HR #3

Conducting the feedback session

"Tell and sell" the managers tell employees their rating and then justify those ratings "tell and listen" managers tell employees their rating and then let employees explain view "problem solving" managers and employees work together to solve performance problems

Retirement Plans

- About half of employees working in private business sector have employer-sponsored retirement plans. • Contributory plan - retirement plan funded by contributions from employer and employee. • Non-contributory plan - retirement plan funded entirely by employer contributions. • Defined benefit plan - pension plan that guarantees a specified level of retirement income. Employer sets up a pension fund to invest contributions. Such plans must meet funding requirements of Employee Retirement Income Security Act (ERISA) of 1974.

Family-Friendly Benefits

- Family leave - Child care - College savings - Elder care

Accounting Requirements

- Financial Accounting Standards Board (FASB) • Ensure that financial statements are a true picture of the company's financial status • Employers must set aside the funds they expect to need for benefits to be paid after retirement

Antidiscrimination Laws

- Intended to provide equal employment opportunity without regard to race, sex, age, disability, and several other protected categories - Pregnancy Discrimination Act - Age Discrimination in Employment Act (ADEA) - Older Workers Benefit Protection Act of 1990 - Americans with Disabilities Act

Tax Treatment of Benefits

- More favorable tax treatment of benefits classified as qualified plans • Employees may immediately take a tax deduction for the funds they contribute to the plans • Plan must meet certain requirements

Benefits' Costs

- Ways to save money 1. Shift from traditional health insurance to PPOs and CDHPs. 2. Shift more of the cost to employees. 3. Exclude or limit coverage for certain types of claims. 4. Learn which providers and treatments deliver the best value.

Organic

-Flexible networks of multi talented individuals who perform a variety of task -decentralized decision making: important decisions made by middle and lower level managers -works best when environment is unstable and uncertain

Incentive Pay

-Forms of lay linked to an employee's performance as an individual, group member, or organization member -Influential bc the amound paid is linked to certain predefined behaviors or outcomes -may be in the form of a commission or a bonus

Open and network pros, cons

-Generate superior returns. Focus on what they do best. Tap into people's specialties -Give up expertise and control when outsourced. Have to get results from people without direct authority. Need partners that can be trusted

Why is Feedback Important?

-Has the potential to boost performance -given less often and less well than people would like -dramatically underutilized

Divisional pros, cons

-Increased focus customers and products. Flexibility in decision making -divisions tendency to focus on their own customer groups or products and exclude rest of org

Learning management system (LMS)

-a computer application that automates the administration, development, and delivery of training programs -LMS is used to carry out instructional design process more efficiently and effectively -Plans and manages (training needs, training outcomes, associated rewards)

Instructional design process

-a process of systematically developing training to meet specified needs -an effective training program is designed to teach skills and behaviors that will help the org achieve its goals -HR professionals approach training through instructional design

Merit pay

-a system of linking pay increases to rating on performances appraisals -use a merit increase grid (individual's performance rating, individual's compa-ratio(employees salary divided by the midpoint of his or her salary range)

Standard Hour plan

-an incentive plan that pays workers extra for work done in less than a present "standard time" -similar to piecework plans

Planning the training program

-begins with establishing objectives for the training program -Planner decides -Who will provide training -What topics the training will cover -What training methods to use -How to evaluate the training

The role of employee benefits

-benefits contribute to attracting, retaining, and motivating employees -help employers tailor their compensation to kinds of employees they need -employees have come to expect that benefits will help them maintain economic security -benefits impost significant costs

Worker's comp

-benefits to workers who suffer work-related injuries or illnesses or to their survivors -operate under principle of no-fault liability (employees does not need to show that the employer was grossly negligent in order to receive compensation, employer is protected from lawsuits) -benefits are tax free Generally 2/3 of the worker's earning before the disability Four Major categories of benefits: Disability income, medial care, death benefits, rehabilitative benefits

Short term incentives

-bonuses based on ROI, year's profits, or other measures related to the organization's goals -actual payment of bonus may be delayed to gain tax advantage

Why are goals important?

-can lead to happier workers who achieve more -provide focus -enhance productivity -bolster self-esteem -increase commitment

The role of employee benefits PT2

-certain benefits are required by law -tax laws can make benefits favorable to employees -employers can get volume discounts on insurance -creative benefits package make companies more competitive

Assessment

-collecting info and providing feedback to employees about heir behavior, communication style or skills -may come from employees, their peers, managers, and customers

Matrix

-combines a vertical structure and equally strong horizontal overlay -generally combines functional and divisional chains of command to form a grid with two command structures

Sales commissions

-commissions-incentive pay calculated as a percentage of sales (some earn a commission in addition to a base salary) -straight commission plan-some earn only commissions (some earn no commissions at all, but a straight salary)

Total and alternative rewards

-compensation -benefits -professional growth -personal growth -attention and recognition -advancement

Communication

-demonstrates that pay is fair -when employees understand the incentive pay plan's requirements the plan is more likely to influence their behavior as desired -important when changing the pay plan

Coaching goes beyone mentoring and training

-developmentally focused -has specific performance goals -involves self reflection -consistent with positive OB

Political behavior in performance appraisals

-distorting a performance evaluation to advance one's personal goals -a technique to minimize appraisal politics is a calibration meeting (meeting at which managers discuss employee performance rating and provide evidence supporting their rating with the goal of eliminating influence of rating errors)

Participation in decisions

-employee participation in pay-related decisions can be part of a general move toward employee empowerment -employee participation can contribute to the incentive plan's success

Interpersonal relationships

-employees can also develop skills and increase their knowledge about the org and its customers by interacting with a more experienced member -mentoring -coaching

Motivating employees with incentives

-employees must feel the incentive plan is fair -give employees a say in allocating incentives -employees also want interesting work, appreciation for their efforts, flexibility, and a sense of belonging to the work group, and the inner satisfaction of work well done

Life Insurance

-employers may provide life insurance to employees or offer the opportunity to buy coverage low group rates -Term life insurance-if the employee dies during the term of the policy, the employee's beneficiaries receive a death benefit payment

ESOP's

-esop-an arrangement in which the organization distributes shares of stick to all its employees by placing it in a trust -most common form of employee ownership

Continuous reinforcement

-every instance of a target behavior reinforced -great when learning a new skill -can quickly lose its effect

Ethical Issues for incentive pay for executives

-executives need to be honest abut their company's performance even when dishonesty or shading of the truth offers the tempting potential for large earnings -insider trading

Unemployment Insurance

-federally maddated program administered by states to minimize unemployment hardships -most funding comes from federal and state taxes on employers -size of unemployment tax imposed on each employer depends on the employer's experience rating -careful HR planning can minimize layoffs and keep their experience rating favorabel

Audiovisual training

-mobile technology is useful for employees who travel -Ipods and tablet computer also give employees the ability to listen to and participate in training programs at their own leisure

Performance bonuses

-not rolled into base pay -the employee must re-earn them during each performance period -may be a one-time reward -may be linked to objective performance measures

Factors affecting perceptions of feedback

-self serving bias -fundamental attribution bias -accuracy -credibility of the sources -fiarness of the system -performance-reward expectancies -reasonableness of goals and standards

Making comparisons

-simple ranking (alternation ranking) -forced distribution -paired comparison

Key issues when making org design decisions

-strategy and goals -technology -size -human resources

Group bonuses

-tend to be for smaller work groups -reward the members of a group for attaining a specific goal, usually measured in terms of physical output

When rewards may fail

-too much emphasis is placed on monetary rewards -overtime rewards are seen as entitlements -they foster counterproductive behaviors -a lag occurs between performance and reward -reward structures are not tailored to goals, tasks -they have a short half-life -organizational policies and practices are misaligned

Classroom learning

-usually lecturing group -distance learning (trainees at different locations, videoconferencing, email, IM, interaction between trainer and audience may be limited)

Career Management System Steps

1. Data gathering (focuses on competencies needed for career success) 2. Feedback (confidentiality, focus on specific success factors) 3. Goal Setting (involve management and coaches/mentors, specify developmental methods) 3. Action planning and follow up (involve coaches, measure success

Performance Management Systems

1. Define Performance 2. Monitor and Evaluate Performance 3. Review Performance 4. Provide Consequences

Steps in 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 improvements needed 6. Provide consequences

Workers Comp, four major categories

1. Disability income 2. Medical care 3. Death benefits 4. Rehabilitative benefits

Training objectives include a statement of

1. Expectations 2. Quality or level of acceptable performance 3. Conditions under which the employee is to apply what he or she learned 4. Measurable performance standards 5. Resources needed to carry out desired performance or outcome

Categories of balanced scorecard

1. Financial 2. Customer 3. Internal 4. Learning and growth

Dysfunction manager

1. Insensitivity 2. Inability to be team player 3. Arrogance 4. Poor conflict management skills 5. Inability to meet business objectives 6. Inability to adapt to change

Feedback serves two functions

1. Instructional 2. Motivational

Optional Benefits Programs

1. Insurance (life and medical, health insurance for dependents and domestic partners) 2. Retirement plans 3. Paid leave (vacations, holidays)

Six employer approaches to controlling health care benefits costs

1. Managed care 2.Health maintenance organizations (HMO) 3. Preferred provider orgs (PPO) 4. Flexible spending accounts 5. Consumer-driven health plans (CDHP) 6. Employee wellness programs (EWP)

Employment at will

Can be fired at any time (due process protects this)

Business Games and Case studies

Case studies-detailed descriptions of a situation that trainees study and discuss Business games-require trainees to gather and analyze info and make decision that influence the outcome

Employee development

Combination of formal education, job experiences, relationships, and assessment pf personality and abilities to help employees prepare for the future of their careers -about preparing for change in new jobs, responsibilities, or requirements

Goals for four-stage on boarding process

Compliance, clarification, culture, connection

Measures of training success

Trainee satisfaction, return on investment, transfer of training, performance improvements, new skills knowlege

XYZ company has determined that they will have to reduce their benefits costs to stay competitive. Which of the following solutions is not a choice for XYZ?

b) Reduce the percentage of employees' Social Security insurance they pay.

Cafeteria-style plan:

benefits plan that offers employees a set of alternatives from which they can choose the types and amounts of benefits they want.

Selecting Employee Benefits

Organizations can address differences in employees' needs and empower their employees by offering flexible benefits plans in place of a single benefits package for all employees.

Communicating Benefits to Employees

Organizations must communicate benefits information to employees. • It is difficult for employees and job applicants to understand the value of their benefits, so companies must help.

Apprenticeship

combo of on the job training and classroom training

Basic dimension of orgs reflected

in organizational charts

Four approaches to employee development

interpersonal relationships, formal education, job experiences, assessment

Sources of Feedback

Others (peers, supervisors, lower-level employees, outsiders), task (may provide a steady stream of feedback about how ell or poorly one is doing), self (self serving bias may contaminate this one)

Setting SMART goals

Specific, measurable, attainable, results orientated, time bound

Purposes of Performance Management

Strategic Purpose- effective performance management helps the organization achieve its business objectives Administrative purpose-way to which organizations use the system to provide information for day-to-day decisions about salary, benefits, and recognition programs Developmental Purpose-serves as a basis for developing employees' knowledge and skills

Other Quality of Work-Life Benefits

Subsidized cafeterias • On-site health care services • Moving and relocation expenses • Employee discounts on products • Employee buying service • Tuition reimbursement • On-site fitness center • On-site dry cleaning services • Dues for professional organizations • Off-site company recreation area • Pet services

Finding the gain in a scanlon plane

Target ration=labor costs/sales value of production Gain=(Target ratio*sales value of production)-actual

Horizontal

Teams or work groups either temporary or permanent, created to improve collaboration and work on common projects

Working outside one's home country is the most important

job experience for an employee in a career in the global economy

On the job training

job experience, practicing job

Preparing for a feedback session

managers should be prepared for each formal feedback session

Internship

on the job learning sponsored by educational institution as a component of an academic program

Experiential programs

participants learn concepts and apply them by simulating behaviors involved and analyzing the activity and connecting it with real life situations -adventure learning-a teamwork and leadership training program based on use of challenging, structured outdoor activities

Commission

performance bonuses for production workers are not rolled into base pay. The bonuses can be tied to various measures, including the quantity of products shipped in a specific time period

Learning organization

proactively creates, transfers, acquires knowledge

Performance management

process through which managers ensure that employees' activities and outputs contribute to the organization's goals Process requires: Knowing what activities and outputs are desired Observing whether they occur Providing feedback to help employees meet expectations

Types of pay for organization performance

profit sharing stock options (stock ownership) employees stock ownership plans (stock ownership)

401(k)

retirement savings plan sponsored by an employer

Incentive pay for executives

short and long term incentives

Action learning

teams or work groups get an actual problem, work on solving it and commit to an action plan, and are accountable for carrying out the plan

Straight piecework plan

the employer pays the same rate per piece no matter how much the worker produces

Differential piece rates

the piece rate depends on the amount produced

Succession planning

the process of identifying and tracking high potential employees who will be able to fill key positions when they become vacant Benefit: senior management regularly reviews the company's leadership talent ensures that critical talent is available provides development experiences that managers must complete helps attract and retain managerial employees

Orientation

training designed to prepare employees to perform jobs, learn about org, establish work relationships

Simulations

training method that represent real life situation, uses avatars, virtual reality

Formal Education

workshops, short courses, lectures, simulations, business games, experiential programs, meeting with customers -many companies operate training and development centers

Performance Management when done well, leads to

• Higher profitability • Higher productivity • Higher employee engagement • Higher customer service • Lower turnover

Performance Management Used to

• Make employee-‐related decisions • Guide employee development • Send strong signals to employees

Employee Retirement Income Security Act (ERISA):

• federal law that increased responsibility of pension plan trustees to protect retirees, • Established certain rights related to vesting and portability, and created the Pension Benefit Guarantee Corporation.

Performance measures for executives

-Balanced scorecard -securities and exchange commission (SEC) has required companies to more clearly report executive compensation levels and the company's performance relative to that of competitors -Dodd-Frank Wall Street Reform and Consumer Protection Act requires that public companies report the ratio of median compensation of all its employees to the CEO's total compensation

The Glass Ceiling

-Caused by lack of access to training programs, developmental job experiences, and developmental relationships -developmental system help

Matrix pros, cons

-Combines advantages of functional and divisional -Violate unity of command and decision making can be slow. Political behavior can occur. Requires extensive communication.

Common among all orgs

-Coordination of effort (achieved through formulation and enforcement of policies, rules, and regulations) -Division of labor (occurs when the common goals are pursued by individuals performing separate but related tasks) -Aligned goals (development of company wide strategic plan. These strategic goals are then cascaded down through the org so employees are aligned in their pursuit of common goals) -Hierarchy of authority (chain of command, control mechanism dedicated to making sure people are doing the right things at the right time)

Ways to reduce errors

-Employees rate fictional employees and discuss their rating decision -actual examples of various performances are studied -data analytics is used to find patters

Social Security

-Federal old age, survivors, disability and health insurance (OASDHI program (Social Security) combines: old age (retirement insurance), survivor's insurance, disability insurance, hospital insurance (Medicare Part A), supplementary medical insurance (Medicare Part B) -employers and employees share Social Security cost through a payroll tax. The percentage is set b y law

Many organizations fail to effectively management employee performance. Why?

-PM policies often fail to keep pace with org change leading to disconnects -done well, PM can be time consuming -performance reviews are often too narrow and only measure a limited set of elements

Task anlysis

-Process of identifying and analyzing task to be trained. To carry out task analysis, conditions to be considered include: -job equipment and environment -time constraints -safety considerations -performance standards

Functional pros, cons

-Saves money, easy to apply quality standards -Works best in a stable environment not applicable today

In-House or Contracted Out?

-Vendors may complete a request for proposal (REP) (outlines the type of service needed, the type and number of references, number of employees to be trained, completion date, date at which proposals should be received) -training administration is one by a HR professional

Readiness for training

-a combination of employee characteristics and positive work environment that permit training -Neccessary employee characteristics (ability to learn subject matter, favorable attitudes toward training, motivation to learn) -a positive work environment encourages learning and avoids interfering with training, characterized by situational constraints (are factors which place limits on the extent to which attitudes, personal attributes, and motivation translate into behaviors and performance) and social supports (the perception and actuality that one is cared for,)

Balanced scorecard

-a combination of performance measures directed toward the company's long and short term goals and used as a basis for awarding incentive pay

Pay for performance works best when

-merit pay is used to differentiate top performers -the ability to game the system is mitigated -mulitple measures of performance are used -performance measures are accurate, consistent, and aligned with goals and outcomes

Gainsharing

-group incentive program that measures improvements in productivity and effectiveness and distributes a portion of each to employees -addresses challenge of identifying appropriate performance measures for complex jobs -frees employees to determine how to improve their own and their group's performance

Horisonal pros, cons

-improves communication and coordination. Teams better for creative solutions. Develop new products faster. Knowledge sharing -lines of authority less clear. Works when specialization is not important. Requires employees to rise to the challenges of empowerment.

Profit sharing

-incentive pay in which payments are a percentage of the organization's profits and do not become part of the employees' base salary -may encourage employees to think like owners -evidence is not clear whether profit sharing helps organizations perform better

Long term incentives

-include stock options and stock purchase plans -rationale is that executives will want to do what is best for the organization bc that will cause the value of their stock to grow

Diversity Training

-increases participants awareness of cultural and ethnic differences -need for respect -Programs may focus on -behavior change -constructive way to handle communication barriers, conflicts and misunderstandings -cultural immersion

Intermittenent reinforcement

-involves reinforcement of some but not all instances -can vary the ratio and interval -works best with variable ratio and variable interval

Job experiences

-job assignments -interpersonal relationships -types of transitions

Job assignments/enlargement

-job enlargement (more variety on job, combines specialized tasks) -job rotation ( move employees from one job to another) -transfers -promotions -downward moves -lateral move (switch department) -temporary assignments with other orgs

Cost of workers' compensation insurance depend on

-kind of occupations involved -state where company is located -employer/s experience rating-unfavorable experience rating lead to higher insurance premiums

The type of action called for depends on what the employees lacks

-lack of ability -lack of motivation -lack of both In general employees who combine high ability with high motivation are solid performers

How goals are measured should be consistent with the nature of the goal itself (eg behavior, taks oriented)

-managers need to monitor and evaluate both progress toward the final goal and ultimate achievement of the goal -this stage should be used as an oppurtunity to identify problems and recognize successes -it can also be used it identify opportunists to enhance performance

Effective Incentive Pay requirements

-perf. measures are linked or orgs goals -employees believe they can meet performance standards -organizaiton gives employees the resources they need to meet their goals -employees value the rewards given -employees believe the reward system is fair -pay plan takes into account that employees may ignore any goals that are not rewarded

Scheduling performance feedback

-performance feedback should be a regular, expected management activity -annual feedback is not enough -employees should receive feedback so often that they know what the manager will say during their annual performance review

360-Degreee Performance Appraisal

-performance measurement that combines information from employees' : managers, peers, subordinates, self, customers -employee compares own performance to other, behaviorally specific

Incentives Pay

-piecework rates -standard hour plans -merit pay -individual bonuses -sales commissions

Organization analysis

-process for determining appropriateness of training by evaluating characteristics of the org -It looks at training needs in light of (org strategy, resources available for training, management support for training activities)

Needs assessment

-process of evaluating the org, individual employees, and employees tasks to determine what kinds of training, if any, are necessary Needs assessment must answer 1. Organization-What is the context in which training will occur? 2. Person-who needs training? 3. Task-What subject should training cover?

TQM

-provide methods for performance measurement and management -combines measurements of attribute and results -two kinds of feedback in TQM (subjective feedback, statistical quality control)

Methods of assessment

-psychological profiles -Myers-Briggs Type -DiSC -Assessment centers -Performance appraisals and 360-Degree Feedback

Family and Medical Leave Act (FMLA) of 1993

-requries organizations wiht 50 or more employees to provide up to 12 week of unpaid leave (childbirth or adoption, to care for a seriously ill family member, for an employee's own serious illness) -Pregnancy discrimination act

General criteria for distributing rewards

-results -behavior and actions -nonperformance considerations

Stock options

-right to buy a certain number of shares of stick at a specified price -traditionally, stock options have been granted to executives

Mechanistic

-rigid bureaucracies with strict rules, narrowly defined tasks, and top down communication -centralized decision making: key decisions made by top management -works best when environment is stable and certain

Senior managers can

-seek feedback from others by creating an open and honest environment -separate feedback from the performance review process -create a mechanism to collect feedback anonymously

10 conditions for effective gainsharing

1. Management commitment 2. Need for change or commitment to continuous improvement 3. Management acceptance and encouragement of employee input 4. High levels of cooperation and interaction 5. Employment security 6. Information sharing on productivity and costs. 7. Goal setting. 8. Commitment of all involved parties to the process of change and improvement. 9. Performance standard and calculation that employees understand and consider fair and that is closely related to managerial objectives. 10. Employees who value working in groups.

Two types of goals

1. Performance goals (targets specific end results) 2. Learning goals (enhances skill and knowledge)

1. Individual performance 2. Group incentives 3. Meeting organizational objectives

1. Piecework rates, standard hour plans, merit pay, sales commissions, and bonuses 2. Gainsharing, bonuses, and team awards 3. Profit sharing and stock ownership

Four-step process for goal implantation

1. Set goals 2. Promote goal attainment 3. Provide support, feedback 4. Create action plans

To receive benefits, workers must meet four conditions

1. They meet requirements demonstrating they had been employed 2. They are available for work 3. They are actively seeking work 4. They were not discharged for cause, did not quite voluntarily and are not out of work because of a labor dispute

For each of the following jobs, identify the best type of incentive (e.g., individual, group, organizational). Be prepared to explain your answer. 1. Director of Marketing, Pepsi 2. Recruiter, Verizon 3. Cashier, CVS (drugstore) 4. Salesperson, Macy's a) individual b) group c) organizational

1. b or c; probably need to be a part of a team, so individual contribution could be measured by success of the marketing team, could receive portion of the proceeds attributed to increased market share by her team 2. a or b; could be individual, although you'd need a good tracking system, would want as many good people as possible, could cause problems if it got too competitive 3. c; organizational because can't really reward individually unless you were able to monitor customer service, performing the cashier job does not have tremendous variability so may want to reward staying with the company by promising the chance to share the organization's profits 4. a or b; could definitely be individual because you can track purchases made by salesperson, want them to sell as much as possible

Group insurance: Medical Insurance

70% of all full time employees in US receive medical benefits (covers hospital expenses, surgical expenses, visits to physicians) Additional coverage(dental care, vision care, birthing centers, prescription drug programs) Mental Health Parity and Addiction Equity Act of 2008

Law of effort

Behavior with favorable consequences tends to be repeated, while behavior with unfavorable consequences tends to disappear

Stages of Instructional Design

Assess needs for training Ensure readiness for training Plan training program (objectives, trainers, methods) Implement training program (principles of learning, transfer of training) Evaluate results of training

Goal Setting

Base on info from self-assessment and reality check, employee sets short and long-term career objectives 1. Desired positions 2. Level of skill to apply 3. Work setting 4. Skills acquisition

Medical Insurance

Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1985 -Federal law that requires employers to permit employees or their dependents to extend their health insurance coverage at group rates for up to 36 months following a qualifying event (layoff, reduction in hours, employees death)

Types of rating errors

Contrast errors-rater compares an individual, not against an objective standard, but against other employees Distributional errors: rater tends to use only one part of a rating scale(leniency: the reviewer rates everyone near the top, strictness: the rater favors lower rankings, central tendency: the rater puts everyone near the middle of the scale)

The Organization's Objectives

Decisions about which benefits to offer should take into account: § Organization's goals, objectives and budget § Expectations of the organization's current employees and potential future recruits. - An organization that does not offer expected benefits will have difficulty attracting and keeping employees.

Retirement Plans (continued)

Defined contribution plan - the employer sets up an individual account for each employee and specifies the size of the investment into that account. - Money purchase plans - Profit-sharing and employee stock ownership plans - Section 401(k) plans - Cash balance plan -the employer sets up an individual account for each employee and contributes a percentage of the employee's salary.

Hollow or network

Designed around a central core of key functions and outsources other functions to other companies or individuals who can do them cheaper or faster

A contigency approach to defining performance

Do what what the situation reqiures, rather than a one-size-fits all approach

Transfer of training

Do you perform the task? How many times? What extent is it difficult and challenging to learn the task?

In-basket exercise

During the test, job applicants receive a number of mails, telephone calls, documents and memos. They then have a limited period of time to set priorities, organize their working schedule accordingly and respond to mail and phone calls

Computer-based Training

E-learning-training via internet Electronic performance support systems (EPSS)-provide access to skills training, info, and expect advice when a problem occurs on the job

Employee Expectations and Values

Employees expect to receive benefits that are legally required and widely available. • They value benefits they are likely to use. • Value differs from one employee to another.

Functional

Employees grouped according to the business functions they perform

Divisional

Employees grouped based on similar products or services, customer or clients, or geographic regions

Benefits required by law 1. Social Security 2. Unemployment insurance 3. Workers' compensation insurance 4. Family and medical leave 5. Health care

Employer requirement 1. Flat payroll tax on employees and employers 2. Payroll tax and employers that depends on state requirements and experience rating 3. Provide coverage according to state requirements. Premiums depend on experience rating 4. Up to 12 week of unpaid leave for childbirth, adoption, or serious illness 5. For employers with at least 50 employees, payment of a fee to a federal government if the employer does not meet conditions for providing health insurance benefits

Types of Rewards

Extrinisc- financial and non financial Intrinsic-meaningfulness and acheivement

Balanced score cards (BSC)

Financial perspective Customer perspective Internal business process perspective (Innovation, customer service and satisfaction, operation excellence, safety quality, corporate citizenship, corporate citizenship) Learning, growth, development

Criteria for effective performance management

Fit with strategy Validity Reliability Acceptability Specific feedback

Vertical structures

Functional, Divisional

Rating Attributes

Graphics rating scale-lists traits and provides a rating scale for each trait, employer uses the scale to indicate extent to which an employee displays each trait Mixed-standard scale-uses several statements describing each trait to produce a final score for that trait

Vesting Rights

Guarantee that when employees become participants in a pension plan and work a specified number of years, they will receive a pension at retirement age, regardless of whether they remained with the employer.

Rater errors can lead to biases and undermine performance management systems

Halo effect (rate employee high on all aspects only because of one), leniency (evaluate in extremely positive fashion), central tendency (average rating), recency (overly rely on recent info) effects, contrast effects (constantly compare to others) -Some bias can be overcome with the use of 360-degree feedback

Short Term Disability Insurance

Insurance that pays a percentage of a disabled employees salary as benefits to employee for six months or less

Basic dimensions of orgs reflected in org charts

Hierarchy of authority Division of labor Spans of control Line-staff positions

Process for Developing a Succession Plan

Identify position to plan for Identify employees to include Define job requirements Measure employee potential Review and plan to meet development needs Like succession planning and other HR System Provide feedback to employees Measure the plan's effectiveness

Long tern disability Insurance

Insurance that pays a percentage of a disabled employees salary after an initial period and potentially for the rest of employee's life

Total Quality Management approach (TQM)

Involves employees and their internal and external customers working together to improve overall customer satisfaction

Virtual

Members geographically, usually working with email and other forms of info technology Generally appears to customers as a single, unified org with a real physical location can be either internal or networked external virtual structures

Paid Leave

Most common: vacations, holidays, and sick leave Optional: Jury duty, funerals of family members, military duty, voting or giving blood Paid holidays(10) Sick leave is often based on length of service Personal days-days off of personal needs Floating holidays-paid holidays that vary from year to year Paid time off-a pool of days to use as the employee wants

Processes that make incentives work

Participation in decisions, communication

Person analysis

Process of determining individuals' needs and readiness for training by answering three questions: 1. Do performance deficiencies result from a lack of knowledge, skill, or ability? 2. Who needs training? 3. Are these employees ready for training?

Measuring results

Productivity-is an important measure of success because getting more done with a smaller amount of resources (money of people) increases the company's profits Management by objectives (MBO)-people at each level of the prganization set goals in a process that flows from top to bottom, so that all levels are contributing to the organizaiton's overall goals These goals become the standards for evaluating each employee's performance

Development for careers

Protean career-a career that frequently changes based on changes in the person's interests, abilities, and values and in the work environment -to remain marketable, employees must continually develop new skills

Types of rating error continued

Rater bias: raters often let their opinion of one quality color their opinion of others (halo bias-when bias in a favorable direction. horn error: when bias involves negative rating)

Summary Plan Description

Report that describes a pension plan's funding, eligibility requirements, risks, and other details. • Employers also provide an individual benefit statement which describes employee's vested and unvested benefits.

Team awards

Similar to group bonuses, but more likely to use a broad range of performance measures -cost savings -successful completion of a project -meeting deadlines

Modular

The company assembles product parts, components, or modules provided by external contractors

Legal Requirement for Performance Management

Uniform Guidelines on Employee Selection Procedures-require that organizations avoid using criteria such as race and age as a basis for employment decisions Unjust dismissal- the usual claim is that the person was dismissed for reasons besides the one that the employer states, performance management systems provide evidence to support an organizaiton's employment decisions Electronic monitoring and employee privacy-records of employees' performance rating, disciplinary actions, and work-rule violations are often stored in electronic databases, electronic monitoring can improve productivity it also generates privacy concerns

Data gathering : Self assessment

Use of info by employees to determine career interests, values, aptitudes, behavior tendencies, and development needs "MBTI, Strong Campbell Interest Inventory, Self-Directed Search"

Piecework rate

a wage based on the amount an employees produces

Behavior modeling

an effective way to teach interpersonal skills, role playing with feedback

Training

an organization's planned efforts to help employees acquire job-related knowledge, skills, abilites, and behaviors, with the goal of applying these on the job -training can benefit the org when it is linked to org needs and motivates employees

Job performance measure, actual or "true" job performance

contamination, validity, deficiency

Team training

coordinates the performance of individuals who work together to achieve a common goal -cross training -coordination training -team leader training

Rating behaviors

critical-incident method-specific examples of employees acting in ways that are either effective or ineffective, employees receive feedback about what they do well and what they do poorly and how they are helping the org achieve its goals Behaviorally anchored rating scale (BARS)-scale showing specific statements of behavior that describe different levels of performance Behavior observation scale (BOS)-a variation of a BARS which uses all behaviors necessary for effective performance to rate performance at a task. A BOS also asks the manager to rate frequency with which the employee has exhibited the behavior during rating period Organizational behavior modification-a plan for managing behavior of employees through a formal system of feedback and reinforcement

Span of control

describes the number of people reporting directly to a given manager. Large companies, narrow span. Small companies, wide span

Unity of command

each employee should only report to one manager

expatriate

employee who is sent to live abroad for a defined time period

Pension Benefit Guarantee Corporation (PBGC)

federal agency that insures retirement benefits and guarantees retirees a basic benefit if employer experiences financial difficulties.

Perforance management is critical

for executing a talent management system and involves one-on-one contact with managers to ensure that proper training and development are taking place

Four generic approaches to assessing an organization's effectiveness are

goal accomplishment, internal processes, strategic constituencies satisfaction, and resource acquisition

Organizational chart

graphic rep of formal authority and division of labor relationships

Group bonuses

group members that meet a sales goal or a product development team that meets a deadline or successfully launches a product may be rewarded with a bonus for group performance