Managing People/Organizations Text 1
Differentiation Strategy
(Harley Davidson, Apple) - Create value by convincing the market that your product/service is different from all the others. - Produce a product or deliver a service that is different than competitors - By differentiating the product or service the firm is able to charge a premium, and therefore maintain a profit
Focus Strategy
(Rolex, Lamborghini) - Narrow product lines, targeted buyer segments or targeted geographical markets - Attain advantage through cost or differentiation
Low-cost strategy
(Walmart, McDonalds) - Create value by reducing costs - Produce a product or delivery a service at the lowest possible cost - By keeping costs low, the firm is able to charge less than competitors and maintain a profit
Maslow's Hierarchy of Needs
(level 1) Physiological Needs, (level 2) Safety and Security, (level 3) Relationships, Love and Affection (level 4) Self Esteem (level 5) Self Actualization
Three factors to achieve high performance behavior
- Ability - Motivation - Opportunity
Administrative
- Drives administrative decisions - Salary guidelines - Pay Raises - Promotions, Demotions - Retention, Termination - Layoffs - Recognition of individual performances
Employee Benefits of HPWS
- Have more involvement with the organization - Experience growth and satisfaction, and become more valuable as contributors
Organizational Outcomes and Competitive Advantages with HPWS
- Higher productivity - Lower costs - Better responsiveness to customers/customer satisfaction - Quality - Greater flexibility - Higher profitability
Developmental
- Identifies individual needs - Skill set development, behavioral or emotional intelligence development - Not just developmental needs of the individual - Identifies gaps in the HR processes
Types of Selection Methods
- Interviews - References and Background tests - Physical Ability Tests - Cognitive Ability Tests - Personality Inventories - Work Samples - Honesty and Drug Tests
Strategic
- Links employee behaviors to goals through feedback - Identifies strengths/weaknesses - Creates/maintains engaged workforce - Identifies developmental opportunities - Rewards good performance - pay, recognition, other - Helps organization meet financial goals
List Porter's Strategies
- Low Cost Strategy - Differentiation Strategy - Focus Strategy
Four dimensions of HRM
- Managing The Human Resource Environment - Acquisition and Preparation of Human Resources - Assessment and Development of Human Resources - Compensation of Human Resources
5 Criteria used to evaluate performance management systems
- Strategic - Congruence - Validity - Reliability - Acceptability - Specificity
Strategic Human Resource Management
- The pattern of human resources deployments and activities that enable an organization to achieve its strategic goals - Identify and implement HRM practices to ensure the necessary human capital is in the correct position within the firm
5 Dimensions of Personality Inventories
1. Extroversion 2. Inquisitiveness 3. Conscientiousness 4. Agreeableness 5. Adjustment
5 Evaluation Selection Method Standards
1. Reliability 2. Validity 3. Generalizability 4. Utility 5. Legality
Ways to manage performance
1. Solid performers 2. Misdirected effort 3. Under-utilizers 4. Deadwood
Age Discrimination in Employment Act
1967 law that prohibits discrimination of employees 40 years and up.
positive reinforcement
A pleasant consequence follows the desired behavior - causing the behavior to increase
What does a High Performance Work System do?
A system of management practices that together foster the development of a highly - Knowledgeable, skilled, and able workforce - Motivated workforce - A workforce that has Opportunity to use its ability and motivation to achieve objectives
What is Porter's Strategy Typology?
According to Michael Porter, competitive advantage results from creating value.
Content Theory: Using McClelland's Acquired Needs
Achievement Affiliation Power
negative reinforcement
An unpleasant consequence is removed following the desired behavior - causing the behavior to increase
Saftey
Consists of the need to be safe from physical and Physiological harm
Openess to experience
Curious, imaginative
What is Step 1 in the Effective Performance Management Process Model?
Defines performance outcomes for company division and department
Conscientiousness
Dependable, organized, perserving
self-actualization
Desire for self-fulfillment to become the best one is capable of becoming
What is Step 2 in the Effective Performance Management Process Model?
Develop employee goals, behavior, and actions to achieve outcomes
Adjustment
Emotionally stable, secure, content
Strategic Knowledge Workers
Employees who have unique skills that are directly linked to the company's strategy. Ex: top management
Supporting Labor
Employees whose skills are of less strategic value and generally available in the labor market. Ex: clerical workers, cashiers
Core Employees
Employees with skills to perform a predefined job that are quite valuable to a company, but not particularly unique or difficult to replace Ex: Salespeople, department managers
What is Step 4 in the Effective Performance Management Process Model?
Evaluate Performance
What is Step 5 in the Effective Performance Management Process Model?
Identify improvements needed
Complementary/Alliance Partners
Individuals and groups with unique skills, but those skills are not directly related to a company's core strategy. Example: consultants
Physiological
Most basic need. Entails having enough food, air, and water to survive
Esteem
Need for reputation, presige, and recognition from others. Also includes need for self-confidence and strength
Contrast rater error
Occurs when the rater compares individuals against each other instead of against performance goals
Justice Theory
Organizational justice refers to the extent to which people perceive that they are treated fairly at work
Step 6
Provide consequences for performance results
What is Step 3 in the Effective Performance Management Process Model?
Provide support and ongoing performance discussions
Horns rater error
Rater gives employee low ratings on all aspects of performance because of an overall negative impression of the employee
central tendency rater error
Rater gives middle or average ratings to all employees despite their performance.
Types of Motivation: Extrinsic
Results from external aspects of the job; pay, promotions, comp benefits, tangible awards/rewards
Types of Motivation: Intrinsic
Results from internal rewards that are part of the job itself; responsibility, challenge, feedback or self-administered awards.
Four-Fifths Rule
Rule of thumb that finds evidence of discrimination if an organization's hiring rate for a minority group is less than four-fifths the hiring rate for the majority group.
5 aspects of emotional intelligence
Self-Awareness, Self-Regulation, Empathy, Social Skills, Self-motivation
Extroversion
Sociable, assertive, talkative
Assessing your employees knowledge, skills, and abilities and developing them in order to meet your organizations goals is known as:
Strategic human resource management
Strategic Congruence
The extent to which the performance management system elicits job performance that is consistent with the organization's strategy, goals, and culture.
core capabilities
The knowledge and skill that resides in an organisation. Examples: strategic planning, management, communication, teamwork, project management, etc.
Sexual Harassment: Quid Pro Quo
Tit-for-tat: offering or withholding something until sexual favors are performed. Example - you won't get this promotion if you don't do xyz.
Agreeableness
Trusting, Good natured, Cooperative
Equity/Justice Theory
a model of motivation that explains how people strive for fairness and justice in social exchanges or give-and-take relationships
Bona Fide Occupational Qualification
a necessary qualification for performing a job
Goal Setting Theory
a theory that says that specific and difficult goals, with feedback, lead to higher performance
3 purposes of performance management
administrative, strategic, developmental
What is validity?
assesses all the relevant and only the relevant -Validity gives meaning to the test scores, and validity evidence can indicate there is linkage between test performance and the candidate's potential job performance.
Thorndike's Law of Effect
behaviors followed by favorable consequences become more likely, and behaviors followed by unfavorable consequences become less likely
Disparate Treatment
exists when individuals in similar situations are intentionally treated differently based upon race, color, religion, sex, national origin, age, or disability status. EX: Of only minority applicants are required to take a pre-employment assessment test
Title VII of the Civil Rights Act of 1964
forbids discrimination in all areas of the employment relationship - race - color - religion - sex - national origin Established EEOC
Sexual Harassment Hostile Work environment
harassment or sexist remarks
Disparate (Adverse) Impact
occurs when a neutral employment practice disproportionately excludes a protected group from employment opportunities EX: If you test all applicants and only minorities are eliminated based on the results of the assessments
Similar to me Rater Error
occurs when the individuals who are similar to the raters in race, gender, background, interests, beliefs get higher ratings than those who aren't similar
Leniency Rater Error
occurs when the rater gives high ratings to all employees despite their individual performances
Americans with Disabilities Act
prohibits discrimination against the disabled
Halo Rater Error
rater gives employee high ratings on all aspects of performance because of an overall positive impression of the employee
Strictness Rater Error
rater gives low ratings to all employees regardless of their performance
What is reliability?
the consistency with which the same event is repeatedly measured. scores are consistent across repeated testing. - is the degree to which a measure of physical or cognitive abilities or traits is free from random error
Validity
the extent to which a test measures or predicts what it is supposed to
What is content validity?
the extent to which a test samples the behavior that is of interest items, questions or problems in a test are representative samples of situations that occur in the job.