Intro2Bidness Chapter 8
What are the five factors most firms base their compensation policies on?
(1) what competing companies are paying (2) government regulation (3) cost of living (4) company profits (5) an employee's productivity
What are the 3 basic assumptions in Maslow's Heirarchy of Needs?
- People's needs depend on what they already possess. - A satisfied need is not a motivator; only needs that remain unsatisfied can influence behavior. - People's needs are arranged in a hierarchy of importance; once they satisfy one need, at least partially, another emerges and demands satisfaction.
What are 3 methods utilized by firms to offer flexible work?
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What are the 5 types of needs according to Maslow? What is the highest level? Know the order!
1. Physiological needs 2. safety needs 3. social (belongingness needs) 4. esteem needs 5. self-actualization needs
What is equity theory?
Equity theory is concerned with an individual's perception of fair and equitable treatment. In their work, employees first consider their effort and then their rewards. Next, employees compare their results against those of their coworkers. As shown in Figure 8.6, if employees feel they are under‐rewarded for their effort in comparison with others doing similar work, equity theory suggests they will decrease their effort to restore the balance. Conversely, if employees feel they are over‐rewarded, they will feel guilty and put more effort into their job to restore equity and reduce guilt.
What are management tactics?
In the past, it has used the lockout—a management "strike" to put pressure on union members by closing the firm. However, companies more commonly try to recruit strikebreakers in highly visible fields such as professional sports, or transfer supervisors and other nonunion employees to continue operations during strikes.
Describe 3 ways managers can design a job to increase motivation? P. 272 Explain job enlargement, job enrichment and job rotation. Be able to distinguish between the 3.
Job enlargement is a job design that expands an employee's responsibilities by increasing the number and variety of tasks. Redesigning the production process is one way to accomplish this. Instead of having an assembly line on which each worker repeatedly completes the same task, modular work areas allow employees to complete a variety of tasks, which may result in the construction of an entire product. Job enrichment involves an expansion of job duties that empowers an employee to make decisions and learn new skills leading toward career growth. The Pampered Chef is a direct seller of kitchen tools and housewares that gives its managers and sales consultants the power to make decisions about many aspects of their work. Kitchen consultants, who organize home sales parties, can decide how much or how little they want to work and receive various incentive rewards for performance. The company's mission is to provide "opportunities for individuals to develop their talents and skills to their fullest potential for the benefit of themselves, their families, our customers, and the company."40 Job rotation involves systematically moving employees from one job to another. Job rotation increases the range of activities by introducing workers to more jobs and therefore more tasks. The goal is to increase employees' interest in their jobs and allow them to learn more about the company. Nurses might rotate from oncology to the ICU in a hospital. Job rotation is often part of a training program, as is the case at EMC, a global provider of business solutions for data backup, information security, risk and compliance, and many other products. EMC offers motivated employees the chance to participate in rotational training programs in business, leadership, finance, and other areas.
Describe collective bargaining.
Labor unions work to increase job security for their members and to improve wages, hours, and working conditions. These goals are achieved primarily through collective bargaining, the process of negotiation between management and union representatives. Union contracts, which typically cover a two‐ or three‐year period, are often the result of weeks or months of discussion, disagreement, compromise, and eventual agreement. Once agreement is reached, union members must vote to accept or reject the contract. If the contract is rejected, union representatives may resume the bargaining process with management representatives, or union members may strike to obtain their demands.
What is Management by Objective (MBO)?
MBO is a systematic approach that allows managers to focus on attainable goals and to achieve the best results based on the organization's resources. MBO helps motivate individuals by aligning their objectives with the goals of the organization, increasing overall organizational performance. MBO clearly outlines people's tasks, goals, and contributions to the company. MBO is a collaborative process between managers and employees
How do HR managers find qualified candidates?
Most now rely on company's website
What are the 3 basic training programs described in your text? p 258 Be able to recognize them from a scenario
On-The-Job Training - prepares employees for job duties by allowing them to perform tasks under the guidance of experienced employees. Classroom and Computer based training Management Development Program - provides training designed to improve the skills and broaden the knowledge of current or future managers and executives. Training may be aimed at increasing specific technical knowledge or more general knowledge in areas such as leadership and interpersonal skills.
What is expectancy theory of Victor Vroom?
describes the process people use to evaluate the likelihood that their efforts will yield the results they want, along with the degree to which they want those results. determines how much effort somebody puts into something
Describe Douglas McGregor's Theory X and Y. Be able to identify it from a description of a manager.
Theory X assumes that employees dislike work and try to avoid it whenever possible, so management must coerce them to do their jobs. Theory X managers believe that the average worker prefers to receive instructions, avoid responsibility, take little initiative, and views money and job security as the only valid motivators—Maslow's lower order of needs. Theory Y assumes that the typical person actually likes work and will seek and accept greater responsibility. Theory Y managers assume that most people can think of creative ways to solve work‐related problems, and should be given the opportunity to participate in decision making. Unlike the traditional management philosophy that relies on external control and constant supervision, Theory Y emphasizes self‐control and self‐direction—Maslow's higher order of needs.
What is a labor union?
a group of workers who have banded together to achieve common goals in the areas of wages, hours, and working conditions.
What are flexible benefits?
also called cafeteria plans, this system offers employees a choice of benefits, including different types of medical insurance, dental and vision plans, and life and disability insurance. This flexibility allows one working spouse to choose medical coverage for the entire family, while the other spouse uses benefit dollars to buy other types of coverage. Typically, each employee receives a set allowance (called flex dollars or credits) to pay for benefits depending on his or her needs. Contributions to cafeteria accounts can be made by both the employee and employer. Cafeteria plans also offer tax benefits to both employees and employers.
What is human resource management? Why is it "vital to all organizations."
attracts, develops, and retains the employees who can perform the activities necessary to accomplish organizational objectives.
What is a performance appraisal? Who conducts a performance review?
evaluates an employee's job performance and provide feedback about it. a review panel of 8 to 12 people, including coworkers, supervisors, team members, subordinates, and sometimes even customers
What is Herzberg's Two Factor Model of motivation?
hygiene factors(or maintenance factors) refer to aspects of work that are not directly related to a task itself but related to the job environment, including pay, job security, working conditions, status, interpersonal relations, technical supervision, and company policies. Motivator factors, on the other hand, can produce high levels of motivation when they are present. These relate directly to the specific aspects of a job, including job responsibilities, achievement and recognition, and opportunities for growth.
What are affirmative action programs?
increase job opportunities for women, minorities, people with disabilities, and other protected groups
What is outsourcing?
involves transferring jobs from inside a firm to outside the firm. Jobs that are typically outsourced include office maintenance, deliveries, food service, and security.
What is goal setting theory?
says that people will be motivated to the extent to which they accept specific, challenging goals and receive feedback that indicates their progress toward goal achievement basic components of goal‐setting theory are goal specificity, goal difficulty, goal acceptance, and performance feedback.
What are labor union tactics?
strikes, picketing, and boycotts.
What is downsizing? What advantages and problems come from downsizing?
the process of reducing the number of employees within a firm by eliminating jobs. advantages: - improvements in profits, market share, employee productivity, quality, and customer service disadvantages: - Anxiety, health problems, and lost productivity among remaining workers. - Expensive severance packages paid to laid‐off workers. - A domino effect on the local economy unemployed workers have less money to spend, creating less demand for consumer goods and services, increasing the likelihood of more layoffs and other failing businesses.
