advantages: - have the most opportunity to observe employees in day-today activities - have expert knowledge of job requirements - can provide different perspective and valid assessments - Disadvantages: - Bias rating from friends or rivals - peers are uncomfortable with rating employees on evaluations for decisions that may affect themselves

subordinates

- Advantages: - useful for evaluating managers - Disadvantages - reluctant to say negative things about the people they report to - when employees have the power, managers tend to emphasize employee satisfaction

Summarize legal requirements for pay policies

- Employers must provide equal pay for equal work, regardless of age, race, sex, etc. - differences in pay must relate to factors such as qualifications and or market levels of pay

issues with paying executives

- Executives pay has drawn public scrutiny b/c top executive pay is much higher than avg. workers' pay - Great difference is an issue in terms of equity theory - CEO have a large impact on org's performance, but people complain that when performance falters, their pay does not decline as fast as the org's profits or stocks - top execs help set the org's tone or culture, and employees at all levels are affected by the behavior of the people at the top. Therefore, employees' opinions about the equity of executive pay can have a large effect on the org's performance

Most effective way to improve performance depends on the employee's ability and motivation

- High levels of ability and motivation = perform above or at standard - Lacking: corrective action is needed: - Lack of *ability*: coaching, training, restructuring of job, and more detailed feedback - Lack of *motivation*: praising, referral for counseling, help with stress management - Lack of *both*: direct employee's attention to the significance of the problem by withholding rewards or providing feedback - Lack of *neither*: use rewards, direct feedback, and growth opportunities

Measuring results

- Results might include sales, costs, or productivity Disadvantages - has problems with validity b/c results may be affected by circumstances beyond each employee's performance - measures do not provide guidance on how to improve

Steps to PM

- Step 1 and 2: - identify goals/objectives and develop employee goals and actions to achieve outcomes - Outcomes benefits: customers, colleagues, and the org - Step 3 - provide employees with training, resources, tools, and ongoing feedback (focuses on accomplishments as well as issues) - for effective feedback, both the manager and employee have to value feedback and exchange on a regular basis - Step 4 - Managers and employees discuss and compare goals and behavior - Includes annual formal performance review - Step 5 - Identify what employee can do to capitalize on strengths and address weaknesses - Step 6 - provide rewards or consequences for performance outcomes - Examples: pay increase, bonus, action plans

Conditions that contribute to high performance

- Teamwork and Empowerment - Knowledge Sharing - Job Satisfaction and Employee Engagement - Ethics

issues with paying military

- The uniformed services and employment and reemployment rights act requires employers to make jobs available to any of their employees who leaves to fulfill military duties for up to 5 years - While these employees are performing their services, many are earning far less. To demonstrate their commitment to these employees and to earn the public's goodwill, many companies pay the difference between their military and civilian earnings, even though its costly

Davis-Bacon Act of 1931

- This law requires the payment of "prevailing wages" to employees of contractors and subcontractors working on government construction projects. - must be based on 30% of the local labor force - covers construction contractors that receives more than $2000 in federal money

Social media for HRM includes

- Youtube for instructional videos (training) - Facebook-style networking sites - web pages where employees can praise peers' accomplishments - crowdsourcing tools for performance appraisals - easy way to collaborate (job design) - virtual job fairs/interviews (recruitment)

skill based pay

- a pay system that rewards employees for the job skills they can demonstrate - encourages employees to be more flexible and adapt to changing tech - however, if org doesn't provide systems in which employees can apply new skills, it may be paying them for skills they do not actually use

PM benefits

- acknowledges top performers - encourages communication between managers and employees - establishes consistent standards for evaluating employees - help identify strongest and weakest performers

forced-distribution method

- assigns a certain percentage of employees to each category in a set of categories - Works best if the employees really do vary this much in terms of performance - Overcomes the temptation to rate everyone high in order

Customers

- best source of performance measurement - Advantages - useful for evaluating an employee's performance - helps determine whether the org can improve customer service by making changes in HRM - Disadvantages - customer surveys are expensive

Causes of Job Dissatisfaction: Tasks and Roles

- complexity of task - degree of physical strain and exertion required - value employee places on task *Role*: set of behaviors that people expect of a person in that job - *Role ambiguity*: uncertainty about what the org and others expects from the employee in terms of what to do or how to do it - *Role conflict*: an employee's recognition that demands of the job are incompatible or contradictory - *Role overload/underload*: too many/little expectations/demands placed on a person

Ritz carlton

- deeply respects employees and views them as people, not assets - annual turnover = 20% - most employees set out to find a job, but they found a career (opportunities for advancement) - "five star team" rewards: 5 nights at a carlton hotel of their choice, $500 to spend, round-trip airfare for 2 - tried to prevent their employees from feeling overwhelmed by controlling the occupancy rate (50% opening day, 80% in 3-4 months)

lawsuits usually involve charges of

- discrimination on race or sex - require for orgs to avoid using criteria such as race and age as a basis for employment decisions - unjust dismissal - stereotyping

Job satisfaction and Employee engagement

- employee engagement (degree to which employees are fully involved in their work and the strength of their commitment to their job and company) - brand alignment (HR policies, practices, and programs support or are congruent with an organization's overall culture or brand, including its products and services) -occupational intimacy (feeling passionate about ones work)

Total Quality Management (TQM)

- employees and customers work together to set standards and measure performance, with the goal being improve customer satisfaction - customer may be whoever is using the goods/services produced by the employee - aims to help employees continuously improve customer satisfaction—this avoids rating individuals on outcomes, such as sales or profits Types of feedback 1. subjective feedback from managers, peers, and customers about the employee's personal qualities 2. objective feedback based on work process (comes from statistical quality control) - Disadvantages: does not serve as well to support decisions about work assignments, training, or compensation

Fair Labor Standards Act (FLSA)

- employers must pay at the least minimum wage established by law. - requires overtime pay (1.5 times the regular pay rate, hours worked 40+ each week) and bonuses - Managers, professionals, white collar employees and outside salespersons are **exempt** from the overtime pay requirement - nonexempt: any employees that are covered by FLSA - employers must meet requirements concerning child labor

Causes of Job Dissatisfaction: Personal Dispositions

- higher among employees who are low in emotional stability, conscientiousness, and agreeableness *Negative affectivity:* - low levels of satisfaction with all aspects of life - these people experience feelings such as anger, contempt, disgust, fear, and nervousness - tend to focus on negative aspects of themselves and others *Core self-evaluations* - opinions people have about themselves (positive or negative) - positive core self-evals people tend to have high self esteem, believe they can accomplish their goals, and are emotionally stable - negative self-evals people tend to blame others for their problems, less likely to change

Product markets

- includes orgs that offer competing goods and services (competing to serve the same customers) - seek to buy at the lowest price, so orgs must limit their costs as much as possible. In this way, product markets place an upper limit on the pay an employer can afford to offer - upper limit is important when labor costs are large part of org's total cost and when the org's customers place great importance on price

interactional justice

- interactional justice: a judgement that the org carried out its actions in a way that took the employee's feelings into account - **Explanation of decision**: meets interactional justice if managers explain to employees their decision - **Respectful treatment, empathy, and consideration**: manager should listen, treat with respect and dignity, and empathize with the employee's feelings. - Important for when managing very hostile employees

Workers' Adjustment Retraining and Notification Act (WARN)

- law requires orgs with 100+ employees give 60 days' notice before any closing or layoff that will affect at least 50 employees - violation will result in back pay, fringe benefits, and pay penalties

halo error

- let opinion of one ***quality*** overrule their opinion on someone - can mistakenly tell employees they don't need improvement

organizational behavior modification (OBM)

- managing employees through feedback and reinforcement - Steps 1. Define a set of key behaviors necessary for job performance 2. Use a measurement system to assess whether the employee exhibits the key behaviors 3. Inform employees of the key behaviors, perhaps in terms of goals for how often to exhibit the behaviors 4. provide feedback and reinforcement based on employees' behavior

effective PM

- must think of it as a process - should be reviewed each year to ensure employee's level aligns with company's goals - Contributes to org's competitive advantage - must be given visible support by CEO and other senior managers

horns error

- opinion of one ***flaw*** overrule their opinion on someone - can cause frustration and defensiveness among employees

similar-to-me error

- people tend to give higher evals to people they consider similar to themselves - decisions may be discriminatory (based on race or sex) Contrast error - rater compares individuals against other employees

psychological withdrawal

- physically at work but minds are elsewhere - display a low level of job involvement—degree to which people identify themselves with their job - org commitment may be low

E-HRM

- providing HRM related information over the intranet - Benefits: easy access to information whenever (enroll or select benefits, submit insurance claims, etc.) Employees can train online at a time/place of their choosing

Measures for protecting employees' privacy

- publicizing search policies - apply policies consistently - asking for employee's consent - conducting search discreetly - Ensure info is relevant - Share info with those who need it

simple ranking

- ranking employees from highest to lowest performer - Advantages: counteracts the tendency to avoid controversy by rating everyone fairly - Disadvantage: involves validity, often not linked to org's goals, open to interpretation, hurt employee morale, can result in legal stuff, and questions fairness - Alternation ranking: process of eliminating employees by alternating between best and worst employee as they go down the list - Ex. manager decides which employee is and best and crosses their name off. From the remaining names, they decide which one is the worst and crosses their name off. The cycle continues until all the employees have been ranked

electric monitoring

- records of employees' performance ratings, disciplinary actions and violations - Employees are more likely to accept electronic monitoring if the org explains its purpose and keeps the data private

Political Behavior in Performance appraisals

- sometimes people can distort an eval to advance their personal goals - resulting feedback does not focus on helping employees contribute to org's goals - orgs try to identify and discourage appraisal politics - Most likely to occur when: - raters are accountable for employees - goals of rating are not compatible with one another - appraisal is highly linked to rewards - top executives tolerate or ignore distorted ratings - senior employees tell newcomers distorted ratings stories - Minimize this by: - holding calibration meeting—meetings in which managers discuss employee performance ratings and provide evidence

How to monitor job satisfaction

- surveys (one question pulse surveys, job descriptive index) - compare results from different departments - analyze HR data to look for patterns related to employee separation/retention - exit interviews (can uncover why employees leave and sets the stage for some to return)

distributional error

- tend to use only one part of the rating scale - Leniency happens when rater rates everyone near the top - Strictness happens when the rater favors lower rankings - Central tendency happens when the rater puts everyone near the middle of the scale - makes it difficult to compare employees rates by the same person

Compa-Ratio (CR)

- the ratio of average pay to the midpoint of the pay range - should be close to 1 - when more or less than 1, HR should work with managers to identify whether to adjust the pay structure or practices

HR's primary responsibility is

- to create a formal discipline process - rules should cover: Tardiness, absenteeism, unsafe work practices, poor quantity or quality of work, sexual harassment of co-workers, coming to work under the influence, theft, cyberslacking (conducting personal business online during work) - publish rules in handbooks, company's intranet, bulletin board - system should document rules, offenses, and responses - The file should include recording the nature and date of offense, specific improvements expected, and consequences of offense - can be removed after 6 months if they learned from it

Uses of HRIS

- track employee benefit costs, training courses, and compensation - applicant tracking - store hiring and termination information Helpful for HR planning, recruitment, succession planning, and career development

Ritz carlton job fair

- two day mass recruitment - goal was to treat applicants to a personal demonstration of the service-oriented culture 1. screening questionnaire 2. structured interview 3. fond farewell - 400 eventually hired - treated those who did not get hired the same as everyone else - pre-employment call back process: during this time, employees were treating as customers and the managers were accountable for their satisfaction

describe how employees evaluate fairness of a pay structure

-According to equity theory, employees think of their pay relative to their inputs, such as training, experience, and effort. - to decide if pay is equitable: they compare their pay/input ratio to others pay/input ratio

personnel recruitment

-Mcbride dined at the ritz's competition and gave applications to recruit servers - ads in the newspapers - welfare to work programs

involuntary turnover costs

-Recruiting, selecting, and training replacements -Lost productivity -Lawsuits -Workplace violence

voluntary turnover costs

-Recruiting, selecting, and training replacements -Lost productivity -Loss of talented employees

Summarize how each of the following HR functions can contribute to high performance.

1. **JOB DESIGN**: jobs should be designed to foster teamwork and employee empowerment 2. **RECRUITMENT AND SELECTION:** obtaining employees who have the qualities necessary for teamwork, empowerment, and knowledge sharing. Employers may use group interviews, open-ended questions, and psychological tests to find employees who are innovative and creative 3. **TRAINING AND DEVELOPMENT:** Learning orgs and establishing work teams**.** When orgs selects for teamwork and decision-making skills, it may have to provide training in specific job tasks 4. **PERFORMANCE MANAGEMENT:** making sure employees know the org's goals and what they must do to contribute to goal achievement - Define and measure performance in precise terms - Link performance measures to meeting internal (coworkers) and external customer needs - Measure and correct for the effect of situational constraints 5. **COMPENSATION:** contributes to high performance when it's linked to performance measures and employees should be included in decisions about compensation - Research shows that it is more effective to improve HRM practices as a whole rather than focus on one or two isolated practices

behavior change generated from dissatisfaction

1. employee's first response is to try to change the conditions that generated the dissatisfaction (changes in policy or personnel) 2. if that doesn't work, employee will → Whistle-blowing: taking problems to media hoping that if the public learns about the situation, the org will be forced to change 3. Lawsuits

considerations for a pay levels

1. financial condition of the enterprise - consistent profitability = pay at average or above pay rate 2. firm productivity

How can HRM technology make a human resource department more Productive? How can technology improve the quality of HRM decisions?

1. technology can improve the efficiency of HRM functions by reduce the number of people needed to perform routine tasks and support knowledge sharing 2. automation can free HRM experts to concentrate on ways to determine how HRM can help orgs meet its goals

outcome fairness

A judgment that the consequences given to employees are just. - **Consistent outcomes:** one's employee's consequences should be consistent with other employees' consequences - **Knowledge of outcomes:** Employees should know what to expect by orgs promoting outcome fairness when they communicate policies regarding inappropriate behavior - **Proportion outcomes:** outcome should be proportionate to behavior - Involves the ends of a discipline process

Why should HR departments measure their effectiveness?

By measuring the effectiveness of your HR programs, you can ensure your money is being well-spent. You can also ensure your employees and company are benefitting from the program, which helps strengthen your business.

Dodd-Frank Wall street reform and Consumer Protection act of 2010

Dodd-frank act requires companies to include the ratio of CEO pay to avg. worker's pay in their annual financial statements

employee turnover

Employees leaving the organization

Ethics

In the long run, high performance meets high ethical standards Ethical behavior is a HRM concern. It includes: training performance management discipline policies

Information systems

Managers make decisions about the types of information to gather and the sources of information HRM role: technology gives employees access to information about benefits, training opportunities, job openings, etc.

High performance work system elements and which one involves HRM?

Organizational structure, task design, people, reward systems, information systems All involves HRM

Hot stove rule

Principle of discipline that says discipline should be like a hot stove, giving clear warning and following up with consistent, objective, immediate consequences

How can teamwork, empowerment, knowledge sharing, and job satisfaction contribute to high performance?

Teamwork and empowerment: contributes to high performance when they improve job satisfaction and using employees' ideas and expertise Knowledge sharing: creating a learning organization Job satisfaction: higher performance at the individual level should contribute to higher performance for the org as a whole

What is a high performance work-system?

The right combination of people, technology, and structure to make full use of resources and opportunities in achieving organizational goals

job evaluation committee

a diverse group established to ensure the fair and comprehensive representation of the nature and requirements of the jobs in question *the committee* - may use a point manual to assign an appropriate number of points to each job - can research market pay levels for key jobs and then identify appropriate rates of pay for other jobs based on their number of points relative to the key jobs - the org can do this with a pay policy line, which plots a salary for each job

Outplacement Counseling

a service in which professionals try to help dismissed employees manage the transition from one job to another - may help employees decide to look for another job - may protect the dignity of the employee and promote sense of fairness - goal: help the former employee with psychological issues associated with losing a job while at the same time helping them look for another job

job withdrawal

a set of behaviors with which employees try to avoid the work situation physically, mentally, or emotionally

pay range

a set of possible pay rates defined by a minimum, maximum, and midpoint of pay for employees holding a particular job or a job within a particular pay grade

Behavioral observation scale

a variation of a BARS which uses all behaviors necessary for effective performance to rate performance at a task - developed from critical incidents - uses many statements to define all behaviors necessary for effective performance - Disadvantages: amount of information required - Advantages: easy to use, provides feedback, maintaining objectivity, and suggests training needs

learning organization

an org that supports learning by enabling all employees to acquire and share knowledge

external equity

describes fairness of one's pay relative to what employees in other orgs earn for doing the same job

internal equity

describes the fairness of one's pay relative to other employees in the same org

market data

description about the data used for decision making

Task design

determines how details of the organization's necessary activities will be grouped, whether into jobs or team responsibilities - make jobs efficient while encouraging high quality - HRM role: job analysis and design

pay differentials

differences in working conditions or labor markets to adjust pay levels

pay strategy

explanation of how pay decisions relate to the organization's objectives

open salary

full disclosure of the organization's pay ranges and salaries paid

HR outcomes

high employee performance, retention, job satisfaction, engagement

what is preferred?

high retention rate and low turnover rate (will achieve HR cost savings)

critical incident method

method of performance measurement based on managers' records of specific examples of the employee acting in ways that are either effective or ineffective - Advantages: give feedback on employee's strengths and weaknesses and see if the incidents are helping the company - Disadvantages: requires a lot of effort, may not support comparisons among employees

paired-comparison method

method of performance measurement that compares each employee with each other employee to establish rankings

Behaviorally Anchored Rating Scale (BARS)

method of performance measurement that rates behavior in terms of a scale showing specific statements of behavior that describe different levels of performance (builds on critical incidents) - statements are anchors of performance levels - discards many examples in creating a rating scale - Advantages: improve interrater reliability - Disadvantages: bias the manager's memory

Alternative Dispute Resolution (ADR)

method of solving problems by bringing in an impartial outsider but not using the court system

Explain how orgs design pay structure related to jobs

orgs begin with a job evaluation (measures worth of their jobs)

People

right people are the keys elements of high-performance HRM role: providing people who are well suited and prepared for their jobs through training, development, etc.

Performance Management

the process through which managers ensures that employees' activities and outputs contribute to the org's goals

organization structure

the way the org is grouped into divisions, departments, and reporting relationships - top management makes decisions - promotes cooperation, learning, and improvement

3 components of job satisfaction

values, importance of values, perception