MGMT TEST 2

1. Define the concept of attitudes and list/describe the three main components of an attitude.

- 1. Affective = "I feel" 2. Cognitive = "I think" 3. Behavioral = "I intend"

1. Describe the point system of job evaluation, and demonstrate how an organization would conduct a job evaluation using the point method.

- A quantitative job evaluation procedure that determines the relative value of a job by the total points assigned to it. Steps: 1. Determine compensable factors . 2. Assign points to degrees of compensable factors. 3. Rate the job based on the compensable factors. 4. Total points and group into grades/classifications.

1. Define the concept of values.

- Abstract ideals that guide one's thinking and behavior across all situations (are relatively stable)

1. Explain the differences between the following incentive rewards: bonus and raise.

- Bonus - short term incentive - Raise - long term - long term incentive

1. Explain how the job characteristics model can be used to motivate employees.

- By enhancing the core job dimensions of a person's job, their motivation is increased as well. Finding where they are being dissatisfied or not as fulfilled, we can fix that and increase overall motivation.

1. Describe and differentiate between the broad methods of employee performance appraisal (comparative, attributes, behavior, results, quality).

- Comparative - method of employee performance appraisal where you compare performance with others, by ranking. Helps reduce leniency, central tendency, and strictness. - Attributes - method of employee performance appraisal that focuses on the extent to which individuals have certain attributes (characteristics/traits like initiative, leadership, and competitiveness) considered desirable to the company. - Behavioral- method of employee performance appraisal that attempts to define the behaviors an employee must exhibit to be effective in the job. - Results - method of employee performance appraisal that focuses on managing the objective, measurable results of a job or working group - Quality - method of employee performance appraisal with a customer orientation. Prevention approach to errors, and continuous improvement=improving customer satisfaction is the primary goal.

1. Discuss the characteristics a performance management system should have to withstand legal scrutiny.

- Conduct a valid job analysis related to performance - Base system on specific behaviors or results - Train raters to use system correctly - Use multiple raters - Review performance ratings with employees and allow appeals - Provide guidance/support for poor performers.

1. Distinguish between content and process theories of motivation.

- Content theories - focus on identifying factors such as needs and satisfaction, that energize motivation - Process theories - focus on explaining the process by which internal factors and environmental characteristics influence employee motivation

1. Define the concepts of distributive, procedural, and interactional justice and explain how each relates to work motivation.

- Distributive- reflects the perceived fairness of how resources and rewards are distributed or allocated. - Procederal - perceived fairness of the process and procedures used to make allocation decisions. - Interactional - relates to the quality of the interpersonal treatment people receive when procedures are implemented.

1. Outline the major provisions of the Equal Pay Act of 1963 and the Fair Labor Standards Act of 1938.

- Equal Pay Act of 1963 - Comparable Worth men and women be given equal pay for equal work in the same establishment. Fair Labor Standards Act (FLSA) of 1938 -Sets minimum wages, maximum hours per week, overtime pay, prohibits most employment of minors. -Hourly vs. Salary Work -Hourly work paid on an hourly basis

1. Explain how stock options work as a component of executive compensation.

- Executives are given the right to purchase shares of their organization at an established price for a fixed period of time (the price is set by the market value) - The purpose of stock ownership is to link the executives personal success with the success of the company - motivation to aim for the success of the company and means of retaining key executives

1. Discuss the criticisms of merit pay plans.

- Focus on merit pay discourages teamwork o Measurement of performance is unfair and inaccurate o Too much emphasis on individual performance o Merit pay does not really exist- high performers paid more than marginal and poor performers

1. Discuss the basic premises of gainsharing as a group incentive plan.

- Gainsharing: form of compensation based on group or plant performance rather than organization wide profits that does not become part of the employee's base salary

1. Define the concept of broad-banding as it relates to compensation.

- Having extremely wide salary bands. - Encourage the development of broad employee skills, because non-managerial jobs are appropriately valued and skill development is rewarded.

1. List the basic forms of compensation (hourly/salary, exempt/nonexempt).

- Hourly wages vs. Salaries Wages: employees are paid hourly Salaries: the compensation of salaried employees is defined on a monthly or yearly basis - Exempt vs. Non-exempt - Is the employee covered by the Fair Labor Standards Act (FLSA)? Non-exempt: covered by FLSA - employees must receive at least the minimum wage and overtime

1. Explain the major differences between team compensation plans and individual incentive plans.

- Individual Incentives: reward individual performance, must be earned and re-earned, performance is measured by physical output Team Compensation Plans: measure performance in teams with physical output

1. Describe the following important components in the process of collecting market wage data: market pay surveys, benchmarking, key/non-key jobs.

- Key jobs: benchmark jobs that have relatively stable content and are common to many organizations so that market-pay survey data can be obtained. - Non-key jobs: Jobs that are unique to organizations and cannot be directly valued or compared through the use of market surveys. - Market Pay Surveys:Provide information about the external worth of jobs by seeking information on the wages other employers pay in the organization's relevant labor market - Benchmarking: Procedure by which an organization compares its own practices against the competition.

1. Explain how an organization combines job evaluation and market pay survey data to produce a pay structure. Include the concepts of pay policy-line and pay grades in your discussion.

- Market Survey Approach: Emphasizes external comparisons. It bases pay on market surveys that cover as many key jobs as possible. Pay Policy Line: Mathematical expression that describes the relationship between a job's pay and its job evaluation points. Pay Grades: Grouping jobs of similar worth or content together for pay administration purposes. Range spread - distance between minimum & maximum amounts in a pay grade.

1. Summarize the methods raters can use to improve subjective performance appraisals.

- Observe other managers making errors. - Actively participate in discovering their own errors. - Practice job-related tasks to reduce the errors they tend to make.

1. List and describe the four functions of culture within an organization.

- Organizational Identity: helps associate who they are Collective Commitment: shared purpose, objectives; goal-based behavior Social System Stability: extent to which work environment is perceived as positive/reinforcing, and if conflict/change are effectively managed. Shaped behavior: helps members make sense of their surroundings, provides a "clear line of sight" between what they do and business goals/success

1. Discuss the difference between pay level and job structure.

- Pay level - the average pay, including wages, salaries, and bonuses, of jobs in an organization Job structure- the relative pay of jobs in an organization

1. Define the different types of reinforcement/operant conditioning (positive reinforcement, negative reinforcement, punishment, extinction) and distinguish between them.

- Positive Reinforcement - o the process of strengthening a behavior by contingently presenting something pleasing - Negative Reinforcement o strengthens a desired behavior by contingently withdrawing something displeasing. - Punishment - o the process of weakening behavior through either the contingent presentation of something displeasing or the contingent withdrawal of something positive. - Extinction - o Weakening a behavior by ignoring it or making sure it is not reinforced.

1. Describe the factors that determine pay level, including product market competition, labor market competition, and market pay surveys.

- Product-market competition: Sell goods and services at a quantity and price that will bring a return on investment. Labor-market competition: Amount an organization must pay to compete against other organizations that hire similar employees

1. List and describe the following individual incentive plans: profit sharing, stock options, employee stock ownership plans.

- Profit Sharing: payments are based on a measure of organization performance (profits), and payments do not become a part of base pay - Advantages: profit sharing may encourage employees to think more like owners, labor costs are automatically reduced during difficult economic times, and wealth is shared during good times - Disadvantages: workers may perceive their performance has less to do with profit than top management decisions over which they have little control - Stock Options: plan that gives employees the opportunity to buy company stock at a previously fixed price - Employee Stock Ownership Plans (ESOPs): give employers certain tax and financial advantages when stock is granted to employees (can carry significant risk for employees)

1. Describe the relationship between pay and individual employee behavior from the following three perspectives: reinforcement theory, expectancy theory, and agency theory.

- Reinforcement Theory: in Thorndike's Law of Effect, a response followed by a reward is more likely to recur in the future, the importance of a person's actual experience in receiving the reward is critical, if high performance is followed by a reward, high performance is likely to be repeated - Expectancy Theory: says that motivation is a function of valence, instrumentality, and expectancy; it focuses on the link between rewards and behaviors and emphasizes expected (rather than experienced) rewards and on the effects of incentives - Agency Theory: focuses on divergent interests and goals of the organization's stakeholders and the ways that compensation can be used to align these interests and goals

1. Identify the following rating errors that can influence performance ratings: similar-to-me effect, strictness, central tendency, leniency, contrast effects, halo effect, horns effect.

- Strictness/Leniency o a rating error in which the appraiser tends to give all employees either unusually high or unusually low ratings. (distributional) - Central Tendency o a rating error in which all employees are rated about average. (distributional) - Similar-to-me o an error in which an appraiser inflates the evaluation of an employee because of a mutual personal connection. - Contrast Effects o a rating error in which an employee's evaluation is biased either upward or downward because of comparison with another employee just previously evaluated. - Halo/Horns Effect o a rating error in which an appraiser's evaluation of an employee's performance is biased/skewed because of the appraiser's overall impression of the employee as good or bad

1. Define the concept of job evaluation.

- The process of determining the relative internal worth of jobs.

1. Define the concept of organizational culture.

- The set of shared, take for granted implicit assumptions that a group holds and that determines how it perceives, thinks about, and reacts to its various environments.

1. Describe the broad purpose of the Competing Values Framework of organizational culture.

- Whether an organization focuses its attention on internal dynamics/employees or outward toward/external environment (customers/shareholders) and an organizations preference on flexibility/discretion or control/stability.

1. Summarize the basic principles of Equity theory.

- a model of motivation that explains how people strive for fairness and justice in social exchanges or give-and-take relationships. b. Focus on an individual's feelings of how fairly he or she is treated in comparison with others c. Person compares their inputs to their outcomes. If inputs are lower than outcomes, then they are over rewarded. If inputs are higher than their outcomes, then they are under rewarded.

1. Summarize research findings on the work outcomes that McClelland's theory allows us to predict.

- a. Managers who have a high need for affiliation are not typically as successful because they may have difficulty resolving conflicts and be more likely to make exceptions to make people happy b. Managers who have a high need for power will produce a strong work ethic and commitment to the organization, but may not possess the required flexibility and people-centered skills to be effective in leadership roles. c. Managers who have a high need for achievement are the best leaders, although they can have a tendency to demand too much of their staff in the belief that they are all similarly and highly achievement-focused and results-driven.

1. Summarize the basic principles of Job Design for motivation.

- any set of activities that involves alteration of specific or interdependent systems of jobs or intent of improving the quality of employee job experience and on-the-job productivity.

1. Describe Ajzen's Theory of Planned Behavior.

- attitude toward behavior, subjective norms, and perceived behavioral control, together shape an individual's behavioral intentions and behaviors.

1. Explain the concepts of internal and external equity with regard to compensation.

- external=what other comp. pay for similar job internal=comparison of pay with-in same company

1. Summarize the basic principles of goal-setting theory, and explain how goal-setting can be an effective motivational tool for managers.

- helps individuals, teams, and organizations achieve success. - Specific, difficult, but attainable goals lead to higher performance than no goals or "do your best" goals.

1. Describe how a merit pay plan works.

- link performance appraisal ratings to annual pay increases, the size and frequency of pay increases are most often determined by performance rating

Sources of performance management info (managers, peers, subordinates, self, customers, 360 degree).

- managers a. appraisal done by an employee's manager and reviewed by a manager one level higher. - Peers b. where Appraisal are completed by fellow employees, compiled into a single profile for use in an interview conducted by the employee's manager. - Subordinates o From the appraisal of a superior by an employee, which is more appropriate for developmental than for administrative purposes. - self-customers o from a performance appraisal that, like team appraisal, is based on TQM concepts and seeks evaluation from both external and internal customers. - 360 degree o Performance evaluations in which supervisors, peers, employees, customers and the like evaluate the individual

1. Label Maslow's Hierarchy of Needs.

- most important: physiological, safety, love, esteem, self-actualization: least important

1. List and explain the three main needs according to McClelland's Learned Needs theory.

- need for achievement, need for affiliation, and need for power

1. Explain the key purposes of performance appraisal in organizations.

- organization gets information on how well an employee is doing on the job.

1. Describe the concept of cognitive dissonance and how it can be reduced.

- psychological discomfort experienced when simultaneously holding two or more conflicting cognitions (ideas, values, or emotions) - changing attitude, behavior or both; belittling the importance of the inconsistent behavior

Define the concept of motivation and distinguish between intrinsic and extrinsic motivation.

- psychological process that arouses interest in doing something, and it directs and guides behavior - Intrinsic - results from internal feelings - Extrinsic - results from external rewards

1. Describe individual incentive plans and discuss their pros and cons.

- reward individual performances but payments are not rolled into base pay it is balanced by performance not output, subjective

1. Describe the following key job attitudes: organizational commitment, employee engagement, perceived organizational support, and job satisfaction.

- the extent to which an individual identifies with an organization and commits to its goals - the harnessing of organizational members' selves to their work roles; where people employ and express themselves physically, cognitively, and emotionally during role performance - reflects the extent to which employees believe that the organization values their contributions and genuinely cares about their well-being - the extent to which an individual likes his or her job

1. List the main causes of job satisfaction.

-Need Fulfillment -Meets Expectation -Value Attainment -Equity -Disposition/Genetic Components

Define the concept of organizational socialization.

-The process by which a person learns the values, norms, and required behaviors, to be a member of the organization.

1. Describe the performance management process.

1) Define performance outcomes for company division and department. 2) Develop employee goals, behavior, and actions to achieve outcomes. 3) Provide support and ongoing performance discussions. 4) Evaluate performance. 5) Identify needed improvements. 6) Provide consequences for performance results.

1. List and describe the three fundamental levels of organizational culture.

Artifacts - physical manifestation of an organization's culture Values- Espoused: Values preferred by an organization Enacted Values: Values/norms that are exhibited or converted into employee behavior. Basic Underlying Assumptions -assumptions that guide organizational behavior.

1. Label and explain the components of the Competing Values Framework of organizational culture.

Clan Culture: -internal focus -value flexibility -Effectiveness achieved by encouraging collaboration, trust, and support. Adhocracy Culture: -Culture is adaptable to marketplace -Externally focused -value flexibility Market Culture: -Strong external focus -value stability and control -strong desire to accomplish expected goals Hierarchy Culture: -internally focused -structured work environment -Value stability and control -Value efficiency, timeliness, and reliability

1. Describe the different standards we use to judge performance measures: strategic congruence, validity (validity contamination, criterion deficiency), reliability, acceptability, specificity.

Strategic Congruence - the extent to which a performance management system elicits job performance that is congruent with the organization's strategy. Validity a. 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. Acceptability b. refers to whether the people who use the performance measurer accept it. Specificity c. 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.

1. Label the stages of the organizational socialization process and describe what occurs at stage of the process.

a. Anticipatory socialization: Occurs before individual is employed. Time to learn about organizations. b. Encounter: Organizations use onboarding programs after employee is familiar with organizations values. c. Change and acquisition: Employees master important tasks/roles and adjust to their group's values and norms.

1. List the individual- and organization-level outcomes of successful organizational socialization.

a. Effective onboarding programs result in increased retention, productivity, and rates of task completion for new hires. b. Many organizations use socialization tactics to reinforce a culture that promotes ethical behavior. c. Managers need to help new hires integrate with the culture to overcome stress associated with a new environment. d. Support for the stage model is mixed, different techniques are appropriate for different people at different times. e. Mangers should pay attention to the socialization of diverse employees.

1. List and describe the twelve mechanisms that leaders can use to manage an organization's culture.

a. Formal statements: mission used for recruiting b. Physical Space: Physical spacing among two entities c. Slogans: easy to remember and easy to repeat. d. Role Modeling: structure training to provide organizational values e. Reward: Strong impact on employees f. Stories: Powerful way to send messages that are desired g. Organizational Activities: Sends message to employees about acceptable norms. h. Leader Reactions to Critical Incidents: Positive emotions spread. Negative emotions travel faster and further. i. Rituals: Used to celebrate important events or achievements. j. Workflow Structure: Used to empower employees and increase employee involvement. k. Organizational Systems: how a company handles communication, recruitment, selection, development, promotion, layoffs, and retirements.

1. Outline recommendations for providing effective performance feedback to employees.

a. Give feedback frequently, not once a year. b. Create right context for discussion. c. Ask employees to rate performance before the session. d. Encourage employee to participate. e. Recognize effective performance through praise. f. Focus on solving problems. g. Focus feedback on behavior or results, not on the person. h. Minimize criticism. i. Agree to specific goals and set progress review date.

1. Summarize the basic principles of Expectancy theory.

holds that people are motivated to behave in ways that produce desired combinations of expected outcomes