HR test 3

benchmark jobs

: Stable task and stable job specifications

defined contribution plan

A _____ _____ allows contributions by the employee. It sets up an individual account for each employee and specifies the size of the investment into that account, rather than the amount to be paid out upon retirement. The amount the retiree receives will depend on the account's performance.

Employee Stock-Ownership Plans

A program that enables employees to become partial owners of a company. Goal is to increase employee involvement in decision making, and hopefully build business. These companies often show employment growth, faster wage growth, and higher average wages, and have less frequent layoffs. Established for many reasons including tax-favored, borrowing inexpensive money, fulfill philosophical belief, as an employee benefit. best in companies where the company makes a relatively large annual contribution to the plan, management is committed to employee ownership and is willing to share power and decision making authority with employees, and there are extensive company communications about the ESOP, current performance, and future plans

Equity theory

A theory of motivation that focuses on people's perceptions of the fairness of their work outcomes relative to their work inputs.

defined benefit plan

A____ _____ guarantees a specified level of retirement income. Usually the amount of this defined benefit is calculated for each employee based on the employee's years of service, age, and earnings level (for example, the average of the employee's five highest-earnings years). Years of service is used as retention tool. Must meet ERISA requirements regarding: 1. Vesting 2. Portability 3. Funding- if underfunded, PBGC steps in

Health Insurance

COBRA and HIPAA

total rewards

Effective _____ ____ systems provide 1. A sufficient level of rewards to fulfill basic needs, 2. Equity with the external labor market, 3. Equity within the organization, and 4. Treatment of each member of the organization in terms of is or her needs (Pay systems are meant to Attract, Retain and Motivate)

Health Care Trends

Electronic medical records With aging workforce, companies looking to gov't to fund healthcare of retirees Consumer-driven health care Employee Wellness Programs

no

Employers have __ obligation to offer retirement plans beyond the protection of Social Security, but most offer some form of pension or retirement savings plan

ERISA

Employment Retirement Income Security Act that regulates the operation of a pension plan in private industries. It was enacted to protect the interests of participants and the beneficiaries by requiring the disclosure to them of financial and other information concerning the plan.

common

Graphic Rating scales are the most ____ method of appraising performance

close

How to ____ gap: Lessen compensation gap by forming closer link between company performance and CEO compensation, instituting profit sharing, gain sharing or other programs, Rethink prerequisites, Make sure the boards pay consultants don't work for management, Institute open door policy, Survey employee attitudes, and explain things

ensure

How to ____ pay is in line with the pay structure: a. To develop a pay system a company must 1. Update job descriptions, 2. A job evaluation method, 3. Pay surveys, and 4. A pay structure b. Job descriptions serve as key tools in designing pay systems in 2 ways 1. Identifying important characteristics of each job so that the relative worth of jobs can be determined, and 2. We can then identify, define, and weigh compensable factors c. Job evaluation methods are used to provide a work-related and business-related logic to support decisions about pay. Rank jobs in terms of worth d. Issues to think of before using job eval: Does management perceive meaningful differences among jobs? Is it possible to identify meaningful criteria for distinguishing among jobs? Will job evaluation result in meaningful distinctons in the eyes of employees? Are jobs stable and remain that way? Is job evaluation consistent with goals? e. Point factor method is to assign points to each level of a compensable factor and sum them.

Acceptability

It is more effective when senior managers feel they own the performance management test, and take it on as their own. Evidence indicates that when this happens there is an increase motivation to improve performance, more favorable reactions to the process, and increased trust for top management

FLSA

Minimum wage, child labor and overtime

Equal pay act

No gender bias in pay

basis

Researchers have proposed the ____ for determining equitable pay 1. Employees perceive a fair return for what they contribute, 2. Employees determine their equitable return based on the comparison to their peers' input and outcomes, and 3. Employees who perceive themselves to be in an inequitable situation will seek to reduce inequity

Graphic rating scales

Scales can differ in three ways 1. The degree t which meaning of response categories is defined 2. Degree to which individual who is interpreting the ratings can tell clearly what response was intended and 3. The degree to which the performance dimensions are defined for the rater. Benefits: Less time consuming to develop and administer, allow results to be expressed in quantitative terms, consider more than one performance dimension, and facilitate comparisons, and proven reliable and valid, and more acceptable to raters

counteract

TO ________ biases use frame of reference trainins, which provides trainees with a theory of performance that allows them to understand the various performance dimensions, how to match the performance dimensions to rate behaviors, how to judge effectiveness of various rate behavior and how to integrate judgements into overall rating.

valuable

Tactics employees rate as most ____: i. Confirming benefits selections-written confirmation of the benefits selections they made during open enrollment ii. Tying life events to benefits iii. A choice of communication channels

Forced Distribution

This works like the carlson curve, and makes innovation difficult as it raises competitiveness. also called stack ranking. Challenges: may not reflect reality, can foster resentment, seen as less fair Advantages: eliminates clustering, useful when a large number must be rated and there is more than 1 raterd.

Performance encouragement

To do this do these 1. Provide a sufficient number of rewards that employees really value 2. In a timely fashion 3. In a fair manner. When considering rewards begin by asking people what's most important to them, and tailor rewards towards that.

good

To provide ____ performance management managers must 1. Define performance 2. Facilitate performance 3. Encourage performance by providing timely feedback about performance, while constantly focusing everyone's attention on the ultimate objective. It is difficult to have ____ performance management, because it demands daily not annual attention

Pay Ranges

Wage and salary surveys/market research + job evaluation = are a range of permissible pay for a job or grade of jobs with a minimum, a midpoint and a maximum.

control

Ways for companies to ____ the high costs of health care: a. Band together with other companies to form a purchasing coalition to negotiate better rates with insurers b. Deal with hospitals and insurers as with any other suppliers: inform insures about low cost providers online and reward them to going to lower cost medical specialists c. Encourage use of generic drugs d. Audit the eligibility of dependents under company health plans e. Use a managed care approach: manage care relies on using a gatekeeper system of cost controls. A gatekeeper is a primary care physician who monitors the medical history and care of each employee and family. The doctor orders testing, makes refferals to specialists, and recommends hospitalization, surgery, or outpatient care. May take a variety of forms HMOS, PPO's, etc. f. Adopt a consumer driven health plan: involves a high-deductible insurance plan combined with a health-care spending account from which reimbursed health care costs are paid. A type is HAS (these allow qualified workers to put aside a limited amount of pretax dollars every year. Contributions and account earnings must be used to pay for qualified health care costs)

required

Workers comp, social security, and unemployment insurance are all _____

Life insurance

Yearly renewable term insurance Flexible-benefits (can add)

employee benefits

____ ____That Drive Engagement: 1.Job Satisfaction 2.Autonomy 3.Meaningful Work 4.Flexible Schedules and Work Arrangements 5.Growth Opportunities 6. Relationships 7. Adequate Resources 8. Quality of Leadership 9. Work environment

Benefits

____ fall into 3 categories 1. Security and health, 2. Payments for time not worked, and 3. Employee services.

Assessment

_____ should occur regularly to create focus on the efforts of the team, and to show employees what is expected of them.

Performance management

a compass that indicates a persons actual direction as well as a persons desired direction. In this situation the job of the manager is to help focus attention and effort on the desired location. Typically managers will equate it with performance appraisal. _____ _____ requires willingness and a commitment to focus on improving performance at the level of the individual or team every day.

Defining performance

a manager who does this ensures that individual employees or teams know what is expected of them, and that they stay focused on effective performance. Managers do this with goals, measurement, and assessment

Total rewards

a system of rewards that goes beyond compensation and benefits and includes anything and everything the employee values and the employer is willing and able to offer employees.

Pension Benefit Gauranty Corporation

acts as an insurance company, collecting annual premiums from companies with defined-benefit plans that spell out specific payments upon retirement

Income Maintenance Laws

are there to provide employees and their families with income security in case of death, disability, unemployment, or retirement. these include SSA, FUTA, Workers Compensation, and ERISA

Critical Incidents

brief anecdotal reports by supervisors of things employees do. Focus on behaviors; Benefits: force attention on the ways in which situations determine job behavior, on doing the job successfully that may be unique to a person, can provide basis for training, work well for appraisal interviews Challenges: can be burdensome for supervisors to fill out, and do not permit comparisons.

Equity

can be assessed on 3 levels: 1. Internal equity (are pay rates fair in terms of the worth of individual jobs to an organization, 2. External Equity (Are the wages paid by an organization fair in terms of competitive market rates outside the organization?), and 3. Individual equity (Is each individuals pay fair relative to that of other individuals doing the same or similar jobs?)

abandoning

case for ______ performance reviews all together? a. Associated with lower effectiveness of performance management systems, compel managers to penalize a good but not great employee who is on an all star team, and vice versa, frustrating and time consuming for managers to trade team members, fuzzy qualitative ranking criteria

Performance facilitation

deals with eliminating roadblocks, provide adequate resources, pay careful attention to selecting employees. i. Obstacles: outdated equipment, delay in supplies, inefficient design of workspaces, and ineffective work methods. Managers need to ask employee input to discover these

Unemployment Insurance

eligibility requirements include 1. Be able and available to work and be actively seeking work 2. Not have refused suitable employment, 3. Not be employed because of a labor dispute, 4. Not have a job voluntarily, 5. Not have been terminated for gross misconduct, and 6. Have been employed previously in a covered industry or occupation, earning a designated minimum amount for a minimum amount of time. It is a financial partnership between federal and state governments. It is intended to accumulate and hold significant funds during good economic times, pay out benefits during bad ones, and stimulate stagnant economies.

Consolidated Omnibus Budget Reconciliation Act

even after leaving job medical coverage is still available at group rate for as long as 18 months, and in case of worker death family has this right for 3 years

Non-financial rewards

everything in a work environment that enhances a workers sense of self respect and esteem by others (work environments that are physically, socially, and mentally healthy; opportunities for training and personal development; effective supervisions, and recognition) and a positive employer brand.

benefits

four broad objectives in communicating _____: To make employees aware of them. This can be done by reminding them of their coverages periodically and of how to apply for benefits when needed. To help employees understand the benefits information they receive in order to take full advantage of the plans. To make employees confident that they can trust the information they receive. To show employees how their benefits will meet their needs and help them reach their personal goals. After all, it's their "hidden paycheck."

Doctrine of constructive receipt

holds that an individual must pay taxes on benefits that have monetary value when the individual receives them, and the anti discrimination rule, which states that employees can obtain tax advantages only for those benefits that do not discriminate in favor of highly-compensated employees

increase

how can companies ____ the value of benefits to employees a. These four approaches are typically used. 1. Annual cost of benefits for all employees (valuable for developing budgets and for describing total cost of benefits program, 2. Cost per employee per year (the total annual cost of each benefits program divided by the number of employees participating), 3. Percentage of Payroll (the total annual cost divided by total annual payroll), and 4. Cents per hour (total annual cost of benefits divided by the total number of hours worked by all employees during the year)

promote

how to _____ wage equality: Increased transparency Job descriptions Undervalued work= use job evaluation to establish equal pay for comparable work Pay policies Auditing Training for managers Benchmarking against the market

effectively

how to give performance feedback _____. a. Communicate frequently: coaching should be day-to-day b. Get training in performance feedback and appraisal interviewing c. Encourage Subordinates to prepare: spend time prior to performance-feedback interviews analyzing their job responsibilities and duties , problems encountered, and quality of performance will more likely be satisfied with process d. Encourage participation: subordinates feeling that his or her ideas matter highly correlated to satisfaction of appraisal interview e. Judge Performance, Not Personality: focus on problem solving and job related focus f. Be Specific and an active listener g. Avoid Destructive Criticism h. Set Mutually Agreeable Goals: set specific challing goals, because this clarifies for the subordinate precisely what is expected and leads to high levels of performance. i. Continue to communicate, and Assess progress toward Goals regularly: 3 advantages 1. Keep behavior on target 2. Better understanding of reasoning 3. Enhances commitment to perform effectively j. Make organizational rewards contingent on performance

effective

how to make manager feedback more _____: Specific feedback Focus on goals and objectives, focus on the future not the past (because managers should be giving feedback all year long) Do it in private Is it better to start with something positive? Praise/criticism ratio of 3:1 Do you need to witness it yourself?

Cost Containment

in this area Wages and benefits are expensive

pay for performance

in this area it is mainly Less fixed wage, more incentives (variable/flexible pay systems, such as profit sharing

contributory insurance plans

in this type of insurance plan employees share in cost of premiums

noncontributory insurance plans

in this type of insurance plan employer pays the full cost of the premiums

Narrative essay

in this valuation method a rater describes an employees strengths, weaknesses, and potential together with suggestion for improvement. This assumes that a candid statement from a rater who is knowledgeable about an employee's performance is just as valid. Benefits: if done well provide detailed feedback. Challenges: Comparisons are near impossible across individuals, Difficult to use for employment decisions

Social Security

income-maintenance program. System must be adjusted soon to account for longer life span by raising revenues, and adjusting benefits for high versus low earners

Health Insurance Portability and Accountability Act

ind. Or group health plan may not disclose medical information without consent

common

merit pay is the most _____ incentive program

Appraising Performance

methods of ____ ____ includes Objective Measures: Production Measures, Sales, Be careful of opportunity bias, Performance Tests, Business Unit Performance Measures and Subjective Measures: Narrative essay, Ranking, Paired comparison, Forced Distribution, Graphic, Rating Scales (Likert Scales), Critical incidents

Pay compression

occurs when the difference in pay between newly hired or less qualified employees and more experienced ones is small. 3 forms include: 1. Hourly pay increases for unionized employees that exceed those of salaried and nonunion,2. Recruitment of new college graduates for management or professional jobs at salaries above those of current jobholders, 3. Excessive overtime payments to employees

trust gap

occurs when the executives make much more than the average workers= and that leads to a lack of trust of senior management's intentions, competence, and starts to resent their self-congratulatory pay. Most of the ____ ____ can be traced back to the differences in what managers say and do, other causes include: lack of penalties to executives who caused global financial crisis and the meltdown in financial services, together with pay systems that rewarded financial engineering and greed rather than prudent risk management and value creation.

MBO

process of managing that relies on goal setting to establish objectives for the organization as a whole, for each department, for each manager within each department, and for each employee. Measure of each employee's contribution to success. To establish objectives must 1. Agree on major objectives 2. Develop plans, and 3. Agree on the measurement tools. Progress reviews are held until end of objectives, and at end meet to reevaluate. Advantages: Challenges: not a measure of employee behavior

Pension

promise by an employer to pay workers who are eligible a set amount of money after they retire. Money set aside for this has become the nations largest source of capital.

Goal setting

proven track record of success. Improves performance by directing attention to the specific performance in question; they mobilize efforts to accomplish higher levels of performance and they foster persistence for higher levels of performance. i. Challenges: Experts suggest setting no more than 4 goals, some jobs are too fluid and unpredictable, individual objectives do not work well when the work is team based, Goals must be measurable

Disability insurance

provides a supplemental one time payment for accidental death, a range of benefits when employee becomes disabled. Includes Long term disability plans (into effect 6+weeks)and short term disability plans. Typically only cover portion of salary

Workers' Compensation

provides payments to workers who are injured on the job or who contract a work-related illness. Payments cover lost wages, medical treatment/rehab, and retraining to perform different type of work.

Halo error

raters assign their ratings on the basis of global impressions. Often due to situational factors, or interaction of a rater and situation.

Contrast Error

results when a rater assigns his or her ratings on the basis of the employees most recent performance.

Sick-Leave

short term insurance to workers against loss of wages due to short term illness. Often add to labor costs because of abuse from employees. Include paid time-off plans, which Rate as most effective of all absence control programs

job satisfaction

the Top five drivers of overall ____ _____ are benefits+direct compensation, job security, opportunities to use skills, and relationship with supervisor

Traditional Performance Management Cycle

the is Based on strategic planning, define company performance objectives, next Clear EE goals tied to company strategy (MBO), then Ongoing, timely feedback, provide training as necessary, and then provide formal quarterly reviews

360 degree feedback

the use of managers, subordinates, peers and customers' input to provide a perspective on performance from all angles. Advantages: ratings comparableDisadvantages: perspectives often don't agree closely, conflicting feedback can make feedback less useful and problematic, biases of raters

BARS

these are Behaviorally-Anchored Rating Scale Designed to assess behaviors Job is separated into dimensions Desirable and under dimensions (anchors) Time consuming (Distinct jobs need distinct ratings) Spells out behaviors in more depth than GRS Benefits: define dimensions to be rated in behavioral terms, and use critical incidents to describe various levels of performance, provide a common frame of reference for raters, communicates to employees kind of behavior that is good, etc Challenges: require considerable effort to develop, little evidence to support superiority of BARS to other rating systems.

Problems

these are ____ with manager feedback: Surprises Focus on the past Feedback too late Multiple purposes (pay) Done in public Disagreement and defensiveness

Financial rewards

these are direct payments plus indirect payments in the form of employee benefits

Team Incentives

these are most appropriate when jobs are highly interrelated; Advantages: 1. They make it possible to reqard workers who provide essential services to line workers, yet who are paid only their regular base pay. 2. They encourage cooperation among teams. Disadvantages: Competition between teams, Inability of workers to see their individual contributions to the output of the team, and Top performers grow disenchanted by having to carry freeloaders

Uses

these are the --- of performance management: Employment decisions (pay, promotions, discipline, terminations) + legal justification Feedback, behavior modification or praise Objectives for training programs Diagnosis of organizational problems Criteria in test validation (predictive, concurrent) Evaluation of HR programs

avoid

these are ways to ____ legal difficulties in the review process: a. Conduct a job analysis to determine the characteristics necessary for successful job performance b. Incorporate these characteristics into a rating instrument. Courts routinely accept less sophisticated approaches c. Provide written instructions and train supervisors to use the rating instrument properly. Uniform application is important d. Establish a system to detect potentially discriminatory effects or abuses of the appraisal process e. Include formal appeal mechanisms, coupled with higher-level review of appraisals f. Document the appraisals and the reason for any termination decisions. This enhances credibility in court g. Provide some form of performance counseling or corrective guidance to assist poor performers h. Firms should keep track of applicant group: those who are eligible and interested

Defined contribution plan

these fix a rate for employer contributions to the fund. Future benefits depen on how fast the fund grows. These favor older, long-service workers. In this plan a company will never owe more than what was contributed. Type of pension plan

Employee incentive programs

these must be Specific, Simple, Attainable, Measurable

b. Profit sharing

these plans pay out if a firm meets its profitability target. Can be deferred (ie retirement fund) or paid in cash. Used in order to provide group incentive for increased productivity, provide retirement income for employees, to institute a flexible reward structure that reflects a companys actual economic position, to enhance employees' security and identification with the company, to attract and retain workers, and to educate individuals about the factors that underlie business success and the capitalistic system. Disadvantages: employees don't feel that their jobs have a direct impact on profits not a clear causal relationship between profit sharing and productivity

Strategic Compensation systems

these systems must 1. Understand clearly what types of behavior it wants the compensation system to reinforce, and 2. Recognize that compensation systems are integral components of planning and control, and 3. View the firms performance as the ultimate criterion of the success of strategic pay decisions and operational compensation programs.

Appraisal Systems

these work to 1. Improve employees work performance by helping them realize and use their potential in carrying out their firms' mission 2. To provide information to employees and managers for use in making work-related decisions. Legally and scientifically (allows us to assume judgment is valid) the key requirements for performance appraisal are relevance, sensitivity and reliability, and in the context of ongoing operations the key requirements are acceptability and practicality

Simple Ranking

this Ranks employees from strongest to weakest, and is Impractical for large groups

legislation

this can affect wages by: can create minimum wage, allow collective bargaining (unionized must compete with non unionized for services and loyalties of workers. Affects level of wages and behavior of workers in labor markets; used to negotiate procedures for administering pay, procedures for resolving grievances, and methods used to determine relative worth of job)

Sensitivity

this implies that a performance-appraisal system is capable of distinguishing effective from ineffective performers

Practicality

this implies that appraisal instruments are easy for managers and employees to understand and use.

Relevance

this implies there are links between the performance standards for a job and organizational objectives and between the critical job elements identified and the dimension to be rated. Key question is What really makes the difference between success and failure on a particular job, and according to whom

Reliability

this is Consistency of judgment. To provide reliable data each rater must have an adequate opportunity to observe what the employee has done and the conditions under which he or she has done it.

Gain sharing

this is a results based program that generally links pay to performance at the facility level. It focuses on achieving savings in areas over which employees fo have control, for example reduced scrap or lower labor or utility costs. Comprises three elements: philosophy of cooperation, involvement system, and a financial bonus. generally does not work well in piecework operations, returns dwindle with increasing plan size, firms uncomfortable with bringing unions into business planning, and some managers my feel that they are giving up their prerogative

Performance appraisal

this is an administrative exercise managers typically do once a year to identify and discuss job relevant strengths and weaknesses of individuals or work teams. This process often does not work effectively because Managers do not have the courage to give constructive feedback. It is a necessary part of performance management.

Fairness

this is enhanced by 1. Voice- collect employee input through surveys or interviews, 2. Consistency- ensure that all employees are treated consistently when seeking input and communicating about the process for administering rewards, 3. Relevance: include rewards people care about, 4. Communication- explain the rules and logic of rewards process

Defined benefit plans

this is when an employer promises to pay a retiree a stated pension, often expressed as a percentage of preretirement pay. Type of pension plan

Improved Performance Management Cycle

this process starts with the company creating a goal, and then creating SMART goals, and providing training and feedback, then they meet with employees formally to determine goal progress, and finally they feed this information back into strategic planning

Results-Based Appraisals

this type of appraisal focuses on what employee accomplishes: hired ten people in three months with satisfactory performance ratings, sold 20 new products

Behavior-Based Appraisals

this type of appraisal focuses on: Gets the job done, comes to work on time, technically astute Often comparing people to one another or to a standard Trait focused; work ethic, attitude, initiative

Incentive pay

this type of pay only leads to higher performance for simple, narrow tasks, because it makes the person focus. When the person is narrowing their mind and focusing in that way they are not thinking of the possible creative solutions. There have been many studies to prove that ____ ____ does not increase performance for creative tasks (Candle experiment), and companies continue to use it for all problems and levels

Pay Openness

this type of pay system philosophies disadvantages include forcing managers to defend pay decisions, cost of a mistaken pay decision escalates because all the systems inconsistencies and weaknesses become visible, and might induce some managers to reduce differences

Market-based pay system

this uses a direct market-pricing approach for all of a firms jobs. Feasible if all jobs are benchmark jobs,and a direct match can be found in the market.

define

to ----- performance we must include: Goals: Direct attention to specific performance, -Mobilize higher performance, and Is there a gap -between actual performance and desired performance? Measures: SMART goals- they must be measurable by time, quantity, etc. Assessments: Regular feedback

strategic goals

to ensure the design of benefits meets the company's ____ ___? i. Are the type and level of our benefits coverage consistent with our long term strategic business plan? ii. Given the characteristics of our workforce are we meeting the needs of our employees iii. What legal requirements must we satisfy in the benefits we offer? iv. Are our benefits competitive in cost, structure, and value to our employees and their dependents? v. Is our benefit package consistent with the key objectives of our total compensation strategy, namely, adequacy, equity, cost control, and balance? vi. One issue that can affects this is the organizations stage of development, the projected rate of employment growth or downsizing, geographic redeployment, acquisition, and expected changes in profitability. Each of these suggest a change in the optimum mix of benefits in order to be most consistent with an organization's business plans. vii. Younger employees=more concerned with direct pay than good pension plan viii. Unionized= prefer uniform benefits package ix. Single parents, older workers, and disabilies= flexible work schedules

Group Life Insurance

typically yearly renewable term insurance. Often 1-2x employees current salary

Affordable Care Act

under this law Employers not required to carry insurance, but will receive a penalty if they don't Citizens must have insurance or will have tax Employer Penalties : penalties for non-compliance: Not offering coverage (employers with 50+ employees), unaffordable coverage(when employer opts out of coverage), No penalty for waiting periods, Automatic Enrollment Procedures, Restrictions on Cafeteria plans, Incentives for Wellness(law provides grants), Tax on High value plans, Required W-2 Reporting, Long term care enrollment procedures, and breaks for nursing mothers Health care exchanges Mandated benefits Coverage until 26 No preexisting conditions No lifetime limits

Vested

when receipt of pension benefits does not depend on future service

Subordinates

when this person evaluates performance Advantages: higher quality when used to develop superiors performance Disadvantages: managers overall rating can be distorted by an extremely divergent opinion

Peers

when this person evaluates performance Advantages: in some jobs superior may observe performance rarely, different perspective. Challenges: Friendship biases, and context effects, Feedback can hurt more from peers. You scratch my back, I'll scratch yours. Evaluators aren't always nice or positive. People can see their role as a feedback provider as an opportunity to criticize others' behavior on the job. May not trust feedback.

Customers

when this person evaluates performance advantages: unique perspective Disadvantages: may not align directly with company's objectives.

Supervisor

when this person evaluates performance the Advantages are most familiar with the individuals performance, has the best opportunity to observe job performance, best to relate performance to organizations goals, and distinguish among various dimensions of performance. Also more highly-related to performance than any other source

self appraisal

when this person evaluates performance when combined with goal setting this can improve the rates motivation and reduces her or his defensiveness during the appraisal interview. Disadvantages: tend to be more lenient, less variable, more biased and to show less agreement with the judgment of others. More appropriate for counseling and self-development than for employment decisions.

inflate

why supervisors _____ ratings: Avoid confrontation. Little to no raises? Give employee most money possible. Feel sorry for someone. To reward an employee who has shown improvement, even if it is still low. Don't want to make it a part of the permanent record. Don't want others to know what's going on within department. Get someone promoted out of department.

deflate

why supervisors _____ ratings: Shock an employee back into better performance. To build documentation to fire someone. To send a message to an employee that he or she should quit. To teach a lesson to an employee whom you don't like or are annoyed with.

Competency based pay system

workers are paid on the basis of their skills or on their depth of knowledge. Viewed by companies as a war to develop critical behaviors and abilities employees need for success.