human capital test 2

job embeddedness

-accumulated, non affective, and relatively stable forces that keep employees from leaving their jobs -links, fit, sacrifice

winning talent war

-acheiving competitive advantage depends on work force -shed low performing employees and retain stars

benefits strategy

-achieve organization goals, objectives, budget -balance expectations of current and new employees -employees expect to receive legally required and widely available benefits -cafeteria style caters to individual needs -must communicate benefits

psychological withdrawal

-actions provide mental escape from work environment -daydream, look busy, socialize, cyberloaf, moonlight -decrease in job involvement and organizational commitment, intent to quit

job search

-actions to generate potential job opportunities in other organizations -prediction of turnover

optional benefits

-added to attract and retain skilled employees -often extended to dependents -paid leave, medical insurance, retirement

pay differentials

-adjusted pay rate reflects differences in work conditions/labor markets -many times based on working locations with higher living costs

avoid involuntary turnover

-alternative dispute resolution -employmee assistance program -outplacement counseling

pay level

-amount organization pay for particular job (wage, salary, bonus) -HR wants to make pay level fair and motivating for employees

performance management components

-aspect of performance relevant to organization -measure/evaluate performance -provide performance feedback

withdrawal

-behaviors which employees avoid work situation physically or psychologically -due to job dissatisfaction

labor market data

-benchmarking: compare own practices to successful competitors -pay surveys, trade and professional groups, burea of labor stats and other government bodies

worker's compensation

-benefits to workers who suffer work related injuries or illnesses -employee at no fault and does not have to prove the employer was negligent -employer protected from lawsuit

behavioral withdrawal

-change conditions that create dissatisfaction -use internal complaint systems to prevent whistleblowers and lawsuits

is all feedback good?

-1/3 feedback has negative effect

comparative approach

-compare one individuals performance with others -simple ranking: rank group members from highest to lowest -forced distribution: assigns % of employees to each category in a set of categories -paired comparison: uses chart to compare employees to eachother and assign point to higher performer

medical insurance cont.

-consolidated omnibus budget reconciliation: employers must extend coverage up to 3 years after layoff, reduced hours, or employee death

retirement

-contributory: funded by employer and employee -noncontributory: funded by employer -defined benefits: pension plan guarantees specified level of retirement income, employer sets up account for each employee and specifies the size of investment into the account -defined: money purchase, profit sharing, stock ownership, 401k -cash balance plan: retirement account for each employee, employer contributions % of salary, interest and rate, can roll over to an ira

coworkers and satisfaction

-coworkers can influence opinions and attitudes -more satisfaction with a congenial social environment (behavioral assistance)

behavioral approach cont.

-critical incident method: specific instances of behavior documented, employees receive feedback -behaviorally anchored rating scale: builds on critical incidents, behaviors rated on scale -behavioral observation scale: scale includes all critical behaviors, rates frequency of employee behavior -organizational behavior modification: feedback and reinforcement to encourage positive behaviors

employee engagement

-degree employees are fully involved in work and committed to job and company -engaged employees provide competitive advantages

other pay systems

-delayer: reduce levels in pay structure, broad band, more emphasis on experience not promotions -skill based: set to skills and knowledge, good for tech changing

deciding what to pay

-depends on competitive environment -market rate vs paying above for top talent -pay policies encourage desired behaviors

distributional errors in rating

-distributional: rater uses one part of rating scale -leniency: reviewer rates everyone near top -strictness: rater uses lower rankings -central tendency: uses middle of scale

performance management ethical issues

-employee monitoring raises privacy concerns -employees find it demoralizing, degrading, and stressful

make incentives work

-employee participation -communicate a fair pay plan and create understanding, important to communicate changes

equity theory

-employees care about pay relative to what others make, based on perceptions -inequity: change inputs or outcomes, distort perceptions of self or others, choose different referent, leave -over and under reward inequity -companies should be transparent about pay policies with employees

behavioral approach

-employees receive feedback about what they do well/poorly and how they help organization achieve goals -identified in job analysis, define behaviors associated with job success

equal employment opportunity

-employers must not base differences in pay on a protected status -any pay difference must be business related

patient protection and affordable care act

-employers not required by law to provide heath care, but those who don't must pay a penalty -those who don't provide affordable coverage has to pay penalties -depends on # full time employees

incentives

-energize, direct, control employee behavior -compared with other employees -selected based on cost, performance, fit

reduce rater errors

-familiarize scales -rater error training -frame of reference training -accuracy training

prevailing wage

-federal contractors pay employees rates equal to wages in the area -davis bacon act: construction contractors receiving 2,000+ -walsh healy act: government contracts receiving 10,000+

effective performance management criteria

-fit with strategy: strategic congruence (promote performance congruent with org needs), define and emphasize those behaviors -reliable and valid: inter-rater (consistency among different measures), test-retest (consistency over time), it measures what it's intended to -acceptable: users feel it is useful (fair, timely, non-burdensome) -specific feedback: specifically tell expectations and how employees can meet them

group incentives

-gainsharing: measures increase in productivity and distributes part of gain back to employees, encourages employees to improve performance -effective gainsharing: management commitment, commitment to improvement, cooperation and info sharing, employee security, goal setting, groupwork valued, fair -group bonus: smaller work groups, physical output goals met -team awards: cost saving, project completion by deadline

feedback suggestions

-give feedback everyday -have employee rate performance before session -encourage participation -praise good performance -focus on problem solving not punishment -focus on behavior and results not the person -set goals and follow up

legal influences compensation

-government regulations affect eeo, minimum wage, overtime pay, federal contractor wages -fair labor standards act: minimum wage, overtime pay, child labor -lilly ledbetter fair pay act 2009: decisions about pay should apply with laws

race differences

-hispanic/latino races paid less -92% white fortune 500 ceo's

organization incentives

-hope employees will focus on what is best for organization -potential issue: less accountability, motivation, control -profit sharing: payments % of organization profit, not part of base salary -stock ownership: rights to buy shares of stock at specified price -stock ownership plan: trust fund of stocks, can sell stocks when they leave

types of pay

-hourly wage: per hour worked -piecework rate: per unit produced -salary: per week/month/year worked

group reward issues

-hurdle too high or low -rewards must be desired -employee doesn't understand organization objectives -social loafing

feedback

-important so individuals know what they do well and what to improve

political errors in rating

-intentional errors from individuals distorting evaluation for personal goals -raters are accountable to employee being rated -incompatible goal of ratings -appraisal linked with rewards -historic distortions or errors

job structure

-internal structure showing relative contributions of various jobs -job evaluation: internal measure worth of organization's jobs based on compensable factors (experience, education, complexity, conditions, responsibility) -ends with "points" per job

tasks and roles and satisfaction

-job satisfaction tied to tasks and role (job characteristics model) -role ambiguity: uncertainty of expectations -role conflict: incompatible demands -role overload: too many expectations

pay decisions

-job structure: pay for different jobs -pay level: pay for the same job -pay structure: pay policy results

why use health programs?

-less sick days -less stress -increased concentration

other insurance

-life -long term care -short term disability -long term disability

performance and turnover

-low performers are likely to leave

minimum wage

-lowest amount employers can pay under federal/state law -pay per hour -established by fair labor standards act -raising minimum wage reduces low wage worker wellbeing -federal 7.25, md 11.75, tip 3.63

medical insurance

-managed care: insurer plays a role in the decisions -health maintenance organizations (HMO): requires patients to receive medical care from the HMO's heath care professionals -preferred provider organizations (PPO): contracts with health care professionals to provide services at a reduced fee; most widely used health care plan; preestablished prices for procedures -flexible spending accounts: employee portion of pretax earnings set aside to pay for certain eligble expenses -high deductible health plan: insurance with high deductible and savings account with a limit that employee contributes to -accountable care organizations: provider network that practices value based care, agree to payment based on results -employee wellness programs: communications, activities, and facilities designed to reduce health risks

performance management

-managers ensure employees' activities and outputs contribute to organization goals

results approach

-measure objective measurable results of job -management by objectives: people at each organization level set goals that contribute to organizational goals

unemployment insurance

-minimize unemployment hardship, provide payments, helps find jobs, gives employers incentives -most funding comes from taxes on employers -organizations who fire more pay more in unemployment -to receive, employees must: demonstrate they were employed, be available to work, actively seek work, were not discharged for cause/quit voluntarily

benefits

-non wage/salary goods and services -part of total compensation -benefits packages are complex -attract, retain, motivate employees, have to expect benefits to help maintain financial security -subject to government regulation, some required by law

how to measure performance

-objective data: quantifiable results of work -personnel data -judgemental/subjective measures: asking people about others performance

social security

-old age, survivors, disability, health insurance -hospital and medical a part of medicare -depend on age and earning history -shared by employers and employees through payroll tax

retention

-organization's ability to keep employees from voluntarily leaving

economic influences on pay

-organizations compete to obtain human resources -competition establishes minimum pay to hire employees -influenced by cost of living -competing to serve same customers -must keep costs low enough to sell products profitably

family and medical leave act

-organizations with 50+ employees provide up to 12 weeks of unpaid leave and provide the same job when they return -childbirth, adoption, ill family member, employee's illness, active duty -comply with pregnancy discrimination act

problem with results approach

-output hard to measure for most jobs -focus on results does not show how to improve -leads ro perverse incentives (quantity over quality)

paid leave

-pay employees for time not worked -vacation, holiday, sick leave -other situations like jury duty -optional leave for voting -unpaid leave should be available -paid time off bank

pay and satisfaction

-pay fairness highly correlated with satisfaction -it is never enough, experienced wellbeing rises with income levels

compensation

-pay impacts attitudes and attraction to the company -can align with interests and goals -sign of status and success

attribution approach

-performance is relative to uniform set of standards -measures desired characteristics/traits -applied to variety of jobs but rarely linked to organization strategy -graphic rating scale: lists traits and provide numeric rating scale for each trait, subjective -mixed standard scale: uses several statements to describe each trait and see how employee compares to statements

effective incentive pay plan

-performance linked to company goals -employees believe they can meet standards -employees given resources to meet goals -employees value rewards -employees believe its fair -consider employees may ignore goals not rewarded

360-degree feedback

-performance measurement combines information from employee's managers, peers, subordinates, self, customers

physical withdrawal

-physical escape, short or long term -tardiness, missing meetings, quitting, long breaks, absenteeism

individual incentives

-piecework: pays for amount workers produce -standard hours: pays extra for work done in less than standard time, speed -merit: pay increase based on performance scale -performance bonus: re-earned, linked to objective performance measures -comission: % of sales, revenue, profitability, sometimes added to base salary

job satisfaction implications

-positive effect on organizational commitment, job performance, customer satisfaction and loyalty, ocb, life satisfaction

job satisfaction

-positive feeling from perception that one's job fulfills important job values -score, weighted sum, comparing what should be to what is now -attitudes have behvior implications

social exchange theory

-positive organization actions directed to employees create high quality exchange relationships where employees can reciprocate -the more useful the benefit, the more supportive the organization -ocb, extra role performance

cognitive errors in rating

-primacy effects: remember first things on a list -recency effects: remember last things on a list -contrast effects: notice differences across candidates -similarity-attraction: people see those similar to themselves as better -halo/horns: rater's opinion of one quality colors the others

reduce system errors

-rate more frequently -focus on behaviors in job analysis -use more than one item to measure behavior -use more raters in different positions

compa ratio

-ratio of average pay to midpoint of pay range -if 1, average equals midpoint -if 1<, average more than midpoint -if <1, average less than midpoint

overtime

-required any time a worker works above 40 hours -1.5 time -exempt employees (executives, admin,outside sales), depends on responsibilities and salary above 455 weekly -nonexempt covered for overtime

monitoring satisfaction

-retention is better when employers are aware of satisfaction levels -surveys -hire predisposed satisfaction, design complex meaningful jobs and establish clear roles, reinforce shared values and provide social and goal setting support, set satisfactory pay levels and communicate pay structure

performance management legal issues

-scrutinized in discrimination cases, need legally defensible system -based on valid job analyses -based on behaviors not traits -use multiple raters -provide feedback and training

pay ranges

-set of rates defined by minimum, maximum, midpoint -widest in high level jobs -overlap allows more flexibility in transferring employees, less overlap means promotions are important

pay grades

-sets of jobs having similar worth or content -may not match market rate -not all jobs in each grade will have same number of job evaluation points

unfolding model

-shock to system (event) -decision path (interpret and respond) -image (perception) -script (pre-existing plan)

executive incentives

-short term: bonuses based on roi, profits, or other goals -long term: stocks, stock purchase plans -issues: may be tempted to lie about stock performance for more pay, insider trading, balance scorecard will reduce temptation or reduce ceo pay during bad performance

manager role in feedback

-should be prepared for each formal feedback session -create right context for discussion -open dialogue meeting -focus on task not person -want to help employee improve

non financial incentives

-social recognition -performance feedback

required benefits by law

-social security -unemployment insurance -worker's compensation insurance -family and medical leave -health care

purposes of performance management

-strategic: help organization acheive business objectives -administrative: organization uses system to provide day to day decisions (salary, benefits, etc) -developmental: developing employee knowledge and skills

retention strategies

-supportive advisor -good culture and culture fit -ensure satisfaction and job embeddedness

types of behavior/performance

-task performance: behaviors contribute to production -citizenship (ocb): behaviors contribute to social/psychological environment -counterproductive (cwb): behaviors actively damage organization

feedback approaches

-tell and sell: tell and justify ratings -tell and listen: tell and let employees explain view -problem solving: work together to solve performance problems

performance

-total expected value to organization of behavior that individual carries out over period of time -behaviors under control of employees that contribute to organization outcomes

voluntary turnover

-turnover initiated by employees -organization prefers to keep them -employee retires or finds new opportunities -costs: recruit and train new hires, loss of productivity and talent, reduced satisfaction, disruption of team flow

involuntary turnover

-turnover initiated by employer -employees prefer to stay -job termination -costs include lost productivity, lawsuits, decreased morale, violence/theft, negative pr, recruiting and training new employees

child labor

-under 14 cannot be employeed -14/15 outside school hours, nonhazardous jobs, limited time periods -16/17 nonhazardous jobs

ideal raters

-understand job requirements -have the opportunity to see the employee doing the job -see employee in variety of situations -no influence when observing -can distinguish between maximal and typical performance levels

education differences

-unemployment increases as highest level of education decreases

progressive discipline

-unofficial spoken warning, official written warning, second written warning and threat of temp suspension, temp suspension and written notice of last chance, termination -must be standardized and systematic, allow for intervention -keep thorough record -not solely up to supervisor -based on law and justice

affective events theory

-withdrawal -non job related factors -highly visible alternatives (could be withdrawal from job market) -impulsive behavior to quit or stay

gender differences

-women make 83% of a man's salary, increasing -women ceo's increasing -pay gap across all sectors -disparities in access to workplace authority, hiring, and promotion

job satisfaction factors

-work, pay, promotion, supervisor, coworkers

involuntary turnover legal implications

-wrongful discharge -discrimination