MGMT 351 FINAL
Voluntary Turnover
turnover initiated by employees (often when the organization would prefer to keep them)
What is performance management?
"continuous process of identifying, measuring, and developing the performance of individuals and teams and aligning performance with the strategic goals of the organization" (Aguinis, 2013) Systematic way to examine and develop an employee's performance in his/her job
What is a market pay (market review) survey? What is the primary purpose of a market pay survey?
A form of bench marking How much are our competitors paying, and is there any reason we should be different?
What is transfer of training (i.e., training transfer)? Why should organizations be concerned with it?
Ability of a trainee to apply the behavior, knowledge, and skills acquired in one learning situation to another.
What is the difference between absolute rating scales and comparative (relative) ranking? Why can comparative (relative) rankings scales be problematic?
Absolute compare performance to pre-established criteria Graphic rating scale Behaviorally anchored rating scale (BARS) Behavioral observation scale Essay appraisal form Comparative compare performance of focal ratee to other ratees' performance Simple Rank Order Forced distribution Paired Comparisons Becomes increasingly more difficult as the number of employees to be rated increases
Involuntary Turnover
An employee terminated by the organization against their own wishes (when the employee wishes to stay)
What is the difference between a behavior vs. results approach to measuring performance?
Behavior Approach: Emphasizes what employee does on the job and does not consider employee's traits or the outcomes resulting from his/her behaviors Results Approach: Emphasizes the outcomes and results produced by the employee, and does not directly consider the employees' traits or behaviors
What is behavior modeling training and for what type skills might it be best suited for?
Behavioral modeling training (BMT) usually involves a trainee observing a person (model) performing a behavior (either live or in a video), practicing it, and then receiving feedback about their own performance.
What is the difference between conceptual performance and an actual performance measure?
Conceptual performance: a concept or abstract idea of the "essence" of a job—not something we can measure directly Actual performance:the measure(s) actually used to try and capture conceptual performance All actual performance measures are flawed in some way because they have some degree of error
Be able to briefly describe at least two methods for enhancing perceptions of procedural justice.
Consistency: procedures are applied consistently across time and persons Information Accuracy: procedures are based on information that is perceived to be true
What is the distinction between contamination vs. deficiency when it comes to the validity of a job performance measure? What is relevance? Why are these concepts importance when considering the validity of performance measures?
Deficiency: the degree to which performance measure fails to overlap with the conceptual performance (conceptual) Contamination: performance measure includes something it should not, leading to error (actual) Relevance: the degree to which the performance measure overlaps with conceptual performance we want the relevance in this overlap to be as large as possible. So we can more formally define relevance as the degree to which the performance measure overlaps with the conceptual performance domain.
What are the three components of a performance management system?
Defining performance Measuring performance Delivering performance feedback
According to research, what size of relationship does pay level share with job satisfaction? What is one explanation for why this relation is the size that it is?
Employees believe that pay is the number one driver of their job satisfaction (Schramm, 2014) However, the relationship between pay level and job satisfaction is small (r = .15) (Judge et al., 2010) Other aspects of the job can be rewarding itself. The challenge of the job, the rigour, the responsibility and so fort. So we should never underestimate those other forms for return for work, and job design could be a great way to motivate people, and to satisfy people with the work that they're doing.
•Be able to describe the following theories: Expectancy Theory, Equity Theory, and Organizational Justice Theory. Be able to think of real life applications of these theories in the context of reward systems; that is, what kind of guidance can each of these theories bring when developing or evaluating a compensation system?
Equity Theory: Provides a way of understanding how an individual's sense of fairness is influenced by others with whom they compare themselves. Employees compare ratio of what they bring to a situation and what they get out of the situation to what others bring to and get out of the same or similar situations Expectancy Theory: Developed by Vroom to explain what motivates people to behave one way versus another. Expectancy (effort performance) can be hindered by: Low self-efficacy Lack of necessary KSAOs Lack of necessary training Lack of necessary resources Lack of supportive leadership Organizational Justice Theory: Originated from Equity Theory, but differs in that it also focuses on the fairness of process and interpersonal treatment (in addition to the fairness of outcomes) Types of Organizational justice theory (Procedural[fair process], distrubutive[fair outcome], interactional[handled respectfully)
Be able to briefly describe at least two methods for enhancing perceptions of interactional justice.
Explanation: emphasize aspects of procedural justice that justify the decision Social Sensitivity: treat the person with dignity and respect
What is external competitiveness (which is also called "external equity")? Why is it important?
External competitiveness(external equity): refers to the pay of an organization in relation to its competitor(s) This helps companies determine where they stand in the market and how much they should be paying their employees depending on competitors.
What is the difference between extrinsic motivation and intrinsic motivation? According to the recent Cerasoli et al. (2014) meta-analysis, how do they relate to the quality and quantity of performance?
Extrinsic motivation: Pay Promotions Praise Intrinsic motivation: Task enjoyment Personal growth Achievement The relationship between intrinsic motivation and performance is stronger when extrinsic motivation is present Extrinsic better predicts the QUANTITY of performance Intrinsic better predicts the QUALITY of performance
Separation
Firing or terminating employees for poor performance or counterproductive work behaviors
What is internal alignment (which is also called "internal equity")? Why is it important?
Internal alignment: refers to pay relationships among different jobs, skills, and/or competencies within a single organization
What is the value of training evaluation? Why do some organizations skip this important stage?
It is important to evaluate whether a training program actually worked—that is, did it improve the outcomes that it was supposed to? How else can we evaluate the effectiveness of a training program? Some companies skip this step because it's too time consuming, costs money, and the ambiguity of the process.
What is a job structure? What is a pay structure?
Job Structure: The ranking of jobs within an organization based on their respective worth Pay Structure: The way in which an organization applies pay rates to different jobs, skills, or competencies
What is job evaluation, and why is it important?
Job evaluation is a technique which helps to rate the job in terms of complexities and importance. It rates the job but the job holder. This helps determining and fixing wages accordingly.
What are the three market positions that we discussed in class?
Lag the market = not pay as much (many positions open) Meet the market = pay on the median Lead the market = pay more (competition) Mixed-market decision including many factors. Align being ethical and paying people appropriately.
What are the training objectives and why are they important for the success of a training program? How can training objectives contribute to training evaluation
Learning objectives (also called training objectives) are goals that are set prior to training that describe (often broadly) what learners/trainees will gain from the training. For example, check out the learning objectives that I include at the beginning of each week's content page in D2L
Be able to define and identify leniency error, severity (strictness) error, and central tendency error. That is, would you know them if you saw them?
Leniency error: rating everybody good/excellent (too lenient) Strictness error: the opposite (rating everyone bad) Central tendency error: rating average all across
What are the four steps of a needs assessment? Why are they important?
Organizational Analysis: Identify a broad set of organizational issues that can help or hinder the effectiveness of a training program Task Analysis: identify which tasks employees currently perform on their job, what KSAOs they need, what critical incidents employees deal with on the job, and the conditions under which tasks are performed Demographic analysis: Identify a wide range of issues involved with understanding who the trainees like their Education level, Age, Familiarity with technology, Motivation to learn, Personality traits Person Analysis. This includes the following steps: Assess current KSAOs and competencies of employees. Develop training goals. Consider employee characteristics (e.g. demographics, motivation, education). and what they are lacking in.
What are the three forms of organizational justice that we discussed in class? Be able to define and recognize each of them
Organizational Justice (all about fairness & justice): Originated from Equity Theory, but differs in that it also focuses on the fairness of process and interpersonal treatment (in addition to the fairness of outcomes) Types of Organizational justice theory (Procedural[fair process], distrubutive[fair outcome], interactional[handled respectfully)
In the context of employee readiness for training, why is a perceived need for training important? In general, what are some ways you could ensure that employees have a high perceived need for training?
People tend to preform better in the training when they perceive that there is a perceived need for the training. To make sure that people are gonna be ready for training is to make sure you communicate that there's a need for training.
What is the difference between performance management and performance appraisal? How are the two terms related? Which term is gaining more acceptance in HRM today? Why?
Performance appraisals are one component of a performance management system Performance Appraisal (PA): "measurement of employee performance based on pre-established criteria, and communication of this information to the employee" performance management is more acceptable
In what way can we link a performance management system with a compensation/reward system?
Performance management systems can also integrate nicely with our reward systems, and ideally, they should especially if we wanna have a pay for performance system in our organization.
What is performance? And, how do we define job performance?
Performance: Sometimes referred to as defining the criterion or job domain Job Performance: assesses whether a person performs a job well
Training
Planned effort to facilitate learning of job-related knowledge, skills, and behaviors by employees
Organizational Justice
Procedural Justice: Degree to which a perceived fair process is used to come to a decision Distributive Justice: Degree to which the outcomes received are perceived as fair Interactional Justice: Degree to a person perceives that he/she is treated with respect and kindness during interpersonal interactions
What are the two differences between pre-experimental designs and true experimental designs? [HINT: The answer is experimental designs use a control condition/group and random assignment of trainees to conditions/groups.]
True: considered one of the most rigorous designs because they control for many threats to validity—not only is there a control group, but there is random assignment (R) to each group Pre: Considered the least rigorous
According to equity theory, what might an underreward condition motivate employees to do?
Underreward might motivate employees to steal and gain rewards. It decreases motivation and performance
Why is it typically insufficient to evaluate a training program using only affective (called "reactions" in your book) questions (outcomes) (e.g., "Did you enjoy the training?")? What are the three other types of training outcomes that we covered in the video lecture that can also be used when evaluating a training program? [Note that in the video lecture, I use a different framework than in the textbook; and while the frameworks overlap to some extent, let's focus on the one that I include in the video lecture.]
Reactions like if they liked the training or not doesn't give us anything to work with and doesn't necessarily show that the training is effective. There's three different training outcomes we can measure by 1. Cognitive outcome: Increases in K Measured with paper-pencil tests or computer-based exercises 2. Skill-based outcome:Increases in S Measured using trainer, peer, or supervisor evaluation, work sample tests, or computer-based exercises 3. Affective outcome: Increases in O (e.g., self-confidence, acceptance of diversity, safety attitudes) Measured using surveys and interviews
In terms of total returns for work, what are two examples of relational returns?
Relational returns: Nonmonetary incentives and rewards, such as new learning and developmental opportunities Recognition & status Employment security
What are the three components of feedback?
Source=Message=Recipient
Be able to briefly identify and describe at least two antecedents of job dissatisfaction.
Tasks & Roles Low task complexity & variety Low autonomy Low task significance Pay & Benefits Low pay relative to market competitors Few benefits relative to market competitors
Compared to a post-test only (with the control group) experimental design, what is the primary advantage of a pre-test, post-test (with the control group) experimental design?
The researcher can see how both groups changed from pretest to posttest, whether one, both or neither improved over time. If the control group also showed a significant improvement, then the researcher must attempt to uncover the reasons behind this.
What are the three different sources of feedback? Can you think of an example of feedback from the task environment?
The three sources of feedback are: observer of past behavior, task environment, self-ratings of past behavior. "Imagine you're taking a training module, and it's part of an online computer adaptive module. Every time that you get something wrong you might get an error message or a message that says, you got this incorrect, here's the right response. You are actually getting feedback from a machine in that case. And more specifically from a computer program."
What is the difference between a traditional reward system and a pay-for-performance reward system?
Traditional Reward System: pay determined by the job description for a position a worker fills—not necessarily by the quantity or quality of their work Pay-for-Performance (PFP) Reward System: pay determined by how well workers perform on the job—in other words, by the quantity or quality of their work (i.e., job performance) Also known as contingent pay plans
What is a climate for transfer (i.e., transfer climate)? What will likely happen if there is a weak climate for transfer?
degree to which the social climate among employees back in the work situation supports training and the particular type of training (Tracey et al., 1995) Positive transfer climate has been found to enhance training transfer (Blume et al., 2010)
Why are validity, reliability, specificity, strategic congruence, and acceptability important to consider when developing or evaluating a performance management system?
Validity:producing the desired results-the extent that a performance measure assess all of the relevant aspects of performance. Reliability:a measure of the accuracy of a test or measuring instrument - getting the same results consistently Specificity: relevant and appropriate to the job- the extent to which a performance measurer tells employees what is expected of them and how they can meet theses expectations Strategic congruence:the extent to which a performance management system elicits job performance that is congruent with the organizations strategy. acceptability: refers to whether the people who use the performance measurer accept it. It helps measure and determine the performance needed for the organization.
Should trainees be encouraged to make errors during training? Why or why not?
Yes. Errors determine what needs to be worked on in the training program and what is effective. It also helps trainees learn and increase job performance.
What is a pay differential?
adjustment to a pay rate to reflect differences in working conditions or labor markets. Differential pay is a financial term that refers to extra money earned by an employee for working a certain shift. Employees often receive extra compensation for working "off" shifts, such as night shift or third shift.
What is the primary difference between base pay and variable pay (e.g., individual incentive, bonus)?
base pay (fixed) = what is in the description/doesnt matter how much effort. Paid out regardless Variable pay = when employees hit their goals (e.g., individual incentives, bonus, commission, cash award, lump sum)
What are the three key components of expectancy theory? Be able to define them. It might help to draw a picture of the theoretical framework. What value can expectancy theory bring to the table when someone is designing a pay-for-performance system?
effort(expectancy)-performance(instrumentality)-outcome/rewards(valence)
Retention
keeping those employees who meet and exceed performance standards.
Why should we conduct a needs assessment before developing a training program?
needs assessment is a process by which an organization identifies the key factors in the organization that will support the training program, what needs to be trained, and who needs the training. we should conduct a needs assessment so we know where training is most needed and to be able to have good training for new workers.
Why is the manager (or supervisor) support important in the context of training?
supervisor support offered to trainees takes the form of encouragement in order to practice newly learned skills and also help enhance their rate of transfer by becoming more familiar themselves with the programs and discussing how to apply newly learned skills to jobs
